每日头条!光峰科技: 2023年第一季度报告(英文版)

来源:证券之星  发布时间:2023-06-21 18:56:19 

                                                                         The First Quarter Report in 2023

Stock Code: 688007                                                    Stock Short Name: Appotronics


(资料图片)

              Appotronics Corporation Limited

              The First Quarter Report in 2023

       The Board of Directors of the Company and all directors warrant that this Announcement is free

 from any misrepresentation, misleading statement, or material omission, and shall be jointly and

 severally liable for the truthfulness, accuracy, and completeness of the content hereof.

Important Notes

(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 Quarterly Report is true, accurate and

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

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

(II)The Principal, Person in Charge of the Accounting Body, and Chief Accountant of the Company

hereby represent that the information of the financial statements contained in this Quarterly Report are

true, accurate and complete.

(III)Whether the financial statements of the 1st quarter have been audited

      □ Yes   √ No

     本报告为深圳光峰科技股份有限公司自愿披露的《2023 年第一季度报告(英文版)》,对本

报告的中英文版本理解上发生歧义时,以中文版本为准。

     This is the First Quarterly Report in 2023 (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.

                                                                          The First Quarter Report in 2023

    I. Major financial data

    (IV) Main accounting data and financial indicators

                                                                                                In RMB

                                                                                         Change on a

                  Item                          During the reporting period

                                                                                    year-on-year basis (%)

Operating income                                       459,012,885.14                        -12.59

Net profit attributable to

shareholders of the listed company

Net profit attributable to shareholders

of the listed company after deduction of               -11,377,457.90                       -2,165.97

non-recurring profit or loss

Net cash flow from operating activities                -36,331,090.68                         N/A

Basic earnings per share

 (RMB/share)

Diluted earnings per share

 (RMB/share)

Weighted average return on net

 assets (%)

Total R&D investments                                   63,434,898.20                         15.49

Proportion of R&D investments

 to operating income (%)

                                                                                   Changes at the end of

                                           At the end of the    At the end of      the reporting period

                                           reporting period     the prior year     from the end of the

                                                                                   prior year (%)

Total assets                               4,357,740,302.44     4,333,350,260.15              0.56

Owners’ equity attributable to

shareholders of the listed company

    (V) Items and amounts of non-recurring profit or loss

                                                                                                In RMB

                         Item                                        Amount for the         Description

                                                                     current period

                                                                       The First Quarter Report in 2023

 Gain or loss on disposal of non-current assets                    -108,462.62

 Government grants recognized in profit or loss for the

 current period (excluding government grants that are

 closely related to the business of the Company and are           17,997,782.24

 provided in fixed amount or quantity continuously

 according to the applicable polices and standards of the

 country)

 Profit or loss on entrusted investments or assets

 management

 Net profit or loss of subsidiaries from the beginning of the

 period up to the business combination date recognized as a

 result of business combination of enterprises involving

 enterprises under common control

 Profit or loss on changes in the fair value of

 held-for-trading financial assets, derivative

 financial assets, held-for-trading financial liabilities

 and derivative financial liabilities and investment

 income on disposal of held-for-trading financial

 assets, derivative financial assets, held-for-trading

 financial liabilities, derivative financial liabilities and

 other debt investments, other than those used in the

 effective hedging activities relating to normal

 operating business

Receivables that are separately tested for impairment and

impairment of contract assets preparing to be reversed

 Other non-operating income and expenses                            298,864.40

 Other profits or losses meeting the definition of

 non-recurring profit or loss

 Less: Effect of income taxes                                      3,096,907.64

Effects attributable to minority interests (net of tax)             290,756.91

                              Total                               25,032,122.85

 Description of defining non-recurring profit or loss items illustrated in Information Disclosure and

 Presentation Rules for Companies Making Public Offering of Securities No. 1- Non-recurring Profit

 or Loss as recurring profit or loss items

 □ Applicable √ N/A

 (VI) Description of and reasons for changes in the main accounting data and financial

