2024 Semiannual Report
Stock Code: 688007 Stock Short Name: Appotronics
Appotronics Corporation Limited
2024 Semiannual Report
August 2024
本报告为深圳光峰科技股份有限公司自愿披露的《2024 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 2024 Semiannual Report (English Version) voluntarily disclosed by Appotronics
Corporation Limited. In the event of any discrepancy between the English and Chinese
versions of this Report, the Chinese version shall prevail.
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2024 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 Semiannual Report is true,
accurate and complete and this Semiannual Report is free from any misrepresentation, misleading
statement or material omission, and agree to assume joint and several liability for this Semiannual
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 - V. Risk
factors” for the relevant risks. The investors should be aware of the risk of investment.
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, Principal of the Company, WANG Yingxia, Person in Charge of the Accounting Work,
and WANG Yingxia, Person in Charge of the Accounting Body (Chief Accountant), hereby warrant
that the financial report contained in this Semiannual Report is 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 other affiliates?
No
X. Is there any external guarantee provided in contravention of the stipulated decision-making
procedure?
No
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XI. Are the majority of the directors unable to guarantee the truthfulness, accuracy and
completeness of the Semiannual Report disclosed by the Company?
No
XII. Others
□ Applicable√ N/A
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Table of Contents
Section I Definitions .......................................................................................................................... 5
Section II Company Profile and Financial Highlights..................................................................... 6
Section III Discussion and Analysis of the Management ................................................................ 11
Section IV Corporate Governance ................................................................................................... 32
Section V Environment and Social Responsibilities ...................................................................... 35
Section VI Significant Matters .......................................................................................................... 38
Section VII Changes in Shares and Shareholders ............................................................................ 57
Section VIII Preferred Shares.............................................................................................................. 64
Section IX Bonds ................................................................................................................................ 65
Section X Financial Report .............................................................................................................. 66
Financial Statements with seals and signatures of the Principal of the
Company, Person in Charge of the Accounting Work, and Person in Charge
List of Documents
of the Accounting Body (Chief Accountant)
Available for 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
means Appotronics Corporation Limited
Appotronics
Appotronics Ltd. means Appotronics Corporation Ltd., the predecessor of the Company
CINEAPPO means CINEAPPO Laser Cinema Technology (Beijing) Co., Ltd.
Formovie, Chongqing
means Formovie (Chongqing) Innovative Technology Co., Ltd.
Formovie
Appotronics HK means Appotronics Hong Kong Limited
Appotronics Daye means Shenzhen Appotronics Daye Investment Partnership (LP)
Appotronics Deye means Shenzhen Appotronics Deye Consulting Partnership (LP)
Appotronics Hongye means Shenzhen Appotronics Hongye Investment Partnership (LP)
Appotronics Chengye means Shenzhen Appotronics Chengye Consulting Partnership (LP)
Jinleijing means Shenzhen Jinleijing Investment Limited Partnership (LP)
Blackpine means Blackpine Investment Corp. Ltd.
CINIONIC means Cinionic Limited (previously known as Barco Cineappo Limited)
GDC BVI means GDC Technology Limited (British Virgin Islands)
GDC Cayman means GDC Technology Limited (Cayman Islands)
SSE means Shanghai Stock Exchange
Delta Electronics or
means Delta Electronics, Inc.
Delta
AI means Artificial Intelligence
AR means Augmented Reality
DCI means Digital Cinema Initiatives of the United States
DLP means Digital Light Processing
Liquid Crystal on Silicon, a new reflective display technology that organically
LCOS means
combines LCD and CMOS integrated circuits
LCD means Liquid Crystal Display
RGB means Optical three primary colors, R: red, G: green, B: blue
LED means Light Emitting Node, a common light emitting device
A screen resolution of digital products, representing the screen resolution of
4K means
4096×2160, which is an ultra-high-definition resolution
ADB means Adaptive Driving Beam
Tier 1 means Tier 1 supplier for automobile manufacturers
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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 Street, Nanshan
Registered address
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 Zone, Nanshan
Historical changes of
District, Shenzhen
the Company’s
4. October 24, 2012, 401 Shenzhen IC Design and Application Industrial Park, South
registered address
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 Street, Nanshan
Office address
District, Shenzhen
Postal code of office
518052
address
Website http://www.appotronics.com
Email ir@appotronics.cn
II. Contact person and contact information
Board Secretary (Domestic
representative for information Securities affairs representative
disclosure)
Name CHEN Yasha WANG Weiqi
20-22/F, Hi-tech Zone Union Tower, No. 63 Xuefu Road, Yuehai Street,
Address
Nanshan District, Shenzhen
Telephone 0755-32950536
Facsimile 0755-86186299
Email ir@appotronics.cn
III. Description of changes to the media for information disclosure and place for keeping
semiannual reports
China Securities Journal (https://www.cs.com.cn)
Designated newspaper for information Shanghai Securities News (https://www.cnstock.com)
disclosure Securities Times (http://www.stcn.com)
Securities Daily (http://www.zqrb.cn)
Websites for publishing the semiannual Shanghai Stock Exchange website
reports (http://www.sse.com.cn)
Place for keeping the semiannual reports Office of the Board of Directors
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Reference to changes during the
N/A
reporting period
IV. Stock/depository receipts of the Company
(I) Stock of the Company
√ Applicable□ N/A
Stock of the Company
Stock short Former stock
Stock class Stock exchange and board Stock code
name 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
In RMB
During the
Change over the
Main accounting data reporting period Prior period
prior period (%)
(Jan. - Jun.)
Operating income 1,081,409,500.21 1,073,249,037.75 0.76
Net profit attributable to
10,909,613.44 74,914,640.95 -85.44
shareholders of the listed company
Net profit attributable to
shareholders of the listed company
13,479,287.51 34,228,839.62 -60.62
after deduction of non-recurring
profit or loss
Net cash flows from operating
-79,146,670.23 114,738,832.13 -168.98
activities
Changes at the end
At the end of the At the end of the of the reporting
reporting period prior year period from the end
of the prior year (%)
Net assets attributable to
2,750,858,141.24 2,818,869,452.99 -2.41
shareholders of the listed company
Total assets 4,283,671,300.74 4,220,570,891.16 1.50
(II) Financial highlights
During the
reporting Change over the
Financial highlights Prior period
period prior period (%)
(Jan. - Jun.)
Basic earnings per share
0.02 0.16 -87.50
(RMB/share)
Diluted earnings per share
0.02 0.16 -87.50
(RMB/share)
Basic earnings per share after
deduction of non-recurring profit or 0.03 0.07 -57.14
loss (RMB/share)
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Weighted average return on net -2.39 percentage
0.39 2.78
assets (%) points
Weighted average return on net
-0.79 percentage
assets after deduction of non- 0.48 1.27
points
recurring profit or loss (%)
Proportion of R&D investments to -1.46 percentage
10.32 11.78
operating income (%) points
Explanation about the main accounting data and financial highlights
√ Applicable□ N/A
1. During the reporting period, we achieved rapid development of the automotive optics business,
achieving the operating income of RMB 241 million, including about RMB 200 million achieved in the
2nd quarter of 2024.
2. During the reporting period, the net profit attributable to shareholders of the listed company and the net
profit attributable to shareholders of the listed company after deduction of non-recurring profit or loss
decreased by 85.44% and 60.62% year on year, respectively; the basic earnings per share, diluted earnings
per share, and basic earnings per share after deduction of non-recurring profit or loss decreased by 87.50%,
87.50%, and 57.14%, respectively year on year, primarily due to the following:
(1) During the reporting period, we took the initiative to adjust the policy for consumer business operation
and accelerated the pace of clearing the inventory of consumer products, which led to the decrease in both
the ratio and gross profit margin of incomes from the consumer business, while our automotive business
entered the intense delivery period and increased its ratio among the businesses. The difference in the
product portfolio led to the decrease in the overall gross profit margin by 6.65 percentage points.
(2) During the reporting period, the arbitration case between the Company and relevant GDC entities was
still under trial; after investigation and evidence collection, multiple hearings, request for remedies, etc.,
the legal service fees settled for this arbitration case during the reporting period was RMB 18.4509 million;
meanwhile, given the performance loss of GDC, the profit and loss adjustment during the period of holding
the long-term equity investment and the fair value transferred to other non-current financial assets were
measured and recognized as investment losses. With the impact of such factors eliminated, the Company’s
net profit attributable to the parent company and the net profit attributable to the parent company net of
non-recurring profit or loss are as follows:
Financial indicators with the impact related to GDC During the reporting period (in RMB
eliminated 0’000)
Net profit attributable to shareholders of the listed
7,063.50
company
Net profit attributable to shareholders of the listed
3,585.16
company after deduction of non-recurring profit or loss
3. During the reporting period, the net cash flows from operating activities decreased by 168.98% year on
year, which was primarily due to the increase in the operating capital required in response to the growth
in our automotive business, and the increase in restricted monetary funds (for details, refer to
“Encumbrances on major assets as of the end of the reporting period” in Section III Discussion and
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Analysis of the Management). The net cash flows from operating activities without the impact of restricted
monetary funds is RMB 33.5993 million.
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
In RMB
Item of non-recurring profit or loss Amount Note (if applicable)
Gain or loss on disposal of non-current assets, including
-542,907.96
write-off of provision for asset impairment
Government grants recognized in profit or loss for the current
period (excluding government grants that are closely related
VII.67 of Section X,
to the business of the Company and are provided in
6,613,195.04 and VII.74 of Section
accordance with established standards with continuous
X
effects on the profit or loss of the Company according to the
provisions of national policies)
Profit or loss on changes in the fair value of financial assets
and financial liabilities held by non-financial enterprises and
VII.68 of Section X,
profit or loss on the disposal of financial assets and financial
19,343,730.90 and VII.70 of Section
liabilities, other than those used in the effective hedging
X
activities related to normal operating business of the
Company
Income earned from lending funds to non-financial
institutions and recognized in profit or loss
Profit or loss on entrusted investments or assets management 6,982,910.02 VII. 68 of Section X
Profit or loss on entrusted loans
Losses on assets due to force majeure events, e.g. natural
disasters
Reversal of impairment loss on accounts receivable tested for
518,247.41
impairment individually
The excess of attributable fair value of identifiable net assets
over the consideration paid for the acquisition of subsidiaries,
associates and joint ventures
Net profit or loss of subsidiaries from the beginning of the
period up to the business combination date recognized as a
7,005,333.38
result of a business combination involving entities under
common control
Profit or loss on exchange of non-monetary assets
Profit or loss on debt restructuring
One-off expenses incurred by the enterprise for discontinued
operating activities, such as expenditures for employee
placement, etc.
One-off effect on the profit or loss for the current period due
to an adjustment in taxation, accounting, and other laws and
regulations
Share-based payment expenses recognized on a one-off basis
for canceling or modifying an equity incentive plan
For cash-settled share-based payments, profit or loss from the
change in fair value of employee benefits payable after the
exercise date
Profit or loss on changes in the fair value of investment
properties that are subsequently measured using the fair value
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model
Profit or loss attributable to the evidently unfair transaction
price
Profit or loss arising from contingencies other than those
related to normal operating business
Custodian fees earned from entrusted operation
Other non-operating income and expenses 1,103,459.06
Other gains or losses meeting the definition of non-recurring -
VII. 68 of Section X
profit or loss 37,353,061.61
Less: Effect of income taxes 4,782,728.03
Effects attributable to minority interests (net of tax) 1,457,852.28
Total -2,569,674.07
It is required to specify the reason for defining items not illustrated in Information Disclosure and
Presentation Rules for Companies Making Public Offering of Securities No. 1 - Non-recurring Profit or
Loss as non-recurring profit or loss items of significant amounts, and reason 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
In RMB
Item Amount Reason
involved
The Company lost the significant influence on the
participating company GDC BVI; as a result, the accounting
method was adjusted from long-term equity investment to
GDC other non-current financial assets, being designated as
Technology -37,353,061.61 financial assets at fair value through profit or loss. The profit
Limited (BVI) or loss arising from the remeasurement based on fair value is
recognized in non-recurring profit or loss, and presented under
other profit or loss items meeting the definition of non-
recurring profit or loss.
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
The Company, as a global leading enterprise in the field of laser display technology, stays market and
customer demand-oriented, and continues to engage in the research, development, production, and sales
of laser display core devices and complete equipment based on the proprietary semiconductor laser light
source technologies and architecture to provide customers with all-around and multi-field solutions.
2. Main products and services
Our existing mature business scenarios include cinema projection, large venue, education, household,
etc., while the new automotive business is a significant growth pole of the Company. Our products may
be mainly classified into core laser display devices and complete laser display equipment. The core devices
can be further classified into core devices for automotive optics, laser light source, laser TV and smart
mini projection light generator, and high-gain and high-contrast ratio projection screens, etc., and complete
equipment can be classified into laser smart mini projector, laser TV, laser cinema projector, laser large
venue projector, laser education projector and others. The services the Company performs include laser
cinema projection services, VLED LED Cinema projection solution, large venue projection automatic 3D
Mapping, and corresponding system solutions.
3. Industry in which the Company operates
3.1 Development stage, basic characteristics and main technical barriers of the industry
(1) Development stage of the industry
As an emerging industry, laser display is at a stage of rapid growth, and its growth drivers mainly
come from: 1. technological progress has spawned emerging application fields, and semiconductor laser
light source technology has been applied to the automotive optics, AR, and other fields, and the market
has great potential for explosion; 2. the laser display industry in which the Company operates is one of the
strategic emerging industries receiving the major support from the state for accelerated development. With
the support of national and industry policies, more and more domestic enterprises and scientific research
institutions enter the upstream and downstream fields of the laser display industry chain, strengthen the
industrial chain, actively develop and iterate technology, thus further increasing the localization rate of
core components.
(2) Basic characteristics of the industry
In 2007, the ALPD semiconductor laser light source technology invented by our R&D team created
a wholly new semiconductor laser light source. Technically matching with multiple chip and technical
routes and being suitable for DLP, LCOS, and LCD technologies, the ALPD semiconductor laser light
source technology made a breakthrough in the application of core devices and imaging solutions of laser
display in the field of display, thus becoming the mainstream technical route for the laser display industry.
In terms of application, in addition to traditional applications such as cinema, large venue, and
education, emerging industries such as intelligent cockpit, laser headlight, intelligent networking, AR, and
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AI are booming, and gradually become a new application development focus of the laser display industry,
and the overall scale of the industry continues to expand, which is expected to help to broaden the
application scenarios of the ALPD semiconductor laser light source technology.
(3) Main technical barriers
Laser display technologies, as an important direction for the development of the display industry,
have the feature of high technical barriers, where the specific barriers include: light source technologies,
optical engine and imaging devices, signal processing circuits, screen technologies, heat dissipation
technologies, color management, standard formulation, patented technologies, research and development
capabilities, etc. In the laser light source technology, a laser beam is used to transmit through images;
optical engine and imaging devices include optical imaging devices, optical engine and drive circuits, for
which precision manufacturing and integration are the key to achieve high-quality display effects; the
screen technology ensures image quality and color accuracy. The high barriers of laser display
technologies also indicate huge market potentials and development prospect. Thanks to the increasing
maturity and decreasing costs of laser display technologies, laser display is expected to enhance its position
on the display market in the future.
We are committed in the breakthroughs, innovations, expansion of application scenarios, and
industrialization of semiconductor laser light source technologies; in particular, we have profound
accumulation in light source technologies, optical engine and imaging technologies, screen technologies,
etc., and have created technology reserves and patent portfolios covering the whole technology chain of
laser display technology from key system architecture, core devices to key algorithms. Meanwhile, the
Company has devoted many R&D resources in the miniaturization of laser display system, light source
architecture, complete equipment structure, machine perception, and the preparation and processing of
thin film materials to maintaining the leading position in the industry. As a Leader Level Member of the
Laser Illuminated Projector Association (LIPA), we have participated in the preparation of the
international laser display standard.
3.2 Analysis of the position of the Company in the industry and changes therein
The ALPD semiconductor laser light source technology, as the mainstream technology in the field
of laser display, has the advantages of high brightness, small size, long service life, wide color gamut,
energy conservation and environmental protection, etc.
As the inventor of the ALPD semiconductor laser light source technology and the leader in the laser
display industry, we have built a patent moat around the underlying technical architecture of ALPD
semiconductor laser light source technology, and created technology reserves and patent portfolios
covering the whole technology chain of laser display technology from key system architecture, core
devices to key algorithms; projection brands entering the technology route of laser phosphor technologies
can hardly bypass our underlying patent layout. In addition, we are committed in the breakthroughs,
innovations, expansion of application scenarios, and industrialization of semiconductor laser light source
technology. Thanks to the core competitive advantages consisting of “patent moat + technical barriers”,
the Company continuously holds a key position at the upstream core device stage.
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II. Core technologies and progress in R&D of technologies
1. Core technologies and their advancement, and changes during the reporting period
The ALPD is our original semiconductor laser light source technology of great significance in the
display industry.
1) Original creation: In the past lighting and display, the rare earth phosphor is used only in LED
light sources, while we made the original creation of using rare earth phosphor in laser light sources.
2) Uniqueness: To improve the stability of the rare earth phosphor after being excited by laser, we
explored a unique impulse mode and created unique impulse architecture, which is under strict patent
protection.
3) Flexibility: Since the ALPD semiconductor laser light source technology combines two
materials/devices, there are many methods of adjustment between the two portions in this architecture,
including ① adjustable blue light distribution to output light that is adjustable in space; ② various
phosphor powders to achieve flexible color segments; and ③ adjustable ratio and strength among color
segments after the blue light is excited. Therefore, the output light is adjustable in terms of strength
distribution, brightness distribution, color temperature, and color to meet the requirements for different
scenarios.
4) Significance of the industry: Despite the long history of using a laser light source in the display
industry, subject to the high cost of red and green lasers, it was hard to make breakthroughs in the
industrialization of laser light sources. However, our ALPD semiconductor laser light source technology
greatly promoted the process of commercialization and industrialization of laser in the projection display
industry.
5) Significance in materials: The ALPD semiconductor laser light source technology relies on the
blue laser and rare earth phosphor more than the RGB technology. The blue laser and blue LED share the
gallium nitride material system; given the developed LED industry in China, there is a favorable basis of
the gallium nitride system industry. In terms of the rare earth phosphor, since China has the most abundant
rare earth resources in the world, and rare earth phosphor is one of the important applications of the rare
earth element, China has the advantages of resource reserves in the world in terms of rare earth phosphor.
We have created a perfect combination point between the two material systems for which China has the
industry advantages, which provided the basic conditions for the long-lasting development of this
technology architecture.
National scientific and technology awards
□ Applicable√ N/A
Qualification of national “little giant” enterprises in specialized, refined, differential, and innovative
aspects, and “leading enterprise” in the manufacturing industry
□ Applicable√ N/A
2. R&D achievements during the reporting period
(1) Core devices
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In the field of automotive core components, we have successfully integrated automobile-grade
projection giant screen as an important component into the smart cockpit, which have been exclusively
adopted on mainstream automobile models including AITO M9, Stelato S9, etc. This is the
implementation of a significant innovative application in cockpit display. In addition, an upgrade version
of a new generation of vehicle-mounted projection system is continuously under development. The
vehicle-mounted projection system 2.0 solution will double both the brightness and resolution, while the
screen will be upgraded with anti-ambient light screen materials, so as to provide users with better
watching experience and continuously reduce the price of nominated automobile models. In the aspect of
headlights, we released the world’s first ALL-in-ONE all-purpose laser headlight at the Beijing
International Automotive Exhibition in 2024. Unlike conventional headlights with only the lighting
function, the ALL-in-ONE all-purpose laser headlight can achieve the effects of “accurate lighting +
accurate display” with one headlight module to provide users with comprehensive functions of lighting,
colorful display, front fog light, ADB, etc. By greatly reducing the power consumption and volume of the
entire headlight system, this allows automotive manufacturers to upgrade functions while reducing the
costs of the comprehensive platform, thus attracting wide attention from automotive manufacturers and
tier 1 suppliers. The ALL-in-ONE all-purpose laser headlight is the only headlight on the market that can
achieve colorful display. It facilitates the designing of automobile front face while meeting requirements
in all aspects of security, social interaction, and personalization. It can be equipped on various mainstream
automobile models, and we are making active efforts to promote the cooperation with various automobile
manufacturers.
(2) Branded complete equipment
During the reporting period, we released a flagship new product - S Pro series large venue projector,
which is the first large venue projector of over 10,000 lumens and 4K resolution in China. It fills the gap
of domestic large venue projectors in the range of 15,000-20,000 lumens and creates new quality
productive forces for the development of the industry. As the first application of ALPD 5.0 super
panchromatic laser technology in the field of large venue projection, the S Pro series large venue projector
is ideal for such application scenarios like exhibition, cultural tourism, outdoor landscape, stage
performance, etc. Meanwhile, we upgraded the “Appotronics dedicated control APCS 2.0 system” to
support the control and on-site monitoring of up to 3,000 projectors, thus providing a highly efficient and
smooth solution for the sites of large-scale events.
List of intellectual property rights acquired during the reporting period
Increase Total
Applications Granted (pcs) Applications Granted (pcs)
(pcs) (pcs)
Patent for
34 67 1,745 1,148
invention
Patent for utility
58 61 932 829
model
Patent for design 4 5 242 234
Software
2 2 144 144
copyright
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Others 16 35 1,165 1,086
Total 114 170 4,228 3,441
Note: 1. The “others” shown in the above table refers to the Company’s trademarks.
3. R&D investments
In RMB
Current period Prior period % Change
R&D investments expensed 111,618,787.20 126,406,142.12 -11.70
R&D investments capitalized - - -
Total R&D investments 111,618,787.20 126,406,142.12 -11.70
Proportion of R&D investments to -1.46 percentage
10.32 11.78
operating income (%) points
Proportion of R&D investments
- -
capitalized (%)
Reason for the material change in the total R&D investments compared with last year
□ Applicable√ N/A
Reason 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
In RMB 0’000
Estimated Investment in Progress
Aggregate Technologica
No. Project total the current or interim Goals Application scenario
investment l level
investment period results
Provide customized automotive optical
Innovative Automotive, AR, and
Mass products for vehicle manufacturer Leading in
1 optical 25,072.00 4,904.48 18,109.02 other innovative
production brands, and develop AR optical the industry
application scenarios.
modules, etc.
Continuously develop the new
Core device generation of ALPD semiconductor Continuous
light source laser light source technology to achieve development of core
Mass Leading in
2 and light 12,678.00 1,337.30 9,690.89 light sources and light generators with technologies and core
production the industry
generator lower cost, wider color gamut, higher devices for use in
project brightness, and higher energy various fields.
efficiency.
Develop DCI-compliant and highly
Intended for the high-
cost-effective household cinema
Cinema Mass Leading in end household market
3 15,516.00 1,373.20 12,921.39 projectors; and DCI-compliant LED
products production the industry and projection halls at
cinema screen for cinema projection
cinemas.
halls.
Develop multiple laser large venue
Large venue projector,
Dedicated projectors with high brightness,
Mass Leading in business education
4 display 10,892.00 1,238.38 8,834.28 education projectors, and business
production the industry projector and other
products projectors with cost effectiveness to
fields.
meet different user needs.
In terms of smart mini projector
products, engage in the research and
Household smart mini
Household Mass development of high-performance and Leading in
5 32,930.00 2,308.52 29,268.33 projectors and laser
products production high-cost-effectiveness products, and the industry
TVs.
make breakthroughs in technology
innovation, product form innovation,
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2024 Semiannual Report
and quality upgrade. In terms of laser
TVs, engage in the research and
development of products with
advantageous performance such as high
brightness and eye-friendliness to meet
various user requirements.
Total - 97,088.00 11,161.88 78,823.91 - - - -
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5. R&D staff
In RMB 0’000
Basic information
Current period Prior period
Number of R&D staff (persons) 432 465
Proportion of R&D staff to total employees
29.09 31.33
of the Company (%)
Total compensation of R&D staff 7,717.83 8,664.32
Average compensation of R&D staff 17.87 18.63
Education
Academic background Number Percentage (%)
Master and above 119 27.55
Bachelor and below 313 72.45
Total 432 100
Age structure
Age Number Percentage (%)
Below 30 (exclusive) 132 30.56
30-40 (including 30, excluding 40) 206 47.69
40 and above 94 21.76
Total 432 100
6. Other information
□ Applicable√ N/A
III. Analysis of core competitiveness during the reporting period
(I) Analysis of core competitiveness
√ Applicable□ N/A
1. High-quality R&D team to promote the innovation and development of the laser display industry
The Company stays innovation-driven, continues to increase R&D investment in forward-looking
technology arrangement and product technology development. As a high-tech enterprise, the Company
will continue to improve R&D capabilities as the main theme of the Company’s core competitiveness, and
continue to improve the R&D system. The Company has established a leading R&D team in optical
modules, mechanical designing, thermal simulation, software and hardware control and preparation of rare
earth phosphor materials, developed and innovated the laser display technology for many years, thus
having accumulated profound R&D technical strength and got a deep understanding and judgment of the
industry’s cutting-edge technology and development trend.
We have set up a research institute and a research and development center to jointly coordinate
technology and product planning, thus creating an efficient cycle from technology to product and then to
business. The research institute is committed to the research and verification of forward-looking
technologies and cultivation of solutions for innovative technologies, innovative products, and new
application scenarios, thus ensuring forward allocation of R&D resources and forward-looking layout of
R&D technologies; the R&D center, combining the technology achievements of the research institute,
coordinates the management of the whole process from new product development until mass production
and launch. Thanks to the close coordination between the research institute and the R&D center, we have
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obviously improved the R&D efficiency while ensuring the rapid productization and commercialization
of the latest R&D achievements and continuously promoting technological innovation and product
upgrade.
2. Build a patent moat around the underlying technical architecture
The Company takes the underlying technical architecture patent of the original semiconductor laser
light source technology as the center, and builds a solid and interconnected intellectual property patent
system, and it is difficult for competitors to fully imitate or directly bypass the underlying patent
arrangement of the Company’s laser phosphor technology route. The Company actively responds to the
national “intellectual property power strategy” and increases the proportion of high-value patents. As of
June 30, 2024, the Company had a total of 2,919 patents filed and granted throughout the world, including
2,211 patents granted throughout the world, of which 1,148 ones were patents for invention. In terms of
technology patents for automotive core components, we have 61 new patents granted and filed for
automotive optics technologies during the reporting period; as of June 30, 2024, we have a total of 245
patents for automobile technologies granted and filed, an increase of 39.20% year on year.
In terms of technology leadership, the Company’s original semiconductor laser light source
technology has become the mainstream technology in the current laser display field, and as the underlying
key architecture technology, it has been used more than 679 times by leading companies in the same
industry, such as Philips of the Netherlands, Osram of Germany, and Epson of Japan.
3. Relying on the technical advantages of core devices, all-round strategic arrangement for
application scenarios is made
Based on our advantages in core devices and technologies and the market development trend, we are
continuously committed to the breakthrough and innovation of semiconductor laser light source
technologies, expansion of application scenarios, and industrial promotion. We will insist on reasonable
investment for the cinema and dedicated display scenarios to continuously create new growth points; we
will enhance investment in the automotive business to expand the business scope of the Company and
make full efforts to create the new growth source for the Company; meanwhile, we will implement
innovative application for core devices in new fields and new racetracks to expand to the AI, AR, robot,
and other fields, thereby continuously improving the long-lasting value of core devices and expanding the
space of 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
During the reporting period, we persisted in the development strategy of “core technologies + core
devices + application scenarios” to accelerate business transformation of the Company. In the first half of
2024, we achieved rapid development of the automotive optics business, achieving the operating income
of RMB 241 million, including about RMB 200 million achieved in the 2nd quarter of 2024, indicating
that the business has entered the revenue contribution period.
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During the reporting period, we took active measures to adjust the business structure and
continuously improve the overall operating quality. Thanks to rapid volume increase of the automotive
business, we achieved the total operating income of RMB 1.081 billion, a slight increase year on year. The
automotive business is a new business scenario expanded by the Company in 2022. Based on our
technology advantages and rapid implementation of strategic transformation, this business developed
rapidly to support the Company’s performance. At present, we are taking active measures to deliver
nominated products for the automotive business while actively striving for new nominations, which is
expected to strongly support the growth of both incomes and profits for the Company in the future. During
the reporting period, we achieved the net profit attributable to the parent company of RMB 10.9096 million,
primary due to the legal service fees for the arbitration case with the participating company GDC and the
investment losses caused by the equity interests in GDC as other non-current financial assets. With the
factors above eliminated, the profitability of our main businesses remained stable.
In the first half of 2024, we achieved obvious optimization in the operating quality - the selling
expenses reduced by RMB 44.0768 million year on year, reducing the rate of selling expenses to 9.18%;
Formovie recorded the loss of RMB 48.5262 million in the first half of 2024, where the losses were
reduced by RMB 30.6906 million. The Company is firmly determined to solve the problems left over from
the rapid development in early stages.
At present, we are making breakthroughs to larger business racetracks, which is in line with the
technology and industry chain layout for both the upstream and downstream of the Company. Thanks to
the years of efforts in the automobile racetrack, we will see more obvious structural changes and business
optimization in the future.
1. Development of the Company’s main businesses during the reporting period is as follows:
1.1 The start of an intense delivery period for M9 leads to the income of RMB 241 million from the
automotive optics business
Given the development toward electric, intelligent, and Internet-connected vehicles, vehicles are
transforming from a merely transportation means to an intelligent and mobile life space. Therefore, the
“experience of five senses” created by smart cockpits became a key point for major automobile
manufacturers to produce differentiated products. In the first half of 2024, we grasped the opportunity of
vehicle intelligentization development by continuously focusing on the logic of cooperation with major
customers to make full use of the technology competitiveness and nomination experience in automotive
optics, and actively expanded the nomination cooperation with Chinese and foreign leading automobile
manufacturers.
By now, we have acquired 7 nominations from automobile manufacturers, including 2 AITO models
(both of which are smart cockpit display products, where AITO M9 has achieved mass production), 1
model of Beijing Electric Vehicle (where Stelato S9 has been implemented), 2 models of BYD (smart
cockpit display, and headlight module), HASCO Vision (PGU display module of AR-HUD), and
Mercedes-Benz Smart #5 concept vehicle (colorful projection headlight). In March 2024, AITO M9, the
first nominated automobile model of the Company entered the stage of intense mass production and
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delivery, making the breakthrough from zero to one for the automotive optics business. As of the
disclosure date of this Report, according to the official information, over 120,000 M9 vehicles have been
booked with down payment made.
The increase in the shipment of AITO M9 vehicles manifested our success in building the first
benchmark product of automobile-grade projection giant screens in the intelligent vehicle industry.
Meanwhile, the increasing interests of automobile manufacturers in vehicle-mounted large projection
screens provide a solid foundation for the Company to acquire more nominations from automobile
manufacturers. In May 2024, we received another Notice of Development Nomination from Seres, under
which we are designated to supply smart cockpit display products for new AITO models. This nomination
is expected to achieve mass production and delivery in 2025, which will cause positive effects on the
operating performance of the Company during the life cycle of such project. In August 2024, Stelato S9,
another nominated model of the Company, was officially released and entered the delivery period. This
model, being equipped with our automobile-grade projection giant screens, realized the coverage of
automobile-grade projection giant screens for automobile models at reduced prices for the first time.
We pay attention to the combination of intelligentization and innovation for vehicle-mounted
products. In the field of headlights, we released the world’s first ALL-in-ONE laser headlights at the 2024
Beijing International Automotive Exhibition. Thanks to the light modulation and color temperature
adjustment achieved through the ALPD semiconductor laser technology, this ALL-in-ONE laser
headlight integrated multiple functions into one small-size headlight module, including high beam
assistance, adaptive driving beam (ADB), front fog light with adaptive color temperature, and colorful
DLP display, covering both directions of “accurate lighting + accurate display” while matching with more
application scenarios and functions, thus reducing the part costs and difficulty in supply chain management
for customers; meanwhile, on the basis of vehicle security and differentiated experience, this laser
headlight facilitates the designing of automobile front face and significantly improves function upgrade.
Given that the ALL-in-ONE laser headlight adopts the ALPD semiconductor laser light source, it has
advantages of higher brightness, slower light attenuation, higher light-emitting efficiency, longer service
life, better stability, etc. compared with conventional headlights. At present, we are making efforts to
promote the ALL-in-ONE laser headlights to major automobile manufacturers and taking active measures
to achieve nomination cooperation around this product.
1.2 The cinema business maintains its position as a “cash cow” to continuously provide stable cash
flow for the Company
In the 1st quarter of 2024, the record-breaking Spring Festival box office and the continuous release
of film watching demands driven by outstanding films led to an active film market, which achieved the
operating income of RMB 153 million for our cinema business. The film market was relatively normal
under the impact of film supply in the 2nd quarter of 2024. The performance of our cinema business in the
2nd quarter decreased on a quarter-on-quarter basis - achieving the operating income of RMB 114 million;
however, the position of the cinema business as a “cash cow” of the Company remained unchanged and
continuously provided stable cash flow for the Company.
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During the reporting period, we made use of our profound accumulation and technical advantages in
the cinema industry to actively promote the ALPD laser light source projection solution and the VLED
LED Cinema projection solution, so as to improve the resilience of the cinema industry for high-quality
development.
1.3 Stable development of the dedicated display business to empower the high-quality development
of the culture industry with scientific and technology innovation
In light of the increasing integration of IP, technology, and cultural tourism and the emergence of
immersive cultural tourism, we take the trend of refined, digitalized, and quality-oriented cultural tourism
industry by providing products and services that are more adaptive. During the reporting period, we
achieved the operating income of RMB 201 million from the dedicated display business, essentially
sustaining the level in the last year; where the large venue business contributed the operating income of
RMB 124 million, up by nearly 24%.
In the first half of 2024, we made use of high-brightness large venue projectors to successfully
implement the benchmark project of the global tour of “Encounter Sanxingdui - 12K Macro View of
National Treasure”, which has become a representative work of China presented to the world; moreover,
we made great efforts to implement multiple benchmark projects, including “Panda Planet” - the first
official immersive panda lighting exhibition, “Meeting Matsu” - a large immersive digital lighting show,
so as to empower the culture industry for high-quality development with scientific and technology
innovation.
2. Continuous R&D investments in cutting-edge fields for expansion to the field of AI and AR smart
glasses
During the reporting period, we continuously promoted the integration of laser display technologies
with new technologies to expand to artificial intelligence (AI), augmented reality (AR), and robot fields.
We have released the world’s first AR optical module with over 10,000 PPI that we developed
independently. It is suitable for AR glasses to solve the pain point of light weight for daily wearing, thereby
meeting the brightness requirements for multiple indoor and outdoor application scenarios when used in
consumer AR glasses or AI smart glasses. It is expected that smart glasses will not be limited to the existing
AI speech interaction in the future, but will be integrated with AR display to create a mainstream trend.
Being equipped with an optical solution and display module, smart glasses can achieve functions and
experience that are more immersive for users. By now, our R&D teams have achieved about 200 patents
granted or filed in the AR and AI fields, including over 30 new patents related to AR and AI granted or
filed during the reporting period. In terms of the optical solution for light sources, we focus on the light
wave guide technology and have acquired the capabilities of independent designing and sample supply in
small batches; with respect to light generators, we have multiple technology routes for LCOS, DLP,
Microled, laser scanning, etc. ready, all of which can be used for product development in response to the
demands of complete equipment manufacturers.
Since the smart glasses industry is in the stage of early development and user cultivation at present,
we firmly continue our investments in small sizes, light weight, and lower costs to work with complete
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equipment manufacturers in exploring innovative solutions for smart glasses and providing diversified
solutions for complete equipment manufacturers.
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. Cyclical fluctuation risks of the macro environment and the consumer electronics industry
At present, given that the global economy is experiencing cyclical fluctuation, the public are more
prudent in consumption, which slows down the demands on the consumer electronics market. As optional
consumption products, smart projection products are facing more significant short-term fluctuation. Slow
recovery of demands in the consumer electronics industry in the future may still cause adverse effects to
the operating incomes and profits of our businesses related to household projection.
We will continue to enhance efforts for studying the macro-economic conditions, closely follow the
development trend of the consumer electronics industry, conduct in-depth research into market demands,
constantly enhance efforts for product R&D and technology investment, improve our R&D and product
designing competence, assess risks rapidly, and take initiative to make relevant business adjustment, thus
improving the risk tolerance of the Company.
2. Financial risks
(1) Risk of impairment of accounts receivable
As of the end of the reporting period, the book value of our accounts receivable was RMB 322.4292
million, accounting for 7.53% of our total assets. Our products are generally delivered after receiving the
payment therefor. We give certain credit period to some major and high-quality 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.
The Company strengthens risk management and control, continuously tracks and controls customer
credit, and strengthens the assessment of accounts receivable collection, and establishes an early warning
system for overdue accounts receivable; for individual customers who maliciously default and have a long
period of arrears, payment will be recovered through arbitration, litigation and other legal methods.
(2) Risk of impairment of inventories
As of the end of the reporting period, the book value of our inventories was RMB 660.4429 million,
accounting for 15.42% of our assets. Our inventories mainly comprise raw materials and goods in stock.
