2022 Semiannual Report
Stock Code: 688007 Stock Short Name: Appotronics
Appotronics Corporation Limited
2022 Semiannual Report
August 2022
本报告为深圳光峰科技股份有限公司自愿披露的《2022 年半年度报告（英文
版）》，对本报告的中英文版本理解上发生歧义时，以中文版本为准。
This is the 2022 Semiannual Report (English Version) that is voluntarily disclosed by
Appotronics Corporation Limited, and in case of any conflict between the Chinese version and the
English version, the Chinese version will control.
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2022 Semiannual Report
Important Note
I. The Board of Directors, the Board of Supervisors, directors, supervisors and senior officers of
the Company hereby warrant that the information contained in this Annual Report is true,
accurate and complete and this Annual Report is free from any misrepresentation, misleading
statement or material omission, and agree to assume joint and several liability for this Annual
Report.
II. Alert of significant risks
The Company has described in detail the risks that may exist in the production and operation of
the Company in this Report. Refer to “Section III Discussion and Analysis of the Management - Risk
factors” for the relevant risks. We draw the attention of investors to such risks in making investments.
III. All directors of the Company attended the meeting of the Board of Directors.
IV. This Semiannual Report has not been audited.
V. LI Yi, Person in charge of the Company, WANG Yingxia, Chief Accountant and Person in
Charge of the Accounting Body (Accounting Officer) hereby represent that the financial
statements contained in the 2022 Semiannual Report are true, accurate and complete.
VI. Profit distribution proposal or proposal for capitalization of capital reserve approved by the
Board of Directors during the reporting period
None
VII. Is there any material event concerning any special arrangement of corporate governance?
□ Applicable √ N/A
VIII. Risk statement regarding forward-looking statements
√ Applicable□ N/A
The forward-looking statements contained herein regarding the future plans, development
strategies or other matters of the Company do not constitute any substantive covenant made by the
Company to the investors. Investors and relevant personnel should sufficiently know about the risks
in this aspect, and understand the differences among plans, predictions, and promises. The investors
should be aware of the risk of investment.
IX. Is there any non-operating occupation of funds by the controlling shareholder or its affiliates?
No
X. Is there any external guarantee provided in contravention of the stipulated decision-making
procedure?
No
XI. Are the majority of the directors unable to guarantee the truthfulness, accuracy and
completeness of the Semiannual Report disclosed by the Company?
No
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XII. Other information
□ Applicable √ N/A
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2022 Semiannual Report
Table of Contents
Section I ................................................................................................................ Definitions
................................................................................................................................................5
Section II ......................................................... Company Profile and Financial Highlights
................................................................................................................................................6
Section III ..................................................... Discussion and Analysis of the Management
..............................................................................................................................................10
Section IV......................................................................................... Corporate Governance
..............................................................................................................................................29
Section V ............................................................. Environment and Social Responsibilities
..............................................................................................................................................33
Section VI ................................................................................................Significant Matters
..............................................................................................................................................35
Section VII ................................................................ Changes in Shares and Shareholders
..............................................................................................................................................65
Section VIII.................................................................................................Preferred Shares
..............................................................................................................................................70
Section IX...................................................................................................................... Bonds
..............................................................................................................................................71
Section X .....................................................................................................Financial Report
..............................................................................................................................................72
Financial Statements with seals and signatures of the Person in charge of the
List of Documents Company, Chief Accountant and Person in charge of the Accounting Body
Available for (Accounting Officer)
Inspection
All original documents and announcements of the Company publicly disclosed
during the reporting period
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Section I Definitions
For purpose of this report, unless the context otherwise requires, the following terms shall have the
meanings indicated below:
Terms
Company or Appotronics means Appotronics Corporation Limited
Appotronics Ltd. means Appotronics Corporation Ltd., the former name of the Company
CINEAPPO means CINEAPPO Laser Cinema Technology (Beijing) Co., Ltd.
Formovie means Formovie (Chongqing) Innovation Technology Co., Ltd.
Appotronics HK means Appotronics Hong Kong Limited
Appotronics Daye means Shenzhen Appotronics Daye Investment Limited Partnership (LP)
Appotronics Deye means Shenzhen Appotronics Deye Consulting Partnership (LP)
Shenzhen Appotronics Hongye Investment Limited Partnership
Appotronics Hongye means
(LP)
Blackpine means Blackpine Investment Corp. Ltd.
Jinleijing means Shenzhen Jinleijing Investment Limited Partnership (LP)
Appotronics Chengye means Shenzhen Appotronics Chengye Consulting Partnership (LP)
XGIMI means Chengdu XGIMI Technology Co., Ltd.
Anker means Anker Innovations Technology Co., Ltd.
VAVA means Shenzhen VAVA Innovation Technology Co., Ltd.
Dangbei means Hangzhou Dangbei Network Technology Co., Ltd.
Midea Group means Midea Group Co., Ltd.
Delta Electronics or Delta Electronics, Inc.
means
Delta
CINIONIC means Cinionic Limited (previously known as Barco Cineappo Limited)
WeCast means WeCast Technology Corp.
GDC BVI means GDC Technology Limited (British Virgin Islands)
GDC Cayman means GDC Technology Limited (Cayman Islands)
DCI means Digital Cinema Initiatives of the United States
DLP means Digital Light Processing
PCT means Patent Cooperation Treaty
AR means Augmented Reality
GMV means Gross Merchandise Volume
IDC means International Data Corporation
ODM means Original Design Manufacturer
AVC means All VIEW CLOUD
B&W means Bowers & Wilkins, a top audio brand in the UK
WXGA means Wide Extended Graphics Array
WUXGA means Widescreen Ultra eXtended Graphics Array
OTA means Over-the-Air Technology
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Section II Company Profile and Financial Highlights
I. Company profile
Chinese name 深圳光峰科技股份有限公司
Short name in Chinese 光峰科技
English name Appotronics Corporation Limited
Short name in English Appotronics
Legal representative LI Yi
20-22/F, Hi-tech Zone Union Tower, No. 63 Xuefu Road, Yuehai
Registered address
Street, Nanshan District, Shenzhen
1. October 24, 2006, Room 10, 14/F, Fangda Building, Keji South
12th Road, South Area, High-tech Industrial Zone, Nanshan District,
Shenzhen
2. September 6, 2007, Room 03, 17/F, Overseas Chinese High-tech
Venture Building, South Area, High-tech Industrial Zone, Nanshan
District, Shenzhen
3. June 7, 2011, Area A, 1/F, Building 13, Xili Wenguang Industrial
Historical changes of the
Zone, Nanshan District, Shenzhen
Company’s registered address
4. October 24, 2012, 401 Shenzhen IC Design and Application
Industrial Park, South to Chaguang Road, Xili Township, Nanshan
District, Shenzhen
5. December 14, 2017, 21-22/F, Hi-tech Zone Union Tower, No. 63
Xuefu Road, Yuehai Street, Nanshan District, Shenzhen
6. August 1, 2018, 20-22/F, Hi-tech Zone Union Tower, No. 63 Xuefu
Road, Yuehai Street, Nanshan District, Shenzhen
20-22/F, Hi-tech Zone Union Tower, No. 63 Xuefu Road, Yuehai
Office address
Street, Nanshan District, Shenzhen
Postal code of office address 518052
Website http://www.appotronics.com
Email ir@appotronics.cn
The Company disclosed the Announcement on Completion of
Reference to changes during the Changes in Industrial and Commercial Registration Particulars on
reporting period Legal Representative (No.: 2022-007) at the website of the Shanghai
Stock Exchange (www.sse.com.cn) on February 24, 2022.
II. Contact person and contact information
Board Secretary (Domestic representative for information
disclosure)
Name CHEN Yasha
20-22/F, Hi-tech Zone Union Tower, No. 63 Xuefu Road, Yuehai
Address
Street, Nanshan District, Shenzhen
Telephone 0755-32950536
Facsimile 0755-86186299
Email ir@appotronics.cn
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III. Description of changes to the media for information disclosure and place for keeping the
semiannual reports
China Securities Journal (https://www.cs.com.cn)
Designated newspaper for Shanghai Securities News (https://www.cnstock.com)
information disclosure Securities Times (http://www.stcn.com)
Securities Daily (http://www.zqrb.cn)
Websites for publishing the
Shanghai Stock Exchange website (http://www.sse.com.cn)
semiannual reports
Place for keeping the semiannual
Office of the Board of Directors
reports
Reference to changes during the
N/A
reporting period
IV. Stock and depository receipts of the Company
(I) Stock of the Company
√ Applicable□ N/A
Stock of the Company
Former stock
Stock Class Stock exchange and board Stock short name Stock code
short name
Shanghai Stock Exchange,
A-shares Appotronics 688007 N/A
STAR Market
(II) Depository receipts of the Company
□ Applicable √ N/A
V. Other related information
□ Applicable√ N/A
VI. Main accounting data and financial indicators of the Company
(I) Main accounting data
Unit: Yuan Currency: RMB
During the
Change over the prior
Main accounting data reporting period Prior period
period (%)
(Jan. - Jun.)
Operating income 1,269,322,202.11 1,104,689,243.59 14.90
Net profit attributable to
shareholders of the listed 45,966,481.10 151,413,920.79 -69.64
company
Net profit attributable to
shareholders of the listed
22,005,386.92 66,961,936.08 -67.14
company after deduction of non-
recurring profit or loss
Net cash flow from operating
-78,553,359.67 170,659,313.90 -146.03
activities
Changes at the end of
At the end of the At the end of the reporting period
reporting period the prior year from the end of the
prior year (%)
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2022 Semiannual Report
Net assets attributable to
shareholders of the listed 2,482,478,931.50 2,438,064,581.44 1.82
company
Total assets 4,124,469,910.64 4,097,230,955.90 0.66
(II) Financial highlights
During the
reporting Prior Change over the prior
Financial highlights
period period period (%)
(Jan. - Jun.)
Basic earnings per share (RMB/share) 0.10 0.33 -69.70
Diluted earnings per share (RMB/share) 0.10 0.33 -69.70
Basic earnings per share after deduction of
0.05 0.15 -66.67
non-recurring profit or loss (RMB/share)
Weighted average return on net assets (%) 1.86 6.89 -5.03 percentage points
Weighted average return on net assets after
0.89 3.05 -2.16 percentage points
deduction of non-recurring profit or loss (%)
Proportion of R&D investments to operating
9.06 8.61 +0.45 percentage points
income (%)
Explanation about the main accounting data and financial highlights
√ Applicable□ N/A
1. During the reporting period, the operating income increased by 14.90% on a year-on-year basis,
primarily due to the growth of revenue from core devices, To C and large venue businesses.
2. During the reporting period, the net profit attributable to shareholders of the listed company, the
net profit attributable to shareholders of the listed company after deduction of non-recurring profit or loss,
the basic earnings per share, diluted earnings per share, and basic earnings per share after deduction of
non-recurring profit or loss decreased over the same period of the previous year, primarily due to the
following:
(1) the decrease in the revenue from the cinema projection service business with high gross margin
as a result of the repeated outbreak of the COVID-19 epidemic, which resulted in a sharp decline in profit;
(2) the increase in the expense ratio for the current period, which was mainly caused by a proportional
rise in the Company’s marketing promotion expenses, R&D investments and share-based payments.
During the reporting period, the Company’s selling expenses increased by RMB 30.6162 million,
increased by 34.14% on a year-on-year basis, mainly due to increasing the market investment expenses of
RMB 20.9852 million to implement the Company’s policy of active market competition, increasing
investment for the consumer market, and building own brands of the Company. The R&D expenses
increased by RMB 19.8313 million, increased by 20.85% on a year-on-year basis, mainly due to the
Company’s continuous investments in R&D. With respect to the administrative expenses, the share-based
payments for the current period amounted to RMB 44.3015 million, increased by 98.55% on a year-on-
year basis.
(3) Non-recurring profit or loss for the first half of 2022 decreased sharply compared with the same
period of the previous year, mainly due to a year-on-year decrease by RMB 55.7814 million in the
government grants recognized in profit or loss for the current period, among which, RMB 50 million as a
government grant was paid to the subsidiary Formovie for settlement in Chongqing. In addition, RMB
38.1759 million as the performance compensation to GDC Cayman had been recognized in the non-
recurring profit or loss for the first half of 2021.
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3. The net cash flows from operating activities decreased by 146.03% on a year-on-year basis,
primarily due to the year-on-year decrease in the revenue from the cinema projection service and the
government grants received and the increase in the human resources expenditures and marketing and
promotion expenses.
VII. Differences in accounting data under Chinese accounting standards and overseas accounting
standards
□ Applicable √ N/A
VIII. Items and amounts of non-recurring profit or loss
√ Applicable □ N/A
Unit: Yuan Currency: RMB
Item of non-recurring profit or loss Amount Note (if
applicable)
Gain or loss on disposal of non-current assets -4,939,437.34
Government grants recognized in profit or loss for the current
period (excluding government grants that are closely related to the
VII. 84 of
business of the Company and are provided in fixed amount or 16,026,819.55
Section X
quantity continuously according to the applicable polices and
standards of the country)
VII. 68 of
Profit or loss on entrusted investments or assets management 5,795,366.82
Section X
Net profit or loss of subsidiaries from the beginning of the period
up to the business combination date recognized as a result of
13,594,336.06
business combination of enterprises involving enterprises under
common control
Profit or loss on changes in the fair value of held-for-trading
financial assets, derivative financial assets, held-for-trading
financial liabilities and derivative financial liabilities and
investment income on disposal of held-for-trading financial assets,
-1,434,000.00
derivative financial assets, held-for-trading financial liabilities,
derivative financial liabilities and other debt investments, other
than those used in the effective hedging activities relating to normal
operating business
Other non-operating income and expenses -1,047,993.35
Other gains or losses meeting the definition of non-recurring profit
364,144.36
or loss
Less: Effect of income taxes 2,770,765.40
Effects attributable to minority interests (net of tax) 1,627,376.52
Total 23,961,094.18
Description of defining non-recurring profit or loss items illustrated in Information Disclosure and
Presentation Rules for Companies Making Public Offering of Securities No. 1--Non-recurring Profit or
Loss as recurring profit or loss items
□ Applicable √ N/A
IX. Explanation about performance indicators not under the Accounting Standards for Business
Enterprises
□ Applicable √ N/A
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Section III Discussion and Analysis of the Management
I. Industry and main business during the reporting period
1. Main business
As a globally leading technology enterprise for laser display, the Company mainly engages in the
research and development, production and sales of laser display core devices and complete equipment,
and application of laser display technology to different scenarios based on proprietary laser display
technology and architecture. By now, our businesses have been implemented in the household display,
cinema projection, business education, large venue, and other application scenarios, and are expanding to
the vehicle-mounted display, aviation display, AR, and other new fields.
2. Main products and services
Our products may be mainly classified into core laser display devices and complete laser display
equipment. Wherein the core devices can be further classified into laser light source (cinema light source
and large venue light source), laser smart mini projection light generator, vehicle-mounted laser display
devices and systems, and laser TV light generators; and complete laser display equipment can be classified
into laser smart mini projector, laser TV, laser cinema projector, large venue laser projector, laser
education projector and others. The services the Company performs include laser cinema projection
services, smart large-screen ecology system Feng OS and corresponding system solutions.
3. Industry in which the Company operates
3.1 Development stage, basic characteristics and main technical barriers of the industry
As an emerging industry, laser display is at the stage of rapid development. The growth drivers mainly
come from internal and external factors: As for the internal factor, laser is the brightest and purest artificial
light source in the world, naturally suitable for display, and is thus regarded as a new generation of display
technology due to its high brightness, wide color gamut, eye protection and environmental protection and
energy conservation.
With respect to the external factor, manufacturers in the industry have constantly upgraded their
technologies and products to drive the innovation at the supply end and to accelerate the penetration of
laser display products. Further, the progress in technologies generates new large-scale application
scenarios such as vehicle-mounted display and aviation display, with huge potential for market explosion.
In 2021, being listed in priorities for the 14th Five-Year Plan, such as the “New Display and Strategic
Electronic Materials” of the Ministry of Science and Technology, laser display has received policy support
from the state.
In terms of technologies, the laser display technology researched and developed by Appotronics is
compatible with various chip and technology routes, and is suitable for the DLP, LCOS, and LCD
technologies, making a breakthrough in the core devices and imaging solutions of laser display in the
display field, hence becoming the mainstream technical route for the current international laser projector
industry and widely used in household, cinema, large venue, commercial sector, and education fields.
Regarding core technologies, laser display products involve several fields, including optics,
electronics, materials, physics, mechanical designing, precision manufacturing. The improvement in
product performance relies on core devices (light source and light generator), while the research and
development and iteration of core devices have the characteristics of high technical barriers and strong
patent barriers.
3.2 Analysis of the position of the Company in the industry and changes therein
As a new-general display technology, thanks to the advantages of high brightness, small size, long
service life, wide color gamut, energy conservation and environmental protection, the laser display
technology has a broad space for market application. Besides the conventional display field, it can be
expanded to the vehicle-mounted display, aviation display, AR, and other fields. The laser display
technology is becoming more and more important in the display field.
As a leading company in the laser display industry, Appotronics has created a strong patent moat
around the underlying technical architecture of original laser phosphor display technologies, which is hard
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to be bypassed by companies in the industry entering the route of laser phosphor technologies. In addition,
since its establishment, the Company spared no effort in R&D investment, which lead to a strong
technology barrier. We have been committed in the breakthroughs, innovations, expansion of application
scenarios, and industrialization promotion of laser display technology, and thus created technology
reserves and patent portfolios covering the whole technology chain of laser display from key system
architecture, core devices to key algorithm. Relying on the core competitive advantages consisting of
“patent moat + technical barriers”, the Company has its voice at the upstream core device stage in the laser
display industry, and has become the first choice for many customers.
As for the household market, according to a report from IDC, Formovie ranked the third in the
shipments of China’s customer projector market (i.e., household projector market) in the first half of 2022,
with shipments of Formovie’s owned brands (excluding ODM) increasing by 289% year-on-year and
occupying 7% of market shares.
Regarding professional display, according to the Market Survey Report on the Laser Project Market
of Chinese Mainland in 2022H1 of AVC Revo, Appotronics ranked the first in terms of both sales volume
share (i.e., 17.9%) and sales value share (i.e., 16.6%) on the large venue projector market in the first half
of 2022, while the Company ranked the first in the education market, with its sales volume representing
26.2%.
With respect to the innovative business, the Company has fully exercised the advantages of its
technologies and products and taken the advantageous position in the vehicle-mounted and other
innovative display applications. During the reporting period, the Company acquired the certificate for
IATF 16949:2016 Quality Management System, the admission certificate for entering the domestic and
overseas vehicle supply chain. On this basis, the Company will keep exploring the pre-shipment market
and post-shipment market for its vehicle-mounted display, and strengthen the multi-level and all-round
cooperation with vehicle manufacturers and tier-1 suppliers.
II. Core technologies and progress in R&D of technologies
1. Core technologies and their advancement, and changes during the reporting period
We have been committed in the breakthroughs, innovations, expansion of application scenarios, and
industrialization promotion of laser display technology, and thus created technology reserves and patent
portfolios covering the whole technology chain of proprietary laser display from key system architecture,
core devices to key algorithm.
The Company has devoted many R&D resources in the preparation and processing for the
miniaturization of laser display systems, light source architecture, complete equipment structure, machine
perception, and thin film material. The big data, algorithm and design solutions accumulated by us over
the years will enable us to rapidly develop products and solutions meeting the requirements of different
application scenarios, such as cinema projection, home entertainment, outdoor exhibition, ultra large-sized
display, and immersive display. We have achieved breakthrough in, and started the marketing of, ultra-
small portable laser light generators, vehicle-specification laser light generators, and light generators of
wide color gamut and high dynamic range.
National scientific and technology awards
□ Applicable √ N/A
Qualification of national “little giant” enterprises in specialized, refine, differential, and innovative
aspects, and “leading enterprise” in the manufacturing industry
□ Applicable √ N/A
2. R&D achievements during the reporting period
During the reporting period, the Company made the following achievements in technology and
product innovation:
1. Core devices
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During the reporting period, the Company has constantly developed its proprietary laser display
technology and applied it in the series of laser cinema light sources and laser TV light generators, and kept
reducing costs on the basis of maintaining performance. Meanwhile, we focused on the racetrack of laser
mini projectors to improve brightness, color and other performances, and maintained our leading
advantages in terms of brightness. During the reporting period, the Company provided Dangbei, Anker
and other customers with laser mini projector light generators, laser TV light generators and other core
devices.
In the field of innovative smart vehicle-mounted applications, the Company completed the
assessment of the prototype in multiple application scenarios in a vehicle, started the R&D efforts for mass
production of vehicle-specification projection light generator module, and achieved IATF 16949
certification during the reporting period. At the same time, the Company made use of leading technology
advantages in optical films to form a good combination with vehicle-mounted display.
In the field of innovative AR applications, the Company displayed R&D results related to high-
definition, high-transmittance, miniaturized and multi-application AR modules externally, and shared
them with both the academia and the industry at the 2022 International Conference on Display Technology
(ICDT 2022). The Company will continue to promote the commercialization of AR modules and plans to
demonstrate related R&D results stage by stage.
In terms of other innovative applications, the Company entered into the strategic cooperation with
Midea Group, and on this basis, will provide laser projection core devices for the first generation of
household service robot, so as to realize mobile projection. This indicates the organic combination of laser
display and AIOT.
2. Complete equipment
In the household field, in May 2022, Formovie officially released a new flagship product, namely
V10 4K ultra-high-definition project with the following features: over 2,500 lumens of brightness, taking
the lead in the same level; 3,840*2,160 resolutions, 8.3 million pixels, and enhanced AI picture quality,
showing an ultra-high-definition vision; the first 2.1-channel speaker design in the industry, improving
subwoofer effects and achieving stereo sound effects; wood grain mixing with Kender, being free of cold
feeling generated by technology, facilitating integration into home environment; automatic correction,
sensorless focusing, intelligent screen obstacle avoidance, and automatic curtain alignment, etc., making
it more convenient for users to use. During the reporting period, Formovie launched Formovie Theater, a
full-color laser TV product with 4K resolution and BT.2020 color gamut abroad. It is also the first laser
TV configured with Android TV 11.0 and Google farfield voice. The sound quality of this product was
developed and commissioned by us and a well-known brand B&W, taking the lead in the industry in terms
of synchronous sound and picture.
In the commercial field, the Company newly developed the white series of wireless and portable
projection laser projectors for commercial use with a slim body and a light weight, which can produce
3,600 lumens of brightness, WXGA and WUXGA resolution and meet many commercial meetings and
other application scenarios.
During the reporting period, as the first Chinese enterprise independently researching and developing
3DLP high-lumen large venue projectors, the Company launched the new G series of high-brightness large
venue projectors adopting a high-efficiency liquid cooling system and 3DLP imaging technology to
achieve 25,000 lumens of high brightness. This series effectively supplements the brightness and price
ranges for the previous T series of high-brightness large venue projectors, realizing broader applications
of high-brightness large venue projectors.
3. Algorithm
During the reporting period, the Company kept iterating the omnidirectional correction function of
projectors based on the structured light technology and ToF sensors, which has been successfully used in
terminal products. The omnidirectional correction function based on the structured light technology can
help optimize the correction accuracy of projectors, and enlarge the the maximum supportable angle of
projection display, improving more design freedom and offering important support for subsequent new
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functions and new applications. Capitalizing on this function, the projectors of the Company can realize
the real-time automatic correction to further improve user experience.
4. Smart large-screen ecology system Feng OS
In the first half of 2022, Feng OS system completed a total of five iterations and realized the
application self-upgrade, not only greatly reducing users’ OTA costs but also fully upgrading voice
assistance and supporting voice-triggered projection as an exclusive function. During the reporting period,
the Feng OS system took the lead in releasing the function of screen matching for taking pictures by a
mobile phone, so that keystone correction may be performed by the camera in the mobile phone instead
of human eyes, hence providing more intelligent and more convenient functions for uses. The Feng OS
system adds customized recommendation algorithms to more pages, making it easier for users to discover
their personalized preferences faster and more accurately and improving the overall payment rate by 20%.
List of intellectual property rights acquired during the reporting period
Increase Total
Applications (pcs) Granted (pcs) Applications (pcs) Granted (pcs)
Patent for
128 88 1,541 906
invention
Patent for utility
77 84 629 519
model
Patent for design 23 16 206 181
Software copyright 3 5 116 116
Others 110 99 1,107 923
Total 341 292 3,599 2,645
Note: 1. The “others” showed in the above table refers to the Company’s trademarks; 2. during the
reporting period, the Company filed a total of 142 valid PCT international patent applications.
3. R&D investments
Unit: Yuan
Current period Previous Period Change (%)
R&D investments expensed 114,959,786.37 95,128,483.66 20.85
R&D investments capitalized 0.00 0.00 N/A
Total R&D investments 114,959,786.37 95,128,483.66 20.85
Proportion of R&D investments +0.45 percentage
9.06 8.61
to operating income (%) points
Proportion of R&D
0.00 0.00 N/A
investments capitalized (%)
Reasons for the material change in the total R&D investments compared with last year
□ Applicable √ N/A
Reasons for the great change in the proportion of R&D investments capitalized and explanation
about the rationality thereof
□ Applicable √ N/A
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4. R&D projects
√ Applicable□ N/A
Unit: RMB 0’000
Investment
Estimated Progress
in the Aggregate
S.N. Projects total or interim Goals Technological level Application scenario
current investment
investment results
period
This project will research the
industrialization of the
technology of RGB This project will
trichromatic laser with greatly promote the
Trichromatic This project has
phosphor to satisfy the industrial upgrading
Laser Display established a
market demands for RGB of trichromatic laser
Complete trichromatic laser
Mass trichromatic laser display, display technology,
1 Equipment 10,284.00 2,608.25 9,570.32 display complete
production build a mass production line and gain international
Production equipment
for trichromatic laser display competitive edge for
Demonstration production
complete equipment, acquire proprietary
Line demonstration line.
proprietary IP, and realize trichromatic laser
large-scale application of display technology.
trichromatic laser display
products.
The R&D, design and
production of vehicle-mounted
Intended for vehicle-
projection products will be
mounted, AR, AIoT
Innovative Laboratory customized for differentTake the lead in the
2 8,000.00 1,220.85 1,220.85 and other innovative
projection test models, AR optical modulesindustry.
projection display
will be researched and
application scenarios.
developed, and projection
solutions in the AIoT field will
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be provided upon the request of
vehicle manufacturers.
A new generation of
trichromatic laser light
source and light generator,
B&W customized audio,
Feng OS system, and high-
Mass Take the lead in the 4K household laser
3 Laser TV 7,420.00 1,620.21 7,067.45 gain screen will be adopted
production industry. TVs.
to achieve ultra-wide color
gamut and low blue light for
eye protection and greatly
improve the brightness and
ease of use.
This project will research and Take the lead in the
develop the low-cost and industry; the home Intended for the high-
Laser cinema Mass DCI-compliant laser cinema cinema projector and end household market
4 6,556.00 1,121.94 5,368.16
projector production projector meeting high-end LED cinema screen will and projection halls at
home use and DCI-compliant comply with DCI cinemas.
LED cinema screen. standards.
Take the lead in the
A new generation of light Intended for
industry; the cost
Core device generator technology will upgrading of light
effectiveness, color
light source be adopted to create a light source for small-sized
Mass gamut, light effect, and
5 and light 5,768.00 1,117.60 3,922.60 source light generator with cinema projector,
production other performance are
generator lower costs, higher color trichromatic laser TV,
greatly improved, to
project gamut, and higher energy laser mini projector
better satisfy the
efficiency ratio. and other fields.
demands of customers.
The smart mini projector
Smart mini Mass products with high Take the lead in the Intended for home
6 5,091.00 2,511.05 4,422.63
projector production performance and high cost industry. mini projector market.
effectiveness will be
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2022 Semiannual Report
researched and developed,
and different series of
products will be laid out to
make breakthroughs in
technology innovation and
quality upgrade and meet
different user needs.
Multiple laser large venue
Professional projectors with high
Intended for high-end
display brightness and smart
large venue projector,
products Mass business projectors with Take the lead in the
7 4,825.00 1,296.09 2,853.56 business education
(large venue + production cost effectiveness will be industry.
projector and other
business researched and developed
fields.
education) for meeting different user
needs.
Total / 47,944.00 11,495.98 34,425.57 / / / /
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2022 Semiannual Report
5. R&D staff
Unit: 0’000 Currency: RMB
Basic information
Current period Previous Period
Number of R&D staff (persons) 471 391
Proportion of R&D staff to total employees of the
30.45 30.52
Company (%)
Total compensation of R&D staff 7,641.61 6,049.49
Average compensation of R&D staff 16.22 15.47
Education
Academic background Number Percentage (%)
Master and above 124 26.33
Bachelor and below 347 73.67
Total 471 100.00
Age structure
Age Number Percentage (%)
Below 30 (exclusive) 165 35.03
30-40 (including 30, excluding 40) 218 46.29
40 and above 88 18.68
Total 471 100.00
Note: The average compensation of R&D staff shown in the table above was the average compensation
for 2022 and the first half of 2021, respectively.
6. Other description
□ Applicable √ N/A
III. Analysis of core competitiveness during the reporting period
(I) Analysis of core competitiveness
√ Applicable□ N/A
1. A patent moat around the underlying technical architecture
With the underlying technical architecture of proprietary laser display technology at the center, the
Company has built a united whole patent system, which is hard to be simulated by or to be directly
bypassed by the competitors entering the route of laser phosphor technologies. As of the first half of 2022,
Appotronics had a total of 2,518 patents filed and granted throughout the world, including 1,606 patents
granted, thus owning extremely obvious patent advantage. As the underlying key architecture technology,
the laser phosphor display technology invented by the Company has been cited more than 650 times by
industry giants such as Philips of the Netherlands, Osram of Germany, Epson of Japan, and NEC, etc.
2. Voice in the industry supported by core devices
Since its establishment, the Company spared no effort in R&D investment, which lead to a strong
technology barrier. We have been committed in the breakthroughs, innovations, expansion of application
scenarios, and industrialization of laser display technology, and created technology reserves and patent
portfolios covering the whole technology chain of laser display from key system architecture, core devices
to key algorithm. These efforts lead to the strong voice of the Company in the laser display industry,
making the Company the first choice for customers. Meanwhile, the stable base of major customers from
various industries also contribute to the continuously increasing market shares of Appotronics around the
world.
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2022 Semiannual Report
3. Forward-looking strategic layout and head start advantages
By virtue of our advantages in core devices, the Company made forward-looking arrangement for
new application scenarios, such as vehicle-mounted display, aviation display, AR, etc., to promote
innovative application of core devices in new and broad fields and tracks. Such forward-looking
arrangement leads to the head start advantages of the Company in the racetrack, hence injecting new power
for the medium- and long-term development of Appotronics and expanding more space for growth.
(II) Events occurred during the reporting period that have a material effect on the Company’s core
competitiveness, analysis of the effect and countermeasures
□ Applicable √ N/A
IV. Discussion and analysis of business situations
(I) Analysis of business operation during the reporting period
Amid domestic epidemic, shortage of industry supply chains and complicated and volatile macro
environment at home and abroad in the first half of 2022, the Company adhered to the strategic layout of
“core technologies + core devices + application scenarios”, comprehensively sought the growth in profits,
increased investments in the R&D, actively explored innovative applications and strengthened the
management of supply chains and inventories, with a view to ensuring the order of production and
operation for the Company. During the reporting period, the Company achieved the operating income of
RMB 1.2693222 billion, increasing by 14.90% on a year-on-year. We achieved outstanding results in three
big businesses such as core device, own-brand consumer product, large venue protection. Overall, market
shares of cinema projection service, large venue and education as the fundamental business of the
Company maintained the first place. Meanwhile, as the growth business of the Company, core devices and
owned-brand customer products repeatedly made breakthrough, with a strong development momentum.
Unit: 0’000 Currency: RMB
Main business by sector
Gross % Change % Change
Operating Operating % Change in gross
Sector margin in operating in operating
income costs margin
(%) income cost
-4.19 percentage
Laser display 126,932.22 88,456.06 30.31 14.90 22.24
points
Main business by product
Year-on- Year-on-
year year
Gross Year-on-year
Operating Operating increase or increase or
Product margin increase or decrease
income cost decrease of decrease of
(%) of gross margin (%)
operating operating
income (%) cost (%)
-0.43 percentage
1. Sales 113,156.62 81,850.58 27.67 24.12 24.87
points
(1) Light source and light -17.11 percentage
22,736.62 13,445.20 40.87 120.97 210.91
generator points
(2) Complete laser +0.01 percentage
79,768.57 59,761.32 25.08 4.90 4.89
projector points
-9.83 percentage
Laser cinema projector 2,358.15 1,405.43 40.40 -17.42 -1.12
points
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2022 Semiannual Report
Professional display
+3.61 percentage
projector (large venue and 17,763.33 9,867.05 44.45 -6.84 -12.52
points
business education)
+4.26 percentage
Laser TV 21,745.97 14,453.12 33.54 -16.56 -21.58
points
+2.31 percentage
Smart mini projector 37,901.11 34,035.72 10.20 35.09 31.69
points
+6.76 percentage
(3) Other products 10,651.43 8,644.06 18.85 120.35 103.41
points
2. Cinema projection -13.25 percentage
13,521.49 6,474.67 52.12 -27.17 0.70
service points
+0.20 percentage
3. Other business 254.11 130.82 48.52 -65.63 -65.76
points
-4.19 percentage
Total 126,932.22 88,456.06 30.31 14.90 22.24
points
1. Core device business
1.1 Business of household core devices
In the first half of 2022, the Company’s smart projectors maintained a rapid growth trend in China.
We took the opportunity on the rapid development of the smart mini projector market and intensified our
efforts to business portfolios of To C core devices.
The business of laser projection core devices achieved rapid expansion in the household field. The
Company supplied customized laser mini projectors, laser TV light generators, or other products to
Dangbei, Anker Innovations, VAVA, Xgimi, ViewSonic, Haier, and other manufacturers. In the first half
of 2022, we achieved the operating income of RMB 230 million from this business, basically being the
performance throughout 2021. Among them, the laser projectors X3 and X3 Pro released jointly by the
Company and Dangbei won warm response from consumers. At the same time, the Company kept
devoting more energy to exploring customers abroad, and enlarging the strategic cooperation size with old
customers, so as to gradually realize mass production of new products for new customers. The joining of
more and more partners in the laser projection ecology chain further proves the competitive advantages of
our core technologies.
1.2 Business of innovative core devices
1.2.1 Achieve IATF 16949 certification and take the advantageous position in the new vehicle-
mounted track
A trend for the future vehicle industry is the intelligentization of vehicles. The new requirements on
vehicle-mounted displays for intelligent cabins motivated innovative application of laser projection
display as vehicle-mounted displays, such as drive assistance, and human-machine interaction experience
and entertainment for passengers, including the vehicle roof screen, vehicle window transparent display,
large screen for entertainment, AR-HUD, smart surfaces, smart laser headlights, etc., which lead to a broad
market space for vehicle-mounted display.
During the reporting period, the Company acquired the certificate for IATF 16949:2016 Quality
Management System, the admission certificate for entering the domestic and overseas vehicle supply chain.
On this basis, the Company will keep exploring the pre-shipment market and post-shipment market
for its vehicle-mounted display, and strengthen the multi-level and all-round cooperation with vehicle
manufacturers and tier-1 suppliers.
1.2.2 Release the first optical module with PPI exceeding 10,000 developed by Appotronics
around the world, a significant breakthrough in AR technology field
The Company released the first optical module with PPI exceeding 10,000 developed by Appotronics
around the world in May 2022, indicating a significant breakthrough made by the Company in the R&D
of AR technology field. This mini AR optical module has become the world’s first commercialized AR
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2022 Semiannual Report
optical module with PPI exceeding 10,000 by achieving a breakthrough in underlying technical structure
and great progress in high pixel density.
1.2.3 Conclude a strategic cooperation with Midea Group, entering the home service robot
market
During the reporting period, capitalizing on the self-developed laser light generator with high
brightness, small size, outstanding heat dissipation and high energy efficiency, the Company established
a strategic cooperation with Midea Group, a domestic home appliance giant, in the field of home service
robot, under which Appotronics provided projection solutions for the first generation of home service
robot released by Midea Group. This cooperation expanded innovative application scenarios of the
Company’s core devices, and the Company has the capacity for laser implantation to enter the field of
mobile devices.
2. Non-core device business
2.1 Continue to make great efforts on the consumer market, achieving a new business
breakthrough
During the reporting period, the Company continued to make great efforts on the consumer market
and intensified the promotion of owned-brand consumer market. The subsidiary Formovie achieved the
growth of its own-brand business by 50% on a year-on-year basis, which accounted for 50% of the total
operating income of Formovie. Meanwhile, the gross margin from Formovie’s owned-brand business
increased by over 5% compared with the same period of the previous year, showing a great improvement.
In May 2022, Formovie officially released a new flagship product, namely V10 4K ultra-high-
definition projector, and during the 618 Shopping Festival, won the champion in the sales volume of this
new product. During the 618 Shopping Festival this year, Formovie achieved the gross merchandise value
(GMV) of over RMB 200 million throughout China as the champion for five consecutive years in both
the online sales value and the sales volume of laser TVs.
According to a report from IDC, Formovie ranked the third in the shipments of China’s customer
projector market (i.e., household projector market) in the first half of 2022, with shipments of Formovie’s
owned brands (excluding ODM) increasing by 289% on a year-on-year basis and occupying 7% of market
shares.
Figure 1: Formovie’s V10 4K ultra-high-definition projector
2.2 Improve the ability to innovation and differentiation for solutions, and rank the first in the
professional display business market share
During the reporting period, the Company’s professional display business suspended and was
cancelled and the whole market performance of large venue business and business education decreased
compared with the same period of the previous year due to the impact of domestic COVID-19. However,
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2022 Semiannual Report
the Company actively responded to this impact and further improved the product and channel layout to
maintain the leading market share.
Regarding large venue business, the Company launched the new G series of laser 3DLP high-
brightness large venue projectors for lighting engineering projects, night tours and major venue shows,
realizing broader applications of high-brightness large venue projectors.
In addition, the Company proactively explored new application scenarios and kept innovating
solutions. In the fields of lighting engineering projects and night tours, we focused on the sales of high-
end models, and comprehensively improved our brand influence by creating the cases with industry
influence such as the projection show in Chongqing Fuling Jinxiu Square and the Huiyi Cultural Tourism
Characteristic Town of Wunvzhou, Wuyuan, Jiangxi.
According to the Market Survey Report on the Laser Project Market of Chinese Mainland in 2022H1
of AVC Revo, Appotronics ranked the first in terms of both sales volume share (i.e., 17.9%) and sales
value share (i.e., 16.6%) on the large venue projector market in the first half of 2022, while the Company
ranked the first in the education market, with its sales volume representing 26.2%.
2.3 Actively respond to the impact of COVID-19, so that the cinema business is expected to
rebound rapidly
In the first half of 2022, amid the repeated outbreak of the epidemic, the cinema projection service
business of the Company may also be affected due to the closedown of some cinemas and postponed
showing of films. As the films will be played in the peak seasons such as summer vacation and National
Day holiday in the second half of year, along with the strong policy support from China Film
Administration, the Company’s cinemas business is expected to rebound rapidly.
During the reporting period, in order to continuously expand the market share of light sources, the
subsidiary CINEAPPO officially released ALPD Lite version of light sources for diverse and flexible
business demand of customers, thus reducing the overall investment pressure for customers, improving
the film projection quality and delivering superior viewing experience. As of the disclosure date of this
report, over 27,000 ALPD laser projectors of CINEAPPO were installed in China, offering services for
more than 6,000 cinemas. During the reporting period, the Company intensified efforts to promote the
application of laser light sources on the overseas market, and improved the influence of the brand abroad
including the U.S., Thailand, South Korea, Italy, Ireland and other countries and regions, with a rapid
growth in the overseas market demand.
What’s more, during the reporting period, CINEAPPO was named in the list of the second batch of
Beijing “little giant” enterprises in specialized, refine, differential, and innovative aspects in 2021.
(II) Analysis of factors affecting profits during the reporting period
During the reporting period, the Company’s selling expenses increased by RMB 30.6162 million,
increased by 34.14% on a year-on-year basis, mainly due to increasing the market investment expenses of
RMB 20.9852 million to implement the Company’s policy of active market competition, increasing the
investment for the consumer market and building own brands of the Company. With respect to the
administrative expenses, the Company successively launched restricted share incentive plan to motivate
core personnel playing a significant role in the new growth curve of the Company in the future, and the
share-based payments for the current period amounted to RMB 44.3015 million, increased by 98.55% on
a year-on-year basis.
Regarding non-recurring profit or loss, the government grants recognized by the Company in profit
or loss for the current period decreased by RMB 55.7814 million compared with the same period of the
previous year, and the performance compensation to GDC Cayman amounting to RMB 38.1759 million
was recognized in the non-recurring profit or loss for the first half of 2021. Non-recurring profit or loss
for the first half of 2022 declined sharply on a year-on-year basis.
As a result of the above, the Company experienced significant changes in the profits for the current
period compared with the same period of the last year. With the effects of share-based payment expenses
being eliminated, the net profits attributable to owners of the parent company were RMB 86.2056 million,
and the net profits attributable to owners of the parent company after deduction of non-recurring profit or
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2022 Semiannual Report
loss were RMB 62.2445 million.
To sum up, the first half of 2022 saw an uptick in the Company’s sales revenue because of advantages
of its core devices, resilience of business and stableness of fundamental business despite repeated impact
of the epidemic and other macro factors. Meanwhile, the Company actively made arrangement for
innovative application areas such as vehicle-mounted display, kept expanding application areas of core
devices and deeply explored potential growth points of its future profits. Overall, the Company maintained
its stable operating basis and enjoyed continuous favorable future growth although it bore the pressure of
strategic investment and temporary decline in profits.
Significant changes in the operations of the Company during the reporting period, and the events
that have or are expected to have a significant impact on the operations of the Company during the
reporting period
□ Applicable √ N/A
V. Risk factors
√ Applicable □ N/A
1. Risk of macro-environment
The prolonged COVID-19 epidemic, constant trade friction between China and the US, and
increasing geopolitical risks lead to variability, uncertainty, complexity, and vagueness for the world. The
accelerated restructuring of the global economic pattern will cause constant adjustment in the industrial
chain. Although China basically maintained the stable fundamental aspects of the macro economy, this
cannot eliminate the potential risks that may be caused by the uncertainties in the macro economy to the
development of the Company.
2. Risks of the COVID-19 epidemic
The repeated outbreak of the epidemic in China may cause planned product releases, customer visits,
on-site technology commissioning, etc. to be postponed or cancelled, delaying or preventing the Company
from participating in exhibitions as expected, and additional difficulties in order acquisition. With respect
to the supply chain, epidemic control measures lead to blocked logistics, increasing logistics costs,
prolonged period for purchase of raw materials, which intensified the difficulties in supply chain
management and smooth sales. The cinema projection service business of the Company may also be
affected due to the closedown of some cinemas and postponed showing of films. Epidemic prevention and
control, if no improvement is achieved, may result in uncertainties for the production and operation of the
Company.
3. Risk related to the supply of important raw materials
Under the impact of tension in the supply chain, there are risks that core suppliers cannot supply parts
promptly at the expected quality and quantity. This may slow down the growth of the Company’s To C
business, and postponed shipment of some core devices or complete equipment products may result in
risks of failing to achieve the expected growth rate in operating performance of the Company.
4. Financial risk
(1) Risk of impairment of accounts receivable
As of the end of the reporting period, the carrying amount of our accounts receivable was RMB
360.4607 million, accounting for 8.74% of our total assets. Our products are generally delivered after
receiving the payment therefor. We give certain credit period to some major customers. In case of any
material adverse change in the business condition of our customers, we may be unable to recover certain
accounts receivable, which may have an adverse effect on our operating performance in the future.
(2) Risk of impairment of inventories
As of the end of the reporting period, the carrying amount of our inventories was RMB 793.8370
million, accounting for 19.25% of our assets. Our inventories mainly comprise raw materials and goods
in stock. If any significant change in the competition pattern of the industry, material innovation in laser
display technology and products or the impact of COVID-19 results in a large quantity of unsalable
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2022 Semiannual Report
products, the recoverable amount of the inventories will be lower than their carrying amount. The
impairment of inventories will have a negative effect on our earnings.
(3) Risks of impairment of fixed assets
As of the end of the reporting period, the carrying amount of our fixed asset was RMB 454.0105
million, accounting for 11.01% of our assets. Our fixed assets mainly consist of production equipment and
cinema projector light sources for lease, where the cinema projector light sources account for 78.06%. If
the COVID-19 epidemic results in prolonged closedown of cinemas, the cinema projector light sources
may be idle, causing risks of impairment of fixed assets and adverse effects to the operation of the
Company.
(4) Risks related to government grants
During the reporting period, the Company received government grants in accordance with relevant
state policies, which are special funds or awards for R&D projects. The decrease in government grants to
be received by the Company in the future may result in adverse effects to the profitability and cash flow
of the Company.