                                                                              The First Quarter Report in 2023

 indicators

 √ Applicable       □ N/A

                Item                   % Change                               Main reason

Net profit attributable to

                                                             This was mainly due to a combination of reasons

shareholders of the listed

                                        -2,165.97             such as lower revenue, increased investment in

company after deduction of

                                                                          marketing and R&D.

non-recurring profit or loss

     In the face of complex and changeable internal and external environment, the Company always

adheres to the strategic focus of " core technologies+ core devices + application scenarios ", and actively

adapts to changes in uncertainty. With profound technology accumulation in the field of optics, the

Company grasps the market opportunities brought by the steady advancement of the "core devices"

strategy, continues to increase R&D investment in growth businesses such as automotive optics, strives

to build a new growth pole of the Company"s performance, and pursues the Company"s high-quality

growth. In the first quarter of 2023, the Company"s main operating conditions are as follows:

     Since entering the automotive optical track, the Company has continued to make breakthroughs in

the automotive optical business, quickly obtained the IATF 16949:2016 quality management system

certification, obtained the access pass to enter the domestic and foreign automotive industry supply

chain, and obtained the Development Nomination Letter issued by BYD, an internationally renowned

brand car company, Seres and other well-known car companies, to achieve rapid growth of automotive

optical business.

     At the International Consumer Electronics Show (CES 2023) held in January 2023, automotive

brand BMW unveiled the world"s first concept car equipped with four-window fusion display

technology—Dee, for which the Company provided four-window fusion display technology module. At

the recently held 20th Shanghai International Automotive Industry Exhibition, the Company released the

world"s first automotive-grade RGB laser headlights, showing immersive in-car digital interaction

solutions such as exterior window display, in-car transparent display, in-car entertainment screen, and

smart surface display, demonstrating the Company"s new ideas for various scenarios of future

automotive optics, bringing a smarter and more interesting driving experience to drivers and passengers.

In addition, the Company attaches great importance to the patent layout of automotive optical

technology, and in the first quarter of 2023, the Company added 42 new authorizations and applications

                                                                         The First Quarter Report in 2023

for patents related to automotive optical technology; as of March 31, 2023, the cumulative number of

patents authorized and applied for automotive optical technology reached 170.

     With the rapid development of electric vehicle intelligence, the Company will continue to expand

the automotive optical business around the three application directions of automotive display, laser

headlights, and HUD, and work with industry chain ecological partners to jointly create a new intelligent

car experience for consumers.

     In terms of cinema projection service business, in 2023, the supply of film sources and the pace of

release are recovering, and the cinema market is gradually recovering. In the first quarter of 2023, the

Company"s cinema projection service business achieved an operating income of RMB 90.9638 million, a

year-on-year increase of 11.03%.

     In terms of professional display business, the Company continued to strengthen strategic

cooperation with core customers and industry chain partners, and held a core partner summit with the

theme of "Working Together to Shine the World" in March 2023. During the reporting period, the

Company"s professional display business recovered well as a whole, with an increase of 22.11% in

operating income over the same period last year, of which the overseas special display business

expanded rapidly, and the operating income increased by 74.71% over the same period last year.

     In terms of C-end own brands, Formovie further focused on its own brand construction, and its own

brand business revenue was basically the same as the same period last year, and its revenue accounted

for more than 70% of Formovie"s total revenue, and its comprehensive gross profit margin increased

significantly.

     (1) Operating income

     During the reporting period, the Xiaomi ODM business revenue of its subsidiary decreased by

the Company"s revenue performance.

     (2) Fees

     During the reporting period, the Company increased R&D investment in growth businesses such as

automotive optics, and R&D expenses increased by RMB 8.5099 million, a year-on-year increase of

                                                                               The First Quarter Report in 2023

  increased by RMB 5.0294 million, a year-on-year increase of 9.16% compared with 2022.

