TCL 科技：2020年第三季度报告全文（英文版）

    TCL科技集团股份有限公司
    
    TCLTechnology Group Corporation
    
    THIRD QUARTERLYREPORT 2020
    
    29 October 2020
    
    Part I Important Notes, Table of Contents and Definitions
    
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    misleading statements or material omissions therein.
    
    All the Company’s directors have attended the Board meeting for the review of this Report.
    
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    fairneafnaccitauladl,eapcacrutmraetneta,nhderceobmypgleutaer. antee that the financial statements carried in this Report
    
    dTihscisrepRaenpcoirets ohrasmbiseuenndeprrsetapnadreindgsinbebtwotehenCthhienetsweo avnedrsiEonnsg,litshhe. CShhoinueldse tvheerrseionbse shanalyl
    
    prevail.
    
    Table of Contents
    
    Part I Important Notes, Table of Contents and Definitions........................................................... 2
    
    Part II Key Corporate Information..................................................................................................5
    
    Part III Management Discussion and Analysis..............................................................................10
    
    Part IV Significant Events............................................................................................................... 17
    
    Part V Financial Statements............................................................................................................29
    
    Definitions
    
                    Term                                       Definition
    The “Company”,the“Group”,“TCL”,“TCL     TCLTechnologyGroupCorporationanditsconsolidatedsubsidiaries,except
    Tech.” or“we”                         wherethecontextotherwiserequires.
    The “CurrentPeriod”                     Theperiodfrom1January2020to30September2020.
    The “ReportingPeriod”                   Theperiodfrom1July2020to30September2020.
    TCL CSOT                           TCLChinaStarOptoelectronicsTechnologyCo.,Ltd.
    Zhonghuan Electronics                    TianjinZhonghuanElectronicsGroupCo.,Ltd.
    Zhonghuan Semiconductor                 TianjinZhonghuanSemiconductorCo.,Ltd.(stockcode:002129.SZ)
    Samsung Display                       SamsungDisplayCo.,Ltd.
    Samsung Suzhou                       SamsungSuzhouLCDCo.,Ltd.
    San’an Semiconductor                    QuanzhouSan’anSemiconductorTechnologyCo.,Ltd.
                                       HighlyInformationIndustryCo.,Ltd.,amajority-ownedsubsidiaryofthe
    Highly                              CompanylistedontheNationalEquitiesExchangeandQuotations(stockcode:
                                       835281)
    Guangdong Juhua                       GuangdongJuhuaPrintedDisplayTechnologyCo.,Ltd.
    China Ray                            GuangzhouChinaRayOptoelectronicMaterialsCo.,Ltd.
                                       ChinaDisplayOptoelectronicsTechnologyHoldingsLimited,amajority-owned
    CDOT                              subsidiaryoftheCompanylistedontheStockExchangeofHongKong(stock
                                       code:00334.HK)
    Educational Web                       TCLEducationalWebLtd.
    Bank ofShanghai                       BankofShanghaiCo.,Ltd.(stockcode:601229.SH)
    712 Corp.                            Tianjin712Communication&BroadcastingCo.,Ltd.(stockcode:603712.SH)
    Fantasia                             FantasiaHoldingsGroupCo.,Limited,alistedcompanyontheStockExchange
                                       ofHongKong(stockcode:01777.HK)
    Admiralty HarbourCapital                 AdmiraltyHarbourCapitalLimited
    China Innovative                       ChinaInnovativeCapitalManagementLimited
    t1 project                            Thegeneration8.5(orG8.5)TFT-LCDproductionlineofTCLCSOT
    t2 project                            Thegeneration8.5(orG8.5)TFT-LCD(includingoxidesemiconductor)
                                       productionlineofTCLCSOT
    t3 project                            Thegeneration6(orG6)LTPS-LCDpanelproductionlineofTCLCSOT
    t4 project                            Thegeneration6(orG6)flexibleLTPS-AMOLEDpanelproductionlineofTCL
                                       CSOT
    t6 project                            Thegeneration11(orG11)newTFT-LCDproductionlineofTCLCSOT
    t7 project                            Thegeneration11(orG11)newultra-high-definition(UHD)TFT-LCDand
                                       AMOLEDproductionlineofTCLCSOT
    
    
    Part II Key Corporate Information
    
    I Key Financial Information
    
    Indicate whether there is any retrospectively restated datum in the table below.
    