In the event of any significant change in the competition pattern of the industry, and material innovation
in laser display technology and products, the recoverable amount of the inventories will be lower than
their book value. The impairment of inventories will have a negative effect on our earnings. The Company
will pay close attention to the changes in supply and demand of the industrial chain, and promptly carry
out production and marketing coordination according to the market and production conditions to reduce
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product inventory risks.
(3) Risk of impairment of fixed assets
As of the end of the reporting period, the book value of our fixed asset was RMB 308.1233 million,
accounting for 7.19% 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 63.20%. If force
majeure factors result in shutdown 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. In order to cope
with the above risks, the Company will pay close attention to the status of fixed assets, strengthen
communication with business departments, improve the efficiency of asset use, and reduce the risk of
impairment. In the meanwhile, for assets that show signs of impairment, the Company will measure the
recoverable amount and make an impairment provision for fixed assets based on the difference between
the recoverable amount and the book value.
(4) Risk of exchange rate movement
The Company’s procurement and sales involve a variety of foreign currencies, of which dollar is the
main foreign currency. If the exchange rate of the relevant currency fluctuates, it will have a certain impact
on the Company’s financial position. In this regard, in order to effectively avoid the risks of the foreign
exchange market, prevent large fluctuations in the exchange rate from adversely affecting the Company’s
business performance, improve the efficiency of the use of foreign exchange funds, and reasonably reduce
financial costs, the Company carries out foreign exchange derivatives and other businesses in a timely
manner to reduce the risk of exchange rate fluctuations.
(5) Risk of changes in fair values
As of June 30, 2024, the subsidiary Appotronics HK held other non-current financial assets for the
equity interests in GDC BVI with the fair value of RMB 99.44 million. In the event of great fluctuation in
the performance of GDC BVI or other material changes in its operating environment in the future, the
equity assets held by the Company in GDC BVI may experience the risk of fair value changes.
3. Risks in failing to implement investment projects as expected
Under the impact of changes in the internal and external environment, there are risks that the
Company cannot implement investment projects as expected. Despite the efforts of the Company in
enhancing the management over investment projects, accelerating the progress of investment projects, and
constantly monitoring the progress of such investment projects, in the actual implementation, the
Company still cannot avoid situation like delayed construction compared with the plan, or adjustment to
the implementation plan or solution in response to industry and market development. Upon the occurrence
of such circumstances, the Company will make decisions in accordance with relevant provisions and
promptly fulfill its obligations for information disclosure.
4. 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. Given that the case is under trial at present, the
impact of such case on the profit or loss of the Company cannot be determined; the eventual actual impact
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depends on the award of the arbitration tribunal or the negotiation between the parties. The Company has
engaged a professional attorney team and taken relevant legal measures to safeguard the legitimate rights
and interests of the Company and all shareholders in accordance with the law, and will promptly fulfill
the information disclosure obligations in accordance with relevant provisions.
VI. Main business activities during the reporting period
Refer to “IV. Discussion and analysis of business situations” in this Section for details.
(I) Analysis of main business
1 Analysis of changes in the items of financial statements
In RMB
Item Current period Prior period % Change
Operating income 1,081,409,500.21 1,073,249,037.75 0.76
Operating costs 745,633,299.59 668,659,467.49 11.51
Selling expenses 99,322,901.25 143,399,660.02 -30.74
Administrative expenses 82,242,537.80 86,696,223.82 -5.14
Financial expenses -5,958,395.29 -17,021,406.56 N/A
R&D expenses 111,618,787.20 126,406,142.12 -11.70
Net cash flows from operating
-79,146,670.23 114,738,832.13 -168.98
activities
Net cash flows from investment
-1,573,699.63 -260,010,504.24 N/A
activities
Net cash flows from financing
-96,516,389.72 110,646,737.55 -187.23
activities
Description of reasons for changes in the selling expenses: The selling expenses decreased by 30.74% year
on year, mainly due to the year-on-year decrease in the marketing expenses during the reporting period;
Description of reasons for changes in the financial expenses: The financial expenses increased by RMB
11.0630 million year on year, primarily due to the year-on-year decrease in the foreign exchange gains
during the reporting period;
Description of reasons for changes in the net cash flows from operating activities: The net cash flows from
operating activities decreased by 168.98% year on year, which was primarily due to the increase in the
operating capital required in response to the growth in our automotive business, and the increase in
restricted monetary funds;
Description of reasons for changes in the net cash flows from investment activities: The net cash flows
from investment activities increased by RMB 258 million year on year, primarily due to the year-on-year
decrease in the purchase of wealth management products during the reporting period;
Description of reasons for changes in the net cash flows from financing activities: The net cash flows from
financing activities decreased by 187.23% year on year, primarily due to the year-on-year decrease in the
new bank borrowings.
2 Detailed description of major changes in the business types, profit composition or profit sources
of the Company during the 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
In RMB
Balance at the % of total Balance at the % of total
Project % Change Explanation
end of the assets at end of the assets at
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2024 Semiannual Report
period the end of prior period the end of
the period the prior
period
Primarily due to
the acceptance of
notes receivable
Notes
4,167,483.04 0.10 8,951,308.71 0.21 -53.44 that became due at
receivable
the beginning of
the reporting
period
Primarily due to
the increase in
receivables for the
Accounts increasing
322,429,228.84 7.53 180,290,007.90 4.27 78.84
receivable incomes from the
automotive
business in the
current period
Primarily due to
the increase in
Receivables
65,953,036.07 1.54 11,387,400.00 0.27 479.18 bank acceptance
financing
bills received in
the current period
Primarily due to
the loss of the
Company’s
significant
influence on the
participating
Long-term company GDC
equity 6,183,769.99 0.14 144,726,776.43 3.43 -95.73 BVI, which led to
investment a change in the
accounting
method from long-
term equity
investment to
other non-current
financial assets
Other non-
current
99,443,720.92 2.32 - - N/A Same as the above
financial
assets
Primarily due to
Long-term
the amortization
prepaid 3,881,364.11 0.09 6,318,145.33 0.15 -38.57
made in the
expenses
current period
Primarily due to
the decrease in
Other non-
prepayments for
current 18,308,105.15 0.43 29,348,748.27 0.70 -37.62
long-term assets
assets
acquired in the
current period
Primarily due to
Short-term the repayment of
50,032,500.00 1.17 80,036,500.00 1.90 -37.49
borrowings short-term bank
borrowings in the
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2024 Semiannual Report
current period
Primarily due to
the increase in
Notes
105,114,863.34 2.45 76,001,079.07 1.80 38.31 bank acceptance
payable
bills issued in the
current period
Primarily due to
the increase in
payables for
procurement for
Accounts
403,638,748.50 9.42 247,318,466.10 5.86 63.21 the increasing
payable
procurement for
the automotive
business in the
current period
Primarily due to
the payment of
Employee accrued salaries
benefits 31,408,872.42 0.73 66,874,234.47 1.58 -53.03 and wages as well
payable as bonuses for the
preceding year in
the current period
Primarily due to
the increase in the
Taxes provision for
10,162,408.56 0.24 6,142,704.23 0.15 65.44
payable income tax
payable made in
the current period
Primarily due to
the dividend for
the last year
Other
90,355,287.99 2.11 54,142,509.17 1.28 66.88 declared in the
payables
first half of the
year which has not
been paid
Primarily due to
Deferred the conversion to
3,200,397.19 0.07 4,627,972.56 0.11 -30.85
income other incomes in
the current period
Other information
None
2. Overseas assets
√ Applicable□ N/A
(1) Size of assets
Including: overseas assets of RMB 315.2881 million, representing 7.32% of the total assets.
(2) Explanation about the high proportion of overseas assets
□ Applicable√ N/A
Other information
None
3. Encumbrances on major assets as of the end of the reporting period
√ Applicable□ N/A
In RMB
Item Closing balance of book value Reason
Other monetary funds 18,679,342.40 Security deposits
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2024 Semiannual Report
Bank deposits 81,733,534.26 Term deposits and interests
Intangible assets 264,503,999.76 Loan mortgage
Bank deposits 112,745,931.53
Accounts receivable 17,291,094.19
Other receivables 14,367,063.15
Other current assets 753,231.42
Refer to the note below
Other non-current financial
99,443,720.92
assets
Fixed assets 2,243,955.29
Right-of-use assets 1,116,734.85
Total 612,878,607.77
Note:
1. Because GDC BVI requested the U.S. arbitration tribunal to intervene in the implementation of the
equity transaction plan released by the Company in April 2024, considering that this arbitration case was
under trial and out of the respect for the arbitration trial, Appotronics HK constrained itself at the end of
the reporting period and suspended the efforts for promoting conditions for the equity transaction. For the
sake of prudence, the Company recorded all the assets of Appotronics HK as restricted assets. The parties
are in negotiation with each other at present, and the specific result of negotiation will be announced
separately.
2. This arbitration case is still under trial at present. The self-constraint on the assets above does not
indicate the arbitration result of this case, while the final arbitration result is up to the decision of the
arbitration tribunal.
4. Other information
□ Applicable√ N/A
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2024 Semiannual Report
(IV) Analysis of investments
Overall analysis of external equity investments
√ Applicable□ N/A
In RMB
Investment amount in the reporting period (in Investment amount in the same period of Range of change
RMB) the prior year (in RMB)
6,183,769.99 156,523,146.05 -96.05%
1. Material equity investments
□ Applicable√ N/A
2. Material non-equity investments
□ Applicable√ N/A
3. Financial assets at fair value
√ Applicable□ N/A
In RMB
Cumulative
Gain or loss Impairment Purchase
fair value Sale/redemption
Asset Opening on changes in of the amount for Other Closing
changes for the current
category balance fair value for current the current changes balance
included in period
the period period period
equity
Equities 12,880,000.00 10,062,500.00 22,942,500.00 0.00
Others 519,592,819.38 -4,900,000.00 56,565,636.07 99,443,720.92 675,602,176.37
Total 532,472,819.38 10,062,500.00 -4,900,000.00 56,565,636.07 22,942,500.00 99,443,720.92 675,602,176.37
Description of securities investments
√ Applicable□ N/A
In RMB
Purc
hase Closi
Gain or loss Cumulative
amo Sale for ng
Securi Initial Sourc on changes fair value Gains or
Security Short Opening book unt the balan Accounti
ty investment e of in fair value changes losses from
type name value for current ce of ng item
code cost funds for the included in disposal
the period book
period equity
curre value
nt
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2024 Semiannual Report
perio
d
Domesti Held-for-
Self-
c and Gabrie 22,942,500 trading
835438 14,000,000.00 owned 12,880,000.00 10,062,500.00 9,281,230.90 0
overseas lle .00 financial
capital
shares assets
22,942,500
Total - - 14,000,000.00 - 12,880,000.00 10,062,500.00 9,281,230.90 0 -
.00
Description of derivative investments
□ Applicable√ N/A
4. Description of investments in private equity investment funds
□ Applicable√ N/A
Other information
None
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(V) Sale of material assets and equities
□ Applicable√ N/A
(VI) Analysis of major investees
√ Applicable□ N/A
In RMB 0’000
Company Main Registered Shareholding Total Net Operating Net
name business capital ratio assets assets income profit
Provision
of cinema
projection
CINEAPPO services 10,000.00 67.80% 72,147.33 52,269.41 24,241.44 5,189.17
and sales
of
projectors
R&D and
sale of
Chongqing - -
household 7,017.54 39.19% 43,894.04 23,879.28
Formovie 31,329.14 4,852.62
display
products
(VII) Structured entities controlled by the Company
□ Applicable√ N/A
VII. Other disclosures
□ Applicable√ N/A
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Section IVCorporate Governance
I. General meetings of shareholders held
Reference to
Date of
resolutions
Date of disclosure
Session published on the Resolutions
meeting of
designated
resolutions
website
Refer to the Announcement on
the Resolutions of the 1st
Extraordinary General Meeting
1st extraordinary
of Shareholders in 2024 (No.
general meeting April 24, April 25,
www.sse.com.cn 2024-029) disclosed by the
of shareholders 2024 2024
Company at the website of the
in 2024
Shanghai Stock Exchange
(www.sse.com.cn) on April 25,
2024 for details.
Refer to the Announcement on
the Resolutions of the Annual
General Meeting of
Annual general
Shareholders in 2023 (No. 2024-
meeting of June 4,
June 3, 2024 www.sse.com.cn 047) disclosed by the Company
shareholders in 2024
at the website of the Shanghai
2023
Stock Exchange
(www.sse.com.cn) on June 4,
2024 for details.
Extraordinary general meeting of shareholders requested by the preferred shareholders 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 extraordinary general meeting and 1 annual general
meeting. After being certified by Beijing Zhong Lun (Shenzhen) Law Firm engaged by the Company, the
convening and holding procedures of general meetings of shareholders, the qualifications of the persons
attending the meeting 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
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WANG Lin Key technical staff Left the Company
Description of changes in directors, supervisors, senior officers and key technical staff
√ Applicable□ N/A
During the reporting period, Mr. WANG Lin resigned from the position as key technical staff of the
Company due to personal and family reasons. For details, refer to the Announcement on Change in the
Company’s Key Technical Staff (No. 2024-052) disclosed by the Company on Shanghai Stock Exchange
(www.sse.com.cn) on June 29, 2024.
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.
Any candidate shall meet at least two of the above criteria at the same time, and then with the approval of
the Chairman, may be determined as a key technician of the Company.
III. Proposals for profit distribution or capitalization of the capital reserve
Profit distribution proposal or proposal for capitalization of the capital reserve during the reporting
period
Whether to implement profit distribution or
No
capitalization of the 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
Description of the proposal for profit distribution or capitalization of the capital reserve
-
IV. Share incentive plan, employee stock ownership plan or 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
The Company held the 25th meeting of the second Board
Refer to the relevant announcements
of Directors and the 23rd meeting of the second Board of
disclosed by the Company at the website
Supervisors on January 16, 2024, at which the Proposal on
of the Shanghai Stock Exchange
Invalidating Partial Granted but Not Vested Restricted
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Shares and the Proposal on Meeting Vesting Criteria for (www.sse.com.cn) on January 17, 2024
the First Vesting Period in the Reserved Grant under 2021 for details.
Second Restricted Share Incentive Plan and other
proposals were reviewed and passed.
394,040 new shares reserved by the Company for the first Refer to the relevant announcements
vesting period under the 2021 Second Restricted Share disclosed by the Company at the website
Incentive Plan and the first vesting period reserved for the of the Shanghai Stock Exchange
2022 Restricted Share Incentive Plan became available for (www.sse.com.cn) on January 31, 2024
trading on February 2, 2024. for details.
The Company held the 33rd meeting of the second Board
of Directors and the 25th meeting of the second Board of
Refer to the relevant announcements
Supervisors on May 30, 2024, at which the Proposal on
disclosed by the Company at the website
Invalidating Partial Granted but Not Vested Restricted
of the Shanghai Stock Exchange
Shares and the Proposal on Meeting Vesting Criteria for
(www.sse.com.cn) on June 1, 2024 for
the Second Vesting Period in the Initial Grant under 2022
details.
Restricted Share Incentive Plan and other proposals were
reviewed and passed.
Refer to the relevant announcements
2,528,250 new shares for the second vesting period in the disclosed by the Company at the website
initial grant of the 2022 Restricted Share Incentive Plan of the Shanghai Stock Exchange
became available for trading on June 20, 2024. (www.sse.com.cn) on June 18, 2024 for
details.
(II) Incentives that have not been disclosed in any interim announcement or about which there is
new information available
Share incentives
□ Applicable√ N/A
Other information
□ Applicable√ N/A
Employee stock ownership plan
□ Applicable√ N/A
Other incentives
□ Applicable√ N/A
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Section V Environment and Social Responsibilities
(1). Environment
Whether mechanisms related to environmental
Yes
protection have been established
Investment in environmental protection funds
14.35
during the reporting period (in RMB 0’000)
(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
The Company, as a global leading enterprise in the field of laser display technology, continuously
engages in the research, development, production, and sales of laser display core devices and complete
equipment based on the proprietary semiconductor laser light source technologies and architecture to apply
semiconductor laser light source technologies to various fields, making it a low energy consumption
enterprise. 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, did not conduct its routine
production and operation in the heavy pollution industry identified by relevant national laws and
regulations, and its production and operating activities had little impact on environment.
During its production, the Company mainly emits waste gas, waste water and solid waste, which have
been properly handled in accordance with the requirements of relevant authorities and industrial parks. In
terms of waste gas, our production and operation generated few waste gases, mainly including tin-
containing waste gas and non-methane hydrocarbons. The waste gases were treated by environmental
protection treatment facilities such as UV photolysis, activated carbon adsorption devices, air purification
equipment, etc., and emitted in strict compliance with the level 2 environmental protection standard of
Emission Limits of Air Pollutants of Guangdong Province (DB44/27-2001); moreover, we engage a
professional third-party inspection institution every year to monitor and assess the waste gas emitted. Of
the waste water, domestic sewage is pre-processed according to standards, and discharged through the
municipal sewage pipelines to the regional water quality purification plant for in-depth processing. The
industrial wastewater is uniformly recycled and treated by a qualified environmental protection company.
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Furthermore, the Company actively optimizes the production process and reduces sewage discharge. With
respect to solid waste, industrial solid waste is 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
The Company is committed to building a standardized management system for environment and
social responsibilities that is leading in the industry. We have passed and maintained the certification of
ISO 14001 Environment Management System since 2008. Meanwhile, we have obtained multiple
international standard system certifications from third-party institutions, including the QC 080000
Hazardous Substance Process Management (HSPM) System Certification, ISO 14064-1 Greenhouse Gas
Verification Certification, and ISO 50001 Energy Management System Certification, etc., which
demonstrated our insistence on energy conservation, emission reduction, and energy efficiency
improvement. All of our products are green products and have passed China environmental labeling
product certification, RoHS, REACH and other certifications.
During our operation, we took active measures to promote the building of a comprehensive
information system and make use of digitalization tools like online process approval, electronic notes, etc.
to improve the efficiency of information communication and reduce the consumption of office supplies
such as paper and printers and waste generation. We promote green office among employees by measures
including shutting down devices when leaving their posts, turning off the light for one hour at the lunch
break, and taking the employee bus, etc., to improve the awareness of energy conservation and
environmental protection. Meanwhile, we took strict measures to implement energy conservation and
emission reduction, and are committed to implementing the operating idea of sustainable development and
environmental protection through routine management covering water conservation, electricity
conservation, etc.
(V) Measures taken to reduce carbon emissions during the reporting period and their effect
Whether carbon reduction measures
Yes
are in place
Reduction of CO2 equivalent
48,176 (current period)/537,418 (cumulative)
emissions (in tons)
Types of carbon reduction measures As of the end of the reporting period, we have installed over
(e.g., using clean energy to generate 30,800 sets of our ALPD laser projection solution
electricity, using carbon reduction throughout China, achieving the total light source operation
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2024 Semiannual Report
technologies in the production of about 347 million hours. This saved electricity by about
process, developing and producing 625 million kWh and reduced carbon dioxide emission by
new products that contribute to over 0.5374 million tons in total.
carbon reduction, etc.)
Specific description
√ Applicable□ N/A
Based on the statistics on multiple tests, compared with conventional xenon lamp light sources, the
ALPD laser projection light source can save electricity by 1.8 kWh per hour, while 1 kWh of electricity
will lead to 0.86 kg carbon dioxide.
As of the end of the reporting period, we have installed over 30,800 sets of our ALPD laser
projection solution throughout China, achieving the total light source operation of about 347 million hours.
This saved electricity by about 625 million kWh and reduced carbon dioxide emission by over 0.5374
million tons in total.
(2). Information on consolidation and expansion of the results of poverty alleviation, rural
revitalization and other specific work
□ Applicable√ N/A
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2024 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
Reason for Action
there’s a the
failure to plan if
time limit covenant
Background Covenant Covenant Date of Period of fulfill the failing to
Covenantor for the has been
of covenant type content covenant covenant covenant on fulfill the
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
Refer to the completion of
shares held by him, March 22,
IPO Yes the IPO and the Yes N/A N/A
voluntary lock-up of such 2019
Prospectus extended period
shares, intention to hold and
stated below
dispose of shares and other
issues
Covenant Restriction
36 months after
relating to on the sale
Covenant by the actual completion of
IPO of shares
controller regarding the IPO and the
restriction on the sale of extended period
Refer to the
shares held by him, March 22, stated below,
IPO Yes Yes N/A N/A
voluntary lock-up of such 2019 and 6 months
Prospectus
shares, intention to hold and after termination
dispose of shares and other of employment
issues with the
Company
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2024 Semiannual Report
Covenant by the persons
acting in concert with the
actual controller regarding 36 months after
restriction on the sale of Refer to the completion of
March 22,
shares held by him, IPO Yes the IPO and the Yes N/A N/A
2019
voluntary lock-up of such Prospectus extended period
shares, intention to hold and stated below
dispose of shares and other
issues
12 months after
Covenant by HU Fei, as a completion of
member of key technical the IPO and the
staff, regarding restriction on extended period
Refer to the
the sale of shares held by March 22, stated below,
IPO Yes Yes N/A N/A
him, voluntary lock-up of 2019 and 6 months
Prospectus
such shares, intention to hold after termination
and dispose of shares and of employment
other issues with the
Company
Covenant by the key
Within 12
technical staff YU Xin and
months from the
others regarding restriction Refer to the
March 22, IPO, and 4 years
on the sale of shares held by IPO Yes Yes N/A N/A
2019 from the expiry
them, intention to hold and Prospectus
of the lockup
dispose of shares and other
period
issues
Issuer’s covenant regarding Refer to the
March 22,
measures against fraud in IPO No Permanent Yes N/A N/A
2019
IPO Prospectus
Controlling shareholder,
Others
actual controller and their Refer to the
March 22,
concert parties’ covenant IPO No Permanent Yes N/A N/A
2019
regarding measures against Prospectus
fraud in IPO
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Directors, supervisors and
Refer to the
senior officers’ covenant March 22,
IPO No Permanent Yes N/A N/A
regarding measures against 2019
Prospectus
fraud in IPO
Issuer’s covenant regarding
Refer to the
remedial measures for March
IPO No Permanent Yes N/A N/A
diluted earnings in the 22, 2019
Prospectus
current period
Controlling shareholder,
actual controller and their
Refer to the
concert parties’ covenant March
IPO No Permanent Yes N/A N/A
regarding remedial measures 22, 2019
Prospectus
for diluted earnings in the
current period
Directors and senior
officers’ covenant regarding Refer to the
March
remedial measures for IPO No Permanent Yes N/A N/A
22, 2019
diluted earnings in the Prospectus
current period
Refer to the
Issuer’s covenant regarding March
IPO No Permanent Yes N/A N/A
profit distribution policy 22, 2019
Prospectus
Issuer’s covenant regarding
restraint measures and Refer to the
March
liability for compensation in IPO No Permanent Yes N/A N/A
22, 2019
the event of failure to fulfill Prospectus
its covenants
Controlling shareholder,
actual controller and their
concert parties’ covenant
Refer to the
regarding restraint measures March
IPO No Permanent Yes N/A N/A
and liability for 22, 2019
Prospectus
compensation in the event of
failure to fulfill their
covenants
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2024 Semiannual Report
Directors, supervisors and
senior officers’ covenant
regarding restraint measures Refer to the
March 22,
and liability for IPO No Term of office Yes N/A N/A
2019
compensation in the event of Prospectus
failure to fulfill their
covenants
Controlling shareholder’s
covenant on avoiding Refer to the
March 22,
horizontal competition and IPO No Permanent Yes N/A N/A
2019
Resolve regulating and reducing Prospectus
horizontal related-party transactions
competition Actual controller’s covenant
issues on avoiding horizontal Refer to the
March 22,
competition and regulating IPO No Permanent Yes N/A N/A
2019
and reducing related-party Prospectus
transactions
Refer to the
2021 Second
Execution
Restricted
October period of the
Share Yes Yes N/A N/A
25, 2021 equity incentive
Incentive Plan
plan
Covenant by the grantee of (Draft) of the
share incentives regarding Company
information disclosure Refer to the
Covenant
documents 2022
related to Execution
Others Restricted
share May 25, period of the
Share Yes Yes N/A N/A
incentives 2022 equity incentive
Incentive Plan
plan
(Draft) of the
Company
Refer to the
Execution
Company’s covenant on 2021 Second
October period of the
refraining from providing Restricted Yes Yes N/A N/A
25, 2021 equity incentive
financial assistance Share
plan
Incentive Plan
41 / 204
2024 Semiannual Report
(Draft) of the
Company
Refer to the
2022
Execution
Restricted
May 25, period of the
Share Yes Yes N/A N/A
2022 equity incentive
Incentive Plan
plan
(Draft) of the
Company
II. Non-operating occupation of funds by the controlling shareholder and other affiliates during the reporting period
□ Applicable√ N/A
III. Guarantees in violation of applicable regulations
□ Applicable√ N/A
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 arbitrations during the reporting period
□ The Company was not involved in material litigations or arbitrations 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. 01-22-0001-2735 In March 2022, GDC Cayman and GDC BVI initiated the
arbitration against the Company and its wholly-owned subsidiary Appotronics HK in Refer to the Announcement on Arbitration with GDC Cayman and
respect of the dispute over the implementation of the Settlement Agreement. Later, the GDC BVI (No. 2022-028) disclosed by the Company at the website of
Company raised counter-claims against GDC Cayman, GDC BVI, Mr. ZHANG the Shanghai Stock Exchange (www.sse.com.cn) on April 2, 2022 for
Wanneng and his management team on the ground that GDC Cayman, GDC BVI, Mr. details.
ZHANG Wanneng and his management team violated the provisions of the Shareholders’
42 / 204
2024 Semiannual Report
Agreement and Settlement Agreement.
(II) Litigations and arbitrations that have not been disclosed in interim announcements or about which there is new information available
√ Applicable□ N/A
In RMB 0’000
During the reporting period:
Whether
Party any
jointly provision Result
Type of Amount Enforcement of
Plaintiff/claimant Defendant/respondent and Background is Status and
litigation/arbitration claimed judgment/award
severally recognized effect
liable and the
amount
(2021) Yue 73
Zhi Min Chu
No. 1860 In
the maliciously
initiated case of
dispute over
liabilities for
damages due to
an intellectual
property The court
Appotronics litigation, the approved
Infringement on Case
Corporation Delta Electronics, Inc. - plaintiff held 1,000.00 No to -
patent for invention closed
Limited that the withdraw
defendant, Delta the case
Electronics,
Inc., initiated an
intellectual
property
litigation
maliciously
against the
plaintiff, which
infringed the
43 / 204
2024 Semiannual Report
rights and
interests of the
plaintiff.
HKIAC/A24154
arbitration case
of contract
dispute, in
which the
claimant held
No less
that the Received
than
Espedeo Holdings Appotronics Hong respondent the notice Trial not
- Contract dispute USD No -
Limited Kong Limited violated the of completed
3.1671
Purchase and arbitration
million
Sales
Agreement,
which resulted
in economic
losses to the
claimant.
Note: Espedeo Holdings Limited is a wholly-owned subsidiary of GDC BVI.
Other information
√ Applicable□ N/A
As of the end of the reporting period, 18 petitions for invalidation were submitted for our patent for invention No. ZL200880107739.5, and 12 petitions for
invalidation were submitted for our patent for invention No. ZL200810065225.X, of which 29 invalidation cases with the Company as the patentee have been decided
by the China National Intellectual Property Administration, with the patents sustained, or withdrawn by the petitioner, and only 1 case is in trial at the China National
Intellectual Property Administration.
There is 1 invalidation petition raised against other patents of the Company, which is under trial at the China National Intellectual Property Administration.
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2024 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
Summary Reference
The Company expects to engage in daily related-
party transactions with China Film Equipment Refer to the Announcement on the Prediction of
Co., Ltd. and its affiliates, Xiaomi Daily Related-party Transactions in 2024 (No.
Communications Co., Ltd. and its affiliates, and 2024-036) disclosed by the Company at the
Shenzhen YLX Technology Development Co., website of the Shanghai Stock Exchange
Ltd. for the amount of RMB 322.7000 million in (www.sse.com.cn) on April 27, 2024.
2024.
2. Matters already disclosed in the interim announcements about which there is new information
available
□ Applicable√ N/A
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
Summary Reference
To reduce the uncertainty that may be caused by the
participating company GDC BVI to the development of the Refer to the Announcement on the
Company, and further concentrate the Company’s resources Transfer of Partial Equities in
on the development of growth businesses, the Company Subsidiary and Related-party
transferred the 51% equity interests it held in the wholly- Transactions (No. 2024-021)
owned subsidiary Appotronics HK to Long Pine Investment, disclosed by the Company at the
Inc., an enterprise under the indirect control of the actual website of the Shanghai Stock
controller of the Company. After this transaction was Exchange (www.sse.com.cn) on April
completed, Appotronics HK was no longer included in the 13, 2024.
scope of the Company’s consolidated statements.
2. Matters already disclosed in the interim announcements about which there is new information
available
□ Applicable√ N/A
3. Matters that have not been disclosed in any interim announcement
□ Applicable√ N/A
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2024 Semiannual Report
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
2. Matters already disclosed in the interim announcements about which there is 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 is 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) Others
□ Applicable√ N/A
XI. Material contracts and performance thereof
(I) Trusteeship, contracting and lease
□ Applicable√ N/A
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2024 Semiannual Report
(II) Material guarantees that have been performed or have not yet been fully performed during the reporting period
√ Applicable□ N/A
In RMB 0’000
External guarantees provided by the Company (excluding those provided for the subsidiaries)
Whethe
Relationshi Commence Amount
r the Relate
p between Guar ment date Incepti Whether the of the Relate
obligatio Count d-
the antee of on Expiry Collater obligation overdue d-
Guarant Type of Principa n er- party
guarantor Obligor d guarantee date of date of al (if guaranteed obligati party
or guarantee l debt guarant guara guara
and the amou (signing guaran guarantee any) has been on relatio
eed has ntee ntee
listed nt date of tee discharged guarant n
become or not
company agreement) eed
overdue
Total amount of guarantees provided during the reporting period 0
(excluding those provided for the subsidiaries)
Balance of guarantees as of the end of the reporting period (A) 0
(excluding those provided for the subsidiaries)
Guarantees provided by the Company or its subsidiaries for the subsidiaries of the Company
Whet
Whet
her
her Amo
the Whet
the unt of
Relationship Relationsh oblig her
Commencem oblig the
between the ip between Type ation there’
ent date of Inception ation overd
Guaran guarantor the obligor Guarantee Expiry date of of guar sa
Obligor guarantee date of guara ue
tor and the and the d amount guarantee guaran antee count
(signing date guarantee nteed oblig
listed listed tee d has er
of agreement) has ation
company company beco guara
been guara
me ntee
disch nteed
over
arged
due
Appotro Three years from the
CINEAPP Joint
nics expiry of the performance
O Laser Controlled and
Corpora Headquarters 4,000.00 2023/10/26 2023/8/25 period of the debtor as No No - No
Cinema subsidiary several
tion provided in the specific
Technolog liability
Limited financing contract.
47 / 204
2024 Semiannual Report
y (Beijing)
Co., Ltd.
CINEAPP
Appotro
O Laser The guarantee period is Joint
nics
Cinema Controlled three years from the date and
Corpora Headquarters 5,000.00 2023/10/16 2023/10/16 No No - No
Technolog subsidiary of termination of claims several
tion
y (Beijing) determination period. liability
Limited
Co., Ltd.
The period of guarantee
by the guarantor is three
CINEAPP years from the expiry of
Appotro
O Laser the debt performance Joint
nics
Cinema Controlled period specified in the and
Corpora Headquarters 10,000.00 2023/11/3 2023/11/3 No No - No
Technolog subsidiary master contract, where several
tion
y (Beijing) the period of guarantee liability
Limited
Co., Ltd. under each master
contract shall be
calculated separately.
Formovie
Appotro
(Chongqin Joint
nics
g) Controlled and
Corpora Headquarters 20,000.00 2021/9/10 2021/9/10 2028/4/25 No No - No
Innovative subsidiary several
tion
Technolog liability
Limited
y Co., Ltd.
Formovie
Appotro
(Chongqin Joint
nics
g) Controlled and
Corpora Headquarters 9,000.00 2021/12/6 2021/12/6 2026/12/30 No No - No
Innovative subsidiary several
tion
Technolog liability
Limited
y Co., Ltd.
Formovie
Appotro
(Chongqin Three years after the due Joint
nics
g) Controlled date for the obligations and
Corpora Headquarters 12,000.00 2024/3/29 2023/3/24 No No - No
Innovative subsidiary under the specific facility several
tion
Technolog in the master contract. liability
Limited
y Co., Ltd.
48 / 204
2024 Semiannual Report
Three years after the due
date (which will not be
adjusted due to
Formovie accelerated maturity) of
Appotro
(Chongqin the latest financing due Joint
nics
g) Controlled and payable among all the and
Corpora Headquarters 5,000.00 2024/3/26 2021/12/21 No No - No
Innovative subsidiary financings drawn and several
tion
Technolog used during the period of liability
Limited
y Co., Ltd. occurrence of guaranteed
debts under the master
agreement or/and inter-
bank borrowing.
Total amount of guarantees provided for the subsidiaries during the
6,729.84
reporting period
Balance of guarantees provided for the subsidiaries as of the end of the
33,771.13
reporting period (B)
Total amount of guarantees provided by the Company (including those provided for the subsidiaries)
Total amount guaranteed (A+B) 33,771.13
Proportion of total amount guaranteed to the net assets of the Company
12.28
(%)
Including:
Total amount of guarantees provided for the shareholders, actual controller
0
and their affiliates (C)
Total amount of debt guarantees directly or indirectly provided for the
32,641.30
obligors whose equity-debt ratio exceeds 70% (D)
Total amount guaranteed in excess of 50% of the net assets of the Company
0
(E)
Total amount guaranteed (C+D+E) 32,641.30
Explanation about outstanding guarantees for which the Company may
N/A
assume joint and several liability
Explanation about guarantees N/A
49 / 204
2024 Semiannual Report
(III) Other material contracts
□ Applicable√ N/A
XII. Use of offering proceeds
√ Applicable□ N/A
(I) Overall use of offering proceeds
√ Applicable□ N/A
In RMB 0’000
Cumulative
Including: Cumulative investment
Total Cumulative
Net Cumulative investment progress of
offering total Ratio of
offering Total total excess progress of excess Total
proceeds offering the
Source Date of proceeds excess offering offering offering Amount offering
Total committed proceeds amount
of receiving after offering proceeds proceeds as proceeds invested proceeds
offering in the used as of invested
offering offering deduction proceeds used as of of the end used as of in this with the
proceeds prospectus the end of in this
proceeds proceeds of offering (3) = (1) the end of of the the end of year (8) purpose
or offering the year (%)
expenses - (2) the reporting the changed
circular reporting (9)=(8)/(1)
(1) reporting period (%) reporting
(2) period (4)
period (5) (6)=(4)/(1) period (%)
(7)=(5)/(3)
Initial
July 16,
public 119,000.00 106,247.08 100,000.00 6,247.08 97,453.49 7,013.54 91.72 112.27 7,637.38 7.19 None
2019
offering
Total - 119,000.00 106,247.08 100,000.00 6,247.08 97,453.49 7,013.54 - - 7,637.38 - -
(II) Breakdown of investment projects
√ Applicable□ N/A
1. Breakdown use of offering proceeds
√ Applicable□ N/A
In RMB 0’000
Whether Whet Total Amount Cumulati Cumula Date Com Whet Specifi Bene Benefit Materia
Source of
it is an her investment invested ve total tive for the plete her c fits s or l
offering Project Nature Balance
investmen chan amount in this offering investm projec d or the reason reali R&D changes
proceeds
t project ge of planned year proceeds ent t to not invest for zed results in the
50 / 204
2024 Semiannual Report
in the inves with used as of progress reach ment failing in achiev project
prospectu tmen offering the end of as of the the progr to the ed by feasibilit
s or t is proceeds the end of worki ess achieve curre the y; if any,
offering invol (1) reporting the ng meets the nt project describe
circular ved period (2) reportin conditi the plan of year the
g period on for progr invest specific
(%) its ess ment reasons
(3) = intend plann progre
(2)/(1) ed use ed ss
[Note
1]
R&D and
industriali
Produc
zation of
Initial tion Decem N/A
new 5,161.67
public and Yes No 31,300.00 - 27,931.11 89.24 ber Yes Yes N/A [Note N/A No
generation [Note 3]
offering constru 2022 2]
of laser
ction
display
products
R&D
center at
Initial
the head March
public R&D Yes No 28,400.00 2,008.62 24,226.92 85.31 No Yes N/A N/A N/A No N/A
office of 2025
offering
Appotroni
cs [Note 4]
Informatio
Operati
Initial n system
on March
public upgrade Yes No 7,000.00 552.95 4,742.42 67.75 No Yes N/A N/A N/A No N/A
manag 2025
offering and
ement
building
Supple
Suppleme
mentin
Initial ntary
g the
public working Yes No 33,300.00 - 33,539.50 100.72 N/A Yes Yes N/A N/A N/A No N/A
workin
offering capital
g
[Note 5]
capital
51 / 204
2024 Semiannual Report
and
repaym
ent of
loans
Initial Share
7,075.81
public repurchase Others No No 5,075.81 7,013.54 99.12 N/A No Yes N/A N/A N/A No N/A
[Note 7]
offering [Note 6]
Total - - - - 107,075.81 7,637.38 97,453.49 - - - - - - - - 5,161.67
[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. On December 8, 2023, the Company held the 24th meeting of the second Board of Directors and the 22th meeting of the second
Board of Supervisors, approving the Proposal on Postponing Some Investment Projects through deliberation, and agreeing the Company to postpone the time for
some investment projects to reach the working condition for its intended use. The time of reaching the working condition for its intended use of the investment projects
“R&D center at the head office of Appotronics” and “information system upgrade and building” were adjusted to March 2025;
[Note 2] The expected benefit of the “R&D and industrialization of new generation of laser display products” is an additional capacity of 135,000 sets per year. After
this project was implemented, the Company has achieved the target production capability; the Company’s actual output varies with the market demands. Given the
factors such as tense supply chain and changes in macro conditions both in and outside of China, the Company’s actual output did not achieve the target additional
output;
[Note 3] On April 26, 2023, the Company held the 19th meeting of the second Board of Directors and the 18th meeting of the second Board of Supervisors respectively,
which deliberated and approved the Proposal on the Completion of Part of the Company’s Investment Projects and Permanent Replenishment of Liquidity with the
Surplus Raised Funds, and agreed that the Company would close the investment project “R&D and industrialization of new generation of laser display products”, and
a total of RMB 51.6167 million saved (as of December 31, 2022) shall be used for permanent replenishment of the working capital. As at the date of remittance, the
actual balance in the special account was RMB 52.0022 million (including the interest income and wealth management income, net of handling fees). This special
account (Huaxia Bank Co., Ltd. Shenzhen Houhai Sub-branch, account number: 10869000000305964) has been deregistered on May 17, 2023, and the funds have
been transferred to the general account of the Company;
[Note 4] The Company held the 19th meeting of the second Board of Directors and the 18th meeting of the second Board of Supervisors on April 26, 2023 and the
annual general meeting for 2022 on May 19, 2023, respectively, 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 center at the head office of Appotronics”,
and to decrease the “equipment purchase expenses” by RMB 65.0000 million and increase the “R&D expenditures” by RMB 65.0000 million;
[Note 5] During the project, 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). As of the date of approval for issue of this Report, the special account (Huaxia Bank Co.,
Ltd. Shenzhen Houhai Sub-branch, account number: 10869000000251463) has been deregistered. The interest of RMB 1,418.11 incurred after the project has been
paid to the basic account of the Company to be used as supplementary working capital;
[Note 6] The Company held the 9th meeting of the second Board of Directors and the 1st extraordinary general meeting of shareholders for 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 funds to repurchase some RMB-denominated ordinary shares (A shares) issued by it through call auction;
52 / 204
2024 Semiannual Report
The Company held the 27th meeting of the second Board of Directors on January 31, 2024, approving the Proposal on Repurchase of Shares of the Company through
Call Auction through deliberation, and agreeing the Company to use the excess offering funds and own funds to repurchase some RMB-denominated ordinary shares
(A shares) issued by it through call auction;
and the Company held the 31st meeting of the second Board of Directors on April 17, 2024, approving the Proposal on 2024 Second Repurchase of Shares of the
Company through Call Auction through deliberation, and agreeing the Company to use the excess offering funds and own funds to repurchase some RMB-denominated
ordinary shares (A shares) issued by it through call auction.