    II. Shareholder information

   (I) Total number of ordinary shareholders, number of preferred shareholders whose voting right has

   been restituted, and shares held by top 10 shareholders

                                                                                                  Unit: Share

                                                   Total number of preferred

Total number of ordinary

                                                   shareholders whose voting right has

shareholders as of the end of the      13,902                                                          N/A

                                                   been restituted as of the end of the

reporting period

                                                   reporting period (if any)

                                      Shares held by top 10 shareholders

                                                                               Number of          Shares pledged,

                                                                 Numbe         non-tradable       marked, or

                                                   Proport

                                                                 r of          shares held,       frozen

                                                   ion of

                     Nature of       Number of                   non-tra       including the

Shareholder                                        sharehol

                     shareholder     shares held                 dable         shares lent out    Status

                                                   ding                                                      Quan

                                                                 shares        under the          of

                                                     (%)                                                     tity

                                                                 held          refinancing        shares

                                                                               arrangement

                     Domestic

Shenzhen

                     non-stated

Appotronics                           79,762,679      17.45             0                 0        None             -

                     owned

Holdings Limited

                     corporation

Shenzhen Yuanshi     Domestic

Laser Industrial

                     non-stated

Investment                            24,139,500      5.28              0                 0        None             -

                     owned

Consulting

Partnership (LP)     corporation

Nantong Strait       Domestic

Appotronics          non-stated

Investment           owned

Partnership (LP)     corporation

Shenzhen             Domestic

Appotronics Daye     non-stated

Investment           owned

Partnership (LP)

                     corporation

                                                                                 The First Quarter Report in 2023

Shenzhen               Domestic

Appotronics Hongye     non-stated

Investment             owned

Partnership (LP)

                       corporation

                       Domestic

Shenzhen Jinleijing

                       non-stated

Investment Limited                          12,353,106        2.70       0                0          None           -

                       owned

Partnership(LP)

                       corporation

Shenzhen               Domestic

Appotronics            non-stated

Chengye Consulting     Owned

Partnership(LP)        corporation

Bank of China-E

Fund Stable Income

                       other                8,629,271         1.89       0                0          None           -

Bond Securities

Investment Fund

Shenzhen

Guochuang Chenggu

                       Domestic

Capital Management

                       non-stated

Co., Ltd. -Shenzhen                         8,114,369         1.78       0                0          None           -

                       owned

Chengguhui Equity

Investment             corporation

Partnership (LP)

Industrial Bank

Company

Limited-Tianhong

                       other                7,788,075         1.70       0                0          None           -

Yongli Bond

Securities

Investment Fund

                                     Shares held by top 10 holders of tradable shares

                                             Number of tradable                Type and number of shares

              Shareholder

                                                shares held           Type of shares                        Quantity

Shenzhen Appotronics Holdings Limited            79,762,679          RMB-denominated ordinary            79,762,679

                                                                                  share

Shenzhen Yuanshi Laser Industrial

Investment                                       24,139,500          RMB-denominated ordinary            24,139,500

Consulting Partnership (LP)                                                       share

                                                                                       The First Quarter Report in 2023

Nantong Strait Appotronics Investment

Partnership   (LP)

                                                                                          share

Shenzhen Appotronics Daye Investment

Partnership (LP)

                                                                                          share

Shenzhen Appotronics Hongye

Investment                                        15,662,374              RMB-denominated ordinary                 15,662,374

Partnership (LP)                                                                          share

Shenzhen Jinleijing Investment Limited

Partnership(LP)

                                                                                          share

Shenzhen Appotronics Chengye

Consulting                                        10,394,846              RMB-denominated ordinary                 10,394,846

Partnership(LP)                                                                           share

Bank of China-E Fund Stable Income

Bond Securities Investment Fund

                                                                                          share

Shenzhen Guochuang Chenggu Capital

Management Co., Ltd. -Shenzhen

Chengguhui Equity Investment

                                                                                          share

Partnership (LP)

Industrial Bank Company

Limited-Tianhong Yongli Bond                       7,788,075              RMB-denominated ordinary                  7,788,075

Securities Investment Fund                                                                share

                                             except the concerted action among Shenzhen Appotronics Holdings Limited.,

                                             Shenzhen Yuanshi Laser Industrial Investment Consulting Partnership (LP),

                                             Shenzhen Appotronics Daye Investment Partnership (LP), Shenzhen Appotronics

 Affiliates or concert parties               Hongye Investment Partnership (LP), Shenzhen Jinleijing Investment Limited

among the shareholders stated above          Partnership (LP), and Shenzhen Appotronics Chengye Consulting Partnership

                                             (LP) in top 10 shareholders of the Company.