    □ Yes ■ No
    
                                          30September2020         31December2019       Change(%)
     Totalassets(RMB)                              200,282,199,399        164,844,884,926          21.50%
     Owners’equityattributabletothelisted                  31,074,758,363         30,111,946,237           3.20%
     company’sshareholders(RMB)
     Sharecapital(share)                              13,519,279,411         13,528,438,719           -0.07%
     Equitypershareattributabletothelisted                       2.2986               2.2258           3.27%
     company’sshareholders(RMB/share)
                                         Q3 2020      YoYchange(%)    Q1-Q32020     YoYchange(%)
     Revenue(RMB)                         19,376,776,395        28.87%    48,709,987,251          -17.18%
     Revenueonthesamebasisafterthespin-off       19,376,776,395        28.87%    48,709,987,251          18.36%
     (RMB)(note)
     EBITDA(RMB)                          4,530,535,012        41.94%    10,673,641,330           -8.21%
     Netprofitattributabletothelistedcompany’s        817,109,760        68.48%    2,025,175,746          -21.42%
     shareholders(RMB)
     Netprofitattributabletothelistedcompany’s
     shareholdersbeforenon-recurringgainsand         678,187,625        168.13%      860,050,472          70.85%
     losses(RMB)
     Netcashgeneratedfrom/usedinoperating         4,523,259,350        210.14%    11,871,070,129          56.01%
     activities(RMB)
     Basicearningspershare(RMB/share)                 0.0632        73.63%         0.1563          -19.68%
     Dilutedearningspershare(RMB/share)               0.0604        68.72%         0.1497          -21.29%
     Weightedaveragereturnonequity(%)                2.66%         1.06%          6.74%           -2.12%
    
    
    Note: In April 2019, the Company completed the handover of assets in a significant spin-off. Therefore, the Q1-Q3 2019 data
    
    included the results of the spun-off assets for January-March 2019 and a gain of RMB1.15 billion from the spin-off. Provided that the
    
    Q1-Q3 2019 data were on the same basis after the spin-off, revenue would be up by 18.4% year-on-year. In 2020, the Company
    
    continued to focus on its core business and maximize shareholder’s value by spinning off the Educational Web business, which
    
    generated a gain of RMB234 million. Provided that the spin-off gains were excluded from both of the Q1-Q3 2020 and Q1-Q3 2019
    
    data, the net profit attributable to the listed company’s shareholders would be up by 28.9% year-on-year on the same basis.
    
    The total share capital at the end of the last trading session before the disclosure of this Report:
    
    Total sharecapitalattheendofthelasttrading                                              13,519,279,411
    session beforethedisclosureofthisReport(share)
    
    
    Fully diluted earnings per share based on the latest total share capital above:
    
    Fully dilutedearningspersharebasedonthelatest                                                 0.1498
    total sharecapitalabove(RMB/share)
    
    
    Non-recurring gains and losses:
    