[Note 7] There was a difference between the committed investment by the end of the period and the total offering proceeds committed, which was primarily due to
the repurchase made with the incomes from wealth management of excess offering proceeds and interests on deposits.
[Note 8] Subject to the restriction of relevant management measures and banks’ requirements in operation, the Company paid expenses including salaries, social
insurance premiums, and contributions for housing funds for investment projects with non-offering proceeds, and then repaid such expenses by transferring funds of
the corresponding amount from the special account of offering proceeds to the general account of the Company;
[Note 9] Some sum values do not correspond to the aggregate of breakdown values in the table above due to rounding.
53 / 204
2024 Semiannual Report
2. Breakdown use of excess offering proceeds
√ Applicable□ N/A
In RMB 0’000
Cumulative investment progress as
Total excess offering
Cumulative total offering proceeds used as of the end of the reporting period
Purpose Nature proceeds planned for Remark
of the end of the reporting period (2) (%)
investment (1)
(3) = (2)/(1)
Share
Others 2,000.00 1937.73 96.89 Repurchase in 2022
repurchase
Share
Others 4,121.12 4,121.12 100.00 Repurchase in 2024
repurchase
Share Second repurchase
Others 954.69 954.69 100.00
repurchase in 2024
Total - 7,075.81 7,013.54 - -
(III) Change in or termination of investment projects during the reporting period
□ Applicable√ N/A
54 / 204
2024 Semiannual Report
(IV) Other information about the use of offering proceeds during the reporting period
1. Early investment and replacement of projects invested with offering proceeds
□ Applicable√ N/A
2. 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
In RMB 0’000
Whether
the
Effective
greatest
amount Balance of
balance
Date of deliberated cash
exceeds
deliberation by the for cash Start date End date management
the
Board of Directors management at the end of
authorized
of offering the period
amount
proceeds
during the
period
June 25, 2023 24,900.00 June 25, 2023 June 25, 2024 No
8,300.00
May 30, 2024 11,600.00 May 30, 2024 May 30, 2025 No
Other information
The Proposal on Cash Management of Temporarily Idle Offering Proceeds was approved through
deliberation at the 20th meeting of the second Board of Directors and the 19th meeting of the second Board
of Supervisors held by the Company on June 25, 2023. It was approved that, without affecting the normal
implementation of the investment plan for offering proceeds, a maximum of RMB 249.00 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,
which shall be effective within 12 months from the review and approval.
The Proposal on Cash Management of Temporarily Idle Offering Proceeds was approved through
deliberation at the 33th meeting of the second Board of Directors and the 25th meeting of the second Board
of Supervisors held by the Company on May 30, 2024. It was approved that, without affecting the normal
implementation of the investment plan for offering proceeds, a maximum of RMB 116.00 million
(inclusive) 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, 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 50.00 million (inclusive), which
shall be effective within 12 months from the review and approval.
4. Others
√ Applicable□ N/A
1. The Company held the 27th meeting of the second Board of Directors on January 31, 2024,
approving the Proposal on Repurchase of Shares of the Company through Call Auction through
55 / 204
2024 Semiannual Report
deliberation, and agreeing the Company to use the excess offering proceeds and own funds to repurchase
some RMB-denominated ordinary shares (A shares) issued by it through call auction via the stock trading
system of the Shanghai Stock Exchange, with the repurchase price not exceeding RMB 27.00 per share
(inclusive), the repurchase funds totaling no more than RMB 60.00 million (inclusive) and no less than
RMB 30.00 million (inclusive), and the repurchase period being six months from the date on which this
share repurchase plan is approved by the Board of Directors.
As of April 15, 2024, the Company repurchased 3,351,740 shares in the aggregate through call
auction in 2024 and paid RMB 59,981,548.54 (excluding stamp duty, commissions and other transaction
fees). The repurchase of shares has been completed.
2. The Company held the 31st meeting of the second Board of Directors on April 17, 2024, approving
the Proposal on 2024 Second Repurchase of Shares of the Company through Call Auction through
deliberation, and agreeing the Company to use the excess offering proceeds and own funds to repurchase
some RMB-denominated ordinary shares (A shares) issued by it through call auction via the stock trading
system of the Shanghai Stock Exchange, with the repurchase price not exceeding RMB 27.00 per share
(inclusive), the repurchase funds totaling no more than RMB 30.00 million (inclusive) and no less than
RMB 20.00 million (inclusive), and the repurchase period being no more than six months from the date
on which this share repurchase plan is approved by the Board of Directors.
As of June 30, 2024, the Company repurchased 1,590,743 shares in the aggregate through call auction
in 2024 at the second phase and paid RMB 29,532,119.79 (excluding stamp duty, commissions and other
transaction fees).
XIII. Other significant matters
□ Applicable√ N/A
56 / 204
2024 Semiannual Report
Section VII Changes in Shares and Shareholders
I. Changes in shares
(I) Statement of changes in shares
1. Statement of changes in shares
Unit: Share
Before the change +/- After the change
Issuance Capitalization
Percentage Bonus Percentage
Quantity of new of capital Others Sub-total Quantity
(%) shares (%)
shares reserve
I. Non-tradable shares 0 0 0 0 0 0 0 0 0
1. Shares held by the State 0 0 0 0 0 0 0 0 0
2. Shares held by State-owned
0 0 0 0 0 0 0 0 0
corporations
3. Shares held by other
0 0 0 0 0 0 0 0 0
domestic investors
Including: Shares held by
domestic non-state-owned 0 0 0 0 0 0 0 0 0
corporations
Shares held by
0 0 0 0 0 0 0 0 0
domestic natural persons
4. Shares held by foreign
0 0 0 0 0 0 0 0 0
investors
Including: Shares held by
0 0 0 0 0 0 0 0 0
foreign corporations
Shares held by foreign
0 0 0 0 0 0 0 0 0
natural persons
II. Tradable shares 462,211,338 100 0 0 0 2,922,290 2,922,290 465,133,628 100
1. RMB-denominated
462,211,338 100 0 0 0 2,922,290 2,922,290 465,133,628 100
ordinary shares
57 / 204
2024 Semiannual Report
2. Foreign currency-
denominated shares listed 0 0 0 0 0 0 0 0 0
domestically
3. Foreign currency-
denominated shares listed 0 0 0 0 0 0 0 0 0
overseas
4. Others 0 0 0 0 0 0 0 0 0
III. Total shares 462,211,338 100 0 0 0 2,922,290 2,922,290 465,133,628 100
2. Explanation about changes in shares
√ Applicable□ N/A
(1) On February 2, 2024, 394,040 new shares reserved by the Company for the first vesting period under the 2021 Second Restricted Share Incentive Plan and
the first vesting period reserved for the 2022 Restricted Share Incentive Plan became available for trading, increasing the Company’s shares from 462,211,338 shares
to 462,605,378 shares;
(2) On June 20, 2024, 2,528,250 new shares for the second vesting period in the initial grant under the 2022 Restricted Share Incentive Plan became available for
trading, increasing the Company’s shares from 462,605,378 shares to 465,133,628 shares.
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
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
58 / 204
2024 Semiannual Report
II. Shareholders
(I) Total number of shareholders:
Total number of ordinary shareholders as of the end
16,858
of the reporting period (accounts)
Total number of shareholders of preferred shares
whose voting right has been restituted as of the end of 0
the reporting period (accounts)
Total number of shareholders holding shares with
special voting rights as of the end of the reporting 0
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
Unit: Share
Shares held by top 10 shareholders (excluding shares lent out under the refinancing arrangement)
Number of Shares pledged,
Balance of non-tradable marked, or
Change shares Number shares held, frozen
during held as of of non- including
Shareholder Percentage Shareholder
the the end of tradable the shares
(Full name) (%) nature
reporting the shares lent out Share
period reporting held under the Quantity
status
period refinancing
arrangement
Shenzhen Domestic
Appotronics non-state-
0 79,762,679 17.15 0 0 None 0
Holdings owned
Limited corporation
Shenzhen
Yuanshi Laser
Domestic
Industrial
non-state-
Investment 0 24,139,500 5.19 0 0 None 0
owned
Consulting
corporation
Partnership
(LP)
Nantong Strait
Domestic
Appotronics
non-state-
Investment 0 18,381,208 3.95 0 0 None 0
owned
Partnership
corporation
(LP)
Shenzhen
Appotronics Domestic
Daye non-state-
0 17,056,167 3.67 0 0 None 0
Investment owned
Partnership corporation
(LP)
59 / 204
2024 Semiannual Report
Shenzhen
Appotronics Domestic
Hongye non-state-
0 13,601,344 2.92 0 0 None 0
Investment owned
Partnership corporation
(LP)
Shenzhen
Appotronics Domestic
Chengye non-state-
0 10,394,846 2.23 0 0 None 0
Consulting owned
Partnership corporation
(LP)
Bank of China
Co., Ltd. -
Stable Income
Bond
-92,255 9,945,837 2.14 0 0 None 0 Others
Securities
Investment
Fund of E
Fund
Shenzhen
Jinleijing Domestic
Investment non-state-
0 9,892,706 2.13 0 0 None 0
Limited owned
Partnership corporation
(LP)
Domestic
-
LUO Xiaobin 4,403,004 0.95 0 0 None 0 natural
1,601,000
person
Domestic
LONG
-15,200 4,135,800 0.89 0 0 None 0 natural
Zaiping
person
Shares held by top 10 holders of tradable shares (excluding shares lent out under the refinancing arrangement)
Number of tradable Type and number of shares
Shareholder
shares held Type Quantity
RMB-denominated
Shenzhen Appotronics Holdings Limited 79,762,679 79,762,679
ordinary share
Shenzhen Yuanshi Laser Industrial RMB-denominated
24,139,500 24,139,500
Investment Consulting Partnership (LP) ordinary share
Nantong Strait Appotronics Investment RMB-denominated
18,381,208 18,381,208
Partnership (LP) ordinary share
Shenzhen Appotronics Daye Investment RMB-denominated
17,056,167 17,056,167
Partnership (LP) ordinary share
Shenzhen Appotronics Hongye RMB-denominated
13,601,344 13,601,344
Investment Partnership (LP) ordinary share
Shenzhen Appotronics Chengye RMB-denominated
10,394,846 10,394,846
Consulting Partnership (LP) ordinary share
Bank of China Co., Ltd. - Stable Income
RMB-denominated
Bond Securities Investment Fund of E 9,945,837 9,945,837
ordinary share
Fund
Shenzhen Jinleijing Investment Limited RMB-denominated
9,892,706 9,892,706
Partnership (LP) ordinary share
RMB-denominated
LUO Xiaobin 4,403,004 4,403,004
ordinary share
RMB-denominated
LONG Zaiping 4,135,800 4,135,800
ordinary share
60 / 204
2024 Semiannual Report
Description of special repurchase As of the end of the reporting period, the Company has repurchased 5,842,483
shareholders among top 10 shares, accounting for 1.26% of the Company’s total share capital of
shareholders 465,133,628 shares.
Description of entrusting voting right,
entrusted voting right and waiver of N/A
voting right of the shareholders above
1. As of June 30, 2024, the following entities in top 10 shareholders of the
Company constituted persons acting in concert: Shenzhen Appotronics
Holdings Limited, Shenzhen Yuanshi Laser Industrial Investment Consulting
Partnership (LP), Shenzhen Appotronics Daye Investment Partnership (LP),
Affiliates or concert parties among the Shenzhen Appotronics Hongye Investment Partnership (LP), Shenzhen
shareholders stated above Jinleijing Investment Limited Partnership (LP), and Shenzhen Appotronics
Chengye Consulting Partnership (LP);
2. Except for the above, we are 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 been restituted and N/A
the number of shares held by them
Lending of shares in refinancing businesses by shareholders holding over 5% shares, top 10
shareholders, and top 10 holders of tradable shares
□ Applicable√ N/A
Changes from the prior period due to lending/payback in refinancing businesses by top 10
shareholders and top 10 holders of tradable shares
□ Applicable√ N/A
Number of non-tradable shares held by top 10 holders and lock-up period
□ Applicable√ N/A
Statement of top 10 holders of domestic depository receipts as of the end of the reporting period
□ Applicable√ N/A
Participation in the lending of shares in refinancing businesses by holders holding over 5%
depository receipts, top 10 holders of depository receipts, and top 10 holders of tradable shares
□ Applicable√ N/A
Changes from the prior period due to lending/payback in refinancing businesses by top 10 holders
of depository receipts and top 10 holders of tradable depository receipts
□ 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
61 / 204
2024 Semiannual Report
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
Unit: Share
Change in
shareholding
Opening Closing Cause of
Name Title during the
shareholding shareholding change
reporting
period
WANG Director,
128,124 178,124 50,000 Share incentive
Yingxia Financial Director
Key technical
HU Fei 265,316 317,816 52,500 Share incentive
staff
Key technical
YU Xin 290,752 390,752 100,000 Share incentive
staff
WANG Key technical
229,752 282,252 52,500 Share incentive
Zeqin staff
GUO Key technical
215,052 267,552 52,500 Share incentive
Zuqiang staff
Share
incentive,
Key technical
WANG Lin 240,752 294,252 53,500 purchased on
staff (retired)
the secondary
market
Other information
□ Applicable√ N/A
(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
Number of of
of
restricted Number of restricte Number of
restricte
shares restricted d shares restricted
d shares
already shares that shares already
that
Name Title granted as at granted have granted as of
could be
the during the been the end of the
vested
beginning of reporting vested reporting
in the
the reporting period in the period
reportin
period reportin
g period
g period
Chairman &
LI Yi 3,500,000 - 0 0 3,500,000
General Manager
WANG Director, Financial
470,560 - 50,000 50,000 470,560
Yingxia Director
CHEN
Board Secretary 432,750 - 75,000 0 432,750
Yasha
62 / 204
2024 Semiannual Report
HU Fei Key technical staff 540,000 - 52,500 52,500 540,000
YU Xin Key technical staff 1,070,000 - 100,000 100,000 1,070,000
WANG
Key technical staff 632,000 - 52,500 52,500 632,000
Zeqin
GUO
Key technical staff 626,000 - 52,500 52,500 626,000
Zuqiang
Total - 72,713,10 - 382,500 307,500 7,271,310
(III) Other information
□ 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
□ Applicable√ N/A
63 / 204
2024 Semiannual Report
Section VIII Preferred Shares
□ Applicable√ N/A
64 / 204
2024 Semiannual Report
Section IX Bonds
I. Corporate bonds (including enterprise 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
June 30, 2024
Prepared by: Appotronics Corporation Limited
In RMB
Item Note June 30, 2024 December 31, 2023
Current Assets:
Monetary funds VII. 1 1,334,828,141.48 1,386,828,549.06
Balances with clearing agencies
Placements with banks and other financial
institutions
Held-for-trading financial assets VII. 2 503,130,000.00 514,010,000.00
Derivative financial assets
Notes receivable VII. 4 4,167,483.04 8,951,308.71
Accounts receivable VII. 5 322,429,228.84 180,290,007.90
Receivables financing VII. 7 65,953,036.07 11,387,400.00
Prepayments VII. 8 34,708,582.94 35,112,661.82
Premiums receivable
Amounts receivable under reinsurance
contracts
Reinsurer’s share of insurance contract
reserves
Other receivables VII. 9 30,579,134.59 30,698,687.55
Including: Interest receivable
Dividend receivable 14,111,064.00 14,023,746.00
Financial assets purchased under resale
agreements
Inventories VII. 10 660,442,864.55 656,346,799.67
Including: Data resources
Contract assets VII. 6 1,830,851.39 1,664,740.29
Assets held for sale
Non-current assets due within 1 year VII. 12 50,522,240.47 41,997,218.73
Other current assets VII. 13 49,455,379.32 48,417,270.11
Total current assets 3,058,046,942.69 2,915,704,643.84
Non-current Assets:
Loans and advances
Debt investments
Other debt investments
Long-term receivables VII. 16 22,102,504.94 26,000,543.13
Long-term equity investment VII. 17 6,183,769.99 144,726,776.43
Investment in other equity instruments VII. 18 7,075,419.38 7,075,419.38
Other non-current financial assets VII. 19 99,443,720.92
Investment property
Fixed assets VII. 21 308,123,259.75 336,276,793.84
Construction in progress VII. 22 372,111,349.09 347,777,138.86
Productive biological assets
Oil and gas assets
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Right-of-use assets VII. 25 29,026,784.06 40,016,903.67
Intangible assets VII. 26 275,487,807.09 281,961,046.22
Including: Data resources
Development expenditure
Including: Data resources
Goodwill
Long-term prepaid expenses VII. 28 3,881,364.11 6,318,145.33
Deferred tax assets VII. 29 83,880,273.57 85,364,732.19
Other non-current assets VII. 30 18,308,105.15 29,348,748.27
Total non-current assets 1,225,624,358.05 1,304,866,247.32
Total assets 4,283,671,300.74 4,220,570,891.16
Current Liabilities:
Short-term borrowings VII. 32 50,032,500.00 80,036,500.00
Loans from the central bank
Taking from banks and other financial
institutions
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable VII. 35 105,114,863.34 76,001,079.07
Accounts payable VII. 36 403,638,748.50 247,318,466.10
Advance from customers VII. 37 101,638,526.13 110,573,711.24
Contract liabilities VII. 38 43,087,407.22 45,416,445.99
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 31,408,872.42 66,874,234.47
Taxes payable VII. 40 10,162,408.56 6,142,704.23
Other payables VII. 41 90,355,287.99 54,142,509.17
Including: Interest payable
Dividend payable VII. 41 32,084,193.96
Fees and commissions payable
Amounts payable under reinsurance
contracts
Liabilities held for sale
Non-current liabilities due within 1 year VII. 43 324,824,694.69 268,748,151.67
Other current liabilities VII. 44 15,980,408.92 18,441,685.83
Total current liabilities 1,176,243,717.77 973,695,487.77
Non-current Liabilities:
Insurance contract reserves
Long-term borrowings VII. 45 321,652,760.09 370,649,631.22
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities VII. 47 11,990,866.87 15,548,985.71
Long-term payables
Long-term employee benefits payable
Provisions VII. 50 54,298,545.77 58,180,985.08
Deferred income VII. 51 3,200,397.19 4,627,972.56
Deferred tax liabilities VII. 29 1,773,955.14 1,229,654.81
Other non-current liabilities
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Total non-current liabilities 392,916,525.06 450,237,229.38
Total liabilities 1,569,160,242.83 1,423,932,717.15
Owners’ Equity (Or Shareholders’ Equity):
Paid-in capital (or share capital) VII. 53 465,133,628.00 462,211,338.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserve VII. 55 1,654,818,814.25 1,616,489,567.43
Less: Treasury shares VII. 56 108,917,776.63 19,377,297.59
Other comprehensive income VII. 57 9,002,284.77 7,550,073.78
Special reserve
Surplus reserve VII. 59 84,873,365.32 84,873,365.32
General risk reserve
Retained profits VII. 60 645,947,825.53 667,122,406.05
Total owners’ (or shareholders’) equity
2,750,858,141.24 2,818,869,452.99
attributable to owners of the parent company
Minority interests -36,347,083.33 -22,231,278.98
Total owners’ (or shareholders’) equity 2,714,511,057.91 2,796,638,174.01
Total liabilities and owners’ (or
4,283,671,300.74 4,220,570,891.16
shareholders’) equity
Principal of the Company: Person in Charge of the Person in Charge of the
Accounting Work: Accounting Body:
LI Yi WANG Yingxia WANG Yingxia
Balance Sheet of the Parent Company
June 30, 2024
Prepared by: Appotronics Corporation Limited
In RMB
Item Note June 30, 2024 December 31, 2023
Current Assets:
Monetary funds 825,062,184.73 885,876,318.51
Held-for-trading financial assets 503,130,000.00 514,010,000.00
Derivative financial assets
Notes receivable 2,369,663.04 8,951,308.71
Accounts receivable XIX. 1 633,845,471.71 462,480,236.37
Receivables financing 62,086,236.07 5,996,000.00
Prepayments 7,986,712.86 6,081,606.52
Other receivables XIX. 2 358,976,925.08 14,978,163.24
Including: Interest receivable
Dividend receivable
Inventories 403,429,133.81 360,986,333.90
Including: Data resources
Contract assets 1,694,051.39 1,664,740.29
Assets held for sale
Non-current assets due within 1 year
Other current assets 31,399,670.31 26,620,443.94
Total current assets 2,829,980,049.00 2,287,645,151.48
Non-current Assets:
Debt investments
Other debt investments
Long-term receivables
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2024 Semiannual Report
Long-term equity investment XIX. 3 165,039,611.88 469,318,028.03
Investment in other equity instruments 7,075,419.38 7,075,419.38
Other non-current financial assets
Investment property
Fixed assets 85,027,283.16 65,177,438.43
Construction in progress 369,194,706.11 344,481,907.55
Productive biological assets
Oil and gas assets
Right-of-use assets 19,055,339.41 30,017,024.96
Intangible assets 277,124,967.21 283,883,645.37
Including: Data resources
Development expenditure
Including: Data resources
Goodwill
Long-term prepaid expenses 643,301.76 1,450,084.92
Deferred tax assets 29,764,368.94 33,459,331.86
Other non-current assets 17,584,475.85 28,174,416.97
Total non-current assets 970,509,473.70 1,263,037,297.47
Total assets 3,800,489,522.70 3,550,682,448.95
Current Liabilities:
Short-term borrowings 50,032,500.00 50,010,833.33
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 50,510,028.75 31,461,205.72
Accounts payable 414,426,069.74 274,312,877.51
Advance from customers
Contract liabilities 21,490,848.79 18,743,336.81
Employee benefits payable 14,392,537.21 34,021,863.01
Taxes payable 1,808,367.01 3,596,744.97
Other payables 87,189,488.58 15,161,050.55
Including: Interest payable
Dividend payable 32,084,193.96
Liabilities held for sale
Non-current liabilities due within 1 year 107,424,303.89 61,007,143.63
Other current liabilities 2,082,604.36 3,912,927.75
Total current liabilities 749,356,748.33 492,227,983.28
Non-current Liabilities:
Long-term borrowings 251,598,892.31 233,506,228.03
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 7,680,532.57 10,326,879.29
Long-term payables
Long-term employee benefits payable
Provisions 20,349,383.48 20,925,309.05
Deferred income 1,836,760.80 2,718,881.63
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities 281,465,569.16 267,477,298.00
Total liabilities 1,030,822,317.49 759,705,281.28
Owners’ Equity (Or Shareholders’ Equity):
Paid-in capital (or share capital) 465,133,628.00 462,211,338.00
Other equity instruments
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2024 Semiannual Report
Including: Preferred shares
Perpetual bonds
Capital reserve 1,672,569,968.45 1,625,258,496.25
Less: Treasury shares 108,917,776.63 19,377,297.59
Other comprehensive income
Special reserve
Surplus reserve 83,595,824.59 83,595,824.59
Retained profits 657,285,560.80 639,288,806.42
Total owners’ (or shareholders’) equity 2,769,667,205.21 2,790,977,167.67
Total liabilities and owners’ (or
3,800,489,522.70 3,550,682,448.95
shareholders’) equity
Principal of the Company: Person in Charge of the Person in Charge of the
Accounting Work: Accounting Body:
LI Yi WANG Yingxia WANG Yingxia
Consolidated Income Statement
Jan. - Jun. 2024
In RMB
Half year of Half year of
Item Note
2024 2023
I. Total operating income 1,081,409,500.21 1,073,249,037.75
Including: Operating income VII. 61 1,081,409,500.21 1,073,249,037.75
Interest income
Premiums earned
Fee and commission income
II. Total operating costs 1,036,598,728.95 1,012,145,838.42
Including: Operating costs VII. 61 745,633,299.59 668,659,467.49
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 3,739,598.40 4,005,751.53
Selling expenses VII. 63 99,322,901.25 143,399,660.02
Administrative expenses VII. 64 82,242,537.80 86,696,223.82
R&D expenses VII. 65 111,618,787.20 126,406,142.12
Financial expenses VII. 66 -5,958,395.29 -17,021,406.56
Including: Interest expense 9,734,387.32 7,061,642.05
Interest income 16,592,276.86 15,604,073.30
Add: Other income VII. 67 14,929,412.51 23,608,983.31
Investment income (loss is indicated by
VII. 68 -25,806,969.54 -2,806,106.20
“-”)
Including: Income from investments in
-41,711,273.01 -8,071,814.75
associates and joint ventures
Gains from derecognition of
financial assets at amortized cost (loss is
indicated by “-”)
Foreign exchange gains (loss is indicated
by “-”)
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Gains from net exposure hedges (loss is
indicated by “-”)
Gains from changes in fair values (loss
VII. 70 10,062,500.00
is indicated by “-”)
Losses of credit impairment (loss is
VII. 72 -10,437,805.62 -3,513,083.07
indicated by “-”)
Impairment losses of assets (loss is
VII. 73 -27,861,537.16 -29,013,931.74
indicated by “-”)
Gains from disposal of assets (loss is
VII. 71 -9,895.34 15,262.15
indicated by “-”)
III. Operating profit (loss is indicated by “-”) 5,686,476.11 49,394,323.78
Add: Non-operating income VII. 74 1,177,978.86 9,424,347.83
Less: Non-operating expenses VII. 75 577,532.42 641,261.92
IV. Total profits (total losses are indicated by
6,286,922.55 58,177,409.69
“-”)
Less: Income tax expenses VII. 76 9,216,850.86 18,649,943.64
V. Net profits (net losses are indicated by “-”) -2,929,928.31 39,527,466.05
(I) Categorized by the continuity of operation
1. Net profits from continuing operations
-2,929,928.31 39,527,466.05
(net losses are indicated by “-”)
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 (net losses are indicated by 10,909,613.44 74,914,640.95
“-”)
2. Profits or losses attributable to minority
-13,839,541.75 -35,387,174.90
shareholders (net losses are indicated by “-”)
VI. Other comprehensive income, net of tax 1,505,432.81 5,158,805.71
(I) Other comprehensive income that can be
attributable to owners of the parent company, 1,452,210.99 6,714,283.50
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
1,452,210.99 6,714,283.50
reclassified to profit or loss
(1) Other comprehensive income that will be
reclassified to profit or loss under the equity -4,176,328.87
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
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2024 Semiannual Report
(5) Reserve for cash flow hedges
(6) Exchange differences on translation of
financial statements denominated in foreign 1,452,210.99 10,890,612.37
currencies
(7) Others
(II) Other comprehensive income that can be
53,221.82 -1,555,477.79
attributable to minority shareholders, net of tax
VII. Total comprehensive income -1,424,495.50 44,686,271.76
(I) Total comprehensive income that can be
12,361,824.43 81,628,924.45
attributable to owners of the parent company
(II) Total comprehensive income that can be
-13,786,319.93 -36,942,652.69
attributable to minority shareholders
VIII. Earnings per share:
(I) Basic earnings per share (RMB/share) 0.02 0.16
(II) Diluted earnings per share (RMB/share) 0.02 0.16
In the event of business combinations involving entities under common control during the period, 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.
Principal of the Company: Person in Charge of the Person in Charge of the
Accounting Work: Accounting Body:
LI Yi WANG Yingxia WANG Yingxia
Income Statement of the Parent Company
Jan. - Jun. 2024
In RMB
Note Half year of Half year of
Item
2024 2023
I. Operating income XIX. 4 710,455,810.59 542,956,800.34
Less: Operating costs XIX. 4 560,232,751.34 368,571,473.83
Taxes and surcharges 3,058,211.98 3,199,879.01
Selling expenses 32,036,077.04 37,056,481.71
Administrative expenses 37,794,728.35 46,709,472.09
R&D expenses 72,390,894.41 70,859,871.98
Financial expenses -10,376,332.95 -16,034,801.70
Including: Interest expense 3,028,119.55 3,133,969.39
Interest income 14,294,503.35 14,313,472.46
Add: Other income 9,804,296.31 19,359,728.30
Investment income (loss is indicated by XIX. 5
36,000,814.10 12,717,708.55
“-”)
Including: Income from investments in
-436,832.42
associates and joint ventures
Gains from derecognition of
financial assets at amortized cost (loss is
indicated by “-”)
Gains from net exposure hedges (loss is
indicated by “-”)
Gains from changes in fair values (loss is
10,062,500.00
indicated by “-”)
Losses of credit impairment (loss is
-6,754,898.59 -2,891,569.80
indicated by “-”)
Impairment losses of assets (loss is
-13,305,434.47 -7,961,985.67
indicated by “-”)
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2024 Semiannual Report
Gains from disposal of assets (loss is
12,718.43
indicated by “-”)
II. Operating profit (loss is indicated by “-”) 51,126,757.77 53,831,023.23
Add: Non-operating income 66,902.53 362,544.72
Less: Non-operating expenses 23,187.55 216,230.87
III. Total profits (total losses are indicated by
51,170,472.75 53,977,337.08
“-”)
Less: Income tax expenses 1,089,524.41 1,792,767.89
IV. Net profits (net losses are indicated by “-”) 50,080,948.34 52,184,569.19
(I) Net profits from continuing operations
50,080,948.34 52,184,569.19
(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 50,080,948.34 52,184,569.19
VII. Earnings per share:
(I) Basic earnings per share (RMB/share)
(II) Diluted earnings per share
(RMB/share)
Principal of the Company: Person in Charge of the Person in Charge of the
Accounting Work: Accounting Body:
LI Yi WANG Yingxia WANG Yingxia
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2024 Semiannual Report
Consolidated Cash Flow Statement
Jan. - Jun. 2024
In RMB
Half year of Half year of
Item Note
2024 2023
I. Cash Flows from Operating Activities:
Cash receipts from the sale of goods and the
992,459,890.22 1,117,055,783.68
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 4,305,653.31 4,435,896.68
Other cash receipts relating to operating
VII. 78 26,945,289.81 90,837,327.64
activities
Sub-total of cash inflows from operating
1,023,710,833.34 1,212,329,008.00
activities
Cash payments for goods purchased and
582,056,304.37 678,514,829.90
services received
Net increase in loans and advances to
customers
Net increase in balance with the central bank
and due from banks and other financial
institutions
Cash payments for claims and policyholders’
benefits under direct insurance contracts
Net increase in placements with banks and
other financial institutions
Cash payments for interest, fees and
commissions
Cash payments for insurance policyholder
dividends
Cash payments to and on behalf of employees 229,240,243.70 235,611,354.36
Payments of various types of taxes 39,923,684.79 30,029,161.72
Other cash payments relating to operating
VII. 78 251,637,270.71 153,434,829.89
activities
Sub-total of cash outflows from operating
1,102,857,503.57 1,097,590,175.87
activities
Net cash flows from operating activities -79,146,670.23 114,738,832.13
II. Cash Flows from Investing Activities:
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2024 Semiannual Report
Cash receipts from disposals and recovery of
VII. 78 780,000,000.00 765,000,000.00
investments
Cash receipts from investment income 26,283,772.27 5,265,708.55
Net cash receipts from disposals of fixed
assets, intangible assets and other long-term 138,633.58 30,975.00
assets
Net cash receipts from disposals of
subsidiaries and other business units
Other cash receipts relating to investing
VII. 78 1,362,168.77
activities
Sub-total of cash inflows from investing
807,784,574.62 770,296,683.55
activities
Cash payments to acquire or construct fixed
assets, intangible assets and other long-term 39,993,557.76 41,659,342.63
assets
Cash payments to acquire investments VII. 78 768,000,001.00 976,816,480.00
Net increase in pledged loans
Net cash payments for acquisitions of
11,831,365.16
subsidiaries and other business units
Other cash payments relating to investing
1,364,715.49
activities
Sub-total of cash outflows from investing
809,358,274.25 1,030,307,187.79
activities
Net cash flows from investing activities -1,573,699.63 -260,010,504.24
III. Cash Flows from Financing Activities:
Cash receipts from capital contributions 46,113,350.89 50,609,959.00
Including: Cash receipts from capital
contributions from minority shareholders of
subsidiaries
Cash receipts from borrowings 95,230,654.50 265,000,000.00
Other cash receipts relating to financing
activities
Sub-total of cash inflows from financing
141,344,005.39 315,609,959.00
activities
Cash repayments of borrowings 109,082,709.91 137,959,994.00
Cash payments for distribution of dividends
22,238,477.89 49,596,180.44
or profits or settlement of interest expenses
Including: Payments for distribution of
dividends or profits to minority shareholders of 10,626,000.00 11,040,000.00
subsidiaries
Other cash payments relating to financing
VII. 78 106,539,207.31 17,407,047.01
activities
Sub-total of cash outflows from financing
237,860,395.11 204,963,221.45
activities
Net cash flows from financing activities -96,516,389.72 110,646,737.55
IV. Effect of Foreign Exchange Rate Changes
1,057,197.12 8,274,666.00
on Cash and Cash Equivalents
V. Net Increase in Cash and Cash
-176,179,562.46 -26,350,268.55
Equivalents
Add: Opening balance of cash and cash
1,297,848,895.75 1,254,582,403.12
equivalents
VI. Closing Balance of Cash and Cash
1,121,669,333.29 1,228,232,134.57
Equivalents
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2024 Semiannual Report
Principal of the Company: Person in Charge of the Person in Charge of the
Accounting Work: Accounting Body:
LI Yi WANG Yingxia WANG Yingxia
Cash Flow Statement of the Parent Company
Jan. - Jun. 2024
In RMB
Item Note Half year of Half year of
2024 2023
I. Cash Flows from Operating Activities:
Cash receipts from the sale of goods and the
522,941,818.51 631,177,814.33
rendering of services
Receipts of tax refunds 728,673.28 1,915,638.25
Other cash receipts relating to operating
52,327,476.52 34,660,128.09
activities
Sub-total of cash inflows from operating
575,997,968.31 667,753,580.67
activities
Cash payments for goods purchased and
461,646,914.19 345,900,092.57
services received
Cash payments to and on behalf of employees 124,688,419.86 147,052,438.69
Payments of various types of taxes 13,403,951.33 12,354,746.49
Other cash payments relating to operating
56,817,195.43 36,687,871.73
activities
Sub-total of cash outflows from operating
656,556,480.81 541,995,149.48
activities
Net cash flows from operating activities -80,558,512.50 125,758,431.19
II. Cash Flows from Investing Activities:
Cash receipts from disposals and recovery of
780,000,000.00 765,000,000.00
investments
Cash receipts from investment income 34,480,972.27 12,717,708.55
Net cash receipts from disposals of fixed
assets, intangible assets and other long-term - 24,975.00
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 investing
814,480,972.27 777,742,683.55
activities
Cash payments to acquire or construct fixed
assets, intangible assets and other long-term 38,902,930.88 35,226,743.48
assets
Cash payments to acquire investments 769,009,109.50 976,818,280.00
Net cash payments for acquisitions of
subsidiaries and other business units
Other cash payments relating to investing
activities
Sub-total of cash outflows from investing
807,912,040.38 1,012,045,023.48
activities
Net cash flows from investing activities 6,568,931.89 -234,302,339.93
III. Cash Flows from Financing Activities:
Cash receipts from capital contributions 46,113,350.89 50,609,959.00
Cash receipts from borrowings 95,230,654.50 135,000,000.00
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2024 Semiannual Report
Other cash receipts relating to financing
activities
Sub-total of cash inflows from financing
141,344,005.39 185,609,959.00
activities
Cash repayments of borrowings 22,282,709.91 5,750,000.00
Cash payments for distribution of dividends
5,059,880.87 29,004,483.78
or profits or settlement of interest expenses
Other cash payments relating to financing
102,144,543.40 12,747,615.67
activities
Sub-total of cash outflows from financing
129,487,134.18 47,502,099.45
activities
Net cash flows from financing activities 11,856,871.21 138,107,859.55
IV. Effect of Foreign Exchange Rate Changes
144,876.98 3,294,539.64
on Cash and Cash Equivalents
V. Net Increase in Cash and Cash
-61,987,832.42 32,858,490.45
Equivalents
Add: Opening balance of cash and cash
805,019,178.89 634,972,775.32
equivalents
VI. Closing Balance of Cash and Cash
743,031,346.47 667,831,265.77
Equivalents
Principal of the Company: Person in Charge of the Person in Charge of the
Accounting Work: Accounting Body:
LI Yi WANG Yingxia WANG Yingxia
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2024 Semiannual Report
Consolidated Statement of Changes in Owners’ Equity
Jan. - Jun. 2024
In RMB
Half year of 2024
Equity attributable to owners of the parent company
Total
Item Paid-in Other equity instruments Other Minority
Less: General owners’
capital Capital comprehe Special Surplus Retained interests
Perpe Treasury risk Others Sub-total equity
(or share Preferred reserve nsive reserve reserve profits
tual Others shares reserve
capital) shares income
bonds
I. Closing
-
balance of 462,211,33 1,616,489,5 19,377,297.5 7,550,073. 84,873,3 667,122,406. 2,818,869,45 2,796,638,17
22,231,278
the prior 8.00 67.43 9 78 65.32 05 2.99
.98
4.01
year
Add:
Changes in
accounting
policies
Correct
ions of prior
period
errors
Others
II. Opening
-
balance of 462,211,33 1,616,489,5 19,377,297.5 7,550,073. 84,873,3 667,122,406. 2,818,869,45 2,796,638,17
22,231,278
the current 8.00 67.43 9 78 65.32 05 2.99
.98
4.01
year
III. Changes
for the
- - - -
period 2,922,290. 38,329,246. 89,540,479.0 1,452,210.