5. Risks in the arbitration with relevant parties of the participating company GDC BVI
At present, the Company is in the process of arbitration and counter arbitration with relevant parties
of GDC concerning the rights and interests of the parties. Because GDC Cayman, GDC BVI, Mr. ZHANG
Wanneng and his management team violated the provisions of the Shareholders’ Agreement and
Settlement Agreement, including but not limited to the appointment of directors in violation of corporate
governance regulations, violation of protective provisions for the Company, and failing to purchase the
minimum quantity of C5 projectors and core device parts by the end of 2021. As a result, the cooperation
on the purchase business for cinema hardware products between the Company and GDC BVI is subject to
uncertainty. The the trial of this case has not been started, the impact of such case on the profit or loss of
the Company cannot be determined at present; the eventual actual impact depends on the award of the
arbitration tribunal or the negotiation between the parties.
VI. Main business situations during the reporting period
Please refer to “IV. Discussion and analysis of business situations” in this section for details.
(I) Analysis of main business
1. Analysis of changes in relevant items of financial statements
Unit: Yuan Currency: RMB
Item Current period Previous Period % Change
Operating income 1,269,322,202.11 1,104,689,243.59 14.90
Operating costs 884,560,607.88 723,612,305.19 22.24
Selling expenses 120,302,361.36 89,686,195.83 34.14
Administrative expenses 106,015,842.36 83,960,516.92 26.27
Financial expenses -3,353,880.91 1,532,019.30 -318.92
R&D expenses 114,959,786.37 95,128,483.66 20.85
Net cash flow from operating activities -78,553,359.67 170,659,313.90 -146.03
Net cash flows from investing activities 5,167,457.19 -365,535,026.25 N/A
Net cash flows from financing activities 124,508,865.09 75,588,344.51 64.72
Description of reasons for changes in the operating income: The operating income increased by 14.90%
on a year-on-year basis, primarily due to the growth of revenue from core devices, To C and the large
venue projector businesses.
Description of reasons for changes in the operating costs: The operating costs increased by 22.24% on a
year-on-year basis, primarily due to the pro-rate increase in the operating costs from the growth of
operating income; the Company’s revenue structure changed, including the increase in the revenue from
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2022 Semiannual Report
To C business and the decrease in cinema projection service with high gross margin, which resulted in the
changes in operating costs exceeding the changes in operating income.
Description of reasons for changes in the selling expenses: The selling expenses increased by 34.14% on
a year-on-year basis, primarily due to the increase in marketing expenses caused by the Company’s
furthered promotion and the increase in employee salaries caused by the rise in sales personnel in the
current period.
Description of reasons for changes in the administrative expenses: The administrative expenses increased
by 26.27% on a year-on-year basis, primarily due to the incentives to core personnel playing a significant
role in the new growth curve of the Company in the future; and the Company successively launched
restricted share incentive plans, under which the share-based payment expenses were RMB 44.3015
million in the current period, with a year-on-year increase.
Description of reasons for changes in the financial expenses: The financial expenses decreased by 318.92%
on a year-on-year basis, primarily due to the increase in foreign exchange gains caused by the exchange
rate fluctuations in the current period.
Description of reasons for changes in the R&D expenses: The R&D expenses increased by 20.85% on a
year-on-year basis, primarily due to the rise in the number of R&D employees and their average salaries
as a result of our continuous investments in the R&D.
Description of reasons for changes in the net cash flows from operating activities: The net cash flows from
operating activities decreased by 146.03% on a year-on-year basis, primarily due to the decrease in the
revenue from the cinema projection service and the government grants received compared with the same
period of the previous year and the increase in the human resources expenditures and marketing and
promotion expenses.
Description of reasons for changes in the net cash flows from investing activities: The net cash flows
increased by RMB 370.7025 million on a year-on-year basis, primarily due to recovery of investments
from transfer by the Company of the equity in the participating companies, and due to the year-on-year
decrease of the new increase in bank wealth management amount.
Description of reasons for changes in the net cash flows from financing activities: The net cash flows from
financing activities increased by 64.72% on a year-on-year basis, primarily due to the increase in bank
loans in the current period.
2. Detailed description of major changes in the business type, profit composition or profit sources
of the Company in the current period
□ Applicable √ N/A
(II) Explanation about material change in profit due to non-main business
□ Applicable √ N/A
(III) Analysis of assets and liabilities
√ Applicable □ N/A
1. Status of assets and liabilities
Unit: Yuan
% of
total % of total
Balance at
Balance at the assets assets at
the end of %
Item end of the at the the end of Explanation
the prior Change
period end of the prior
period
the period
period
Receivables 3,289,265.10 0.08 244,860.00 0.01 1,243.32 Primarily due
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2022 Semiannual Report
financing to the increase
in bank’s
acceptance
bills received
during this
period
Primarily due
to cancellation
of
prepayments
at the end of
98,116,970. the prior year
Prepayments 62,817,169.05 1.52 2.39 -35.98
83 because of
receipt of
purchased raw
materials in
the current
period
Primarily due
to recovery of
payments
Contract 3,903,859.2 because of
2,655,553.13 0.06 0.10 -31.98
assets 3 project
acceptance in
the current
period
Primarily due
to the increase
Other current 52,761,820.
70,973,361.94 1.72 1.29 34.52 in the input
assets 83
VAT to be
deducted
Primarily due
Long-term to disposal of
293,601,085
equity 159,724,538.60 3.87 7.17 -45.60 the equity in
.27
investment participating
companies
Primarily due
to the signing
of new lease
Use right 26,803,910. contracts and
47,546,507.50 1.15 0.65 77.39
assets 76 the
confirmation
of use right
assets
Primarily due
to the increase
Other non- 10,998,641.
17,929,878.09 0.43 0.27 63.02 in
current assets 77
prepayments
for long-term
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2022 Semiannual Report
assets
Primarily due
to the increase
in bank loans
and the
Short-term 5,570,878.1
130,045,205.48 3.15 0.14 2,234.38 discount of
borrowings 1
bank’s
acceptance
bills in the
current period
Primarily due
to the payment
Accounts 419,966,567 of amounts of
292,737,366.30 7.10 10.25 -30.30
payable .27 goods payable
in the current
period
Primarily due
to the payment
of accrued
Employee salaries and
64,119,087.
benefits 27,603,680.75 0.67 1.56 -56.95 wages as well
51
payable as bonuses for
the preceding
year in the
current period
Primarily due
to the payment
of amounts
Other current 19,561,104.
6,652,129.13 0.16 0.48 -65.99 payable for
liabilities 12
goods
returned in the
current period
Primarily due
to the signing
of new lease
Lease 10,789,352. contracts and
29,884,884.77 0.72 0.26 176.98
liabilities 69 the
confirmation
of Lease
liabilities
Other description
None
2. Overseas assets
√ Applicable □ N/A
(1) Size of assets
Including: overseas assets of RMB 579,548,700.00 (Unit: Yuan Currency: RMB), accounting for
14.05% of total assets.
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2022 Semiannual Report
(2) Explanation about the high proportion of overseas assets
□ Applicable √ N/A
3. Encumbrances on major assets as of the end of the reporting period
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Amount Reason
Bank deposits 40,000,000.00 Term deposits
Bank deposits 3,293,156.61 Pledged term deposits
Bank deposits 302,062.50 Interests accrued
Other monetary funds 50,315,805.66 Security deposit for notes and letters of credit
Land use rights used to be as the loan
Intangible assets 286,545,999.84
mortgage
4. Other description
□ Applicable √ N/A
(IV) Analysis of investments
1. Overall analysis of external equity investments
√ Applicable□ N/A
At the end of the reporting period, the Company held the long-term equity investment of RMB
159.7245 million, RMB 133.8765 million lower than the opening amount.
(1) Material equity investments
√ Applicable□ N/A
Shareholding
Opening carrying Closing carrying Accounting
Name of the Investees ratio in the
amount (RMB) amount (RMB) account
investee (%)
Cinionic Limited 126,924,427.39 0.00 0.00
Long-term
GDC Technology Limited
166,676,657.88 159,724,538.60 44.00 equity
(British Virgin Islands)
investment
(2) Material non-equity investments
□ Applicable √ N/A
(3) Financial assets at fair value
√ Applicable□ N/A
As of June 30, 2022, the balance of held-for-trading financial assets was RMB 493,566,000.00,
including RMB 449,000,000.00 of structured deposits, RMB 44,566,000.00 of investment in equity
instruments, and RMB -1,634,000.00 of changes in fair values for the current period; the balance of other
investments in equity instruments was RMB 7,075,419.38, namely investment in two investees of the
Company; the balance of receivables financing was RMB 3,289,265.10, namely bank acceptance bills.
(V) Sale of material assets and equities
√ Applicable□ N/A
During the reporting period, based on its operating development demand, the Company transferred
its 20% of equity in Cinionic Limited to Barco Visual Electronics Company Limited as the transferee at
the price of USD 20 million, so as to further optimize the asset structure and effectively integrate resources
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2022 Semiannual Report
of the Company. This transaction has been completed. After the completion of this transaction, the
company ceased to hold the equity in Cinionic Limited. This equity transfer generated a translation
difference due to exchange rate fluctuations, so the Company recognized the USD -704,670.16 of the loss
on disposal (translated into RMB -4,611,079.66).
(VI) Analysis of major holding and participating stock companies
√ Applicable□ N/A
Unit: 0’000 Currency: RMB
Main Registered Shareholding Total Net Operatin Net
Name
business capital ratio assets assets g income profit
Provision
of cinema
laser light
source
CINEAPPO projection 10,000.00 63.20% 88,178.21 44,110.46 16,109.94 636.46
service
and sales
of
projectors
R&D and
sale of
Formovie household 7,017.54 39.19% 96,325.45 1,241.16 60,958.84 -4,658.22
display
products
R&D and
Appotronics sale of
30,116.15 100.00% 49,028.75 36,479.58 9,518.38 -415.81
HK laser light
source
(VII) Structured entities controlled by the Company
□ Applicable √ N/A
VII. Other disclosures
□ Applicable √ N/A
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Section IVCorporate Governance
I. Brief introduction of general meetings of shareholders
Reference to
Date of
resolutions
Date of disclosure
Session published on the Resolutions
meeting of
designated
resolutions
website
Please refer to the
Announcement on the
Resolutions of the 1st
Extraordinary General
1st extraordinary Meeting of Shareholders in
March 29, March 30,
general meeting of www.sse.com.cn 2022 (No. 2022-027)
2022 2022
shareholders in 2022 disclosed by the Company
at the website of the
Shanghai Stock Exchange
(www.sse.com.cn) on
March 30, 2022 for details.
Please refer to the
Announcement on the
Resolutions of the 2nd
Extraordinary General
2nd extraordinary Meeting of Shareholders in
April 22, April 23,
general meeting of www.sse.com.cn 2022 (No. 2022-034)
2022 2022
shareholders in 2022 disclosed by the Company
at the website of the
Shanghai Stock Exchange
(www.sse.com.cn) on April
23, 2022 for details.
Please refer to the
Announcement on the
Resolutions of the 2nd
Extraordinary General
Annual general Meeting of Shareholders in
May 26,
meeting of May 25, 2022 www.sse.com.cn 2022 (No. 2022-054)
2022
shareholders in 2021 disclosed by the Company
at the website of the
Shanghai Stock Exchange
(www.sse.com.cn) on May
26, 2022 for details.
Extraordinary general meeting of shareholders requested by the preferred shareholder with
restitution of voting right
□ Applicable √ N/A
Explanation about the general meetings of shareholders
√ Applicable□ N/A
During the reporting period, the Company held 1 annual general meeting and 2 extraordinary general
meetings in total. After being certified by Beijing JunHe (Shenzhen) Law Firm engaged by the Company,
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the convening and holding procedures of general meetings of shareholders, the qualifications of the
persons attending the meting and conveners, the voting procedures and results comply with the relevant
provisions of the Companies Law, the Rules for General Meetings of Shareholders and other laws,
regulations and normative documents as well as the provisions of the Articles of Association, and are legal
and valid. All proposals submitted by the Board of Directors of the Company to the General Meeting have
been reviewed and passed.
II. Changes in directors, supervisors, senior officers and key technical staff
√ Applicable□ N/A
Name Position Change
BO Lianming Director Left the Company
YU Zhuoping Director Elect
YAN Li Board Secretary Left the Company
CHEN Yasha Board Secretary Recruited
Changes in directors, supervisors, senior officers and key technical staff
√ Applicable□ N/A
1. Mr. BO Lianming, the former director, resigned from his position as the member of the second
Board of Directors and as the member of the Strategy Committee under the second Board of Directors due
to his physical health on March 11, 2022, and after that, he ceased to hold any position in the Company.
The Company convened the 8th meeting of the second Board of Directors and the 1st extraordinary general
meeting of shareholders in 2022 respectively on March 11, 2022 and March 29, 2022, approving the
Proposal on Election of Mr. YU Zhuoping as the Company’s Non-independent Director through
deliberation, and agreeing to elect Mr. YU Zhuoping as a non-independent director of the Company and
the member of Strategy Committee under the second Board of Directors, with the term of office
commencing from the date of approval by that meeting until the expiry of the term of the second Board of
Directors.
2. Ms. YAN Li, the former secretary of the Board of Directors, resigned from her position as the
secretary of the Board of Directors due to her personal family and physical health, and after that, she
ceased to hold any position in the Company. The Company convened the 12th meeting of the second
Board of Directors on April 29, 2022, approving the Proposal on Appointment of the Company’s Secretary
of the Board of Directors through deliberation, and agreeing to appoint Ms. CHEN Yasha as the secretary
of the Board of Directors, with the term of office commencing from the date of approval by that meeting
until the expiry of the term of the second Board of Directors.
Description of determination of key technical staff of the Company
√ Applicable□ N/A
The key technical staff of the Company were determined by taking into account the following factors:
(1) play an important role in the Company’s R&D system or hold an important position in the Company’s
R&D department;
(2) lead the R&D of multiple core technologies of the Company during the period of service;
(3) obtain several patents in the capacity as inventor or designer, and make outstanding contributions to
the core technologies of the Company;
(4) have a deep professional knowledge background in the laser display industry, broad work
qualifications or project experience.
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Any candidate shall meet at least two of the above criteria at the same time, and then with the approval by
the Chairman, may be determined as a key technician of the Company.
III. Proposals for profit distribution and capitalization of the capital reserve
Profit distribution proposal or proposal for capitalization of capital reserve during the reporting
period
Whether to implement profit distribution or No
capitalization of capital reserve
Number of bonus shares distributed per 10 shares /
Cash dividends distributed per 10 shares (inclusive /
of tax)
Number of shares distributed out of the capital /
reserve per 10 shares
Description of the proposal for profit distribution on ordinary shares and capitalization of the capital
reserve
/
IV. Share incentive plan, employee stock ownership plan and other employee incentive measures
of the Company and their effect
(I) Equity incentives already disclosed in the interim announcements about which no new
information is available
√ Applicable□ N/A
Summary Reference
8th
The Company held the meeting of the second Board of Directors,
the 7th meeting of the second Board of Supervisors and the 1st
Please refer to the relevant
extraordinary general meeting of shareholders in 2022 respectively
announcements disclosed by
on March 11, 2022 and March 29, 2022, approving the Proposal on
the Company at the website of
Adjusting the Grant Price of Restricted Shares under the 2021
the Shanghai Stock Exchange
Restricted Share Incentive Plan, the Proposal on Granting Reserved
(www.sse.com.cn) on March
Restricted Shares to Grantees under the 2021 Restricted Share
14, 2022 and March 30, 2022
Incentive Plan, the Proposal on Granting Reserved Restricted Shares
for details.
to Grantees under the 2021 Second Restricted Share Incentive Plan,
and other related proposals through deliberation.
Please refer to the relevant
On April 29, 2022, the Company held the 12th meeting of the second
announcements disclosed by
Board of Directors and the 11th meeting of the second Board of
the Company at the website of
Supervisors, approving the Proposal on the 2022 Restricted Share
the Shanghai Stock Exchange
Incentive Plan (Draft) of the Company and Summary of the Plan and
(www.sse.com.cn) on April 30,
other related proposals through deliberation.
2022 for details.
On May 25, 2022, the Company held the annual general meeting of
shareholders in 2021, approving the Proposal on the 2022 Restricted Please refer to the relevant
Share Incentive Plan (Draft) of the Company and Summary of the announcements disclosed by
Plan and other related proposals through deliberation. the Company at the website of
On May 25, 2022, the Company held the 13th meeting of the second the Shanghai Stock Exchange
Board of Directors and the 12th meeting of the second Board of (www.sse.com.cn) on May 26,
Supervisors, approving the Proposal on Initial Granting of Restricted 2022 for details.
Shares to Grantees through deliberation.
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On June 29, 2022, the Company held the 14th meeting of the second
Board of Directors and the 13th meeting of the second Board of Please refer to the relevant
Supervisors, approving the Proposal on Invalidating Partially announcements disclosed by
Granted but Not Vested 2021 Restricted Shares, the Proposal on the Company at the website of
Adjustments to Grant Prices under the Company’s Restricted Share the Shanghai Stock Exchange
Incentive Plan, the Proposal on Vesting Criteria for the First Vesting (www.sse.com.cn) on June 30,
Period in the Initial Grant under 2021 Restricted Share Incentive Plan 2022 for details.
and other related proposals through deliberation.
(II) Incentives that have not been disclosed in any interim announcement or about which there’s
new information available
Share incentives
□ Applicable √ N/A
Other description
□ Applicable √ N/A
Employee stock ownership plan
□ Applicable √ N/A
Other incentives
□ Applicable √ N/A
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2022 Semiannual Report
Section V Environment and Social Responsibilities
I. Environment
(I) Environmental protection information of the Company and its major subsidiaries that are
identified as major polluters by the environmental protection authority
□ Applicable √ N/A
(II) Environmental protection information of any company that is not identified as a major polluter
√ Applicable□ N/A
1. Administrative penalties imposed due to environmental issues
□ Applicable √ N/A
2. Disclosure of other environmental protection information with reference to that of major
polluters
√ Applicable□ N/A
As a leading laser display technology enterprise in the world, the Company mainly engages in the
research and development, production and sales of laser display core devices and complete equipment and
application of laser display technology to different scenarios based on the proprietary laser display
technology and architecture. The Company does not belong to the major polluter as determined by the
relevant laws and regulations of the state. During the reporting period, the Company had no production or
operating entity included in the list of major polluters identified by the environmental protection authority,
and its production and operating activities have little impact on environment. During its production and
operation, the Company mainly emits waste gas, waste water and solid waste, which have been properly
handled in accordance with the relevant requirements.
The industrial waste gas emitted from the Company’s daily production and operation mainly include
tin-containing waste gas and non-methane hydrocarbons, which is treated by UV photolysis, active carbon
adsorption plant, air purification equipment and other equipment. The emission concentration of treated
waste gas meets the Atmospheric Pollutant Emission Limit (DB44/27 - 2001 Level 2), the environmental
standard in the place where the production or operation entity is domiciled, and the Company engages a
third-party testing organization to conduct test and valuation every year.
The sanitary wastewater discharged by the Company’s offices is uniformly treated by the office
buildings and the industrial park properties, and after the qualified pretreatment, then discharged into the
municipal sewage pipe network. The industrial wastewater is uniformly recycled and treated by a qualified
environmental protection company. Meanwhile, the Company actively optimizes the production process
and reduces sewage discharge.
Hazardous waste and general industrial solid waste are professionally treated by a qualified
environmental protection company, while recyclable waste is collected and sorted by the Company’s
cleaning staff and then recovered by the relevant resource recovery unit.
3. Reason for failure to disclose other environmental protection information
□ Applicable √ N/A
(III) New information about the environmental protection information disclosed during the
reporting period
□ Applicable √ N/A
(IV) Relevant information conducive to protecting ecology, preventing pollution and fulfilling
environmental responsibilities
√ Applicable□ N/A
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The Company achieved ISO14001 environmental management system certification in 2008, and
maintained such certification to date, and also achieved the QC080000 Hazardous Substance Process
Management (HSPM) in 2019. All of our products are green products and have passed China
environmental labeling product certification, RoHS, REACH.
To achieve “dual carbon” goals, the Company is committed to giving full play to the supporting and
leading role of scientific and technological innovation and conducting green and low-carbon technological
innovation activities. The Company devotes itself to providing customers with environmental-friendly
innovative solutions. Compared with the traditional cinema light source, the energy-saving design of
ALPD laser light source enables it to be high-efficient and energy-saving and make outstanding
achievements in energy conservation and emission reduction.
As of the end of the reporting period, ALPD laser projection solution in China has realized 212.8
million hours of running length, help partners save about 383 millions kWh of electricity and reduce about
167.7 million m3 of CO2 emissions. The Company has constantly generated economic benefits for
customers in terms of green, low-carbon and technologically innovative actions and contributed to the
national “dual carbon” goals.
(V) Measures taken to reduce carbon emissions during the reporting period and their effect
√ Applicable□ N/A
Internally, the Company continued to act with the goal of reducing costs and improving efficiency.
We innovated technologies and optimized optical structure to reduce the use of devices on the basis of
realizing equal effect and kept improving the use rate of raw materials and equipment, thus reducing the
consumption of resources.
The Company actively advocated green office. To be specific, in the process of daily office, we
guided employees to use online approval system to replace paper and to shut off computers when they get
off the work and turn off lights during lunch breaks for one hour. Our administrative department
established an energy-saving team to check the shutdown of equipment and power every day and give a
reminder timely in case of keeping it running. In addition, we provided the shuttle bus for employees and
advocated the use of public transit means, so as to reduce daily carbon emissions. We also posted
conspicuous signs of power and paper saving at the relevant locations of the office space and the water
saving reminders in the rest room.
The Company attached great importance to the popularization of daily energy conservation and
environmental protection conception and encouraged employees to adopt a low-carbon lifestyle,
implement rules of energy conservation and emission reduction and daily management measures, and
effectively save water and power.
II. Information on consolidation and expansion of the results of poverty alleviation, rural
revitalization and other specific work
√ Applicable□ N/A
Given the great importance attached to contributions to social development, the Company, as a
corporate citizen, donated laser projectors worth RMB 1.2597 million to Shenzhen Health Commission
through Shenzhen Red Cross Society in April 2022, which are used in the online class and home education
for the children of healthcare workers against coronavirus disease from 29 medical units including
Shenzhen Center for Disease Control and Prevention and Emergency Care Center, as the support for anti-
epidemic efforts. In June 2022, the Company gave the support to the First Youth Smart City Forum in
Shenzhen sponsored by Shenzhen Society of Science and Technology by offering large screen to protect
the vision of teenagers.
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2022 Semiannual Report
Section VI Significant Matters
I. Fulfillment of covenants
(I) Covenants made by the actual controller, shareholders, affiliates and acquirer of the Company, the Company itself and other related parties during the
reporting period or the outstanding covenants made by them in the prior periods
√ Applicable□ N/A
Whether Whether
there’s a the Reason for Action plan
time limit covenant failure to fulfill if failing to
Background of Covenant Covenant Validity period
Covenantor for the has been the covenant on fulfill the
covenant type content of covenant
fulfillment strictly time (if covenant
of the fulfilled applicable) on time
covenant on time
Covenant by the controlling
shareholder regarding
36 months after
restriction on the sale of
Restriction completion of
shares held by him, voluntary
on the sale the IPO and the Yes Yes N/A N/A
lock-up of such shares,
of shares extended period
extension of lock-up period,
stated below
intention to hold and dispose
of shares and other issues
Covenant relating Refer to IPO
36 months after
to IPO Covenant by the actual Prospectus
completion of the
controller regarding
IPO and the
restriction on the sale of
Restriction extended period
shares held by him, voluntary
on the sale stated below, and Yes Yes N/A N/A
lock-up of such shares,
of shares 6 months after
extension of lock-up period,
termination of
intention to hold and dispose
employment with
of shares and other issues
the Company
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Covenant by the concert
parties of the actual
controller regarding
36 months after
restriction on the sale of
Restriction completion of
shares held by them,
on the sale the IPO and the Yes Yes N/A N/A
voluntary lock-up of such
of shares extended period
shares, extension of lock-up
stated below
period, intention to hold and
dispose of shares and other
issues
Covenant by the directors
regarding restriction on the 12 months after
sale of shares held by them, completion of
Restriction
voluntary lock-up of such this issuing and
on the sale Yes Yes N/A N/A
shares, extension of lock-up the extended
of shares
period, intention to hold and period stated
dispose of shares and other below
issues
Covenant by the supervisors
regarding restriction on the
sale of shares held by them,
Restriction 12 months after
voluntary lock-up of such
on the sale completion of Yes Yes N/A N/A
shares, extension of lock-up
of shares this issuing
period, intention to hold and
dispose of shares and other
issues
Covenant by HU Fei, as a 12 months after
Restriction member of key technical completion of
on the sale staff, regarding restriction on the IPO and the Yes Yes N/A N/A
of shares the sale of shares held by extended period
him, voluntary lock-up of stated below,
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2022 Semiannual Report
such shares, extension of and 6 months
lock-up period, intention to after termination
hold and dispose of shares of employment
and other issues with the
Company
Covenant by the senior
officers regarding restriction 12 months after
on the sale of shares held by completion of
Restriction
them, voluntary lock-up of this issuing and
on the sale Yes Yes N/A N/A
such shares, extension of the extended
of shares
lock-up period, intention to period stated
hold and dispose of shares below
and other issues
Covenant by the key
technical staff YU Xin and 12 months after
others regarding restriction completion of
Restriction on the sale of shares held by the IPO and
on the sale them, voluntary lock-up of listing of stock Yes Yes N/A N/A
of shares such shares, extension of and the extended
lock-up period, intention to period stated
hold and dispose of shares below
and other issues
Covenant by the holders of
more than 5% shares
regarding restriction on the
12 months after
Restriction sale of shares held by them,
completion of
on the sale voluntary lock-up of such Yes Yes N/A N/A
the IPO and
of shares shares, extension of lock-up
listing of stock
period, intention to hold and
dispose of shares and other
issues
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Covenant by the other
shareholders regarding
restriction on the sale of
12 months after
Restriction shares held by them,
completion of
on the sale voluntary lock-up of such Yes Yes N/A N/A
the IPO and
of shares shares, extension of lock-up
listing of stock
period, intention to hold and
dispose of shares and other
issues
Issuer’s plan for stabilizing
the Company’s stock price
Others and covenant regarding share Yes Yes N/A N/A
repurchase measures within
three years after the listing
Controlling shareholder and
the actual controller’s plan
for stabilizing the 36 months after
Others Company’s stock price and completion of Yes Yes N/A N/A
covenant regarding share the IPO and
repurchase measures within listing of stock
three years after the listing
Directors and senior officers’
plan for stabilizing the
Company’s stock price and
Others Yes Yes N/A N/A
covenant regarding share
repurchase measures within
three years after the listing
Issuer’s covenant regarding
Others measures against fraud in Permanent No Yes N/A N/A
IPO
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2022 Semiannual Report
Controlling shareholder,
actual controller and their
Others concert parties’ covenant Permanent No Yes N/A N/A
regarding measures against
fraud in IPO
Directors, supervisors and
senior officers’ covenant
Others Permanent No Yes N/A N/A
regarding measures against
fraud in IPO
Issuer’s covenant regarding
remedial measures for
Others Permanent No Yes N/A N/A
diluted earnings in the
current period
Controlling shareholder,
actual controller and their
concert parties’ covenant
Others Permanent No Yes N/A N/A
regarding remedial measures
for diluted earnings in the
current period
Directors and senior officers’
covenant regarding remedial
Others Permanent No Yes N/A N/A
measures for diluted earnings
in the current period
Issuer’s covenant regarding
Others Permanent No Yes N/A N/A
profit distribution policy
Issuer’s covenant regarding
restraint measures and
Others liability for compensation in Permanent No Yes N/A N/A
the event of failure to fulfill
its covenants
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Controlling shareholder,
actual controller and their
concert parties’ covenant
regarding restraint measures
Others Permanent No Yes N/A N/A
and liability for
compensation in the event of
failure to fulfill their
covenants
Directors, supervisors and
senior officers’ covenant
regarding restraint measures
Others and liability for Term of office No Yes N/A N/A
compensation in the event of
failure to fulfill their
covenants
Controlling shareholder’s
Resolve
covenant on avoiding
horizontal
horizontal competition and Permanent No Yes N/A N/A
competition
regulating and reducing
issues
related-party transactions
Resolve Actual controller’s covenant
related- on avoiding horizontal
party competition and regulating Permanent No Yes N/A N/A
transaction and reducing related-party
issues transactions
Please refer to
Covenant by the grantee of the 2019
Valid period of
Covenant related share incentives regarding Restricted
Others the incentive No Yes N/A N/A
to share incentives information disclosure Share
plan
documents Incentive
Plan (Draft),
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2022 Semiannual Report
the 2021
Restricted
Share
Incentive
Plan (Draft),
the 2021
Second
Restricted
Share
Incentive
Plan (Draft)
and the 2022
Restricted
Share
Incentive
Plan (Draft)
for details
Please refer to
the 2019
Restricted
Share
Incentive
Plan (Draft),
Company’s covenant on Valid period of
the 2021
Others refraining from providing the incentive No Yes N/A N/A
Restricted
financial assistance plan
Share
Incentive
Plan (Draft),
the 2021
Second
Restricted
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2022 Semiannual Report
Share
Incentive
Plan (Draft)
and the 2022
Restricted
Share
Incentive
Plan (Draft)
for details
II. Non-operating occupation of funds by the controlling shareholder and its affiliates during the reporting period
□ Applicable √ N/A
III. Guarantees in violation of applicable regulations
□ Applicable √ N/A
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2022 Semiannual Report
IV. Audit of semiannual report
□ Applicable √ N/A
V. Changes in matters involved by non-standard audit opinions in the previous annual report and treatment thereof
□ Applicable √ N/A
VI. Matters relating to bankruptcy and reorganization
□ Applicable √ N/A
VII. Material litigations and arbitrations
√ The Company was involved in material litigations or arbitration during the reporting period
□ The Company was not involved in material litigations or arbitration during the reporting period
(I) Litigations and arbitrations already disclosed in interim announcements about which no new information is available
√ Applicable□ N/A
Summary and type of case Reference
I. (2020) Yue 73 Zhi Min Chu No. 1335-1341, 1353, 1355-1361
In August 2020, the Company initiated a civil litigation on the ground that Delta
Electronics (Shanghai) Co., Ltd., Delta Video Display System (Wujiang) Limited, Please refer to the Announcement on Litigation Against Delta Electronics
Digital Protection (Beijing) Electronics Technology Co., Ltd. and other entities (Shanghai) Co., Ltd. and Other Entities (No. 2020-037) disclosed by the
infringed the patents for invention ZL200880107739.5 and ZL200810065225.X owned Company at the website of the Shanghai Stock Exchange (www.sse.com.cn)
by the Company, requesting the court to order to stop the acts of infringing the on August 11, 2020.
Company’s patent rights and pay the damages for infringement in the amount of RMB
80.00 million.
II. (2021) Chuan 01 Zhi Min Chu No. 685 and No. 686
In December 2021, Delta Electronics, Inc. initiated a civil litigation on the ground
Please refer to the Announcement on Malicious Litigation Initiated by Delta
that the Company infringed the patents for invention ZL201410249663.7,
Electronics (No. 2021-097) disclosed by the Company at the website of the
ZL201610387831.8, and ZL201110041436.1, requesting the court to order to stop the
Shanghai Stock Exchange (www.sse.com.cn) on December 21, 2021.
acts of infringing the patent rights and pay the damages for infringement in the amount
of RMB 32.02 million.
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2022 Semiannual Report
III. (2021) Yue 73 Zhi Min Chu No. 1860
In December 2021, Delta Electronics maliciously initiated an intellectual property
Please refer to the Announcement on Malicious Litigation Initiated by Delta
litigation against the Company. Since such act infringed the rights and interests of the
Electronics (No. 2021-097) disclosed by the Company at the website of the
Company, the Company sued Delta to Guangzhou Intellectual Property Court on
Shanghai Stock Exchange (www.sse.com.cn) on December 21, 2021.
December 17, 2021 on the ground of such malicious litigation act, involving the amount
of RMB 10.00 million in total.
(II) Litigations and arbitrations that have not been disclosed in interim announcements or about which there’s new information available
√ Applicable□ N/A
Unit: 0’000 Currency: RMB
During the reporting period:
Whether
any
Party
provision
jointly and Type of Amount Result Enforcement of
Plaintiff/claimant Defendant/respondent Background is Status
severally litigation/arbitration claimed and effect judgment/award
recognized
liable
and the
amount
Case of dispute over
infringement on
patents for invention
(2019) Yue 73 Zhi RMB 10.00
Futian SPN
Min Chu No. 662, million
Projector &
Delta Electronics, Appotronics Infringement on the Plaintiff alleged released, Trial not
Video 1,614.53 No
Inc. Corporation Limited patent for invention that it is the owner of and in trial completed
System Firm
the patent for of the first
of Shenzhen
invention instance
ZL201610387831.8
and the Defendant
infringed such
44 / 225
2022 Semiannual Report
patent for invention
of the Plaintiff and
caused economic
losses to the
Plaintiff.
Case of dispute over
infringement on
patents for invention
(2019) Jing 73 Min Judgment
Chu No. 1275 and of first
No. 1276, the instance:
Plaintiff alleged that held that all
it is the owner of the the claims
Fengmi
patents for invention of Delta
Delta Electronics, Appotronics (Beijing) Infringement on Trial not
ZL201410249663.7 3,202.00 No Electronics
Inc. Corporation Limited Technology patent for invention completed
and should be
Co., Ltd.
ZL201610387831.8, dismissed.
and the Defendant Under
infringed such appeal of
patents for invention the second
of the Plaintiff and trial
caused economic
losses to the
Plaintiff.
Case of dispute over
Shanghai infringement on
Haichi patents for invention In trial of
Delta Electronics, Appotronics Infringement on Trial not
Digital (2021) Hu 73 Zhi 1,601.00 No the first
Inc. Corporation Limited patent for invention completed
Technology Min Chu No. 1070, instance
Co., Ltd. the Plaintiff alleged
that it is the owner of
45 / 225
2022 Semiannual Report
the patent for
invention
ZL201110041436.1
and the Defendant
infringed such
patent for invention
of the Plaintiff and
caused economic
losses to the
Plaintiff.
Case of dispute over
infringement on
patents for invention
(2021) Chuan 01
Zhi Min Chu No.
684, the Plaintiff
Chengdu
alleged that it is the
Jinxi The The court
owner of the patent
Delta Electronics, Appotronics Guangxian Infringement on Plaintiff ordered the
for invention 1,601.00 No
Inc. Corporation Limited Information patent for invention withdrew case to be
ZL201410249663.7
Technology its case withdrawn.
and the Defendant
Co., Ltd.
infringed such
patent for invention
of the Plaintiff and
caused economic
losses to the
Plaintiff.
Fengmi Case of dispute over
Wanbo Shenzhen Appotronics Dispute over Under trial
(Beijing) infringement on Trial not
Technology Co., Xiaoming Technology infringement on 300.00 No of the first
Technology patent for design completed
Ltd. Co., Ltd. patent for design instance
Co., Ltd.; (2022) Zhe 01 Min
46 / 225
2022 Semiannual Report
Zhejiang Chu No. 157, the
Tmall Plaintiff alleged that
Network it is the owner of the
Co., Ltd. patent for design
ZL201930556138.3
and the Defendant
infringed such
patent for invention
of the Plaintiff and
caused economic
losses to the
Plaintiff.
Arbitration case No.
01-22-0001-2735,
the Plaintiff initiated
the arbitration
GDC Technology against the
Arbitration of dispute
Limited (Cayman Company and its
Appotronics over the
Islands); Appotronics wholly-owned USD 38 Pending Trial not
Hong Kong implementation of the No
GDC Technology Corporation Limited subsidiary million trial completed
Limited Settlement
Limited (British Appotronics HK in
Agreement
Virgin Islands) respect of the
dispute over the
implementation of
the Settlement
Agreement.
Delta Video Case of dispute over Judgment
Appotronics Display infringement on of the first
Delta Electronics Infringement on Trial not
Corporation System patents for invention 2,800.00 No instance
(Shanghai) Co., Ltd. patent for invention completed
Limited (Wujiang) (2019) Yue 03 Min held that
Limited; Chu No. 2943, 2944, the
47 / 225
2022 Semiannual Report
Shenzhen 2946, 2948 and Defendant
Super 2951, the Plaintiff Delta
Network alleged that Electronics
Technology Defendant 1, should
Co., Ltd. Defendant 2 and compensate
Defendant 3 the Plaintiff
infringed the patent for RMB
for invention 1,651,997.
200810065225.X of Under
the Plaintiff and appeal of
caused economic the second
losses to the trial
Plaintiff.
Case for correcting
the inventor of
patent 19-cv-00466-
RGD-LRL, the
The Parties
Appotronics Plaintiff requested
Correcting the settled and
Corporation Delta Electronics, Inc. / that the sole / No
inventor of the patent withdrew
Limited inventor of the U.S.
the case
patent No.
9,024,241 should be
changed to Dr. HU
Fei and Dr. LI Yi.
(2021) Yue 03 Min
Chu No. 2295, the
Appotronics ZHANG
Dispute over the Plaintiff petitioned
Corporation Kesu, HUA Withdraw
Delta Electronics, Inc. ownership of patent the court to declare 30.00 No
Limited, LI Yi, Jianhao, the case
right that the patent
HU Fei WANG Bo
ZL201610387831.8
“phosphor color
48 / 225
2022 Semiannual Report
wheel and its
applicable light
source system” is
owned by the
Company.
Case of arbitration
counterclaims 01-
22-0001-2735. The
Plaintiff raised
GDC counter-claims
Technology against GDC
Limited Cayman, GDC BVI,
(British Mr. ZHANG
Appotronics Virgin Wanneng and his Not less
Corporation GDC Technology Islands); management team than
Arbitration Pending Trial not
Limited; Limited (Cayman actual on the ground that USD No
counterclaims trial completed
Appotronics Hong Islands) controller GDC Cayman, GDC 40.00
Kong Limited ZHANG BVI, Mr. ZHANG million
Wanneng Wanneng and his
and his management team
management violated the
team provisions of the
Shareholders’
Agreement and
Settlement
Agreement.
Case of dispute over
Appotronics the sales contract
Shenzhen Creality 3D Dispute over the sales Pending Trial not
Corporation (2022) Yue 0305 21.99 No
Technology Co., Ltd. contract trial completed
Limited Min Chu No. 10069,
the Plaintiff initiated
49 / 225
2022 Semiannual Report
a lawsuit with the
court in respect of
dispute over the
sales contract,
requesting the court
to order the
Defendant to make
the payments for
goods and pay the
liquidated damages.
Arbitration case of
dispute over the
sales contract
XA20220598, the
Plaintiff initiated a
Qingda lawsuit with the
Appotronics Yunzhi Feiyang court in respect of
Dispute over the sales Pending Trial not
(Xiamen) (Beijing) Network dispute over the 21.48 No
contract trial completed
Technology Co., Technology Co., Ltd. sales contract,
Ltd. requesting the court
to order the
Defendant to make
the payments for
goods and pay the
liquidated damages.
(III) Other description
√ Applicable□ N/A
(1) As of the end of this reporting period, a total of 15 invalidation petitions were raised against the Company’s patent for invention ZL200880107739.5, and a
total of 11 invalidation petitions were raised against the Company’s patent for invention ZL200810065225.X. Among these cases, 25 cases have been decided by
50 / 225
2022 Semiannual Report
China National Intellectual Property Administration, with the patents sustained, or withdrawn by the petitioner, and 1 case is under the trial of China National
Intellectual Property Administration.
(2) As of the end of this reporting period, a total of 5 invalidation petitions were raised against the Company’s patent for invention ZL201110086731.9. Among
these cases, 4 cases have been decided by China National Intellectual Property Administration, with the patents sustained, or withdrawn by the petitioner, and 1 case
is under the trial of China National Intellectual Property Administration: in May 2022, the invalidation petitioner Shenzhen Hola Technology Development Co., Ltd.
raised an invalidation petition with China National Intellectual Property Administration against the “high-brightness excitation method and light-emitting device based
on optical wavelength conversion” (Patent No.: 201110086731.9) as the patent for invention held by the Company, for which the case number is 4W114179.
(3) As of the end of the reporting period, there were 2 invalidation cases where the Company acted as a petitioner. These cases are under trial of China National
Intellectual Property Administration, and are related to the invalidation petition against patents held by Delta Electronics, Inc..
51 / 225
2022 Semiannual Report
VIII. Penalties imposed on the listed company and its directors, supervisors, senior officers,
controlling shareholder, actual controller for suspected violation of laws and regulations and
rectification of the relevant violations
□ Applicable √ N/A
IX. Credit standing of the Company and its controlling shareholder and actual controller during
the reporting period
□ Applicable √ N/A
X. Material related-party transactions
(I) Related-party transactions in connection with day-to-day operation
1. Matters already disclosed in the interim announcements about which no new information is
available
□ Applicable √ N/A
2. Matters already disclosed in the interim announcements about which there’s new information
available
√ Applicable□ N/A
Summary Reference
The Company expects to engage in daily related- Please refer to the Announcement on the
party transactions with China Film Equipment Co., Ltd. Prediction of Daily Related-party
and its affiliates, Xiaomi Communications Transactions in 2022 (No. 2022-039)
Technologies Co., Ltd. and its affiliates, Beijing disclosed by the Company at the website of
DonView Education Technology Co., Ltd. and its the Shanghai Stock Exchange
affiliates, Cinionic Limited, GDC Technology Limited (www.sse.com.cn) on April 27, 2022.
and its affiliates, YLX Incorporated and its affiliates for
the amount of RMB 1.4673 billion in 2022.
3. Matters that have not been disclosed in any interim announcement
□ Applicable √ N/A
(II) Related-party transactions involving acquisition or sale of assets or equities
1. Matters already disclosed in the interim announcements about which no new information is
available
□ Applicable √ N/A
2. Matters already disclosed in the interim announcements about which there’s new information
available
□ Applicable √ N/A
3. Matters that have not been disclosed in any interim announcement
□ Applicable √ N/A
4. Fulfillment of performance covenants (if any) during the reporting period
□ Applicable √ N/A
(III) Material related-party transactions involving joint external investments
1. Matters already disclosed in the interim announcements about which no new information is
available
√ Applicable□ N/A
Summary Reference
On March 26, 2021, the Company held the 30th Please refer to the Announcement on
52 / 225
2022 Semiannual Report
meeting of the first Board of Directors and the 17th Capital Increase by Formovie in a Wholly-
meeting of the first Board of Supervisors, approving the owned Subsidiary and Subscription for 51%
Proposal on Capital Increase by Formovie in a Wholly- Equity in WeCast Technology Corp. and
owned Subsidiary and Acquisition of 51% Equity in the Related-party Transactions (No. 2021-
WeCast Technology Corp. and the Related-party 018) disclosed by the Company at the
Transaction through deliberation, and agreeing Formovie website of the Shanghai Stock Exchange
(Chongqing) Innovative Technology Co., Ltd., a (www.sse.com.cn) on March 27, 2021.
subsidiary in the scope of the Company’s consolidated
financial statements to make additional contribution of
USD 4.00 million to the wholly-owned subsidiary
Formovie Limited, where the additional capital shall be
used to subscribe for 51% equity in WeCast Technology
Corp..
LI Yi, the actual controller and the Chairman of the
Company, acts as a director of WeCast Technology
Corp., and hence this subscription constitutes a related-
party transaction.
2. Matters already disclosed in the interim announcements about which there’s new information
available
□ Applicable √ N/A
3. Matters that have not been disclosed in any interim announcement
□ Applicable √ N/A
(IV) Accounts receivable from and payable to related parties
1. Matters already disclosed in the interim announcements about which no new information is
available
□ Applicable √ N/A
2. Matters already disclosed in the interim announcements about which there’s new information
available
□ Applicable √ N/A
3. Matters that have not been disclosed in any interim announcement
□ Applicable √ N/A
(V) Financial business between the Company and its affiliated financial companies, or between the
Company’s controlled financial companies and affiliates
□ Applicable √ N/A
(VI) Other material related-party transactions
□ Applicable √ N/A
(VII) Other information
□ Applicable √ N/A
XI. Material contracts and performance thereof
(I) Trusteeship, contracting and lease
√ Applicable□ N/A
(1) Trusteeship
□ Applicable √ N/A
53 / 225
2022 Semiannual Report
(2) Contracting
□ Applicable √ N/A
(3) Lease
√ Applicable□ N/A
Unit: 0’000 Currency: RMB
Basis
Impact of
Amount for Related-
Lease lease Related-
Name of Name Leased of Start determi party
End date incom income on party
lessor of lessee assets leased date ning transactio
e the relation
assets lease n or not
Company
income
Appotro Office,
Shenzhen
nics R&D,
Meisheng January November
Corpora factory, 1,231.93 / / / No None
Industry Co., 1, 2020 30, 2022
tion employee
Ltd.