    Unit: RMB
    
                        Item                           Q1-Q32020                Note
    Gain orlossondisposalofnon-currentassets(inclusiveof                 300,297,646       Notapplicable
    impairment allowancewrite-offs)
    Government grantsthroughprofitorloss(exclusiveof
    government grantsgivenintheCompany’sordinarycourseof               465,617,542       Notapplicable
    business atfixedquotasoramountsasperthegovernment’s
    uniform standards)
    Gain equaltotheamountbywhichinvestmentcostsforthe
    Company toobtainsubsidiaries,associatesandjointventuresare             280,758,994       Notapplicable
    lower thantheCompany’senjoyablefairvalueofidentifiablenet
    assets ofinvesteeswhenmakinginvestments
    Gain orlossonfair-valuechangesinheld-for-tradingand
    derivative financialassetsandliabilities&incomefromdisposal
    of held-for-tradingandderivativefinancialassetsandliabilities              101,008,421       Notapplicable
    and otherinvestmentsindebtobligations(exclusiveofthe
    effective portionofhedgesthatariseintheCompany’sordinary
    course ofbusiness)
    Non-operating incomeandexpenseotherthantheabove                   173,115,293       Notapplicable
    Less: Corporateincometax                                      86,827,078       Notapplicable
        Non-controlling interests(netoftax)                            68,845,544       Notapplicable
    Total                                                   1,165,125,274           --
    
    
    Explanation of why the Company reclassifies as recurrent a non-recurring gain/loss item defined or listed in the Explanatory
    
    Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Non-Recurring Gain/Loss
    
    Items:
    
    □ Applicable ■ Not applicable
    
    IRIepToorttailngNPumerbioedr of Shareholders and Holdings of Top 10 Shareholders at the End of the
    
    1. Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting Rights as well as
    
    Holdings of Top 10 Shareholders
    
    Unit: share
    
    Number ofordinaryshareholdersat                512,782 Numberofpreference                          0
    the period-end                                    shareholderswithresumed
                                                  votingrightsattheperiod-end
                                                  (ifany)
                                         Top10shareholders
       Name of      Natureof     Shareholding   Totalsharesheld Restrictedshares     Sharesinpledgeorfrozen
      shareholder     shareholder     percentage                    held         Status        Shares
    Li Dongsheng   Domesticnatural                                       Putinpledgeby     275,000,000
    and his        person/general            8.57   1,158,599,393    613,931,602 LiDongsheng
    acting-in-concert legalperson                                          Putinpledgeby
    party                                                                           344,899,521JiutianLiancheng
    Huizhou       State-ownedlegal
    Investment     person                 5.50    743,139,840
    Holding Co.,Ltd.
    Hong Kong
    Securities      Foreignlegal             3.11    420,738,484
    Clearing       person
    Company Ltd.
    Tibet Tianfeng
    Enterprise      Domesticgeneral          3.01    407,344,415
    Management Co., legalperson
    Ltd.
    China Securities
    Finance       Domesticgeneral          2.76    373,231,553
    Corporation     legalperson
    Limited
    Central Huijin
    Asset         State-ownedlegal          1.53    206,456,500
    Management Co., person
    Ltd.
    National Social  Fund,wealth
    Security       management             0.95    128,080,487
    Fund-Portfolio   product,etc.
    601
    Star Century    Foreignlegal
    Enterprises     person                 0.67     90,532,347     90,532,347
    Limited
    ICBC Credit
    Suisse Asset    Fund,wealth
    Management Co., management             0.55     74,761,500
    Ltd.－        product,etc.
    Agricultural Bank
    of China－ICBC
    Credit Suisse
    China
    Securities
    Financial Assets
    Management Plan
    China Southern
    Asset
    Management Co.,
    Ltd.－        Fund,wealth
    Agricultural Bank management             0.55     74,761,500
    of China－     product,etc.
    Southern China
    Securities
    Financial Assets
    Management Plan
                                     Top10unrestrictedshareholders
          Nameofshareholder                Unrestrictedsharesheld                  Sharesbytype
                                                                       Type        Shares
    Huizhou InvestmentHoldingCo.,                               743,139,840 RMB-denominate    743,139,840
    Ltd.                                                            dordinarystock
    Li Dongshengandhis                                       544,667,791 RMB-denominate    544,667,791
    acting-in-concert party                                               dordinarystock
    Hong KongSecuritiesClearing                                 420,738,484 RMB-denominate    420,738,484
    Company Ltd.                                                     dordinarystock
    Tibet TianfengEnterprise                                     407,344,415 RMB-denominate    407,344,415
    Management Co.,Ltd.                                               dordinarystock
    China SecuritiesFinance                                     373,231,553 RMB-denominate    373,231,553
    Corporation Limited                                                 dordinarystock
    Central HuijinAssetManagement                               206,456,500 RMB-denominate    206,456,500
    Co., Ltd.                                                        dordinarystock
    National SocialSecurity                                     128,080,487 RMB-denominate    128,080,487
    Fund-Portfolio 601                                                  dordinarystock
    ICBC CreditSuisseAsset
    Management Co.,Ltd.－                                              RMB-denominate
    Agricultural BankofChina－ICBC                               74,761,500 dordinarystock      74,761,500
    Credit SuisseChina  Securities
    Financial AssetsManagementPlan
    China SouthernAssetManagement                               74,761,500 RMB-denominate     74,761,500
    Co., Ltd.－AgriculturalBankof                                         dordinarystock
    China－Southern ChinaSecurities
    Financial AssetsManagementPlan
    Zhong OuAssetManagement－
    Agricultural BankofChina－Zhong                              74,761,500 RMB-denominate     74,761,500
    Ou ChinaSecuritiesFinancialAssets                                      dordinarystock
    Management Plan
                             Beingacting-in-concertpartiesuponthesigningoftheAgreementonActinginConcert,Mr.
    Related oracting-in-concertparties  LiDongshengandXinjiangJiutianLianchengEquityInvestmentPartnership(Limited
    among theshareholdersabove     Partnership)(hereinafterreferredtoas“JiutianLiancheng”)arethebiggestshareholderofthe
                             Companywithatotalof1,158.5994millionshares.
    Top 10shareholdersinvolvedin    Notapplicable
    securities margintrading(ifany)
    