21,174,580.5 68,011,311.7 14,115,804 82,127,116.1
(decrease is 00 82 4 99
2 5 .35 0
indicated by
“-”)
(I) Total -
1,452,210. 10,909,613.4 12,361,824.4 -
comprehensi 13,786,319
99 4 3 1,424,495.50
ve income .93
78 / 204
2024 Semiannual Report
(II) Owners’
contribution - -
2,922,290. 38,329,246. 89,540,479.0 10,296,515
s and 48,288,942.2 37,992,426.6
00 82 4 .58
reduction in 2 4
capital
1. Ordinary
- -
shares 2,922,290. 43,191,060. 89,540,479.0
43,427,128.1 43,427,128.1
contributed 00 89 4
5 5
by owners
2. Capital
contribution
from
holders of
other equity
instruments
3. Share-
based
payment 3,621,509.6 1,141,021.
3,621,509.62 4,762,530.64
recognized 2 02
in owners’
equity
4. Others -
- 9,155,494.
8,483,323.6 672,170.87
8,483,323.69 56
9
(III) Profit - - - -
distribution 32,084,193.9 32,084,193.9 10,626,000 42,710,193.9
6 6 .00 6
1. Transfer
to surplus
reserve
2. Transfer
to general
risk reserve
3.
Distribution
- - - -
s to owners
32,084,193.9 32,084,193.9 10,626,000 42,710,193.9
(or 6 6 .00 6
shareholders
)
4. Others
(IV)
Transfers
79 / 204
2024 Semiannual Report
within
owners’
equity
1.
Capitalizatio
n of capital
reserve
2.
Capitalizatio
n 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
comprehensi
ve income
6. Others
(V) Special
reserve
1. Transfer
to special
reserve in
the period
2. Amount
utilized in
the period
(VI) Others
80 / 204
2024 Semiannual Report
IV. Closing
-
balance of 465,133,62 1,654,818,8 108,917,776. 9,002,284. 84,873,3 645,947,825. 2,750,858,14 2,714,511,05
36,347,083
the current 8.00 14.25 63 77 65.32 53 1.24
.33
7.91
year
Half year of 2023
Equity attributable to owners of the parent company
Other
equity S
instrument p
s ec O Total
Item t Minority
Paid-in capital Pr Pe Less: Other ia General owners’
Surplus Retained h interests
(or share ef rp O Capital reserve Treasury comprehen l risk Sub-total equity
er et t reserve profits e
capital) shares sive income re reserve r
re ua h
se s
d l e
sh bo r rv
ar nd s e
es s
I. Closing
balance of 2,647,663,487. 93,855,136 2,741,518,62
457,107,538.00 1,530,752,116.04 19,377,297.59 5,736,897.41 75,519,782.06 597,924,451.67
the prior 59 .07 3.66
year
Add:
Changes
in
accountin
g policies
Corre
ctions of
prior
period
errors
Other
s
II.
2,647,663,487. 93,855,136 2,741,518,62
Opening 457,107,538.00 1,530,752,116.04 19,377,297.59 5,736,897.41 75,519,782.06 597,924,451.67
59 .07 3.66
balance of
81 / 204
2024 Semiannual Report
the current
year
III.
Changes
for the
-
period 12,930,081.5
20,714,249.08 6,714,283.50 50,279,433.90 77,707,966.48 64,777,884
(decrease .97
1
is
indicated
by “-”)
(I) Total
-
comprehe 44,686,271.7
6,714,283.50 74,914,640.95 81,628,924.45 36,942,652
nsive .69
6
income
(II)
Owners’
-
contributi
20,714,249.08 20,714,249.08 16,795,232 3,919,016.80
ons and .28
reduction
in capital
1.
Ordinary
shares
contribute
d by
owners
2. Capital
contributi
on from
holders of
other
equity
instrument
s
3. Share-
based
payment
3,204,207. 23,646,954.6
recognize 20,442,747.19 20,442,747.19
49 8
d in
owners’
equity
82 / 204
2024 Semiannual Report
4. Others - -
271,501.89 271,501.89 19,999,439 19,727,937.8
.77 8
(III) Profit - -
distributio -24,635,207.05 -24,635,207.05 11,040,000 35,675,207.0
n .00 5
1.
Transfer
to surplus
reserve
2.
Transfer
to general
risk
reserve
3.
Distributi
- -
ons to
-24,635,207.05 -24,635,207.05 11,040,000 35,675,207.0
owners (or .00 5
sharehold
ers)
4. Others
(IV)
Transfers
within
owners’
equity
1.
Capitaliza
tion of
capital
reserve
2.
Capitaliza
tion of
surplus
reserve
3. Loss
offset by
surplus
reserve
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2024 Semiannual Report
4.
Retained
earnings
carried
forward
from
changes in
defined
benefit
plans
5.
Retained
earnings
carried
forward
from other
comprehe
nsive
income
6. Others
(V)
Special
reserve
1.
Transfer
to special
reserve in
the period
2. Amount
utilized in
the period
(VI)
Others
IV.
Closing
12,451,180.9 2,725,371,454. 29,077,251 2,754,448,70
balance of 457,107,538.00 1,551,466,365.12 19,377,297.59 75,519,782.06 648,203,885.57
1 07 .10 5.17
the current
year
Principal of the Company: LI Yi Person in Charge of the Accounting Work: WANG Yingxia Person in Charge of the Accounting Body: WANG Yingxia
84 / 204
2024 Semiannual Report
Statement of Changes in Owners’ Equity of the Parent Company
Jan. - Jun. 2024
In RMB
Half year of 2024
Other equity
instruments
Other
Paid-in capital Pref Per
Item Less: Treasury comprehe Special Surplus Retained Total owners’
(or share erre petu Capital reserve
Oth shares nsive reserve reserve profits equity
capital) d al
ers income
shar bon
es ds
I. Closing balance of
462,211,338.00 1,625,258,496.25 19,377,297.59 83,595,824.59 639,288,806.42 2,790,977,167.67
the prior year
Add: Changes in
accounting policies
Corrections of
prior period errors
Others
II. Opening balance
462,211,338.00 1,625,258,496.25 19,377,297.59 83,595,824.59 639,288,806.42 2,790,977,167.67
of the current year
III. Changes for the
period (decrease is 2,922,290.00 47,311,472.20 89,540,479.04 17,996,754.38 -21,309,962.46
indicated by “-”)
(I) Total
comprehensive 50,080,948.34 50,080,948.34
income
(II) Owners’
contributions and 2,922,290.00 47,311,472.20 89,540,479.04 -39,306,716.84
reduction in capital
1. Ordinary shares
contributed by 2,922,290.00 43,191,060.89 89,540,479.04 -43,427,128.15
owners
2. Capital
contribution from
784,440.30 784,440.30
holders of other
equity instruments
3. Share-based
payment recognized 3,335,971.01 3,335,971.01
in owners’ equity
4. Others
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2024 Semiannual Report
(III) Profit
-32,084,193.96 -32,084,193.96
distribution
1. Transfer to surplus
reserve
2. Distributions to -32,084,193.96 -32,084,193.96
owners (or
shareholders)
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
IV. Closing balance
465,133,628.00 1,672,569,968.45 108,917,776.63 83,595,824.59 657,285,560.80 2,769,667,205.21
of the current year
Half year of 2023
Other equity
Other
Paid-in capital instruments
Item Less: Treasury comprehe Special Surplus Retained Total owners’
(or share Pref Per Capital reserve
Oth shares nsive reserve reserve profits equity
capital) erre petu
ers income
d al
86 / 204
2024 Semiannual Report
shar bon
es ds
I. Closing balance of
457,107,538.00 1,541,789,874.63 19,377,297.59 74,242,241.33 579,741,763.06 2,633,504,119.43
the prior year
Add: Changes in
accounting policies
Corrections of
prior period errors
Others
II. Opening balance
457,107,538.00 1,541,789,874.63 19,377,297.59 74,242,241.33 579,741,763.06 2,633,504,119.43
of the current year
III. Changes for the
period (decrease is 19,436,223.71 27,549,362.14 46,985,585.85
indicated by “-”)
(I) Total
comprehensive 52,184,569.19 52,184,569.19
income
(II) Owners’
contributions and 19,436,223.71 19,436,223.71
reduction in capital
1. Ordinary shares
contributed by
owners
2. Capital
contribution from
holders of other
equity instruments
3. Share-based
payment recognized 19,436,223.71 19,436,223.71
in owners’ equity
4. Others
(III) Profit
-24,635,207.05 -24,635,207.05
distribution
1. Transfer to
surplus reserve
2. Distributions to
owners (or -24,635,207.05 -24,635,207.05
shareholders)
3. Others
87 / 204
2024 Semiannual Report
(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
457,107,538.00 1,561,226,098.34 19,377,297.59 74,242,241.33 607,291,125.20 2,680,489,705.28
of the current year
Principal of the Company: LI Yi Person in Charge of the Accounting Work: WANG Yingxia Person in Charge of the Accounting Body: WANG Yingxia
88 / 204
2024 Semiannual Report
III. Company profile
1. Profile
√ Applicable□ N/A
Appotronics Corporation Limited (hereinafter referred to as “Company” or “the Company”),
formally named as Appotronics Corporation Ltd. (hereinafter referred to as “Appotronics Ltd.”), was
jointly invested and established by LI Yi and XU Yanzheng, registered in Nanshan Branch of Market
Supervision and Regulation Bureau of Shenzhen Municipality on October 24, 2006, and headquartered in
Shenzhen City, Guangdong Province. The Company holds the business license bearing the credit code
91440300795413991N. Its registered capital is RMB 462,211,338.00 divided into 462,211,338 shares
(RMB 1.00 per share), including 462,211,338 unrestricted A shares. 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 complete equipment, and can provide customers with technical research and
development services and customized products. Its products mainly include laser optical engines, laser business
and education projectors, smart mini projectors, laser TVs, laser large venue projectors and laser digital cinema
projectors.
These financial statements have been approved by the 35th meeting of the second Board of Directors on
August 29, 2024 for public disclosure.
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 end of reporting period.
V. Significant accounting policies and accounting estimates
Specific accounting policies and accounting estimates:
√ Applicable□ N/A
The Company establishes the specific accounting policies and makes the specific accounting estimates
with respect to inventories, depreciation of fixed assets, construction in progress, intangible assets,
recognition of revenues and other transactions and events according to the actual production and operation
characteristics of the Company.
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 and domestic subsidiaries adopt RMB as their functional currency, while Appotronics
Hong Kong Limited and other overseas subsidiaries engaging in overseas operation adopt the currency in
their primary economic environments as their functional currencies.
5. Method and basis for determination of materiality
√ Applicable□ N/A
89 / 204
2024 Semiannual Report
Item Materiality standard
The Company considers an individual dividend receivable in an
Dividends receivable with significant
amount exceeding 0.3% of the total assets as a significant
amounts aged more than 1 year
dividend receivable.
The Company considers the construction in progress which
Significant construction in progress incurred the amount exceeding 0.3% of the total assets in the
current period as a significant construction in progress.
The Company considers an individual cash flow from investing
Significant cash flow from investing
activities in an amount exceeding 5% of the total assets as a
activities
significant cash flow from investing activities.
The Company considers a subsidiary whose total assets/total
Significant subsidiaries and non- revenue exceeds 15% of the group’s total assets/total revenue as
wholly-owned subsidiaries a significant subsidiary or significant non-wholly-owned
subsidiary.
The Company considers an associate whose total assets/total
Significant associates revenue exceeds 10% of the group’s total assets/total revenue as
a significant associate.
The Company considers an individual contingency in an amount
Significant contingencies
exceeding 0.3% of the total assets as a significant contingency.
The Company considers an event expected to cause an impact to
Significant events after the balance
the total profit in an amount exceeding 5% of the group’s total
sheet date
profit as a significant event after the balance sheet date.
6. 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 entities under common control
Assets and liabilities acquired from a business combination by the Company are measured at the
book values 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 book value of the owners’ equity
of the acquiree as stated in the consolidated financial statements of the ultimate controller and the book
value 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 not involving entities under common control
Where the cost of combination exceeds the Company’s interest in the fair value of the acquiree’s
identifiable net assets at the date of acquisition, 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.
7. Standard for determination of control and method of preparation of consolidated financial
statements
√ Applicable□ N/A
1. Determination of control
Control is the power of an investor over the investee to obtain variable returns by participating in the
relevant activities of the investee, and to affect the amount of the return by exercising the power over the
investee.
2. Method of preparation of consolidated financial statements
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
90 / 204
2024 Semiannual Report
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.
8. 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.
9. Recognition of cash and cash equivalents
Cash equivalents are the Company’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.
10. Translation of transactions and financial statements denominated in foreign currencies
√ Applicable□ N/A
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; owners’ 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.
11. 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 for the current period.
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
91 / 204
2024 Semiannual Report
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, the accounts receivable that do not contain any significant
financing component or are recognized by the Company without taking into consideration the 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 Standards 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 equity 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 current 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 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
92 / 204
2024 Semiannual Report
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
Upon initial recognition, 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 Standards 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 accordingly where its present obligation (or
part thereof) is 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 transfers nor retains 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 book value of the financial asset transferred at the date of derecognition; and (2) the sum of 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
book value 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 book value 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
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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; and
(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
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.
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
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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 book value 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 book value.
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.
7. Standard for recognizing and making provision of expected credit losses for receivables and
contract assets
(1) Receivables and contract assets for which the provision of expected credit losses is made by
combination of credit risk characteristics
Basis for
Category of combination determining Method for measuring expected credit losses
a group
Bank acceptance bills
receivable
Type of notes
Commercial acceptance bills By reference to historic credit loss experience, and taking
receivable into account the current situations and prediction of future
Accounts economic conditions, calculate the expected credit losses
Accounts receivable - group receivable according to the default risk exposure and rate of lifetime
of receivables from related from related expected credit loss.
parties in the scope of parties in the
consolidation scope of
consolidation
By reference to historic credit loss experience, and taking
into account the current situations and prediction of future
Accounts receivable -
Aging economic conditions, prepare a comparison table of the
grouping by aging
aging of accounts receivable and rate of expected credit loss,
and calculate the expected credit losses.
Contract By reference to historic credit loss experience, and taking
into account the current situations and prediction of future
assets from
economic conditions, calculate the expected credit losses
Contract assets - contract related according to the default risk exposure and rate of lifetime
assets from related parties in expected credit loss.
parties in the
the scope of consolidation
scope of
consolidation
By reference to historic credit loss experience, and taking
Contract assets - grouping by into account the current situations and prediction of future
Aging economic conditions, prepare a comparison table of the
aging
aging of contract assets and rate of lifetime expected credit
loss, and calculate the expected credit losses.
Other receivables - grouping By reference to historic credit loss experience, and taking
Aging into account the current situations and prediction of future
by aging
economic conditions, prepare a comparison table of the
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Basis for
Category of combination determining Method for measuring expected credit losses
a group
aging of other receivables and rate of lifetime expected
credit loss, and calculate the expected credit losses.
By reference to historic credit loss experience, and taking
Long-term receivables - into account the current situations and prediction of future
Aging economic conditions, prepare a comparison table of the
grouping by aging
aging of long-term receivables and rate of lifetime expected
credit loss, and calculate the expected credit losses.
(2) Comparison table of the aging and rate of expected credit loss
Rate of
Rate of expected Rate of expected Rate of expected
expected credit
Aging credit loss for credit loss for long- credit loss for other
loss for accounts
contract assets (%) term receivables (%) receivables (%)
receivable (%)
Within 1 year
(including, the 5.00 5.00 5.00 5.00
same below)
1-2 years 25.00 25.00 25.00 25.00
2-3 years 50.00 50.00 50.00 50.00
Over 3 years 100.00 100.00 100.00 100.00
The age of accounts receivable, contract assets, other receivables, and long-term receivables shall be
calculated from the date of occurrence of such amounts.
(3) Standard for recognizing receivables and contract assets for which the provision of expected credit
losses shall be made individually
The Company makes provision of expected credit losses individually for receivables and contract assets
with obviously different credit risks and combinations of credit risks.
12. Notes receivable
√ Applicable□ N/A
Category of combination and determination basis for which the provision of bad debts is made by
combination of credit risk characteristics
√ Applicable□ N/A
Refer to V.11 of Section X for details.
Age calculation method for identifying combination of credit risk characteristics based on the
account age
√ Applicable□ N/A
Refer to V.11 of Section X for details.
Determination standard for individually making provision for bad debts
√ Applicable□ N/A
Refer to V.11 of Section X for details.
13. Accounts receivable
√ Applicable□ N/A
Category of combination and determination basis for which the provision of bad debts is made by
combination of credit risk characteristics
√ Applicable□ N/A
Refer to V.11 of Section X for details.
Age calculation method for identifying combination of credit risk characteristics based on the
account age
√ Applicable□ N/A
Refer to V.11 of Section X for details.
Determination standard for individually making provision for bad debts
√ Applicable□ N/A
Refer to V.11 of Section X for details.
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14. Receivables financing
√ Applicable□ N/A
Category of combination and determination basis for which the provision of bad debts is made by
combination of credit risk characteristics
√ Applicable□ N/A
Refer to V.11 of Section X for details.
Age calculation method for identifying combination of credit risk characteristics based on the
account age
√ Applicable□ N/A
Refer to V.11 of Section X for details.
Determination standard for individually making provision for bad debts
√ Applicable□ N/A
Refer to V.11 of Section X for details.
15. Other receivables
√ Applicable□ N/A
Category of combination and determination basis for which the provision of bad debts is made by
combination of credit risk characteristics
√ Applicable□ N/A
Refer to V.11 of Section X for details.
Age calculation method for identifying combination of credit risk characteristics based on the
account age
√ Applicable□ N/A
Refer to V.11 of Section X for details.
Determination standard for individually making provision for bad debts
√ Applicable□ N/A
Refer to V.11 of Section X for details.
16. Inventories
√ Applicable□ N/A
Categories of inventories, costing method of inventories transferred out, inventory counting system,
and amortization method for low cost and short-lived consumable items and packaging materials
√ 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. Inventory count system
The perpetual inventory system is maintained for stock system.
4. 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.
Recognition standard and method for provision of impairment for inventory
√ Applicable□ N/A
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, 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
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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.
Category of combination and determination basis for provision for impairment of inventory by
combination, and basis for determining the net realizable value of different types of inventories
□ Applicable√ N/A
Calculation method and determination basis of the net realizable value of each age combination for
which the net realizable value of inventories is determined by age
□ Applicable√ N/A
17. Contract assets
√ Applicable□ N/A
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 own right to unconditionally (that is, only depending on the lapse of 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.
The obligations of the Company for transferring goods to customers corresponding to considerations
that have been received or receivable are presented as contract liabilities.
Category of combination and determination basis for which the provision of bad debts is made by
combination of credit risk characteristics
√ Applicable□ N/A
Refer to V.11 of Section X for details.
Age calculation method for identifying combination of credit risk characteristics based on the
account age
√ Applicable□ N/A
Refer to V.11 of Section X for details.
Determination standard for individually making provision for bad debts
√ Applicable□ N/A
Refer to V.11 of Section X for details.
18. Non-current assets or disposal groups classified as held for sale
□ Applicable√ N/A
Recognition standard and accounting method for non-current assets or disposal groups classified as
held for sale
□ Applicable√ N/A
Determination standard and presentation method for discontinued operation
□ Applicable√ N/A
19. 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 the unanimous consent of the parties
sharing control. Significant influence is the power to participate in the financial and operating policy
decisions of the investee 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-
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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 book value 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; and (ii) the book
value 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 a business combination involving entities 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 book value of the net assets 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 book value of long-term equity investment before the combination
and the book value 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 entities
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
entities 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 book value 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 book value 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
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.
20. Investment property
N/A
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21. 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 ratio
Category depreciation rate
depreciation period (years) (%)
(%)
Machinery and Straight line
5 5.00 19.00
equipment method
Transportation Straight line
5 5.00 19.00
equipment method
Electronic
Straight line
equipment and 3-5 5.00 19.00-31.67
method
others
Operating leased Straight line
3, 7 5.00 31.67, 13.57
equipment method
22. Construction in progress
√ Applicable□ N/A
1. 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
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.
Standards and timing for the transfer of construction in
Category
progress to fixed assets
Machinery, equipment, and When reaching the standard required in the design or specified
operating leased equipment in the contract after installation and commissioning
Houses and buildings When reaching the working condition for its intended use
23. 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 costs are capitalized when all of the following conditions are met: 1) capital
expenditure has been incurred; 2) borrowing costs 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
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suspended. The borrowing costs 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 costs 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 costs
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 interest
expense 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 of 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.
24. Biological assets
□ Applicable√ N/A
25. Oil and gas assets
□ Applicable√ N/A
26. Intangible assets
(1). Service life and determination basis thereof, estimation, amortization method, or verification
process
√ Applicable□ N/A
1. Intangible assets include land use rights, patents rights, and software etc. and are initially measured
at cost.
2. An intangible asset with a finite service life is amortized over its service 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. Specifically including:
Service life and determination basis Amortization
Item
thereof method
Land use rights 30 years/statutory rights Straight-line method
Patent rights 10 years/statutory rights Straight-line method
Software 3-5 years/statutory rights Straight-line method
(2). Collection scope of R&D expenditures and relevant accounting method
√ Applicable□ N/A
1. Collection scope of R&D expenditures
(1) Personnel and labor expenses
The personnel and labor expenses include the salaries, premiums for basic pension insurance,
premiums for basic medical insurance, premiums for unemployment insurance, premiums for employment
injury insurance, premiums for birth insurance, and housing funds of the Company’s R&D staff, and the
labor expenses of external R&D personnel.
Where an R&D person serves multiple R&D projects at the same time, the personnel expenses are
recognized based on the records of working hours of the R&D personnel in respective R&D projects
provided by the management departments of the Company, and are allocated in proportion among the
R&D projects.
Where the R&D employees and external R&D personnel directly engaging in R&D activities also
get involved in non-R&D activities, the Company allocates the personnel expenses actually incurred for
such personnel between the R&D expenses and the production and operation expenses in proportion to
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the actual working hours or by using another reasonable method based on the records of working hours of
such R&D personnel at different posts.
(2) Expenses of direct investments
The expenses of direct investments refer to the relevant expenditures actually incurred by the
Company for conducting R&D activities, including: 1) expenses of materials, fuels, and power directly
consumed; 2) expenses for developing and manufacturing molds and process equipment for intermediate
tests and product trials, expenses for the procurement of samples, sample devices, and general tests not
constituting fixed assets, and inspection expenses for trial products; and 3) the expenses for the
maintenance, adjustment, check, inspection, repair, etc. of the instrument and devices used in R&D
activities.
(3) Depreciation expenses and long-term prepaid expenses
Depreciation expenses refer to the depreciation costs of instruments, equipment, and buildings used
in R&D activities.
Where the instrument, equipment, and buildings used in R&D activities are also used for non-R&D
activities at the same time, necessary records are kept for the use of such instruments, equipment, and
buildings, and the depreciation expenses actually incurred are allocated between the R&D expenses and
the production and operation expenses by using a reasonable method based on the actual working hours
and areas in use.
Long-term prepaid expenses refer to the long-term prepaid expenses incurred during the
reconstruction, modification, decoration, and repair of R&D facility, which shall be collected according
to the expenditures actually incurred, and be amortized on an average basis for the specified period.
(4) Amortization expenses of intangible assets
The amortization expenses of intangible assets refer to the amortization expenses of software,
intellectual property rights, non-patented technologies (know-how, license, design, calculation method,
etc.) used in R&D activities.
(5) Development expenses for outsourced R&D
Development expenses for outsourced R&D refer to the expenses incurred in R&D activities
conducted by other domestic and overseas institutions or individuals engaged by the Company (the results
of such R&D activities being owned by the Company and being closely related to the main business of
the Company).
(6) Other expenses
Other expenses refer to other expenses directly related to R&D activities except for the expenses
above, including expenses for technical books and materials, material translation expenses, expert
consulting fees, insurance premiums for high-tech R&D projects, the expense for the search,
demonstration, evaluation, appraisal and acceptance of R&D results, expenses for the application,
registration, and agency of intellectual property rights, meeting expenses, travel expenses, communication
expenses, etc.
2. Expenditures incurred during the research phase of internal R&D projects are included in profit or
loss for the current period when incurred. Expenditures on an internal research and development project
at the development phase are recognized as an intangible asset if all the following conditions are met: (1)
it is technically feasible to complete the intangible asset so that it will be available for use or sale; (2) it is
intended to complete the intangible asset so that it will be available for use or sale; (3) the pattern in which
the intangible asset will generate economic results can demonstrate the existence of a market for the output
of the intangible asset or the intangible asset itself, or if it is to be used internally, the usefulness of the
intangible asset; (4) there are sufficient technical, financial and other resources available to complete the
development activities and to use or sell the intangible asset; and (5) the expenditures attributable to the
development of the intangible asset can be reliably measured.
27. Impairment of long-term assets
√ Applicable□ N/A
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For long-term equity investments, fixed assets, construction in progress, right-of-use assets,
intangible assets with a finite service 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 service 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.
28. Long-term prepaid expenses
√ Applicable□ N/A
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.
29. Contract liabilities
√ Applicable□ N/A
Refer to V.17 of Section X for details.
30. Employee benefits
(1). Accounting treatment of short-term employee benefits
√ Applicable□ N/A
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 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;
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.
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(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
31. Provisions
√ Applicable□ N/A
1. An obligation arising from any external guarantee, litigation, 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 book value of provisions is reviewed at the balance sheet date.
32. 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,
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 is 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.
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(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 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 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.
33. Preferred shares, perpetual bonds and other financial instruments
□ Applicable√ N/A
34. Revenue
(1). Accounting policies adopted for revenue recognition and measurement by the type of business
√ Applicable□ N/A
1. Principles for revenue recognition
On the commencement date of a contract, the Company evaluates the contract, identifies each
individual performance obligation contained therein and determines 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 irreplaceable
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 control of the related
goods and services. When judging whether the customer has obtained the control of goods, the Company
considers the following 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
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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 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
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.
(2). Different revenue recognition and measurement methods for businesses of the same type but
operated under different modes
√ Applicable□ N/A
(1) Revenue from sales of goods
The performance obligation concerning sales of goods (primarily divided 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’
receipts 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 recognizes 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; Where the Company shares the profit from the
sales of products by downstream end customers, the revenue from such profit sharing is recognized at the
best estimate of the variable consideration determined according to an expected value, which variable
consideration is estimated reasonably at the time of revenue recognition. 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) E-commerce platform revenue
In the e-commerce platform model, the e-commerce platform is responsible for product promotion
and order management. Consumers place orders and pay directly to the e-commerce platform, and the e-
commerce platform arranges third-party logistics through the Company or ships directly to the consumer
by the e-commerce platform after receiving the consumer’s payment. The specific revenue recognition
time points are: for domestic e-commerce platforms, revenue is recognized according to the time of end
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customer receipt; for foreign e-commerce platforms, revenue is recognized after receiving the
confirmation list of the e-commerce platform after checking the reconciliation time agreed in the contract.
(3) 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 patrol inspection services provided
by the Company, the Company determines the service performance progress by using the output approach,
and recognizes the revenue according to the performance progress; 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.
35. Contract costs
□ Applicable√ N/A
36. 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 non-monetary assets are measured at fair value, or if their fair value is unavailable, at a nominal
amount.
2. Determination and accounting treatment of government grants related to assets
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 book value
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 amounts are directly recognized in profit or
loss for the current period. In case of a sale, transfer, retirement or damage of the relevant assets before
the end of the 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 the daily operations of the Company are recognized in other income
or offset against the relevant costs and expenses depending on the nature of the economic business.
Government grants not related to the 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
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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.
37. Deferred tax assets and deferred tax liabilities
√ Applicable□ N/A
1. The difference between the tax base of an asset or liability and its book value (or in case of an item
not recognized as an asset or liability whose tax base can be determined according to the applicable tax
law, the difference between its tax base and book value) 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
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 book value 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: (1) business combination; or (2)
transaction or event directly recognized in owners’ equity.
5. The Company presents deferred tax assets and deferred tax liabilities meeting all of the following
conditions as net amounts after offsetting: (1) the Company has the legal right to settle the current tax
assets and current tax liabilities on a net basis; and (2) the deferred income tax assets and deferred income
tax liabilities are related to the income taxes levied by the same taxation authority on the same taxation
subject, or are not related to the same taxation subject but in every significant future period for reversing
deferred income tax assets and liabilities, the involved taxation subjects intend to settle the total current
income tax asset and liabilities on a net basis or to realize the assets and settle the liabilities simultaneously.
38. Leases
√ Applicable□ N/A
Determination basis and accounting method for simplified accounting of short-term lease and low-
value assets lease as the lessee
√ Applicable□ N/A
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 right-of-use assets and lease liabilities for leases.
(1) Use right assets
Right-of-use 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.
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The Company depreciates right-of-use 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 service 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 service life.
(2) Lease liabilities
On the lease inception date, 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 the 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 substantially 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 the 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 the change, and adjust the book value of the right-of-use assets accordingly. Where
the book value 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.
Categorization standard and accounting method for leases as the lessor
√ Applicable□ N/A
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.
Operating lease
In each period during the lease term, the Company recognizes lease payments as rental incomes by
using the straight-line 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.
39. Other significant accounting policies and accounting estimates
□ Applicable√ N/A
40. 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
(3). The first implementation of new accounting standards or standard interpretations from 2024
onwards that involves adjusting the financial statements at the beginning of the year in which they
were first implemented
□ Applicable√ N/A
41. Others
□ Applicable√ N/A
VI. Taxes
1. Major categories of taxes and tax rates
Description of major categories of taxes and tax rates
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√ Applicable□ N/A
Type of tax Basis Tax rate
VAT payable is the difference of the output tax
calculated based on the income from selling
Value-added tax 3%, 6%, 8%, 9%, 10%,
goods and taxable services in accordance with
(VAT) 13%
the Tax Law, less the input tax allowed to be
reduced in the period
City maintenance
Turnover tax payable 5%, 7%
and construction tax
6.50%, 8.25%, 8.70%,
Enterprise income
Taxable income 8.84%, 15%, 16.5%, 20%,
tax
21%, 23.2%, 25%
Education
Turnover tax payable 3%
surcharges
Local education
Turnover tax payable 2%
surcharges
Disclosure of taxpayers with different rates of enterprise income tax:
√ Applicable□ N/A
Taxpayer Rate of income tax
The Company 15%
Formovie (Chongqing) Innovative Technology
15%
Co., Ltd.
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. 8.84%, 21%
JoveAI Limited Excluding enterprise income tax
Shenzhen Appotronics Display Device Co., Ltd. 20%
Appotronics Technology (Changzhou) Co., Ltd. 20%
Qingda Appotronics (Xiamen) Technology Co.,
20%
Ltd.
Shenzhen Appotronics Home Line Technology
20%
Co., Ltd.
Shenzhen Appotronics Laser Technology Co.,
20%
Ltd.
Shenzhen Appotronics Xiaoming Technology Co.,
20%
Ltd.
JoveAI Asia Company Limited 20%
Formovie Limited 16.5%
Chongqing Ewei Ecommerce Co., Ltd. 20%
Chongqing Guangbo Ecommerce Co., Ltd. 20%
Shenzhen Orange Juice Energy Technology Co.,
20%
Ltd.
Tianjin Bonian Film Partnership (LP) Excluding enterprise income tax
CINEAPPO Laser Cinema Technology (Beijing)
15%
Co., Ltd.
Hongkong Orange Juice Energy Technology Co.,
16.5%
Limited
Wemax Inc. 6.50%, 21%
Shenzhen Weiwoqi Trading Co., Ltd. 20%
Yaoyouguang (Chongqing) Technology Co., Ltd. 20%
Appotronics International Limited 16.5%
Appotronics Intelligent Manufacturing (Shenzhen)
20%
Co., Ltd.
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Shenzhen Qianhai Taishi Investment Partnership
Excluding enterprise income tax
(LP)
Appotronics International 1 Limited 16.5%
Appotronics International 2 Limited 16.5%
Appotronics Hong Kong Holding Limited 16.5%
Appotronics Japan Co., Ltd. 15%, 23.2%
Appotronics Technology (HONG KONG) Limited 16.5%
Shenzhen Muhe Information Technology Co., Ltd. 20%
Shenzhen Xingjin Information Technology Co.,
20%
Ltd.
Other taxpayers except the above 25%
Note:
1. Appotronics Hong Kong Limited, as registered in Hong Kong, one of which 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 16.50% for the remaining taxable income;
2. JoveAI Limited, as registered in the Cayman Islands, is exempt from enterprise income tax;
3. Appotronics USA, Inc., as registered in the United States, applies the federal enterprise income tax
rate of 21% and the California state enterprise income tax rate of 8.84%;
4. JoveAI Innovation, Inc., as registered 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. JoveAI Asia Company Limited, as registered in Vietnam, applies the enterprise income tax rate of
20%;
6. Formovie Limited, as registered in Hong Kong, applies the income tax rate of 16.50%;
7. Hong Kong Orange Juice Energy Technology Co., Limited, as registered in Hong Kong, applies
an income tax rate of 16.50%;
8. Wemax Inc, as registered in the United States, applies the federal enterprise income tax rate of
21%, and the New York state enterprise income tax rate of 6.50%;
9. Appotronics International Limited, as registered in Hong Kong, applies the income tax rate of
16.50%;
10. Appotronics International 1 Limited, as registered in Hong Kong, applies the income tax rate of
16.50%;
11. Appotronics International 2 Limited, as registered in Hong Kong, applies the income tax rate of
16.50%;
12. Appotronics Hong Kong Holding Limited, as registered in Hong Kong, applies the income tax
rate of 16.50%;
13. Appotronics Technology (Hong Kong) Limited, as registered in Hong Kong, applies the income
tax rate of 16.50%;
14. Appotronics Japan Co., Ltd. is registered in Japan. The legal person tax in Japan (i.e., enterprise
income tax) is collected at two rates: 15% and 23.2%. For companies with a registered capital less than or
equal to JPY 100 million, the preferential tax rate of 15% is applicable for profits below JPY 8.00 million.