Limited dormitory
Description of lease
None
54 / 225
2022 Semiannual Report
(II) Material guarantees that have been performed or have not yet been fully performed during the reporting period
√ Applicable□ N/A
Unit: 0’000 Currency: RMB
Total amount of guarantees provided during the reporting period (excluding
0.00
those provided for the subsidiaries)
Total balance of guarantees as of the end of the reporting period (excluding
0.00
those provided for the subsidiaries) (A)
Guarantees provided by the Company or its subsidiaries for the subsidiaries of the Company
Relationship Whether
Relationship Commencement Whether the
between the the Amount of Whether
between the date of Inception obligation
guarantor Guaranteed Expiry date of Type of obligation the overdue there’s a
Guarantor Obligor obligor and guarantee date of guaranteed
and the amount guarantee guarantee guaranteed obligation counter
the listed (signing date of guarantee has become
listed has been guaranteed guarantee
company agreement) overdue
company discharged
Three years
CINEAPPO
after the due
Laser
Appotronics date for the Joint and
Cinema Controlled 2021-12-
Corporation Headquarters 50,000.00 2021-12-29 obligations several No No No
Technology subsidiary 29
Limited under the liability
(Beijing)
master
Co., Ltd.
contract.
CINEAPPO
Laser
Appotronics Two years after Joint and
Cinema Controlled
Corporation Headquarters 23,000.00 2021-1-26 2021-1-26 the due date for several No No No
Technology subsidiary
Limited the obligations. liability
(Beijing)
Co., Ltd.
CINEAPPO
Laser Three years
Appotronics Joint and
Cinema Controlled 2021-12- after the due
Corporation Headquarters 4,000.00 2021-12-27 several No No No
Technology subsidiary 27 date for the
Limited liability
(Beijing) obligations.
Co., Ltd.
55 / 225
2022 Semiannual Report
The guarantee
CINEAPPO period is three
Laser years from the
Appotronics Joint and
Cinema Controlled 2021-12- date of
Corporation Headquarters 5,000.00 2021-12-27 several No No No
Technology subsidiary 27 termination of
Limited liability
(Beijing) claims
Co., Ltd. determination
period.
Formovie
Appotronics (Chongqing) Joint and
Controlled
Corporation Headquarters Innovative 20,000.00 2021-9-10 2021-9-10 2028-4-25 several No No No
subsidiary
Limited Technology liability
Co., Ltd.
Formovie
Appotronics (Chongqing) Joint and
Controlled
Corporation Headquarters Innovative 9,000.00 2021-12-6 2021-12-6 2026-12-30 several No No No
subsidiary
Limited Technology liability
Co., Ltd.
Three years
after the due
Fengmi
Appotronics date for the Joint and
(Beijing) Controlled
Corporation Headquarters 20,000.00 2022-3-29 2022-3-29 obligations several No No No
Technology subsidiary
Limited under the liability
Co., Ltd.
master
contract.
Three years
after the due
date (without
Formovie accelerated
Appotronics (Chongqing) maturity) of the Joint and
Controlled
Corporation Headquarters Innovative 17,500.00 2022-5-13 2022-5-13 latest financing several No No No
subsidiary
Limited Technology due and liability
Co., Ltd. payable among
all the
financings
drawn and used
56 / 225
2022 Semiannual Report
during the
period of
occurrence of
guaranteed
debts under the
master
agreement
or/and inter-
bank
borrowing.
Three years
after the due
date (without
accelerated
maturity) of the
latest financing
due and
payable among
all the
Fengmi
Appotronics financings Joint and
(Beijing) Controlled
Corporation Headquarters 2,500.00 2022-5-13 2022-5-13 drawn and used several No No No
Technology subsidiary
Limited during the liability
Co., Ltd.
period of
occurrence of
guaranteed
debts under the
master
agreement
or/and inter-
bank
borrowing.
Formovie The guarantee
Appotronics (Chongqing) period is three Joint and
Controlled 2021-12-
Corporation Headquarters Innovative 5,000.00 2021-12-29 years from the several No No No
subsidiary 29
Limited Technology date of liability
Co., Ltd. termination of
57 / 225
2022 Semiannual Report
claims
determination
period.
The guarantee
period is three
Fengmi years from the
Appotronics Joint and
(Beijing) Controlled date of
Corporation Headquarters 15,000.00 2022-6-13 2022-6-13 several No No No
Technology subsidiary termination of
Limited liability
Co., Ltd. claims
determination
period.
Three years
Formovie
Fengmi after the due
(Chongqing) Joint and
(Beijing) Controlled Controlled date for the
Innovative 15,000.00 2021-8-23 2021-8-23 several No No No
Technology subsidiary subsidiary obligations
Technology liability
Co., Ltd. under the
Co., Ltd.
master contract
Three years
Formovie after the due
Fengmi
(Chongqing) date for the Joint and
Controlled (Beijing) Controlled
Innovative 20,000.00 2021-8-23 2021-8-23 obligations several No No No
subsidiary Technology subsidiary
Technology under the liability
Co., Ltd.
Co., Ltd. master
contract.
Total amount of guarantees provided for the subsidiaries during the reporting
36,629.68
period
Total balance of guarantees provided for the subsidiaries as of the end of the
61,444.78
reporting period (B)
Total amount of guarantees provided by the Company (including those provided for the subsidiaries)
Total amount guaranteed (A+B) 61,444.78
Proportion of total amount guaranteed to the net assets of the Company (%) 24.75
Including:
Total amount of guarantees provided for the shareholders, actual controller
0
and their affiliates (C)
58 / 225
2022 Semiannual Report
Total amount of debt guarantees directly or indirectly provided for the obligors
43,276.78
whose equity-debt ratio exceeds 70% (D)
Total amount guaranteed in excess of 50% of the net assets of the Company (E) 0
Total amount guaranteed (C+D+E) 43,276.78
Explanation about outstanding guarantees for which the Company may assume
N/A
joint and several liability for repayment
Explanation about guarantees N/A
(III) Other material contracts
□ Applicable √ N/A
59 / 225
2022 Semiannual Report
XII. Use of offering proceeds
√ Applicable□ N/A
(I) Overall use of offering proceeds
√ Applicable□ N/A
Unit: Yuan
Cumulative
Ratio of the
Net offering Total offering investment
Total offering amount
Source of proceeds after Total offering proceeds used progress as of Amount
Total offering proceeds invested in
offering deduction of proceeds as of the end of the end of the invested in
proceeds committed after this year
proceeds offering committed the reporting reporting this year (4)
adjustment (1) (%)
expenses period (2) period (%)
(5)=(4)/(1)
(3)=(2)/(1)
Initial public
1,190,000,000.00 1,062,470,797.73 1,062,470,797.73 1,062,470,797.73 654,943,331.58 61.64 92,549,183.63 8.71
offering
(II) Breakdown of investment projects
√ Applicable□ N/A
Unit: Yuan
Total Total Cumulati
Cumulative Date for Material
investme investme ve total Whether
investment the project Benefits changes in
Whether nt from nt from offering the Balance
progress as to reach the Specific reason for or R&D the project
change of Source of the the proceeds Comple investment amount
of the end working failing to achieve the results feasibility,
Item investme offering offering offering used as of ted or progress and
of the condition plan of investment achieve and if any,
nt is proceeds proceeds proceeds the end of not meets the reasons
reporting for its progress d by the describe the
involved committe after the progress thereof
period (%) intended project specific
d for the adjustme reporting planned
(3)=(2)/(1) use reasons
project nt (1) period (2)
R&D and On the principles of
Initial
industrializati 313,000,0 313,000,0 234,604,9 December cost control and risk
No public 74.95 No No N/A No N/A
on of new 00.00 00.00 92.47 2022 reduction, in the past
offering
generation of two years, under the
60 / 225
2022 Semiannual Report
laser display impact of COVID-19
products and general chip
shortage in the
industry, the
Company acted more
diligently in
production capacity
expansion in
consideration of the
actual existing
production capacity
and demands to
respond to
uncertainties in the
macro environment.
The construction of
the head office
building was slowed
down due to the
repeated outbreak of
COVID-19 and
complex geological
R&D center at
Initial conditions on the site.
the head office 284,000,0 284,000,0 54,699,37 December
No public 19.26 No No This project may be N/A No N/A
of 00.00 00.00 2.81 2023
offering fully implemented
Appotronics
only after the
construction of the
head office building is
completed. As a
result, the project
implementation is
postponed.
Information Since the main body
Initial
system 70,000,00 70,000,00 27,032,66 December of the head office
No public 38.62 No No N/A No N/A
upgrade and 0.00 0.00 8.55 2023 building of the
offering
development Company is still under
61 / 225
2022 Semiannual Report
construction, the
prerequisites for
implementing this
project have not been
satisfied.
Supplementar Initial
333,000,0 333,000,0 335,395,0
y working No public 100.72 N/A Yes Yes N/A N/A No N/A
00.00 00.00 37.62
capital offering
Initial
Share 20,000,00 20,000,00 3,211,260. September
No public 16.06 No Yes N/A N/A No N/A
repurchase 0.00 0.00 13 2022
offering
Other excess Initial
42,470,79 42,470,79
offering No public No Yes N/A N/A No N/A
7.73 7.73
proceeds offering
Note:
1. On March 18, 2022, the Company held the 9th meeting of the second Board of Directors and the 8th meeting of the second Board of Supervisors, approving the
Proposal on Postponing Some Investment Projects through deliberation, and agreeing the Company to adjust the time for some investment projects to reach the
working condition for its intended use. Please refer to the Announcement on Postponing Some Investment Projects (No. 2022-019) disclosed by the Company at the
website of the Shanghai Stock Exchange (www.sse.com.cn) on March 21, 2022.
2. During the period of implementation of the Company’s investment projects using offering proceeds, the total wealth management returns of RMB 2.3950 million
were realized from the special account of supplementary working capital, which have been put into use in the project (supplementary working capital). The special
account of supplementary working capital (Hua Xia Bank Co., Ltd. Houhai Branch, Shenzhen; account number: 10869000000251463) has been deregistered. The
interest RMB 1,418.11 incurred after completion of this project has been paid to the basic account of the Company to be used as supplementary working capital.
3. Total offering proceeds used as of the end of the reporting period in respect of share repurchase include paid prices and related stamp duty, commissions and other
transaction expenses.
(III) Change in investment projects during the reporting period
□ Applicable √ N/A
62 / 225
2022 Semiannual Report
(IV) Other information about the use of offering proceeds during the reporting period
1. Early investment and replacement of offering proceeds
□ Applicable √ N/A
2. Temporarily supplement the working capital with idle offering proceeds
□ Applicable √ N/A
3. Cash management of idle offering proceeds, and investment in relevant products
√ Applicable□ N/A
The Proposal on Cash Management of Temporarily Idle Offering Proceeds was approved through
deliberation at the 32nd meeting of the first Board of Directors and the 19th meeting of the first Board of
Supervisors held by the Company on July 15, 2021. It was approved that, without affecting the normal
implementation of the investment plan for offering proceeds, a maximum of RMB 602 million temporarily
idle offering proceeds may be put under cash management to purchase investment products featuring high
security, good liquidity, and guarantee of the principal (including but not limited to structural deposits,
agreement deposits, notice deposits, term deposits, large-amount deposit note, and return notes), where
the total amount for purchasing return notes shall be no more than RMB 200 million for no more than 12
months, which shall be effective within 12 months upon the review and approval by the Company.
The Proposal on Cash Management of Temporarily Idle Offering Proceeds was approved through
deliberation at the 14th meeting of the second Board of Directors and the 13th meeting of the second Board
of Supervisors held by the Company on June 29, 2022. It was approved that, without affecting the normal
implementation of the investment plan for offering proceeds, a maximum of RMB 469 million temporarily
idle offering proceeds may be put under cash management to purchase investment products featuring high
security, good liquidity, and guarantee of the principal (including but not limited to structural deposits,
agreement deposits, notice deposits, term deposits, large-amount deposit note, and return notes), where
the total amount for purchasing return notes shall be no more than RMB 100 million for no more than 12
months, which shall be effective within 12 months upon the review and approval by the Company.
4. Permanently supplement working capital or repay bank loans with excess offering proceeds
□ Applicable √ N/A
5. Others
√ Applicable□ N/A
1. On March 18, 2022, the Company held the 9th meeting of the second Board of Directors and the
th meeting of the second Board of Supervisors, approving the Proposal on Postponing Some Investment
8
Projects through deliberation, and agreeing the Company to adjust the time for some investment projects
to reach the working condition for its intended use. Please refer to the Announcement on Postponing Some
Investment Projects (No. 2022-019) disclosed by the Company at the website of the Shanghai Stock
Exchange (www.sse.com.cn) on March 21, 2022.
2. The Company held the 9th meeting of the second Board of Directors and the 1st extraordinary
general meeting of shareholders in 2022 respectively on March 18, 2022 and March 29, 2022, approving
the Proposal on Repurchase of Shares of the Company through Call Auction through deliberation, and
agreeing the Company to use the excess offering proceeds to repurchase some RMB-denominated ordinary
shares (A shares) issued by it through call auction in the trading system of the Shanghai Stock Exchange,
with the repurchase funds totaling not less than RMB 10 million (inclusive) but not more than RMB 20
million (inclusive), the repurchase price not exceeding RMB 26.89 per share (inclusive, namely the price
after adjustments to equity distribution in 2021) and the repurchase period being six months from the date
on which this repurchase plan is approved by the general meeting of shareholders.
As of June 30, 2022, the Company had repurchased 214,517 shares in the aggregate through call
auction, representing 0.0474% of the Company’s total share capital, and paid RMB 3,211,260.13
(including stamp duty, commissions and other transaction fees).
63 / 225
2022 Semiannual Report
3. The Company held the 14th meeting of the second Board of Directors and the 13th meeting of the
second Board of Supervisors on June 29, 2022, approving the Proposal on Adjusting Internal Investment
Structure of Some Investment Projects through deliberation, and agreeing the Company to adjust the
internal investment structure of the investment project “R&D and industrialization of new generation of
laser display products”, and to decrease the “equipment purchase expenses” in the internal investment
structure of the investment project by RMB 53.8020 million and increase the “R&D expenditures” by
RMB 53.8020 million.
XIII. Other significant matters
□ Applicable √ N/A
64 / 225
2022 Semiannual Report
Section VII Changes in Shares and Shareholders
I. Changes in share capital
(I) Statement of changes in shares
1. Statement of changes in shares
During the reporting period, there is no change in total ordinary shares and share capital structure of the
Company.
2. Explanation about changes in shares
□ Applicable √ N/A
3. Effect of the changes in shares on the earnings per share, net assets per share and other
financial indicators for the duration after the reporting period to the disclosure date of the
semiannual report (if any)
√ Applicable□ N/A
(1) On July 15, 2022, the Company disclosed the Announcement of Appotronics Corporation Limited
on the Vesting Result for the First Vesting Period in the Initial Grant of the Restricted Share Incentive
Plan 2021 and Listing of Shares, completing registration of 2,881,497 vested shares. These shares became
available for trading on July 19, 2022, and the Company’s total share capital increased from 452,756,901
shares to 455,638,398 shares.
(2) In July 2022, the Company repurchased 327,891 shares in the aggregate through call auction. As
of the date of disclosure of this report, the Company repurchased 542,408 shares in the aggregate through
call auction in the trading system of the Shanghai Stock Exchange, representing 0.1190% of the
Company’s total share capital.
4. Other information disclosed as the Company deems necessary or required by the securities
regulatory authority
□ Applicable √ N/A
(II) Changes in non-tradable shares
□ Applicable √ N/A
II. Shareholder Situation
(I) Total number of shareholders:
Total number of ordinary shareholders as of the end of the reporting
13,652
period
Total number of shareholders of preferred shares whose voting rights
0
have been restituted as of the end of the reporting period (accounts)
Total number of shareholders holding shares with special voting rights
0
as of the end of the reporting period (accounts)
Number of holders of depository receipts
□ Applicable √ N/A
(II) Shares held by top 10 shareholders and top 10 holders of tradable shares as of the end of the
reporting period
Shares held by top 10 shareholders through both the general securities account and the customer
credit transaction guarantee securities account of a securities company
□ Applicable √ N/A
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Unit: Share
Shares held by top 10 shareholders
Number of Shares pledged,
non- marked, or
Balance of tradable frozen
shares shares held,
Change Number of Share Quant
held as of including
Shareholder during the Percent non- status ity Shareholder
the end of the shares
(Full name) reporting age (%) tradable nature
the lent out
period shares held
reporting under the
period refinancing
arrangeme
nt
Domestic
Shenzhen Appotronics non-stated
0 79,762,679 17.62 79,762,679 79,762,679 None 0
Holdings Limited owned
corporation
Domestic
Shenzhen Yuanshi Laser
non-stated
Industrial Investment 0 24,139,500 5.33 24,139,500 24,139,500 None 0
owned
Consulting Partnership (LP)
corporation
Domestic
Nantong Strait Appotronics non-stated
0 23,080,329 5.10 0 0 None 0
Investment Partnership (LP) owned
corporation
Domestic
Shenzhen Appotronics Daye
non-stated
Investment Limited 0 20,430,250 4.51 20,430,250 20,430,250 None 0
owned
Partnership (LP)
corporation
Domestic
Shenzhen Appotronics
non-stated
Hongye Investment Limited 0 15,662,374 3.46 15,662,374 15,662,374 None 0
owned
Partnership (LP)
corporation
CITIC PE Investment (Hong Foreign
-7,514,969 14,218,034 3.14 0 0 None 0
Kong) 2016 Limited corporation
Domestic
Shenzhen Jinleijing
non-stated
Investment Limited 0 12,353,106 2.73 12,353,106 12,353,106 None 0
owned
Partnership (LP)
corporation
Green Future Holdings Foreign
0 12,333,426 2.72 0 0 None 0
Limited corporation
SAIF IV Hong Kong (China Foreign
-6,654,249 11,330,029 2.50 0 0 None 0
Investments) Limited corporation
Domestic
Shenzhen Appotronics
non-stated
Chengye Consulting 0 10,394,846 2.30 10,394,846 10,394,846 None 0
owned
Partnership (LP)
corporation
Shares held by top 10 holders of tradable shares
Number of tradable Type and number of shares
Shareholder
shares held Category Quantity
RMB-denominated
Nantong Strait Appotronics Investment Partnership (LP) 23,080,329 23,080,329
ordinary share
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RMB-denominated
CITIC PE Investment (Hong Kong) 2016 Limited 14,218,034 14,218,034
ordinary share
RMB-denominated
Green Future Holdings Limited 12,333,426 12,333,426
ordinary share
RMB-denominated
SAIF IV Hong Kong (China Investments) Limited 11,330,029 11,330,029
ordinary share
Bank of China - Stable Income Bond Securities RMB-denominated
8,427,772 8,427,772
Investment Fund of E Fund ordinary share
Shenzhen Guochuang Chenggu Capital Management Co.,
RMB-denominated
Ltd. - Shenzhen Chengguhui Equity Investment 7,544,369 7,544,369
ordinary share
Partnership (LP)
RMB-denominated
LUO Xiaobin 6,735,000 6,735,000
ordinary share
Bank of Ningbo Co., Ltd. - Invesco Great Wall Growth
RMB-denominated
Leader One-year Holding Hybrid Securities Investment 6,618,605 6,618,605
ordinary share
Fund
China Construction Bank Corporation - Invesco Great
RMB-denominated
Wall Environment Protection Advantageous Stock 5,324,968 5,324,968
ordinary share
Securities Investment Fund
Bank of China Co., Ltd. - Invesco Great Wall Selected RMB-denominated
5,036,608 5,036,608
Hybrid Securities Investment Fund ordinary share
Description of special repurchase shareholders among
N/A
top 10 shareholders
Description of entrusting voting right, entrusted
voting right and waiver of voting right of the N/A
shareholder above
1. As of June 30, 2022, the Company had received no statement from top 10
shareholders above of the Company to confirm there is a related-party
relationship or concerted action, except the concerted action among Shenzhen
Appotronics Holdings Limited, Shenzhen Yuanshi Laser Industrial Investment
Consulting Partnership (LP), Shenzhen Appotronics Daye Investment Limited
Affiliates or concert parties among the shareholders Partnership (LP), Shenzhen Appotronics Hongye Investment Limited
stated above Partnership (LP), Shenzhen Jinleijing Investment Limited Partnership (LP), and
Shenzhen Appotronics Chengye Consulting Partnership (LP) in such top 10
shareholders of the Company.
2. The Company is not aware whether there are affiliates or concert parties as
defined in the Administrative Measures for the Acquisition of the Listed
Companies among other shareholders.
Holders of preferred shares whose voting rights have
N/A
been restituted and the number of shares held by them
Top 10 holders of non-tradable shares and lock-up period
√ Applicable□ N/A
Unit: Share
Unlocking of non-
tradable shares
Number of
Number Lock-up
No. Holder of non-tradable shares non-tradable
Unlock of shares period
shares held
date newly
unlocked
36 months
Shenzhen Appotronics Holdings July 22,
1 79,762,679 0 after the
Limited 2022
listing date
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Shenzhen Yuanshi Laser Industrial 36 months
July 22,
2 Investment Consulting Partnership 24,139,500 0 after the
2022
(LP) listing date
Shenzhen Appotronics Daye 36 months
July 22,
3 Investment Limited Partnership 20,430,250 0 after the
2022
(LP) listing date
Shenzhen Appotronics Hongye 36 months
July 22,
4 Investment Limited Partnership 15,662,374 0 after the
2022
(LP) listing date
36 months
Shenzhen Jinleijing Investment July 22,
5 12,353,106 0 after the
Limited Partnership (LP) 2022
listing date
36 months
Shenzhen Appotronics Chengye July 22,
6 10,394,846 0 after the
Consulting Partnership (LP) 2022
listing date
36 months
BLACKPINE Investment July 22,
7 3,994,011 0 after the
Corp.Limited 2022
listing date
As of June 30, 2022, the Company had received no statement
from the shareholders of the restricted shares above of the
Company to confirm there is a related-party relationship or
concerted action, except the concerted action among
Shenzhen Appotronics Holdings Limited, Shenzhen Yuanshi
Affiliates or concert parties among the Laser Industrial Investment Consulting Partnership (LP),
shareholders stated above Shenzhen Appotronics Daye Investment Limited Partnership
(LP), Shenzhen Appotronics Hongye Investment Limited
Partnership (LP), Shenzhen Jinleijing Investment Limited
Partnership (LP), Shenzhen Appotronics Chengye
Consulting Partnership (LP) and BLACKPINE Investment
Corp.Limited in the above-mentioned shareholders.
Statement of top 10 holders of domestic depository receipts as of the end of the reporting period
□ Applicable √ N/A
Number of non-tradable depository receipts held by top 10 holders and lock-up period
□ Applicable √ N/A
(III) Statement of top 10 shareholders by number of votes held as of the end of the reporting period
□ Applicable √ N/A
(IV) Strategic investors or general corporations that become top 10 shareholders as a result of
allotment of new shares/depository receipts
□ Applicable √ N/A
III. Directors, supervisors, senior officers and key technical staff
(I) Changes in shareholding of current directors, supervisors, senior officers and key technical staff
and the former directors, supervisors, senior officers and key technical staff who left the Company
during the reporting period
□ Applicable √ N/A
Other description
□ Applicable √ N/A
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(II) Share incentives granted to directors, supervisors, senior officers and key technical staff during
the reporting period
1. Share options
□ Applicable √ N/A
2. Type I restricted shares
□ Applicable √ N/A
3. Type II restricted shares
√ Applicable□ N/A
Unit: Share
Number
Number of Number
of
restricted of Number of
restricted
shares Number of restricted restricted
shares
already restricted shares shares shares already
that have
Name Title granted as at granted during that could granted as of
been
the beginning the reporting be vested the end of the
vested in
of the period in the reporting
the
reporting reporting period
reporting
period period
period
ZHANG Director, Deputy
0 700,000 0 0 700,000
Wei General Manager
WANG Director,
362,124 100,000 51,564 0 462,124
Yingxia Financial Director
CHEN
Board Secretary 222,750 210,000 13,750 0 432,750
Yasha
Key technical
HU Fei 370,316 150,000 120,316 0 520,316
staff
Key technical
YU Xin 508,752 550,000 68,752 0 1,058,752
staff
WANG Key technical
408,752 210,000 68,752 0 618,752
Lin staff
WANG Key technical
410,752 210,000 68,752 0 620,752
Zeqin staff
GUO Key technical
404,752 210,000 68,752 0 614,752
Zuqiang staff
Total / 2,688,198 2,340,000 460,638 0 5,028,198
(III) Other description
□ Applicable √ N/A
IV. Changes in the controlling shareholder or actual controller
□ Applicable √ N/A
V. Implementation of and changes in arrangements relating to depository receipts during the
reporting period
□ Applicable √ N/A
VI. Shares with special voting rights
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Section VIII Preferred Shares
□ Applicable √ N/A
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Section IX Bonds
I. Enterprise bonds, corporate bonds and non-financial corporate debt financing instruments
□ Applicable √ N/A
II. Convertible corporate bonds
□ Applicable √ N/A
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Section X Financial Report
I. Auditor’s report
□ Applicable √ N/A
II. Financial statements
Consolidated Balance Sheet
At June 30, 2022
Prepared by: Appotronics Corporation Limited
Unit: Yuan Currency: RMB
Item Note Closing balance Opening balance
Current Assets:
Cash and bank balances VII. 1 1,045,392,014.30 957,729,831.15
Balances with clearing
agencies
Placements with banks and
other financial institutions
Held-for-trading financial VII. 2
493,566,000.00 417,200,000.00
assets
Derivative financial assets
Notes receivable VII. 4 4,150,264.73 5,256,603.03
Accounts receivable VII. 5 360,460,653.70 403,134,471.87
Receivables financing VII. 6 3,289,265.10 244,860.00
Prepayments VII. 7 62,817,169.05 98,116,970.83
Premiums receivable
Amounts receivable under
reinsurance contracts
Reinsurer’s share of
insurance contract reserves
Other receivables VII. 8 32,621,049.15 30,472,595.66
Including: Interest
receivable
Dividend receivable 13,288,572.00 12,623,886.00
Financial assets purchased
under resale agreements
Inventories VII. 9 793,836,954.44 769,621,133.00
Contract assets VII. 10 2,655,553.13 3,903,859.23
Assets held for sale
Non-current assets due VII. 12
3,951,623.81 3,473,049.18
within one year
Other current assets VII. 13 70,973,361.94 52,761,820.83
Total current assets 2,873,713,909.35 2,741,915,194.78
Non-current Assets:
Loans and advances
Debt investments
Other debt investments
Long-term receivables VII. 16 5,484,318.52 5,793,552.74
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2022 Semiannual Report
Long-term equity VII. 17
159,724,538.60 293,601,085.27
investment
Investment in other equity VII. 18 7,075,419.38
7,075,419.38
instruments
Other non-current financial
assets
Investment property
Fixed assets VII. 21 454,010,462.80 470,410,450.18
Construction in progress VII. 22 184,837,501.44 148,620,511.35
Productive biological assets
Oil and gas assets
Use right assets VII. 25 47,546,507.50 26,803,910.76
Intangible assets VII. 26 295,695,402.05 301,164,605.56
Development expenditure
Goodwill
Long-term prepaid expenses VII. 29 7,490,537.22 10,126,164.82
Deferred tax assets VII. 30 70,961,435.69 80,721,419.29
Other non-current assets VII. 31 17,929,878.09 10,998,641.77
Total non-current assets 1,250,756,001.29 1,355,315,761.12
Total assets 4,124,469,910.64 4,097,230,955.90
Current Liabilities:
Short-term borrowings VII. 32 130,045,205.48 5,570,878.11
Loans from the central bank
Taking from banks and other
financial institutions
Held-for-trading financial
liabilities
Derivative financial
liabilities
Notes payable VII. 35 121,047,156.20 134,378,967.61
Accounts payable VII. 36 292,737,366.30 419,966,567.27
Advance from customers VII. 37 117,280,983.73 130,288,312.62
Contract liabilities VII. 38 50,350,874.58 45,541,629.55
Financial assets sold under
repurchase agreements
Customer deposits and
deposits from banks and other
financial institutions
Funds from securities
trading agency
Funds from underwriting
securities agency
Employee benefits payable VII. 39 27,603,680.75 64,119,087.51
Taxes payable VII. 40 17,832,103.88 19,546,190.23
Other payables VII. 41 52,311,833.50 54,115,784.80
Including: Interest payable
Dividend payable 3,103,823.79
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Fees and commissions
payable
Amounts payable under
reinsurance contracts
Liabilities held for sale
Non-current liabilities due VII. 43 178,262,318.38
154,785,116.35
within one year
Other current liabilities VII. 44 6,652,129.13 19,561,104.12
Total current liabilities 994,123,651.93 1,047,873,638.17
Non-current Liabilities:
Insurance contract reserves
Long-term borrowings VII. 45 413,598,555.25 368,635,614.64
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities VII. 47 29,884,884.77 10,789,352.69
Long-term payables
Long-term employee
benefits payable
Provisions VII. 50 36,479,555.35 36,428,688.94
Deferred income VII. 51 7,675,521.05 10,266,982.08
Deferred tax liabilities
Other non-current liabilities
Total non-current 487,638,516.42
426,120,638.35
liabilities
Total liabilities 1,481,762,168.35 1,473,994,276.52
Owners’ Equity
(Shareholders’ Equity):
Paid-in capital (or share VII. 53
452,756,901.00 452,756,901.00
capital)
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserve VII. 55 1,436,069,597.56 1,400,605,136.65
Less: Treasury shares VII. 56 3,211,260.13
Other comprehensive VII. 57
-3,106,247.99 -16,840,512.60
income
Special reserve
Surplus reserve VII. 59 56,265,868.31 56,265,868.31
General risk reserve
Undistributed profit VII. 60 543,704,072.75 545,277,188.08
Total owners’ (or
shareholders’) equity
2,482,478,931.50 2,438,064,581.44
attributable to owners of the
parent company
Minority interests 160,228,810.79 185,172,097.94
74 / 225
2022 Semiannual Report
Total owners’ (or
2,642,707,742.29 2,623,236,679.38
shareholders’) equity
Total liabilities and
owners’ (or shareholders’) 4,124,469,910.64 4,097,230,955.90
equity
Legal Representative: LI Yi Chief Accountant: WANG Yingxia Person in Charge of the Accounting
Body: WANG Yingxia
Balance Sheet of the Parent Company
At June 30, 2022
Prepared by: Appotronics Corporation Limited
Unit: Yuan Currency: RMB
Item Note Closing balance Opening balance
Current Assets:
Cash and bank balances 446,042,891.41 535,787,452.32
Held-for-trading financial
473,566,000.00 417,200,000.00
assets
Derivative financial assets
Notes receivable 4,150,264.73 5,036,603.03
Accounts receivable XVII. 1 669,416,825.13 616,216,169.96
Receivables financing 1,193,765.10 244,860.00
Prepayments 19,014,692.50 24,555,245.46
Other receivables XVII. 2 11,109,739.71 6,645,181.15
Including: Interest
receivable
Dividend receivable
Inventories 330,450,423.34 327,484,120.10
Contract assets 2,655,553.13 3,903,859.23
Assets held for sale
Non-current assets due
2,774,799.41 2,688,446.82
within one year
Other current assets 6,599,115.10
Total current assets 1,966,974,069.56 1,939,761,938.07
Non-current Assets:
Debt investments
Other debt investments
Long-term receivables 3,624,762.28 3,528,917.07
Long-term equity XVII. 3
447,485,952.76 440,559,012.12
investment
Investment in other equity
7,075,419.38 7,075,419.38
instruments
Other non-current financial
assets
Investment property
Fixed assets 57,630,260.16 59,043,066.43
Construction in progress 175,877,819.68 133,111,026.64
Productive biological assets
75 / 225
2022 Semiannual Report
Oil and gas assets
Use right assets 33,905,188.33 17,152,430.20
Intangible assets 299,786,385.15 305,569,269.44
Development expenditure
Goodwill
Long-term prepaid expenses 2,357,149.58 4,841,091.62
Deferred tax assets 17,128,298.35 22,028,444.60
Other non-current assets 12,477,994.32 6,093,687.23
Total non-current assets 1,057,349,229.99 999,002,364.73
Total assets 3,024,323,299.55 2,938,764,302.80
Current Liabilities:
Short-term borrowings 50,045,205.48
Held-for-trading financial
liabilities
Derivative financial
liabilities
Notes payable 78,067,305.33 41,601,830.90
Accounts payable 213,096,912.97 311,370,715.78
Advance from customers 616,661.03 999,484.03
Contract liabilities 24,966,870.30 14,130,218.03
Employee benefits payable 17,150,340.16 41,239,602.09
Taxes payable 10,667,346.31 11,755,599.27
Other payables 53,036,390.16 13,006,204.53
Including: Interest payable
Dividend payable 3,103,823.79
Liabilities held for sale
Non-current liabilities due
41,906,988.49 43,166,652.33
within one year
Other current liabilities 2,039,622.12 839,898.70
Total current liabilities 491,593,642.35 478,110,205.66
Non-current Liabilities:
Long-term borrowings 85,104,112.51 54,497,768.01
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 21,488,322.22 4,445,612.91
Long-term payables
Long-term employee
benefits payable
Provisions 20,955,862.41 20,275,524.78
Deferred income 4,094,465.78 9,543,692.89
Deferred tax liabilities
Other non-current liabilities
Total non-current
131,642,762.92 88,762,598.59
liabilities
Total liabilities 623,236,405.27 566,872,804.25
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2022 Semiannual Report
Owners’ equity
(shareholders’ equity):
Paid-in capital (or share
452,756,901.00 452,756,901.00
capital)
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserve 1,448,461,913.90 1,410,150,134.25
Less: Treasury shares 3,211,260.13
Other comprehensive
income
Special reserve
Surplus reserve 54,988,327.58 54,988,327.58
Undistributed profit 448,091,011.93 453,996,135.72
Total owners’ (or
2,401,086,894.28 2,371,891,498.55
shareholders’) equity
Total liabilities and
owners’ (or shareholders’) 3,024,323,299.55 2,938,764,302.80
equity
Legal Representative: LI Yi Chief Accountant: WANG Yingxia Person in Charge of the Accounting
Body: WANG Yingxia
Consolidated Income Statement
Jan. - Jun. 2022
Unit: Yuan Currency: RMB
Item Note Half year of 2022 Half year of 2021
I. Total operating income 1,269,322,202.11 1,104,689,243.59
Including: Operating income VII. 61 1,269,322,202.11 1,104,689,243.59
Interest income
Premiums earned
Fee and commission income
II. Total operating costs 1,227,121,118.16 998,250,659.71
Including: Operating costs VII. 61 884,560,607.88 723,612,305.19
Interest expenses
Fee and commission expenses
Surrenders
Claims and policyholder
benefits (net of amounts recoverable
from reinsurers)
Net withdrawal of insurance
contract reserves
Insurance policyholder
dividends
Expenses for reinsurance
accepted
Taxes and surcharges VII. 62 4,636,401.10 4,331,138.81
Selling expenses VII. 63 120,302,361.36 89,686,195.83
77 / 225
2022 Semiannual Report
Administrative expenses VII. 64 106,015,842.36 83,960,516.92
R&D expenses VII. 65 114,959,786.37 95,128,483.66
Financial expenses VII. 66 -3,353,880.91 1,532,019.30
Including: Interest expense 12,510,421.43 11,013,330.17
Interest income 6,740,942.87 10,868,184.51
Add: Other income VII. 67 21,565,810.43 54,890,296.70
Investment income (loss is
VII. 68 -4,567,473.71 9,128,665.03
indicated by “-”)
Including: Income from
investments in associates and joint -10,562,840.53 6,982,738.64
ventures
Gains from
derecognition of financial assets at
amortized assets (loss is indicated by
“-”)
Foreign exchange gains (loss
is indicated by “-”)
Gains from net exposure
hedges (loss is indicated by “-”)
Gains from changes in fair
VII. 70 -1,634,000.00 38,175,900.00
values (loss is indicated by “-”)
Losses of credit impairment
VII. 71 1,393,164.79 9,407,031.23
(loss is indicated by “-”)
Impairment losses of assets
VII. 72 -19,822,363.99 -16,581,239.34
(loss is indicated by “-”)
Gains from disposal of assets
VII. 73 17,213.16 2,806,008.82
(loss is indicated by “-”)
III. Operating profit (loss is indicated
39,153,434.63 204,265,246.32
by “-”)
Add: Non-operating income VII. 74 167,888.31 22,240,680.14
Less: Non-operating expenses VII. 75 1,511,909.47 405,501.61
IV. Total profits (total losses are
37,809,413.47 226,100,424.85
indicated by “-”)
Less: Income tax expenses VII. 76 19,269,471.17 46,305,525.16
V. Net profits (net losses are
18,539,942.30 179,794,899.69
indicated by “-”)
(I) Categorized by the continuity of operation
1. Net profits from continuing
operations (net losses are indicated by 18,539,942.30 179,794,899.69
"-")
2. Net profits from discontinued
operations (net losses are indicated by
“-”)
(II) Categorized by the ownership
1. Net profits attributable to
shareholders of the parent company 45,966,481.10 151,413,920.79
(net losses are indicated by "-")
78 / 225
2022 Semiannual Report
2. Profits or losses attributable to
minority shareholders (net losses are -27,426,538.80 28,380,978.90
indicated by “-”)
VI. Other comprehensive income, net
13,583,493.02 -4,739,767.89
of tax
(I) Other comprehensive income
that can be attributable to owners of 13,734,264.61 -4,763,298.65
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 be reclassified to profit or 13,734,264.61 -4,763,298.65
loss
(1) Other comprehensive income that
will be reclassified to profit or loss -9,668,892.26 -1,223,181.05
under the equity method
(2) Changes in fair value of other
debt investments
(3) Amount of financial assets
reclassified to other comprehensive
income
(4) Provision for credit impairment of
other debt investments
(5) Reserve for cash flow hedges
(6) Exchange differences on
translation of financial statements 23,403,156.87 -3,540,117.60
denominated in foreign currencies
(7) Others
(II) Other comprehensive income
that can be attributable to minority -150,771.59 23,530.76
shareholders, net of tax
VII. Total comprehensive income 32,123,435.32 175,055,131.80
(I) Total comprehensive income
that can be attributable to owners of 59,700,745.71 146,650,622.14
the parent company
(II) Total comprehensive income
that can be attributable to minority -27,577,310.39 28,404,509.66
shareholders
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2022 Semiannual Report
VIII. Earnings per share:
(I) Basic earnings per share
0.10 0.33
(RMB/share)
(II) Diluted earnings per share
0.10 0.33
(RMB/share)
In the event of business combinations involving enterprises under common control, the net profits realized
prior to the combination by the party being absorbed is: RMB 0.00, and the net profits realized in the last
period by the party being absorbed is: RMB 0.00.
Legal Representative: LI Yi Chief Accountant: WANG Yingxia Person in Charge of the Accounting
Body: WANG Yingxia
Income Statement of the Parent Company
Jan. - Jun. 2022
Unit: Yuan Currency: RMB
Item Note Half year of 2022 Half year of 2021
I. Operating income XVII. 4 649,645,354.34 572,827,875.91
Less: Operating costs XVII. 4 432,684,792.22 381,855,853.31
Taxes and surcharges 2,709,645.68 2,677,366.89
Selling expenses 34,971,927.98 31,778,439.77
Administrative expenses 70,191,714.62 51,914,220.61
R&D expenses 74,661,621.25 48,699,043.93
Financial expenses -12,346,217.67 -13,332,493.36
Including: Interest expense 1,758,702.76 1,232,450.71
Interest income 9,044,664.08 15,462,791.57
Add: Other income 12,418,751.65 15,069,445.02
Investment income (loss is
XVII. 5 5,884,922.38 15,655,417.87
indicated by “-”)
Including: Income from
investments in associates and joint
ventures
Gains from derecognition of
financial assets at amortized assets (loss is
indicated by “-”)
Gains from net exposure hedges
(loss is indicated by “-”)
Gains from changes in fair values
-1,634,000.00
(loss is indicated by “-”)
Losses of credit impairment (loss
-970,107.59 61,742.84
is indicated by “-”)
Impairment losses of assets (loss is
-7,784,985.64 -9,536,087.28
indicated by “-”)
Gains from disposal of assets (loss
is indicated by “-”)
II. Operating profit (loss is indicated by
54,686,451.06 90,485,963.21
“-”)
Add: Non-operating income 94,307.77 2,207,572.56
Less: Non-operating expenses 1,451,707.15 150,645.92
80 / 225
2022 Semiannual Report
III. Total profits (total losses are indicated
53,329,051.68 92,542,889.85
by “-”)
Less: Income tax expenses 11,694,579.04 13,606,250.04
IV. Net profits (net losses are indicated by
41,634,472.64 78,936,639.81
“-”)
(I) Net profits from continuing
41,634,472.64 78,936,639.81
operations (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
5. Reserve for cash flow hedges
6. Exchange differences on
translation of financial statements
denominated in foreign currencies
7. Others
VI. Total comprehensive income 41,634,472.64 78,936,639.81
VII. Earnings per share:
(I) Basic earnings per share
(RMB/share)
(II) Diluted earnings per share
(RMB/share)
Legal Representative: LI Yi Chief Accountant: WANG Yingxia Person in Charge of the Accounting
Body: WANG Yingxia
81 / 225
2022 Semiannual Report
Consolidated Cash Flow Statement
Jan. - Jun. 2022
Unit: Yuan Currency: RMB
Item Note Half year of 2022 Half year of
2021
I. Cash Flows from Operating
Activities:
Cash receipts from the sale of goods 1,453,487,844.10
1,429,234,114.59
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
Net increase in financial assets sold
under repurchase arrangements
Net cash received from securities
trading agencies
Receipts of tax refunds 3,189,929.64 2,222,772.52
Other cash receipts relating to
VII. 78(1) 34,395,802.37 113,502,001.69
operating activities
Sub-total of cash inflows from
1,466,819,846.60 1,569,212,618.31
operating activities
Cash payments for goods purchased
1,065,198,956.89 1,051,145,975.21
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
82 / 225
2022 Semiannual Report
Cash payments for interest, fees and
commissions
Cash payments for insurance
policyholder dividends
Cash payments to and on behalf of
226,213,079.42 166,538,999.80
employees
Payments of various types of taxes 47,664,436.15 46,982,376.14
Other cash payments relating to
VII. 78(2) 206,296,733.81 133,885,953.26
operating activities
Sub-total of cash outflows from
1,545,373,206.27 1,398,553,304.41
operating activities
Net cash flow from operating
-78,553,359.67 170,659,313.90
activities
II. Cash Flows from Investing
Activities:
Cash receipts from disposals and
1,047,763,409.68 228,000,000.00
recovery of investments
Cash receipts from investment income 5,995,366.82 2,145,926.39
Net cash receipts from disposals of
fixed assets, intangible assets and other 2,210.00 7,250.00
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
1,053,760,986.50 230,153,176.39
investing activities
Cash payments to acquire or construct
fixed assets, intangible assets and other 53,593,529.31 27,639,815.32
long-term assets
Cash payments to acquire investments 995,000,000.00 568,048,387.32
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
1,048,593,529.31 595,688,202.64
investing activities
Net cash flows from investing
5,167,457.19 -365,535,026.25
activities
III. Cash Flows from Financing
Activities:
Cash receipts from capital
8,866,332.86 10,131,579.00
contributions
Including: Cash receipts from capital
contributions from minority shareholders 10,131,579.00
of subsidiaries
Cash receipts from borrowings 260,569,353.56 113,544,066.34
83 / 225
2022 Semiannual Report
Other cash receipts relating to
215,000,000.00
financing activities
Sub-total of cash inflows from 338,675,645.34
269,435,686.42
financing activities
Cash repayments of borrowings 70,016,183.00 191,867,810.44
Cash payments for distribution of 40,008,875.22
dividends or profits or settlement of 57,206,348.66
interest expenses
Including: Payments for distribution of
dividends or profits to minority 11,040,000.00
shareholders of subsidiaries
Other cash payments relating to
VII. 78(6) 17,704,289.67 31,210,615.17
financing activities
Sub-total of cash outflows from
144,926,821.33 263,087,300.83
financing activities
Net cash flows from financing
124,508,865.09 75,588,344.51
activities
IV. Effect of Foreign Exchange Rate
Changes on Cash and Cash 9,162,860.18 -649,558.76
Equivalents
V. Net Increase in Cash and Cash
60,285,822.80 -119,936,926.60
Equivalents
Add: Opening balance of cash and cash
891,195,166.73 983,525,089.44
equivalents
VI. Closing Balance of Cash and Cash
951,480,989.53 863,588,162.84
Equivalents
Legal Representative: LI Yi Chief Accountant: WANG Yingxia Person in Charge of the Accounting
Body: WANG Yingxia
Cash Flow Statement of the Parent Company
Jan. - Jun. 2022
Unit: Yuan Currency: RMB
Item Note Half year of 2022 Half year of
2021
I. Cash Flows from Operating
Activities:
Cash receipts from the sale of goods
682,350,809.37 695,738,828.66
and the rendering of services
Receipts of tax refunds 329,661.66 539,857.34
Other cash receipts relating to operating
42,069,540.58 102,652,212.97
activities
Sub-total of cash inflows from
724,750,011.61 798,930,898.97
operating activities
Cash payments for goods purchased and
519,893,495.98 460,644,038.55
services received
Cash payments to and on behalf of
136,476,115.67 98,344,040.37
employees
84 / 225
2022 Semiannual Report
Payments of various types of taxes 25,813,452.99 32,447,369.04
Other cash payments relating to
51,239,349.11 59,619,379.08
operating activities
Sub-total of cash outflows from
733,422,413.75 651,054,827.04
operating activities
Net cash flow from operating activities -8,672,402.14 147,876,071.93
II. Cash Flows from Investing
Activities:
Cash receipts from disposals and
877,000,000.00 255,500,000.00
recovery of investments
Cash receipts from investment income 5,884,922.38 9,597,926.39
Net cash receipts from disposals of
fixed assets, intangible assets and other
long-term assets
Net cash receipts from disposals of
subsidiaries and other business units
Other cash receipts relating to investing
activities
Sub-total of cash inflows from
882,884,922.38 265,097,926.39
investing activities
Cash payments to acquire or construct
fixed assets, intangible assets and other 46,538,785.01 11,606,321.91
long-term assets
Cash payments to acquire investments 935,000,000.00 472,932,903.47
Net cash payments for acquisitions of
subsidiaries and other business units
Other cash payments relating to
investing activities
Sub-total of cash outflows from
981,538,785.01 484,539,225.38
investing activities
Net cash flows from investing
-98,653,862.63 -219,441,298.99
activities
III. Cash Flows from Financing
Activities:
Cash receipts from capital contributions 8,866,332.86
Cash receipts from borrowings 80,569,353.56 3,494,734.74
Other cash receipts relating to financing
activities
Sub-total of cash inflows from
89,435,686.42 3,494,734.74
financing activities
Cash repayments of borrowings 500,000.00 11,737,867.15
Cash payments for distribution of
dividends or profits or settlement of 46,860,137.39 21,319,708.05
interest expenses
Other cash payments relating to
14,585,132.93 8,435,056.25
financing activities
Sub-total of cash outflows from
61,945,270.32 41,492,631.45
financing activities
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2022 Semiannual Report
Net cash flows from financing
27,490,416.10 -37,997,896.71
activities
IV. Effect of Foreign Exchange Rate
1,342,904.11 -269,974.94
Changes on Cash and Cash Equivalents
V. Net Increase in Cash and Cash
-78,492,944.56 -109,833,098.71
Equivalents
Add: Opening balance of cash and cash
483,223,615.33 666,628,105.82
equivalents
VI. Closing Balance of Cash and Cash
404,730,670.77 556,795,007.11
Equivalents
Legal Representative: LI Yi Chief Accountant: WANG Yingxia Person in Charge of the Accounting
Body: WANG Yingxia
86 / 225
2022 Semiannual Report
Consolidated Statement of Changes in Owners’ Equity
Jan. - Jun. 2022
Unit: Yuan Currency: RMB
Half year of 2022
Equity attributable to owners of the Parent Company
Total
Item Paid-in Minority
Other equity instruments owner’s
capital Less: Other General interests
Capital Special Surplus Undistributed equity
(or Treasury comprehensive risk Others Sub-total
Preferred Perpetual reserve reserve reserve profit
share Others shares income reserve
shares bonds
capital)
I. Closing balance of the 452,756 1,400,605 56,265, 545,277,188.0 2,438,064,58 2,623,236,6
-16,840,512.60 185,172,097.94
preceding year ,901.00 ,136.65 868.31 8 1.44 79.38
Add: Changes in
accounting policies
Corrections of prior
period errors
Business combination
involving enterprises
under common control
Others
II. Opening balance of the 452,756 1,400,605 56,265, 545,277,188.0 2,438,064,58 2,623,236,6
-16,840,512.60 185,172,097.94
current year ,901.00 ,136.65 868.31 8 1.44 79.38
III. Changes for the year
35,464,46 3,211,260. 44,414,350.0 19,471,062.