    
    Indicate whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of the Company conducted
    
    any promissory repo during the Reporting Period.
    
    □ Yes ■ No
    
    No such cases in the Reporting Period.
    
    2. Number of Preferred Shareholders and Shareholdings of Top 10 of Them
    
    □Applicable ■ Not applicable
    
    Part III Management Discussion and Analysis
    
    I Overview
    
    The technology and financial sector has suffered from the impact of the further escalated Sino-US
    
    trade war since the beginning of this year. In addition, the global economy was in a slump because
    
    the COVID-19 pandemic has not been eliminated. Due to the effective pandemic control measures
    
    and the "dual circulation" development pattern, which is the mutual promotion of the double cycles
    
    of the domestic and international markets, China has become the only major economy with positive
    
    growth. With the acceleration of the restructuring of the global economic landscape and the
    
    continuous adjustment of the industrial chains, strategic emerging industries such as semi-conductor
    
    materials, new displays technology and integrated circuits in China are entering a new stage of
    
    development. The Company persisted with the established strategies, regarded innovation and
    
    technology as the core driver, as well as maximized the cost efficiency. The Company
    
    continuously created new dynamic for the high-end technology industry and further
    
    promoted the global leading strategies.
    
    In the nine months ended 30 September 2020, on the same basis after the spin-off, the Company
    
    recorded revenue of RMB48.71 billion, up by 18.4% year-on-year, and a net profit attributable to
    
    the listed company’s shareholders of RMB2.03 billion. Excluding the gain from the spin-off, the net
    
    profit attributable to the listed company’s shareholders increased by 28.9% year-on-year on the
    
    same basis. Specifically, the net profit attributable to the listed company’s shareholders was
    
    RMB0.817 billion in the third quarter, up by 68.5% year-on-year.
    