The tax rate of 23.2% is applicable to other profits.
2. Tax incentives
√ Applicable□ N/A
1. Enterprise income tax
(1) On December 19, 2022, the Company obtained the High-tech Enterprise Certificate (Certificate
No.: GR202244206480) 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 2024.
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(2) On November 28, 2022, Formovie (Chongqing) Innovative Technology Co., Ltd. obtained the
High-tech Enterprise Certificate (Certificate No.: GR202251101763) jointly issued by Chongqing
Municipal Science and Technology Bureau, Chongqing Finance Bureau and Chongqing 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 2024.
(3) On October 18, 2022, CINEAPPO Laser Cinema Technology (Beijing) Co., Ltd. obtained the
High-tech Enterprise Certificate (Certificate No.: GR202211008942) 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 2024.
(4) In accordance with 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 (Cai Shui (2021) No. 12), from January 1, 2021 to December 31, 2022, the
annual taxable income of a small low-profit enterprise that is not more than RMB 1 million shall be levied
with the enterprise income tax rate at a discount of 12.5%, namely, for which the applicable enterprise
income tax rate is 20%. In accordance with 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 (Cai Shui (2023) No. 6), from January 1, 2023 to
December 31, 2024, the annual taxable income of a small low-profit enterprise that is not more than RMB
1 million shall be levied with the enterprise income tax rate at a discount of 25%, 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., Shenzhen Orange Juice Energy Technology Co., Ltd.,
Shenzhen Weiwoqi Trading Co., Ltd., Yaoyouguang (Chongqing) Technology Co., Ltd., Appotronics
Intelligent Manufacturing (Shenzhen) Co., Ltd., Shenzhen Muhe Information Technology Co., Ltd., and
Shenzhen Xingjin Information Technology Co., Ltd.
2. Value-added tax (VAT)
(1) 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, Formovie (Beijing) Technology Co., Ltd., and Shenzhen Appotronics
Software Technology Co., Ltd. are qualified to enjoy such tax incentives.
(2) In accordance with the Announcement of the Ministry of Finance and the State Taxation
Administration on Additional Deductions for Value-added Taxes of Advanced Manufacturing Enterprises
(Announcement No. 43 of 2023 by the Ministry of Finance and the State Taxation Administration),
advanced manufacturing enterprises are allowed to deduct an additional 5% of the deductible input tax
amount from the payable VAT amount. The Company, and Formovie (Chongqing) Innovative Technology
Co., Ltd. are qualified for this tax incentive.
(3) The Vietnamese government issued resolution No. 44/2023/ND-CP, under which the VAT rate
of goods and services at the tax rate of 10% is reduced by 2% (to 8%). JoveAI Asia Company Limited is
qualified for this tax incentive from July 1, 2023 to December 31, 2024.
3. Others
□ Applicable√ N/A
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VII. Notes to items in the consolidated financial statements
1. Monetary funds
√ Applicable□ N/A
In RMB
Item Closing balance Opening balance
Cash on hand 5,769.27 5,751.15
Bank deposits 1,309,440,728.23 1,371,185,024.55
Other monetary funds 25,381,643.98 15,637,773.36
Total 1,334,828,141.48 1,386,828,549.06
Including: Total overseas deposits 138,787,361.68 175,001,829.77
Other information
None
2. Held-for-trading financial assets
√ Applicable□ N/A
In RMB
Opening Determination
Item Closing balance
balance reason and basis
Financial assets at fair value through profit -
503,130,000.00 514,010,000.00
or loss
Including:
Equity instrument investment 30,000,000.00 42,880,000.00 -
Structural deposits 473,130,000.00 471,130,000.00 -
Total 503,130,000.00 514,010,000.00 -
Other information:
□ Applicable√ N/A
3. Derivative financial assets
□ Applicable√ N/A
4. Notes receivable
(1). Categories of notes receivable
√ Applicable□ N/A
In RMB
Item Closing balance Opening balance
Bank acceptances 2,657,820.00 1,478,064.00
Commercial acceptances 1,509,663.04 7,473,244.71
Total 4,167,483.04 8,951,308.71
(2). Notes receivable pledged by the Company at the end of the period
□ Applicable√ N/A
(3). Notes receivable which are undue as of the balance sheet date but endorsed or discounted by the
Company at the end of the period
√ Applicable□ N/A
In RMB
Amount derecognized at the Amount not derecognized at
Item
end of the period the end of the period
Bank acceptances 860,000.00
Commercial acceptances
Total 860,000.00
(4). Disclosure by categories of provision for bad debts
√ Applicable□ N/A
In RMB
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Closing balance Opening balance
Provision for bad Provision for bad
Carrying amount Carrying amount
debts debts
Category Percentage Book Percentage Book
Percentage of value Percentage of value
Amount Amount Amount Amount
(%) provision (%) provision
(%) (%)
Provision
for bad
debts made
individually
Including:
Provision
for bad
4,246,939.00 100.00 79,455.96 1.87 4,167,483.04 9,344,637.39 100.00 393,328.68 4.21 8,951,308.71
debts made
by group
Including:
Bank
acceptance 2,657,820.00 62.58 - 0.00 2,657,820.00 1,478,064.00 15.82 1,478,064.00
bills
Commercial
acceptance 1,589,119.00 37.42 79,455.96 5.00 1,509,663.04 7,866,573.39 84.18 393,328.68 5.00 7,473,244.71
bills
Total 4,246,939.00 100.00 79,455.96 1.87 4,167,483.04 9,344,637.39 100.00 393,328.68 4.21 8,951,308.71
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
In RMB
Closing balance
Name Provision for bad Percentage of
Notes receivable
debts provision (%)
Group of bank
acceptance bills
Group of commercial
1,589,119.00 79,455.96 5.00
acceptance bills
Total 1,589,119.00 79,455.96 5.00
Description of provision for bad debts made by group
□ Applicable√ N/A
Provision for bad debts made in accordance with the general model of ECL
□ Applicable√ N/A
Basis for determination of each stage and percentage of provision for bad debts
Refer to V.11 of Section X for details.
Description of significant changes in the balance of accounts receivable with changed provisions for losses in
the current period:
□ Applicable√ N/A
(5). Provision for bad debts
√ Applicable□ N/A
In RMB
Changes for the current period
Opening Recovery Write-off Other Closing
Category
balance Provision or or changes balance
reversal cancellation
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Provision for bad
debts made
individually
Provision for bad
debts made by 393,328.68 -313,872.72 - - 79,455.96
group
Total 393,328.68 -313,872.72 - - 79,455.96
Including significant amounts recovered or reversed from the current provision for bad debts:
□ Applicable√ N/A
Other information:
None
(6). Notes receivable actually canceled in the current period
□ Applicable√ N/A
Significant write-off of notes receivable:
□ Applicable√ N/A
Description of notes receivable write-off:
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
5. Accounts receivable
(1). Disclosure by aging
√ Applicable□ N/A
In RMB
Closing balance of carrying Opening balance of carrying
Aging
amount amount
Within 1 year
Including: Sub-items within 1 year
Within 1 year 328,728,072.89 174,956,389.44
Sub-total of items within 1
328,728,072.89 174,956,389.44
year
1 to 2 years 9,213,965.10 18,036,240.20
2 to 3 years 7,317,871.66 19,637,948.14
Over 3 years 564,271.86 204,186.09
Total 345,824,181.51 212,834,763.87
(2). Disclosure by categories of provision for bad debts
√ Applicable□ N/A
In RMB
Closing balance Opening balance
Provision for bad
Carrying amount Carrying amount Provision for bad debts
debts
Category Percent Book Book
Perce Perce Percentage
age of value value
Amount ntage Amount Amount ntage Amount of provision
provisio
(%) (%) (%)
n (%)
Provision
for bad
debts 17,568,210.
863,700.00 0.25 863,700.00 100.00 17,568,210.65 8.25 100.00
made 65
individuall
y
Including:
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Provision
for bad
344,960,481. 22,531,252 322,429,2 195,266,553.2 14,976,545. 180,290,00
debts 51
99.75
.67
6.53
28.84 2
91.75
32
7.67
7.90
made by
group
Including:
By group 344,960,481. 22,531,252 322,429,2 195,266,553.2 14,976,545. 180,290,00
99.75 6.53 91.75 7.67
of aging 51 .67 28.84 2 32 7.90
Group of
related
parties in
the scope
of
consolidat
ion
345,824,181. 23,394,952 322,429,2 212,834,763.8 32,544,755. 180,290,00
Total 51
100.00
.67
6.76
28.84 7
100.00
97
15.29
7.90
Provision for bad debts made individually:
√ Applicable□ N/A
In RMB
Closing balance
Name Carrying Provision for Percentage of Reason for
amount bad debts provision (%) provision
Expected to be
unrecoverable
Company A 766,700.00 766,700.00 100.00 because the
customer is in
hardship
Expected to be
unrecoverable
Company B 97,000.00 97,000.00 100.00 because the
customer is in
hardship
Total 863,700.00 863,700.00 100.00 -
Explanation about provision for bad debts made individually:
□ Applicable√ N/A
Provision for bad debts made by group:
√ Applicable□ N/A
Item by group: By group of aging
In RMB
Closing balance
Name Provision for bad Percentage of
Accounts receivable
debts provision (%)
Within 1 year 328,728,072.89 16,436,403.71 5.00
1-2 years 9,213,965.10 2,303,491.27 25.00
2-3 years 6,454,171.66 3,227,085.83 50.00
Over 3 years 564,271.86 564,271.86 100.00
Total 344,960,481.51 22,531,252.67 6.53
Description of provision for bad debts made by group:
□ Applicable√ N/A
Provision for bad debts made in accordance with the general model of ECL
□ Applicable√ N/A
Basis for determination of each stage and percentage of provision for bad debts
Refer to V.11 of Section X for details.
Description of significant changes in the balance of accounts receivable with changed provisions for losses in
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the current period:
□ Applicable√ N/A
(3). Provision for bad debts
√ Applicable□ N/A
In RMB
Changes for the current period
Opening Recovery Closing
Category Write off or Other
balance Provision or balance
cancellation changes
reversal
Provision
for bad
17,568,210.65 -502,844.98 16,201,665.67 863,700.00
debts made
individually
Provision
for bad
14,976,545.32 7,655,186.97 100,479.62 22,531,252.67
debts made
by group
Total 32,544,755.97 7,152,341.99 16,302,145.29 23,394,952.67
Including significant amounts recovered or reversed from the current provision for bad debts:
□ Applicable√ N/A
Other information: None
(4). Accounts receivable actually canceled in the current period
√ Applicable□ N/A
In RMB
Item Cancellation amount
Accounts receivable actually canceled 16,302,145.29
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 and contract assets categorized by debtors
√ Applicable□ N/A
In RMB
Proportion
to the total
closing
Closing Closing balance Closing
Closing balance balance of
balance of of accounts balance of
Entity of accounts accounts
contract receivable and provision for
receivable receivable
assets contract assets bad debts
and
contract
assets (%)
Top 1 155,267,717.51 155,267,717.51 44.61 7,763,385.88
Top 2 40,570,851.87 40,570,851.87 11.66 2,028,542.59
Top 3 19,653,629.05 19,653,629.05 5.65 982,681.46
Top 4 17,575,399.68 17,575,399.68 5.05 878,769.98
Top 5 11,115,907.80 11,115,907.80 3.19 3,310,813.01
Total 244,183,505.91 244,183,505.91 70.16 14,964,192.93
Other information:
None
Other information:
□ Applicable√ N/A
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6. Contract assets
(1). Description of contract assets
√ Applicable□ N/A
In RMB
Closing balance Opening balance
Provision Provision
Item Carrying Carrying
for bad Book value for bad Book value
amount amount
debts debts
Warranty
security 2,247,213.57 416,362.18 1,830,851.39 1,867,058.07 214,817.78 1,652,240.29
receivable
Goods
- - - 25,000.00 12,500.00 12,500.00
payment
Total 2,247,213.57 416,362.18 1,830,851.39 1,892,058.07 227,317.78 1,664,740.29
(2). Amount and reasons for major changes in the book value during the reporting period
□ Applicable√ N/A
(3). Disclosure by categories of provision for bad debts
√ Applicable□ N/A
In RMB
Closing balance Opening balance
Carrying Provision for bad Provision for bad
Carrying amount
amount debts debts
Category Per Book Book
Percentage Percentag
cen
Amo Amou of value Amoun Percent e of value
tag Amount
unt nt provision t age (%) provision
e
(%) (%)
(%)
Provision
for bad
debts
made
individuall
y
Including:
Provision
for bad
2,247, 100. 416,36 1,830,8 1,892,058 227,317.7 1,664,74
debts 213.57 00 2.18
18.53
51.39 .07
100.00
8
12.01
0.29
made by
group
Including:
By group 2,247, 100. 416,36 1,830,8 1,892,058 227,317.7 1,664,74
18.53 100.00 12.01
of aging 213.57 00 2.18 51.39 .07 8 0.29
2,247, 100. 416,36 1,830,8 1,892,058 227,317.7 1,664,74
Total 18.53 100.00 12.01
213.57 00 2.18 51.39 .07 8 0.29
Provision for bad debts made individually:
□ Applicable√ N/A
Explanation about provision for bad debts made individually:
□ Applicable√ N/A
Provision for bad debts made by group:
√ Applicable□ N/A
Item by group: By group of aging
In RMB
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Closing balance
Name Provision for bad Percentage of
Contract assets
debts provision (%)
Within 1 year 1,270,314.69 63,515.74 5.00
1-2 years 542,412.00 135,603.00 25.00
2-3 years 434,486.88 217,243.44 50.00
Total 2,247,213.57 416,362.18 18.53
Description of provision for bad debts made by group
□ Applicable√ N/A
Provision for bad debts made in accordance with the general model of ECL
□ Applicable√ N/A
Basis for determination of each stage and percentage of provision for bad debts
Refer to V.11 of Section X for details.
Description of significant changes in the balance of contract assets with changed provisions for losses in the
current period:
□ Applicable√ N/A
(4). Description of provision for bad debts made on contract assets during the period
√ Applicable□ N/A
In RMB
Recovery or
Write-
Item Provision reversal in the Reason
off/cancellation
period
Provision for bad debts
189,044.40
made by group
Total 189,044.40
Including significant amounts recovered or reversed from the current provision for bad debts:
□ Applicable√ N/A
Other information:
None
(5). Contract assets actually written off in the current period
□ Applicable√ N/A
Write-off of significant contract assets
□ Applicable√ N/A
Description of write-off of contract assets:
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
7. Receivables financing
(1). Receivables financing presented by category
√ Applicable□ N/A
In RMB
Item Closing balance Opening balance
Bank acceptance bills 65,953,036.07 11,387,400.00
Total 65,953,036.07 11,387,400.00
(2). Receivables financing pledged by the Company at the end of the period
□ Applicable√ N/A
(3). Receivables financing which is undue as at the balance sheet date but endorsed or discounted by the
Company at the end of the period
√ Applicable□ N/A
In RMB
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Amount derecognized at the Amount not derecognized at the
Item
end of the period end of the period
Bank acceptance bills 64,994,868.88
Total 64,994,868.88
(4). Disclosure by categories of provision for bad debts
□ Applicable√ N/A
Provision for bad debts made individually:
□ Applicable√ N/A
Explanation about provision for bad debts made individually:
□ Applicable√ N/A
Provision for bad debts made by group:
□ Applicable√ N/A
Provision for bad debts made in accordance with the general model of ECL
□ Applicable√ N/A
Basis for determination of each stage and percentage of provision for bad debts
N/A
Description of significant changes in the balance of receivables financing with changed provisions for
losses in the current period:
□ Applicable√ N/A
(5). Provision for bad debts
□ Applicable√ N/A
Including significant amounts recovered or reversed from the current provision for bad debts:
□ Applicable√ N/A
Other information:
None
(6). Receivables financing actually written off in the current period
□ Applicable√ N/A
In which significant amounts of receivables financing written off are described as below:
□ Applicable√ N/A
Description of write-off:
□ Applicable√ N/A
(7). Changes in amount and fair value of receivables financing:
□ Applicable√ N/A
(8). Other information:
√ Applicable□ N/A
The acceptors of bank acceptance bills in the receivables financing are commercial banks with high
credit. Because it is less probable that bank acceptance bills will not get paid at maturity, the Company
has derecognized endorsed or discounted bank acceptance bills. However, if such notes are unable to be
paid at maturity, the Company will still be jointly and severally liable to the note holders pursuant to the
Negotiable Instruments Law.
8. Prepayments
(1). Disclosure of prepayments by aging
√ Applicable□ N/A
In RMB
Closing balance Opening balance
Aging
Amount Percentage (%) Amount Percentage (%)
Within 1 year 26,352,041.27 75.92 22,863,911.50 65.12
1 to 2 years 6,121,597.02 17.64 5,136,169.79 14.63
2 to 3 years 1,030,904.46 2.97 725,259.48 2.06
Over 3 years 1,204,040.19 3.47 6,387,321.05 18.19
Total 34,708,582.94 100.00 35,112,661.82 100.00
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Reasons for overdue settlement of prepayments with significant amounts aged more than 1 year:
None
(2). Top five closing balances of prepayments categorized by receivers
√ Applicable□ N/A
Proportion to the balance of
Entity Carrying amount
prepayments (%)
Top 1 13,258,171.44 38.20
Top 2 2,263,401.00 6.52
Top 3 2,160,293.74 6.22
Top 4 1,320,966.58 3.81
Top 5 764,795.00 2.20
Sub-total 19,767,627.76 56.95
Other information
□ Applicable√ N/A
9. Other receivables
Presented by item
√ Applicable□ N/A
In RMB
Item Closing balance Opening balance
Interest receivable -
Dividend receivable 14,111,064.00 14,023,746.00
Other receivables 16,468,070.59 16,674,941.55
Total 30,579,134.59 30,698,687.55
Other information:
□ Applicable√ N/A
Interest receivable
(1). Categories of interest receivable
□ Applicable√ N/A
(2). Significant interests overdue
□ Applicable√ N/A
(3). Disclosure by categories of provision for bad debts
□ Applicable√ N/A
Provision for bad debts made individually:
□ Applicable√ N/A
Explanation about provision for bad debts made individually:
□ Applicable√ N/A
Provision for bad debts made by group:
□ Applicable√ N/A
Provision for bad debts made in accordance with the general model of ECL
□ Applicable√ N/A
(4). Provision for bad debts
□ Applicable√ N/A
Including significant amounts recovered or reversed from the current provision for bad debts:
□ Applicable√ N/A
Other information:
None
(5). Interests receivable actually written off in the current period
□ Applicable√ N/A
In which the write-off of significant interests receivable is described as below:
□ Applicable√ N/A
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Description of write-off:
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
Dividends receivable
(1). Dividends receivable
√ Applicable□ N/A
In RMB
Project (or investee) Closing balance Opening balance
Dividend distribution from GDC
14,111,064.00 14,023,746.00
Technology Limited (BVI)
Total 14,111,064.00 14,023,746.00
(2). Dividends receivable with significant amounts aged more than 1 year
√ Applicable□ N/A
In RMB
Whether impairment
Closing Reason for non-
Project (or investee) Aging has occurred and the
balance recovery
basis for its judgment
There are matters
not reached an
agreement It is less probable that the
Dividend distribution
through counterparty has a credit
from GDC Technology 14,111,064.00 2-3 years
negotiation, and risk, and no impairment
Limited (BVI)
the payment has has occurred
not yet been
made
Total 14,111,064.00 - - -
(3). Disclosure by categories of provision for bad debts
□ Applicable√ N/A
Provision for bad debts made individually:
□ Applicable√ N/A
Explanation about provision for bad debts made individually:
□ Applicable√ N/A
Provision for bad debts made by group:
□ Applicable√ N/A
Provision for bad debts made in accordance with the general model of ECL
□ Applicable√ N/A
(4). Provision for bad debts
□ Applicable√ N/A
Including significant amounts recovered or reversed from the current provision for bad debts:
□ Applicable√ N/A
Other information:
None
(5). Dividend receivable actually written off in the current period
□ Applicable√ N/A
In which the write-off of significant dividend receivable is described as below:
□ Applicable√ N/A
Description of write-off:
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
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Other receivables
(1). Disclosure by aging
√ Applicable□ N/A
In RMB
Closing balance of carrying Opening balance of carrying
Aging
amount amount
Within 1 year
Including: Sub-items within 1 year
Within 1 year 9,220,288.61 8,746,169.48
Sub-total of items within 1 year 9,220,288.61 8,746,169.48
1 to 2 years 1,751,724.29 2,540,156.84
2 to 3 years 556,500.67 333,955.74
Over 3 years 5,935,973.48 6,002,199.51
Total 17,464,487.05 17,622,481.57
(2). Categories by the nature of other receivables
√ Applicable□ N/A
In RMB
Closing balance of carrying Opening balance of carrying
Nature of receivables
amount amount
Deposits/margins/petty cash 12,151,928.03 10,696,150.09
Withholding 288,290.22 393,531.80
Temporary receivables 5,024,268.80 6,532,799.68
Compensation receivable
Total 17,464,487.05 17,622,481.57
(3). Provision for bad debts
√ Applicable□ N/A
In RMB
Stage I Stage II Stage III
Lifetime ECL Lifetime ECL
Provision for bad debts 12-month ECL Total
(without credit (with credit
in the future
impairment) impairment)
Balance as at January 1,
839,924.44 107,615.58 947,540.02
2024
Balance as at January 1,
- - -
2024 in the current period
--transferred to Stage II -16,133.91 16,133.91 - -
--transferred to Stage III - - - -
--reversed to Stage II - - - -
--reversed to Stage I - - - -
Provision 617.75 48,258.69 - 48,876.44
Reversal - - - -
Write-off - - - -
Cancellation - - - -
Other changes - - - -
Balance as at June 30,
824,408.27 172,008.19 - 996,416.46
2024
Basis for determination of each stage and percentage of provision for bad debts
The group of deposit and security receivable and other receivables due within one year in the age
group indicate no obvious increase in the credit risk since initial recognition (stage I), 1-2 years in the age
group indicate an obvious increase in the credit risk since initial recognition but no credit impairment
(stage II), and over 2 years in the age group indicate credit impairment since initial recognition (stage III).
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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
(4). Provision for bad debts
√ Applicable□ N/A
In RMB
Changes for the current period
Write off
Opening Recovery or Other Closing
Category
balance Provision or reversal cancellati changes balance
on
Provision for
bad debts
947,540.02 48,876.44 996,416.46
made by
group
Total 947,540.02 48,876.44 996,416.46
Including significant amounts recovered or reversed from the current provision for bad debts:
□ Applicable√ N/A
Other information
None
(5). Other receivables actually canceled in the current period
□ Applicable√ N/A
In which significant amounts written off are described as below:
□ Applicable√ N/A
Description of other receivables cancellation:
□ Applicable√ N/A
(6). Top five closing balances of other receivables categorized by debtors
√ Applicable□ N/A
In RMB
Proportion
to the Provision for
Closing balance of Nature of other bad debts
Entity Aging
balance other receivables Closing
receivables balance
(%)
Deposits/margins/petty Over 3
Top 1 3,574,618.00 20.47 178,730.90
cash years
Deposits/margins/petty Within 1
Top 2 3,140,000.00 17.98 157,000.00
cash year
Deposits/margins/petty Over 3
Top 3 1,310,675.20 7.50 65,533.76
cash years
Deposits/margins/petty Over 3
Top 4 500,000.00 2.86 25,000.00
cash years
Deposits/margins/petty Within 1
Top 5 365,997.50 2.10 18,299.88
cash year
Total 8,891,290.70 50.91 - - 444,564.54
(7). Presentation in other receivables due to centralized fund management
□ Applicable√ N/A
Other information:
124 / 204
2024 Semiannual Report
□ Applicable√ N/A
10. Inventories
(1). Categories of inventories
√ Applicable□ N/A
In RMB
Closing balance Opening balance
Provision for Provision for
decline in value of decline in value of
Item Carrying Carrying
inventories/impair Book value inventories/impair Book value
amount amount
ment of contract ment of contract
performance cost performance cost
Raw 419,576,939 374,050,337 443,084,635 401,546,882
45,526,602.02 41,537,753.59
materials .48 .46 .75 .16
Work in 32,388,570. 31,083,648. 14,472,238. 13,993,318.
1,304,922.36 478,919.67
progress 96 60 10 43
Goods on 274,503,515 222,859,315 260,003,554 213,652,022
51,644,200.03 46,351,531.91
hand .82 .79 .90 .99
Goods
12,618,757. 11,330,336. 19,510,688. 15,964,072.
upon 1,288,421.62 3,546,615.45
70 08 24 79
delivery
Contract
5,848,636.0 4,294,556.8 4,121,745.0 2,567,665.8
performan 1,554,079.22 1,554,079.22
8 6 2 0
ce cost
Materials
180,136.65 180,136.65
in transit
Materials
for
17,954,682. 16,824,669. 8,934,579.8 8,442,700.8
consigned 1,130,012.78 491,879.01
53 75 6 5
processin
g
762,891,102 660,442,864 750,307,578 656,346,799
Total 102,448,238.03 93,960,778.85
.58 .55 .52 .67
(2). Data resources recognized as inventory
□ Applicable√ N/A
(3). Provision for decline in value of inventories and impairment of contract performance cost
√ Applicable□ N/A
In RMB
Increase Decrease
Opening Closing
Item Reversal or Othe
balance Provision Others balance
write-off rs
Raw materials 41,537,753.59 8,977,408.68 565.49 4,989,125.74 45,526,602.02
Work in
478,919.67 1,304,922.36 478,919.67 1,304,922.36
progress
Goods on hand 46,351,531.91 16,854,553.77 17,176.60 11,579,062.25 51,644,200.03
Goods upon
3,546,615.45 -1,119,325.02 3,214.61 1,142,083.42 1,288,421.62
delivery
Contract
performance 1,554,079.22 1,554,079.22
cost
Materials for
consigned 491,879.01 642,612.60 4,478.83 1,130,012.78
processing
Total 93,960,778.85 26,660,172.39 20,956.70 18,193,669.91 102,448,238.03
125 / 204
2024 Semiannual Report
Reason for reversing or writing off the provisions for decline in value of inventories in the current period
√ Applicable□ N/A
Reason for
Reason for writing
reversing the
back the provision
Specific basis for determining the net provision for
Item for impairment of
realizable value impairment of
inventory
inventory
The net realizable value of raw The Company has
For the inventories of
materials is determined as the historical consumed/sold the
which a provision for
average selling price or actual average inventories for
the decline in value
Raw selling price of finished goods in the which a provision
has been made in the
materials ordinary course of business less the for impairment of
prior period, their net
estimated costs of completion, and the inventory has been
realizable values
estimated costs necessary to make the made during the
have increased
sale and relevant taxes. current period
The net realizable value of work in The Company has
progress is determined as the historical consumed the
Materials in
average selling price or actual average inventories for
transit, and
selling price of finished goods in the which a provision
materials for No reversal
ordinary course of business less the for impairment of
consigned
estimated costs of completion, and the inventory has been
processing
estimated costs necessary to make the made during the
sale and relevant taxes. current period
The Company has
For the inventories of
For inventories directly used for sale, used/sold the
which a provision for
the net realizable value is determined as inventories for
the decline in value
Goods on the historical average selling price or which a provision
has been made in
hand actual average selling price less the for impairment of
prior period, their net
estimated costs necessary to make the inventory has been
realizable values
sale and relevant taxes. made during the
have increased
current period
Goods upon For goods delivered, the net realizable The Company has
delivery value is determined as the selling price sold the inventories
or actual average selling price less the for which a
estimated costs necessary to make the provision for
No reversal
sale and relevant taxes. impairment of
inventory has been
made during the
current period
Contract For the contract performance cost, the
performance net realizable value is determined as the
cost actual selling price of goods in the
ordinary course of business less the No reversal Non-resalable
estimated costs of completion, and the
estimated costs necessary to make the
sale and relevant taxes
Provision for impairment of inventory made by group
□ Applicable√ N/A
Standard for making provision for impairment of inventory by group
□ Applicable√ N/A
(4). Description of capitalized amount of borrowing costs included in the closing balance of inventories,
and the standard and basis for the calculation thereof
□ Applicable√ N/A
126 / 204
2024 Semiannual Report
(5). Description of amortization of contract performance cost during the period
√ Applicable□ N/A
Provision for
Opening impairment Closing
Item Increase Amortization
balance made in the balance
current period
Entrusted
2,495,126.88 3,731,919.38 1,932,489.40 4,294,556.86
development
Overseas
72,538.92 72,538.92
freight
Sub-total 2,567,665.80 3,731,919.38 2,005,028.32 - 4,294,556.86
Other information:
□ Applicable√ N/A
11. Held-for-sale assets
□ Applicable√ N/A
12. Non-current assets due within 1 year
√ Applicable□ N/A
In RMB
Item Closing balance Opening balance
Debt investments due within 1 year
Other debt investments due within
1 year
Long-term receivables due within
50,522,240.47 41,997,218.73
1 year
Total 50,522,240.47 41,997,218.73
Debt investments due within 1 year
□ Applicable√ N/A
Other debt investments due within 1 year
□ Applicable√ N/A
Other description of non-current assets due within 1 year
None
13. Other current assets
√ Applicable□ N/A
In RMB
Item Closing balance Opening balance
Contract acquisition cost
Cost of returned goods receivable 357,888.82 1,611,745.50
Input VAT to be deducted 48,344,259.08 46,217,482.57
Prepaid enterprise income tax 753,231.42 588,042.04
Total 49,455,379.32 48,417,270.11
Other information:
None
14. Debt investments
(1). Description of debt investments
□ Applicable√ N/A
Changes in the provision for impairment of debt investments in the current period
□ Applicable√ N/A
127 / 204
2024 Semiannual Report
(2). Debt investments with significant amounts at the end of the period
□ Applicable√ N/A
(3). Description of provision for impairment
□ Applicable√ N/A
Basis for determination of each stage and percentage of provision for impairment:
N/A
Description of significant changes in the balance of debt investments with changed provisions for losses
in the current period:
□ Applicable√ N/A
Basis for recognizing the amount of provision for impairment and evaluating whether the credit risk of
financial instruments has been increased significantly in the current period:
□ Applicable√ N/A
(4). Debt investments actually written off in the current period
□ Applicable√ N/A
In which the write-off of significant debt investments is described as below
□ Applicable√ N/A
Description of write-off of debt investments:
□ Applicable√ N/A
Other information:
None
15. Other debt investments
(1). Description of other debt investments
□ Applicable√ N/A
Changes in the provision for impairment of other debt investments in the current period
□ 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
(4). Other debt investments actually written off in the current period
□ Applicable√ N/A
In which the write-off of significant other debt investments is described as below
□ Applicable√ N/A
Description of write-off of other debt investments:
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
16. Long-term receivables
(1). Description of long-term receivables
√ Applicable□ N/A
In RMB
Closing balance Opening balance Range
Provision Provision of
Item Carrying Carrying
for bad Book value for bad Book value discou
amount amount
debts debts nt rate
Installment 4.30%-
25,690,266.46 2,971,279.26 22,718,987.20 29,121,844.28 2,410,050.74 26,711,793.54
collection 4.65%
Including:
Financing
-616,482.26 -616,482.26 -711,250.41 -711,250.41
income not
realized
Total 25,073,784.20 2,971,279.26 22,102,504.94 28,410,593.87 2,410,050.74 26,000,543.13
128 / 204
2024 Semiannual Report
(2). Disclosure by categories of provision for bad debts
√ Applicable□ N/A
In RMB
Closing balance Opening balance
Carrying Provision for bad Carrying Provision for bad
amount debts amount debts
Category Book
Book value
Percen value
Perc Percentage
tage of
Am enta Amo Percent Amo of
Amount provisi
ount ge unt age (%) unt provision
on
(%) (%)
(%)
Provision for
bad debts
made
individually
Including:
Provision for
25,07 28,410
bad debts 100.0 2,971,279. 22,102, 2,410,
3,784 11.85 ,593.8 100.00 8.48 26,000,543.13
made by .20
0 26 504.94
7
050.74
group
Including:
Group of 25,07
100.0 2,971,279. 22,102,
28,410
2,410,
aging 3,784 11.85 ,593.8 100.00 8.48 26,000,543.13
0 26 504.94 050.74
.20 7
25,07 28,410
100.0 2,971,279. 22,102, 2,410,
Total 3,784
0 26
11.85
504.94
,593.8 100.00
050.74
8.48 26,000,543.13
.20 7
Provision for bad debts made individually:
□ Applicable√ N/A
Explanation about provision for bad debts made individually:
□ Applicable√ N/A
Provision for bad debts made by group:
√ Applicable□ N/A
Item by group: Group of aging
In RMB
Closing balance
Name Provision for bad Percentage of
Long-term receivables
debts provision (%)
Group of aging 25,073,784.20 2,971,279.26 11.85
Total 25,073,784.20 2,971,279.26 11.85
Description of provision for bad debts made by group
□ Applicable√ N/A
Provision for bad debts made in accordance with the general model of ECL
□ Applicable√ N/A
(3). Provision for bad debts
√ Applicable□ N/A
In RMB
Changes for the current period
Categor Opening
Recov Writ Closing balance
y balance Provision Other changes
ery or e-off
129 / 204
2024 Semiannual Report
revers or
al cance
llatio
n
Provisio
n for bad
debts 2,410,050.74 3,556,553.22 2,995,324.70 2,971,279.26
made by
group
Total 2,410,050.74 3,556,553.22 2,995,324.70 2,971,279.26
Including significant amounts recovered or reversed from the current provision for bad debts:
□ Applicable√ N/A
Other information:
“Other changes” indicate the provision for impairment corresponding to the long-term receivables
reclassified to be due within one year.
(4). Long-term receivables actually written off in the current period
□ Applicable√ N/A
In which the write-off of significant long-term receivables is described as below:
□ Applicable√ N/A
Description of write-off of long-term receivables:
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
17. Long-term equity investments
(1). Information about long-term equity investments
√ Applicable□ N/A
In RMB
Changes for the current period
Adjust
Investm ment Closing
Declar Prov
Addit ent in Other balance of
Openin Decre ed ision
ional profit or other equit Closing provision
Investee g ased cash for Oth
inves loss compr y balance for
balance invest divide impa ers
tmen under ehensi chang impairmen
ment nds or irme
t equity ve es t
profits nt
method incom
e
I. Joint
venture
Sub-total
II.
Associates
GDC -
Technology - - 133,
138,890,6
3,921,378. 1,520,87 448, 0
Limited 14.32
98 2.10 363.
(BVI) 24
Shenzhen
-
Zhongjian 5,836,162 784,44 6,183,769
436,832.4
Technology .11
2
0.30 .99
Co., Ltd.
-
- - 133,
144,726,7 784,44 6,183,769
Sub-total 76.43
4,358,211. 1,520,87
0.30
448,
.99
40 2.10 363.
24
130 / 204
2024 Semiannual Report
-
- - 133,
144,726,7 784,44 6,183,769
Total 76.43
4,358,211. 1,520,87
0.30
448,
.99
40 2.10 363.
24
Note: “Others” indicates the amount generated from foreign exchange translation.
Based on the dispute under arbitration, during the reporting period, the Company had specific evidence
to prove that it could not exercise significant influence on the participating company GDC BVI, and
therefore changed the accounting method in accordance with the Accounting Standard for Business
Enterprises to designate GDC BVI as financial assets at fair value through profit or loss, and adjusted it
from long-term equity investment to other non-current financial assets.
(2). Impairment test of long-term equity investments
□ Applicable√ N/A
None
The net value of the recoverable amount determining by subtracting disposal expenses from the
fair value
□ Applicable√ N/A
The recoverable amount is determined according to the present value of the estimated future cash
flows
□ Applicable√ N/A
Reason for the obvious difference between the information above and the information used in the
impairment test in previous years or external information
□ Applicable√ N/A
Reason for the obvious difference between the information used by the Company in the impairment
test in previous years and the actual conditions of the corresponding year
□ Applicable√ N/A
Other information
None
131 / 204
2024 Semiannual Report
18. Other equity instrument investments
(1). Description of other equity instrument investments
√ Applicable□ N/A
In RMB
Changes for the current period Reasons for
Dividend designating
Gains Losses
s income Total gains Total losses as financial
recognized recognized
Addition Decrease recogniz recognized recognized assets at fair
Opening in other in other Closing
Item al d Othe ed for in other in other value
balance comprehensi comprehensi balance
investme investme rs the comprehensi comprehensi through
ve income in ve income in
nt nt current ve income ve income other
the current the current
period comprehensi
period period
ve income
Shen Zhen
Subject to the
Timewayi
7,075,419. 7,075,419. management’
ng
38 38 s intention of
Technolog
holding
y Co., Ltd.