(decrease is indicated by 13,734,264.61 -1,573,115.33 -24,943,287.15
0.91 13 6 91
“-”)
(I) Total comprehensive 59,700,745.7 32,123,435.
13,734,264.61 45,966,481.10 -27,577,310.39
income 1 32
(II) Owners’ contributions 35,464,46 3,211,260. 32,253,200.7 34,887,224.
2,634,023.24
and reduction in capital 0.91 13 8 02
1. Ordinary shares -
3,211,260. -
contributed by owners 3,211,260.1
13 3,211,260.13
3
2. Capital contribution
from holders of other
equity instruments
3. Share-based payment
35,464,46 35,464,460.9 38,098,484.
recognized in owners’ 2,634,023.24
0.91 1 15
equity
4. Others
87 / 225
2022 Semiannual Report
(III) Profit distribution - -
-47,539,596.43 47,539,596.4 47,539,596.
3 43
1. Transfer to surplus
reserve
2. Transfer to general risk
reserve
3. Distributions to owners - -
(or shareholders) -47,539,596.43 47,539,596.4 47,539,596.
3 43
4. Others
(IV) Transfers within
owners’ equity
1. Capitalization of capital
reserve
2. Capitalization of
surplus reserve
3. Loss offset by surplus
reserve
4. Retained earnings
carried forward from
changes in defined benefit
plans
5. Retained earnings
carried forward from other
comprehensive income
6. Others
(V) Special reserve
1. Transfer to special
reserve in the period
2. Amount utilized in the
period
(VI) Others
IV. Closing balance of the 452,756 1,436,069 3,211,260. 56,265, 543,704,072.7 2,482,478,93 2,642,707,7
-3,106,247.99 160,228,810.79
current year ,901.00 ,597.56 13 868.31 5 1.50 42.29
Half year of 2021
Item Minority Total owner’s
Equity attributable to owners of the Parent Company
interests equity
88 / 225
2022 Semiannual Report
Paid-in capital Other equity instruments Less: Other General
Special Surplus Undistributed
(or share Capital reserve Treasury comprehensive risk Others Sub-total
Preferred Perpetual reserve reserve profit
capital) Others shares income reserve
shares bonds
I. Closing
balance of the 452,756,901.00 1,249,020,991.15 -3,214,291.93 35,242,179.57 357,793,891.96 2,091,599,671.75 93,812,755.26 2,185,412,427.01
preceding year
Add: Changes
in accounting 34,923.77 9,346.56 44,270.33 -11,248.64 33,021.69
policies
Corrections
of prior period
errors
Business
combination
involving
enterprises
under common
control
Others
II. Opening
balance of the 452,756,901.00 1,249,020,991.15 -3,214,291.93 35,277,103.34 357,803,238.52 2,091,643,942.08 93,801,506.62 2,185,445,448.70
current year
III. Changes for
the year
(decrease is 111,083,348.13 -4,763,298.65 126,512,291.23 232,832,340.71 -83,735,638.25 149,096,702.46
indicated by
“-”)
(I) Total
comprehensive -4,763,298.65 151,413,920.79 146,650,622.14 28,404,509.66 175,055,131.80
income
(II) Owners’
contributions -
111,083,348.13 111,083,348.13 9,983,200.22
and reduction in 101,100,147.91
capital
1. Ordinary
shares
20,175,439.00 20,175,439.00
contributed by
owners
2. Capital
contribution
from holders of
89 / 225
2022 Semiannual Report
other equity
instruments
3. Share-based 18,461,103.38 3,890,517.84 22,351,621.22
payment
18,461,103.38
recognized in
owners’ equity
4. Others 92,622,244.75 - -32,543,860.00
92,622,244.75
125,166,104.75
(III) Profit
-24,901,629.56 -24,901,629.56 -11,040,000.00 -35,941,629.56
distribution
1. Transfer to
surplus reserve
2. Transfer to
general risk
reserve
3. Distributions
to owners (or -24,901,629.56 -24,901,629.56 -11,040,000.00 -35,941,629.56
shareholders)
4. Others
(IV) Transfers
within owners’
equity
1. Capitalization
of capital
reserve
2. Capitalization
of surplus
reserve
3. Loss offset by
surplus reserve
4. Retained
earnings carried
forward from
changes in
defined benefit
plans
5. Retained
earnings carried
forward from
other
comprehensive
income
6. Others
90 / 225
2022 Semiannual Report
(V) Special
reserve
1. Transfer to
special reserve
in the period
2. Amount
utilized in the
period
(VI) Others
IV. Closing
balance of the 452,756,901.00 1,360,104,339.28 -7,977,590.58 35,277,103.34 484,315,529.75 2,324,476,282.79 10,065,868.37 2,334,542,151.16
current year
Legal Representative: LI Yi Chief Accountant: WANG Yingxia Person in Charge of the Accounting Body: WANG Yingxia
Statement of Changes in Owners’ Equity of the Parent Company
Jan. - Jun. 2022
Unit: Yuan Currency: RMB
Half year of 2022
Paid-in Other equity instruments Other
Less: Total
Item capital (or Capital comprehen Special Surplus Undistribu
Preferred Perpetual Treasury owner’s
share Others reserve sive reserve reserve ted profit
shares bonds shares equity
capital) income
I. Closing balance of the 452,756,90 1,410,150, 54,988,32 453,996,1 2,371,891,
preceding year 1.00 134.25 7.58 35.72 498.55
Add: Changes in accounting
policies
Corrections of prior
period errors
Others
II. Opening balance of the 452,756,90 1,410,150, 54,988,32 453,996,1 2,371,891,
current year 1.00 134.25 7.58 35.72 498.55
III. Changes for the year 38,311,779 3,211,260. - 29,195,395
(decrease is indicated by “-”) .65 13 5,905,123.7 .73
9
91 / 225
2022 Semiannual Report
(I) Total comprehensive 41,634,472. 41,634,472
income 64 .64
(II) Owners’ contributions and 38,311,779 3,211,260. 35,100,519
reduction in capital .65 13 .52
1. Ordinary shares contributed 3,211,260. -
by owners 13 3,211,260.
13
2. Capital contribution from
holders of other equity
instruments
3. Share-based payment 38,311,779 38,311,779
recognized in owners’ equity .65 .65
4. Others
(III) Profit distribution - -
47,539,59 47,539,596
6.43 .43
1. Transfer to surplus reserve
2. Distributions to owners (or - -
shareholders) 47,539,59 47,539,596
6.43 .43
3. Others
(IV) Transfers within owners’
equity
1. Capitalization of capital
reserve
2. Capitalization of surplus
reserve
3. Loss offset by surplus
reserve
4. Retained earnings carried
forward from changes in
defined benefit plans
5. Retained earnings carried
forward from other
comprehensive income
92 / 225
2022 Semiannual Report
6. Others
(V) Special reserve
1. Transfer to special reserve
in the period
2. Amount utilized in the
period
(VI) Others
IV. Closing balance of the 452,756,90 1,448,461, 3,211,260. 54,988,32 448,091,0 2,401,086,
current year 1.00 913.90 13 7.58 11.93 894.28
Half year of 2021
Paid-in Other equity instruments Other
Less: Total
Item capital (or Capital comprehen Special Surplus Undistribu
Preferred Perpetual Treasury owner’s
share Others reserve sive reserve reserve ted profit
shares bonds shares equity
capital) income
I. Closing balance of the 452,756,90 1,351,261, 33,964,63 289,684,5 2,127,667,
preceding year 1.00 718.84 8.84 66.58 825.26
Add: Changes in accounting 349,237.7
349,237.72
policies 2
Corrections of prior
period errors
Others
II. Opening balance of the 452,756,90 1,351,261, 33,964,63 290,033,8 2,128,017,
current year 1.00 718.84 8.84 04.30 062.98
III. Changes for the year 19,006,591 54,035,01 73,041,602
(decrease is indicated by “-”) .95 0.25 .20
(I) Total comprehensive 78,936,63 78,936,639
income 9.81 .81
(II) Owners’ contributions 19,006,591 19,006,591
and reduction in capital .95 .95
1. Ordinary shares
contributed by owners
93 / 225
2022 Semiannual Report
2. Capital contribution from
holders of other equity
instruments
3. Share-based payment 19,006,591 19,006,591
recognized in owners’ equity .95 .95
4. Others
(III) Profit distribution - -
24,901,62 24,901,629
9.56 .56
1. Transfer to surplus reserve
2. Distributions to owners (or - -
shareholders) 24,901,62 24,901,629
9.56 .56
3. Others
(IV) Transfers within owners’
equity
1. Capitalization of capital
reserve
2. Capitalization of surplus
reserve
3. Loss offset by surplus
reserve
4. Retained earnings carried
forward from changes in
defined benefit plans
5. Retained earnings carried
forward from other
comprehensive income
6. Others
(V) Special reserve
1. Transfer to special reserve
in the period
2. Amount utilized in the
period
(VI) Others
94 / 225
2022 Semiannual Report
IV. Closing balance of the 452,756,90 1,370,268, 33,964,63 344,068,8 2,201,058,
current year 1.00 310.79 8.84 14.55 665.18
Legal Representative: LI Yi Chief Accountant: WANG Yingxia Person in Charge of the Accounting Body: WANG Yingxia
95 / 225
2022 Semiannual Report
III. Company profile
1. Profile
√ Applicable□ N/A
Appotronics Corporation Limited (hereinafter referred to as “Company” or “the Company”),
formally named as Shenzhen Appotronics Optoelectronics Technology Inc. (hereinafter referred to as
“Appotronics Inc.”), was jointly invested and established by LI Yi and XU Yanzheng and registered in
Nanshan Branch of Market Supervision and Regulation Bureau of Shenzhen on October 24, 2006 with the
legal person business license numbered in 4403011245637. Upon establishment, the registered capital of
Appotronics Inc. was RMB 100,000. On May 31, 2018, the benchmark date, Appotronics Inc was changed
into a company limited by shares entirety. On July 20, 2018, the Company completed the registration in
Nanshan Branch of Market Supervision and Regulation Bureau of Shenzhen and headquartered in
Shenzhen City, Guangdong Province. The Company holds the business license bearing the credibility code
91440300795413991N. The Company’s registered capital is RMB 452,756,901.00 divided into
452,756,901 shares (RMB 1.00 per share), including 166,736,766 outstanding shares subject to sale
restrictions and 286,020,135 outstanding shares not subject to sale restrictions. The Company’s shares
were listed for trading on Shanghai Stock Exchange on July 22, 2019.
The Company can be classified into the computer, communication and other electronic equipment
manufacturing industry. It mainly engages in research and development, production, sales and leasing of
laser display core devices and whole machines, and can provide customers with technical research and
development services and customized products. Its products mainly include laser business and education
projectors, smart mini projectors, laser TV, laser large venue projector and laser digital cinema projector.
These financial statements have been approved by the 15th meeting of the second Board of Directors
on August 18, 2022 for public disclosure.
2. Scope of consolidated financial statements
√ Applicable□ N/A
The Company has included 26 subsidiaries into the consolidated financial statements for the current
period, including Beijing Orient Appotronics Technology Co., Ltd., Shenzhen Appotronics Laser Display
Technology Co., Ltd., Qingda Appotronics (Xiamen) Technology Co., Ltd., Shenzhen Appotronics Laser
Technology Co., Ltd., Appotronics Hong Kong Limited, Shenzhen Appotronics Software Technology Co.,
Ltd., Shenzhen City Appotronics Xiaoming Technology Co., Ltd., Appotronics USA, Inc., JoveAI Limited,
JoveAI Innovation, Inc., Appotronics Technology (Changzhou) Co., Ltd., Shenzhen Appotronics Display
Device Co., Ltd., WEMAX LLC, JoveAI Asia Company Limited, Tianjin Bonian Film Partnership (LP),
Fengmi (Beijing) Technology Co., Ltd., Shenzhen Appotronics Home Line Technology Co., Ltd.,
Formovie Technology Inc., Formovie (Chongqing) Innovative Technology Co., Ltd., Formovie Limited,
Chongqing Guangbo Ecommerce Co., Ltd., Chongqing Ewei Ecommerce Co., Ltd., Shenzhen Orange
Juice Energy Technology Co., Ltd., Hongkong Orange Juice Energy Technology Co., Limited, WEMAX
INC and CINEAPPO Laser Cinema Technology (Beijing) Co., Ltd. Please refer to descriptions in VIII
and IX of Section X for details.
96 / 225
2022 Semiannual Report
IV. Basis of preparation of financial statements
1. Basis of preparation
The Company’s financial statements are prepared on a going-concern basis.
2. Going concern
√ Applicable□ N/A
The Company has detected no events or circumstances that may cast significant doubt upon its ability to
continue as a going concern within 12 months from the reporting period.
V. Significant accounting policies and accounting estimates
Specific accounting policies and accounting estimates:
√ Applicable□ N/A
IMPORTANT: The Company establishes the specific accounting policies and makes the specific
accounting estimates with respect to the impairment of financial instruments, depreciation of fixed assets
and use right assets, amortization of intangible assets, recognition of revenues and other transactions and
events according to its actual production and operation characteristics.
1. Statement of compliance with the Accounting Standards for Business Enterprises
The financial statements prepared by the Company conform to the requirements of the Accounting
Standards for Business Enterprises and truly and completely reflect the Company’s financial position,
operating results, changes in shareholders’ equity, cash flows and other related information.
2. Accounting period
The Company’s accounting year is from January 1 to December 31 of each calendar year.
3. Operating cycle
√ Applicable□ N/A
The Company has a relatively short operating cycle, and determines the liquidity of assets and liabilities
on the basis of 12 months.
4. Functional currency
The Company adopts RMB as its functional currency. The following overseas subsidiaries operate outside
of China, and adopt the currency of their primary economic environment as the functional currency:
Appotronics Hong Kong Limited, Appotronics USA, Inc., JoveAI Limited, JoveAI Innovation, Inc.,
WEMAX LLC, JoveAI Asia Company Limited, Formovie Technology Inc., Formovie Limited, Hongkong
Orange Juice Energy Technology Co., Limited, WEMAX INC, etc.
5. The accounting treatment of business combinations involving entities under common control
and not involving entities under common control
√ Applicable□ N/A
1. Accounting method for business combinations involving enterprises under common control
Assets and liabilities acquired from a business combination by the Company are measured at the
carrying amounts of the assets and liabilities of the acquiree in the consolidated financial statements of the
ultimate controller at the date of combination. The difference between the carrying amount of the owners’
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equity of the acquiree as stated in the consolidated financial statements of the ultimate controller and the
carrying amount of the total consideration paid or total par value of the shares issued in connection with
the combination is treated as an adjustment to the capital reserve. In case the capital reserve is not sufficient
to absorb the difference, the remaining balance is adjusted against the retained earnings.
2. Accounting treatment of business combinations involving entities not under common control
Where the cost of combination exceeds the Company’s interest in the fair value of the acquiree’s
identifiable net assets, the difference is recognized as goodwill. Where the cost of combination is less than
the Company’s interest in the fair value of the acquiree’s identifiable net assets, the Company firstly
reassesses the fair values of the acquiree’s identifiable assets, liabilities and contingent liabilities and the
measurement of the cost of combination. If after that reassessment, the cost of combination is still less
than the Company’s interest in the fair value of the acquiree’s identifiable net assets, the acquirer
recognizes the remaining difference immediately in profit or loss for the current period.
6. Method of preparation of consolidated financial statements
√ Applicable□ N/A
The parent company includes all of its controlled subsidiaries in its consolidated financial statements.
The consolidated financial statements are prepared by the parent company in accordance with the
Accounting Standards for Business Enterprises No. 33 -- Consolidated Financial Statements, on the basis
of the respective financial statements of the parent company and its subsidiaries, by reference to other
relevant data.
7. Classification of joint arrangements and accounting treatment of joint operations
√ Applicable□ N/A
1. Joint arrangements are classified into joint operations and joint ventures.
2. When the Company is a party to a joint operation, the Company recognizes the following items
relating to its interest in the joint operation:
(1) the assets individually held by the Company, and the Company’s share of the assets held jointly;
(2) the liabilities incurred individually by the Company, and the Company’s share of the liabilities
incurred jointly;
(3) the Company’s revenue from the sale of its share of output of the joint operation;
(4) the Company’s share of revenue from the sale of assets by the joint operation; and
(5) the expenses incurred individually by the Company, and the Company’s share of the expenses
incurred jointly.
8. Recognition of cash and cash equivalents
Cash equivalents are the Group’s short-term (generally due within 3 months from the acquisition
date), highly liquid investments that are readily convertible to known amounts of cash and which are
subject to an insignificant risk of changes in value.
9. Translation of transactions and financial statements denominated in foreign currencies
√ Applicable□ N/A
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1. Transactions denominated in foreign currencies
A foreign currency transaction is recorded in RMB, on initial recognition, by applying the spot
exchange rate on the date of the transaction. At the balance sheet date, foreign currency monetary items
are translated into RMB using the spot exchange rates at the balance sheet date. Exchange differences
arising from such translations are recognized in profit or loss for the current period, except for those
attributable to foreign currency borrowings that have been taken out specifically for the acquisition or
construction of qualifying assets and accrued interest. Non-monetary items denominated in foreign
currencies that are measured at historical cost are translated using the foreign exchange rates ruling at the
transaction dates, without adjusting the amounts in RMB. Non-monetary items denominated in foreign
currencies that are measured at fair value are translated using the foreign exchange rates prevailing at the
dates when the fair value was determined, with exchange differences arising from such translations
recognized in profit or loss for the current period or other comprehensive income.
2. Translation of financial statements denominated in foreign currencies
Asset and liability items on the balance sheet are translated at the spot exchange rate prevailing at the
balance sheet date; shareholders’ equity items other than “retained profits” are translated at the spot
exchange rates at the dates on which such items arose; income and expense items in the income statement
are translated at the exchange rates that approximate the actual spot exchange rates on the dates of the
transactions. Exchange differences arising from such translations are recognized in other comprehensive
income.
10. Financial instruments
√ Applicable□ N/A
1. Classification of financial assets and financial liabilities
On initial recognition, the Company’s financial assets are classified into three categories, including
(1) financial assets at amortized cost; (2) financial assets at fair value through other comprehensive income;
and (3) financial assets at fair value through profit or loss.
Upon initial recognition, the Company’s financial liabilities are classified into four categories,
including (1) financial liabilities at fair value through profit or loss for the current period; (2) financial
liabilities arising as a result of the transfer of financial assets not meeting the criteria for derecognition or
continuing involvement in the financial assets transferred; (3) financial guarantee contracts not falling
under Clauses (1) and (2), and loan commitments not falling under Clause (1) and below market interest
rate; and (4) financial liabilities at amortized cost.
2. Recognition, measurement and derecognition of financial assets and financial liabilities
(1) Recognition and initial measurement of financial assets and financial liabilities
When the Company becomes a party to a financial instrument contract, a financial asset or liability
is recognized. Financial assets and liabilities are initially measured at fair value. Transaction costs relating
to financial assets or liabilities at fair value through profit or loss are directly recognized in profit or loss
for the current period. Transaction costs relating to other kinds of financial assets or liabilities are included
in their initially recognized amount. However, where the accounts that do not contain any significant
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financing component or are recognized by the Company without taking into consideration the significant
financing components under the contracts with a term of less than one year upon initial recognition are
initially measured at transaction price defined in the Accounting Standard for Business Enterprises No. 14
--Revenue.
(2) Subsequent measurement of financial assets
1) Financial assets at amortized cost
Financial assets at amortized cost are subsequently measured at amortized cost using the effective
interest method. Gains or losses arising from financial assets at amortized cost that do not belong to any
hedging relationship are recognized in profit or loss for the current period upon derecognition,
reclassification, amortization using the effective interest method or recognition of impairment.
2) Investments in debt instruments at fair value through other comprehensive income
Investments in debt instruments at fair value through other comprehensive income are subsequently
measured at fair value. Interest, impairment losses or gains and exchange gains or losses calculated using
the effective interest method are recognized in profit or loss for the current period, and other gains or
losses are recognized in other comprehensive income. Upon derecognition, the aggregate gains or losses
previously recognized in other comprehensive income are transferred to profit or loss for the current period.
3) Investments in equity instruments at fair value through other comprehensive income
Investments in debt instruments at fair value through other comprehensive income are subsequently
measured at fair value. Dividends received (other than those received as recovery of investment cost) are
recognized in profit or loss for the current period, and other gains or losses are recognized in other
comprehensive income. Upon derecognition, the accumulated gains or losses previously recognized in
other comprehensive income are transferred to retained earnings.
4) Financial assets at fair value through profit or loss for the current period
Financial assets at fair value through profit or loss for the current period are subsequently measured
at fair value, with gains or losses arising therefrom, including interest and dividend income, recognized in
profit or loss for the current period, except the financial assets belonging to any hedging relationship.
(3) Subsequent measurement of financial liabilities
1) Financial liabilities at fair value through profit or loss for the current period
Financial liabilities at fair value through profit or loss for the current period include financial
liabilities held for trading (including derivatives classified as financial liabilities), and financial liabilities
directly designated as at fair value through profit or loss for the current period. Such financial liabilities
are subsequently measured at fair value. Changes in the fair value of financial liabilities designated as at
fair value through profit or loss for the period arising out of changes in the Company’s own credit risk are
recognized in other comprehensive income, unless such treatment will result in or increase any accounting
mismatch in profit or loss. Other gains or losses arising from such financial liabilities, including interest
expenses and changes in fair value not arising out of changes in the Company’s own credit risk, are
recognized in profit or loss for the current period, except the financial liabilities belonging to any hedging
relationship. Upon derecognition, the accumulated gains or losses previously recognized in other
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comprehensive income are transferred to retained earnings.
2) Financial liabilities arising as a result of the transfer of financial assets not meeting the criteria for
derecognition or continuing involvement in the financial assets transferred
Such financial liabilities are measured in accordance with the Accounting Standards for Business
Enterprises No. 23 -- Transfer of Financial Assets.
3) Financial guarantee contracts not falling under Clauses 1) and 2), and loan commitments not falling
under Clause 1) and below market interest rate
Such financial liabilities are subsequently measured at the higher of ① provision for impairment
losses determined according to the policy for impairment of financial instruments; and ② balance of the
initially recognized amount after deduction of the accumulated amortization determined in accordance
with the relevant provisions of the Accounting Standard for Business Enterprises No. 14 -- Revenue.
4) Financial liabilities at amortized cost
Financial liabilities at amortized cost are subsequently measured at amortized cost using the effective
interest method. Gains or losses on financial liabilities at amortized cost that do not belong to any hedging
relationship are recognized in profit or loss for the current period upon derecognition or amortization using
the effective interest method.
(4) Derecognition of financial assets and financial liabilities
1) Financial assets are derecognized when:
① the contractual right to receive cash flows from the financial assets has expired; or
② the financial assets have been transferred and such transfer meets the criteria for derecognition of
financial assets as set forth in the Accounting Standards for Business Enterprises No. 23 -- Transfer of
Financial Assets.
2) A financial liability (or part thereof) is derecognized when all or part of the outstanding obligations
thereon have been discharged.
3. Recognition and measurement of financial assets transferred
When a financial asset of the Company is transferred, if substantially all the risks and rewards
incidental to the ownership of the financial asset have been transferred, the financial asset is derecognized,
and the rights and obligations incurred or retained in such transfer are separately recognized as assets or
liabilities (as the case may be); if substantially all the risks and rewards incidental to the ownership of the
financial asset have been retained, the financial asset transferred continues to be recognized. If the
Company neither transferred nor retained a substantial portion of all risks and rewards incidental to the
ownership of the financial asset, then: (1) if the Company does not retain control over the financial asset,
the financial asset is derecognized, and the rights and obligations incurred or retained in such transfer are
separately recognized as assets or liabilities (as the case may be); and (2) if the Company retains control
over the financial asset, the financial asset continues to be recognized to the extent of the Company’s
continuing involvement in the financial asset transferred, and a corresponding liability is recognized.
If an entire transfer of a financial asset meets the criteria for derecognition, the difference between
(1) the carrying amount of the financial asset transferred at the date of derecognition; and (2) the sum of
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the consideration received from the transfer and the portion of the accumulated amount of changes in fair
value directly recorded as other comprehensive income originally that corresponds to the part
derecognized (where the financial asset transferred is an investment in debt instruments at fair value
through other comprehensive income) is recognized in profit or loss for the current period. If part of a
financial asset is transferred and the part transferred entirely meets the criteria for derecognition, the total
carrying amount of the financial asset immediately prior to the transfer is allocated between the part
derecognized and the part not derecognized in proportion to their relative fair value at the date of transfer,
and the difference between (1) the carrying amount of the part derecognized; and (2) the sum of the
consideration received from the transfer of the part derecognized and the portion of the accumulated
amount of changes in fair value directly recorded as other comprehensive income originally that
corresponds to the part derecognized (where the financial asset transferred is an investment in debt
instruments at fair value through other comprehensive income) is recognized in profit or loss for the
current period.
4. Determination of fair value of financial assets and financial liabilities
The Company adopts the valuation techniques applicable to the current situations and with sufficient
data available and support of other information, to determine the fair value of financial assets and financial
liabilities. The Company classifies the inputs used by the valuation techniques in the following levels and
uses them in turn:
(1) Level 1 inputs: quoted market price (unadjusted) in an active market for an identical asset or
liability available at the date of measurement;
(2) Level 2 inputs: inputs other than inputs included within Level 1 that are observable directly or
indirectly. This category includes quoted prices for similar assets or liabilities in active markets, quoted
prices for identical or similar assets or liabilities in inactive markets, observable inputs other than quoted
prices (such as interest rate and yield curves observable during regular intervals of quotation), and inputs
validated by the market;
(3) Level 3 inputs: inputs that are unobservable. This category includes interest rate or stock volatility
that cannot be directly observed or validated by observable market data, future cash flows from retirement
obligation incurred in business combinations, and financial forecasts made using own data.
5. Impairment of financial instruments
(1) Measurement and accounting treatment of impairment of financial instruments
The Company determines the impairment and assesses provision for impairment losses of financial
assets at amortized cost, investments in debt instruments at fair value through other comprehensive income,
contract assets, lease receivable, loan commitments other than financial liabilities designated at fair value
through profit or loss for the current period, and financial guarantee contracts other than financial liabilities
designated at fair value through profit or loss for the current period and financial liabilities arising as a
result of the transfer of financial assets not meeting the criteria for derecognition or continuing
involvement in the financial assets transferred, on the basis of expected credit losses.
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Expected credit loss is the weighted average of credit losses on financial instruments taking into
account the possibility of default. Credit loss is the difference between all contractual cash flows receivable
under the contract and estimated future cash flows discounted at the original effective interest rate, i.e. the
present value of all cash shortage, wherein the Company’s purchased or originated financial assets that
have become credit impaired are discounted at their credit-adjusted effective interest rate.
With respect to purchased or originated financial assets that have become credit impaired, at the
balance sheet date, the Company recognizes a loss allowance equal to the accumulated amount of changes
in lifetime expected credit losses since initial recognition.
With respect to lease receivable, accounts receivable and contract assets that are formed from
transactions under the Accounting Standards for Business Enterprises No. 14 -- Revenue, the Company
uses the simple measurement method and recognizes a loss allowance equal to the lifetime expected credit
loss.
With respect to financial assets not using the measurement methods stated above, at each balance
sheet date, the Company assesses whether the credit risk has increased significantly since initial
recognition, and recognizes a loss allowance equal to the lifetime expected credit loss if the credit risk has
increased significantly since initial recognition, or to the expected credit losses within the next 12 months
if the credit risk has not increased significantly since initial recognition.
The Company uses reasonable and supportable information, including forward-looking information,
and compares the possibility of default at the balance sheet date with the possibility of default upon initial
recognition, to determine whether the credit risk of the financial instruments has increased significantly
since initial recognition.
At the balance sheet date, if the Company determines that a financial instrument only has low credit
risk, the Company assumes that its credit risk has not increased significantly since initial recognition.
The Company assesses expected credit risk and measures expected credit losses of financial
instruments individually or collectively. When assessing the financial instruments collectively, the
Company includes the financial instruments in different groups according to their common risk
characteristics.
At each balance sheet date, the Company re-assesses the expected credit losses, with the amount of
increase in or reversal of loss allowance recognized in profit or loss for the current period as impairment
losses or gains. With respect to a financial asset at amortized cost, its carrying amount recorded in the
balance sheet is written off against the loss allowance. With respect to an investment in debt instruments
at fair value through other comprehensive income, the Company recognizes the loss allowance in other
comprehensive income, without reducing its carrying amount.
(2) Financial instruments for which expected credit risk is assessed and expected credit losses are
measured collectively
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Item Basis for Method for measuring expected credit losses
determining
a group
Other receivables
- group of deposit
and security
receivable
Nature of
Other
receivables
receivables-
group of
By reference to historic credit loss experience, and taking into
withholding
account the current situations and prediction of future economic
receivable
conditions, calculate the expected credit losses according to the
Other receivables
Receivables default risk exposure and 12-month or rate of lifetime expected
- group of
from related credit loss.
receivables from
parties in the
related parties in
scope of
the scope of
consolidation
consolidation
Other receivables
- grouping by Aging
aging
(3) Accounts receivable for which expected credit losses are measured collectively and contract
assets
1) Groups and method for measuring expected credit losses
Item Basis for determining a Method for measuring expected credit
group losses
Bank acceptance bills receivable By reference to historic credit loss
Commercial acceptance bills Type of notes experience, and taking into account the
receivable current situations and prediction of
future economic conditions, calculate
Accounts receivable - group of Receivables from related
the expected credit losses according to
receivables from related parties parties in the scope of
the default risk exposure and rate of
in the scope of consolidation consolidation
lifetime expected credit loss.
By reference to historic credit loss
experience, and taking into account the
current situations and prediction of
Accounts receivable - grouping future economic conditions, prepare a
Aging
by aging comparison table of the aging of
accounts receivable and rate of
lifetime expected credit loss, and
calculate the expected credit losses.
By reference to historic credit loss
experience, and taking into account the
Contract assets – contract assets Contract assets from current situations and prediction of
from related parties in the scope related parties in the scope future economic conditions, calculate
of consolidation of consolidation the expected credit losses according to
the default risk exposure and rate of
lifetime expected credit loss.
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By reference to historic credit loss
experience, and taking into account the
current situations and prediction of
future economic conditions, prepare a
Contract assets - group of aging Aging
comparison table of the aging of
contract assets and rate of lifetime
expected credit loss, and calculate the
expected credit losses.
By reference to historic credit loss
experience, and taking into account the
current situations and prediction of
Long-term receivables - future economic conditions, prepare a
Aging
grouping by aging comparison table of the aging of long-
term receivables and rate of lifetime
expected credit loss, and calculate the
expected credit losses.
2) Accounts receivable - comparison table of the age of accounts receivable and rate of lifetime
expected credit loss
Accounts receivable
Aging Rate of expected credit loss for accounts
receivable (%)
Within 1 year (including, the same below) 5.00
1-2 years 25.00
2-3 years 50.00
Over 3 years 100.00
6. Offsetting of financial assets and financial liabilities
Financial assets and financial liabilities are presented in the balance sheet separately, without
offsetting each other. However, the Company may represent the financial assets and financial liabilities
on a net basis in the balance sheet only if: (1) the Company has a legal right that is currently enforceable
to set off the recognized financial assets and financial liabilities, and (2) the Company intends either to
settle on a net basis, or to realize the financial asset and settle the financial liability simultaneously.
With respect to the transfer of financial assets not meeting the criteria for derecognition, the Company
does not offset the financial assets transferred against the relevant liabilities.
11. Notes receivable
Method for recognition of expected credit losses of notes receivable and relevant accounting
treatments
√ Applicable□ N/A
The Company’s method for recognition of expected credit losses of notes receivable and relevant
accounting treatments are disclosed in V.10 of Section X in details.
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12. Accounts receivable
Method for recognition of expected credit losses of accounts receivable and relevant accounting
treatments
√ Applicable□ N/A
The Company’s method for recognition of expected credit losses of accounts receivable and relevant
accounting treatments are disclosed in V.10 of Section X in details.
13. Receivables financing
√ Applicable□ N/A
The Company’s policies on receivables financing and accounting are disclosed in V.10 of Section X in
details.
14. Other receivables
Method for recognition of expected credit losses of other receivables and relevant accounting
treatments
√ Applicable□ N/A
The Company’s method for recognition of expected credit losses of other receivables and relevant
accounting treatments are disclosed in V.10 of Section X in details.
15. Inventories
√ Applicable□ N/A
1. Categories of inventories
Inventories include finished goods or merchandise held by the Company for sale in the ordinary
course of business, or work in progress in the process of production for such sale, or materials or supplies
to be consumed in the production process or in the rendering of services.
2. Valuation method of inventories upon delivery
The actual cost of inventories upon delivery is calculated using the moving weighted average method.
3. Basis for determining net realizable value of inventories
At the balance sheet date, inventories are measured at the lower of cost and net realizable value. If
the net realizable value is below the cost of inventories, a provision for decline in value of inventories is
made. For inventories directly used for sale, the net realizable value is determined as the estimated selling
price in the ordinary course of business less the estimated costs necessary to make the sale and relevant
taxes. For inventories required for processing, the net realizable value is determined as the estimated
selling price of finished goods in the ordinary course of business less the estimated costs of completion,
and the estimated costs necessary to make the sale and relevant taxes. As at the balance sheet date, if in
the same item of inventories, some are agreed with contractual prices while the others are not, the net
realizable value for such inventories is determined separately, and compared with the costs of the two parts
of inventories distinctively, as to determine the provisions or reversal of provisions for decline in value of
inventories separately.
4. Inventory count system
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The perpetual inventory system is maintained for stock system.
5. Amortization method for low cost and short-lived consumable items and packaging materials
(1) Low cost and short-lived consumable items
Low cost and short-lived consumable items are amortized using the immediate write-off method.
(2) Packaging materials
Packaging materials are amortized using the immediate write-off method.
(XII) Contract costs
Assets related to contract costs include contract acquisition costs and contract performance costs.
If costs incurred by the Company for acquiring a contract are expected to be recovered, such costs
are recognized as an asset as contract acquisition costs.
The costs incurred by the Company for performing a contract are recognized as an asset of contract
performance costs if they do not fall within the scope of other relevant standards, like inventories, fixed
assets, or intangible assets, and meet all the following conditions:
1. The cost is directly related to a present or expected contract, including direct labor, direct materials,
manufacturing expenses (or similar expenses), costs explicitly to be borne by customers, and other costs
arising from the contract;
2. The cost leads to the increase in resources of the Company for fulfilling its performance obligations
in the future; and
3. The cost is expected to be recovered.
Assets related to contract costs are amortized on the same basis as recognizing incomes from goods
related to assets, and are recognized in the profit or loss for the current period.
If the carrying amount of the assets related to contract costs is greater than the consideration expected
to be acquired by transferring the goods or services related to such assets less the costs expected to be
incurred, the Company makes provision for impairment for the exceeding portion and recognizes
impairment loss of assets. In the event of a change in the factors causing impairment in a prior period, so
that the consideration expected to be acquired by transferring the goods or services related to such assets
less the costs expected to be incurred is greater than the carrying amount of such assets, the provision for
impairment made for such assets is reversed and recognized in the profit or loss for the current period;
provided, however, that the reversed carrying amount of such assets shall not exceed the carrying amount
of such assets at the reversal data on the assumption that no provision for impairment has been made.
16. Contract assets
(1). Recognition method and criteria of contract assets
√ Applicable□ N/A
The Company presents contract assets or contract liabilities in the balance sheet according to the
relationship between the performance of contractual obligations and payment by customers. Contract
assets and contract liabilities under a same contract are presented at the net amount after offsetting each
other.
The Company presents its owned right to unconditionally (that is, only depending on the lapse of
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time) receive consideration from customers as the accounts receivable, and the right to receive the
consideration for which the goods that have been transferred to customers (that is, depending on factors
other than the lapse of time) as the contract assets.
(2). Method for recognition of expected credit losses of contract assets and relevant accounting
treatments
√ Applicable□ N/A
The method for recognition of expected credit losses of contract assets and relevant accounting
treatments are disclosed in V.10 of Section X in details.
17. Assets held for sale
□ Applicable √ N/A
18. Debt investments
Method for recognition of expected credit losses of debt investments and relevant accounting
treatments
□ Applicable √ N/A
19. Other debt investments
Method for recognition of expected credit losses of other debt investments and relevant accounting
treatments
□ Applicable √ N/A
20. Long-term receivables
Method for recognition of expected credit losses of long-term receivables and relevant accounting
treatments
√ Applicable□ N/A
The method for recognition of expected credit losses of long-term receivables and relevant accounting
treatments are disclosed in V.10 of Section X in details.
21. Long-term equity investments
√ Applicable□ N/A
1. Judgments on joint control and significant influence
Joint control is the contractually agreed sharing of control of an arrangement, which exists only when
decisions about the relevant activities of such arrangement require unanimous consent of the parties
sharing control. Significant influence is the power to participate in the financial and operating policy
making of an entity, but does not control or jointly control over those policies.
2. Determination of investment cost
(1) In case of an equity investment acquired through a business combination involving entities under
common control, if the acquirer pays consideration for the business combination by cash, transfer of non-
monetary assets, assumption of liabilities or issuance of equity securities, the initial investment cost of the
long-term equity investment is the Company’s share of the carrying amount of the owners’ equity of the
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acquiree in the consolidated financial statements of the ultimate controller at the date of combination. The
difference between: (i) the initial investment cost of the long-term equity investment; and (ii) the carrying
amount of the consideration paid for the combination or the total par value of the shares issued is treated
as an adjustment to the capital reserve. In case the capital reserve is not sufficient to absorb the difference,
the remaining balance is adjusted against the retained earnings.
For a long-term equity investment acquired through business combination involving enterprises
under common control that is achieved through multiple transactions by steps, the Company shall judge
whether such transactions constitute a package deal. If such transactions constitute a package deal, the
Company accounts for such transactions as one transaction to acquire control. If such transactions do not
constitute a package deal, the initial investment cost is the Company’s share of the carrying amount of the
owners’ equity of the acquiree in the consolidated financial statements of the ultimate controller at the date
of combination. The difference between: (i) the initial investment cost of the long-term equity investment
at the date of combination; and (ii) the sum of the carrying amount of long-term equity investment before
the combination and the carrying amount of the consideration paid for acquisition of the additional shares
at the date of combination is adjusted against the capital reserve. In case the capital reserve is not sufficient
to absorb the difference, the remaining balance is adjusted against the retained earnings.
(2) In case of an equity investment acquired through a business combination not involving enterprises
under common control, the initial investment cost is the fair value of the carrying amount of the
consideration paid for the combination at the date of acquisition.
With respect to a long-term equity investment acquired through a business combination not involving
enterprises under common control that is achieved through multiple transactions by steps, the accounting
treatment thereof in the separate financial statements is different from that in the consolidated financial
statements as stated below:
1) In the separate financial statements, the sum of the carrying amount of the equity investment
originally held in the acquiree and the additional investment cost incurred is recorded as the initial
investment cost of the equity investment changed into the cost method.
2) In the consolidated financial statements, it is required to judge whether such transactions constitute
a package deal. If such transactions constitute a package deal, the Company accounts for such transactions
as one transaction to acquire control. If such transactions do not constitute a “package deal”, the Company
re-measures the fair value of the equity held in the acquiree prior to the date of acquisition, and records
the difference between the fair value and the carrying amount as investment income for the current period;
if the equity held in the acquiree prior to the date of acquisition involves other comprehensive income
under equity method, such other comprehensive income is transferred to the income of the period in which
the date of acquisition falls, except for other comprehensive income arising from re-measurement by the
investee of changes in net liabilities or net assets of defined benefit plans.
(3) In the event of no business combination: the initial investment cost is the purchase price actually
paid if it is acquired by cash, or the fair value of the equity securities issued if it is acquired through
issuance of equity securities, or determined in accordance with the Accounting Standards for Business
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Enterprises No. 12 -- Debt Restructuring if it is acquired through debt restructuring, or determined in
accordance with the Accounting Standards for Business Enterprises No. 7 -- Exchange of Non-monetary
Assets if it is acquired through exchange of non-monetary assets.
3. Subsequent measurement and recognition of profit or loss
Long-term equity investments in investees are measured using the cost method. Long-term equity
investments in associates and joint ventures are measured using the equity method.
22. Investment properties
N/A
23. Fixed assets
(1). Criteria for recognition
√ Applicable□ N/A
Fixed assets are tangible assets held for production of goods, rendering of service, lease or operation
and management with a useful life of more than one accounting year. A fixed asset is recognized if the
economic benefits relating to it are very likely to flow to the Company and its cost can be reliably measured.
(2). Method of depreciation
√ Applicable□ N/A
Annual
Method of Depreciation Residual value
Category depreciation rate
depreciation period (years) rate (%)
(%)
Machinery and Straight line 5 5.00 19.00
equipment method
Transportation Straight line 5 5.00 19.00
equipment method
Electronic Straight line 3-5 5.00 19.00-31.67
equipment and method
others
Operating leased Straight line 3, 7 5.00 31.67, 13.57
equipment method
(3). Identification basis, valuation method and depreciation method for fixed assets acquired under
finance leases
□ Applicable √ N/A
24. Construction in progress
√ Applicable□ N/A
1. A construction in progress is recognized if the economic benefits relating to it are very likely to
flow to the Company and its cost can be reliably measured. A construction in progress is measured at the
actual cost incurred before it is completed and ready for intended use.