    TCL CSOT reported a revenue of RMB32.38 billion, up by 31.9% year-on-year, due to a lower
    
    average price of major products from the same period of last year; Moreover, the impact on
    
    production and logistics brought by the pandemic resulted in a net profit of RMB566 million, down
    
    by 56.3% year-on-year. Benefited from the improvement in the supply and demand of global
    
    large-size display business, the price of panels in each size stably increased in the third quarter. The
    
    Company continued to promote structural cost reduction and consolidate its leading advantages in
    
    operating efficiency and benefit. Although the depreciation of the third quarter increased by
    
    RMB573 million from the second quarter, after the capacity of new production lines smoothly
    
    climbed to the top, TCL CSOT recorded a net profit of RMB700 million in the third quarter, a
    
    significant increase of RMB659 million from the second quarter and an increase of 151.6%
    
    year-on-year. Meanwhile, the industrial finance & investment and venture capital business recorded
    
    a net profit of RMB785 million.
    
    Semi-conductor display technology and materials is one of the core fundamental industries with
    
    great importance and promising prospects, where Chinese enterprises played a significant role in the
    
    industries. During the Reporting Period, TCL CSOT acquired 60% ownership of the G8.5
    
    production line (t10) of Samsung Suzhou and 100% ownership of the supporting module
    
    factory, and introduced Samsung to be a strategic shareholder of TCLCSOT. Both sides would
    
    coordinate their respective technology, production and market advantages to launch comprehensive
    
    cooperation and form a new ecological alliance. The assets was delivered as scheduled and would
    
    be included into the consolidated financial statements in the first quarter of 2021. Meanwhile, the
    
    China Securities Regulatory Commission approved the Company's acquisition of a 39.95%
    
    minority interest of the t3 production line as well as the capital raising program of RMB2.6 billion
    
    in September. The delivery of asset was progressing. This transaction would further enhance the
    
    profitability attributable to the Company and increase returns for shareholders.
    
    By self-research, cooperation and acquisition, the company improved the ecological system
    
    around printing OLED/QLED, Micro-LED and other new display technologies, as well as
    
    reinforced the technological leading advantages. The Company’s subsidiary, Guangdong Juhua
    
    focused on printing display process by developing key technologies and promoting industrial
    
    application, while China Ray focused on researching new OLED key materials with independent IP.
    
    The patents owned by the Company in the QLED electroluminescent field ranked as top two of the
    
    world. TCL CSOT acquired a strategic stake in JOLED Inc. Through joint R&D and patent
    
    cooperation, the company improved the ecology construction of the printing display industrial chain
    
    from all aspects including materials, equipment, processes and products, so as to accelerate the
    
    industrialization of printing OLED. TCL CSOT and San’an Semiconductor are dedicated to
    
    promoting independent IPs from materials, processes, equipments and production line solutions by
    
    jointly establishing a laboratory focusing on Micro-LED technology.
    
    To meet the requirement of searching growth driver in semiconductor and semiconductor
    
    photovoltaic industry, the company invested in the field of silicon materials, which held a high
    
    position in the upstream of the industry. With the grid parity, new development opportunities
    
    appeared for photovoltaics. Along with the third wave of semiconductor industry relocation and the
    
    industrial restructuring under international political and economic changes, the Company will
    
    continuously lay a solid foundation in high-tech, heavy-asset and long-cycle fields, and develop
    
    competitiveness in basic procedures and key areas such as materials and equipment. During the
    
    Reporting Period, the Company acquired 100% equity of Tianjin Zhonghuan Electronics
    
    Group Co., Ltd. The asset is processing transfer formalities and will be included into the
    
    consolidated financial statements in Q4 2020.
    
    Looking forward to the whole year, although the pandemic has affected the short-term business
    
    performance and there are great uncertainties in global economic growth, the company is confident
    
    to reach the annual business target. Moreover, the company attempts to seize the historic
    
    opportunity of global industrial transformation by taking advantages in management, efficiency,
    
    industrial chain resources and its successful experience of global operation. The company will strive
    
    to promote a global leading position in the fields of semiconductor display and materials industry as
    
    well as semiconductor and semiconductor photovoltaic industry.
    