Shenzhen Subject to the
Bevix management’
0.00 0.00
Technolog s intention of
y Co., Ltd. holding
7,075,419. 7,075,419.
Total /
38 38
(2). Description of derecognition in the current period
□ Applicable√ N/A
Other information:
√ Applicable□ N/A
The Company’s equity investments in Shen Zhen Timewaying Technology Co., Ltd., and Shenzhen Bevix Technology Co., Ltd. are mainly for promoting future
business cooperation rather than making transactions, hence they are designated as investments in equity instruments at fair value through other comprehensive income.
The cost of Shenzhen Bevix Technology Co., Ltd. is RMB 4,900,000.00, and the fair value change is -RMB 4,900,000.00.
132 / 204
2024 Semiannual Report
19. Other non-current financial assets
√ Applicable□ N/A
In RMB
Item Closing balance Opening balance
GDC Technology Limited (BVI) 99,443,720.92 0
Total 99,443,720.92 0
Other information:
Based on the dispute under arbitration, during the reporting period, the Company had specific evidence to
prove that it could not exercise significant influence on the participating company GDC BVI, and therefore
changed the accounting method in accordance with the Accounting Standard for Business Enterprises to
designate GDC BVI as financial assets at fair value through profit or loss, and adjusted it from long-term
equity investment to other non-current financial assets.
20. Investment property
Measurement mode of investment properties
N/A
(1). Impairment test of investment properties measured at costs
□ Applicable√ N/A
Other information
□ Applicable√ N/A
The net value of the recoverable amount determining by subtracting disposal expenses from the fair
value
□ Applicable√ N/A
The recoverable amount is determined according to the present value of the estimated future cash flows
□ Applicable√ N/A
Reason for the obvious difference between the information above and the information used in the
impairment test in previous years or external information
□ Applicable√ N/A
Reason for the obvious difference between the information used by the Company in the impairment test
in previous years and the actual conditions of the corresponding year
□ Applicable√ N/A
Other information
□ Applicable√ N/A
21. Fixed assets
Presented by item
√ Applicable□ N/A
In RMB
Item Closing balance Opening balance
Fixed assets 308,123,259.75 336,276,793.84
Disposal of fixed assets
Total 308,123,259.75 336,276,793.84
Other information:
N/A
Fixed assets
(1). Description of fixed assets
√ Applicable□ N/A
In RMB
Electronic
Machinery and Transportation Operating leased
Item equipment and Total
equipment equipment equipment
others
I. Original book
value:
133 / 204
2024 Semiannual Report
1. Opening
173,037,618.56 2,227,745.42 64,110,956.44 665,210,386.30 904,586,706.72
balance
2. Increase 20,513,195.94 839,623.66 13,246,982.13 7,798,919.01 42,398,720.74
(1)
20,482,288.72 832,106.19 13,265,297.58 34,579,692.49
Purchase
(2)
Transfer from
7,798,919.01 7,798,919.01
construction in
progress
(3)
Increase from
business
combination
(4)
Exchange rate 30,907.22 7,517.47 -18,315.45 20,109.24
changes
3. Decrease 5,491,494.05 1,898,666.17 16,662,301.15 24,052,461.37
(1)
Disposal or 5,491,494.05 1,898,666.17 1,464,702.32 8,854,862.54
retirement
(2)
Transfer to 15,197,598.83 15,197,598.83
inventories
(3)
Transfer to
construction in
progress
4. Closing
188,059,320.45 3,067,369.08 75,459,272.40 656,347,004.16 922,932,966.09
balance
II. Accumulated
depreciation
1. Opening
97,159,897.17 855,965.15 38,239,794.57 425,973,312.89 562,228,969.78
balance
2. Increase 13,636,959.59 235,868.70 5,058,451.55 42,392,392.06 61,323,671.90
(1)
13,614,452.18 235,512.43 5,057,005.96 42,392,392.06 61,299,362.63
Provision
(2)
Purchase
(3)
Exchange rate 22,507.41 356.27 1,445.59 24,309.27
changes
3. Decrease 2,348,053.24 1,588,247.03 11,735,626.91 15,671,927.18
(1)
Disposal or 2,348,053.24 1,588,247.03 1,390,506.28 5,326,806.55
retirement
(2)
Transfer to 10,345,120.63 10,345,120.63
inventories
4. Closing
108,448,803.52 1,091,833.85 41,709,999.09 456,630,078.04 607,880,714.50
balance
III. Provision for
impairment
1. Opening
1,935,931.82 4,145,011.28 6,080,943.10
balance
2. Increase 1,021,252.37 1,021,252.37
134 / 204
2024 Semiannual Report
(1)
1,021,252.37 1,021,252.37
Provision
3. Decrease 173,203.63 173,203.63
(1)
Disposal or 173,203.63 173,203.63
retirement
4. Closing
1,935,931.82 4,993,060.02 6,928,991.84
balance
IV. Book value
1. Closing
77,674,585.11 1,975,535.23 33,749,273.31 194,723,866.10 308,123,259.75
book value
2. Opening
73,941,789.57 1,371,780.27 25,871,161.87 235,092,062.13 336,276,793.84
book value
(2). Temporarily idle fixed assets
√ Applicable□ N/A
In RMB
Original book Accumulated Provision for
Item Book value Remark
value depreciation impairment
Operating
leased 53,173,798.35 38,678,517.22 4,058,493.39 10,436,787.73
equipment
(3). Fixed assets leased out under operating lease
√ Applicable□ N/A
In RMB
Item Closing balance of book value
Operating leased equipment 184,287,078.37
Sub-total 184,287,078.37
(4). Fixed assets of which certificates of title have not been obtained
□ Applicable√ N/A
(5). Impairment test of fixed assets
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
The net value of the recoverable amount determining by subtracting disposal expenses from the fair
value
□ Applicable√ N/A
The recoverable amount is determined according to the present value of the estimated future cash
flows
□ Applicable√ N/A
Reason for the obvious difference between the information above and the information used in the
impairment test in previous years or external information
□ Applicable√ N/A
Reason for the obvious difference between the information used by the Company in the impairment
test in previous years and the actual conditions of the corresponding year
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
Disposal of fixed assets
□ Applicable√ N/A
135 / 204
2024 Semiannual Report
22. Construction in progress
Presented by item
√ Applicable□ N/A
In RMB
Item Closing balance Opening balance
Construction in progress 372,111,349.09 347,777,138.86
Materials for construction
Total 372,111,349.09 347,777,138.86
Other information:
None
Construction in progress
(1). Description of construction in progress
√ Applicable□ N/A
In RMB
Closing balance Opening balance
Provision Provision
Item Carrying for Carrying for
Book value Book value
amount impairmen amount impairmen
t t
Headquarte 369,194,706.1 369,194,706.1 344,481,907.5 344,481,907.5
r buildings 1 1 5 5
Light
sources to 2,916,642.98 2,916,642.98 3,295,231.31 3,295,231.31
be leased
372,111,349.0 372,111,349.0 347,777,138.8 347,777,138.8
Total
9 9 6 6
(2). Changes in significant constructions in progress for the current period
√ Applicable□ N/A
In RMB
Amount Including
Amount
Amount injected as : Interest
of
transferr Other a Constru Capitaliz capitalizati
Budget Opening Incre Closing accumula Source of
Item ed to decre proportion ction ed on rate for
amount balance ase balance ted funds
fixed ases of budget progress interest the period
capitalize
assets amount for the (%)
d interest
(%) period
Headquar Self-
534,635, 344,481,90 24,712, 369,194, 2,417,641.
ter 200.00 7.55 798.56 706.11
75.27 75.27
56
1.59 owned
buildings capital
Light
Self-
sources 3,295,231. 7,420,3 7,798,919 2,916,64
owned
to be 31 30.68 .01 2.98
capital
leased
534,635, 347,777,13 32,133, 7,798,919 372,111,
Total 200.00 8.86 129.24 .01 349.09
- - - -
(3). Provision for impairment losses for construction in progress in the current period
□ Applicable√ N/A
(4). Impairment test of construction in progress
□ Applicable√ N/A
Other information
□ Applicable√ N/A
136 / 204
2024 Semiannual Report
The net value of the recoverable amount determining by subtracting disposal expenses from the fair
value
□ Applicable√ N/A
The recoverable amount is determined according to the present value of the estimated future cash
flows
□ Applicable√ N/A
Reason for the obvious difference between the information above and the information used in the
impairment test in previous years or external information
□ Applicable√ N/A
Reason for the obvious difference between the information used by the Company in the impairment
test in previous years and the actual conditions of the corresponding year
□ Applicable√ N/A
Other information
□ Applicable√ N/A
Materials for construction
□ Applicable√ N/A
23. Productive biological assets
(1). Productive biological assets measured at cost
□ Applicable√ N/A
(2). Impairment test of productive biological assets measured at cost
□ Applicable√ N/A
(3). Productive biological assets measured at fair value
□ Applicable√ N/A
Other information
□ Applicable√ N/A
24. Oil and gas assets
(1). Information about oil and gas assets
□ Applicable√ N/A
(2). Impairment test of oil and gas assets
□ Applicable√ N/A
None
The net value of the recoverable amount determining by subtracting disposal expenses from the fair
value
□ Applicable√ N/A
The recoverable amount is determined according to the present value of the estimated future cash flows
□ Applicable√ N/A
Reason for the obvious difference between the information above and the information used in the
impairment test in previous years or external information
□ Applicable√ N/A
Reason for the obvious difference between the information used by the Company in the impairment test
in previous years and the actual conditions of the corresponding year
□ Applicable√ N/A
Other information:
None
25. Right-of-use asset
(1). Information about right-of-use assets
√ Applicable□ N/A
In RMB
Item Houses and buildings Total
I. Original book value
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2024 Semiannual Report
1. Opening balance 85,664,854.60 85,664,854.60
2. Increase 6,305,476.26 6,305,476.26
1) Lease in 6,287,383.76 6,287,383.76
2) Other changes 18,092.50 18,092.50
3. Decrease 9,535,418.11 9,535,418.11
1) Disposal 9,535,418.11 9,535,418.11
4. Closing balance 82,434,912.75 82,434,912.75
II. Accumulated depreciation
1. Opening balance 45,647,950.93 45,647,950.93
2. Increase 14,138,541.81 14,138,541.81
1) Provision 14,137,642.55 14,137,642.55
2) Other changes 899.26 899.26
3. Decrease 6,378,364.05 6,378,364.05
(1) Disposal 6,378,364.05 6,378,364.05
4. Closing balance 53,408,128.69 53,408,128.69
III. Provision for impairment
1. Opening balance
2. Increase
(1) Provision
3. Decrease
(1) Disposal
4. Closing balance
IV. Book value
1. Closing book value 29,026,784.06 29,026,784.06
2. Opening book value 40,016,903.67 40,016,903.67
(2). Impairment test of right-of-use assets
□ Applicable√ N/A
Other information:
None
The net value of the recoverable amount determining by subtracting disposal expenses from the fair
value
□ Applicable√ N/A
The recoverable amount is determined according to the present value of the estimated future cash flows
□ Applicable√ N/A
Reason for the obvious difference between the information above and the information used in the
impairment test in previous years or external information
□ Applicable√ N/A
Reason for the obvious difference between the information used by the Company in the impairment test
in previous years and the actual conditions of the corresponding year
□ Applicable√ N/A
Other information:
None
26. Intangible assets
(1). Description of intangible assets
√ Applicable□ N/A
In RMB
Item Land use rights Patents Software Total
138 / 204
2024 Semiannual Report
I. Original book value
1. Opening
330,630,000.00 20,059,950.00 27,192,435.04 377,882,385.04
balance
2. Increase 1,889,330.87 1,889,330.87
(1) Purchase 1,885,497.90 1,885,497.90
(2) Internal
R&D
(3) Increase
from business
combination
(4) Exchange
3,832.97 3,832.97
rate changes
3. Decrease 891,089.12 891,089.12
(1) Disposal or
891,089.12 891,089.12
retirement
4. Closing balance 330,630,000.00 20,059,950.00 28,190,676.79 378,880,626.79
II. Accumulated
amortization
1. Opening
60,615,500.22 16,390,600.14 15,245,888.60 92,251,988.96
balance
2. Increase 5,510,500.02 2,258,010.54 7,768,510.56
(1) Provision 5,510,500.02 2,258,010.54 7,768,510.56
(2) Exchange
rate changes
3. Decrease 297,029.68 297,029.68
(1) Disposal 297,029.68 297,029.68
4. Closing
66,126,000.24 16,390,600.14 17,206,869.46 99,723,469.84
balance
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
3,669,349.86 3,669,349.86
balance
IV. Book value
1. Closing book
264,503,999.76 10,983,807.33 275,487,807.09
value
2. Opening book
270,014,499.78 11,946,546.44 281,961,046.22
value
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). Data resources recognized as intangible assets
□ Applicable√ N/A
(3). Land use rights of which certificates of title have not been obtained
□ Applicable√ N/A
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(1). Impairment test of intangible assets
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
The net value of the recoverable amount determining by subtracting disposal expenses from the fair
value
□ Applicable√ N/A
The recoverable amount is determined according to the present value of the estimated future cash flows
□ Applicable√ N/A
Reason for the obvious difference between the information above and the information used in the
impairment test in previous years or external information
□ Applicable√ N/A
Reason for the obvious difference between the information used by the Company in the impairment test
in previous years and the actual conditions of the corresponding year
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
27. Goodwill
(1). Original book value of goodwill
□ Applicable√ N/A
(2). Impairment provision of goodwill
□ Applicable√ N/A
(3). Relevant information on groups of assets or combinations of groups of assets where the goodwill
is recognized
□ Applicable√ N/A
Changes in groups of assets or combinations of groups of assets
□ Applicable√ N/A
Other information
□ Applicable√ N/A
(4). Specific method for determining the recoverable amount
The recoverable amount is determined as the fair value net of disposal expenses
□ Applicable√ N/A
The recoverable amount is determined according to the present value of the estimated future cash flows
□ Applicable√ N/A
Reason for the obvious difference between the information above and the information used in the
impairment test in previous years or external information
□ Applicable√ N/A
Reason for the obvious difference between the information used by the Company in the impairment test
in previous years and the actual conditions of the corresponding year
□ Applicable√ N/A
(5). Performance covenant and impairment of the corresponding goodwill
There is a performance covenant and the reporting period or the prior period is within the period of the
performance covenant when the goodwill is generated
□ Applicable√ N/A
Other information
□ Applicable√ N/A
28. Long-term prepaid expenses
√ Applicable□ N/A
In RMB
Opening Other Closing
Item Increase Amortization
balance decreases balance
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Decoration
6,296,126.87 697,548.87 3,112,311.63 3,881,364.11
construction
RTO gas for
the screen 22,018.46 22,018.46
project
Total 6,318,145.33 697,548.87 3,134,330.09 3,881,364.11
Other information:
None
29. Deferred tax assets and deferred tax liabilities
(1). Deferred tax assets that are not offset
√ Applicable□ N/A
In RMB
Closing balance Opening balance
Item Deductible Deductible
Deferred tax Deferred tax
temporary temporary
assets assets
differences differences
Provision for impairment
96,345,264.75 14,463,438.06 74,115,172.24 11,117,383.83
of assets
Unrealized profits for
175,058,220.53 26,211,159.26 210,685,301.87 31,602,795.28
insider transactions
Deductible losses 222,129,019.57 44,784,854.23 239,029,918.69 35,854,487.80
Provisions 39,871,894.24 5,980,784.13 34,841,473.16 5,226,220.97
Other current liabilities 4,991,932.34 748,789.85
Share-based payment
13,098,344.27 1,997,850.64 61,226,650.97 9,183,997.65
expenses
Deferred income 1,836,760.80 275,514.12 2,718,881.63 407,832.24
Lease liabilities 23,175,810.55 3,579,219.80 34,994,645.59 5,283,800.22
Held-for-trading
990,000.00 148,500.00
financial assets
Total 571,515,314.71 97,292,820.24 663,593,976.49 99,573,807.84
(2). Deferred tax liabilities that are not offset
√ Applicable□ N/A
In RMB
Closing balance Opening balance
Item Taxable Taxable
Deferred tax Deferred tax
temporary temporary
liabilities liabilities
differences differences
Long-term receivables 77,454,128.29 11,618,119.24 69,036,668.06 10,355,500.21
Right-of-use assets 23,044,255.26 3,548,882.57 33,667,244.64 5,083,230.25
Change in the fair value
of held-for-trading 130,000.00 19,500.00
financial assets
Total 100,628,383.55 15,186,501.81 102,703,912.70 15,438,730.46
(3). Deferred tax assets and deferred tax liabilities that are presented at the net amount after offset
√ Applicable□ N/A
In RMB
Closing Opening
Closing set-off Opening set-off
balance of balance of
Item amounts of amount of
deferred tax deferred tax
deferred tax deferred tax
assets or assets or
141 / 204
2024 Semiannual Report
assets and liabilities after assets and liabilities after
liabilities set-off liabilities set-off
Deferred tax assets 13,412,546.67 83,880,273.57 14,209,075.65 85,364,732.19
Deferred tax liabilities 13,412,546.67 1,773,955.14 14,209,075.65 1,229,654.81
(4). Details of unrecognized deferred tax assets
√ Applicable□ N/A
In RMB
Item Closing balance Opening balance
Deductible losses 762,189,521.38 628,624,774.28
Provision for impairment of assets 53,245,482.60 72,217,063.30
Unrealized profits for insider
11,273,470.20 17,628,227.02
transactions
Provisions 22,480,698.79 23,992,739.66
Deferred income 1,363,636.39 1,909,090.93
Share-based payment expenses 2,163,603.74 5,716,287.31
Leases 188,614.47 776,044.91
Profit distribution from partnership
22,937.98
enterprises
Changes in fair value of investments
4,900,000.00 4,900,000.00
in other equity instruments
Total 857,805,027.57 755,787,165.39
(5). Deductible losses, for which no deferred tax assets are recognized, will expire in the following years
√ Applicable□ N/A
In RMB
Year Closing balance Opening balance Remark
2024 3,720,201.10 3,721,926.96
2025 4,647,581.11 4,647,581.11
2026 1,066,778.95 585,694.63
2027 6,714,260.92 7,264,969.19
2028 16,654,314.95 14,859,636.58
2029 10,816,991.73
2031 86,704,079.12 86,704,079.12
2032 173,940,470.57 174,220,126.74
2033 195,668,349.41 168,693,830.07
2034 71,184,252.21
No expiry date 191,072,241.31 167,926,929.88
Total 762,189,521.38 628,624,774.28 -
Other information:
□ Applicable√ N/A
30. Other non-current assets
√ Applicable□ N/A
In RMB
Closing balance Opening balance
Provision Provision
Item Carrying Carrying
for Book value for Book value
amount amount
impairment impairment
142 / 204
2024 Semiannual Report
Prepayment
for the
purchase of 18,308,105.15 18,308,105.15 29,348,748.27 29,348,748.27
long-term
assets
Total 18,308,105.15 18,308,105.15 29,348,748.27 29,348,748.27
Other information:
None
31. Items of restricted assets
√ Applicable□ N/A
In RMB
Closing Opening
Type of
Item Carrying Type of Restrictio Carrying Restrictio
Book value Book value restrictio
amount restriction n amount n
n
Undue
Undue time
time Time
Time deposits
deposits deposits
deposits and and
and and
interests, interests,
interests, interests,
Monetary security account
100,412,876.66 100,412,876.66 account 88,979,653.31 88,979,653.31 security
funds deposit, security
security deposit,
funds in deposits,
deposits, funds in
restricted and
and restricted
accounts restricted
restricted accounts
payments
payments
Intangible Mortgage Mortgage
330,630,000.00 264,503,999.76 Mortgage 330,630,000.00 270,014,499.78 Mortgage
assets collateral collateral
Refer to
Monetary Refer to the
112,745,931.53 112,745,931.53 the note
funds note below
below
Refer to
Accounts Refer to the
18,366,576.06 17,291,094.19 the note
receivable note below
below
Refer to
Other Refer to the
14,610,056.60 14,367,063.15 the note
receivables note below
below
Refer to
Other current Refer to the
753,231.42 753,231.42 the note
assets note below
below
Other non-
Refer to
current Refer to the
99,443,720.92 99,443,720.92 the note
financial note below
below
assets
Refer to
Refer to the
Fixed assets 6,481,012.00 2,243,955.29 the note
note below
below
Refer to
Right-of-use Refer to the
1,256,326.63 1,116,734.85 the note
assets note below
below
Total 684,699,731.82 612,878,607.77 419,609,653.31 358,994,153.09
Note:
1. Since GDC BVI requested the U.S. arbitration tribunal to intervene in the implementation of the equity
transaction plan released by the Company in April 2024, considering that this arbitration case was under
trial and to respect for the arbitration trial, Appotronics HK constrained itself at the end of the period and
suspended the efforts for promoting conditions for the equity transaction. For the sake of prudence, the
143 / 204
2024 Semiannual Report
Company recorded all the assets of Appotronics HK as restricted assets. The parties are in negotiation
with each other at present, and the specific result of the negotiation will be announced separately.
2. This arbitration case is still under trial at present. The self-constraint on the assets above does not
indicate the arbitration result of this case, while the final arbitration result is subject to the decision of the
arbitration tribunal.
Other information:
None
32. Short-term borrowings
(1). Categories of short-term borrowings
√ Applicable□ N/A
In RMB
Item Closing balance Opening balance
Pledge borrowings 50,000,000.00 50,000,000.00
Guaranteed loans 30,000,000.00
Interest payable 32,500.00 36,500.00
Total 50,032,500.00 80,036,500.00
Description of categories of short-term borrowings:
None
(2). Short-term borrowings overdue but not yet repaid
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
33. Held-for-trading financial liabilities
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
34. Derivative financial liabilities
□ Applicable√ N/A
35. Notes payable
√ Applicable□ N/A
In RMB
Category Closing balance Opening balance
Commercial acceptance
bills
Bank acceptance bills 105,114,863.34 76,001,079.07
Total 105,114,863.34 76,001,079.07
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
In RMB
Item Closing balance Opening balance
Amounts payable for 403,638,748.50 247,318,466.10
purchase
Total 403,638,748.50 247,318,466.10
(2). Accounts payable with significant amounts aged more than 1 year or overdue
□ Applicable√ N/A
Other information:
√ Applicable□ N/A
Top five closing balances of accounts payable categorized by suppliers
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2024 Semiannual Report
Proportion to the balance of
Entity Carrying amount
payables (%)
Top 1 33,499,983.90 8.30
Top 2 29,699,212.57 7.36
Top 3 25,405,684.75 6.29
Top 4 23,459,430.10 5.81
Top 5 17,527,483.96 4.34
Sub-total 129,591,795.28 32.11
37. Receipts in advance
(1). Presented by receipts in advance
√ Applicable□ N/A
In RMB
Item Closing balance Opening balance
Advance payments of recharge
101,638,526.13 110,573,711.24
fees
Total 101,638,526.13 110,573,711.24
(2). Receipts in advance with significant amounts aged more than 1 year
□ Applicable√ N/A
(3). Amount and reasons for major changes in the book value during the reporting period
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
38. Contract liabilities
(1). Description of contract liabilities
√ Applicable□ N/A
In RMB
Item Closing balance Opening balance
Goods payment 43,087,407.22 45,416,445.99
Total 43,087,407.22 45,416,445.99
(2). Contract liabilities with significant amounts aged more than 1 year
□ Applicable√ N/A
(3). Amount and reasons for major changes in the book value during the reporting period
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
39. Employee benefits payable
(1). Presented by employee benefits payable
√ Applicable□ N/A
In RMB
Opening Closing
Item Increase Decrease
balance balance
I. Short-term benefits 60,944,415.44 182,133,546.01 211,896,324.85 31,181,636.60
II. Post-employment benefits-
235,754.95 7,956,402.06 7,964,921.19 227,235.82
defined contribution plan
III. Dismissal benefits 5,694,064.08 1,978,711.22 7,672,775.30
IV. Other benefits due within
1 year
Total 66,874,234.47 192,068,659.29 227,534,021.34 31,408,872.42
145 / 204
2024 Semiannual Report
(2). Presented by short-term employee benefits
√ Applicable□ N/A
In RMB
Opening Closing
Item Increase Decrease
balance balance
I. Wages or salaries,
bonuses, allowances and 60,435,649.25 162,724,378.94 192,456,183.94 30,703,844.25
subsidies
II. Staff welfare 276,355.00 3,396,517.11 3,474,660.34 198,211.77
III. Social security
151,646.45 5,606,904.26 5,613,250.27 145,300.44
contributions
Including: Medical
143,966.79 5,125,273.00 5,131,310.83 137,928.96
insurance
Work injury
7,662.68 250,195.90 250,504.08 7,354.50
insurance
Maternity insurance 16.98 231,435.36 231,435.36 16.98
IV. Housing funds 21,519.00 9,829,189.20 9,831,900.20 18,808.00
V. Union running costs and
59,245.74 576,556.50 520,330.10 115,472.14
employee education costs
VI. Short-term paid leaves
VII. Short-term profit
sharing plan
Total 60,944,415.44 182,133,546.01 211,896,324.85 31,181,636.60
(3). Presented by defined contribution plan
√ Applicable□ N/A
In RMB
Opening Closing
Item Increase Decrease
balance balance
1. Basic pensions 228,085.12 7,635,064.59 7,643,325.55 219,824.16
2. Unemployment
7,669.83 321,337.47 321,595.64 7,411.66
insurance
3. Enterprise annuity
contribution
Total 235,754.95 7,956,402.06 7,964,921.19 227,235.82
Other information:
□ Applicable√ N/A
40. Taxes payable
√ Applicable□ N/A
In RMB
Item Closing balance Opening balance
Value-added tax (VAT) 1,450,683.95 359,180.74
Enterprise income tax 6,178,554.09 1,334,766.59
Individual income tax 1,430,010.73 3,528,285.07
City maintenance and
385,108.07 293,453.55
construction tax
Education surcharges 167,711.49 129,503.34
Local education surcharges 111,807.65 83,464.21
Stamp duty 429,618.26 399,474.92
Annual franchise right tax 14,519.54
Urban land use tax 8,914.32 56.27
Total 10,162,408.56 6,142,704.23
Other information:
None
146 / 204
2024 Semiannual Report
41. Other payables
Presented by item
√ Applicable□ N/A
In RMB
Item Closing balance Opening balance
Interest payable
Dividend payable 32,084,193.96
Other payables 58,271,094.03 54,142,509.17
Total 90,355,287.99 54,142,509.17
Interest payable
□ Applicable√ N/A
Dividends payable
√ Applicable□ N/A
In RMB
Item Closing balance Opening balance
Dividends on ordinary shares 32,084,193.96
Total 32,084,193.96
Other description, including significant dividend payable with aging of over 1 year, and the reason for
non-payment shall be disclosed:
None
Other payables
(1). Other payables presented by nature
√ Applicable□ N/A
In RMB
Item Closing balance Opening balance
Withholding 518,765.68 519,802.15
Deposits/margins 11,511,206.44 14,940,040.78
Withdrawals in advance 44,476,193.44 35,291,543.85
Temporary receipts payable 1,764,928.47 3,391,122.39
Total 58,271,094.03 54,142,509.17
(2). Other payables with significant amounts aged more than 1 year or overdue
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
42. Liabilities held for sale
□ Applicable√ N/A
43. Non-current liabilities due within 1 year
√ Applicable□ N/A
In RMB
Item Closing balance Opening balance
Long-term borrowings due
307,239,564.91 241,906,668.40
within 1 year
Bonds payable due within one
year
Long-term payables due
within 1 year
Lease liabilities due within 1
17,534,937.28 26,571,363.83
year
147 / 204
2024 Semiannual Report
Interest payable 50,192.50 270,119.44
Total 324,824,694.69 268,748,151.67
Other information:
None
44. Other current liabilities
√ Applicable□ N/A
In RMB
Item Closing balance Opening balance
Rebates payable 12,437,221.80 14,406,021.16
Taxes to be written off 2,683,187.12 4,035,664.67
Endorsement of notes
860,000.00
receivable not derecognized
Total 15,980,408.92 18,441,685.83
Changes in short-term bonds payable:
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
45. Long-term borrowings
(1). Categories of long-term borrowings
√ Applicable□ N/A
In RMB
Item Closing balance Opening balance
Guaranteed loans and loans against
134,360,312.56 136,305,570.04
collateral
Guaranteed loans 70,053,867.78 136,980,000.00
Credit loans 117,000,000.00 97,000,000.00
Interest payable 238,579.75 364,061.18
Total 321,652,760.09 370,649,631.22
Description for categories of long-term borrowings:
None
Other information
□ Applicable√ N/A
46. Bonds payable
(1). Bonds payable
□ Applicable√ N/A
(2). Specific information about bonds payable: (excluding other financial instruments such as
preference shares, perpetual bonds and others classified as financial liabilities)
□ Applicable√ N/A
(3). Description of convertible corporate bonds
□ Applicable√ N/A
Accounting treatment and determination basis of conversion rights
□ Applicable√ N/A
(4). Description of other financial instruments classified as financial liabilities
Basic information on 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
148 / 204
2024 Semiannual Report
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
47. Lease liabilities
√ Applicable□ N/A
In RMB
Item Closing balance Opening balance
Unpaid lease payments 12,668,162.33 16,514,060.82
Less: Financing charges not
677,295.46 965,075.11
recognized
Total 11,990,866.87 15,548,985.71
Other information:
None
48. Long-term payables
Presented by item
□ Applicable√ N/A
Long-term payables
□ Applicable√ N/A
Special payables
□ Applicable√ N/A
49. Long-term employee benefits payable
□ Applicable√ N/A
(1). Long-term employee benefits payable
□ Applicable√ N/A
(2). Changes in defined benefit plan
Present value of the obligations under the defined benefit plan:
□ Applicable√ N/A
Assets under the plan:
□ Applicable√ N/A
Net liabilities (net assets) under the defined benefit plan
□ Applicable√ N/A
Description of the impact of the content of the defined benefit plan and associated risks on the future
cash flow, time, and uncertainty of the Company:
□ Applicable√ N/A
Description of major actuarial assumptions and sensitivity analysis result for the defined benefit plan
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
50. Provisions
√ Applicable□ N/A
In RMB
Item Opening balance Closing balance Reason
Pending litigation 5,154,659.93 3,939,065.02
Product quality Expenses for “three
50,530,730.18 49,686,637.61
warranty guarantees” services
Amounts payable for
2,495,594.97 672,843.14
goods returned
Total 58,180,985.08 54,298,545.77
Other description, including significant assumptions and estimates relative to material provisions:
None
149 / 204
2024 Semiannual Report
51. Deferred income
Description of deferred income
√ Applicable□ N/A
In RMB
Opening Closing
Item Increase Decrease Reason
balance balance
Government grants The relevant asset is
3,749,594.97 1,078,195.8 2,671,399.17
related to assets within its service life
Used for compensation of
Government grants relevant costs, expenses,
878,377.59 333,700.00 683,079.57 528,998.02
related to income or losses in subsequent
periods
Total 4,627,972.56 333,700.00 1,761,275.37 3,200,397.19 -
Other information:
□ Applicable√ N/A
52. Other non-current liabilities
□ Applicable√ N/A
53. Share capital
√ Applicable□ N/A
In RMB
Changes (+, -)
Opening Capitalizati
Issuance of Closing balance
balance Bonus on of
new shares Others Sub-total
shares capital
reserve
Total
462,211,338.00 2,922,290.00 2,922,290.00 465,133,628.00
shares
Other information:
(1) On January 29, 2024, the Company received the additional investment of RMB 7,327,467.64 in total
paid by 10 qualified grantees of share incentives under the 2021 Second Restricted Share Incentive Plan
and 2022 First Restricted Share Incentive Plan, including RMB 394,040.00 recognized as share capital,
RMB 6,933,427.64 recognized as capital premium (share premium), and RMB 2,395,251.2 transferred
from capital reserve - other capital reserve to capital premium (share premium). Pan-China Certified
Public Accountants LLP audited this capital increase and issued a Capital Verification Report (Tian Jian
Yan (2024) No. 7-4).
(2) On June 14, 2024, the Company received the additional investment of RMB 38,785,883.25 in total
paid by 62 qualified grantees of share incentives under the 2022 First Restricted Share Incentive Plan,
including RMB 2,528,250.00 recognized as share capital, RMB 36,257,633.25 recognized as capital
premium (share premium), and RMB 6,977,970.00 transferred from capital reserve - other capital reserve
to capital premium (share premium). Pan-China Certified Public Accountants LLP audited this capital
increase and issued a Capital Verification Report (Tian Jian Yan (2024) No. 7-13).
54. Other equity instruments
(1). Basic information on other financial instruments including outstanding preferred shares and
perpetual bonds at the end of the period
□ Applicable√ N/A
(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 information:
□ Applicable√ N/A
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55. Capital reserve
√ Applicable□ N/A
In RMB
Item Opening balance Increase Decrease Closing balance
Capital premium (Share
1,468,447,805.00 52,564,282.09 1,521,012,087.09
premium)
Other capital reserve 148,041,762.43 -4,861,814.07 9,373,221.20 133,806,727.16
Total 1,616,489,567.43 47,702,468.02 9,373,221.20 1,654,818,814.25
Other description, including changes in the current period and reasons for changes:
(1) Refer to VII.53 of Section X for the increase in the capital reserve - share premium in the current
period.
(2) Refer to VII.53 of Section X for the decrease in the capital reserve - other capital reserve in the current
period.
(3) The total expense of equity-settled share-based payments amounted to RMB 8,095,798.69, in which
RMB 6,723,490.18 was recognized in the capital reserve (other capital reserve) and RMB 1,372,308.51
was charged to the amount attributable to minority interests.
(4) 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 3,333,268.04, the decrease in the capital reserve
(other capital reserve) by RMB 3,101,980.56, and the decrease in the minority interests by RMB
231,287.49.
(5) The capital reserve (other capital reserve) was adjusted by RMB -8,483,323.69 due to the acquisition
of minority interests, increasing the investment in participating companies, and conversion of convertible
bonds of subsidiaries into shares.
56. Treasury shares
√ Applicable□ N/A
In RMB
Item Opening balance Increase Decrease Closing balance
Treasury shares 19,377,297.59 89,540,479.04 108,917,776.63
Total 19,377,297.59 89,540,479.04 108,917,776.63
Other description, including changes in the current period and reasons for changes:
None
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57. Other comprehensive income
√ Applicable□ N/A
In RMB
Amount for the current period
Less: Amount
Less: Amount
previously
previously
included in
included in Attributable
other Less: Attributable
Opening other to owners of Closing
Item Amount incurred for the comprehensive Income to minority
balance comprehensive the parent balance
current period before tax income and tax shareholders
income and company
transferred to expense after tax
transferred to after tax
retained
profit or loss
earnings for
for the period
the period
I. Other
comprehensive
income that cannot
-4,900,000.00 -4,900,000.00
be reclassified
subsequently to
profit or loss
Including: Changes
from remeasurement
of defined benefit
plans
Other
comprehensive
income that cannot
be reclassified to
profit or loss under
the equity method
Changes in fair
value of investments
-4,900,000.00 -4,900,000.00
in other equity
instruments
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Changes in fair
value of enterprises’
own credit risks
II. Other
comprehensive
income that will be 12,450,073.78 -1,282,521.47 -2,787,954.28 1,452,210.99 53,221.84 13,902,284.77
reclassified to profit
or loss
Including: Other
comprehensive
-
income that will be
16,306,810.51 0.00 -16,306,810.51 16,306,810.51 0.00
reclassified to profit
or loss under the
equity method
Changes in fair
value of other debt
investments
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 28,756,884.29 -
-1,282,521.47 13,518,856.23 53,221.84 13,902,284.77
financial statements 14,854,599.52
denominated in
foreign currencies
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Total other
comprehensive 7,550,073.78 -1,282,521.47 -2,787,954.28 1,452,210.99 53,221.84 9,002,284.77
income
Other description, including adjustments on transferring the effective portion of cash flow hedges to amount upon initial recognition of the hedged item:
None
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58. Special reserve
□ Applicable√ N/A
59. Surplus reserve
√ Applicable□ N/A
In RMB
Item Opening balance Increase Decrease Closing balance
Statutory surplus
84,873,365.32 84,873,365.32
reserve
Discretionary
surplus reserves
Reserve fund
Enterprise
development fund
Surplus reserve
recovered through
business
combination
involving entities
under common
control
Total 84,873,365.32 84,873,365.32
Surplus reserve description, including changes in the current period and reasons for changes:
None
60. Retained profits
√ Applicable□ N/A
In RMB
Item Current period Prior year
Retained profits at the end of the prior
667,122,406.05 597,924,451.67
period before adjustment
Total adjusted undistributed profits at the
beginning of the period (Add: +; Less: -)
Retained profits at the beginning of the
667,122,406.05 597,924,451.67
period after adjustment
Add: Net profit attributable to owners of
10,909,613.44 103,186,743.57
the parent company for the period
Less: Appropriation to statutory surplus
9,353,583.26
reserve
Appropriation to discretionary
surplus reserve
Appropriation to general risk reserve
Declaration of dividends on ordinary
32,084,193.96
shares
Conversion of ordinary shares’
dividends into share capital
Distributed dividend 24,635,205.93
Retained profits at the end of the period 645,947,825.53 667,122,406.05
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. Retained profits at the beginning of the period were affected by RMB 0.00 due to changes in accounting
policies.