                                             the Administrative Measures for the Acquisition of the Listed Companies among

                                             other shareholders.

 Description of margin trading, short

 selling, and refinancing    involving top                                          N/A

 non-restricted shares (if any)

   III. Other events

                                                                                 The First Quarter Report in 2023

 Other important information about the business operation of the Company during the reporting period

 requesting the attention of investors

 √ Applicable     □ N/A

 (I) Litigation and arbitration

     During the reporting period, the details of the Company"s litigation and arbitration matters are as

follows:

numbers (2020) Yue 73 Zhi Min Chu No.1335-1341, 1353 and 1355-1361.

No.1070), Delta Electronics, Inc. is the right holder of the invention patent No.ZL201110041436.1, and

it claims that the Company and Shanghai Haichi Digital Technology Co., Ltd. have infringed its

invention patent right, and the case is being tried at first instance.

(II) Request for invalidation declaration

patents held by Delta Electronics, Inc., and 3 cases were under trial by the State Intellectual Property

Office.

patentee has been filed with an invalidation request, and 3 cases are under trial by the State Intellectual

Property Office, the patents involved are the “light source structure based on phosphor to improve the

light conversion efficiency” (patent number: 200810065225.X), “phosphor layer, device and

corresponding light source and projection system, and corresponding production method” (patent

number:     ZL201510420950.4),        “optical    system      and   projection     device”     (patent   number:

ZL202220267901.7).

IV. Quarterly financial statements

(I) Type of audit opinions

□ Applicable √ N/A

(II) Financial statements

                                                                         The First Quarter Report in 2023

                                       Consolidated Balance Sheet

                                             March 31, 2023

Prepared by: Appotronics Corporation Limited

                                                                     In RMB Audit type: Unaudited

                  Item                                  March 31, 2023              December 31, 2022

Current Assets:

   Cash and bank balances                                1,469,396,456.06              1,355,882,208.63

   Balances with clearing agencies

   Placements with banks and other

   financial institutions

   Held-for-trading financial assets                       357,880,000.00                352,880,000.00

   Derivative financial assets

   Notes receivable                                           2,699,977.52                  2,234,687.77

   Accounts receivable                                     144,756,256.94                208,260,235.79

   Receivables financing                                      4,448,898.00                  4,279,041.00

   Prepayments                                              40,571,724.91                 48,445,976.86

   Premiums receivable

   Amounts receivable under

   reinsurance contracts

   Reinsurer’s share of insurance

   contract reserves

   Other receivables                                        27,100,787.08                 26,331,721.55

   Including: Interest receivable

    Dividend receivable                                     13,605,966.00                 13,789,908.00

   Financial assets purchased under

   resale agreements

   Inventories                                             851,103,674.04                865,639,961.79

   Contract assets                                             866,469.79                   1,061,581.35

   Assets held for sale

   Non-current assets due within one year                   19,900,783.09                 13,431,554.82

   Other current assets                                    103,314,002.06                106,502,611.79

     Total current assets                                3,022,039,029.49              2,984,949,581.35

Non-current Assets:

                                                                 The First Quarter Report in 2023

   Loans and advances

   Debt investments

   Other debt investments

   Long-term accounts receivable                     13,939,785.50                11,524,193.80

   Long-term equity investment                      160,185,985.74               162,394,917.57

   Investment in other equity instruments              7,075,419.38                 7,075,419.38

   Other non-current financial assets

   Investment property

   Fixed assets                                     402,916,872.24               427,539,718.53

   Construction in progress                         291,969,144.16               278,978,057.73

   Productive biological assets

   Oil and gas assets

   Use right assets                                  63,613,309.14                62,255,670.29