2. When a construction in progress is ready for intended use, it is transferred to fixed assets at its
actual construction cost. A construction in progress that is ready for intended use but the final settlement
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of which has not yet been completed is transferred to fixed assets at estimated value first, and after the
completion of final settlement, the estimated value is adjusted according to the actual cost, but the accrued
depreciation is not adjusted.
25. Borrowing costs
√ Applicable□ N/A
1. Recognition for capitalization of borrowing costs
Borrowing costs incurred by the Company that are directly attributable to the acquisition,
construction or production of a qualifying asset are capitalized as part of the cost of that asset. Other
borrowing costs are recognized as expenses and charged to the current profit or loss.
2. Capitalization period of borrowing costs
(1) Borrowing expenses are capitalized when all of the following conditions are met: 1) capital
expenditure has been incurred; 2) borrowing expenses have been incurred; and 3) activities relating to the
acquisition, construction or production of the asset that are necessary to prepare the asset for its intended
use or sale have commenced.
(2) Where acquisition and construction or production of a qualified asset is interrupted abnormally
and the interruption period lasts for more than 3 months, the capitalization of the borrowing costs shall be
suspended. The borrowing expenses incurred during these periods shall be recognized as expenses for the
current period until the acquisition, construction or production of a qualifying asset is resumed.
(3) Capitalization of borrowing expenses shall be ceased when acquisition, construction or production
of the qualifying asset has prepared for its intended use or sale.
3. Capitalization rate and capitalization amount of borrowing expenses
As for the specific borrowings for the acquisition and construction or production of assets qualifying
for capitalization, the to-be-capitalized amount of interests shall be determined in light of the actual cost
incurred on the current specific borrowings (including the amortization of discounts or premiums
determined using the effective interest method) minus the income of interests earned from the unused
borrowings by depositing it in the bank or investment income from such borrowing by making it as a
temporary investment; where a general borrowing is used for the acquisition and construction or
production assets qualifying for capitalization, the Company shall calculate and determine the to-be-
capitalized amount of interests on the general borrowing by multiplying the weighted average value of the
accumulative expenditures to asset minus the specific borrowing by the capitalization rate of the general
borrowing used.
26. Biological assets
□ Applicable √ N/A
27. Oil and gas assets
□ Applicable √ N/A
28. Use right assets
√ Applicable□ N/A
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Use right assets are initially measured at cost; the cost includes: 1) Initial measurement amount of
leased liabilities; 2) lease payments paid on or prior to the commencement of the lease term, net of the
lease incentives (if any) received; 3) initial direct expenses incurred by the lessee; and 4) costs expected
to be incurred by the lessee for dismantling and removing the leased assets, restoring the place of the
leased assets, or restoring the leased assets to the state provided under lease provisions.
The Company depreciates use right assets by using the straight-line method. If there is reasonable
certainty that the lessee will obtain ownership of the leased asset by the end of the lease term, the Company
depreciates the leased asset over its useful life. If there is no reasonable certainty that the lessee will obtain
ownership of the leased asset by the end of the lease term, the Company depreciates the leased asset over
the shorter of the lease term and its remaining useful life.
29. Intangible assets
(1). Measurement, service life and impairment test
√ Applicable□ N/A
1. Intangible assets include land use right, patents use right, and software, and are measured at cost
initially.
2. An intangible asset with a finite useful life is amortized over its useful life in a systematical and
rational expected realization of economic benefits relative to the intangible asset, or is amortized using the
straight-line method if it is impossible to determine expected realization reliably. The specific years are as
follows:
Item Amortization period (years)
Land use right 30
Patents use right 10
Software 3-5
(2). Accounting policy on internal research and development expenditures
□ Applicable √ N/A
30. Impairment of long-term assets
√ Applicable□ N/A
For long-term equity investments, fixed assets, construction in progress, use right assets, intangible
assets with a finite useful life and other long-term assets, if there’s an indication of impairment at the
balance sheet date, the Company assesses their recoverable amount. Goodwill arising from business
combinations and intangible assets with an infinite useful life are tested for impairment every year
regardless of whether there’s an indication of impairment. Goodwill is tested for impairment together with
the relevant groups of assets or combinations of groups of assets.
If the recoverable amount of a long-term asset is less than its carrying amount, the difference is
measured as impairment loss of the asset and recognized in profit or loss for the current period.
31. Long-term prepaid expenses
√ Applicable□ N/A
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Long-term prepaid expenses are expenses that have already been incurred but should be amortized
over a period of more than one year (excluding one year). Long-term prepaid expenses are stated as the
amount actually incurred and shall be amortized evenly by stages within the benefit period or specified
period. If an item of long-term prepaid expenses will not benefit the subsequent periods, the amortized
value of the item that has not yet been amortized is wholly transferred to profit or loss for the current
period.
32. Contract liabilities
Recognition method for contract liabilities
√ Applicable□ N/A
The Company presents contract assets or contract liabilities in the balance sheet according to the
relationship between the performance of contractual obligations and payment by customers. Contract
assets and contract liabilities under a same contract are presented at the net amount after offsetting each
other.
The obligations of the Company for transferring goods to customers corresponding to considerations
that have been received or receivable are presented as contract liabilities.
33. Employee benefits
(1). Accounting treatment of short-term employee benefits
√ Applicable□ N/A
1. Employee benefits include short-term benefits, post-employment benefits, termination benefits and
other long-term employee benefits.
2. Accounting treatment of short-term employee benefits
The short-term employee benefits actually incurred are recognized as liabilities in the accounting
period during which employee services are rendered, and included in profit or loss for the current period
or the cost of related assets.
(2). Accounting treatment of post-employment benefits
√ Applicable□ N/A
Post-employment benefits are classified into defined contribution plans and defined benefit plans.
(1) In the accounting period during which employee services are rendered, the amount in contribution
as calculated according to the defined contribution plan is recognized as liabilities and included in profit
or loss for the current period or the cost of related assets.
(2) The accounting treatment of a defined benefit plan generally involves the following steps:
1) According to the projected unit credit method, use the unbiased and consistent actuarial
assumptions to estimate demographic variables and financial variables, measure the obligation arising
from the defined benefit plan and determine the period to which the relevant obligation belongs.
Meanwhile, discount the obligation arising from the defined benefit plan, in order to determine the present
value of the defined benefit plan obligation and the current service cost;
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2) If the defined benefit plan has assets, the deficit or surplus resulting after reducing the present
value of the defined benefit plan obligation by the fair value of the defined benefit plan is recognized as a
net liability or asset of the defined benefit plan. If the defined benefit plan has a surplus, the net assets of
the defined benefit plan are measured at the lower of surplus in the defined benefit plan and asset ceiling;
3) At the end of the reporting period, the cost of employee benefits arising from the defined benefit
plan is recorded as service cost, net interest on the net liabilities or net assets of the defined benefit plan,
and changes arising from re-measurement of the net liabilities or net assets of the defined benefit plan,
wherein the service cost and the net interest on the net liabilities or net assets of the defined benefit plan
are included in profit or loss for the current period or the cost of related assets, and the changes arising
from re-measurement of the net liabilities or net assets of the defined benefit plan are included in other
comprehensive income, which will not be reserved to profit or loss in subsequent periods, but may be
transferred within the scope of equity.
(3). Accounting treatment of termination benefits
√ Applicable□ N/A
If dismissal benefits are provided to employees, the liabilities of employee benefits from the dismissal
benefits are recognized at the earlier of the following and are recognized in the profit or loss for the current
period: (1) when the Company can no longer withdraw the offer of termination benefits as a result of
termination of employment or redundancy; or (2) the Company recognizes the restructuring costs or
expenses relating to payment of termination benefits.
(4). Accounting treatment of other long-term employee benefits
√ Applicable□ N/A
Other long-term employee benefits are accounted for in accordance with the provisions applicable to
defined contribution plans if they are qualified as defined contribution plans, otherwise, are accounted for
in accordance with the provisions applicable to defined benefit plans. In order to simplify the accounting
treatment, the total net amount of the cost of employee benefits arising from the defined benefit plans that
is recorded as service cost, net interest on the net liabilities or net assets of other long-term employee
benefits, changes arising from re-measurement of the net liabilities or net assets of other long-term
employee benefits and other components is included in profit or loss for the current period or the cost of
related assets.
34. Lease liabilities
√ Applicable□ N/A
At the commencement date of the lease, the Company recognizes the present value of lease payments
not paid as lease liabilities. The interest rate implicit in the lease is used as the discount rate for calculating
the present value of the lease payments; if the interest rate implicit in the lease cannot be determined, the
incremental borrowing interest rate of the Company is used as the discount rate. The difference between
the lease payments and the present value thereof is considered as unrecognized finance charges; in each
period during the lease term, interest expenses are recognized in the profit or loss for the current period
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according to the discount rate of the present value of recognized lease payments. Variable lease payments
not included in measurement of lease liabilities are recognized in the profit or loss for the current period
when the actually arise.
Where, after the lease inception date, there are changes in the substantial fixed payment, the payables
expected on the basis of the residual value of the guarantee, the index or ratio used for determining the
lease payment, the evaluation results or actual exercising of purchase option, renewal option or lease
termination option, the Company re-measures the lease liability as per the present value of the lease
payment after change, and adjust the carrying amount of the use right assets accordingly. Where the
carrying amount of the use right asset has been reduced to zero, but the lease liability still needs to be
further reduced, the Company includes the residual amount in the current profit or loss.
35. Provisions
√ Applicable□ N/A
1. An obligation arising from any external guarantee, instigation, product quality warranty, onerous
contract or other contingencies is recognized as a provision if it is a present obligation assumed by the
Company, and it is probable that an outflow of resources embodying economic benefits will be required
to settle the obligation, and the amount of the obligation can be reliably measured.
2. The amount recognized as a provision is the best estimate of the consideration required to settle
the present obligation. The carrying amount of provisions is reviewed at the balance sheet date.
36. Share-based payments
√ Applicable□ N/A
1. Categories of share-based payments
Share-based payments include equity-settled share-based payments and cash-settled share-based
payments.
2. Accounting treatment for implementation, modification and termination of share-based payment
plan
(1) Equity-settled share-based payments
Equity-settled share-based payments in exchange for services rendered by employees that can be
executed immediately upon being granted, are measured at the fair value of the equity instruments at the
grant date, and recognized as related costs or expenses with a corresponding adjustment to capital reserve.
At each balance sheet date during the vesting period, equity-settled share-based payments in exchange for
services rendered by employees that cannot be executed until services in the vesting period are completed
or required performance conditions are satisfied, are measured at the fair value of the equity instruments
at the grant date based on the best estimate of exercisable numbers of equity instruments, and recognized
as related costs or expenses with a corresponding adjustment to capital reserve.
For equity-settled share-based payments in exchange for services rendered by other parties, if the fair
value of services from other parties can be measured reliably, they are measured at the fair value of services
from other parties at the date when such services are received. If the fair value of services from other
parties cannot be measured reliably but the fair value of the equity instruments can be measured reliably,
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they are measured at the fair value of the equity instruments at the date when such services are received.
The fair value of the equity instruments are recognized as related costs or expenses, with a corresponding
increase in owners’ equity.
(2) Cash-settled share-based payments
Cash-settled share-based payments in exchange for services rendered by employees that can be
executed immediately upon being granted, are recognized as related costs or expenses based on the fair
value of liabilities assumed by the Company at the grant date, with a corresponding increase in liability.
At each balance sheet date during the vesting period, cash-settled share-based payments in exchange for
services rendered by employees that cannot be executed until services in the vesting period are completed
or required performance conditions are satisfied, are measured at the fair value of liabilities assumed by
the Company based on the best estimate of exercisable conditions, and recognized as related costs or
expenses and relevant liabilities.
(3) Modification and termination of share-based payment plan
If the modification increases the fair value of the equity instruments granted, the Company will
include the incremental fair value of the equity instruments granted in the measurement of the amount
recognized for services received. If the modification increases the number of the equity instruments
granted, the Company will include the fair value of additional equity instruments granted in the
measurement of the amount recognized for services received. If the Company modifies the exercisable
conditions of the share-based payment plan in a manner beneficial to the employee, the Company will
consider the modified exercisable conditions when dealing with exercisable conditions.
If the modification decreases the fair value of the equity instruments granted, the Company will
continue to measure the amount recognized for services received at the fair value of the equity instruments
at the grant date without including the decremental fair value of the equity instruments. If the modification
decreases the number of the equity instruments granted, the Company will treat the decreased number as
the cancelled number of equity instruments granted. If the Company modifies the exercisable conditions
in a manner unbeneficial to the employee, the Company will not consider the modified exercisable
conditions when dealing with exercisable conditions.
If cancellation or settlement of the equity instruments granted occurs (not due to unsatisfaction of
exercisable conditions) during the vesting period, the Company will account for the cancellation or
settlement of the equity instruments granted as an acceleration of vesting, and recognize immediately the
amount that otherwise would have been recognized over the remainder of the vesting period.
37. Preferred shares, perpetual bonds and other financial instruments
□ Applicable √ N/A
38. Revenue
(1). Accounting policies adopted for income recognition and measurement
√ Applicable□ N/A
1. Principles for revenue recognition
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On the commencement date of a contract, the Company evaluates the contract, identifies each
individual performance obligation contained therein and determine whether each individual performance
obligation is performed over time or at a certain point in time.
When meeting one of the following criteria, it belongs to the obligation performed over time,
otherwise it constitutes the obligation performed at a certain point in time: (1) the customer obtains and
consumes the economic benefits generated by the Company’s performance when the Company performs
the contract; (2) the customer can control the products under construction in the process of the Company’s
performance; (3) the products produced in the process of the Company’s performance have irresplaceable
uses, and the Company has the right to collect payment for the cumulative performance that has been
completed up to date throughout the term of the contract.
For the obligation performed over time, the Company recognizes the revenue based on the
performance progress over time. When the performance progress cannot be reasonably determined, and
the costs incurred are expected to be recoverable, revenue is recognized to the extent of costs incurred
until the performance progress can be reasonably determined. For the obligation performed at a certain
point in time, the revenue is recognized at the time point when the customer obtains the control of the
related goods and services. When judging whether the customer has obtained the control of goods, the
Company considers the followings signs: (1) the Company has the current right to receive payment for
such goods, that is, the customer has the current obligation to make payment for such goods; (2) the
Company has transferred the legal ownership of such goods to the customer, that is, the customer has the
legal ownership of such goods; (3) the Company has transferred such goods to the customer physically,
that is, the customer has taken possession of such goods physically; (4) the Company has transferred
material risks and rewards of such goods to the customer, that is, the customer has obtained material risks
and rewards of such goods; (5) the customer has accepted such goods; and (6) other signs that the customer
has obtained control of such goods.
2. Principles for revenue measurement
(1) The Company measures the revenue based on the transaction price allocated to individual
performance obligations. The transaction price is the amount of consideration to which the Company is
entitled arising from the transfer of goods or services to the customer, excluding the amount collected on
behalf of a third party and expected to be returned to the customer.
(2) If there is variable consideration in the contract, the Company determines the best estimate of the
variable consideration based on the expected value or the most likely amount. However, variable
consideration is included in the transaction price if, and to the extent that, it is highly probable that its
inclusion will not result in a significant revenue reversal of accumulatively recognized revenue in the
future when the uncertainty has been subsequently resolved.
(3) If there is a major financing component in the contract, the Company determines the transaction
price based on the presumed amount payable in cash when the customer obtains the control of goods or
services. The difference between the transaction price and contract consideration is amortized using the
effective interest method during the term of the contract. If on the commencement of a contract, the
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Company expects that the customer’s acquisition of control of goods or services is not more than one year
from the customer’s payment therefor, the major financing component in the contract will not be
considered.
(4) If the contract has two or multiple performance obligations, the Company, on the commencement
of a contract, allocates the transaction price to each individual performance obligation in the contract by
reference to relative standalone selling prices of goods promised thereby.
3. Specific methods for revenue recognition
(1) Revenue from sales of goods
The performance obligation concerning sales of goods (primarily dividing into goods sold to the
domestic market and goods exported to overseas markets) by the Company is taken as one satisfied at a
certain point in time for the recognition of revenue.
Goods sold to the domestic market: 1) Under the direct sale model and the distribution model, the
Company recognizes the revenue when the goods sent have been delivered to customers with customers’
receipt given to the Company. For goods sold attached with return conditions, the Company recognizes
the revenue according to the amount of consideration to which it expects to be entitled in exchange for
transferring goods to customers, and recognize the liabilities according to the expected amount to be
returned due to sales return against the revenue; for goods required for installment and inspection after
sales, the Company recognizes the revenue when such goods have been installed and inspected with
customers’ acceptance certificate given to the Company; for goods sold to lower-tier end customers whose
selling profits are shared by the Company, the Company recognizes the revenue when such goods are
delivered to the customers and reconciliation is conducted according to the mutually predetermined price
of the goods, and recognizes the share of the profits when the selling profits of the goods are realized
according to the share statement. 2) Under the commissioned sales mode, the Company recognizes the
revenue when it receives the list of commissioned sales from the customer.
Goods exported to overseas markets: The Company mainly adopts FCA for export of goods. Under
this mode, the Company recognizes revenue when it delivers goods at the designated location with export
customs clearance procedures completed.
(2) Other incomes
Any other performance obligation of the Company is taken as one satisfied over time/at a certain
point in time for the recognition of revenue. For installation services provided by the Company, the
Company recognizes the revenue when it has completed the services and received customers’ acceptance
certificate; for repair and maintenance services provided by the Company, the Company recognizes the
revenue when it has completed the services and received payments; for patent licensing services provided
by the Company, the Company recognizes the revenue when the patent licensing is completed and handed
over; and for technology development services provided by the Company, the Company recognizes the
revenue when it has completed the services or when the agreed time point of service acceptance is reached.
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(2). Description of differences in the accounting policies in revenue recognition due to different
operating modes adopted for the same business type
□ Applicable √ N/A
39. Contract costs
√ Applicable□ N/A
Assets related to contract costs include contract acquisition costs and contract performance costs.
If costs incurred by the Company for acquiring a contract are expected to be recovered, such costs
are recognized as an asset as contract acquisition costs.
The costs incurred by the Company for performing a contract are recognized as an asset of contract
performance costs if they do not fall within the scope of other relevant standards, like inventories, fixed
assets, or intangible assets, and meet all the following conditions:
1. The cost is directly related to a present or expected contract, including direct labor, direct materials,
manufacturing expenses (or similar expenses), costs explicitly to be borne by customers, and other costs
arising from the contract;
2. The cost leads to the increase in resources of the Company for fulfilling its performance obligations
in the future; and
3. The cost is expected to be recovered.
Assets related to contract costs are amortized on the same basis as recognizing incomes from goods
related to assets, and are recognized in the profit or loss for the current period.
If the carrying amount of the assets related to contract costs is greater than the consideration expected
to be acquired by transferring the goods or services related to such assets less the costs expected to be
incurred, the Company makes provision for impairment for the exceeding portion and recognizes
impairment loss of assets. In the event of a change in the factors causing impairment in a prior period, so
that the consideration expected to be acquired by transferring the goods or services related to such assets
less the costs expected to be incurred is greater than the carrying amount of such assets, the provision for
impairment made for such assets is reversed and recognized in the profit or loss for the current period;
provided that the reversed carrying amount of such assets shall not exceed the carrying amount of such
assets at the reversal data on the assumption that no provision for impairment has been made.
40. Government grants
√ Applicable□ N/A
1. Government grants are recognized if (1) the Company meets the conditions attaching to the
government grants; and (2) the Company will receive the government grants. Government grants in the
form of monetary assets are measured at the amount received or receivable. Government grants in the
form of monetary assets are measured at the amount received or receivable. Government grants in the
form of non-monetary assets are measured at fair value, or if their fair value is unavailable, at nominal
amount.
2. Determination and accounting treatment of government grants related to assets
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Government grants related to assets are government grants which are offered for purchasing,
constructing or otherwise acquiring long-term assets as provided by the applicable government documents.
In the absence of such express provision in the applicable government documents, government grants
related to assets are those with a primary condition that the Company should purchase, construct or
otherwise acquire long-term assets. Government grants related to assets are offset against the carrying
amount of the relevant assets or recognized as deferred income. Government grants related to assets
recognized as deferred income shall be included in profit or loss over the service life of the relevant assets
on a reasonable and systemic basis. Government grants measured at nominal amount are directly
recognized in profit or loss for the current period. In case of sale, transfer, retirement or damage of the
relevant assets before the end of intended service life, the balance of the unallocated deferred income is
transferred to profit or loss for the period in which the assets are disposed of.
3. Determination and accounting treatment of government grants related to income
Government grants related to income are government grants other than those related to assets.
Government grants related to both assets and income in which it is difficult to make a distinction between
the portion related to assets and the portion related to income are wholly classified as government grants
related to income. Government grants related to income as compensation for expenses or losses to be
incurred in subsequent periods are recognized as deferred income and in the period for recognizing the
relevant costs, expenses or losses, included in profit or loss for the current period or offset against the
relevant costs. Government grants related to income as compensation for expenses or losses already
incurred are directly included in profit or loss for the current period or offset against the relevant costs.
4. Government grants related to daily operations of the Company are recognized in other income or
offset against the relevant costs and expenses depending on the nature of economic business. Government
grants not related to daily operations of the Company are recognized in non-operating income or expenses.
5. Accounting treatment of policy preferential loans and interest subsidies
(1) If the Ministry of Finance appropriates the interest subsidies to the lending bank, who then grants
the loan to the Company at the policy preferential rate, the loan is stated as the amount actually received,
and the borrowing cost is calculated according to the principal of the loan and the policy preferential rate.
(2) If the Ministry of Finance directly appropriates the interest subsidies to the Company, the interest
subsidies are offset against the borrowing cost.
41. Deferred tax assets and deferred tax liabilities
√ Applicable□ N/A
1. The difference between the tax base of an asset or liability and its carrying amount (or in case of
an item not recognized as asset or liability whose tax base can be determined according to the applicable
tax law, the difference between its tax base and carrying amount) is recognized as a deferred tax asset or
deferred tax liability according to the tax rate applicable to the period in which the asset or liability is
expected to be recovered or settled.
2. Deferred tax assets are recognized to the extent of the amount of income tax payable that will be
available in future periods against which deductible temporary differences are deductible. At the balance
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sheet date, deferred tax assets not recognized in prior periods are recognized if there’s conclusive evidence
that it is probable that sufficient taxable income will be available in future periods against which the
deductible temporary differences are deductible.
3. At the balance sheet date, the carrying amount of deferred tax assets is reviewed and reduced to
the extent that it is no longer probable that sufficient taxable income will be available in future periods to
allow the benefit of the deferred tax assets to be utilized. If it is probable that sufficient taxable income
will be available, the reduced amount is reversed.
4. The income taxes and deferred taxes are included in profit or loss for the current period as income
tax expenses or gains, except the income taxes arising from any: (i) business combination; or (ii)
transaction or event directly recognized in owners’ equity.
42. Leases
(1). Accounting treatment of operating leases
□ Applicable √ N/A
(2). Accounting treatment of finance leases
□ Applicable √ N/A
(3). Method for determination and accounting treatments of lease under the New Lease Standard
√ Applicable□ N/A
1. The Company as the lessee
On the lease inception date, the Company recognizes a lease with a lease term of not more than 12
months and not containing an option as a short-term lease, and recognizes a low-value assets lease for a
lease in which individually leased assets have a low value when they are new. If the Company subleases
or expects to sublease the leased asset, the original lease is not recognized as a low-value assets lease.
For short-term leases and low-value assets leases, the Company recognizes lease payment in the costs
of relevant assets or the profit or loss for the current period by using the straight-line method in each period
during the lease term.
Except for short-term leases and low-value assets leases subject to simplified treatment above, on the
lease inception date, the Company recognizes use right assets and lease liabilities for leases.
(1) Use right assets
Use right assets are initially measured at cost; the cost includes: 1) initial measurement amount of
leased liabilities; 2) lease payments paid on or prior to the commencement of the lease term, net of the
lease incentives (if any) received; 3) initial direct expenses incurred by the lessee; and 4) costs expected
to be incurred by the lessee for dismantling and removing the leased assets, restoring the place of the
leased assets, or restoring the leased assets to the state provided under lease provisions.
The Company depreciates use right assets by using the straight-line method. If there is reasonable
certainty that the lessee will obtain ownership of the leased asset by the end of the lease term, the Company
depreciates the leased asset over its useful life. If there is no reasonable certainty that the lessee will obtain
ownership of the leased asset by the end of the lease term, the Company depreciates the leased asset over
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the shorter of the lease term and its remaining useful life.
(2) Lease liabilities
At the commencement date of the lease, the Company recognizes the present value of lease payments
not paid as lease liabilities. The interest rate implicit in the lease is used as the discount rate for calculating
the present value of the lease payments; if the interest rate implicit in the lease cannot be determined, the
incremental borrowing interest rate of the Company is used as the discount rate. The difference between
the lease payments and the present value thereof is considered as unrecognized finance charges; in each
period during the lease term, interest expenses are recognized in the profit or loss for the current period
according to the discount rate of the present value of recognized lease payments. Variable lease payments
not included in measurement of lease liabilities are recognized in the profit or loss for the current period
when the actually arise.
Where, after the lease inception date, there are changes in the substantial fixed payment, the payables
expected on the basis of the residual value of the guarantee, the index or ratio used for determining the
lease payment, the evaluation results or actual exercising of purchase option, renewal option or lease
termination option, the Company re-measures the lease liability as per the present value of the lease
payment after change, and adjust the carrying amount of the use right assets accordingly. Where the
carrying amount of the use right asset has been reduced to zero, but the lease liability still needs to be
further reduced, the Company includes the residual amount in the current profit or loss.
2. The Company as the lessor
On the lease inception date, the Company classifies a lease in which almost all the risks and rewards
related to the ownership of the leased asset have been substantially transferred as a finance lease, and
recognizes all other leases as operating leases.
(1) Operating lease
In each period during the lease term, the Company recognizes lease payments as rental incomes by
using the straight-line method/units of production method; initial direct expenses incurred are capitalized,
and amortized on the same basis for recognizing lease incomes for recognizing in the profit or loss for
each period. The variable lease payments acquired by the Company that are related to operating leases and
not recognized in lease payments are recognized in the profit or loss for the current period when they
actually occur.
43. Other significant accounting policies and accounting estimates
□ Applicable √ N/A
44. Changes in significant accounting policies and accounting estimates
(1). Changes in significant accounting policies
□ Applicable √ N/A
(2). Changes in significant accounting estimates
□ Applicable √ N/A
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45. Other description
□ Applicable √ N/A
VI. Taxes
1. Major categories of taxes and tax rates
Description of major categories of taxes and tax rates
√ Applicable□ N/A
Category of tax Basis of tax computation Tax rate
VAT payable is the difference of the
output tax calculated based on the
Value-added tax incomes from selling goods and
3%, 6%, 9%, 13%
(VAT) taxable services in accordance with the
Tax Law, less the input tax allowed to
be reduced in the period
City maintenance and Turnover tax payable
7%
construction tax
4%, 8.25%, 8.70%, 8.84%, 15%,
Enterprise income tax Taxable income
16.5%, 20%, 21% and 25%
Education surcharges Turnover tax payable 3%
Local education Turnover tax payable
2%
surcharges
Disclosure of taxpayers with different rates of enterprise income tax:
√ Applicable□ N/A
Taxpayer Rate of enterprise income tax (%)
Appotronics Corporation Limited 15%
Fengmi (Beijing) Technology Co., Ltd. 15%
Appotronics Hong Kong Limited 8.25%, 16.5%
Beijing Orient Appotronics Technology Co., Ltd. 20%
JoveAI Innovation, Inc. 8.70%、8.84%、21%
Appotronics USA, Inc. 21%
FORMOVIE TECHNOLOGY INC 21%
JoveAI Limited Tax exemption
WEMAX LLC 21%
Shenzhen Appotronics Display Device Co., Ltd. 20%
Appotronics Technology (Changzhou) Co., Ltd. 20%
Qingda Appotronics (Xiamen) Technology Co., Ltd. 20%
Shenzhen Appotronics Home Line Technology Co., Ltd. 20%
Shenzhen Appotronics Laser Technology Co., Ltd. 20%
Shenzhen Appotronics Xiaoming Technology Co., Ltd. 20%
JoveAI Asia Company Limited 20%
Formovie Limited 8.25%, 16.5%
Chongqing Ewei Ecommerce Co., Ltd. 20%
Chongqing Guangbo Ecommerce Co., Ltd. 20%
Shenzhen Orange Juice Energy Technology Co., Ltd. 20%
Tianjin Bonian Film Partnership (LP) Tax exemption
CINEAPPO Laser Cinema Technology (Beijing) Co., Ltd. 15%
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WEMAX INC 4%, 21%
Hongkong Orange Juice Energy Technology Co., Limited 8.25%, 16.5%
Other taxpayers except above 25%
Note:
1. Appotronics Hong Kong Limited, Formovie Limited and Hongkong Orange Juice Energy
Technology Co., Limited were incorporated in Hong Kong. One of related entities in Hong Kong can
apply the two-level income tax system, namely, applying the tax rate of 8.25% for the first HKD 2 million
taxable income and 16.5% for the remaining taxable income.
2. JoveAI Limited, as domiciled in the Cayman Islands, is exempt from enterprise income tax.
3. Appotronics USA, Inc., as domiciled in the United States, applies the federal enterprise income
tax rate of 21%.
4. JoveAI Innovation, Inc., as domiciled in the United States, applies the federal enterprise income
tax rate of 21%, the California state enterprise income tax rate of 8.84%, and the Delaware state enterprise
income tax rate of 8.70%.
5. FORMOVIE TECHNOLOGY INC, as domiciled in the United States, applies the federal
enterprise income tax rate of 21%.
6. JoveAI Asia Company Limited, as domiciled in Vietnam, applies the enterprise income tax rate of
20%.
7. WEMAX LLC, as domiciled in the United States, applies the federal enterprise income tax rate of
21%.
8. Wemax Inc, as domiciled in the United States, applies the federal enterprise income tax rate of
21%, and the New York state enterprise income tax rate of 4%.
2. Tax incentives
√ Applicable□ N/A
1. Enterprise income tax
(1) On December 9, 2019, the Company obtained the High-tech Enterprise Certificate (Certificate
No.: GR201944204257) jointly issued by Shenzhen Science and Technology Innovation Commission,
Shenzhen Finance Bureau and Shenzhen Tax Service of State Taxation Administration with a valid term
of three years. Therefore, the Company paid the enterprise income tax at a rate of 15% in 2022.
(2) On December 17, 2021, Fengmi (Beijing) Technology Co., Ltd. obtained the High-tech Enterprise
Certificate (Certificate No.: GR202111004001) jointly issued by Beijing Municipal Science and
Technology Commission, Beijing Finance Bureau and Beijing Tax Service of State Taxation
Administration with a valid term of three years. Therefore, the Company paid the enterprise income tax at
a rate of 15% in 2022.
(3) On October 15, 2019, CINEAPPO Laser Cinema Technology (Beijing) Co., Ltd. obtained the
High-tech Enterprise Certificate (Certificate No.: GR201911002720) jointly issued by Beijing Municipal
Science and Technology Commission, Beijing Finance Bureau and Beijing Tax Service of State Taxation
Administration with a valid term of three years. Therefore, the Company paid the enterprise income tax at
a rate of 15% in 2022.
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(4) In accordance with the Notice of the Ministry of Finance and the State Taxation Administration
on Implementing the Inclusive Tax Deduction and Exemption Policies for Micro and Small Enterprises
(Cai Shui [2019] No. 13), and the Announcement of the Ministry of Finance and the State Taxation
Administration on Implementing Preferential Income Tax Policies for Micro and Small Enterprises and
Individually-owned Businesses (Announcement No. 12 in 2021 of the Ministry of Finance and the State
Taxation Administration), the annual taxable income of a small low-profit enterprise that is not more than
RMB 1 million shall be calculated at a discount of 12.5%, namely, for which the applicable enterprise
income tax rate is 20%; for the annual taxable income more than RMB 1 million but no more than RMB
3 million, the taxable income shall be calculated at a discount of 50%, namely, for which the applicable
enterprise income tax rate is 20%. The following companies are qualified for enjoying such tax incentives:
Beijing Orient Appotronics Technology Co., Ltd., Shenzhen Appotronics Display Device Co., Ltd.,
Appotronics Technology (Changzhou) Co., Ltd., Qingda Appotronics (Xiamen) Technology Co., Ltd.,
Shenzhen Appotronics Home Line Technology Co., Ltd., Shenzhen Appotronics Laser Technology Co.,
Ltd., Shenzhen City Appotronics Xiaoming Technology Co., Ltd., Chongqing Ewei Ecommerce Co., Ltd.,
Chongqing Guangbo Ecommerce Co., Ltd., and Shenzhen Orange Juice Energy Technology Co., Ltd.
2. Value-added tax (VAT)
In accordance with the Notice of the Ministry of Finance and the State Administration of Taxation
on Value-added Tax Policies for Software Products (Cai Shui [2011] No. 100), for self-developed and
produced software products sold by general VAT taxpayers, the tax-refund-upon-collection policy is
applicable to the part of their actual VAT burden in excess of 3% after the VAT has been collected at a
tax rate of 17%. The Company, its subsidiary Fengmi (Beijing) Technology Co., Ltd. and Shenzhen
Appotronics Software Technology Co., Ltd. are qualified for enjoying such tax incentives.
3. Others
□ Applicable √ N/A
VII. Notes to items in the consolidated financial statements
1. Cash and bank balances
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Cash on hand 5,624.61 5,680.24
Bank deposits 954,395,647.47 924,308,952.81
Other monetary funds 90,990,742.22 33,415,198.10
Total 1,045,392,014.30 957,729,831.15
Including: Total oversea deposits 258,228,700.86 71,132,556.44
Other description:
In other monetary funds, an amount of RMB 50,315,805.66 is restricted for being used as margins;
while in bank deposits, an amount of RMB 40,000,000.00 as 3-year time deposits, an amount of RMB
3,293,156.61 as pledged time deposits and an amount of RMB 302,062.50 as undue interest are restricted
for being used.
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2. Held-for-trading financial assets
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Financial assets at fair value through profit or loss 493,566,000.00 417,200,000.00
Including:
Equity instrument investment 44,566,000.00 46,200,000.00
Structural deposits 449,000,000.00 371,000,000.00
Total 493,566,000.00 417,200,000.00
Other description:
□ Applicable √ N/A
3. Derivative financial assets
□ Applicable √ N/A
4. Notes receivable
(1). Categories of notes receivable
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Project Closing balance Opening balance
Bank acceptances 798,660.00 4,020,000.00
Commercial acceptances 3,351,604.73 1,236,603.03
Total 4,150,264.73 5,256,603.03
(2). Notes receivable pledged by the Company at the end of the period
□ Applicable √ N/A
(3). Notes receivable which are undue as at the balance sheet date but endorsed or discounted by
the Company at the end of the period
□ Applicable √ N/A
(4). Notes transferred to accounts receivable due to drawer’s failure in cashing at the end of the
period
□ Applicable √ N/A
(5). Disclosure by categories of provision for bad debts
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Closing balance Opening balance
Category Provision for bad Carrying Provision for bad Carrying
Carrying amount Carrying amount
debts amount debts amount
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Percentage Percentage
Percentage of Percentage of
Amount Amount Amount Amount
(%) provision (%) provision
(%) (%)
Provision
for bad
debts made
individually
Including:
Provision
for bad 4,
100.00 176,400.25 4.08 4,150,264.73 5,321,687.40 100.00 65,084.37 1.22 5,256,603.03
debts made 326,664.98
by group
Including:
Bank
acceptance 798,660.00 18.46 798,660.00 4,020,000.00 75.54 4,020,000.00
bills
Commercial
acceptance 3,528,004.98 81.54 176,400.25 5.00 3,351,604.73 1,301,687.40 24.46 65,084.37 5.00 1,236,603.03
bills
Total 4,326,664.98 / 176,400.25 / 4,150,264.73 5,321,687.40 / 65,084.37 / 5,256,603.03
Provision for bad debts made individually:
□ Applicable √ N/A
Provision for bad debts made by group:
√ Applicable□ N/A
Item by group: Commercial acceptance bills and bank acceptance bills
Unit: Yuan Currency: RMB
Closing balance
Name Percentage of provision
Notes receivable Provision for bad debts
(%)
Group of bank
798,660.00
acceptance bills
Commercial
acceptance bills 3,528,004.98 176,400.25 5.00
group
Total 4,326,664.98 176,400.25 4.08
Recognition criterion to make the Provision for bad debts by group and explanation
□ Applicable √ N/A
If a provision for bad debts of accounts receivable is made in accordance with the general model of
ECL, please disclose relevant information subject to the disclosure of the provision for bad debts for
other receivables:
□ Applicable √ N/A
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(6). Provision for bad debts
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Changes for the current period
Opening Closing
Category Recovery or Write off or
balance Provision balance
reversal cancellation
Commercial
65,084.37 111,315.88 176,400.25
acceptance bills
Total 65,084.37 111,315.88 176,400.25
Including significant amounts recovered or reversed from the current provision for bad debts:
□ Applicable √ N/A
Other description:
None
(7). Notes receivable actually canceled in the current period
□ Applicable √ N/A
Other description:
□ Applicable √ N/A
5. Accounts receivable
(1). Disclosure by aging
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Aging Closing balance of carrying amount
Within 1 year
Including: Subitems within 1 year
Sub-total of items within 1 year 374,415,347.02
1 to 2 years 7,248,639.32
2 to 3 years 235,957.26
Over 3 years 1,287,951.19
Total 383,187,894.79
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(2). Disclosure by categories of provision for bad debts
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Closing balance Opening balance
Carrying amount Provision for bad debts Carrying amount Provision for bad debts
Percentage Percentage
Category Carrying Carrying
Percentage of Percentage of
Amount Amount amount Amount Amount amount
(%) provision (%) provision
(%) (%)
Provision for bad
debts made 852,162.42 0.22 852,162.42 100.00 2,117,500.23 0.50 1,279,675.64 60.43 837,824.59
individually
Including:
Provision for bad 852,162.42 0.22 852,162.42 100.00 2,117,500.23 0.50 1,279,675.64 60.43 837,824.59
debts made
individually
Provision for bad
382,335,732.37 99.78 21,875,078.67 5.72 360,460,653.70 425,509,438.81 99.50 23,212,791.53 5.46 402,296,647.28
debts made by group
Including:
Accounts receivable
for which the
provision for bad 382,335,732.37 99.78 21,875,078.67 5.72 360,460,653.70 425,509,438.81 99.50 23,212,791.53 5.46 402,296,647.28
debts is made by
aging group
Total 383,187,894.79 / 22,727,241.09 / 360,460,653.70 427,626,939.04 / 24,492,467.17 / 403,134,471.87
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Provision for bad debts made individually:
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Closing balance
Provision
Name Percentage of
Carrying amount for bad Reason for provision
provision (%)
debts
Legal 782,311.37 782,311.37 100.00 The amounts are expected to
person 1 be unrecoverable
Legal 69,851.05 69,851.05 100.00 The amounts are expected to
person 2 be unrecoverable
Total 852,162.42 852,162.42 100.00 /
Explanation about provision for bad debts made individually:
□ Applicable √ N/A
Provision for bad debts made by group:
√ Applicable□ N/A
Item by group: Accounts receivable for which the provision for bad debts is made by aging group
Unit: Yuan Currency: RMB
Closing balance
Name Percentage of provision
Accounts receivable Provision for bad debts
(%)
Within 1 year 373,669,035.65 18,683,451.78 5.00
1-2 years 7,142,788.27 1,785,697.07 25.00
2-3 years 235,957.26 117,978.63 50.00
Over 3 years 1,287,951.19 1,287,951.19 100.00
Total 382,335,732.37 21,875,078.67 5.72
Recognition criterion to make the provision for bad debts by group and explanation:
□ Applicable √ N/A
If a provision for bad debts of accounts receivable is made in accordance with the general model of ECL,
please disclose relevant information subject to the disclosure of the provision for bad debts for other
receivables:
□ Applicable √ N/A
(3). Provision for bad debts
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Changes for the current period
Opening Recovery Closing
Category Write off or Other
balance Provision or balance
cancellation changes
reversal
Provision
for bad 1,279,675.64 -55,513.22 372,000.00 852,162.42
debts made
130 / 225
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individually
Provision
for bad -
23,212,791.53 3,450.00 21,875,078.67
debts made 1,334,262.86
by group
-
Total 24,492,467.17 375,450.00 22,727,241.09
1,389,776.08
Including significant amounts recovered or reversed from the current provision for bad debts:
□ Applicable √ N/A
(4). Accounts receivable actually canceled in the current period
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Cancellation amount
Accounts receivable actually canceled 375,450.00
In which significant amounts canceled are described as below:
□ Applicable √ N/A
Description of accounts receivable cancellation:
□ Applicable √ N/A
(5). Top five closing balances of accounts receivable categorized by debtors
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Proportion to the total
Closing balance of
Entity Closing balance closing balance of
provision for bad debts
accounts receivable (%)
Customer 1 116,359,517.65 30.37 5,817,975.88
Customer 2 45,842,962.06 11.96 2,292,148.10
Customer 3 36,728,857.51 9.59 1,836,442.88
Customer 4 33,135,753.04 8.65 1,711,165.15
Customer 5 22,392,637.75 5.84 1,119,631.89
Total 254,459,728.01 66.41 12,777,363.90
(6). Accounts receivable derecognized due to transfer of financial assets
□ Applicable √ N/A
(7). Assets and liabilities arising from transfer of accounts receivable and continued involvement
□ Applicable √ N/A
Other description:
□ Applicable √ N/A
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6. Receivables financing
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Bank acceptance bills 3,289,265.10 244,860.00
Total 3,289,265.10 244,860.00
Changes in amount and fair value of receivables financing:
□ Applicable √ N/A
If a provision for bad debts of accounts receivable is made in accordance with the general model of ECL,
please disclose relevant information subject to the disclosure of the provision for bad debts for other
receivables:
□ Applicable √ N/A
Other description:
□ Applicable √ N/A
7. Prepayments
(1). Disclosure of prepayments by aging
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Closing balance Opening balance
Aging
Amount Percentage (%) Amount Percentage (%)
Within 1 year 51,598,219.53 82.14 90,997,714.13 92.74
1 to 2 years 10,747,157.53 17.11 7,119,256.70 7.26
2 to 3 years 471,791.99 0.75
Over 3 years
Total 62,817,169.05 100.00 98,116,970.83 100.00
Reasons for overdue settlement of prepayments with significant amounts aged more than 1 year:
Entity Closing balance Reasons for no settlement
Advance payment has been made for high-
Supplier 2 6,040,260.00
end lasers, which have not been produced
(2). Top five closing balances of prepayments categorized by receivers
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Proportion to the balance of
Entity Closing balance
prepayments (%)
Supplier 1 22,710,986.82 36.15%
Supplier 2 6,040,260.00 9.62%
Supplier 3 3,259,084.05 5.19%
Supplier 4 2,894,278.45 4.61%
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Supplier 5 2,331,689.44 3.71%
Sub-total 37,236,298.76 59.28%
Other description
□ Applicable √ N/A
8. Other receivables
Presented by items
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Interest receivable
Dividends receivable 13,288,572.00 12,623,886.00
Other receivables 19,332,477.15 17,848,709.66
Total 32,621,049.15 30,472,595.66
Other description:
□ Applicable √ N/A
Interest receivable
(1). Categories of interest receivable
□ Applicable √ N/A
(2). Significant interests overdue
□ Applicable √ N/A
(3). Provision for bad debts
□ Applicable √ N/A
Other description:
□ Applicable √ N/A
(1). Dividensd receivable
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Project (or investee) Closing balance Opening balance
GDC Technology Limited (BVI) 13,288,572.00 12,623,886.00
Total 13,288,572.00 12,623,886.00
(2). Dividends receivable with significant amounts aged more than 1 year
□ Applicable √ N/A
(3). Provision for bad debts
□ Applicable √ N/A
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Other description:
□ Applicable √ N/A
Other receivables
(4). Disclosure by aging
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Aging Closing balance of carrying amount
Within 1 year
Including: Subitems within 1 year
Sub-total of items within 1 year 15,521,199.91
1 to 2 years 1,099,493.27
2 to 3 years 3,687,618.00
Over 3 years
Total 20,308,311.18
Categories by the nature of other receivables
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Closing balance of carrying Opening balance of carrying
Nature of receivables
amount amount
Deposits/margins/petty cash 10,074,155.37 9,664,667.87
Withholding 791,629.13 727,191.75
Temporary receivables 1,388,846.68 735,913.53
Indemnity receivable 8,053,680.00 7,650,840.00
Total 20,308,311.18 18,778,613.15
(5). Provision for bad debts
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Stage I Stage II Stage III
12-month Lifetime ECL Lifetime ECL
Provision for bad debts Total
ECL in the (without credit (with credit
future impairment) impairment)
Balance as at January 1, 2022 895,737.89 34,165.60 929,903.49
Balance as at January 1, 2022
in the current period
--transferred to Stage II
--transferred to Stage III
--reversed to Stage II
--reversed to Stage I
Provision 80,096.15 -34,165.60 45,930.55
Reversal
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Write-off
Cancellation
Other changes
Balance as at June 30, 2022 975,834.04 975,834.04
Description of significant changes in the balance of other receivables with changed provisions for losses in
the current period:
□ Applicable √ N/A
Basis for recognizing the amount of provision for bad debts and evaluating whether the credit risk of
financial instruments has been increased significantly in the current period:
□ Applicable √ N/A
(6). Provision for bad debts
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Changes for the current period
Recovery Closing
Category Opening balance Write off or Other
Provision or balance
cancellation changes
reversal
Provision for
bad debts
929,903.49 45,930.55 975,834.04
made by
group
Total 929,903.49 45,930.55 975,834.04
Including significant amounts recovered or reversed from the current provision for bad debts:
□ Applicable √ N/A
(7). Other receivables actually canceled in the current period
□ Applicable √ N/A
(8). Top five closing balances of other receivables categorized by debtors
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Proportion
Provision
to the
for bad
Nature of other Closing balance of
Entity Aging debts
receivables balance other
Closing
receivables
balance
(%)
Compensation Within 1
Top 1 8,053,680.00 39.67% 402,684.00
receivable year
Deposits/margins/petty Over 3
Top 2 3,574,618.00 17.61% 178,730.90
cash years
2-3 years,
Deposits/margins/petty
Top 3 1,257,075.20 over 3 6.19% 62,853.76
cash
years
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Within 1
Deposits/margins/petty
Top 4 800,000.00year, 1-2 3.94% 40,000.00
cash
years
Within 1
Deposits/margins/petty year, 1-2
Top 5 756,267.64 3.72% 37,813.38
cash years, 2-3
years
Total / 14,441,640.84 / 71.11% 722,082.04
(9). Accounts receivable involving government grants
□ Applicable √ N/A
(10). Other receivables derecognized due to transfer of financial assets
□ Applicable √ N/A
(11). Assets and liabilities arising from transfer of other receivables and continued involvement
□ Applicable √ N/A
Other description:
□ Applicable √ N/A
9. Inventories
(1). Categories of inventories
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Closing balance Opening balance
Provision for Provision for
decline in value of Gross decline in value of
Item Carrying Carrying Carrying
inventories/impair carrying inventories/impair
amount amount amount
ment of contract amount ment of contract
performance cost performance cost
Raw 506,668,884 482,422,897 493,448,593 472,365,168
24,245,986.64 21,083,424.30
materials .62 .98 .04 .74
Work in 8,826,860.0 8,462,399.6 30,541,893. 28,394,582.