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3. Retained profits at the beginning of the period were affected by RMB 0.00 due to the correction of
significant accounting errors.
4. Retained profits at the beginning of the period were affected by RMB 0.00 due to changes in the scope
of consolidation resulting from business combinations involving entities under common control.
5. Retained 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
In RMB
During the reporting period Prior period
Item
Revenue Cost Revenue Cost
Main business 1,081,409,500.21 745,633,299.59 1,073,249,037.75 668,659,467.49
Other business
Total 1,081,409,500.21 745,633,299.59 1,073,249,037.75 668,659,467.49
(2). Breakdown of operating income and operating cost
□ Applicable√ N/A
Other information
√ Applicable□ N/A
Breakdown of revenue from contracts with customers by category:
In RMB
During the reporting period
Item Operating income Operating costs
Main business areas:
Domestic 809,130,906.68 617,372,137.92
Overseas 110,168,311.16 58,466,951.37
Sub-total 919,299,217.84 675,839,089.29
Main product type:
Core device business 433,840,052.95 312,732,607.05
Complete projector equipment 414,535,359.11 305,861,480.63
Others 70,923,805.78 57,245,001.61
Sub-total 919,299,217.84 675,839,089.29
Revenue recognition time:
Goods (transferred at a time
916,302,479.76 674,243,395.72
point)
Services (provided during a
2,996,738.08 1,595,693.57
specific period of time)
Sub-total 919,299,217.84 675,839,089.29
(3). Description of performance obligations
□ Applicable√ N/A
(4). Description of allocation to remaining performance obligations
□ Applicable√ N/A
(5). Material contract changes or material adjustments in transaction prices
□ Applicable√ N/A
Other information:
None
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62. Taxes and surcharges
√ Applicable□ N/A
In RMB
Item During the reporting period Prior period
City maintenance and
1,702,370.48 1,849,757.98
construction tax
Education surcharges 740,255.99 810,475.02
Stamp duty 497,715.63 718,782.33
Local education surcharges 766,086.74 540,316.68
Others 33,169.56 86,419.52
Total 3,739,598.40 4,005,751.53
Other information:
None
63. Selling expenses
√ Applicable□ N/A
In RMB
During the reporting
Item Prior period
period
Marketing fees 19,608,143.75 67,103,262.08
Employee benefits 36,545,525.82 44,813,421.97
After-sale repair expenses 8,097,912.56 8,783,249.44
Travel expenses 3,747,269.03 3,323,826.10
Advertising and business promotion
1,194,151.94 2,606,865.49
expenses
Business entertainment expenses 1,290,538.87 891,056.45
Service fees 15,109,595.41 6,384,443.11
Other expenses 13,729,763.88 9,493,535.38
Total 99,322,901.25 143,399,660.02
Other information:
None
64. Administrative expenses
√ Applicable□ N/A
In RMB
Item During the reporting Prior period
period
Employee benefits 34,071,951.83 34,743,913.52
Share-based payment expenses 8,095,829.69 25,008,586.26
Service fees 25,451,519.08 13,261,395.13
Depreciation and amortization expenses 6,284,108.94 6,559,184.36
Rent expense 1,909,486.09 2,699,984.57
Other expenses 6,429,642.17 4,423,159.98
Total 82,242,537.80 86,696,223.82
Other information:
None
65. R&D expenses
√ Applicable□ N/A
In RMB
Item During the reporting Prior period
period
Employee benefits 77,178,286.66 86,643,213.03
Material consumption expenses 9,883,197.10 11,968,242.66
Rent expense 2,194,206.38 2,027,319.05
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Service fees 2,959,461.32 6,014,448.00
Depreciation and amortization expenses 8,922,669.56 7,408,217.43
Testing expenses 3,484,793.48 2,233,677.17
Patent fees 3,277,677.31 1,909,173.76
Other expenses 3,718,495.39 8,201,851.02
Total 111,618,787.20 126,406,142.12
Other information:
None
66. Financial expenses
√ Applicable□ N/A
In RMB
Item During the reporting Prior period
period
Interest expenses 9,734,387.30 7,061,642.05
Less: Interest income -16,592,276.88 -15,604,073.30
Exchange profit or loss 503,613.81 -9,807,901.42
Bank service charges 395,880.48 1,328,926.10
Total -5,958,395.29 -17,021,406.56
Other information:
None
67. Other income
√ Applicable□ N/A
In RMB
Classified by nature During the reporting Prior period
period
Government grants related to assets 1,078,195.80 1,078,195.80
Government grants related to income 6,281,595.04 17,036,319.77
Refund of transaction fees for withholding
566,343.98 442,061.07
individual income taxes
Additional deduction of input VAT 4,596,330.89 620,900.93
Refunds for software of value-added taxes 2,406,946.80 4,431,505.74
Total 14,929,412.51 23,608,983.31
Other information:
Government grants recognized in other income in the current period are disclosed in XI of Section X in
detail.
68. Investment income
√ Applicable□ N/A
In RMB
During the reporting
Item Prior period
period
Long-term equity investment accounted for using
-4,358,211.40 -8,071,814.75
the equity method
Investment income from the disposal of long-term
-37,353,061.61
equity investments
Investment income from held-for-trading financial
assets during the holding period
Dividend income from other equity instrument
investments during the holding period
Interest income from debt investments during the
holding period
Interest income from other debt investments during
the holding period
Investment income from disposal of held-for-trading
16,264,140.92 5,265,708.55
financial assets
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Investment income from disposal of other equity
instrument investments
Investment income from the disposal of debt
investments
Investment income from the disposal of other debt
investments
Profits from debt restructuring
Others -359,837.45
Total -25,806,969.54 -2,806,106.20
Other information:
None
69. Income from net exposure hedges
□ Applicable√ N/A
70. Gains from changes in fair values
√ Applicable□ N/A
In RMB
Source of gains from changes in
During the reporting period Prior period
fair values
Held-for-trading financial assets 10,062,500.00
Including: Gains from changes in
fair values generated by derivative
financial instruments
Held-for-trading financial liabilities
Investment property measured at
fair value
Total 10,062,500.00
Other information:
None
71. Gains on disposal of assets
√ Applicable□ N/A
In RMB
Item During the reporting period Prior period
Gains from disposal of fixed assets -49,364.10 18,395.62
Gains from disposal of right-of-use
39,468.76 -3,133.47
assets
Total -9,895.34 15,262.15
Other information:
□ Applicable√ N/A
72. Losses of credit impairment
√ Applicable□ N/A
In RMB
During the reporting
Item Prior period
period
Impairment losses of notes receivable 313,872.72 -61,544.10
Impairment losses of accounts
-7,145,762.28 -2,667,868.31
receivable
Impairment losses of other receivables -49,362.84 -60,565.45
Impairment losses of debt investments
Impairment losses of other debt
investments
Impairment losses of long-term
-3,556,553.22 -723,105.21
receivables
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Impairment losses related to financial
guarantees
Total -10,437,805.62 -3,513,083.07
Other information:
None
73. Impairment losses of assets
√ Applicable□ N/A
In RMB
During the reporting
Item Prior period
period
I. Impairment losses of contract assets -189,044.40 -90,452.65
II. Losses of decline in value of inventories and
-26,651,240.39 -27,089,793.54
losses of contract performance cost
III. Impairment losses of long-term equity
investments
IV. Impairment losses of investment properties
V. Impairment losses of fixed assets -1,021,252.37 -1,833,685.55
VI. Impairment losses of construction materials
VII. Impairment losses of construction in
progress
VIII. Impairment losses of productive biological
assets
IX. Impairment losses of oil and gas assets
X. Impairment losses of intangible assets
XI. Goodwill impairment losses
XII. Others
Total -27,861,537.16 -29,013,931.74
Other information:
None
74. Non-operating income
√ Applicable□ N/A
In RMB
During the Amount included in
Item reporting Prior period non-recurring profit
period or loss for the period
Total gains from disposal of
11,482.30
non-current assets
Including: Gains from the
11,482.30
disposal of fixed assets
Gains from disposal of
intangible assets
Gains from debt restructuring
Gains from the exchange of
non-monetary assets
Donation receipts
Government grants 30,000.00 9,000,000.00 30,000.00
Amounts not required for 14,610.48 14,610.48
233,306.16
payment
Others 1,133,368.38 179,559.37 1,133,368.38
Total 1,177,978.86 9,424,347.83 1,177,978.86
Other information:
□ Applicable√ N/A
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75. Non-operating expenses
√ Applicable□ N/A
In RMB
Amount included in
During the
Item Prior period non-recurring profit
reporting period
or loss for the period
Total losses from disposal of 533,012.62
533,012.62 242,877.32
non-current assets
Including: Losses from 432,667.15
432,667.15 242,877.32
disposal of fixed assets
Losses from disposal
of intangible assets
Losses from debt
restructuring
Losses from the exchange of
non-monetary assets
External donations
Penalties and overdue fines 16,581.33 27,463.52 16,581.33
Others 27,938.47 370,921.08 27,938.47
Total 577,532.42 641,261.92 577,532.42
Other information:
None
76. Income tax expense
(1). Statement of income tax expense
√ Applicable□ N/A
In RMB
Item During the reporting period Prior period
Income tax expense in the current
10,521,359.94 8,337,698.37
period
Deferred income tax expenses -1,304,509.08 10,312,245.27
Total 9,216,850.86 18,649,943.64
(2). Reconciliation of income tax expenses to the accounting profit
√ Applicable□ N/A
In RMB
Item During the reporting period
Total profit 6,286,922.55
Income tax expense calculated based on
943,038.36
statutory/applicable tax rate
Effect of different tax rates of subsidiaries
-514,726.20
operating in other jurisdictions
Effect of income tax for the period before
1,868,596.99
adjustment
Effect of non-taxable income 2,348,336.58
Effect of non-deductible cost, expense and loss 927,905.43
Effect of utilizing deductible loss not recognized
-2,145,717.81
for deferred tax assets for prior period
Effect of deductible temporary difference or
deductible loss not recognized for deferred tax 25,212,443.56
assets for the current period
Change in the balance of opening deferred tax
-12,748,634.41
assets caused by tax rate adjustment
Effect of additional deduction of R&D expenses -11,374,555.60
Others 4,700,163.96
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Income tax expenses 9,216,850.86
Other information:
□ Applicable√ N/A
77. Other comprehensive income
√ Applicable□ N/A
Refer to VII. 57 of Section X for details.
78. Items in the cash flow statement
(1). Cash related to operating activities
Other cash receipts relating to operating activities
√ Applicable□ N/A
In RMB
Item During the reporting period Prior period
Interest income 13,656,180.65 15,203,804.27
Government grants 8,363,175.91 31,156,389.47
Recovery of security deposits 1,256,029.04 38,485,289.61
Non-operating income 75,533.40 167,768.72
Other transaction accounts 3,594,370.81 5,824,075.57
Total 26,945,289.81 90,837,327.64
Description of other cash receipts relating to operating activities:
None
Other cash payments relating to operating activities
√ Applicable□ N/A
In RMB
Item During the reporting period Prior period
Administrative expenses, selling
expenses, and R&D expenses paid in 101,451,691.27 133,812,521.03
cash
Non-operating expenses 14,897.31 369,426.97
Payment of security deposits 31,586,113.28 14,513,684.21
Service charges 496,338.84 777,510.79
Addition of restricted monetary funds 112,745,931.53
Other transaction accounts 5,342,298.48 3,961,686.89
Total 251,637,270.71 153,434,829.89
Description of other cash payments relating to operating activities:
None
(2). Cash related to investing activities
Cash receipts related to significant investing activities
√ Applicable□ N/A
In RMB
Item During the reporting period Prior period
Redemption of wealth management
766,000,000.00 765,000,000.00
products
Sales of held-for-trading financial
14,000,000.00
assets
Total 780,000,000.00 765,000,000.00
Description of cash receipts related to significant investing activities:
None
Cash payments related to significant investing activities
√ Applicable□ N/A
In RMB
Item During the reporting period Prior period
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Investment and wealth management
768,000,000.00 976,816,480.00
products
Acquisition of minority interests 1.00
Total 768,000,001.00 976,816,480.00
Description of cash payments related to significant investing activities:
None
Other cash receipts relating to investing activities
√ Applicable□ N/A
In RMB
Item During the reporting period Prior period
Refund of down payment for equity
1,362,168.77
investment
Total 1,362,168.77
Description of other cash receipts related to investing activities:
None
Other cash payments relating to operating activities
√ Applicable□ N/A
In RMB
Item During the reporting period Prior period
Down payment for equity investment 1,364,715.49
Total 1,364,715.49
Description of other cash payments relating to investing activities:
None
(3). Cash related to financing activities
Other cash receipts relating to financing activities
□ Applicable√ N/A
Other cash payments relating to financing activities
√ Applicable□ N/A
In RMB
Item During the reporting period Prior period
Dividend payments 23,814.21
Actual lease payment 16,998,728.27 17,383,232.80
Share repurchase payment 89,540,479.04
Total 106,539,207.31 17,407,047.01
Description of other cash payments relating to financing activities:
None
Changes in various liabilities due to financing activities
√ Applicable□ N/A
In RMB
Increase Decrease
Opening Closing
Item Cash Non-cash Cash Non-cash
balance balance
change change change change
Short-term 80,036,500.00 794,888.87 30,798,888.87 50,032,500.00
borrowings
Non-current
liabilities due 268,748,151.67 156,938,885.03 100,862,342.01 324,824,694.69
within 1 year
Long-term 370,649,631.22 95,230,654.50 6,053,089.35 6,032,685.19 144,247,929.79 321,652,760.09
borrowings
Total 719,434,282.89 95,230,654.50 163,786,863.25 137,693,916.07 144,247,929.79 696,509,954.78
(4). Description of cash flows stated on a net basis
□ Applicable√ N/A
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(5). Significant activities that do not involve receipts and payments of cash in the current period, but
affect the financial position of the enterprise or may affect the cash flows of the enterprise in the
future
□ Applicable√ N/A
79. Supplementary information to the cash flow statement
(1) Supplementary information to the cash flow statement
√ Applicable□ N/A
In RMB
Amount for the Amount for the
Supplementary information
current period prior period
1. Reconciliation of net profit to cash flow from
operating activities:
Net profit -2,929,928.31 39,527,466.05
Add: Provision for impairment of assets 27,861,537.16 29,013,931.74
Impairment losses of credit 10,437,805.62 3,513,083.07
Depreciation of fixed assets, depletion of oil and gas 61,299,362.63
59,926,542.86
assets, depreciation of productive biological assets
Amortization of right-of-use assets 14,137,642.55 14,899,916.76
Amortization of intangible assets 2,258,010.54 2,121,924.37
Amortization of long-term prepaid expenses 3,134,330.09 1,956,826.99
Losses on disposal of fixed assets, intangible assets and
-15,262.15
other long-term assets (gains are indicated by “-”)
Losses on disposal of fixed assets (gains are indicated
533,012.62 231,395.02
by “-”)
Losses on changes in fair values (gains are indicated by
-10,062,500.00
“-”)
Financial expenses (income is indicated by “-”) 10,538,601.11 3,338,040.63
Investment losses (income is indicated by “-”) 25,806,969.54 2,806,106.20
Decrease in deferred tax assets (increase is indicated by
-1,848,809.41 10,312,245.28
“-”)
Increase in deferred tax liabilities (decrease is indicated
544,300.33
by “-”)
Decrease in inventories (increase is indicated by “-”) -33,345,046.45 104,726,621.15
Decrease in receivables from operating activities -221,702,868.68
18,233,904.75
(increase is indicated by “-”)
Increase in payables from operating activities (decrease 26,204,459.37
-200,944,159.73
is indicated by “-”)
Others 7,986,451.06 25,090,249.13
Net cash flow from operating activities -79,146,670.23 114,738,832.13
2. Significant investing and financing activities that
do not involve cash receipts and payments:
Conversion of debt into capital
Convertible corporate bonds due within 1 year
Fixed assets acquired under finance leases
3. Net changes in cash and cash equivalents:
Closing balance of cash 1,121,669,333.29 1,228,232,134.57
Less: Opening balance of cash 1,297,848,895.75 1,254,582,403.12
Add: Closing balance of cash equivalents
Less: Opening balance of cash equivalents
Net increase in cash and cash equivalents -176,179,562.46 -26,350,268.55
(2) Net cash paid to acquire subsidiaries for the current period
□ Applicable√ N/A
164 / 204
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(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
In RMB
Item Closing balance Opening balance
I. Cash 1,121,669,333.29 1,297,848,895.75
Including: Cash on hand 5,769.27 5,751.15
Bank deposits that can be paid at any
1,114,961,262.44 1,289,231,268.27
time
Other monetary funds that can be
6,702,301.58 8,611,876.33
paid 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
1,121,669,333.29 1,297,848,895.75
equivalents
Including: Restricted cash and cash
equivalents of the parent company or 21,093,827.78 178,753,477.66
subsidiaries within the Group
(5) Items subject to restriction in use but still presented as cash and cash equivalents
√ Applicable□ N/A
In RMB
Amount for the current Reason
Item
period
In a dedicated account for
Offering proceeds 21,093,827.78
special purposes
Total 21,093,827.78 -
(6) Monetary funds not classified as cash and cash equivalents
√ Applicable□ N/A
In RMB
Amount for the Amount for the
Item Reason
current period prior period
Term deposits and interests
Bank deposits 81,733,534.26 40,000,005.49
provided
Other monetary
18,679,342.40 10,961,787.42 Security deposits
funds
Bank deposits 112,745,931.53 0 Restricted for use
Total 213,158,808.19 50,961,792.91 -
Other information:
□ 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:
□ Applicable√ N/A
165 / 204
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81. Foreign currency monetary items
(1). Foreign currency monetary items
√ Applicable□ N/A
In RMB
Closing balance of Closing balance of RMB
Item Exchange rate
foreign currency equivalent
Monetary funds 169,029,876.34
Including: USD 23,073,053.59 7.1268 164,437,038.33
EUR 418,757.84 7.6617 3,208,396.94
HKD 793,026.97 0.91268 723,779.85
GBP 564.26 9.0430 5,102.60
VND 250,793,845.00 0.000286 71,727.04
AUD 11,830.37 4.7650 56,371.71
CAD 5,400.58 5.2274 28,230.99
JPY 11,158,945.00 0.044738 499,228.88
Accounts receivable 27,485,436.99
Including: USD 3,816,853.86 7.1268 27,201,954.09
EUR 37,000.00 7.6617 283,482.90
HKD
Accounts payable 75,585,891.73
Including: USD 10,645,822.94 7.1268 75,870,650.93
JPY 1,600,000.00 0.044738 71,580.80
Other information:
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 Basis of
Item
operation place currency choice
Common
Appotronics Hong Kong Limited Hong Kong USD
currency
Local
Appotronics USA, Inc. USA USD
currency
JoveAI Limited Common
Cayman Islands USD
currency
Local
JoveAI Innovation, Inc. USA USD
currency
Common
Formovie Limited Hong Kong USD
currency
Local
JoveAI Asia Company Limited Vietnam VND
currency
Hongkong Orange Juice Energy Common
Hong Kong USD
Technology Co., Limited currency
Local
Wemax Inc. USA USD
currency
Common
Appotronics International Limited Hong Kong USD
currency
Common
Appotronics International 1 Limited Hong Kong USD
currency
166 / 204
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Common
Appotronics International 2 Limited Hong Kong USD
currency
Appotronics Hong Kong Holding Common
Hong Kong USD
Limited currency
Common
Appotronics Japan Co., Ltd. Japan USD
currency
Appotronics Technology (HONG Common
Hong Kong USD
KONG) Limited currency
82. Leases
(1) As a lessee
√ Applicable□ N/A
Expenses relating to variable lease payments are not included in the measurement of lease liabilities
□ Applicable√ N/A
Simplified handling of lease expenses for short-term leases and low-value asset leases
√ Applicable□ N/A
In RMB
Item Current period Prior period
Expenses related to short-term
1,502,491.09 1,595,808.62
leases
Sale and leaseback transactions and determination basis
□ Applicable√ N/A
The total cash outflow related to the lease is RMB 18,501,219.36.
(2) As a lessor
Operating lease as a lessor
√ Applicable□ N/A
In RMB
Where: Income related to
Item Lease incomes variable lease payments not
recognized as lease payments
Projection services 162,110,282.37 157,844,227.93
Total 162,110,282.37 157,844,227.93
Finance lease as a lessor
□ Applicable√ N/A
Reconciliation of undiscounted lease receipts to net investment
□ Applicable√ N/A
Undiscounted lease receipts for the next five years
√ Applicable□ N/A
In RMB
Yearly undiscounted lease receipts
Item
Closing balance Opening balance
Year 1 8,317,872.00 5,939,650.00
Year 2
Year 3
Year 4
Year 5
Total undiscounted lease receipts
for the next five years
(3) Sales profit and loss from finance leases recognized as a manufacturer or distributor
□ Applicable√ N/A
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Other information
None
83. Data resources
□ Applicable√ N/A
84. Others
□ Applicable√ N/A
VIII. Research and development expenses
(1).Presentation by the nature of expenses
√ Applicable□ N/A
In RMB
Item During the reporting Prior period
period
Employee benefits 77,178,286.66 86,643,213.03
Material consumption expenses 9,883,197.10 11,968,242.66
Depreciation and amortization expenses 8,922,669.56 7,408,217.43
Testing expenses 3,484,793.48 2,233,677.17
Service fees 2,959,461.32 6,014,448.00
Rent expense 2,194,206.38 2,027,319.05
Patent fees 3,277,677.31 1,909,173.76
Other expenses 3,718,495.39 8,201,851.02
Total 111,618,787.20 126,406,142.12
Including: Expensed R&D expenditures 111,618,787.20 126,406,142.12
Capitalized R&D expenditures
Other information:
None
(2).R&D expenditures meeting the capitalization conditions
□ Applicable√ N/A
Significant capitalized R&D projects
□ Applicable√ N/A
Provision for impairment of development expenditures
□ Applicable√ N/A
Other information
None
(3).Significant outsourced ongoing R&D projects
□ Applicable√ N/A
IX. Changes in the scope of consolidation
1. Business combination not involving enterprises under common control
□ Applicable√ N/A
2. Business combination involving entities under common control
□ Applicable√ N/A
3. Counter purchase
□ Applicable√ N/A
168 / 204
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4. Disposal of subsidiaries
Transactions or events in which the Company loses control over subsidiaries
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
Whether there are step-by-step disposal of subsidiaries and loss of control over the subsidiaries during the period
□ Applicable√ N/A
Other information:
□ 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
Subsidiary name Description of change
Wemax LLC Deregistration
Formovie Technology Inc. Deregistration
Appotronics International 1 Limited Newly established
Appotronics International 2 Limited Newly established
Appotronics Hong Kong Holding Limited Newly established
Appotronics Japan Co., Ltd. Newly established
Appotronics Technology (HONG KONG) Limited Newly established
Shenzhen Muhe Information Technology Co., Ltd. Newly established
Shenzhen Xingjin Information Technology Co., Ltd. Newly established
6. Others
□ Applicable√ N/A
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X. Equity in other entities
1. Equity in subsidiaries
(1). Composition of enterprise group
√ Applicable□ N/A
In RMB 0’000
Principal Shareholding
Subsidiary Registered Registratio Business ratio (%) Acquisition
operatio
Name capital n place nature method
n place Direct Indirect
Business
Shenzhen combination
R&D and
Appotronics involving
CNY sales of laser
Laser Display Shenzhen Shenzhen 100.00 enterprises
3,000.00 display
Technology under
products
Co., Ltd. common
control
Appotronics Technical
Technology research and
(Changzhou) development
Co., Ltd. Changzho CNY of projection Establishme
Changzhou 100.00
u 2,000.00 equipment, nt
screen and
electronic
computer
Shenzhen Technology
Appotronics development
Software CNY and sales of Establishme
Shenzhen Shenzhen 100.00
Technology 1,000.00 computer nt
Co., Ltd. software and
hardware
Technical
development,
sales, and
Shenzhen technical
Appotronics services for
Establishme
Display Shenzhen CNY 300.00 Shenzhen display 100.00
nt
Device Co., products;
Ltd. Engaged in
import and
export
business
Shenzhen Development,
Appotronics consultation
Xiaoming and transfer Establishme
Shenzhen CNY 200.00 Shenzhen 100.00
Technology of laser nt
Co., Ltd. display
technology
Shenzhen Software
Appotronics development
Home Line related to
Establishme
Technology Shenzhen CNY 100.00 Shenzhen semiconducto 100.00
nt
Co., Ltd. r
optoelectronic
products
Shenzhen Software
Appotronics development
Establishme
Laser Shenzhen CNY 100.00 Shenzhen for 100.00
nt
Technology semiconducto
Co., Ltd. r
170 / 204
2024 Semiannual Report
optoelectronic
devices
Tianjin Business
Bonian Film combination
Partnership not
No specific
(LP) involving
Tianjin CNY 824.70 Tianjin business 99.00 1.00
enterprises
conducted
under
common
control
Beijing Technology
Orient promotion;
Appotronics computer
CNY Establishme
Technology Beijing Beijing systems, 59.00
1,000.00 nt
Co., Ltd. application
software
services
Qingda
Information
Appotronics
CNY technology Establishme
(Xiamen) Shenzhen Xiamen 51.00
1,000.00 consulting nt
Technology
services
Co., Ltd.
Formovie
(Chongqing) Technology
Chongqin CNY Establishme
Innovative Chongqing and software 39.19
g 7,017.54 nt
Technology development
Co., Ltd.
Fengmi
Technology
(Beijing) CNY Establishme
Beijing Beijing and software 39.19
Technology 5,000.00 nt
development
Co., Ltd.
Chongqing
No specific
Guangbo Chongqin Establishme
CNY 1.00 Chongqing business 39.19
Ecommerce g nt
conducted
Co., Ltd.
Chongqing
No specific
Ewei Chongqin Establishme
CNY 1.00 Chongqing business 39.19
Ecommerce g nt
conducted
Co., Ltd.
Shenzhen
Orange Juice Technology
Establishme
Energy Shenzhen CNY 500.00 Shenzhen and software 39.19
nt
Technology development
Co., Ltd.
Hongkong
Engaged in
Orange Juice
Hong import and Establishme
Energy HKD 1.00 Hong Kong 39.19
Kong export nt
Technology
business
Co., Limited
Wemax Inc. Engaged in
import and Establishme
USA USD 2.00 USA 39.19
export nt
business
Shenzhen Business
Weiwoqi combination
No specific
Trading Co., Chongqin not
CNY 1.00 Shenzhen business 39.19
Ltd. g involving
conducted
enterprises
under
171 / 204
2024 Semiannual Report
common
control
Yaoyouguang
No specific
(Chongqing) Chongqin CNY1,000.0 Establishme
Chongqing business 39.19
Technology g 0 nt
conducted
Co., Ltd.
Formovie No specific
Hong Establishme
Limited HKD 1.00 Hong Kong business 39.19
Kong nt
conducted
CINEAPPO Research and
Laser Cinema development, Business
Technology production, combination
(Beijing) Co., technical involving
CNY
Ltd. Beijing Beijing services, sales 24.84 42.96 enterprises
10,000.00
and lease of under
laser cinema common
projection control
equipment
Appotronics Production,
Hong Kong research, and
Limited development
of
semiconducto
r
optoelectronic
Hong USD Establishme
Hong Kong products, 100.00
Kong 4,320.00 nt
sales and
consulting,
investment
and video
content value-
added
services
Appotronics R&D, Business
USA, Inc. manufacture combination
and sales of involving
USA 0.00 USA semiconducto 100.00 enterprises
r under
optoelectronic common
products control
JoveAI No specific
Cayman Cayman Establishme
Limited USD 0.14 business 74.37
Islands Islands nt
conducted
JoveAI R&D of laser
Innovation, display Establishme
USA USD 0.0001 USA 74.37
Inc. software nt
system
JoveAI Asia Technical
Company research and
Limited development
VND of projection Establishme
Vietnam Vietnam 74.37
232,300.00 equipment, nt
screen and
electronic
computer
Appotronics No specific
Hong Establishme
International USD 1.00 Hong Kong business 100.00
Kong nt
Limited conducted
172 / 204
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Appotronics Semiconduct
Intelligent or
Manufacturin photoelectric
g (Shenzhen) production,
CNY Establishme
Co., Ltd. Shenzhen Shenzhen research, 100.00
5,000.00 nt
development,
sales, and
technical
support
Shenzhen Business
Qianhai combination
Taishi not
No specific
Investment CNY involving
Shenzhen Shenzhen business 70.00 30.00
Partnership 1,000.00 enterprises
conducted
(LP) under
common
control
Appotronics Production,
International research, and
1 Limited development
of
semiconducto
r
Hong optoelectronic Establishme
USD 0.0001 Hong Kong 100.00
Kong products, nt
sales and
consulting,
investment
and video
value-added
services
Appotronics Production,
International research, and
2 Limited development
of
semiconducto
r
Hong optoelectronic Establishme
USD 0.0001 Hong Kong 100.00
Kong products, nt
sales and
consulting,
investment
and video
value-added
services
Appotronics
No specific
Hong Kong Hong Establishme
HKD 1.00 Hong Kong business 100.00
Holding Kong nt
conducted
Limited
Appotronics Production,
Japan Co., research,
Ltd. development,
sales,
consulting,
Establishme
Japan JPY 1.00 Japan and 100.00
nt
investment of
laser display
products and
projection
products, and
173 / 204
2024 Semiannual Report
video value-
added
services
Appotronics Research,
Technology development,
(HONG sales,
KONG) investment,
Limited and
consulting of
Hong Establishme
HKD 1.00 Hong Kong laser display 100.00
Kong nt
and
projection
products and
automotive
optics
products
Shenzhen
Muhe No specific
Establishme
Information Shenzhen CNY 100.00 Shenzhen business 100.00
nt
Technology conducted
Co., Ltd.
Shenzhen
Xingjin No specific
Establishme
Information Shenzhen CNY 50.00 Shenzhen business 100.00
nt
Technology conducted
Co., Ltd.
Description of the difference between the proportion of shareholding and the proportion of voting rights
in a subsidiary:
None
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 Limited, Chongqing Ewei Ecommerce Co., Ltd.,
Chongqing Guangbo Ecommerce Co., Ltd., and Yaoyouguang (Chongqing) Technology Co., Ltd. are
wholly-owned subsidiaries of Formovie (Chongqing) Innovative Technology Co., Ltd.; Hongkong Orange
Juice Energy Technology Co., Limited, Wemax Inc., and Weiwoqi Trading Co., Ltd. are wholly-owned
subsidiaries of Shenzhen Orange Juice Energy Technology Co., Ltd.; Shenzhen Orange Juice Energy
Technology Co., Ltd. is a wholly-owned subsidiary of Formovie (Chongqing) Innovative Technology Co.,
Ltd.
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 of Formovie (Chongqing) Innovative Technology Co., Ltd., 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 information
None
(2). Significant non-wholly subsidiaries
√ Applicable□ N/A
In RMB
174 / 204
2024 Semiannual Report
Dividends
Profit or loss
declared for
attributable to
Minority distribution to Closing balance
minority
Subsidiary name shareholdings minority of minority
shareholders
ratio (%) shareholders in interests
for the current
the current
period
period
Formovie (Chongqing)
Innovative Technology 60.81 -29,485,389.55 - -190,512,478.97
Co., Ltd.
CINEAPPO Laser
Cinema Technology 32.20 16,709,116.30 10,626,000.00 168,307,485.64
(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
Other information:
□ Applicable√ N/A
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(3). Significant financial information of significant non-wholly subsidiaries
√ Applicable□ N/A
In RMB
Closing balance Opening balance
Subsidiar Non- Non- Non- Non-
Current Total Current Total Current Total Current Total
y name current current current current
assets assets liabilities liabilities assets assets liabilities liabilities
assets liabilities assets liabilities
Formovie
(Chongqin
g) 381,814,2 57,126,19 438,940,4 657,832,056 94,399,71 752,231,769 457,400,671 57,826,13 515,226,802 616,030,713 165,773,9 781,804,65
Innovative 12.22 2.63 04.85 .61 3.09 .70 .99 0.91 .90 .80 38.04 1.84
Technolog
y Co., Ltd.
CINEAPP
O Laser
Cinema 338,786,6 185,468,213 13,311,08 198,779,294
382,686,7 721,473,3 344,639,969 458,251,1 802,891,083 284,664,831 13,916,84 298,581,68
Technolog 06.55
42.58 49.13
.19 1.16 .35
.04 14.50 .54 .13 9.30 0.43
y
(Beijing)
Co., Ltd.
During the reporting period Prior period
Cash flow Cash flow
Total Total
Subsidiary name Operating from Operating from
Net profit comprehensive Net profit comprehensive
income operating income operating
income income
activities activities
Formovie
(Chongqing)
- -
Innovative 238,792,797.72 -48,858,358.67 23,707,356.45 376,001,807.21 -81,240,100.67 -53,694,813.30
48,526,218.42 79,216,813.38
Technology Co.,
Ltd.
176 / 204
2024 Semiannual Report
CINEAPPO Laser
Cinema
242,414,426.50 51,891,665.53 51,891,665.53 80,772,259.26 241,876,410.66 47,164,577.56 47,164,577.56 119,896,656.27
Technology
(Beijing) Co., Ltd.
Other information
None
177 / 204
2024 Semiannual Report
(4). Significant limitations on the 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 information:
□ Applicable√ N/A
2. Changes of shares of owners’ equity in subsidiaries but continue to remain in 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
During the reporting period, Formovie (Chongqing) Innovative Technology Co., Ltd. accepted the
15% minority interests in Shenzhen Orange Juice Energy Technology Co., Ltd. at the price of RMB 1, so
that Shenzhen Orange Juice became a wholly-owned subsidiary of Chongqing Formoive, and the equity
interests indirectly held by Appotronics in Shenzhen Orange Juice and its subsidiaries increased from
33.31% to 39.19%.
During the reporting period, the convertible corporate bonds issued by the Company to JoveAI Limited,
totaling USD 2,387,397.26 together with the interests thereon, were converted into shares, so that the
equity interests held by the Company in JoveAI Limited increased from 64.29% to 74.37%.
(2). Effect of the transaction on the minority interests and the equity attributable to owners of the
parent company
√ Applicable□ N/A
In RMB
Shenzhen Orange
JoveAI Limited Juice Energy
Technology Co., Ltd.
Acquisition cost/disposal consideration
-- Cash 1.00
-- Fair value of non-cash assets 16,846,944.23
Total acquisition cost/disposal consideration 16,846,944.23 1.00
Less: Share in net assets of subsidiaries 10,949,896.96 -3,370,715.70
calculated based on the acquired/disposed
shareholding ratio
Difference 5,897,047.27 3,370,716.70
Including: Adjustment to capital reserves 5,897,047.27 3,370,716.70
Adjustment to surplus reserves
Adjustment to retained profits
Other information
□ Applicable√ N/A
3. Equity in joint ventures or associates
√ Applicable□ N/A
(1). Significant associates or joint ventures
□ Applicable√ N/A
(2). Major financial information of significant joint ventures
□ Applicable√ N/A
(3). Major financial information of significant associates
□ Applicable√ N/A
178 / 204
2024 Semiannual Report
(4). Summary financial information of insignificant joint ventures and associates
√ Applicable□ N/A
In RMB
Closing balance/Amount for Opening balance/Amount for
the current period the prior period
Joint ventures:
Total book value of
investments
Total amounts calculated based on shareholding proportions
-- Net profit
-- Other comprehensive
income
-- Total comprehensive
income
Associates:
Total book value of
6,183,769.99 5,836,162.11
investments
Total amounts calculated based on shareholding proportions
-- Net profit -436,832.42
-- Other comprehensive
0
income
-- Total comprehensive
-436,832.42
income
Other information
None
(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
XI. Government grants
1. Government grants recognized at the amount receivable at the end of the period
□ Applicable√ N/A
Reason for failing to receive the government grants in the expected amount at the expected time point
□ Applicable√ N/A
2. Liability items related to government grants
□ Applicable√ N/A
3. Government grants included in profit or loss for the period
√ Applicable□ N/A
179 / 204
2024 Semiannual Report
In RMB
During the
Type Prior period
reporting period
Amount of government grants recognized
14,929,412.51 23,608,983.31
as other incomes
Amount of government grants recognized
30,000.00 9,000,000.00
as non-operating incomes
Effect of interest subsidies on the total
300,600.00 6,084,300.00
profit
Total 15,260,012.51 38,693,283.31
Other information:
（1） New government grants in the current period
Item Increased government grants for the
current period
Amount of government grants related to income 13,531,837.14
Including: Recognized as deferred incomes 333,700.00
Recognized as other incomes 13,168,137.14
Recognized as non-operating incomes 30,000.00
Interest subsidies 300,600.00
Including: Offset against financial expenses 300,600.00
Total 13,832,437.14
XII. Risks associated with financial instruments
1. Risks associated with financial instruments
√ Applicable□ N/A
The Company’s risk management objectives are to achieve a proper balance between risks and yield,
minimize the adverse impacts of risks on the Company’s operation performance, and maximize the
benefits to 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 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.