   Intangible assets                                289,270,280.89               290,341,693.08

   Development expenditure

   Goodwill

   Long-term prepaid expenses                          7,283,451.21                 5,990,984.03

   Deferred tax assets                               85,124,160.74                89,730,936.02

   Other non-current assets                          14,322,863.95                12,569,088.37

    Total non-current assets                       1,335,701,272.95            1,348,400,678.80

        Total assets                               4,357,740,302.44            4,333,350,260.15

Current Liabilities:

   Short-term borrowings                            159,659,634.03               129,589,634.03

   Loans from the central bank

   Taking from banks and other

   financial institutions

   Held-for-trading financial liabilities

   Derivative financial liabilities                      54,000.00

   Notes payable                                    116,054,205.55               201,299,388.57

   Accounts payable                                 206,616,328.35               276,845,321.28

   Advance from customers                           101,754,238.14               113,834,728.10

   Contract liabilities                              54,030,723.44                37,285,920.43

   Financial assets sold under

   repurchase agreements

                                                                 The First Quarter Report in 2023

  Customer deposits and deposits from

  banks and other financial institutions

   Funds from securities trading

   agency

  Funds from underwriting securities

  agency

   Employee benefits payable                         29,226,329.49                58,470,960.55

   Taxes payable                                       2,462,789.92                 8,272,768.90

   Other payables                                    49,223,795.89                56,662,357.08

   Including: Interest payable

    Dividend payable

   Fees and commissions payable

   Amounts payable under

   reinsurance contracts

   Liabilities held for sale

   Non-current liabilities due within one

   year

   Other current liabilities                         31,215,539.56                28,383,608.37

      Total current liabilities                     881,378,804.30             1,088,676,504.68

Non-current Liabilities:

   Insurance contract reserves

   Long-term borrowings                             621,520,837.98               403,720,542.45

   Bonds payable

   Including: Preferred shares

    Perpetual bonds

   Leasing liabilities                               39,043,877.90                34,319,284.23

   Long-term payables

   Long-term employee benefits

   payable

   Estimated liabilities                             54,433,268.17                56,463,882.87

   Deferred income                                     5,675,578.54                 8,651,422.26

   Deferred tax liabilities

   Other non-current liabilities

  Total non-current liabilities                     720,673,562.59               503,155,131.81

    Total liabilities                              1,602,052,366.89            1,591,831,636.49

                                                                 The First Quarter Report in 2023

Owners’ Equity (Shareholders’ Equity):

   Paid-in capital (or share capital)               457,107,538.00               457,107,538.00

   Other equity instruments

   Including: Preferred shares

    Perpetual bonds

   Capital reserve                                 1,543,948,489.41            1,530,752,116.04

   Less: Treasury shares                             19,377,297.59                19,377,297.59

   Other comprehensive income                          5,624,053.17                 5,736,897.41

   Special reserve

   Surplus reserve                                   75,519,782.06                75,519,782.06

   General risk reserve

   Undistributed profit                             611,579,116.62               597,924,451.67

    Total owners’ (or shareholders’)

    equity attributable to owners of the           2,674,401,681.67            2,647,663,487.59

    Parent Company

   Minority interests                                81,286,253.88                93,855,136.07

  Total owners’ (or shareholders’) equity          2,755,687,935.55            2,741,518,623.66

  Total liabilities and owners’ (or

  shareholders’) equity

Legal Representative: LI Yi Chief Accountant: WANG Yingxia            Person in Charge of the

Accounting Body: WANG Yingxi

                                                                            The First Quarter Report in 2023

                                        Consolidated Income Statement

                                 For the period from January to March 2023

 Prepared by: Appotronics Corporation Limited

                                                                       In RMB Audit type: unaudited

                                                  The First Quarter in            The First Quarter

                        Item

 I. Total operating income                                    459,012,885.14               525,139,870.53

 Including: Operating income                                  459,012,885.14               525,139,870.53

          Interest income

          Premiums earned

          Fee and commission income

 II. Total operating costs                                    467,714,458.54               523,692,375.90

 Including: Operating costs                                   296,672,965.87               354,352,194.03