364,460.32 2,147,311.13
progress 1 9 32 19
Goods on 292,483,208 277,036,349 229,438,709 216,075,816
15,446,858.33 13,362,893.39
hand .03 .70 .58 .19
Goods
17,108,752. 15,501,652. 43,433,678. 41,781,185.
upon 1,607,100.04 1,652,492.43
70 66 08 65
delivery
Materials
for
10,784,375. 10,375,601. 4,492,945.0 4,470,414.7
consigned 408,773.77 22,530.31
08 31 1 0
processin
g
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Contract
7,263,873.3 6,533,965.5
performan 38,053.10 38,053.10 729,907.80
3 3
ce cost
835,910,133 793,836,954 808,619,692 769,621,133
Total 42,073,179.10 38,998,559.36
.54 .44 .36 .00
(2). Provision for decline in value of inventories and impairment of contract performance cost
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Increase Decrease
Opening Closing
Item Reversal or Other
balance Provision Others balance
write-off s
Raw materials 21,083,424.30 9,422,857.56 6,260,295.22 24,245,986.64
Work in
2,147,311.13 104,143.42 1,886,994.23 364,460.32
progress
Goods on hand 13,362,893.39 12,777,635.03 10,693,670.09 15,446,858.33
Goods upon
1,652,492.43 45,392.39 1,607,100.04
delivery
Materials for
consigned 22,530.31 408,310.07 22,066.61 408,773.77
processing
Contract
performance 729,907.80 729,907.80
cost
Total 38,998,559.36 22,712,946.08 19,638,326.34 42,073,179.10
Specify reasons for specific determination basis of net realizable value, and reversal or write-off of
the provision for decline in value of inventories
Reason for
Reason for
reversal to the
reversal to the
provisions for
Specific basis for determining the net realizable provisions for
Item loss on
value loss on
inventories in
inventories in the
the current
current period
period
The Company
For the has
inventories of consumed/sold
The net realizable value of raw materials is
which a provision the inventories
determined as the historical average selling price or
for decline in for which a
Raw actual average selling price of finished goods in the
value has been provision for
materials ordinary course of business less the estimated costs
made in prior decline in value
of completion, and the estimated costs necessary to
period, their net has been made at
make the sale and relevant taxes
realizable values the beginning of
have increased the current
period
137 / 225
2022 Semiannual Report
Reason for
Reason for
reversal to the
reversal to the
provisions for
Specific basis for determining the net realizable provisions for
Item loss on
value loss on
inventories in
inventories in the
the current
current period
period
The Company
has consumed
The net realizable value of work in progress is the inventories
determined as the historical average selling price or for which a
Work in actual average selling price of finished goods in the provision for
No reversal
progress ordinary course of business less the estimated costs decline in value
of completion, and the estimated costs necessary to has been made at
make the sale and relevant taxes the beginning of
the current
period
The Company
For the has
inventories of consumed/sold
For inventories directly used for sale, the net which a provision the inventories
realizable value is determined as the historical for decline in for which a
Goods on
average selling price or actual average selling price value has been provision for
hand
less the estimated costs necessary to make the sale made in prior decline in value
and relevant taxes period, their net has been made at
realizable values the beginning of
have increased the current
period
The Company
has consumed
The net realizable value is determined as the the inventories
Materials historical average selling price or actual average for which a
for selling price of finished goods in the ordinary provision for
No reversal
consigned course of business less the estimated costs of decline in value
processing completion, and the estimated costs necessary to has been made at
make the sale and relevant taxes the beginning of
the current
period
Contract performance cost
Provision for or
write-off of
Opening Closing
Item Increase Amortization impairment
balance balance
made in the
current period
Entrusted
1,934,228.95 1,292,027.89 3,918,111.54 -729,907.80 38,053.10
development
Overseas
4,599,736.58 4,599,736.58
freight
138 / 225
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Provision for or
write-off of
Opening Closing
Item Increase Amortization impairment
balance balance
made in the
current period
Sub-total 6,533,965.53 1,292,027.89 8,517,848.12 -729,907.80 38,053.10
(3). Description of capitalized amount of borrowing costs included in the closing balance of
inventories
□ Applicable √ N/A
(4). Description of amortization of contract performance cost during the period
□ Applicable √ N/A
Other description:
□ Applicable √ N/A
10. Contract assets
(1). Description of contract assets
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Closing balance Opening balance
Gross
Item Provision for Carrying Gross carrying Provision for Carrying
carrying
impairment amount amount impairment amount
amount
Warranty
security 1,187,480.38 279,647.39 907,832.99 292,607.50 198,551.88 94,055.62
receivable
Goods payment 3,237,477.43 1,489,757.29 1,747,720.14 5,342,438.43 1,532,634.82 3,809,803.61
Total 4,424,957.81 1,769,404.68 2,655,553.13 5,635,045.93 1,731,186.70 3,903,859.23
(2). Amount and reasons of major changes in the carrying amount during the reporting period
□ Applicable √ N/A
(3). Description of provision for impairment made on contract assets during the period
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Write-
Item Provision Reversal off/cancellation Reason
in the period
Provision for
impairment made by 38,217.99
group
Total 38,217.99 /
139 / 225
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If a provision for bad debts of accounts receivable is made in accordance with the general model of ECL,
please disclose relevant information subject to the disclosure of the provision for bad debts for other
receivables:
□ Applicable √ N/A
Other description:
□ Applicable √ N/A
11. Held-for-sale assets
□ Applicable √ N/A
12. Non-current assets due within one year
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Debt investments due within one
year
Other debt investments due within
one year
Long-term receivables due within
3,951,623.81 3,473,049.18
one year
Total 3,951,623.81 3,473,049.18
Debt investments and other debt investments with significant amounts at the end of the period
□ Applicable √ N/A
Other description:
Closing balance Opening balance
Item Gross Provision Gross Provision
Carrying Carrying
carrying for carrying for
amount amount
amount impairment amount impairment
Long-term
receivables 5,018,773.8 1,067,150.0 3,951,623.8 4,520,449.1 1,047,400.0
3,473,049.18
due within 1 0 1 8 0
one year
5,018,773.8 1,067,150.0 3,951,623.8 4,520,449.1 1,047,400.0
Total 3,473,049.18
1 0 1 8 0
13. Other current assets
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Cost of returned goods receivable 484,962.82 503,062.91
Input VAT to be deducted 70,486,385.97 52,258,757.92
140 / 225
2022 Semiannual Report
Prepaid income tax 2,013.15
Total 70,973,361.94 52,761,820.83
Other description:
None
14. Debt investments
(1). Description of debt investments
□ Applicable √ N/A
(2). Debt investments with significant amounts at the end of the period
□ Applicable √ N/A
(3). Description of provision for impairment
□ Applicable √ N/A
15. Other debt investments
(1). Description of other debt investments
□ Applicable √ N/A
(2). Other debt investments with significant amounts at the end of the period
□ Applicable √ N/A
(3). Description of provision for impairment
□ Applicable √ N/A
Other description:
□ Applicable √ N/A
16. Long-term receivables
(1) Description of long-term receivables
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Closing balance Opening balance Range
Gross Gross of
Item Provision for Carrying Provision for Carrying
carrying carrying discount
bad debts amount bad debts amount
amount amount rate
Financing
lease
payment
Including:
Financing
income not
realized
141 / 225
2022 Semiannual Report
Goods sold
on
7,054,000.00 1,352,700.00 5,701,300.00 7,528,000.00 1,376,400.00 6,151,600.00
installment
payment
Labor
service by
installment
receivable
Less:
Financing
-216,981.48 -216,981.48 -358,047.26 -358,047.26
income not
realized
Total 6,837,018.52 1,352,700.00 5,484,318.52 7,169,952.74 1,376,400.00 5,793,552.74 /
(2) Provision for bad debts
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Stage I Stage II Stage III
Provision for bad Lifetime ECL
12-month ECL Lifetime ECL (with Total
debts (without credit
in the future credit impairment)
impairment)
Balance as at
1,376,400.00 1,376,400.00
January 1, 2022
Balance as at
January 1, 2022 in
the current period
--transferred to
Stage II
--transferred to
Stage III
--reversed to Stage
II
--reversed to Stage
I
Provision
Reversal 23,700.00 23,700.00
Write-off
Cancellation
Other changes
Balance as at June
1,352,700.00 1,352,700.00
30, 2022
Description of significant changes in the balance of long-term receivables with changed provisions for
losses in the current period:
□ Applicable √ N/A
Basis for recognizing the amount of provision for bad debts and evaluating whether the credit risk of
142 / 225
2022 Semiannual Report
financial instruments has been increased significantly in the current period:
□ Applicable √ N/A
(3) Long-term receivables derecognized due to transfer of financial assets
□ Applicable √ N/A
(4) Assets and liabilities arising from transfer of long-term receivables and continued involvement
□ Applicable √ N/A
Other description:
□ Applicable √ N/A
143 / 225
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17. Long-term equity investments
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Changes for the current period Closing
Investment Adjustment Other Declared balance of
Opening Provision Closing
Investees Additional Decreased profit or loss in other equity cash provision
balance for Others balance
investment investment under equity comprehensiv change dividends for
impairment
method e income s or profits impairment
I. Joint
venture
Sub-total
II. Associates
Cinionic 127,552,98 0.00
126,924,427.40 4,164,020.29 -3,535,462.88
Limited 4.81
GDC 8,853,235.49 159,724,538
Technology .60
166,676,657.87 -9,474,040.94 -6,331,313.82
Limited
(BVI)
127,552,98 8,853,235.49 159,724,538
Sub-total 293,601,085.27 -5,310,020.65 -9,866,776.70
4.81 .60
127,552,98 8,853,235.49 159,724,538
Total 293,601,085.27 -5,310,020.65 -9,866,776.70
4.81 .60
Other description
None
144 / 225
2022 Semiannual Report
18. Other equity instrument investments
(1). Description of other equity instrument investments
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Shen Zhen Timewaying Technology 7,075,419.38 7,075,419.38
Co., Ltd.
Shenzhen Bevix Technology Co., Ltd.
Total 7,075,419.38 7,075,419.38
(2). Description of equity investments not held for trading
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Reasons for
Reasons for
Dividends Amounts to designating as
transferring to
income retained financial
retained
recognized Accumulated Accumulated earnings from assets at fair
Item earnings from
for the gains losses other value through
other
current comprehensive other
comprehensive
period income comprehensive
income
income
Shen Zhen Subject to the
Timewaying management’s
Technology intention of
Co., Ltd. holding
Shenzhen Subject to the
Bevix management’s
Technology intention of
Co., Ltd. holding
Other description:
√ Applicable□ N/A
The Company’s equity investments in Shen Zhen Timewaying Technology Co., Ltd. are made mainly
for promoting business cooperation in the future, but not for trading, which are accordingly designated as
equity investments at fair value through other comprehensive income.
19. Other non-current financial assets
□ Applicable √ N/A
20. Investment properties
Measurement mode of investment properties
N/A
145 / 225
2022 Semiannual Report
21. Fixed assets
Presented by items
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Fixed assets 454,010,462.80 470,410,450.18
Disposal of fixed assets
Total 454,010,462.80 470,410,450.18
Other description:
None
Fixed assets
(1). Description of fixed assets
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Electronic Operating
Machinery and Transportation
Item equipment and leased Total
equipment equipment
others equipment
I. Costs:
1. Opening
129,590,613.35 1,171,400.05 49,253,347.48 650,822,359.27 830,837,720.15
balance
2. Increase 16,288,129.09 5,729,928.96 30,812,228.88 52,830,286.93
(1) Purchase 16,052,855.85 5,596,524.59 21,649,380.44
(2) Transfer
from construction in 30,812,228.88 30,812,228.88
progress
(3) Transfer
from inventories
(4) Currency
235,273.24 133,404.37 368,677.61
movement
3. Decrease 6,341,057.20 1,155,472.58 3,036,214.94 10,532,744.72
(1) Disposal or
6,321,588.18 1,155,472.58 843,589.81 8,320,650.57
retirement
(2) Transfer to
19,469.02 2,192,625.13 2,212,094.15
inventories
4. Closing balance 139,537,685.24 1,171,400.05 53,827,803.86 678,598,373.21 873,135,262.36
II. Accumulated
depreciation
1. Opening
56,949,056.23 593,333.19 23,152,360.80 279,402,867.35 360,097,617.57
balance
2. Increase 11,474,965.21 82,393.80 4,207,299.80 45,320,797.10 61,085,455.91
(1) Provision 11,404,187.19 82,393.80 4,149,252.93 45,320,797.10 60,956,631.02
(2) Currency
70,778.02 58,046.87 128,824.89
movement
3. Decrease 1,120,191.17 392,778.04 1,246,944.65 2,759,913.86
146 / 225
2022 Semiannual Report
(1) Disposal or
1,118,649.87 392,778.04 433,003.33 1,944,431.24
retirement
(2) Transfer to
1,541.30 813,941.32 815,482.62
inventories
4. Closing balance 67,303,830.27 675,726.99 26,966,882.56 323,476,719.80 418,423,159.62
III. Provision for
impairment
1. Opening
329,652.40 329,652.40
balance
2. Increase 405,917.49 405,917.49
(1) Provision 405,917.49 405,917.49
3. Decrease 33,929.95 33,929.95
(1) Disposal or
33,929.95 33,929.95
retirement
4. Closing balance 701,639.94 701,639.94
IV. Carrying amount
1. Closing balance 72,233,854.97 495,673.06 26,860,921.30 354,420,013.47 454,010,462.80
2. Opening
72,641,557.12 578,066.86 26,100,986.68 371,089,839.52 470,410,450.18
balance
(2). Temporarily idle fixed assets
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Provision
Accumulated
Item Costs for Carrying amount Remark
depreciation
impairment
Operating
leased 44,230,318.99 25,441,727.85 608,794.01 18,179,797.12
equipment
(3). Fixed assets acquired under finance lease
□ Applicable √ N/A
(4). Fixed assets leased out under operating lease
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance of carrying amount
Operating leased equipment 354,420,013.47
(5). Fixed assets of which certificates of title have not been obtained
□ Applicable √ N/A
Other description:
□ Applicable √ N/A
147 / 225
2022 Semiannual Report
Disposal of fixed assets
□ Applicable √ N/A
22. Construction in progress
Presented by items
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Construction in progress 184,837,501.44 148,620,511.35
Materials for construction
Total 184,837,501.44 148,620,511.35
Other description:
None
Construction in progress
(1). Description of construction in progress
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Closing balance Opening balance
Provision Provision
Item Gross carrying Carrying Gross carrying Carrying
for for
amount amount amount amount
impairment impairment
Headquarter
175,877,819.68 175,877,819.68 133,111,026.64 133,111,026.64
buildings
Decoration
18,265.97 18,265.97
construction
Light
sources to 8,959,681.76 8,959,681.76 15,491,218.74 15,491,218.74
be leased
Total 184,837,501.44 184,837,501.44 148,620,511.35 148,620,511.35
148 / 225
2022 Semiannual Report
(2). Changes in significant constructions in progress for the current period
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Amount
injected
Amount of Including: Interest
Amount as a Source
Opening Other Closing Construction accumulated Capitalized capitalization
Item Budget amount Increase transferred to proportion of
balance decreases balance progress capitalized interest for rate for the
fixed assets of budget funds
interest the period period (%)
amount
(%)
Self-
Headquarter
534,635,200.00 133,111,026.64 42,766,793.04 175,877,819.68 32.90 32.90 2,295,129.84 1,605,921.71 4.61 raised
buildings
capital
Light Self-
sources to 15,491,218.74 24,280,691.90 30,812,228.88 8,959,681.76 funded
be leased capital
Total 534,635,200.00 148,602,245.38 67,047,484.94 30,812,228.88 184,837,501.44 / / 2,295,129.84 1,605,921.71 / /
149 / 225
2022 Semiannual Report
(3). Provision for impairment losses for construction in progress in the current period
□ Applicable √ N/A
Other description
□ Applicable √ N/A
Materials for construction
□ Applicable √ N/A
23. Productive biological assets
(1). Productive biological assets measured at cost
□ Applicable √ N/A
(2). Productive biological assets measured at fair value
□ Applicable √ N/A
Other description
□ Applicable √ N/A
24. Oil and gas assets
□ Applicable √ N/A
25. Use right assets
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Houses and buildings Total
I. Costs
1. Opening balance 79,510,041.05 79,510,041.05
2. Increase 35,228,911.20 35,228,911.20
(1) Lease in 34,800,798.32 34,800,798.32
(2) Other changes 428,112.88 428,112.88
3. Decrease 10,085,145.63 10,085,145.63
(1) Disposal 10,085,145.63 10,085,145.63
4. Closing balance 104,653,806.62 104,653,806.62
II. Accumulated depreciation
1. Opening balance 52,706,130.29 52,706,130.29
2. Increase 13,929,977.13 13,929,977.13
(1) Provision 13,511,079.53 13,511,079.53
(2) Other changes 418,897.60 418,897.60
3. Decrease 9,528,808.30 9,528,808.30
(1) Disposal 9,528,808.30 9,528,808.30
4. Closing balance 57,107,299.12 57,107,299.12
III. Provision for impairment
1. Opening balance
2. Increase
(1) Provision
150 / 225
2022 Semiannual Report
3. Decrease
(1) Disposal
4. Closing balance
IV. Carrying amount
1. Closing balance 47,546,507.50 47,546,507.50
2. Opening balance 26,803,910.76 26,803,910.76
Other description:
None
26. Intangible assets
(1). Description of intangible assets
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Land use rights Patents Software Total
I. Costs
1. Opening balance 330,630,000.00 20,059,950.00 16,430,346.40 367,120,296.40
2. Increase 1,669,892.32 1,669,892.32
(1) Purchase 1,639,231.72 1,639,231.72
(2) Currency
30,660.60 30,660.60
movement
3. Decrease
(1) Disposal
4. Closing balance 330,630,000.00 20,059,950.00 18,100,238.72 368,790,188.72
II. Accumulated
amortization
1. Opening
38,573,500.14 16,390,600.14 7,322,240.70 62,286,340.98
balance
2. Increase 5,510,500.02 1,628,595.81 7,139,095.83
(1) Provision 5,510,500.02 1,599,345.03 7,109,845.05
(2) Currency
29,250.78 29,250.78
movement
3. Decrease
(1) Disposal
4. Closing balance 44,084,000.16 16,390,600.14 8,950,836.51 69,425,436.81
III. Provision for
impairment
1. Opening
3,669,349.86 3,669,349.86
balance
2. Increase
(1) Provision
3. Decrease
(1) Disposal
4. Closing balance 3,669,349.86 3,669,349.86
IV. Carrying amount
1. Closing balance 286,545,999.84 9,149,402.21 295,695,402.05
151 / 225
2022 Semiannual Report
2. Opening balance 292,056,499.86 9,108,105.70 301,164,605.56
The proportion of intangible assets generated by the Company’s internal research and development to
the balance of intangible assets at the end of the period is 0.
(2). Land use rights of which certificates of title have not been obtained
□ Applicable √ N/A
Other description:
□ Applicable √ N/A
27. Development expenditure
□ Applicable √ N/A
28. Goodwill
(1). Gross carrying amount of goodwill
□ Applicable √ N/A
(2). Impairment provision of goodwill
□ Applicable √ N/A
(3). Relevant information of groups of assets or combinations of groups of assets where the goodwill
is recognized
□ Applicable √ N/A
(4). Specify test procedure, key parameters of impairment of goodwill (such as increase rate at
the projection period, increase rate at the steady period, profit rate, discount rate, and
projection period upon the estimates of the present value of future cash flow) as well as
recognition method for impairment loss
□ Applicable √ N/A
(5). Impacts of test of goodwill impairment
□ Applicable √ N/A
Other description:
□ Applicable √ N/A
29. Long-term prepaid expenses
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Opening Other Closing
Item Increase Amortization
balance decreases balance
Decoration
9,875,718.38 975,864.48 3,496,121.74 7,355,461.12
construction
RTO gas for
the screen 88,073.42 16,513.74 71,559.68
project
152 / 225
2022 Semiannual Report
Leased
162,373.02 69,290.57 168,147.17 63,516.42
software
Total 10,126,164.82 1,045,155.05 3,680,782.65 7,490,537.22
Other description:
None
30. Deferred tax assets and deferred tax liabilities
(1). Deferred tax assets that are not offset
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Closing balance Opening balance
Deductible Deductible
Item Deferred tax Deferred tax
temporary temporary
assets assets
differences differences
Provision for impairment
43,819,798.64 6,575,327.79 43,598,496.34 6,542,132.46
of assets
Unrealized profits for
333,544,330.97 50,031,649.65 359,910,538.71 53,986,580.82
inside transactions
Deductible losses
Provisions 27,851,054.79 4,177,658.22 30,413,119.32 4,561,967.90
Deferred income 4,109,603.31 616,440.50 10,035,489.25 1,505,323.38
Share-based payment
71,536,988.07 10,758,048.19 103,555,776.28 15,645,325.93
expenses
Leases 809,710.26 121,992.06 1,474,346.78 221,152.02
Total 481,671,486.04 72,281,116.41 548,987,766.68 82,462,482.51
(2). Deferred tax liabilities that are not offset
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Closing balance Opening balance
Taxable Taxable
Item Deferred tax Deferred tax
temporary temporary
liabilities liabilities
differences differences
Gains from changes in
566,000.00 84,900.00 2,200,000.00 330,000.00
fair values
Long-term receivables 8,231,871.49 1,234,780.72 9,407,088.13 1,411,063.22
Total 8,797,871.49 1,319,680.72 11,607,088.13 1,741,063.22
(3). Deferred tax assets or deferred tax liabilities that are presented at the net amount after offset
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Closing set-off Closing balance Opening set-off Opening
Item
amounts of of deferred tax amount of balance of
153 / 225
2022 Semiannual Report
deferred tax assets or deferred tax deferred tax
assets and liabilities after assets and assets or
liabilities set-off liabilities liabilities after
set-off
Deferred tax assets 1,319,680.72 70,961,435.69 1,741,063.22 80,721,419.29
Deferred tax liabilities 1,319,680.72 1,741,063.22
(4). Details of unrecognized deferred tax assets
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Provision for impairment of
30,791,658.75 29,041,507.01
assets
Unrealized profits for inside
36,696,412.08 36,978,135.00
transactions
Provisions 8,628,500.56 6,015,569.62
Deferred income 3,565,917.74 231,492.83
Share-based payment
7,049,367.49 11,982,368.41
expenses
Leases 2,524,155.15 1,726,120.92
Profit distribution from
40,790.41
partnership enterprises
Provision for impairment of
other equity instrument 4,900,000.00 4,900,000.00
investments
Deductible losses 373,924,852.56 326,263,103.27
Total 468,080,864.33 417,179,087.47
(5). Deductible losses, for which no deferred tax assets are recognized, will expire in the following
years
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Year Closing balance Opening balance Remark
2022 1,747,737.55 1,747,737.55
2023 13,041,148.40 27,969,288.80
2024 66,901,681.33 66,901,681.33
2025 68,119,959.02 68,119,959.02
2026 116,688,163.53 98,077,911.35
2027 44,877,784.08
No expiry date 62,548,378.65 63,446,525.22
Total 373,924,852.56 326,263,103.27 /
Other description:
□ Applicable √ N/A
154 / 225
2022 Semiannual Report
Overseas subsidiaries have the deductible loss of RMB 62,548,378.65, for which there is no expiry date.
31. Other non-current assets
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Closing balance Opening balance
Gross Provision Gross Provision
Item Carrying Carrying
carrying for carrying for
amount amount
amount impairment amount impairment
Prepayment
for
purchase of 17,929,878.09 17,929,878.09 10,998,641.77 10,998,641.77
long-term
assets
Total 17,929,878.09 17,929,878.09 10,998,641.77 10,998,641.77
Other description:
None
32. Short-term borrowings
(1). Categories of short-term borrowings
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Guaranteed loans 5,560,000.00
Credit loans 50,000,000.00 2,468.61
Notes discount 80,000,000.00
Interest 45,205.48 8,409.50
Total 130,045,205.48 5,570,878.11
Description for categories of short-term borrowings:
None
(2). Short-term borrowings overdue but not yet repaid
□ Applicable √ N/A
Other description:
□ Applicable √ N/A
33. Held-for-trading financial liabilities
□ Applicable √ N/A
34. Derivative financial liabilities
□ Applicable √ N/A
35. Notes payable
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Category Closing balance Opening balance
155 / 225
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Bank acceptance bills 121,047,156.20 134,378,967.61
Total 121,047,156.20 134,378,967.61
Total notes payable matured but not paid yet is RMB 0 at the end of the period.
36. Accounts payable
(1). Presented by accounts payable
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Amounts payable for
292,737,366.30 419,966,567.27
purchase
Total 292,737,366.30 419,966,567.27
(2). Accounts payable with significant amounts aged more than 1 year
□ Applicable √ N/A
Other description:
□ Applicable √ N/A
37. Receipts in advance
(1). Presented by receipts in advance
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Advance payments of recharge
117,280,983.73 130,288,312.62
fees
Total 117,280,983.73 130,288,312.62
(2). Receipts in advance with significant amounts aged more than 1 year
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Reasons for not repaid or
Item Closing balance
carried-forward
Jiangsu Happy Blue Sea Cinema Lease payments received in
17,998,074.51
Development Co., Ltd. advance
Total 17,998,074.51 /
Other description:
□ Applicable √ N/A
38. Contract liabilities
(1). Description of contract liabilities
√ Applicable□ N/A
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Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Goods payment 50,350,874.58 45,541,629.55
Total 50,350,874.58 45,541,629.55
(2). Amount and reasons of major changes in the carrying amount during the reporting period
□ Applicable √ N/A
Other description:
□ Applicable √ N/A
39. Employee benefits payable
(1). Presented by employee benefits payable
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Opening balance Increase Decrease Closing balance
I. Short-term benefits 63,900,756.64 171,029,821.49 207,500,793.87 27,429,784.26
II. Post-employment
benefits-defined 186,233.66 9,157,356.37 9,169,693.54 173,896.49
contribution plan
III. Dismissal benefits 32,097.21 628,601.19 660,698.40
IV. Other benefits due
within one year
Total 64,119,087.51 180,815,779.05 217,331,185.81 27,603,680.75
(2). Presented by short-term employee benefits
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Opening balance Increase Decrease Closing balance
I. Wages or salaries,
bonuses, allowances 63,421,218.21 153,862,585.68 190,188,009.33 27,095,794.56
and subsidies
II. Staff welfare 291,000.00 776,088.67 896,157.67 170,931.00
III. Social security
122,585.37 6,171,801.67 6,198,239.86 96,147.18
contributions
Including: Medical
117,296.06 5,845,598.80 5,871,885.58 91,009.28
insurance
Work injury
5,272.33 188,734.97 188,886.38 5,120.92
insurance
Maternity
16.98 137,467.90 137,467.90 16.98
insurance
IV. Housing funds 9,993,004.40 9,993,004.40
V. Union running
costs and employee 65,953.06 226,341.08 225,382.62 66,911.52
education costs
157 / 225
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VI. Short-term paid
leaves
VII. Short-term profit
sharing plan
Total 63,900,756.64 171,029,821.49 207,500,793.87 27,429,784.26
(3). Presented by defined contribution plan
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Opening Closing
Item Increase Decrease
balance balance
1. Basic pensions 180,578.08 8,899,720.16 8,911,903.06 168,395.18
2. Unemployment
5,655.58 257,636.21 257,790.48 5,501.31
insurance
3. Enterprise annuity
contribution
Total 186,233.66 9,157,356.37 9,169,693.54 173,896.49
Other description:
□ Applicable √ N/A
40. Taxes payable
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Value-added tax (VAT) 5,501,965.68 4,246,010.43
Enterprise income tax 10,009,895.89 11,889,909.01
Individual income tax 1,440,376.01 1,613,116.75
City maintenance and
279,773.21 552,264.60
construction tax
Education surcharges 119,902.81 242,838.49
Local education surcharges 79,935.19 161,892.32
Stamp duty 391,340.77 832,145.97
Annual franchise right tax 8,012.66
Urban land use tax 8,914.32
Total 17,832,103.88 19,546,190.23
Other description:
None
41. Other payables
Presented by items
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
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Interest payable
Dividend payable 3,103,823.79
Other payables 49,208,009.71 54,115,784.80
Total 52,311,833.50 54,115,784.80
Other description:
None
Interest payable
□ Applicable √ N/A
Dividends payable
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Dividends on ordinary shares 3,103,823.79
Total 3,103,823.79
Other description, including significant dividend payable with ageing of over 1 year, and the reason of
non-payment shall be disclosed:
None
Other payables
(1). Other payables presented by nature
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Withholding 114,699.81 117,948.38
Deposits/margins 9,567,042.99 6,388,325.48
Withdrawals in advance 24,348,975.44 43,694,291.49
Temporary receipts payable 6,310,958.61 3,915,219.45
Subscription payment for
8,866,332.86
restricted stocks
Total 49,208,009.71 54,115,784.80
(2). Other payables with significant amounts aged more than 1 year
□ Applicable √ N/A
Other description:
□ Applicable √ N/A
42. Liabilities held for sale
□ Applicable √ N/A
43. Non-current liabilities due within one year
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
159 / 225
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Long-term borrowings due
157,087,655.00 135,843,834.00
within one year
Lease liabilities due within
20,995,488.14 18,770,827.17
one year
Interest payable 179,175.24 170,455.18
Total 178,262,318.38 154,785,116.35
Other description:
None
44. Other current liabilities
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Amounts payable for goods
1,531,920.02 16,804,816.23
returned
Taxes to be written off 5,120,209.11 2,756,287.89
Total 6,652,129.13 19,561,104.12
Changes in short-term bonds payable:
□ Applicable √ N/A
Other description:
□ Applicable √ N/A
45. Long-term borrowings
(1). Categories of long-term borrowings
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Mortgage borrowings 85,000,198.22
Guaranteed loans 328,099,990.00 313,799,994.00
Guaranteed loans and loans
54,430,844.66
against collateral
Interest payable 498,367.03 404,775.98
Total 413,598,555.25 368,635,614.64
Description for categories of long-term borrowings:
None
Other description, including interest range:
□ Applicable √ N/A
46. Bonds payable
(1). Bonds payable
□ Applicable √ N/A
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(2). Changes in bonds payable (excluding other financial instruments such as preferred shares,
perpetual bonds classified as financial liabilities)
□ Applicable √ N/A
(3). Description of converting terms and period of convertible corporate bonds
□ Applicable √ N/A
(4). Description of other financial instruments classified as financial liabilities
Basic information of other financial instruments including outstanding preferred shares and perpetual
bonds at the end of the period
□ Applicable √ N/A
Changes in financial instruments including outstanding preferred shares and perpetual bonds at the end
of the period
□ Applicable √ N/A
Description of other financial instruments classified as financial liabilities
□ Applicable √ N/A
Other description:
□ Applicable √ N/A
47. Lease liabilities
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Lease payment 29,884,884.77 10,789,352.69
Total 29,884,884.77 10,789,352.69
Other description:
None
48. Long-term payables
Presented by items
□ Applicable √ N/A
Long-term payables
□ Applicable √ N/A
Special payables
□ Applicable √ N/A
49. Long-term employee benefits payable
□ Applicable √ N/A
50. Provisions
√ Applicable□ N/A
161 / 225
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Unit: Yuan Currency: RMB
Item Opening balance Closing balance Reason
Product quality Expenses for “three
35,744,039.63 35,651,878.75
warranty guarantees” services
Amounts payable for
684,649.31 827,676.60
goods returned
Total 36,428,688.94 36,479,555.35 /
Other description, including significant assumptions and estimates relative to material provisions:
None
51. Deferred income
Description of deferred income
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Opening
Item Increase Decrease Closing balance Reason
balance
Government
10,266,982.08 7,413,400.00 10,004,861.03 7,675,521.05
grants
Total 10,266,982.08 7,413,400.00 10,004,861.03 7,675,521.05 /
Items relating to government grants:
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Amount
Amount
Increased recognized
recognized in
government in non-
Opening other income Other Closing Related to
Liabilities grants for operating
balance for the changes balance assets/income
the current income for
current
period the current
period
period
8K Ultra High
Definition
Laser Display
Technology 924,464.60 3,000,000.00 485,736.78 3,438,727.82 Related to assets
Engineering
Research
Center
Industry
4,000,000.00 454,545.45 3,545,454.55 Related to assets
support funds
Trichromatic
Laser Display
Complete
Related to
Equipment 8,679,443.32 8,401,504.64 277,938.68
income
Production
Demonstration
Line
162 / 225
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R&D of key
technologies
for ultra high-
definition
micro laser
Related to
projector 663,074.16 663,074.16
income
optical engine
based on light-
emitting
ceramic
devices
Research of
trichromatic
laser light Related to
413,400.00 413,400.00
sources and income
LCoS optical
engine
Sub-total 10,266,982.08 7,413,400.00 10,004,861.03 7,675,521.05
Other description:
√ Applicable□ N/A
Government grants included in the current profit or loss are disclosed in VII.84 of Section X in details.
52. Other non-current liabilities
□ Applicable √ N/A
53. Share capital
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Changes (+, -)
New
Capital
Opening balance issue Bonus Closing balance
ization Others Sub-total
of shares
of
shares
capital
reserve
Total
452,756,901.00 452,756,901.00
shares
Other description:
None
54. Other equity instruments
(1) Basic information of other financial instruments including outstanding preferred shares and
perpetual bonds at the end of the period
□ Applicable √ N/A
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(2) Changes in financial instruments including outstanding preferred shares and perpetual bonds
at the end of the period
□ Applicable √ N/A
Changes of other equity instruments in the current period, reasons for such change and basis for related
accounting treatments:
□ Applicable √ N/A
Other description:
□ Applicable √ N/A
55. Capital reserve
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Opening balance Increase Decrease Closing balance
Capital premium
1,241,202,420.08 1,241,202,420.08
(Share premium)
Other capital
159,402,716.57 35,464,460.91 194,867,177.48
reserve
Total 1,400,605,136.65 35,464,460.91 1,436,069,597.56
Other description, including changes in the current period and reasons for changes:
(1) The total expense of equity-settled share-based payments amounted to RMB 44,277,773.58, in
which RMB 41,390,101.79 was recognized in the capital reserve (other capital reserve) and RMB
2,887,671.79 was charged to the amount attributable to minority interests.
(2) With respect to the temporary difference by which the fair value at the end of period of restricted
shares granted by the Company in the current period is greater than the fair value at the grant date,
the Company recognized the decrease in deferred tax assets by RMB 6,179,289.43, the decrease
in the capital reserve (other capital reserve) by RMB 5,925,640.88, and the decrease in the
minority interests by RMB 253,648.55.
56. Treasury shares
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Opening balance Increase Decrease Closing balance
Repurchase of
3,211,260.13 3,211,260.13
treasury shares
Total 3,211,260.13 3,211,260.13
Other description, including changes in the current period and reasons for changes:
The Company held the 9th meeting of the second Board of Directors and the 1st extraordinary general
meeting of shareholders in 2022 respectively on March 18, 2022 and March 29, 2022, approving the
Proposal on Repurchase of Shares of the Company through Call Auction through deliberation, and
agreeing the Company to use the excess offering proceeds to repurchase some RMB-denominated ordinary
shares (A shares) issued by it through call auction in the trading system of the Shanghai Stock Exchange,
with the repurchase funds totaling not less than RMB 10 million (inclusive) but not more than RMB 20
164 / 225
2022 Semiannual Report
million (inclusive), the repurchase price not exceeding RMB 27 per share (inclusive) and the repurchase
period being six months from the date on which this repurchase plan is approved by the general meeting
of shareholders. As of June 30, 2022, the Company repurchased 214,517 shares in the aggregate through
call auction, and paid RMB 3,211,260.13 (including stamp duty, commissions and other transaction fees).
165 / 225
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57. Other comprehensive income
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Amount recognized in the current period
Less: Amount
Less: Amount
previously
previously
included in
included in
Amount other Less: Attributable to Attributable to
Opening other Closing
Item incurred for comprehensive Income the parent minority
balance comprehensive balance
current period income and tax company after shareholders
income and
before tax transferred to expenses tax after tax
transferred to
retained
profit or loss
earnings for
for the period
the period
I. Other
comprehensive
income that
cannot be -4,900,000.00 -4,900,000.00
reclassified
subsequently to
profit or loss
Including:
Changes from
remeasurement
of defined
benefit plans
Other
comprehensive
166 / 225
2022 Semiannual Report
income that
cannot be
reclassified to
profit or loss
under the equity
method
Changes in fair
value of
investments in -4,900,000.00 -4,900,000.00
other equity
instruments
Changes in
fair value of
enterprises’ own
credit risks
II. Other
comprehensive
income that will -11,940,512.60 13,583,493.02 13,734,264.61 -150,771.59 1,793,752.01
be reclassified to
profit or loss
Including: Other
comprehensive
income that will
be reclassified to -366,814.82 -9,668,892.26 -9,668,892.26 -10,035,707.08
profit or loss
under the equity
method
Changes in fair
value of other
debt investments
167 / 225
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Amount of
financial assets
reclassified to
other
comprehensive
income
Provision for
credit
impairment of
other debt
investments
Reserve for cash
flow hedges
Exchange
differences on
translation of
financial
-11,573,697.78 23,252,385.28 23,403,156.87 -150,771.59 11,829,459.09
statements
denominated in
foreign
currencies
Total other
comprehensive -16,840,512.60 13,583,493.02 13,734,264.61 -150,771.59 -3,106,247.99
income
Other description, including adjustments on transferring effective portion of cash flow hedges to amount upon initial recognition of the hedged item:
0
168 / 225
2022 Semiannual Report
58. Special reserve
□ Applicable √ N/A
59. Surplus reserve
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Opening balance Increase Decrease Closing balance
Statutory surplus
56,265,868.31 56,265,868.31
reserve
Total 56,265,868.31 56,265,868.31
Surplus reserve description, including changes in the current period and reasons for changes:
None
60. Undistributed profits
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Current period Last year
Undistributed profits at the end of prior
545,277,188.08 357,793,891.96
period before adjustment
Total adjusted undistributed profits at
the beginning of the period (Add: +; 9,346.56
Less: -)
Undistributed profits at the beginning
545,277,188.08 357,803,238.52
of the period after adjustment
Add: Net profit attributable to owners
45,966,481.10 233,364,344.09
of the parent company for the period
Less: Appropriation to statutory
20,988,764.97
surplus reserve
Appropriation to discretionary
surplus reserve
Appropriation to general risk
reserve
Declaration of dividends on
ordinary shares
Conversion of ordinary shares’
dividends into share capital
Distributed dividend 47,539,596.43 24,901,629.56
Undistributed profits at the end of the
543,704,072.75 545,277,188.08
period
Details of adjustments to undistributed profits at the beginning of the period:
1. As a result of the retrospective adjustment of the Accounting Standards for Business Enterprises and
related new regulations, undistributed profits at the beginning of the period were affected by RMB 0.00.
2. Undistributed profits at the beginning of the period were affected by RMB 0.00 due to changes in
accounting policies.
3. Undistributed profits at the beginning of the period were affected by RMB 0.00 due to the correction of
significant accounting errors.
4. Undistributed profits at the beginning of the period were affected by RMB 0.00 due to changes in the
scope of consolidation resulting from business combination involving entities under common control.
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5. Undistributed profits at the beginning of the period were affected by RMB 0.00 in total due to other
adjustments.
61. Operating income and operating costs
(1). Description of operating income and operating costs
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Amount for the current period Amount for the prior period
Item
Income Cost Income Cost
Main business 1,269,322,202.11 884,560,607.88 1,104,689,243.59 723,612,305.19
Other business
Total 1,269,322,202.11 884,560,607.88 1,104,689,243.59 723,612,305.19
(2). Description of incomes from contracts
□ Applicable √ N/A
(3). Description of performance obligations
□ Applicable √ N/A
(4). Description of allocation to remaining performance obligations
□ Applicable √ N/A
Other description:
Breakdown of revenue from contracts with customers by category:
Item Sub-total
By business area:
Domestic 982,431,749.79
Overseas 151,675,564.56
Sub-total 1,134,107,314.35
By product：
Laser optical engine 227,366,190.32
Complete laser projector 797,685,682.96
Others 109,055,441.07
Sub-total 1,134,107,314.35
By revenue recognition time:
Revenue recognized at a time point 1,133,767,224.50
Revenue recognized for a period of time 340,089.85
Sub-total 1,134,107,314.35
62. Taxes and surcharges
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Amount for the current period Amount for the prior period
City maintenance and
1,854,709.81 1,720,331.86
construction tax
Education surcharges 837,797.56 741,743.40
Stamp duty 1,328,656.61 1,096,478.56
Local education surcharges 596,844.97 499,046.18
Others 18,392.15 273,538.81
170 / 225
2022 Semiannual Report
Total 4,636,401.10 4,331,138.81
Other description:
None
63. Selling expenses
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Amount for the current Amount for the prior
Item
period period
Employee benefits 38,321,847.96 32,606,069.47
Marketing fees 56,105,203.98 35,119,978.09
After-sale repair expenses 7,794,363.57 6,280,390.31
Advertising and business promotion
2,152,634.28 2,043,151.94
expenses
Travel expenses 1,140,208.55 1,601,757.27
Business entertainment expenses 874,145.73 1,073,975.75
Other expenses 13,913,957.29 10,960,873.00
Total 120,302,361.36 89,686,195.83
Other description:
None
64. Administrative expenses
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Amount for the current Amount for the prior
period period
Employee benefits 36,480,928.08 31,797,608.54
Rent expense 4,851,517.81 4,795,962.93
Service fees 11,634,987.32 16,698,545.91
Depreciation and amortization expenses 4,665,199.81 3,365,970.11
Share-based payment expenses 44,301,483.42 22,312,482.85
Other expenses 4,081,725.92 4,989,946.58
Total 106,015,842.36 83,960,516.92
Other description:
None
65. R&D expenses
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Amount for the current Amount for the prior
period period
Employee benefits 76,416,118.90 60,494,851.79
Material consumption expenses 13,749,893.95 8,429,853.23
Rent expense 3,720,732.39 4,649,585.35
Service fees 4,297,638.31 7,094,850.80
Depreciation and amortization expenses 3,961,800.74 4,710,875.84
Testing expenses 4,511,335.54 2,384,569.29
Patent fees 836,908.48 2,067,359.08
Other expenses 7,465,358.06 5,296,538.28
171 / 225
2022 Semiannual Report
Total 114,959,786.37 95,128,483.66
Other description:
None
66. Financial expenses
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Amount for the current Amount for the prior
period period
Interest expenses 12,510,421.43 11,013,330.17
Less: Interest income -6,740,942.87 -10,868,184.51
Exchange profit or loss -10,026,339.12 508,948.95
Bank service charges 902,979.64 877,924.69
Total -3,353,880.91 1,532,019.30
Other description:
None
67. Other income
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Amount for the current Amount for the prior
period period
Government grants related to assets 940,282.23 382,994.93
Government grants related to income 18,812,831.21 51,598,892.61
Refund of transaction fees for withholding
364,144.36 571,819.77
individual income taxes
Additional deduction of input VAT 1,448,552.63 2,336,589.39
Total 21,565,810.43 54,890,296.70
Other description:
Government grants recognized in other income in the current period are disclosed in VII.84 of Section X
in details.