(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 counter-party.
1. Management of credit risk
(1) Evaluation 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 additional cost or effort, including quantitative and qualitative
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 instruments 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.
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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 compared
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 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 of historical statistical data (such as counter-
party ranking, guarantee methods, collateral category, and repayment way) and forward-looking
information.
3. Refer to VII.4, VII.5, VII.6, VII.7, VII.9, and VII.16 of Section X for details of the reconciliation
of the opening balance and the closing balance of provision for impairment of financial instruments.
4. Credit risk exposure and credit risk concentration
The Company’s credit risk is primarily from monetary funds and receivables. In order to control the
risks associated with aforementioned items, the Company has taken the following measures.
(1) Monetary funds
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 and contract assets
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 by
monitoring the balance of its receivables, so as to ensure that the Company is not exposed to significant
risk of bad debt.
No collateral is 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, 2024, the Company
is exposed to a certain concentration of credit risks, as the Company’s accounts receivable and contract
assets from top 5 customers have accounted for 70.16% of the total balance of accounts receivable
(December 31, 2023: 59.01%). The Company held no collateral or other credit ranking measures for the
balance of accounts receivable and contract assets.
The maximum exposure to the Company is the book value 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 to perform 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 counter-party’s inability to pay its contractual liabilities,
the accelerated maturity of liabilities, or an inability to generate expected cash flows.
181 / 204
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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
Book value Within 1 year 1-3 years Over 3 years
contract amount
Bank
678,975,017.50 714,108,213.56 383,684,773.71 243,076,199.41 87,347,240.44
borrowings
Notes
105,114,863.34 105,114,863.34 105,114,863.34
payable
Accounts
403,638,748.50 403,638,748.50 403,638,748.50
payable
Other
90,355,287.99 90,355,287.99 90,355,287.99
payables
Lease
29,525,804.15 31,176,070.69 18,507,908.36 12,668,162.33
liabilities
Sub-total 1,307,609,721.48 1,344,393,184.08 1,001,301,581.90 255,744,361.74 87,347,240.44
(Continued)
Item Closing balance of the prior year
Book value Undiscounted Within 1 year 1-3 years Over 3 years
contract amount
Bank
692,862,919.06 735,334,807.65 343,828,440.51 309,926,656.55 81,579,710.59
borrowings
Notes
76,001,079.07 76,001,079.07 76,001,079.07
payable
Accounts
247,318,466.10 247,318,466.10 247,318,466.10
payable
Other
54,142,509.17 54,142,509.17 54,142,509.17
payables
Lease
42,120,349.54 44,407,139.93 27,921,961.12 15,610,193.95 874,984.86
liabilities
Sub-total 1,112,445,322.94 1,157,204,001.92 749,212,455.97 325,536,850.50 82,454,695.45
(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.
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As at June 30, 2024, the principal of the Company’s floating-rate interest-bearing bank borrowings
amounted to RMB 528,840,183.03 (December 31, 2023: RMB 464,442,238.44). 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.81 of Section X in details.
2. Hedge
(1) The Company conducted hedging businesses for risk management
□ Applicable√ N/A
Other information
□ Applicable√ N/A
(2) The Company conducted qualified hedging businesses and adopted hedging accounting
□ Applicable√ N/A
Other information
□ Applicable√ N/A
(3) The Company conducted hedging businesses for risk management which are expected to achieve
the objectives of hedging management but did not adopt hedging accounting
□ Applicable√ N/A
Other information
□ Applicable√ N/A
3. Transfer of financial assets
(1) Types of transfer
□ Applicable√ N/A
(2) Financial assets derecognized due to transfer
□ Applicable√ N/A
(3) Transferred financial assets with continuous participation
□ Applicable√ N/A
Other information
□ Applicable√ N/A
XIII. Disclosure of fair value
1. The closing balance of the fair value of assets and liabilities measured at fair value
√ Applicable□ N/A
In RMB
Closing balance of fair value
Item
Level 1 Level 2 Level 3 Total
I. Continuous fair value
measurement
(I) Held-for-trading financial
473,130,000.00 30,000,000.00 503,130,000.00
assets
1. Financial assets at fair value
473,130,000.00 30,000,000.00 503,130,000.00
through profit or loss
(1) Investment in debt
instrument
183 / 204
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(2) Investment in equity
30,000,000.00 30,000,000.00
instrument
(3) Derivative financial assets
(4) Structural deposits 473,130,000.00 473,130,000.00
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 instrument
7,075,419.38 7,075,419.38
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
(VI) Receivables financing 65,953,036.07 65,953,036.07
(VII) Other non-current 99,443,720.92 99,443,720.92
financial assets
Total assets continuously
572,573,720.92 103,028,455.45 675,602,176.37
measured at fair value
(VI) Held-for-trading financial
liabilities
1. Financial liabilities at fair
value through profit or loss
Including: Held-for-trading
bonds issued
Derivative financial
liabilities
Others
2. Designated as financial
liabilities at fair value through
profit or loss
Total liabilities continuously
measured at fair value
II. Non-continuous fair value
measurement
(I) Held-for-sale assets
Total assets that are not
continuously measured at fair
value
Total liabilities that are not
continuously measured at fair
value
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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
Structured deposits are valued using observable returns, with the sum of expected returns and
principal determined as fair value when the expected yield is observable, and the principal amount as fair
value in other cases.
Other non-current financial assets are valued by using the market method to measure and determine
the fair value thereof.
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
The Company uses specific valuation techniques to determine fair value, and important parameters
used include the net assets of the investee unit at the end of the period.
5. Reconciliation between opening and closing book values 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
XIV. Related-party relationships and transactions
1. Parent of the Company
√ Applicable□ N/A
In RMB 0’000
Proportion of Proportion of
the the Company’s
Parent Registration Business Registered Company’s voting rights
company place nature capital shares held by held by the
the parent parent
company (%) company (%)
Shenzhen R&D and sales
Appotronics of
Shenzhen 1,000 17.15 17.15
Holdings semiconductor
Limited products
Description of the parent company of the Company
None
The ultimate controlling party of the Company is LI Yi.
Other information:
None
2. Subsidiaries of the Company
√ Applicable□ N/A
Please refer to the description in X of Section X for details about the subsidiaries of the Company.
185 / 204
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3. Associates and joint ventures of the Company
Refer to the note for details about the significant joint ventures or associates of the Company.
√ Applicable□ N/A
Please refer to the description in X of Section X for the details about the major joint ventures or associates
of the Company.
Details of other joint ventures or associates having related-party transactions and balances with the
Company in the period or prior periods:
√ Applicable□ N/A
Associates or joint ventures Relationship with the Company
Shenzhen Zhongjian Technology Co., Ltd. Associate
Other information
□ Applicable√ N/A
4. Other related parties of the Company
√ Applicable□ N/A
Name of other related party Relationship between other related party and the
Company
Beijing Donview Education Technology Co., Ltd. Minority shareholders holding more than 10% shares in
and its affiliates the subsidiary and their affiliates
Shenzhen YLX Technology Development Co.,
Controlled by the same de facto controller
Ltd.
Xiaomi Communications Co., Ltd. and its Minority shareholders holding more than 10% shares in
affiliates the subsidiary and their affiliates
Minority shareholders holding more than 10% shares in
China Film Equipment Co., Ltd. and its affiliates
the subsidiary and their affiliates
Shenzhen Lighting Institute Controlled by the same de facto controller
Other information
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
In RMB
Whether the
Transaction
During the transaction
Subject amounts
Related party reporting amounts are Prior period
matter approved (if
period exceeded (if
applicable)
applicable)
Xiaomi
Electronic
Communications
components 8,477,705.45 20,200,000.00 No 38,793,268.70
Co., Ltd. and its
and Service
affiliates
China Film Power, water
Equipment Co., Ltd. cooling and 12,498,748.28 53,500,000.00 No 11,255,989.49
and its affiliates services
GDC Technology
Electronic
Limited (BVI) and 33,628.32 Yes 336,283.18
components
its affiliates
Beijing Donview
Education Maintenance
4,198.11
Technology Co., services
Ltd. and its affiliates
186 / 204
2024 Semiannual Report
Shenzhen YLX
Electronic
Technology
components 1,419,342.26 5,000,000.00 No 908,182.19
Development Co.,
and Service
Ltd.
Total 22,429,424.31 78,700,000.00 51,297,921.67
Sales of goods/rendering of services
√ Applicable□ N/A
In RMB
During the
Related party Subject matter Prior period
reporting period
China Film Equipment Co., Laser light source and cinema
12,145,223.58 11,606,671.69
Ltd. and its affiliates projection services
Xiaomi Communications
Laser TV, smart mini projector 81,183,617.04 80,163,085.66
Co., Ltd. and its affiliates
CINIONIC and its
Cinema light source 30,228,389.84
affiliates
Shenzhen YLX
Technology Development Electronic components 1,073,781.77 3,685,678.75
Co., Ltd.
GDC Technology Limited
Cinema projectors 133,456.88 294,140.46
(BVI) and its affiliates
Beijing Donview
Education Technology Co., Education projector 2,714.15 2,573.26
Ltd. and its affiliates
Shenzhen Zhongjian
Service 269,096.64
Technology Co., Ltd.
Total 94,807,890.06 125,980,539.66
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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2024 Semiannual Report
The Company as the lessee:
√ Applicable□ N/A
In RMB
Variable lease
Simplified handling
payments not
of rental costs for Assumed interest
included in the
short-term leases Paid rent expenses of lease Added right-of-use assets
measurement of
Type of and low-value asset liabilities
Name of lease liabilities (if
leased leases (if applicable)
lessor applicable)
assets
During During During
During the During the
the Prior the Prior Prior the Prior Prior
reporting reporting
reporting period reporting period period reporting period period
period period
period period period
China
Film
Equipment Property
7,534.43 14,231.64 2,074,212.12 1,540,920.50 58,907.57 58,659.73 4,048,095.62 3,223,361.75
Co., Ltd. lease
and its
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
In RMB 0’000
Item During the reporting period Prior period
Compensation for key
339.31 368.84
management personnel
(8). Other related-party transactions
□ Applicable√ N/A
6. Unsettled items receivable from or payable to related parties
(1). Amounts due from related parties
√ Applicable□ N/A
In RMB
Closing balance Opening balance
Provision
Project Related party Carrying Carrying Provision for
for bad
amount amount bad debts
debts
Accounts GDC Technology Limited
785,765.33 196,441.33 801,394.38 196,250.40
receivable (BVI) and its affiliates
Accounts WeCast and its affiliates
16,541,558.24 16,541,558.24
receivable
Accounts Xiaomi Communications
40,570,851.87 2,028,542.59 64,902,941.11 3,245,147.06
receivable Co., Ltd. and its affiliates
Shenzhen YLX
Accounts
Technology Development
receivable
Co., Ltd.
Accounts China Film Equipment
1,286,849.36 71,918.35 3,299,580.10 164,979.01
receivable Co., Ltd. and its affiliates
Sub-total 42,643,466.56 2,296,902.27 85,545,473.83 20,147,934.71
China Film Equipment
Prepayments 2,160,293.74 1,736,886.89
Co., Ltd. and its affiliates
GDC Technology Limited
Prepayments 43,716.82
(BVI) and its affiliates
Sub-total 2,160,293.74 1,780,603.71
Other China Film Equipment
191,444.00 9,572.20 171,450.20 8,572.51
receivables Co., Ltd. and its affiliates
Other GDC Technology Limited 14,111,064.00
14,023,746.00
receivables (BVI) and its affiliates
Other Xiaomi Communications
100,000.00 5,000.00 200,000.00 10,000.00
receivables Co., Ltd. and its affiliates
Sub-total 14,402,508.00 14,572.20 14,395,196.20 18,572.51
189 / 204
2024 Semiannual Report
(2). Amounts due to related parties
√ Applicable□ N/A
In RMB
Project Related party Closing balance Opening
of carrying balance of
amount carrying
amount
Accounts Shenzhen YLX Technology Development Co.,
787,976.87 390,043.13
payable Ltd.
Accounts Xiaomi Communications Co., Ltd. and its
4,219,011.41 1,286,376.61
payable affiliates
Accounts China Film Equipment Co., Ltd. and its affiliates
7,650,779.35 9,319,770.17
payable
Sub-total 12,657,767.63 10,996,189.91
Notes payable China Film Equipment Co., Ltd. and its affiliates 6,963,823.46
Sub-total 6,963,823.46
Advance from China Film Equipment Co., Ltd. and its affiliates
7,085,653.22 8,056,313.86
customers
Advance from GDC Technology Limited (BVI) and its affiliates
46,103.49
customers
Sub-total 7,131,756.71 8,056,313.86
Contract Xiaomi Communications Co., Ltd. and its 105,732.29
liabilities affiliates
Contract China Film Equipment Co., Ltd. and its affiliates 2,610,805.11
1,259,149.95
liabilities
Contract Shenzhen Zhongjian Technology Co., Ltd. 524,900.52
763,039.15
liabilities
Sub-total 3,241,437.92 2,022,189.10
Beijing Donview Education Technology Co.,
Other payables 50,000.00 50,000.00
Ltd. and its affiliates
Xiaomi Communications Co., Ltd. and its
Other payables 117,916.00
affiliates
Other payables GDC Technology Limited (BVI) and its affiliates 113,195.00 221,249.75
Other payables China Film Equipment Co., Ltd. and its affiliates 7,200.00
Sub-total 281,111.00 278,449.75
Other current Xiaomi Communications Co., Ltd. and its
13,745.20 115,422.47
liabilities affiliates
Other current China Film Equipment Co., Ltd. and its affiliates 2,375,914.12
323,036.17
liabilities
Other current Shenzhen Zhongjian Technology Co., Ltd.
68,237.07 99,195.09
liabilities
Sub-total 2,457,896.39 537,653.73
(3). Other items
□ Applicable√ N/A
7. Related party commitments
□ Applicable√ N/A
8. Others
□ Applicable√ N/A
XV. Share-based payments
1. Various equity instruments
√ Applicable□ N/A
190 / 204
2024 Semiannual Report
Quantity unit: shares In RMB
Granted in the Exercised in the current Unlocked in the Expired in the current
Category of
current period period current period period
payee
Quantity Amount Quantity Amount Quantity Amount Quantity Amount
Management
2,922,290.00 46,113,350.89 379,500.00 7,480,909.50
members
Management
members 127,980.00 1,079,602.40
(Formoive)
Total 2,922,290.00 46,113,350.89 507,480.00 8,560,511.90
Outstanding share options or other equity instruments at the end of the period
√ Applicable□ N/A
Outstanding share options at the end Outstanding other equity instruments
of the period at the end of the period
Category of payee
Exercise price Remaining Exercise price Remaining
range contractual period range contractual period
Management RMB 4.3-
6-13 months
22.841/share
Management
RMB 1-3.42/share 24 months
(Formoive)
Other information
None
2. Equity-settled share-based payments
√ Applicable□ N/A
In RMB
The method of determining the fair value of equity Option pricing model
instruments at the grant date
Significant parameters of the fair value of equity
instruments at the grant date
The basis for determining the number of equity
Actual grant amount
instruments expected to be executed
Reasons for the significant difference between the
estimate in the current period and that in the prior None
period
Amounts of equity-settled share-based payments
141,279,069.96
accumulated in capital reserve
Other information
(1) Equity-settled share-based payments of Chongqing Formovie In RMB
The method of determining the fair value of equity Evaluation of all shareholder’s
instruments at the grant date equity interests
The basis for determining the number of equity
Actual grant amount
instruments expected to be executed
Reasons for the significant difference between the
estimate in the current period and that in the prior None
period
Amounts of equity-settled share-based payments
19,675,710.70
accumulated in capital reserve
(2) All restricted shares granted by the Company are Type II restricted shares, while the registered
capital granted by Chongqing Formovie was treated with reference to Type I restricted shares.
3. Cash-settled share-based payments
□ Applicable√ N/A
191 / 204
2024 Semiannual Report
4. Share-based payment expenses in the current period
√ Applicable□ N/A
In RMB
Category of payee Expenses of equity-settled Expenses of cash-settled
share-based payments share-based payments
Management 8,095,829.69
Total 8,095,829.69
Other information
None
5. Modification to and termination of share-based payments
□ Applicable√ N/A
6. Others
□ Applicable√ N/A
XVI. Commitments and contingencies
1. Significant commitments
□ Applicable√ N/A
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/claimant
As of December 30, 2024, the important information about civil litigation and arbitration in which the
Company acted as a plaintiff is specifically as follows:
Case Plaintiff/Claim Patents Amount Progre
Cause of action Defendant/Respondent
No. ant involved involved ss
Arbitration and
ZHANG Wanneng, de facto
arbitration Appotronics
controller of GDC
counterclaim of Hong Kong Compensation
01-22- Technology Limited
the dispute over Limited, of no less than Accept
0001- (Cayman Islands) and GDC N/A
the Appotronics USD 40.00 ed
2735 Technology Limited (British
implementation Corporation million
Virgin Islands), and the
of the settlement Limited
management team thereof
agreement
2. Civil litigation and arbitration where the Company acted as the defendant/respondent
As of June 30, 2024, the important information about civil litigation and arbitration in which the Company
acted as a defendant is specifically as follows:
Case Defendant/Respo Patents Amount Progr
Cause of action Plaintiff/Claimant
No. ndent involved involved ess
Arbitration and GDC Technology
Appotronics Hong
arbitration Limited (Cayman
01-22- Kong Limited,
counterclaim of the Islands), GDC USD 38.00 Accep
0001- Appotronics N/A
dispute over the Technology Limited million ted
2735 Corporation
implementation of the (British Virgin
Limited
settlement agreement Islands)
Arbitration case of
contract dispute, in
Compensation
HKIA which the claimant held
Espedeo Holdings Appotronics Hong no less than Accep
C/A24 that the respondent N/A
Limited Kong Limited USD 3.1671 ted
154 violated the Purchase
million
and Sales Agreement,
which resulted in
192 / 204
2024 Semiannual Report
economic losses to the
claimant.
Note: Espedeo Holdings Limited is a wholly-owned subsidiary of GDC BVI.
(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
XVII. Events after the balance sheet date
1. Material non-adjusting event
□ Applicable√ N/A
2. Profit distribution
√ Applicable□ N/A
In RMB
Proposed distributions of profits or Distribute to all shareholders a cash dividend of RMB 0.7
dividends (tax inclusive) for every 10 shares
Profits or dividends declared for
distribution upon discussion and 32,084,193.96
approval
3. Sales return
□ Applicable√ N/A
4. Description of other events after the balance sheet date
□ Applicable√ N/A
XVIII. Other significant events
1. Corrections of prior period errors
(1). Retrospective application
□ Applicable√ N/A
(2). Prospective application
□ Applicable√ N/A
2. Significant 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
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(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
(4). Other information
□ 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
XIX. Notes to key items in the parent company’s financial statements
1. Accounts receivable
(1). Disclosure by aging
√ Applicable□ N/A
In RMB
Closing balance of carrying Opening balance of carrying
Aging
amount amount
Within 1 year
Including: Sub-items within 1 year
Within 1 year 421,719,657.47 248,513,107.85
Sub-total of items within 1
421,719,657.47 248,513,107.85
year
1 to 2 years 184,279,529.16 168,649,179.18
2 to 3 years 39,743,065.70 40,720,444.20
Over 3 years 4,084,113.10 13,741,038.86
Total 649,826,365.43 471,623,770.09
(2). Disclosure by categories of provision for bad debts
√ Applicable□ N/A
In RMB
Closing balance Opening balance
Provision for bad Provision for bad
Carrying amount Carrying amount
debts debts
Category Percentag Book Percentage Book
Percentag e of value Percent of value
Amount Amount Amount Amount
e (%) provision age (%) provision
(%) (%)
Provision
for bad
debts made 863,700.00 0.13 863,700.00 100.00 863,700.00 0.18 863,700.00 100.00
individuall
y
Provision
for bad 648,962,665.4 15,117,193.7 633,845,471.7 470,760,070.0 8,279,833. 462,480,236.
99.87 2.33 99.82 1.76
debts made 3 2 1 9 72 37
by group
649,826,365.4 15,980,893.7 633,845,471.7 471,623,770.0 9,143,533. 462,480,236.
Total 3
100.00
2
2.46
1 9
100.00
72
1.94
37
Provision for bad debts made individually:
□ Applicable√ N/A
Provision for bad debts made by group:
√ Applicable□ N/A
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Item by group:
In RMB
Closing balance
Name Provision for bad Percentage of
Accounts receivable
debts provision (%)
Group of aging 213,615,923.16 15,117,193.72 7.08
Group of receivables from
related parties in the scope 435,346,742.27
of consolidation
Total 648,962,665.43 15,117,193.72 2.33
Description of provision for bad debts made by group:
□ Applicable√ N/A
Provision for bad debts made in accordance with the general model of ECL
□ Applicable√ N/A
Basis for determination of each stage and percentage of provision for bad debts
Refer to V.11 of Section X for details.
Description of significant changes in the balance of accounts receivable with changed provisions for losses in
the current period:
□ Applicable√ N/A
(3). Provision for bad debts
√ Applicable□ N/A
In RMB
Changes for the current period
Opening Recovery Write-off Closing
Category Other
balance Provision or or balance
changes
reversal cancellation
Provision
for bad
863,700.00 863,700.00
debts made
individually
Provision
for bad
8,279,833.72 6,837,360.00 15,117,193.72
debts made
by group
Total 9,143,533.72 6,837,360.00 15,980,893.72
Including significant amounts recovered or reversed from the current provision for bad debts:
□ Applicable√ N/A
Other information
None
(4). Accounts receivable actually canceled in the current period
□ Applicable√ N/A
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 and contract assets categorized by debtors
√ Applicable□ N/A
In RMB
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Proportion to
the total
Closing Closing
Closing Closing balance closing
balance balance of
balance of of accounts balance of
Entity of provision
accounts receivable and accounts
contract for bad
receivable contract assets receivable
assets debts
and contract
assets (%)
Top 1 300,883,955.42 300,883,955.42 46.15
Top 2 155,267,717.51 155,267,717.51 23.82 7,763,385.88
Top 3 71,097,146.80 71,097,146.80 10.91
Top 4 26,115,537.28 26,115,537.28 4.01
Top 5 18,198,253.58 18,198,253.58 2.79
Total 571,562,610.59 571,562,610.59 87.67 7,763,385.88
Other information
None
Other information:
□ Applicable√ N/A
2. Other receivables
Presented by item
√ Applicable□ N/A
In RMB
Item Closing balance Opening balance
Interest receivable
Dividend receivable
Other receivables 358,976,925.08 14,978,163.24
Total 358,976,925.08 14,978,163.24
Other information:
□ Applicable√ N/A
Interest receivable
(1). Categories of interest receivable
□ Applicable√ N/A
(2). Significant interests overdue
□ Applicable√ N/A
(3). Disclosure by categories of provision for bad debts
□ Applicable√ N/A
Provision for bad debts made individually:
□ Applicable√ N/A
Explanation about provision for bad debts made individually:
□ Applicable√ N/A
Provision for bad debts made by group:
□ Applicable√ N/A
Provision for bad debts made in accordance with the general model of ECL
□ Applicable√ N/A
(4). Provision for bad debts
□ Applicable√ N/A
Including significant amounts recovered or reversed from the current provision for bad debts:
□ Applicable√ N/A
Other information
None
(5). Interests receivable actually written off in the current period
□ Applicable√ N/A
In which the write-off of significant interests receivable is described as below:
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□ Applicable√ N/A
Description of write-off:
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
Dividends receivable
(6). Dividends receivable
□ Applicable√ N/A
(7). Dividends receivable with significant amounts aged more than 1 year
□ Applicable√ N/A
(8). Disclosure by categories of provision for bad debts
□ Applicable√ N/A
Provision for bad debts made individually:
□ Applicable√ N/A
Explanation about provision for bad debts made individually:
□ Applicable√ N/A
Provision for bad debts made by group:
□ Applicable√ N/A
Provision for bad debts made in accordance with the general model of ECL
□ Applicable√ N/A
(9). Provision for bad debts
□ Applicable√ N/A
Including significant amounts recovered or reversed from the current provision for bad debts:
□ Applicable√ N/A
Other information
None
(10). Dividend receivable actually written off in the current period
□ Applicable√ N/A
In which the write-off of significant dividend receivable is described as below:
□ Applicable√ N/A
Description of write-off
□ Applicable√ N/A
Other information
□ Applicable√ N/A
Other receivables
(11). Disclosure by aging
√ Applicable□ N/A
In RMB
Closing balance of carrying Opening balance of carrying
Aging
amount amount
Within 1 year
Including: Sub-items within 1 year
Within 1 year 353,583,183.32 8,993,196.10
Sub-total of items within 1 year 353,583,183.32 8,993,196.10
1 to 2 years 502,678.19 835,410.95
2 to 3 years 80,446.00 82,446.00
Over 3 years 5,404,349.84 5,471,349.86
Total 359,570,657.35 15,382,402.91
(12). Categories by the nature
√ Applicable□ N/A
In RMB
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Closing balance of carrying Opening balance of carrying
Nature of receivables
amount amount
Deposits/margins/petty cash 9,079,343.36 7,278,349.93
Amounts with related parties in
348,986,724.81 7,347,685.40
the scope of consolidation
Temporary receivables 1,504,589.18 756,367.58
Compensation receivable
Total 359,570,657.35 15,382,402.91
(13). Provision for bad debts
√ Applicable□ N/A
In RMB
Stage I Stage II Stage III
12-month Lifetime ECL Lifetime ECL Total
Provision for bad debts
ECL in the (without credit (with credit
future impairment) impairment)
Balance as at January 1,
401,109.93 3,129.74 404,239.67
2024
Balance as at January 1,
2024 in the current period
--transferred to Stage II -16,133.91 16,133.91
--transferred to Stage III
--reversed to Stage II
--reversed to Stage I
Provision 128,086.70 61,405.90 189,492.60
Reversal
Write-off
Cancellation
Other changes
Balance as at June 30, 2024 513,062.72 80,669.55 593,732.27
Basis for determination of each stage and percentage of provision for bad debts
The group of deposit and security receivable, group of amounts from transaction with related parties
in the scope of consolidation, and other receivables due within one year in the age group indicate no
obvious increase in the credit risk since initial recognition (stage I), 1-2 years in the age group indicate
obvious increase in the credit risk since initial recognition but no credit impairment (stage II), and over 2
years in the age group indicate credit impairment since initial recognition (stage III).
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
(14). Provision for bad debts
√ Applicable□ N/A
In RMB
Changes for the current period
Opening Closing
Category Recovery Write off or Other
balance Provision balance
or reversal cancellation changes
Provision for
bad debts
404,239.67 189,492.60 593,732.27
made by
group
Total 404,239.67 189,492.60 593,732.27
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Including significant amounts recovered or reversed from the current provision for bad debts:
□ Applicable√ N/A
Other information
None
(15). Other receivables actually canceled in the current period
□ Applicable√ N/A
In which significant amounts written off are described as below:
□ Applicable√ N/A
Description of other receivables cancellation:
□ Applicable√ N/A
(16). Top five closing balances of other receivables categorized by debtors
√ Applicable□ N/A
In RMB
Proportion
Provision
to the
for bad
Closing balance of Nature of other
Entity Aging debts
balance other receivables
Closing
receivables
balance
(%)
Amounts with related
Within
Top 1 319,607,854.98 88.89 parties in the scope of
1 year
consolidation
Amounts with related
Within
Top 2 17,002,815.75 4.73 parties in the scope of
1 year
consolidation
Amounts with related
Within
Top 3 5,778,496.36 1.61 parties in the scope of
1 year
consolidation
Amounts with related
Within
Top 4 5,478,833.19 1.52 parties in the scope of
1 year
consolidation
Deposits/margins/petty Over 3
Top 5 3,574,618.00 0.99 178,730.90
cash years
Total 351,442,618.28 97.74 - - 178,730.90
(17). Presentation in other receivables due to centralized fund management
□ Applicable√ N/A
Other information
□ Applicable√ N/A
3. Long-term equity investments
√ Applicable□ N/A
In RMB
Closing balance Opening balance
Item Carrying Provision for Carrying Provision for
Book value Book value
amount impairment amount impairment
Investments in
171,683,634.68 12,827,792.79 158,855,841.89 476,309,658.71 12,827,792.79 463,481,865.92
subsidiaries
Investments in
associates and 6,183,769.99 6,183,769.99 5,836,162.11 5,836,162.11
joint ventures
Total 177,867,404.67 12,827,792.79 165,039,611.88 482,145,820.82 12,827,792.79 469,318,028.03
(1). Investments in subsidiaries
√ Applicable□ N/A
199 / 204
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In RMB
Closin
g
Provis
balanc
ion
Opening Closing e of
Investee Increase Decrease for
balance balance provisi
impai
on for
rment
impair
ment
CINEAPPO Laser
Cinema Technology 47,170,375.58 211,270.26 47,381,645.84
(Beijing) Co., Ltd.
Shenzhen Appotronics
Software Technology 1,386,168.36 1,386,168.36
Co., Ltd.
Beijing Orient
Appotronics 5,900,000.00 5,900,000.00
Technology Co., Ltd.
Shenzhen Appotronics
12,000,0
Xiaoming Technology 12,000,000.00 12,000,000
00.00
Co., Ltd.
Fengmi (Beijing) 3,325,738.82 3,325,738.82
Technology Co., Ltd.
Qingda Appotronics
827,792.
(Xiamen) Technology 5,100,000.00 5,100,000.00
79
Co., Ltd.
Shenzhen Appotronics
Laser Display 18,966,857.26 18,966,857.26
Technology Co., Ltd.
Appotronics
305,944,668.85 98,265.05 306,042,933.90
HongKong Limited
JOVE AI Innovation 800,010.02 800,010.02
Appotronics
Technology 2,000,000.00 2,000,000.00
(Changzhou) Co., Ltd.
Shenzhen Appotronics
Display Device Co., 3,000,000.00 3,000,000.00
Ltd.
Tianjin Bonian Film 26,954,120.20 26,954,120.20
Partnership (LP)
Formovie (Chongqing)
Innovative Technology 29,947,919.62 29,947,919.62
Co., Ltd.
Shenzhen Qianhai
Taishi Investment 13,813,800.00 13,813,800.00
Partnership (LP)
Shenzhen Muhe
1,000,000.0
Information Technology 0
1,000,000.00
Co., Ltd.
Appotronics 98,265.06 98,265.06
International Limited
Appotronics
Technology (Hong 9,109.50 9,109.50
Kong) Limited
1,416,909.8 12,827,7
Total 476,309,658.71
7
306,042,933.90 171,683,634.68
92.79
200 / 204
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(2). Investments in associates and joint ventures
√ Applicable□ N/A
In RMB
Changes for the current period
Closing
Investme Adjustm
Openin Declared balance of
Additi Decre nt profit ent in Other Provision
g cash Closing provision
Investee onal ased or loss other equity for Oth
balanc dividend balance for
invest invest under compreh change impairme ers
e s or impairmen
ment ment equity ensive s nt
profits t
method income
I. Joint
venture
Sub-total
II.
Associate
s
Shenzhen 5,836, - 784,44 6,183,7
Zhongjia 162.11 436,832. 0.30 69.99
n 42
Technolo
gy Co.,
Ltd.
Sub-total 5,836, - 784,44 6,183,7
162.11 436,832. 0.30 69.99
42
5,836, - 784,44 6,183,7
Total 162.11 436,832. 0.30 69.99
42
(3). Impairment test of long-term equity investments
□ Applicable√ N/A
Other information
□ Applicable√ N/A
The net value of the recoverable amount determining by subtracting disposal expenses from the
fair value
□ Applicable√ N/A
The recoverable amount is determined according to the present value of the estimated future cash
flows
□ Applicable√ N/A
Reason for the obvious difference between the information above and the information used in the
impairment test in previous years or external information
□ Applicable√ N/A
Reason for the obvious difference between the information used by the Company in the impairment
test in previous years and the actual conditions of the corresponding year
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
4. Operating income and operating costs
(1). Description of operating income and operating costs
√ Applicable□ N/A
In RMB
Item Amount for the current period Amount for the prior period
201 / 204
2024 Semiannual Report
Income Cost Income Cost
Main business 710,455,810.59 560,232,751.34 542,956,800.34 368,571,473.83
Other business
Total 710,455,810.59 560,232,751.34 542,956,800.34 368,571,473.83
(2). Breakdown of operating income and operating cost
√ Applicable□ N/A
In RMB
Total
Category of contract
Operating income Operating costs
By the type of goods
Core device business 406,521,703.07 329,804,210.03
Complete projector equipment 230,905,727.07 161,958,120.25
Other products and businesses 73,028,380.45 68,470,421.06
By operating region
Sales in China 636,087,447.01 514,820,085.88
Sales outside of China 74,368,363.58 45,412,665.46
Total 710,455,810.59 560,232,751.34
Other information
□ Applicable√ N/A
(3). Description of performance obligations
□ Applicable√ N/A
(4). Description of allocation to remaining performance obligations
□ Applicable√ N/A
(5). Material contract changes or material adjustments in transaction prices
□ Applicable√ N/A
Other information
None
5. Investment income
√ Applicable□ N/A
In RMB
During the reporting
Item Prior period
period
Gains from long-term equity investment 7,452,000.00
8,197,200.00
accounted for using the cost method
Long-term equity investment accounted for
-436,832.42
using the equity method
Investment income from the disposal of
12,336,143.05
long-term equity investments
Investment income from held-for-trading
financial assets during the holding period
Dividend income from other equity
instrument investments during the holding
period
Interest income from debt investments
during the holding period
Interest income from other debt investments
during the holding period
Investment income from disposal of held- 16,264,140.92 5,265,708.55
for-trading financial assets
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Investment income from disposal of other
equity instrument investments
Investment income from the disposal of
debt investments
Investment income from the disposal of
other debt investments
Profits from debt restructuring
Others -359,837.45
Total 36,000,814.10 12,717,708.55
Other information:
None
6. Others
□ Applicable√ N/A
XX. Supplementary information
1. Breakdown of non-recurring profit or loss for the current period
√ Applicable□ N/A
In RMB
Item Amount Description
Gain or loss on disposal of non-current assets, including write-off of
-542,907.96
provision for asset impairment
Government grants recognized in profit or loss for the current period
(excluding government grants that are closely related to the business of VII.67 of Section
the Company and are provided in accordance with established standards 6,613,195.04 X, and VII.74 of
with continuous effects on the profit or loss of the Company according Section X
to the provisions of national policies)
Profit or loss on changes in the fair value of financial assets and
financial liabilities held by non-financial enterprises and profit or loss VII.68 of Section
on the disposal of financial assets and financial liabilities, other than 19,343,730.90 X, and VII.70 of
those used in the effective hedging activities related to the normal Section X
operating business of the Company
Income earned from lending funds to non-financial institutions and
recognized in profit or loss
Profit or loss on entrusted investments or assets management VII. 68 of
6,982,910.02
Section X
Profit or loss on entrusted loans
Losses on assets due to force majeure events, e.g. natural disasters
Reversal of impairment loss on accounts receivable and contract assets
tested for impairment individually
The excess of the attributable fair value of identifiable net assets over
the consideration paid for the acquisition of subsidiaries, associates and
joint ventures
Net profit or loss of subsidiaries from the beginning of the period up to
the business combination date recognized as a result of the business 7,005,333.38
combination of enterprises involving enterprises under common control
Profit or loss on the exchange of non-monetary assets
Profit or loss on debt restructuring
One-off expenses incurred by the enterprise for discontinued operating
activities, such as expenditures for employee placement, etc.
One-off effect on the profit or loss for the current period due to an
adjustment in taxation, accounting, and other laws and regulations
Share-based payment expenses recognized on a one-off basis for
canceling or modifying an equity incentive plan
For cash-settled share-based payments, profit or loss from the change in
fair value of employee benefits payable after the exercise date
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Profit or loss on changes in the fair value of investment properties that
are subsequently measured using the fair value model
Profit or loss attributable to the evidently unfair transaction price
Profit or loss arising from contingencies other than those related to
normal operating business
Custodian fees earned from entrusted operation
Other non-operating income and expenses 1,103,459.06
Other gains or losses meeting the definition of non-recurring profit or VII. 68 of
-37,353,061.61
loss Section X
Less: Effect of income taxes 4,782,728.03
Effects attributable to minority interests (net of tax) 1,457,852.28
Total -2,569,674.07
It is required to specify the reason for defining items not illustrated in Information Disclosure and
Presentation Rules for Companies Making Public Offering of Securities No. 1 - Non-recurring Profit or
Loss as non-recurring profit or loss items of significant amounts, 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
For details, refer to “Section II Company Profile and Financial Highlights - VIII. Items and amounts of
non-recurring profit or loss” of this semiannual report.
Other information
□ Applicable√ N/A
2. Return on net assets and earnings per share
√ Applicable□ N/A
Earnings per share
Weighted
Profit for the reporting period average return Diluted
Basic earnings
on net assets (%) earnings per
per share
share
Net profit attributable to ordinary shareholders of 0.39 0.02 0.02
the Company
Net profit after deduction of non-recurring profits 0.48 0.03 0.03
or losses attributable 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 29, 2024
Revision information
□ Applicable√ N/A
204 / 204