    II Core Business Review
    
    During the Reporting Period, the business structure of TCL Tech. still consisted of the following
    
    three segments: the semi-conductor display and materials business, the industrial finance &
    
    investment business and the other businesses. The Company has acquired 100% equity of Tianjin
    
    Zhonghuan Electronics Group Co., Ltd. and its statements will be consolidated in Q4 2020, the
    
    business structure of the Company will then be as follows:
    
    TCLTech
    
    Semi-conmdautcetroiraldsisplay & Semi-Sceomndi-uccotnodrupchtoorto&voltaic Induisntrvieasltmfineanntce & Other
    
    TCLCSOT China Ray SeZmhiocnognhduuacntor SeZmhiocnognhduuacntor TCL Financial TCL Capital Highly TPC
    
    Photovoltaic
    
    Juhua CDOT
    
    (I) Semi-conductor Display and Materials Business
    
    Due to impact of the pandemic, the supply and demand in the semiconductor display industry both
    
    shrank, and the price of panels continued to fluctuate at the bottom. Due to recovered demand in
    
    the third quarter as well as the influence of the coming selling season, the price maintained at
    
    a high level, which enhanced the industrial profitability.
    
    From January to September, TCL CSOT recorded product sales area of 21.687 million square
    
    meters, up by 41.7% year-on-year; a revenue of RMB32.38 billion, up by 31.9% year-on-year, and a
    
    net profit of RMB566 million. Specifically, the net profit of the third quarter was RMB700 million,
    
    up by RMB659 million quarter-on-quarter and 151.6% year-on-year.
    
    The large-size panel business maintained leading efficiency and profitability, which results in
    
    a rise to the second place of the global market share of TV panels. Endogenous
    
    capability-building and M&A supported the continual high growth of TCLCSOT.
    
    The production lines of large-size panels operated at full capacity for strong sales, achieving sales
    
    area of 20.71 million square meters, up by 44.9% year-on-year, along with a sales volume of 34.48
    
    million pieces, up by 14.9% year-on-year. TCL CSOT gave full play to advantages of the
    
    high-generation production line in production efficiency in ultra-large sizes and high specifications,
    
    and optimized the product mix. The market share of 55-inch panels ranked the first in the world,
    
    that of 32-inch panels ranked the second, and that of 65-inch and 75-inch panels rose to the third
    
    position. 8K/120Hz product sales grew rapidly. The Company achieved mass production of 75-inch
    
    8K MLED Xingyao Screen, and actively extended business to the commercial display field. The
    
    market share of 86-inch interactive whiteboards ranked second in the world.
    
    Large-size panel business recorded a revenue of RMB20.33 billion, up by 50.9% year-on-year,
    
    maintaining a leading profitability in the industry. TCL CSOT acquired the Suzhou factories of
    
    Samsung Display, which was expected to be consolidated in the first quarter of 2021. Meanwhile,
    
    the t7 production line was about to achieve mass production. According to endogenous
    
    capability-building and M&A, the production capacity and market share of TCL CSOT was
    
    expected to maintain a rapid growth, and the competitiveness of large-size display business would
    
    be continuously enhanced.
    
    The Company drove development of small- and medium-size panel business by technology
    
    innovation, and continuously optimized products and customer structure. High-end notebook
    
    computers and flexible OLED products grew rapidly.
    
    The small- and medium-size panel business recognized sales area of 0.97 million square meters,
    
    down by 3.6% year-on-year; and a revenue of RMB12.05 billion (including CDOT), up by 8.7%
    
    year-on-year.
    
    Module capacity of the t3 production line decreased in the first half due to impact of the pandemic,
    
    but it recovered to full capacity and sales in the third quarter. The Company strengthened the
    
    development of full screen display and in-display fingerprint technology, increased the proportion
    
    of Incell/COF/blind via products, and continuously optimized the product mix. Its market share of
    
    LTPS mobile phone panels maintained the top three position in the world with a recovering
    
    profitability.
    