68. Investment income
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Amount for the current
Item Amount for the prior period
period
Long-term equity investment income
-5,951,760.87 6,982,738.64
accounted for using the equity method
Investment income from disposal of
-4,611,079.66
long-term equity investments
Investment income from held-for-
trading financial assets during the 200,000.00
holding period
Investment income from disposal of
5,795,366.82 2,145,923.39
held-for-trading financial assets
Others 3.00
Total -4,567,473.71 9,128,665.03
172 / 225
2022 Semiannual Report
Other description:
None
69. Income from net exposure hedges
□ Applicable √ N/A
70. Gains from changes in fair values
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Source of gains from changes in fair
Amount for the current period Amount for the prior period
values
Held-for-trading financial assets -1,634,000.00 38,175,900.00
Including: Gains from changes in
fair values of derivative financial
instruments
Held-for-trading financial liabilities
Investment properties measured at
fair value
Total -1,634,000.00 38,175,900.00
Other description:
None
71. Losses of credit impairment
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Amount for the current
Item Amount for the prior period
period
Bad debt losses 1,393,164.79 9,407,031.23
Total 1,393,164.79 9,407,031.23
Other description:
None
72. Impairment losses of assets
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Amount for the current
Item Amount for the prior period
period
I. Bad debt losses -38,217.98 -43,168.95
II. Losses of decline in value of
inventories and impairment losses of -19,378,228.52 -16,538,070.39
contract performance cost
III. Impairment losses of long-term
equity investments
IV. Impairment losses of investment
properties
V. Impairment losses of fixed assets -405,917.49
Total -19,822,363.99 -16,581,239.34
Other description:
None
173 / 225
2022 Semiannual Report
73. Gains on disposal of assets
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Amount for the current period Amount for the prior period
Gains from disposal of fixed
106.88 2,806,008.82
assets
Gains from disposal of use right
17,106.28
assets
Total 17,213.16 2,806,008.82
Other description:
□ Applicable √ N/A
74. Non-operating income
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Amount included in
Amount for the Amount for the
Item non-recurring profit or
current period prior period
loss for the period
Total gains from disposal of
7,964.60 4,100.00 7,964.60
non-current assets
Including: Gains from disposal
7,964.60 4,100.00 7,964.60
of fixed assets
Gains from disposal of
intangible assets
Gains from debt restructuring
Gains from exchange of non-
monetary assets
Donation receipts
Government grants 21,500,000.00
Indemnity 630,000.00
Others 159,923.71 106,580.14 159,923.71
Total 167,888.31 22,240,680.14 167,888.31
Government grants included in profit or loss for the period
□ Applicable √ N/A
Other description:
□ Applicable √ N/A
75. Non-operating expenses
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Amount included in
Amount for the Amount for the
Item non-recurring profit or
current period prior period
loss for the period
Total losses from disposal of
353,535.44 170,231.21 353,535.44
non-current assets
Including: Losses from
353,535.44 170,231.21 353,535.44
disposal of fixed assets
174 / 225
2022 Semiannual Report
External donations 1,011,354.98 1,011,354.98
Penalties and overdue fines 141,821.94 18,205.90 141,821.94
Others 5,197.11 217,064.50 5,197.11
Total 1,511,909.47 405,501.61 1,511,909.47
Other description:
None
76. Income tax expense
(1) Statement of income tax expense
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Amount for the current period Amount for the prior period
Income tax expense in the current
15,688,777.00 52,765,981.28
period
Deferred income tax expenses 3,580,694.17 -6,460,456.12
Total 19,269,471.17 46,305,525.16
(2) Reconciliation of income tax expenses to the accounting profit
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Amount for the current period
Total profit 37,809,413.47
Income tax expense calculated based on
5,671,412.03
statutory/applicable tax rate
Effect of different tax rates of subsidiaries
-3,602,239.40
operating in other jurisdictions
Effect of income tax for the period before
-209,664.93
adjustment
Effect of non-taxable income 2,032,381.30
Effect of non-deductible cost, expense and loss 4,804,348.73
Effect of utilizing deductible loss not recognized
-4,444,736.53
for deferred tax assets for prior period
Effect of deductible temporary difference or
deductible loss not recognized for deferred tax 15,637,543.63
assets for the current period
Other effects -619,573.65
Income tax expenses 19,269,471.17
Other description:
□ Applicable √ N/A
77. Other comprehensive income
√ Applicable□ N/A
Please refer to VII. 57 of Section X in details.
78. Items in cash flow statement
(1). Other cash receipts relating to operating activities
√ Applicable□ N/A
Unit: Yuan Currency: RMB
175 / 225
2022 Semiannual Report
Item Amount for the current period Amount for the prior period
Interest income 6,586,011.83 11,045,718.76
Government grants 14,967,754.76 72,650,106.88
Recovery of security deposits 9,021,162.77 21,445,628.07
Non-operating income 78,226.30 665,006.61
Other transaction accounts 3,742,646.71 7,695,541.37
Total 34,395,802.37 113,502,001.69
Description of other cash receipts relating to operating activities:
None
(2). Other cash payments relating to operating activities
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Amount for the current period Amount for the prior period
Administrative expenses, selling
expenses, and R&D expenses paid in 135,601,238.70 95,588,810.53
cash
Non-operating expenses 138,934.57 47,599.90
Payment of security deposits 67,068,694.27 28,107,696.66
Service charges 757,068.27 1,863,849.47
Other transaction accounts 2,730,798.00 8,277,996.70
Total 206,296,733.81 133,885,953.26
Description of other cash payments relating to operating activities:
None
(3). Other cash receipts relating to investing activities
□ Applicable √ N/A
(4). Other cash payments relating to operating activities
□ Applicable √ N/A
(5). Other cash receipts relating to financing activities
□ Applicable √ N/A
(6). Other cash payments relating to financing activities
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Amount for the current period Amount for the prior period
Dividend payments 20,559.65
Actual lease payment 14,493,029.54 11,870,055.52
Repayment of shareholder loans 19,320,000.00
Share repurchase payment 3,211,260.13
Total 17,704,289.67 31,210,615.17
Description of other cash payments relating to financing activities:
None
79. Supplementary information to the cash flow statement
(1) Supplementary information to the cash flow statement
√ Applicable□ N/A
Unit: Yuan Currency: RMB
176 / 225
2022 Semiannual Report
Amount for the current
Supplemental information Amount for the prior period
period
1. Reconciliation of net profit to
cash flow from operating activities:
Net profit 18,539,942.30 179,794,899.69
Add: Provision for impairment of
19,822,363.99 16,581,239.34
assets
Impairment losses of credit -1,393,164.79 -9,407,031.23
Depreciation of fixed assets,
depletion of oil and gas assets,
60,956,631.02 52,443,098.86
depreciation of productive biological
assets
Amortization of use right assets 13,511,079.53 9,471,534.54
Amortization of intangible assets 1,599,345.03 2,236,018.62
Amortization of long-term prepaid
3,680,782.65 3,551,972.20
expenses
Losses on disposal of fixed assets,
intangible assets and other long-term -17,213.16 -2,806,008.82
assets (gains are indicated by “-”)
Losses on retirement of fixed assets
345,570.84 166,131.21
(gains are indicated by “-”)
Losses on changes in fair values
1,634,000.00 -38,175,900.00
(gains are indicated by “-”)
Financial expenses (income is
2,484,082.32 11,522,279.12
indicated by “-”)
Investment losses (income is
4,567,473.71 -9,128,665.03
indicated by “-”)
Decrease in deferred tax assets
3,580,734.09 -7,154,581.92
(increase is indicated by “-”)
Increase in deferred tax liabilities
(decrease is indicated by “-”)
Decrease in inventories (increase is
-33,033,292.19 -272,867,132.22
indicated by “-”)
Decrease in receivables from
operating activities (increase is 36,305,146.46 154,269,042.05
indicated by “-”)
Increase in payables from operating
activities (decrease is indicated by -255,297,259.11 58,149,792.82
“-”)
Others 44,160,417.64 22,012,624.67
Net cash flow from operating
-78,553,359.67 170,659,313.90
activities
2. Significant investing and
financing activities that do not
involve cash receipts and
payments:
Conversion of debt into capital
177 / 225
2022 Semiannual Report
Convertible corporate bonds due
within one year
Fixed assets acquired under finance
leases
3. Net changes in cash and cash
equivalents:
Closing balance of cash 951,480,989.53 863,588,162.84
Less: Opening balance of cash 891,195,166.73 983,525,089.44
Add: Closing balance of cash
equivalents
Less: Opening balance of cash
equivalents
Net increase in cash and cash
60,285,822.80 -119,936,926.60
equivalents
(2) Net cash paid to acquire subsidiaries for the current period
□ Applicable √ N/A
(3) Net cash receipts from disposal of subsidiaries for the current period
□ Applicable √ N/A
(4) Composition of cash and cash equivalents
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
I. Cash 951,480,989.53 891,195,166.73
Including: Cash on hand 5,624.61 5,680.24
Bank deposits that can be paid at any
914,093,584.97 883,906,202.81
time
Other monetary funds that can be paid
37,381,779.95 7,283,283.68
at any time
Deposits in the central bank that can be
used for payments
Deposits made with other banks
Placements with banks
II. Cash equivalents
Including: Investments in debt securities
due within three months
III. Closing balance of cash and cash
951,480,989.53 891,195,166.73
equivalents
Including: Restricted cash and cash
equivalents of the parent company or
subsidiaries within the Group
Other description:
□ Applicable √ N/A
80. Notes to items in the statement of changes in owners’ equity
Describe matters such as the names and the adjusted amounts of the items included in “others” in respect
of adjustments to the closing balances of the prior year:
178 / 225
2022 Semiannual Report
□ Applicable √ N/A
81. Assets with limited ownership or use right
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance of carrying Reason
amount
Bank deposits 40,000,000.00 Term deposits
Bank deposits 3,293,156.61 Pledged term deposits
Bank deposits 302,062.50 Interests accrued
Other monetary funds 50,315,805.66 Margins
Intangible assets 286,545,999.84 Mortgage collateral
Total 380,457,024.61 /
Other description:
None
82. Foreign currency monetary items
(1). Foreign currency monetary items
√ Applicable□ N/A
Unit: Yuan
Closing balance of Closing balance of
Item Exchange rate
foreign currency RMB equivalent
Cash and bank balances - - 319,881,035.51
Including: USD 27,541,131.87 6.7114 184,839,552.43
GBP 365.96 8.1365 2,977.63
HKD 157,860,193.17 0.8552 135,000,458.60
VND 131,917,373.00 0.0003 38,046.85
Accounts receivable - - 69,782,163.29
Including: USD 10,380,618.47 6.7114 69,668,482.80
MYR 14,331.50 0.6557 9,397.45
PHP 218,429.36 0.1216 26,561.01
EUR 11,089.84 7.0084 77,722.03
Accounts payable - - 16,682,071.87
Including: USD 2,483,185.90 6.7114 16,665,653.85
HKD 19,198.10 0.8552 16,418.02
Other description:
None
(2). Description of overseas operating entities, including significant overseas operating entities, of
which the major operation place, functional currency and choosing basis as well as the reason
for change of functional currency should be disclosed
√ Applicable□ N/A
Major overseas Functional
Item Choosing basis
operation place currency
Appotronics Hong Kong Limited Hong Kong USD Common currency
Appotronics USA, Inc. USA USD Local currency
JoveAI Limited Cayman Islands USD Common currency
JoveAI Innovation, Inc. USA USD Local currency
179 / 225
2022 Semiannual Report
FORMOVIE TECHNOLOGY INC USA USD Local currency
JoveAI Asia Company Limited Vietnam VND Local currency
WEMAX LLC USA USD Local currency
Hongkong Orange Juice Energy Technology
Hong Kong USD Common currency
Co., Limited
WEMAX INC USA USD Local currency
83. Hedge
□ Applicable √ N/A
84. Government grants
1. Basic information of government grants
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Amount recognized in
Category Amount
presented current profit or loss
Other
Government grants related to assets 7,000,000.00 940,282.23
income
Government grants related to income and
Other
used for compensation of the Company’s 413,400.00 9,064,578.80
income
relevant costs or losses in subsequent periods
Government grants related to income and
used for compensation of the Company’s Other
9,748,252.41 9,748,252.41
relevant costs or losses that have been income
incurred
Financial
Interest subsidies 70,200.00 70,200.00
expenses
Note: The amount refers to government grants actually received in the current period.
2. Refund of government grants
□ Applicable √ N/A
Other description
(1) Government grants related to assets
Amortization
Opening Closing
of items
Item deferred Increase Amortization deferred
presented in the
income income
current period
8K Ultra High
Definition Laser
Display
924,464.60 3,000,000.00 485,736.78 3,438,727.82 Other income
Technology
Engineering
Research Center
Industry support
4,000,000.00 454,545.45 3,545,454.55 Other income
funds
Sub-total 924,464.60 7,000,000.00 940,282.23 6,984,182.37
(2) Government grants related to income and used for compensation of the Company’s relevant costs
or losses in subsequent periods
180 / 225
2022 Semiannual Report
Amortization
Opening Closing of items
Item deferred Increase Amortization deferred presented in
income income the current
period
Trichromatic Laser
Display Complete
Other
Equipment 8,679,443.32 8,401,504.64 277,938.68
income
Production
Demonstration Line
R&D of key
technologies for ultra
high-definition micro
Other
laser projector 663,074.16
663,074.16 income
optical engine based
on light-emitting
ceramic devices
Research of
trichromatic laser Other
413,400.00
light sources and 413,400.00 income
LCoS optical engine
Sub-total 9,342,517.48 413,400.00 9,064,578.80 691,338.68
(3) Government grants related to income and used for compensation of the Company’s relevant costs
or losses that have been incurred
Item Amount Item presented Description
Refunds of value-added taxes 3,796,493.89 Other income
Grants for maintaining job
138,849.88 Other income
position
Refund of unemployment
18,960.00 Other income
insurance
Provisions of Guangdong for
Maternity grants from
Maternity Insurance of
Shenzhen Social Security 74,980.09 Other income
Employees, Shenzhen Social
Bureau
Insurance Fund Administration
Employment Assurance List of Enterprises for Grants of
Scheme of Hong Kong 60,039.17 Other income Employment Assurance, Hong
Government Kong Government
Subsidies for properties rent of
Special support measure to help
micro- and small-sized
enterprises (individually-owned
enterprises (individually- 15,000.00 Other income
businesses) in Nanshan District
owned businesses) during 2022
in 2022
epidemic
Notice on Formalities for
Special funds for the
Allocating 2021 Special Funds
development of cultural
1,480,000.00 Other income for the Development of Cultural
industry (original research and
Industry (Original Research and
development projects)
Development Projects),
181 / 225
2022 Semiannual Report
Shenzhen City Bureau of
Culture, Radio, Television,
Tourism and Sports
Notice on Formalities of
Receiving 2021 Grants for
2021 1st settlement for grants Trademark Registration and
for trademark registration in 54,000.00 Other income Grants for Copyright
Shenzhen Registration by Shenzhen
Administration for Market
Regulation
List of Standard Activities of
Standard Field of Shenzhen in
90,000.00 Other income Shenzhen Being Granted with
2021
Special Funds in 2021
Disclosure of the List of
Sponsored Projects to be
Deliberated by the Leader
Group of Nanshan District
Independent Innovation
Subsidies for cross-border
Industry Development Special
water transportation during 5,000.00 Other income
Fund at Its Fifth Meeting in
2022 epidemic
2022 (Special Projects
Supported by District Industry
and Information Technology
Bureau in 2022)
Disclosure of the List of
Shenzhen City Nanshan
Sponsored Projects to be
District Bureau of Culture,
Deliberated by the Leader
Radio, Television, Tourism
Group of Nanshan District
and Sports (this level):
1,000,000.00 Other income Independent Innovation
incentives for “enterprises
Industry Development Special
above designated size” in the
Fund at Its Fifth Meeting in
library in culture industry with
2022 (Subitems of cultural
increase in operating income
industry development)
List of Sponsored Projects to
be Deliberated by the Leader
Group of Nanshan District
Projects to be funded under the
Independent Innovation
plan of supports for science 200,000.00 Other income
Industry Development Special
and technology rewards
Fund at Its Fifth Meeting in
2022 (Subitems of science and
technology development)
Notice on Review of
Applications for Support Funds
Support funds for “Investment
329,529.38 Other income for “Investment and Loan
and Loan Award”
Award” of Beijing Cultural
Enterprises in 2021
Announcement of Shunyi
Subsidies for cultural industry 2,485,400.00 Other income
Publicity Department on
182 / 225
2022 Semiannual Report
Publicly Collecting the 2021
Projects Supported by the
Special Funds for the
Development of Cultural
Industry in Shunyi District
Sub-total 9,748,252.41
(4) Interest subsidies
Item Amount Item presented Description
Interest subsidy for loans 70,200.00 Financial expenses
85. Others
□ Applicable √ N/A
VIII. Changes in scope of consolidation
1. Business combination not involving entities under common control
□ Applicable √ N/A
2. Business combination involving entities under common control
□ Applicable √ N/A
3. Counter purchase
□ Applicable √ N/A
4. Disposal of subsidiaries
Single disposal of investments in subsidiaries, i.e. the loss of control
□ Applicable √ N/A
Other description:
□ Applicable √ N/A
5. Changes in scope of consolidation for other reasons
Description of changes in the scope of consolidation for other reasons (e.g., new subsidiary establishment,
subsidiary liquidation, etc.) and the relevant information:
√ Applicable□ N/A
Increased scope of combination
Method of Time point of Capital Proportion of
Company
obtaining equity obtaining equity contribution contribution
Hongkong Orange
Juice Energy Newly
March 15, 2022 33.31%
Technology Co., established
Limited
Newly
Wemax Inc. March 19, 2022 33.31%
established
6. Others
□ Applicable √ N/A
183 / 225
2022 Semiannual Report
IX. Equity in other entities
1. Equity in subsidiaries
(1). Composition of enterprise group
√ Applicable□ N/A
Proportion of
Principal
Subsidiary Registration Business shareholding Acquisition
operation
Name place nature (%) method
place
Direct Indirect
Business
Shenzhen Research and combination
Appotronics Laser development involving
Display Shenzhen Shenzhen and sales of 100.00 enterprises
Technology Co., laser display under
Ltd. products common
control
Technical
research and
Appotronics development
Technology of projection
Changzhou Changzhou 100.00 Establishment
(Changzhou) Co., equipment,
Ltd. screen and
electronic
computer.
Technology
Shenzhen
development
Appotronics
and sales of
Software Shenzhen Shenzhen 100.00 Establishment
computer
Technology Co.,
software and
Ltd.
hardware
Technical
development,
sales, and
Shenzhen technical
Appotronics services for
Shenzhen Shenzhen 100.00 Establishment
Display Device display
Co., Ltd. products;
import and
export
business
Sales of laser
WEMAX LLC USA USA 100.00 Establishment
equipment
Shenzhen Development,
Appotronics consultation
Xiaoming Shenzhen Shenzhen and transfer of 100.00 Establishment
Technology Co., laser display
Ltd. technology
Shenzhen Software
Shenzhen Shenzhen 100.00 Establishment
Appotronics Home development
184 / 225
2022 Semiannual Report
Line Technology related to
Co., Ltd. semiconductor
optoelectronic
products
Software
Shenzhen development
Appotronics Laser for
Shenzhen Shenzhen 100.00 Establishment
Technology Co., semiconductor
Ltd. optoelectronic
devices
Business
combination
Tianjin Bonian No specific not involving
Film Partnership Tianjin Tianjin business 99.00 1.00 enterprises
(LP) conducted under
common
control
Technology
promotion;
Beijing Orient
computer
Appotronics
Beijing Beijing systems, 59.00 Establishment
Technology Co.,
application
Ltd.
software
services
Qingda
Information
Appotronics
technology
(Xiamen) Shenzhen Xiamen 51.00 Establishment
consulting
Technology Co.,
services
Ltd.
Formovie
(Chongqing) Technology
Innovative Chongqing Chongqing and software 39.19 Establishment
Technology Co., development
Ltd.
Fengmi (Beijing) Technology
Technology Co., Beijing Beijing and software 39.19 Establishment
Ltd. development
Chongqing
No specific
Guangbo
Chongqing Chongqing business 39.19 Establishment
Ecommerce Co.,
conducted
Ltd.
Chongqing Ewei No specific
Ecommerce Co., Chongqing Chongqing business 39.19 Establishment
Ltd. conducted
Shenzhen Orange
Technology
Juice Energy
Shenzhen Shenzhen and software 33.31 Establishment
Technology Co.,
development
Ltd.
185 / 225
2022 Semiannual Report
No specific
Hong
Formovie Limited Hong Kong business 39.19 Establishment
Kong
conducted
FORMOVIE No specific
TECHNOLOGY USA USA business 39.19 Establishment
INC conducted
Research and
development, Business
production, combination
CINEAPPO Laser
technical involving
Cinema
Beijing Beijing services, sales 24.84 38.36 enterprises
Technology
and lease of under
(Beijing) Co., Ltd.
laser cinema common
projection control
equipment
Production,
research, and
development
of
semiconductor
optoelectronic
Appotronics Hong Hong
Hong Kong products, sales 100.00 Establishment
Kong Limited Kong
and
consulting,
investment
and video
content value-
added services
Business
R&D,
combination
manufacture
involving
Appotronics USA, and sales of
USA USA 100.00 enterprises
Inc. semiconductor
under
optoelectronic
common
products
control
No specific
Cayman Cayman
JoveAI Limited business 64.29 Establishment
Islands Islands
conducted
Research and
development
JoveAI Innovation, of laser
USA USA 64.29 Establishment
Inc. display
software
system
Technical
research and
JoveAI Asia
Vietnam Vietnam development 64.29 Establishment
Company Limited
of projection
equipment,
186 / 225
2022 Semiannual Report
screen and
electronic
computer.
Hongkong Orange
Juice Energy Hong
Hong Kong Sales 33.31 Establishment
Technology Co., Kong
Limited
Wemax Inc. USA USA Sales 33.31 Establishment
Description of the difference between the proportion of shareholding and the proportion of voting
rights in a subsidiary:
Fengmi (Beijing) Technology Co., Ltd, FORMOVIE TECHNOLOGY INC, Formovie Limited,
Chongqing Ewei Ecommerce Co., Ltd , Chongqing Guangbo Ecommerce Co., Ltd. are wholly-owned
subsidiaries of Formovie (Chongqing) Innovation Technology Co., Ltd.. Shenzhen Orange Juice Energy
Technology Co., Ltd. is a wholly-owned subsidiary of Formovie (Chongqing) Innovative Technology Co.,
Ltd., Hongkong Orange Juice Energy Technology Co., Limited is a wholly-owned subsidiary of Shenzhen
Orange Juice Energy Technology Co., Ltd., and Wemax Inc. is a wholly-owned subsidiary of Hongkong
Orange Juice Energy Technology Co., Limited.
The Company and Shenzhen Fengye Investment Consulting Limited Partnership (Limited
Partnership), a party acting in concert with the Company, hold a total of 53.6250% voting rights in
Formovie (Chongqing) Innovative Technology Co., Ltd., for which the voting rights are exercised
according to the opinions of the Company. Since the voting rights are sufficient to exercise significant
influence on the resolution of the general meeting, the Company becomes the controlling shareholder of
Formovie (Chongqing) Innovative Technology Co., Ltd.
Basis for holding half of the voting rights or below but still controlling the investee, and holding over
half voting rights but having no control over the investee:
Fengmi (Beijing) Technology Co., Ltd, FORMOVIE TECHNOLOGY INC, Formovie Limited,
Chongqing Ewei Ecommerce Co., Ltd , Chongqing Guangbo Ecommerce Co., Ltd. are wholly-owned
subsidiaries of Formovie (Chongqing) Innovation Technology Co., Ltd.. Shenzhen Orange Juice Energy
Technology Co., Ltd. is a wholly-owned subsidiary of Formovie (Chongqing) Innovative Technology Co.,
Ltd., Hongkong Orange Juice Energy Technology Co., Limited is a wholly-owned subsidiary of Shenzhen
Orange Juice Energy Technology Co., Ltd., and Wemax Inc. is a wholly-owned subsidiary of Hongkong
Orange Juice Energy Technology Co., Limited.
The Company and Shenzhen Fengye Investment Consulting Limited Partnership (Limited
Partnership), a party acting in concert with the Company, hold a total of 53.6250% voting rights in
Formovie (Chongqing) Innovative Technology Co., Ltd., for which the voting rights are exercised
according to the opinions of the Company. Since the voting rights are sufficient to exercise significant
influence on the resolution of the general meeting, the Company becomes the controlling shareholder of
Formovie (Chongqing) Innovative Technology Co., Ltd.
Basis for controls over significant structured entities included in consolidation scope:
None
Basis to determine the company acts as the agent or the principal:
None
Other description:
None
(2). Significant non-wholly subsidiaries
√ Applicable □ N/A
Unit: Yuan Currency: RMB
187 / 225
2022 Semiannual Report
Profit or loss Dividends declared
Shareholding by
attributable to for distribution to Closing balance
minority
Subsidiaries minority minority of minority
shareholders
shareholders for the shareholders in the interests
Percentage (%)
current period current period
Formovie
(Chongqing)
Innovative 60.81% -27,600,522.80 0.00 8,273,599.33
Technology
Co., Ltd.
CINEAPPO
Laser Cinema
Technology 36.80% 2,342,157.88 0.00 162,326,507.23
(Beijing) Co.,
Ltd.
Description of the difference between the proportion of shareholding by minority shareholders and their
proportion of voting rights in a subsidiary:
√ Applicable □ N/A
Please refer to the above.
Other description:
□ Applicable √ N/A
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(3). Significant financial information of significant non-wholly subsidiaries
√ Applicable □ N/A
Unit: Yuan Currency: RMB
Closing balance Opening balance
Current
Subsidiaries Curren Non-current Total Non-current Total Current Non-current Total Current Non-current Total
liabilitie
t assets assets assets liabilities liabilities assets assets assets liabilities liabilities liabilities
s
Formovie
(Chongqing 915,02
48,227,60 963,254,5 696,276 254,565,9 950,842,9 923,415,1 42,178,49 965,593,6 735,633,2 172,919,8 908,553,13
) Innovative 6,931.7
2.91 34.69 ,995.25 24.23 19.48 38.40 4.73 33.13 64.62 67.39 2.01
Technology 8
Co., Ltd.
CINEAPPO
Laser
191,63
Cinema 690,147,5 881,782,1 342,380 98,296,73 440,677,4 231,461,5 738,260,9 969,722,4 377,533,5 161,248,1 538,781,66
4,575.9
Technology 57.01 33.00 ,760.18 3.62 93.80 35.13 40.26 75.39 03.17 65.77 8.94
9
(Beijing)
Co., Ltd.
Amount for the current period Amount for the prior period
Cash flow
Total Cash flow Total
Subsidiaries Operating Operating from
Net profit comprehensive from operating Net profit comprehensive
income income operating
income activities income
activities
Formovie
(Chongqing) - - -
609,588,390.19 531,216,939.04 12,761,375.30 12,761,391.07 31,963,176.54
Innovative 46,582,172.21 46,665,717.96 113,145,829.78
Technology Co., Ltd.
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CINEAPPO Laser
Cinema Technology 161,099,444.15 6,364,559.45 6,364,559.45 37,271,780.44 244,006,736.50 59,012,508.09 59,012,508.09 99,458,332.40
(Beijing) Co., Ltd.
Other description:
None
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(4). Significant limitations on use of the group assets and payment of the group debts:
□ Applicable √ N/A
(5). Financial or other support provided to structured entities included in consolidated financial
statements ：
□ Applicable √ N/A
Other description:
□ Applicable √ N/A
2. Changes of shares of owners’ equity in subsidiaries but continue to remain control over
transactions of subsidiaries
□ Applicable □ N/A
(1). Description of changes in the share in the owner's equity of subsidiaries
□ Applicable √ N/A
(2). Effect of the transaction on the minority interests and the equity attributable to owners of the
parent company
□ Applicable √ N/A
Other description
□ Applicable √ N/A
3. Equity in joint ventures or associates
√ Applicable □ N/A
(1). Significant associates or joint ventures
√ Applicable □ N/A
Unit: Yuan Currency: RMB
Proportion of Accounting
shareholding (%) treatment
Associates Principal
Registration Business method for
or joint operation
place nature investments in
ventures place Direct Indirect
joint ventures or
associates
R&D,
production,
and sales of
GDC
Asia and British digital Accounting for
Technology
North Virgin cinema 44.00 under equity
Limited
America Islands servers and method
(BVI)
cinema
management
system
Description of the difference between the proportion of shareholding and the proportion of voting rights
in joint ventures or associates:
None
Basis that the Company owns less than 20% voting rights but may exercise major impact, or that the
Company owns 20% or over voting rights but does not have major impact:
None
(2). Major financial information of significant joint ventures
□ Applicable √ N/A
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(3). Major financial information of significant associates
√ Applicable □ N/A
Unit: Yuan Currency: RMB
Closing balance/Amount Opening balance/Amount
for the current period for the prior period
GDC GDC
Current assets 545,678,168.47 648,413,809.69
Non-current assets 32,522,787.49 53,380,720.39
Total assets 578,200,955.96 701,794,530.08
Current liabilities 368,124,353.15 458,123,239.33
Non-current liabilities 14,699,712.24 25,008,058.43
Total liabilities 382,824,065.39 483,131,297.76
Minority interests
Interests attributable to shareholders of the 195,376,890.57
218,663,232.32
parent company
Share of net assets calculated by 85,965,831.85 96,211,822.22
ownership percentage
Adjustment 75,624,935.63 76,520,776.40
--Goodwill 77,772,341.43 77,772,341.43
--Unrealized profits for insider -2,147,405.80
-1,251,565.03
transactions
--Others
Carrying amount of investment of 159,724,538.60 166,676,657.87
associates
Fair values of equity investments in
associates having publicly quoted prices
Operating income 113,618,609.56 133,586,629.37
Net profit -19,899,972.82 14,713,439.07
Net profit of discontinued operations
Other comprehensive income -2,383,768.26 3,894,036.4
Total comprehensive income -22,283,741.07 18,607,475.46
Dividends received from associates in the
current year
Other description
None
(4). Summary financial information of insignificant joint ventures and associates
√ Applicable □ N/A
Unit: Yuan Currency: RMB
Closing balance/Amount for the Opening balance/Amount for the
current period prior period
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Joint ventures:
Total carrying amount of
investments
Total amounts calculated based on shareholding proportions
--Net profit
--Other comprehensive income
--Total comprehensive income
Associates:
Total carrying amount of 0.00 126,924,427.40
investments
Total amounts calculated based on shareholding proportions
--Net profit -148,672.23 1,131,089.51
--Other comprehensive income -3,495,875.44 -2,612,904.61
--Total comprehensive income -3,644,547.67 -1,481,815.09
Other description
Long-term equity investments in Cinionic Limited as an associate are transferred to others in the current
period.
(5). Descriptions of significant limitations over the ability of joint ventures or associates to
transfer funds to the Company
□ Applicable √ N/A
(6). Excessive loss of joint venture or associates
□ Applicable √ N/A
(7). Unrecognized commitment relating to investments in joint ventures
□ Applicable √ N/A
(8). Contingent liabilities relating to investments in joint ventures or associates
□ Applicable √ N/A
4. Significant joint operations
□ Applicable √ N/A
5. Interests in structured entities that are not included in consolidated financial statements
Description of structured entities that are not included in consolidated financial statements:
□ Applicable √ N/A
6. Others
□ Applicable √ N/A
X. Risks associated with financial instruments
√ Applicable □ N/A
The Company’s risk management objectives are to achieve a balance between risks and yield,
minimize the adverse impacts of risks on the Company’s operation performance, and maximize the
benefits of the shareholders and other stakeholders. Based on these risk management objectives, the
Company’s basic risk management strategy is to identify and analyze its exposure to various risks,
establish an appropriate minimum tolerance to risk, implement risk management, and monitor regularly
and effectively these exposures to ensure the risks are monitored at a certain level.
The Company is exposed to various risks associated with financial instruments in its daily routines,
primarily including credit risk, liquidity risk and market risk. The management has reviewed and approved
policies to manage these risks, summarized as below.
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(I) Credit risk
Credit risk refers to the risk that a party of the financial instrument will default on its obligations
resulting in financial loss to the counterparty.
1. Management of credit risk
(1) Evaluation method of credit risk
The Company assesses at each balance sheet date whether the credit risk of the underlying financial
instruments has increased significantly since initial recognition. In determining whether the credit risk has
increased significantly since initial recognition, the Company considers reasonable and supportable
information that is available without undue cost or effort, including qualitative and quantitative analysis
based on historical data, ranking of external credit risks and forward-looking information. The Company
compares the risk of a default occurring on a financial instrument as at the balance sheet date with the risk
of a default occurring on the financial instrument as at the date of initial recognition based on individual
financial instrument or a group of financial instruments with similar credit risk characteristic, to determine
the change of the risk of a default occurring on a financial instrument over the expected life.
The Company considers the credit risk of financial instruments has increased significantly when one
or more of the following quantitative and qualitative criteria are met:
1) The quantitative criterion primarily refers to a certain percentage of increase in the probability of
default over the remaining life of the financial instruments as of the balance sheet date when comparing
with that at initial recognition of the financial instruments;
2) The qualitative criterion includes, inter alia, adverse material changes in business or financial
conditions that are expected to cause a significant decrease in the debtor’s ability to meet its debt
obligations, and an actual or expected significant adverse change in the technological, market, economic,
or legal environment of the debtor that results in a significant decrease in the debtor’s ability to meet its
debt obligations.
(2) Definition of defaulted or credit-impaired assets
A financial asset is defined as defaulted when the financial instrument meets one or more conditions
stated as below, and the criterion of defining defaulted asset is consistent with that of defining credit-
impaired asset:
1) significant financial difficulty of the debtor;
2) a breach of contract terms with binding force by the debtor;
3) it is becoming probable that the debtor will enter bankruptcy or other financial reorganization;
4) the creditor of the debtor, for economic or contractual reasons relating to the debtor’s financial
difficulty, has granted to the debtor a concession(s) that the creditor would not otherwise consider.
2. Measurement of ECL
Key parameters to measure ECL include the probability of default, loss given default and the
exposure at default. The Company established models of the probability of default, loss given default and
the exposure at default on the basis of qualitative analysis on historical statistical data (such as counterparty
ranking, guarantee methods, collateral category, and repayment way) and forward-looking information.
3. Details of reconciliation of the opening balance and the closing balance of provision for impairment
of financial instruments can refer to the description in VII 4, 5, 6, 8, 10 and 16 of Section X.
4. Credit risk exposure and credit risk concentration
The Company’s credit risk is primarily from cash and bank balances and receivables. In order to
control the risks associated with aforementioned items, the Company has taken the following measures.
(1) Cash and bank balances
The credit risk of the Company is limited because the Company has deposited bank deposits and
other monetary funds in banks with high credit ratings.
(2) Receivables
The Company regularly evaluates the creditworthiness of its customers with deals on credit, and
selects to deal with approved and creditworthy customers subject to the results of the credit assessment
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with monitoring the balance of its receivables, so as to ensure that the Company is not exposed to
significant risk of bad debt.
No collaterals are required since the Company only deals with third parties that are approved and
creditworthy. The concentrated credit risks are managed by customers. As of June 30, 2022, the Company
is exposed to certain concentration of credit risks, as the Company’s accounts receivable from top 5
customers have accounted for 66.41% of the total balance of accounts receivable (December 31, 2020:
67.07%). The Company held no collateral or other credit ranking measures for the balance of accounts
receivable.
The maximum exposure to the Company is the carrying amount of each financial asset in the balance
sheet.
(II) Liquidity risk
Liquidity risk refers to the risk that the Company is in shortage of funds in performing obligations
that are settled by delivering cash or another financial asset. Liquidity risk may arise from an inability to
sell a financial asset at fair value as soon as possible, a counterparty’s inability to pay its contractual
liabilities, the accelerated maturity of liabilities, or an inability to generate expected cash flows.
In order to control this risk, the Company balances the continuity and flexibility of financing by using
various financing measures such as notes settlement and bank loans comprehensively and adopting both
long-term and short-term financing methods to optimize the financing structure. The Company has
received credit facilities from a number of commercial banks to satisfy its working capital requirements
and capital expenditures.
Financial liabilities classified by remaining maturity dates
Closing balance
Item Undiscounted
Carrying amount Within 1 year 1-3 years Over 3 years
contract amount
Bank
700,187,843.22 743,977,943.65 395,238,016.30 348,395,706.64 344,220.71
borrowings
Notes payable 121,047,156.20 121,047,156.20 121,047,156.20
Accounts
292,737,366.30 292,737,366.30 292,737,366.30
payable
Other payables 52,311,833.50 52,311,833.50 52,311,833.50
Lease
50,880,372.91 54,579,686.15 22,771,775.29 23,238,816.18 8,569,094.68
liabilities
Sub-total 1,217,164,572.13 1,264,653,985.80 884,106,147.59 371,634,522.82 8,913,315.39
(Continued to above table)
Closing balance of last year
Item Undiscounted
Carrying amount Within 1 year 1-3 years Over 3 years
contract amount
Bank
509,637,141.27 565,968,031.25 161,844,102.83 335,211,636.92 68,912,291.50
borrowings
Notes
144,456,001.87 144,456,001.87 144,456,001.87
payable
Accounts
409,889,533.01 409,889,533.01 409,889,533.01
payable
Other
54,115,784.80 54,115,784.80 54,115,784.80
payables
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2022 Semiannual Report
Closing balance of last year
Item Undiscounted
Carrying amount Within 1 year 1-3 years Over 3 years
contract amount
Lease
29,560,179.86 30,987,424.69 19,686,637.60 10,725,062.82 575,724.27
Liabilities
Sub-total 1,147,658,640.81 1,205,416,775.62 789,992,060.11 345,936,699.74 69,488,015.77
(III) Market risk
Market risk refers to the risk that the fair value or future cash flows of a financial instrument will
fluctuate because of changes in market prices. Market risk mainly includes interest rate risk and currency
risk.
1. Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will
fluctuate because of changes in market interest rates. The Company is exposed to the risk of fair value
interest rate due to financial instruments with a fixed interest rate and to the risk of cash value interest rate
due to financial instruments with a floating interest rate. The Company determines the proportion between
the fixed-rate financial instruments and the floating-rate financial instruments based on market conditions,
and maintains appropriate portfolios of financial instruments through regular review and monitoring. The
cash flow interest rate risk exposed to the Company relates primarily to the Company’s floating-rate
interest-bearing bank borrowings.
As of June 30, 2022, the principal of the Company’s floating-rate interest-bearing bank borrowings
amounted to RMB 481,187,843.22 (December 31, 2021: RMB 509,637,141.27). On the basis of the
assumption that the interest rate has changed 50 basic points, where all other variables are held constant,
it will bring no material impacts on the Company's total profits and shareholders’ equity.
2. Currency risk
Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in foreign exchange rates. The Company’s exposure to the currency risk is primarily
associated with the Company’s monetary assets and liabilities dominated in foreign currencies. If the
monetary assets and liabilities dominated in foreign currencies are imbalanced in a short time, the
Company will purchase and sell foreign currencies at the market exchange rate to keep the net risk
exposure acceptable.
The closing balance of the Company’s monetary assets and liabilities dominated in foreign currencies
are disclosed in VII.82 of Section X in details.
XI. Disclosure of fair value
1. The closing balance of the fair value of assets and liabilities measured at fair value
√ Applicable □ N/A
Unit: Yuan Currency: RMB
Closing balance of fair value
Item
Level 1 Level 2 Level 3 Total
I. Continuous fair value
measurement
(I) Held-for-trading
14,566,000.00 479,000,000.00 493,566,000.00
financial assets
1. Financial assets at fair
14,566,000.00 479,000,000.00 493,566,000.00
value through profit or loss
(1) Investment in debt
instrument
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(2) Investment in equity
14,566,000.00 30,000,000.00 44,566,000.00
instrument
(3) Derivative financial
assets
(4) Structural deposits 449,000,000.00 449,000,000.00
2. Designated as financial
assets at fair value through
profit or loss
(1) Investment in debt
instrument
(2) Investment in equity
instrument
(II) Other debt investments
(III) Other equity
7,075,419.38 7,075,419.38
instrument investments
(IV) Investment properties
1. Land use right for
leasing purpose
2. Buildings leased
3. Land use right held for
the purpose of transfer
after value appreciation
(V) Biological assets
1. Consumable biological
assets
2. Productive biological
assets
Receivables financing 3,289,265.10 3,289,265.10
Total assets continuously
14,566,000.00 489,364,684.48 503,930,684.48
measured at fair value
2. Basis for determining the market price of continuous and non-continuous level 1 fair value
measurement items
□ Applicable √ N/A
3. Valuation techniques and qualitative and quantitative information of key parameters adopted
for continuous and non-continuous level 2 fair value measurement items
√ Applicable □ N/A
The equity instrument investment presented stocks subscribed on the New Third Board; considering
the factors including the level of activity for trading of stocks on the New Third Board, the Company
classified stocks on the New Third Board as level 2 for the measurement of fair value, where the fair value
is determined according to the average closing price of the previous 20 trading days.
4. Valuation techniques and qualitative and quantitative information of key parameters adopted
for continuous and non-continuous level 3 fair value measurement items
√ Applicable□ N/A
No public market is available for equity instrument investments, structural deposits, receivables
financing, and investment in other equity instruments, hence the fair value of the foregoing are measured
at cost.
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2022 Semiannual Report
5. Reconciliation between opening and closing carrying amounts and sensitivity analysis of
unobservable parameters for continuous level 3 fair value measurement items
□ Applicable √ N/A
6. Where transfers among levels occurred in the period, transfer reasons and policies for
determining transfer time point for continuous fair value measurement items
□ Applicable √ N/A
7. Changes in valuation techniques in the period and reasons for changes
□ Applicable √ N/A
8. Fair value of financial assets and financial liabilities not measured at fair value
□ Applicable √ N/A
9. Others
□ Applicable √ N/A
XII. Related-party relationships and transactions
1. Parent of the Company
√ Applicable□ N/A
Unit: 0’000 Currency: RMB
Proportion of Proportion of the
the Company’s Company’s
Parent Registration Business Registered
shares held by voting right held
company place nature capital
the parent by the parent
company (%) company (%)
Shenzhen R&D and
Appotronics sales of
Shenzhen 1,000 17.62 17.62
Holdings semiconductor
Limited products
Description of the parent company of the Company
None
The ultimate controlling party of the Company is LI Yi.
Other description:
None
2. Subsidiaries of the Company
Refer to the Notes for details about the subsidiaries of the Company
√ Applicable □ N/A
Refer to the description in IX.1 of Section X for details about the subsidiaries of the Company.
3. Associates and joint ventures of the Company
Information of the significant joint ventures or associates of the Company are disclosed in the Annex.
√ Applicable □ N/A
Refer to the description in Note IX.3 of Section X for details about the associates of the Company.
Details of other joint ventures or associates having related-party transactions and balances with the
Company in the period or in prior periods:
√ Applicable □ N/A
Associates or joint ventures Relationship with the Company
Cinionic Limited Associate
GDC Technology Limited (BVI) Associate
Other description
□ Applicable √ N/A
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4. Other related parties of the Company
√ Applicable □ N/A
Other related party Relationship between other related party and the
Company
Beijing Donview Education Technology Minority shareholders holding more than 10% shares in
Co., Ltd. and its affiliates the subsidiary and their affiliates
Shenzhen YLX Technology Development Controlled by the same actual controller
Co., Ltd.
Xiaomi Communications Technologies Minority shareholders holding more than 10% shares in
Co., Ltd. and its affiliates the subsidiary and their affiliates
Minority shareholders holding more than 10% shares in
CFEC and its affiliates
the subsidiary and their affiliates
Enterprise in which the actual controller holds the post
WeCast and its affiliates
of director
Shenzhen Bevix Technology Co., Ltd. Holding more than 5% of shares in the company
Other description
None
5. Related-party transactions
(1). Sales and purchase of goods, rendering and receipt of services
Purchase of goods/receipt of services
√ Applicable □ N/A
Unit: Yuan Currency: RMB
Amount for the current Amount for the prior
Related party Subject matter
period period
Xiaomi Communications
Electronic components
Technologies Co., Ltd. and 102,666,791.40 151,065,707.11
and services
its affiliates
Power, water cooling
CFEC and its affiliates 10,702,327.46 14,313,447.67
and services
GDC and its affiliates Electronic components 5,711,956.57
WeCast and its affiliates Sale agency services 155,309.88
Beijing Donview
Education Technology Co., Maintenance services 8,962.26 9,911.50
Ltd. and its affiliates
Shenzhen YLX
Technology Development Electronic components 533,349.16
Co., Ltd.