          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 additions                                      2,246,009.39               2,776,916.38

           Selling expenses                                       59,929,586.42              54,900,208.42

          Administrative expenses                                 42,342,747.37              54,622,705.64

          R&D expenses                                            63,434,898.20              54,924,987.12

          Financial expenses                                       3,088,251.29               2,115,364.31

          Including: Interest expense                              5,966,634.80               5,325,013.75

            Interest income                                        6,877,403.47               3,267,436.22

   Add: Other income                                              21,723,549.50              12,499,685.94

Investment income (loss is indicated by

                                                                  -2,765,299.53               1,790,753.08

“-”)

                                                                     The First Quarter Report in 2023

Including: Income from investments in

                                                           -5,117,145.08              -1,202,551.48

associates and joint ventures

Gains from derecognition of financial

assets measured at amortized cost

          Foreign exchange gains

 (loss is indicated by “-”)

          Gains from net exposure hedges

 (loss is indicated by “-”)

          Gains from changes in fair

                                                                                        -130,000.00

 values (loss is indicated by “-”)

          Losses of credit impairment

 (loss is indicated by “-”)

          Impairment losses of assets

                                                           -3,843,694.60               1,018,024.96

 (loss is indicated by “-”)

          Gains from disposal of assets

                                                               -2,903.65                    3,849.89

 (loss is indicated by “-”)

 III. Operating profit (loss is indicated by

 “-”)

   Add: Non-operating income                                 311,999.47                   79,121.80

   Less: Non-operating expense                               118,694.04                  166,556.20

 IV. Total profits (total losses are

 indicated by “-”)

   Less: Income tax expenses                                9,404,199.18              17,084,893.94

 V. Net profits (net losses are indicated

                                                           -1,302,447.10               7,390,627.17

by “-”)

 (I) Categorized by the continuity of operation

 operations (net losses are indicated by "-")              -1,302,447.10               7,390,627.17

 operations (net losses are indicated by “-”)

 (II) Categorized by the ownership

 shareholders of the Parent Company                        13,654,664.95              17,858,914.53

 (net losses are indicated by "-")

                                                                    The First Quarter Report in 2023

 attributable to minority

                                                         -14,957,112.05             -10,468,287.36

 shareholders (net losses are

 indicated by “-”)

 VI. Other comprehensive income, net of tax                 421,940.06               -2,098,194.75

 (I) Other comprehensive income that can be

 attributable to owners of the Parent                      -112,844.24               -2,114,795.48

 Company, net of tax

 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

                                                           -112,844.24               -2,114,795.48

will be reclassified to profit or loss

   (1) Other comprehensive income that

 will be reclassified to profit or loss under             4,433,259.00                 -531,438.79

 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                   -4,546,103.24              -1,583,356.69

 foreign    currencies

                                                                         The First Quarter Report in 2023

   (7) Others

   (II) Other comprehensive income that

 can    be   attributable    to    minority                       534,784.30                  16,600.73

 shareholders, net of tax

 VII. Total comprehensive income                                 -880,507.04               5,292,432.42

   (I) Total comprehensive income that can

 be attributable to owners of the Parent                       13,541,820.71              15,744,119.05

 Company

   (II) Total comprehensive income that

 can be attributable to minority                              -14,422,327.75             -10,451,686.63

 shareholders

VIII. Earnings per share:

   (I) Basic earnings per share (RMB/share)                             0.03                         0.04

   (II) Diluted earnings per share

 (RMB/share)

 In the event of business combinations involving enterprises under common control, the net profits

 realized prior to the combination by the party being absorbed is: RMB 0, and the net profits

 realized in the last period by the party being absorbed is: RMB 0.