Total 113,911,430.28 171,256,332.73
Sales of goods/rendering of services
√ Applicable □ N/A
Unit: Yuan Currency: RMB
Amount for the current Amount for the prior
Related party Subject matter
period period
Xiaomi Communications
Laser TV, smart mini
Technologies Co., Ltd. and 302,360,399.65 341,732,526.82
projector
its affiliates
199 / 225
2022 Semiannual Report
Laser light source and
CFEC and its affiliates cinema projection 16,119,369.88 42,679,705.11
services
CINIONIC and its
Cinema light source 50,666,582.80 3,130,401.43
affiliates
Beijing Donview
Education Technology Co., Education projector 1,533,749.83 686,049.45
Ltd. and its affiliates
GDC and its affiliates Cinema projectors 7,493,997.70 3,729,645.10
Laser TV, smart mini
WeCast and its affiliates -7,681,578.96 6,196,785.06
projector
Shenzhen YLX
Technology Development Electronic components 950,681.50
Co., Ltd.
Total 371,443,202.39 398,155,112.97
Description of sales and purchase of goods, rendering and receipt of services
□ Applicable √ N/A
(2). Details of trust with related parties/subcontracting and trust management/contract-issuing
Details of trust/contracting where a group entity is the trustor/main contractor:
□ Applicable √ N/A
Description of trust/subcontracting with related parties
□ Applicable √ N/A
Details of trust/contracting where a group entity is the trustor/main contractor ：
□ Applicable √ N/A
Description of management/contract-issuing with related parties
□ Applicable √ N/A
(3). Leases with related parties
The Company as the lessor:
□ Applicable √ N/A
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2022 Semiannual Report
The Company as the lessee:
√ Applicable □ N/A
Unit: Yuan Currency: RMB
Assumed interest expenses of lease
Paid rent Added use right assets
Type of leased liabilities
Lessor
assets Amount for the Amount for the prior Amount for the Amount for the Amount for the Amount for the
current period period current period prior period current period prior period
CFEC and its
Housing lease 379,304.00 605,733.32 27,641.32 52,464.37 -1,086,329.01 698,685.87
affiliates
Description of leases with related parties
□ Applicable √ N/A
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(4). Guarantees with related parties
The Company as a guarantor:
□ Applicable √ N/A
The Company as a guaranteed party:
□ Applicable √ N/A
Description of guarantees with related parties
□ Applicable √ N/A
(5). Borrowings/loans with related parties
□ Applicable √ N/A
(6). Assets transfer/debt restructuring with related parties
□ Applicable √ N/A
(7). Compensation for key management personnel
√ Applicable □ N/A
Unit: Yuan Currency: RMB
Amount for the prior
Item Amount for the current period
period
Compensation for key
469.87 659.61
management personnel
(8). Other related-party transactions
□ Applicable √ N/A
6. Amounts due from/to related parties
(1). Amounts due from related parties
√ Applicable □ N/A
Unit: Yuan Currency: RMB
Closing balance Opening balance
Item Related party Gross carrying Provision for Gross carrying Provision for bad
amount bad debts amount debts
Beijing Donview
Education
Technology Co., 900,000.00 45,000.00 912,982.89 45,649.14
Ltd. and its
affiliates
Accounts
GDC and its
receivable 7,390,544.48 369,527.22 5,159,950.72 257,997.54
affiliates
Xiaomi
Communications
Technologies 116,359,517.65 5,817,975.88 132,000,017.31 6,600,000.87
Co., Ltd. and its
affiliates
WeCast and its
13,935,573.73 696,778.69 20,597,638.81 1,029,881.92
affiliates
CFEC and its
170,737.78 8,667.92 1,019,071.79 51,248.40
affiliates
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2022 Semiannual Report
CINIONIC and
34,402,971.97 1,720,148.60 26,592,355.61 1,329,617.78
its affiliates
Sub-total / 173,159,345.61 8,658,098.31 186,282,017.13 9,314,395.65
CFEC and its
781,079.65 1,369,286.22
affiliates
Xiaomi
Prepayments
Communications
Technologies 40,000.00
Co., Ltd. and its
affiliates
Sub-total / 781,079.65 1,409,286.22
CFEC and its
185,111.00 9,255.55 229,355.00 11,467.75
affiliates
GDC and its
Other 21,342,252.00 402,684.00 20,286,601.00 383,135.75
affiliates
receivables
Xiaomi
Communications
Technologies 200,000.00 10,000.00
Co., Ltd. and its
affiliates
Sub-total / 21,727,363.00 421,939.55 20,515,956.00 394,603.50
(2). Amounts due to related parties
√ Applicable □ N/A
Unit: Yuan Currency: RMB
Item Related party Closing balance of Opening balance of carrying
carrying amount amount
CFEC and its affiliates 19,596,891.45 17,315,868.17
GDC and its affiliates 5,593.76
Xiaomi
Accounts payable
Communications
33,911,552.54 65,042,097.29
Technologies Co., Ltd.
and its affiliates
Shenzhen YLX
Technology 1,462.94 1,147,275.29
Development Co., Ltd.
Sub-total / 53,509,906.93 83,510,834.51
Notes payable CFEC and its affiliates 5,049,000.17
Sub-total / 5,049,000.17
Advance from CFEC and its affiliates
1,402,873.19 11,025,498.93
customers
Sub-total / 1,402,873.19 11,025,498.93
GDC and its affiliates 37,082.55 3,469.81
Contract liabilities
CFEC and its affiliates 1,902,665.49 4,396,474.85
Beijing Donview
Education Technology
396,411.74
Co., Ltd. and its
affiliates
203 / 225
2022 Semiannual Report
WeCast and its
127,651.23
affiliates
Xiaomi
Communications
67,136.28
Technologies Co., Ltd.
and its affiliates
Sub-total / 2,530,947.29 4,399,944.66
CFEC and its affiliates 10,000.00
Beijing Donview
Education Technology
100,000.00 10,800.00
Other payables Co., Ltd. and its
affiliates
Xiaomi
Communications
1,976.10
Technologies Co., Ltd.
and its affiliates
GDC and its affiliates 270.00
Sub-total / 110,270.00 12,776.10
GDC and its affiliates 2,224.95
CFEC and its
247,346.51
affiliates
Beijing Donview
Other current liabilities
Education Technology
51,533.53
Co., Ltd. and its
affiliates
Xiaomi
Communications
1,540,647.74 16,804,816.23
Technologies Co., Ltd.
and its affiliates
Sub-total / 1,841,752.73 16,804,816.23
7. Related party commitments
□ Applicable √ N/A
8. Others
□ Applicable √ N/A
XIII. Share-based payments
1. Summary of share-based payments
√ Applicable □ N/A
Unit: Share Currency: RMB
Item Company Formovie
Total number of the Company’s equity
11,900,000
instruments granted during the period
Total number of the Company’s equity
instruments executed during the period
Total number of the Company’s equity
2,708,860.00
instruments lapsed during the period
204 / 225
2022 Semiannual Report
Grant date: October 14, 2019; grant price:
RMB 17.265/share; 4 months
Grant date: October 13, 2020; grant price:
RMB 17.265/share; 4 months
Grant date: January 1, 2021; grant price:
RMB 4.30/share; 6 months
Grant date: April 22, 2021; grant price:
RMB 20.84/share; 21 months
Grant date: April 22, 2021; grant price:
RMB 18.34/share; 21 months Grant date:
Range of exercise prices and remaining Grant date: April 22, 2021; grant price: December 31,
contractual life of the Company’s share RMB 17.34/share; 21 months 2021; grant
options outstanding at the end of the Grant date: December 7, 2021; grant price: RMB
period price: RMB 19.895/share; 29 months 1/share; 48
Grant date: December 7, 2021; grant months
price: RMB 22.895/share; 29 months
Grant date: March 11, 2022; grant price:
RMB 18.34/share; 21 months
Grant date: March 11, 2022; grant price:
RMB 19.895/share; 21 months
Grant date: March 11, 2022; grant price:
RMB 22.895/share; 29 months
Grant date: May 25, 2022; grant price:
RMB 15.395/share; 23 months
Range of exercise prices and remaining
contractual life of the Company’s other
None None
equity instruments outstanding at the
end of the period
Other description
None
2. Equity-settled share-based payments
√ Applicable □ N/A
Unit: Yuan Currency: RMB
Item Company Formovie
The method of determining the fair value of Evaluation of all
Option pricing
equity instruments at the grant date shareholder’s equity
model
interests
The basis of determining the number of equity Actual grant
Actual grant amount
instruments expected to be executed amount
Reasons for the significant difference between
the estimate in the current period and that in the None None
prior period
Amounts of equity-settled share-based payments
116,375,739.84 10,998,484.23
accumulated in capital reserve
Total expenses recognized arising from equity-
43,682,773.93 594,999.63
settled share-based payments
Other description
None
205 / 225
2022 Semiannual Report
3. Cash-settled share-based payments
□ Applicable √ N/A
4. Modification to and termination of share-based payments
□ Applicable √ N/A
5. Others
□ Applicable √ N/A
XIV. Commitments and contingencies
1. Significant commitments
√ Applicable □ N/A
Significant external commitments, and nature and amount thereof as of the balance sheet date
Significant lease contracts which the Company has entered into or will perform and their financial
impacts are disclosed in the following table:
Rent area
N Rent Rent
Rent address (square Rent period
o. purpose expense/year
meters)
Research
20/F, 21/F, 22/F, United and
Headquarter Building, High- develop From January 1,
1 Tech Zone, No. 63 Xuefu 5,808.79 ment, 2022 to December 5,310,893.71
Road, Nanshan District, office 31, 2026
Shenzhen administr
ation
Yaochuan Industrial Zone,
From December 1,
Tangwei Community, Fuhai
2 23,765.57 Plant 2018 to November 12,319,285.88
Street, Bao’an District,
30, 2022
Shenzhen
2. Contingencies
(1). Significant contingencies as of the balance sheet date
√ Applicable □ N/A
Pending litigation
1. Civil litigation and arbitration where the Company acted as the plaintiff
As of June 30, 2022, there are 24 civil litigation cases where the Company acted as a plaintiff,
specifically including:
Cause of Plaintiff/Appella Patents
Case No. Defendant/Appelee Amount Progress
action nt involved
(1)
Defendant 1: Delta Compensation
Electronics (Shanghai) Co., amount
(2019) Yue 03
Ltd.; decided in the
Min Chu No. Infringem
Appotronics Defendant 2: Delta Video RMB trial of the
2943 ent on 2008100652
Corporation Display System (Wujiang) 8.00 first instance:
(2021) Zui Gao patent for 25.X
Limited Limited; million RMB
Fa Zhi Min invention
Defendant 3: Shenzhen 271,399.40;
Zhong No. 1582
Super Network Technology (2) Under trial
Co., Ltd. of the second
instance
206 / 225
2022 Semiannual Report
(1)
Defendant 1: Delta Compensation
Electronics (Shanghai) Co., amount
(2019) Yue 03
Ltd.; decided in the
Min Chu No. Infringem
Appotronics Defendant 2: Delta Video RMB trial of the
2944 ent on 2008100652
Corporation Display System (Wujiang) 8.00 first instance:
(2021) Zui Gao patent for 25.X
Limited Limited; million RMB
Fa Zhi Min invention
Defendant 3: Shenzhen 501,399.40;
Zhong No. 1718
Super Network Technology (2) Under trial
Co., Ltd. of the second
instance
(1)
Defendant 1: Delta Compensation
Electronics (Shanghai) Co., amount
(2019) Yue 03
Ltd.; decided in the
Min Chu No. Infringem
Appotronics Defendant 2: Delta Video RMB trial of the
2946 ent on 2008100652
Corporation Display System (Wujiang) 4.00 first instance:
(2022) Zui Gao patent for 25.X
Limited Limited; million RMB
Fa Zhi Min invention
Defendant 3: Shenzhen 151,399.40;
Zhong No. 161
Super Network Technology (2) Under trial
Co., Ltd. of the second
instance
(1)
Defendant 1: Delta Compensation
Electronics (Shanghai) Co., amount
(2019) Yue 03
Ltd.; decided in the
Min Chu No. Infringem
Appotronics Defendant 2: Delta Video RMB trial of the
2948 ent on 2008100652
Corporation Display System (Wujiang) 4.00 first instance:
(2021) Zui Gao patent for 25.X
Limited Limited; million RMB
Fa Zhi Min invention
Defendant 3: Shenzhen 146,399.40;
Zhong No. 1548
Super Network Technology (2) Under trial
Co., Ltd. of the second
instance
(1)
Defendant 1: Delta Compensation
Electronics (Shanghai) Co., amount
(2019) Yue 03
Ltd.; decided in the
Min Chu No. Infringem
Appotronics Defendant 2: Delta Video RMB trial of the
2951 ent on 2008100652
Corporation Display System (Wujiang) 4.00 first instance:
(2021) Zui Gao patent for 25.X
Limited Limited; million RMB
Fa Zhi Min invention
Defendant 3: Shenzhen 581,399.40;
Zhong No. 1550
Super Network Technology (2) Under trial
Co., Ltd. of the second
instance
Defendant 1: Delta Video
Display System (Wujiang)
Limited
RMB
Defendant 2: WANG Yuhai
3.00
Defendant 3: Hunan Dehao
million
Infringem Cultural and Creative Co.,
(2020) Yue 73 Appotronics and right Under trial of
ent on Ltd. ZL20088010
Min Chu No. Corporation protection the first
patent for Defendant 4: Delta 7739.5
1335 Limited expenses instance
invention Electronics Business
of RMB
Management (Shanghai) Co.,
0.50
Ltd.
million
Defendant 5: Guangdong
Jianye Display Information
Technology Co., Ltd.
207 / 225
2022 Semiannual Report
Defendant 6: Guangzhou
Jianye Network Technology
Co., Ltd.
Defendant 1: Delta Video
Display System (Wujiang)
Limited
Defendant 2: WANG Yuhai
Defendant 3: Hunan Dehao RMB
Cultural and Creative Co., 6.50
Ltd. million
Infringem
(2020) Yue 73 Appotronics Defendant 4: Delta and right Under trial of
ent on ZL20088010
Min Chu No. Corporation Electronics Business protection the first
patent for 7739.5
1336 Limited Management (Shanghai) Co., expenses instance
invention
Ltd. of RMB
Defendant 5: Guangdong 0.50
Jianye Display Information million
Technology Co., Ltd.
Defendant 6: Guangzhou
Jianye Network Technology
Co., Ltd.
Defendant 1: Delta Video
Display System (Wujiang)
Limited
Defendant 2: WANG Yuhai
Defendant 3: Hunan Dehao RMB
Cultural and Creative Co., 2.50
Ltd. million
Infringem
(2020) Yue 73 Appotronics Defendant 4: Digital and right Under trial of
ent on ZL20088010
Min Chu No. Corporation Protection (Beijing) protection the first
patent for 7739.5
1337 Limited Electronics Technology Co., expenses instance
invention
Ltd. of RMB
Defendant 5: Guangdong 0.50
Jianye Display Information million
Technology Co., Ltd.
Defendant 6: Guangzhou
Jianye Network Technology
Co., Ltd.
Defendant 1: Delta Video
Display System (Wujiang)
Limited
Defendant 2: WANG Yuhai
Defendant 3: Hunan Dehao RMB
Cultural and Creative Co., 2.00
Ltd. million
Infringem
(2020) Yue 73 Appotronics Defendant 4: Delta and right Under trial of
ent on ZL20088010
Min Chu No. Corporation Electronics Business protection the first
patent for 7739.5
1338 Limited Management (Shanghai) Co., expenses instance
invention
Ltd. of RMB
Defendant 5: Guangdong 0.50
Jianye Display Information million
Technology Co., Ltd.
Defendant 6: Guangzhou
Jianye Network Technology
Co., Ltd.
208 / 225
2022 Semiannual Report
Defendant 1: Delta Video
Display System (Wujiang)
Limited
Defendant 2: WANG Yuhai
Defendant 3: Hunan Dehao RMB
Cultural and Creative Co., 6.00
Ltd. million
Infringem
(2020) Yue 73 Appotronics Defendant 4: Digital and right Under trial of
ent on ZL20088010
Min Chu No. Corporation Protection (Beijing) protection the first
patent for 7739.5
1340 Limited Electronics Technology Co., expenses instance
invention
Ltd. of RMB
Defendant 5: Guangdong 0.50
Jianye Display Information million
Technology Co., Ltd.
Defendant 6: Guangzhou
Jianye Network Technology
Co., Ltd.
Defendant 1: Delta Video
Display System (Wujiang)
Limited
Defendant 2: WANG Yuhai
Defendant 3: Hunan Dehao RMB
Cultural and Creative Co., 14.00
Ltd. million
Infringem
(2020) Yue 73 Appotronics Defendant 4: Delta and right Under trial of
ent on ZL20088010
Min Chu No. Corporation Electronics Business protection the first
patent for 7739.5
1341 Limited Management (Shanghai) Co., expenses instance
invention
Ltd. of RMB
Defendant 5: Guangdong 0.50
Jianye Display Information million
Technology Co., Ltd.
Defendant 6: Guangzhou
Jianye Network Technology
Co., Ltd.
Defendant 1: Delta
Electronics Business
Management (Shanghai) Co.,
RMB
Ltd.
0.75
Defendant 2: WANG Yuhai
million
Infringem Defendant 3: Hunan Dehao
(2020) Yue 73 Appotronics and right Under trial of
ent on Cultural and Creative Co., ZL20088010
Min Chu No. Corporation protection the first
patent for Ltd. 7739.5
1361 Limited expenses instance
invention Defendant 4: Guangdong
of RMB
Jianye Display Information
0.50
Technology Co., Ltd.
million
Defendant 5: Guangzhou
Jianye Network Technology
Co., Ltd.
Defendant 1: Delta
RMB
Electronics Business
0.75
Management (Shanghai) Co.,
million
Infringem Ltd.
(2020) Yue 73 Appotronics and right Under trial of
ent on Defendant 2: WANG Yuhai ZL20081006
Min Chu No. Corporation protection the first
patent for Defendant 3: Hunan Dehao 5225.X
1339 Limited expenses instance
invention Cultural and Creative Co.,
of RMB
Ltd.
0.50
Defendant 4: Guangdong
million
Jianye Display Information
209 / 225
2022 Semiannual Report
Technology Co., Ltd.
Defendant 5: Guangzhou
Jianye Network Technology
Co., Ltd.
Defendant 1: Delta Video
Display System (Wujiang)
Limited
Defendant 2: WANG Yuhai
Defendant 3: Hunan Dehao RMB
Cultural and Creative Co., 14.00
Ltd. million
Infringem
(2020) Yue 73 Appotronics Defendant 4: Delta and right Under trial of
ent on ZL20081006
Min Chu No. Corporation Electronics Business protection the first
patent for 5225.X
1353 Limited Management (Shanghai) Co., expenses instance
invention
Ltd. of RMB
Defendant 5: Guangdong 0.50
Jianye Display Information million
Technology Co., Ltd.
Defendant 6: Guangzhou
Jianye Network Technology
Co., Ltd.
Defendant 1: Delta Video
Display System (Wujiang)
Limited
Defendant 2: WANG Yuhai
Defendant 3: Hunan Dehao RMB
Cultural and Creative Co., 6.00
Ltd. million
Infringem
(2020) Yue 73 Appotronics Defendant 4: Digital and right Under trial of
ent on ZL20081006
Min Chu No. Corporation Protection (Beijing) protection the first
patent for 5225.X
1355 Limited Electronics Technology Co., expenses instance
invention
Ltd. of RMB
Defendant 5: Guangdong 0.50
Jianye Display Information million
Technology Co., Ltd.
Defendant 6: Guangzhou
Jianye Network Technology
Co., Ltd.
Defendant 1: Delta Video
Display System (Wujiang)
Limited
Defendant 2: WANG Yuhai
Defendant 3: Hunan Dehao RMB
Cultural and Creative Co., 6.50
Ltd. million
Infringem
(2020) Yue 73 Appotronics Defendant 4: Delta and right Under trial of
ent on ZL20081006
Min Chu No. Corporation Electronics Business protection the first
patent for 5225.X
1356 Limited Management (Shanghai) Co., expenses instance
invention
Ltd. of RMB
Defendant 5: Guangdong 0.50
Jianye Display Information million
Technology Co., Ltd.
Defendant 6: Guangzhou
Jianye Network Technology
Co., Ltd.
210 / 225
2022 Semiannual Report
Defendant 1: Delta Video
Display System (Wujiang)
Limited
Defendant 2: WANG Yuhai
Defendant 3: Hunan Dehao RMB
Cultural and Creative Co., 2.50
Ltd. million
Infringem
(2020) Yue 73 Appotronics Defendant 4: Digital and right Under trial of
ent on ZL20081006
Min Chu No. Corporation Protection (Beijing) protection the first
patent for 5225.X
1357 Limited Electronics Technology Co., expenses instance
invention
Ltd. of RMB
Defendant 5: Guangdong 0.50
Jianye Display Information million
Technology Co., Ltd.
Defendant 6: Guangzhou
Jianye Network Technology
Co., Ltd.
Defendant 1: Delta Video
Display System (Wujiang)
Limited
Defendant 2: WANG Yuhai
Defendant 3: Hunan Dehao RMB
Cultural and Creative Co., 2.00
Ltd. million
Infringem
(2020) Yue 73 Appotronics Defendant 4: Delta and right Under trial of
ent on ZL20081006
Min Chu No. Corporation Electronics Business protection the first
patent for 5225.X
1358 Limited Management (Shanghai) Co., expenses instance
invention
Ltd. of RMB
Defendant 5: Guangdong 0.50
Jianye Display Information million
Technology Co., Ltd.
Defendant 6: Guangzhou
Jianye Network Technology
Co., Ltd.
Defendant 1: Delta Video
Display System (Wujiang)
Limited
Defendant 2: WANG Yuhai
Defendant 3: Hunan Dehao RMB
Cultural and Creative Co., 3.00
Ltd. million
Infringem
(2020) Yue 73 Appotronics Defendant 4: Delta and right Under trial of
ent on ZL20081006
Min Chu No. Corporation Electronics Business protection the first
patent for 5225.X
1359 Limited Management (Shanghai) Co., expenses instance
invention
Ltd. of RMB
Defendant 5: Guangdong 0.50
Jianye Display Information million
Technology Co., Ltd.
Defendant 6: Guangzhou
Jianye Network Technology
Co., Ltd.
Defendant 1: Delta Video RMB
Display System (Wujiang) 3.00
Infringem
(2020) Yue 73 Appotronics Limited million Under trial of
ent on ZL20081006
Min Chu No. Corporation Defendant 2: WANG Yuhai and right the first
patent for 5225.X
1360 Limited Defendant 3: Hunan Dehao protection instance
invention
Cultural and Creative Co., expenses
Ltd. of RMB
211 / 225
2022 Semiannual Report
Defendant 4: Digital 0.50
Protection (Beijing) million
Electronics Technology Co.,
Ltd.
Defendant 5: Guangdong
Jianye Display Information
Technology Co., Ltd.
Defendant 6: Guangzhou
Jianye Network Technology
Co., Ltd.
Maliciousl
y initiate
(2021) Yue 73 Appotronics RMB Under trial of
an Defendant: Delta Electronics,
Min Chu No. Corporation / 10.00 the first
intellectua Inc.
1860 Limited million instance
l property
litigation
RMB
219,900
Dispute and the
(2022) Yue Appotronics Defendant: Shenzhen Under trial of
over the costs for
0305 Min Chu Corporation Creality 3D Technology Co., / the first
sales litigation
No. 10069 Limited Ltd. instance
contract and
preservati
on.
RMB
Qingda 214,800
Dispute
Appotronics Defendant: Yunzhi Feiyang and other
over the Under trial of
XA20220598 (Xiamen) (Beijing) Network / expenses
sales arbitration
Technology Co., Technology Co., Ltd. including
contract
Ltd. arbitratio
n costs
Arbitratio
n of
dispute
Counter-
over the Counter-respondents:
claimants:
implement GDC Technology Limited
Appotronics
ation of (Cayman Islands), GDC
01-22-0001- Hong Kong USD 40
the Technology Limited (British / Pending trial
2735 Limited and million
Settlement Virgin Islands), actual
Appotronics
Agreemen controller ZHANG Wanneng
Corporation
t and and his management team
Limited
arbitration
countercla
ims
2. Civil litigation and arbitration where the Company acted as the defendant
As of June 30, 2022, there are 8 civil litigations where the Company was a defendant, specifically
including:
Amount
Case No. Cause of action Plaintiff Defendant Patents involved Progress
involved
Appotronics Loss
Corporation compensation of
(2019) Yue 73 Infringement Delta Limited; Futian RMB 16.00 Under trial
Zhi Min Chu on patent for Electronics, SPN Projector ZL201610387831.8 million + right of the first
No. 662 invention Inc. & Video protection instance
System Firm of expenses of
Shenzhen RMB 14,500.00
212 / 225
2022 Semiannual Report
Amount
Case No. Cause of action Plaintiff Defendant Patents involved Progress
involved
The
judgment of
the first
Loss
Fengmi instance in
compensation of
(Beijing) January
RMB 15.00
(2019) Jing 73 Technology 2022 held
million + right
Min Chu Co., Ltd.; ZL201410249663.7 that no
protection
No.1275 Appotronics infringement
expenses of
Corporation is
RMB 1.01
Limited constituted,
million
under trial
of the
second trial
The
judgment of
the first
Loss
Fengmi instance in
compensation of
(Beijing) January
RMB 15.00
(2019) Jing 73 Technology 2022 held
million + right
Min Chu No. Co., Ltd.; ZL201610387831.8 that no
protection
1276 Appotronics infringement
expenses of
Corporation is
RMB 1.01
Limited constituted,
million
under trial
of the
second trial
Loss
Appotronics
compensation of
Corporation
RMB 15.00
(2021) Hu 73 Limited and Under trial
million + right
Zhi Min Chu Shanghai ZL201110041436.1 of the first
protection
No. 1070 Haichi Digital instance
expenses of
Technology
RMB 1.01
Co., Ltd.
million
Loss
compensation of
RMB 15.00
(2021) Chuan Under trial
million + right
01 Zhi Min Chu ZL201610387831.8 of the first
Appotronics protection
No. 685 instance
Corporation expenses of
Limited; RMB 1.01
Chengdu Jinxi million
Guangxian Loss
Information compensation of
Technology RMB 15.00
(2021) Chuan Under trial
Co., Ltd. million + right
01 Zhi Min Chu ZL201110041436.1 of the first
protection
No. 686 instance
expenses of
RMB 1.01
million
213 / 225
2022 Semiannual Report
Amount
Case No. Cause of action Plaintiff Defendant Patents involved Progress
involved
Defendant 1:
Shenzhen
Appotronics
Xiaoming
Technology
Co., Ltd. Requesting
Dispute over
(2022) Zhe 01 Wanbo Defendant 2: compensation in Under trial
infringement
Min Chu No. Technology Fengmi ZL201930556138.3 the amount of: of the first
on patent for
157 Co., Ltd. (Beijing) RMB 3.00 instance
design
Technology million
Co., Ltd.
Defendant 3:
Zhejiang Tmall
Network Co.,
Ltd.
Claimants:
GDC
Arbitration of
Technology
dispute over Respondents:
Limited
the Appotronics
(Cayman
implementation Hong Kong
01-22-0001- Islands)
of the Limited and / USD 38 million Pending trial
2735 and GDC
Settlement Appotronics
Technology
Agreement and Corporation
Limited
arbitration Limited
(British
counterclaims
Virgin
Islands)
(2). Description shall also be provided even if the Company has no significant contingencies to be
disclosed:
□ Applicable √ N/A
3. Others
□ Applicable √ N/A
XV. Events after the balance sheet date
1. Material non-adjusting event
√ Applicable □ N/A
Unit: Yuan Currency: RMB
Effects on the financial
Reasons for not being
Item Content position and operating
able to estimate such
results
effects
A total of 2,881,497
The paid-in share
shares in the first
capital increases by
vesting period meets
RMB 2,881,497.00 and
Issuance of stocks and the vesting criteria for
the capital reserve
bonds the initial grant under
(share premium)
the 2021 Restricted
increases by RMB
Share Incentive Plan,
48,352,137.36
and the formalities for
214 / 225
2022 Semiannual Report
such shares completed
on July 13, 2022.
2. Profit distribution
□ Applicable √ N/A
3. Sales return
□ Applicable √ N/A
4. Description of other events after the balance sheet date
□ Applicable √ N/A
XVI. Other significant events
1. Corrections of prior period errors
(1). Retrospective application
□ Applicable √ N/A
(2). Prospective application
□ Applicable √ N/A
2. Debt restructuring
□ Applicable √ N/A
3. Asset swap
(1). Exchange of non-monetary assets
□ Applicable √ N/A
(2). Other asset swap
□ Applicable √ N/A
4. Annuity plan
□ Applicable √ N/A
5. Discontinued operations
□ Applicable √ N/A
6. Segment reporting
(1). Determination basis and accounting policies of reporting segments
□ Applicable √ N/A
(2). Financial information of reporting segments
□ Applicable √ N/A
(3). If the Company has no reporting segments, or cannot disclose the total assets and liabilities of
reporting segments, specify the reasons
√ Applicable□ N/A
The Company has no reporting segments due to absence of diversified operations. A breakdown of
the Company’s principal operating incomes and costs categorized by businesses, products and regions is
disclosed as below:
Categorized by businesses and products:
Unit: RMB0’000
Amount of the current period Amount of the prior period
Item Principal operating Principal operating Principal operating Principal operating
income cost income cost
Sales 113,156.62 81,850.58 91,163.98 65,553.48
215 / 225
2022 Semiannual Report
Amount of the current period Amount of the prior period
Item Principal operating Principal operating Principal operating Principal operating
income cost income cost
Projection services 13,521.49 6,474.67 18,565.59 6,437.12
Other business 254.11 130.82 739.35 370.63
Sub-total 126,932.22 88,456.06 110,468.92 72,361.23
Categorized by regions:
Unit: RMB0’000
Amount of the current period Amount of the prior period
Item Principal operating Principal operating Principal operating Principal operating
income cost income cost
Domestic 111,764.66 79,898.99 105,208.67 69,458.21
Overseas 15,167.56 8,557.07 5,260.25 2,903.02
Sub-total 126,932.22 88,456.06 110,468.92 72,361.23
(4). Other description
□ Applicable √ N/A
7. Other significant transactions and matters having an impact on the decisions of investors
□ Applicable √ N/A
8. Others
□ Applicable √ N/A
XVII. Notes to key items in the parent company’s financial statements
1. Accounts receivable
(1). Disclosure by aging
√ Applicable □ N/A
Unit: Yuan Currency: RMB
Aging Closing balance of carrying amount
Within 1 year
Including: Subitems within 1 year
Sub-total of items within 1 year 649,298,212.29
1 to 2 years 23,341,733.24
2 to 3 years 3,148,153.35
Total 675,788,098.88
216 / 225
2022 Semiannual Report
(2). Disclosure by categories of provision for bad debts
√ Applicable □ N/A
Unit: Yuan Currency: RMB
Closing balance Opening balance
Carrying
Gross carrying amount Provision for bad debts Gross carrying amount Provision for bad debts
amount
Category Percentage Carrying Percentage
Percentage of amount Percentage of
Amount Amount Amount Amount
(%) provision (%) provision
(%) (%)
Provision for
bad debts
made
individually
Including:
Provision for
bad debts
675,788,098.88 100.00 6,371,273.75 0.94 669,416,825.13 621,699,280.41 100.00 5,483,110.45 0.88 616,216,169.96
made by
group
Including:
Group of
122,652,853.97 18.15 6,371,273.75 5.19 116,281,580.22 109,178,209.03 17.56 5,483,110.45 5.02 103,695,098.58
aging
Group of
receivables
from related
553,135,244.91 81.85 553,135,244.91 512,521,071.38 82.44 512,521,071.38
parties in the
scope of
consolidation
Total 675,788,098.88 100.00 6,371,273.75 0.94 669,416,825.13 621,699,280.41 100.00 5,483,110.45 0.88 616,216,169.96
Provision for bad debts made individually:
□ Applicable √ N/A
Provision for bad debts made by group:
√ Applicable □ N/A
Unit: Yuan Currency: RMB
Closing balance
Name Percentage of provision
Accounts receivable Provision for bad debts
(%)
Group of aging 122,652,853.97 6,371,273.75 5.19
Group of receivables
from related parties
553,135,244.91 0.00
in the scope of
consolidation
Total 675,788,098.88 6,371,273.75 0.94
Recognition criterion to make the provision for bad debts by group and explanation:
□ Applicable √ N/A
217 / 225
2022 Semiannual Report
If a provision for bad debts of accounts receivable is made in accordance with the general model of
ECL, please disclose relevant information subject to the disclosure of the provision for bad debts for
other receivables:
□ Applicable √ N/A
(3). Provision for bad debts
√ Applicable □ N/A
Unit: Yuan Currency: RMB
Changes for the current period
Opening Recovery Closing
Category Write off or Other
balance Provision or balance
cancellation changes
reversal
Provision
for bad
5,483,110.45 888,163.30 6,371,273.75
debts made
by group
Total 5,483,110.45 888,163.30 6,371,273.75
Including significant amounts recovered or reversed from the current provision for bad debts:
□ Applicable √ N/A
(4). Accounts receivable actually canceled in the current period
□ Applicable √ N/A
(5). Top five closing balances of accounts receivable categorized by debtors
√ Applicable □ N/A
Proportion to the total
Closing balance of
closing balance of
Entity Closing balance provision for bad
accounts receivable
debts
(%)
Top 1 217,442,090.82 32.18
Top 2 119,295,011.51 17.65
Top 3 111,493,328.28 16.50
Top 4 70,204,911.89 10.39
Top 5 33,135,753.04 4.90 1,711,165.15
Total 551,571,095.54 81.62 1,711,165.15
(6). Accounts receivable derecognized due to transfer of financial assets
□ Applicable √ N/A
(7). Assets and liabilities arising from transfer of accounts receivable and continued involvement
□ Applicable √ N/A
Other description:
□ Applicable √ N/A
2. Other receivables
Presented by items
√ Applicable □ N/A
Unit: Yuan Currency: RMB
218 / 225
2022 Semiannual Report
Item Closing balance Opening balance
Interest receivable
Dividends receivable
Other receivables 11,109,739.71 6,645,181.15
Total 11,109,739.71 6,645,181.15
Other description:
□ Applicable √ N/A
Interest receivable
(1). Categories of interest receivable
□ Applicable √ N/A
(2). Significant interests overdue
□ Applicable √ N/A
(3). Provision for bad debts
□ Applicable √ N/A
Other description:
□ Applicable √ N/A
(4). Dividends receivable
□ Applicable √ N/A
(5). Dividends receivable with significant amounts aged more than 1 year
□ Applicable √ N/A
(6). Provision for bad debts
□ Applicable √ N/A
Other description:
□ Applicable √ N/A
Other receivables
(7). Disclosure by aging
√ Applicable □ N/A
Unit: Yuan Currency: RMB
Aging Closing balance of carrying amount
Within 1 year
Including: Subitems within 1 year
Sub-total of items within 1 year 7,723,237.58
1 to 2 years
2 to 3 years 3,687,618.00
Total 11,410,855.58
(8). Categories by the nature of other receivables
√ Applicable □ N/A
Unit: Yuan Currency: RMB
Closing balance of carrying Opening balance of carrying
Nature of receivables
amount amount
Deposits/margins/petty cash 5,909,756.01 5,855,101.09
Receivables from related parties
5,388,538.01 912,569.02
in the scope of consolidation
Temporary receivables 112,561.56 207,998.50
219 / 225
2022 Semiannual Report
Total 11,410,855.58 6,975,668.61
(9). Provision for bad debts
√ Applicable □ N/A
Unit: Yuan Currency: RMB
Stage I Stage II Stage III
Provision for bad Lifetime ECL Total
12-month ECL Lifetime ECL (with
debts (without credit
in the future credit impairment)
impairment)
Balance as at
296,321.86 34,165.60 330,487.46
January 1, 2022
Balance as at
January 1, 2022 in
the current period
--transferred to
Stage II
--transferred to
Stage III
--reversed to
Stage II
--reversed to
Stage I
Provision 4,794.01 -34,165.60 -29,371.59
Reversal
Write-off
Cancellation
Other changes
Balance as at June
301,115.87 301,115.87
30, 2022
Description of significant changes in the balance of other receivables with changed provisions for losses
in the current period:
□ Applicable √ N/A
Basis for recognizing the amount of provision for bad debts and evaluating whether the credit risk of
financial instruments has been increased significantly in the current period:
□ Applicable √ N/A
(10). Provision for bad debts
√ Applicable □ N/A
Unit: Yuan Currency: RMB
Changes for the current period
Opening Recovery Closing
Category Write off or Other
balance Provision or balance
cancellation changes
reversal
Provision for
330,487.46 -29,371.59 301,115.87
bad debts
220 / 225
2022 Semiannual Report
made by
group
Total 330,487.46 -29,371.59 301,115.87
Including significant amounts recovered or reversed from the current provision for bad debts:
□ Applicable √ N/A
(11). Other receivables actually canceled in the current period
□ Applicable √ N/A
Description of other receivables cancellation:
□ Applicable √ N/A
(12). Top five closing balances of other receivables categorized by debtors
√ Applicable □ N/A
Unit: Yuan Currency: RMB
Proportion to the Provision for
Nature of other Closing
Entity Aging balance of other bad debts
receivables balance
receivables (%) Closing balance
Receivables from
Within 1
Top 1 related parties in the 4,561,858.65 39.98
year
scope of consolidation
Deposits/margins/petty Over 3
Top 2 3,574,618.00 31.33 178,730.90
cash years
2-3 years,
Deposits/margins/petty
Top 3 1,257,075.20 over 3 11.02 62,853.76
cash
years
Receivables from
Within 1
Top 4 related parties in the 691,051.81 6.06
year
scope of consolidation
Deposits/margins/petty
Top 5 500,000.00 2-3 years 4.38 25,000.00
cash
Total / 10,584,603.66 / 92.77 266,584.66
(13). Accounts receivable involving government grants
□ Applicable √ N/A
(14). Other receivables derecognized due to transfer of financial assets
□ Applicable √ N/A
(15). Assets and liabilities arising from transfer of other receivables and continued involvement
□ Applicable √ N/A
Other description:
□ Applicable √ N/A
3. Long-term equity investments
√ Applicable □ N/A
Unit: Yuan Currency: RMB
Closing balance Opening balance
Item Gross carrying Provision for Carrying Gross carrying Provision for Carrying
amount impairment amount amount impairment amount
Investments
460,313,745.55 12,827,792.79 447,485,952.76 453,386,804.91 12,827,792.79 440,559,012.12
in subsidiaries
221 / 225
2022 Semiannual Report
Investments
in associates
and joint
ventures
Total 460,313,745.55 12,827,792.79 447,485,952.76 453,386,804.91 12,827,792.79 440,559,012.12
(1) Investments in subsidiaries
√ Applicable □ N/A
Unit: Yuan Currency: RMB
Closing
Provision
balance of
Opening Closing for
Investees Increase Decrease provision
balance balance impairme
for
nt
impairment
CINEAPPO
Laser Cinema
40,023,897.8 4,488,535. 44,512,433.5
Technology
9 66 5
(Beijing) Co.,
Ltd.
Shenzhen
Appotronics
272,764.
Software 1,763,700.01 1,490,935.08
93
Technology
Co., Ltd.
Beijing Orient
Appotronics
5,900,000.00 5,900,000.00
Technology
Co., Ltd.
Shenzhen
Appotronics
12,000,000.0 12,000,000.0 12,000,000.
Xiaoming
0 0 00
Technology
Co., Ltd.
Fengmi
(Beijing)
3,285,537.50 242,168.82 3,527,706.32
Technology
Co., Ltd.
Qingda
Appotronics
(Xiamen) 5,100,000.00 5,100,000.00 827,792.79
Technology
Co., Ltd.
Shenzhen
Appotronics
18,966,857.2 18,966,857.2
Laser Display
6 6
Technology
Co., Ltd.
222 / 225
2022 Semiannual Report
Appotronics
303,045,217. 1,676,517. 304,721,734.
HongKong
02 72 74
Limited
JOVEAI
769,778.40 7,580.21 762,198.19
Innovation
Appotronics
Technology
2,000,000.00 2,000,000.00
(Changzhou)
Co., Ltd.
Shenzhen
Appotronics
Display 3,000,000.00 3,000,000.00
Device Co.,
Ltd.
WEMAX LLC -
APPOTRONI 399,600.
399,600.01
CS USA,INC. 01
Tianjin Bonian
Film 26,954,120.2 26,954,120.2
Partnership 0 0
(LP)
Formovie
(Chongqing)
30,178,096.6 1,199,663. 31,377,760.2
Innovative
2 59 1
Technology
Co., Ltd.
453,386,804. 7,606,885. 679,945. 460,313,745. 12,827,792.
Total
91 79 15 55 79
(2) Investments in associates and joint ventures
□ Applicable √ N/A
Other description:
□ Applicable √ N/A
4. Operating income and operating costs
(1). Description of operating income and operating costs
√ Applicable □ N/A
Unit: Yuan Currency ： RMB
Amount for the current period Amount for the prior period
Item
Income Cost Income Cost
Main business 649,645,354.34 432,684,792.22 572,827,875.91 381,855,853.31
Total 649,645,354.34 432,684,792.22 572,827,875.91 381,855,853.31
(2). Description of incomes from contracts
□ Applicable √ N/A
(3). Description of performance obligations
□ Applicable √ N/A
223 / 225
2022 Semiannual Report
(4). Description of allocation to remaining performance obligations
□ Applicable √ N/A
Other description:
None
5. Investment income
√ Applicable □ N/A
Unit: Yuan Currency ： RMB
Amount for the current
Item Amount for the prior period
period
Gains from long-term equity investment
7,452,000.00
accounted for using the cost method
Long-term equity investment accounted
6,057,494.48
for using the equity method
Investment income from held-for-trading
200,000.00
financial assets during the holding period
Investment income from disposal of held-
5,684,922.38 2,145,923.39
for-trading financial assets
Total 5,884,922.38 15,655,417.87
Other description:
None
6. Others
□ Applicable √ N/A
XVIII. Supplementary information
1. Breakdown of non-recurring profit or loss for the current period
√ Applicable □ N/A
Unit: Yuan Currency: RMB
Item Amount Description
Gain or loss on disposal of non-current assets -4,939,437.34
Government grants recognized in profit or loss (other than
grants which are closely related to the Company's business and
16,026,819.55
are either in fixed amounts or determined under quantitative
methods in accordance with the national standard)
Profit or loss on entrusted investments or assets management 5,795,366.82
Net profit or loss of subsidiaries from the beginning of the
period up to the business combination date recognized as a
13,594,336.06
result of business combination of enterprises involving
enterprises under common control
Profit or loss on changes in the fair value of held-for-trading
financial assets, derivative financial assets, held-for-trading
financial liabilities and derivative financial liabilities and
investment income on disposal of held-for-trading financial
-1,434,000.00
assets, derivative financial assets, held-for-trading financial
liabilities, derivative financial liabilities and other debt
investments, other than those used in the effective hedging
activities relating to normal operating business
Other non-operating income and expenses -1,047,993.35
224 / 225
2022 Semiannual Report
Other gains or losses meeting the definition of non-recurring
364,144.36
profit or loss
Less: Effect of income taxes 2,770,765.40
Effects attributable to minority interests (net of tax) 1,627,376.52
Total 23,961,094.18
It is required to specify the reason for defining items as non-recurring profit or loss items according to
Information Disclosure and Presentation Rules for Companies Making Public Offering of Securities No.
1－Non-recurring Profit or Loss, and reasons for defining non-recurring profit or loss items illustrated in
Information Disclosure and Presentation Rules for Companies Making Public Offering of Securities No.
1－Non-recurring Profit or Loss as recurring profit or loss items.
□ Applicable √ N/A
2. Return on net assets and earnings per share
√ Applicable □ N/A
Weighted Earnings per share
Profit for the reporting period average return on Basic earnings per Diluted earnings
net assets (%) share per share
Net profit attributable to ordinary
1.86 0.10 0.10
shareholders of the Company
Net profit after deduction of non-
recurring profits or losses attributable
0.89 0.05 0.05
to ordinary shareholders of the
Company
3. Differences in accounting data under Chinese accounting standards and overseas accounting
standards
□ Applicable √ N/A
4. Others
□ Applicable √ N/A
Chairman: LI Yi
Approval for submission by the Board of Directors: August 18, 2022
Revision information
□ Applicable √ N/A
225 / 225