 Legal Representative: LI Yi         Chief Accountant: WANG Yingxia            Person in Charge of the

 Accounting Body: WANG Yingxia

                                                                         The First Quarter Report in 2023

                                      Consolidated Cash Flow Statement

                                 For the period from January to March 2023

 Prepared by: Appotronics Corporation Limited

                                                                   In RMB Audit type: Unaudited

                    Item                              The First Quarter in       The First Quarter in

 I. Cash Flows from Operating Activties:

  Cash receipts from the sale of goods and the

rendering of services

   Net increase in customer deposits and

 deposits from banks and other financial

 institutions

   Net increase in loans from the central

 bank

   Net increase in taking from banks and

 other financial institutions

    Cash receipts from premiums under

 direct insurance contracts

   Net cash receipts from reinsurance

 business

   Net cash receipts from policyholders’

 deposits and investment contract

 liabilities

    Cash receipts from interest, fees and

 commissions

   Net increase in taking from banks

   Net increase in financial assets sold

 under repurchase arrangements

   Net cash received from securities

 trading agencies

   Receipts of tax refunds                                     1,723,533.49                1,653,792.53

    Other cash receipts relating to

 operating activities

        Sub-total of cash inflows from                      589,349,609.57

 operating activities                                                                   780,461,822.29

                                                                   The First Quarter Report in 2023

   Cash payments for goods purchased and

 services received

   Net increase in loans and advances to

 customers

   Net increase in balance with the

 central bank and due from banks and

 other financial 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

   Payments of various types of taxes                    15,116,610.77              21,170,130.47

   Other cash payments relating to

 operating activities

   Sub-total of cash outflows from

 operating activities

   Net cash flow from operating activities              -36,331,090.68             -68,223,422.47

 II. Cash Flows from Investing Activties:

   Cash receipts from disposals and

 recovery of investments

   Cash receipts from investment income                   2,405,845.55               2,993,304.56

   Net cash receipts from disposals of

 fixed assets, intangible assets and other                    5,500.00                       50.00

 long-term assets

   Net cash receipts from disposals of

 subsidiaries and other business units

   Other cash receipts relating to

 investing activities

      Sub-total of cash inflows from                    392,411,345.55            433,993,354.56

                                                                     The First Quarter Report in 2023

 investing activities

    Cash payments to acquire or construct

 fixed assets, intangible assets and other                 18,023,943.37              24,223,261.42

 long-term assets

   Cash payments to acquire investments                   395,000,000.00            419,000,000.00

  Net increase in pledged loans receivables

    Net cash payments for acquisitions of

 subsidiaries and other business units

    Other cash payments relating to

 investing activities

  Sub-total of cash outflows from

investing activities

Net cash flows from investment activities                 -20,612,597.82              -9,229,906.86

III. Cash Flows from Financing Activities:

 Cash receipts from capital contributions

    Including: Cash receipts from capital

 contributions from minority

   Other cash receipts relating to financing

 activities

      Sub-total of cash inflows from

 financing activities

    Cash repayments of borrowings                         265,000,000.00              62,977,252.77

    Cash payments for distribution of

 dividends or profits or settlement of                     60,700,002.00              39,250,545.00

 interest expenses

    Including: Payments for distribution of

 dividends or profits to minority shareholders              6,782,419.71               5,435,603.29

 of subsidiaries

    Other cash payments relating to

 financing activities

  Sub-total of cash outflows from

financing activities

  Net cash flows from financing activities                 75,179,587.16              51,366,767.86

  Other cash receipts relating to financing

activities

 IV. Effect of Foreign Exchange Rate

                                                           -5,331,963.01                -285,263.26

 Changes on Cash and Cash Equivalents

                                                                           The First Quarter Report in 2023

 V. Net Increase in Cash and Cash

 Equivalents

   Add: Opening balance of cash and

 cash equivalents

 VI. Closing Balance of Cash and Cash

 Equivalents

 Legal Representative: LI Yi         Chief Accountant: WANG Yingxia             Person in Charge of the

 Accounting Body: WANG Yingxia

 (I) Description of adjustments in opening balances of line items in financial statements of the year

due to implementation of new accounting standard since 2023

 □ Applicable √ N/A

      Be it hereby announced

                                           Board of Directors of Appotronics Corporation Limited

                                                                   April 28, 2023

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