    The Phase I production capacity and yield rate of the t4 flexible AMOLED production line were
    
    improved as scheduled, and foldable screens and double-curved screens for brand manufacturers
    
    were mass produced and delivered. In addition, the Company continued introducing global leading
    
    brands, and its shipments of OLED mobile phone panels rose to the fourth across the world. For the
    
    t4 production line, the focus was placed on under-display shooting, folding, LTPO and other special
    
    technologies. The DOT and 120Hz products was mass produced through a leading technology in
    
    China. Equipment for Phase II and Phase III was being moved in as planned. A total capacity of
    
    45K/month could be estimated to achieve in 2021.
    
    The Company enhanced the full-life-cycle capability of products, and further enriched the
    
    mix of medium-size products based on existing advantages in LTPS fields in notebook
    
    computers and tablet computers as well as customers’ resources in Esports and IWB. With
    
    existing strategies of medium-size panels and the judgment on large, medium and small size market,
    
    the company promoted technical investment for medium-size products and broadened the high-end
    
    customers during the Reporting Period. In addition, the company grasped the opportunities from the
    
    booming market of special displays for entertainment and Esports, as well as the needs of upgrade
    
    in high-end business notebook computers. The volume shipment of 32-inch curved gaming panel of
    
    TCL CSOT ranked second across the world, and its LTPS notebook computer panel has been
    
    supplied to mass brand customers.
    
    (II) Industrial Finance and Investment Business
    
    TCL’s industrial finance business mainly includes the Group’s finance and the supply chain finance.
    
    The finance team focused on the funding needs of the Group’s key projects, strengthened the active
    
    management of liquidity and currency risk, and gradually satisfied financial needs of the overseas
    
    business. The supply chain finance took full advantage of Internet platform. Jointly with domestic
    
    financial institutions, it continuously provided high quality and convenient receivables financing
    
    services for small and medium enterprises, realizing the sound development of the industry.
    
    TCL Capital seek investment opportunities in key fields of high-tech industries, including new
    
    display technology, semi-conductor industry chain, as well as high end materials and process
    
    equipment. These investments took a balanced approach to promote technology development and
    
    derive economic benefits. By the end of the Reporting Period, the AUM of TCL Capital reached
    
    RMB8, 989 million, and 124 projects were invested cumulatively. Currently, it holds the stake of
    
    CATL, DKEM, Cambricon and some other listed companies, in addition to interests in SenseTime,
    
    Shangtai Tech, ASR Microelectronics, GalaxyCore, etc. As for Admiralty Harbour Capital, it has
    
    issued and underwritten 14 bonds and 5 debt management projects. Its investment banking and asset
    
    management business grew steadily. China Innovative focused in mature companies related to the
    
    Company’s businesses, and it has invested in more than 115 listed companies cumulatively with a
    
    steady growth in performance.
    
    At the end of the Reporting Period, the Company holds a stake of several listed companies directly,
    
    including the 712 Corp. (603712.SH), the Bank of Shanghai (601229.SH) and the Fantasia
    
    Holdings (01777.HK).
    
    Part IV Significant Events
    
    RI eMpaojrotirnCg hPaenrigoeds, oafsMwealilnasIttehmesRienasFoinnsanfocriatlhSetCatheamnegnetss and Financial Indicators within the
    
    1. Balance Sheet Items
    
    Unit: RMB
    
     Balancesheetitems      30September2020    31December2019      Change(%)       ReasonsfortheChanges
     Monetaryassets            12,827,443,241       18,648,184,663           -31.2  Paymentsforinvestments
     Held-for-trading                                                       Increaseininvestmentsin
     financialassets             7,920,821,272        6,074,750,918            30.4  wealthmanagementproducts
                                                                       purchased
     Accountsreceivable         11,284,708,459        8,340,353,992            35.3  Increaseinrevenue
     Prepayments                874,835,005         364,422,948           140.1  Increaseinprepaymentsto
                                                                       suppliers
     Otherreceivables           16,106,570,308        2,750,041,514           485.7  Increaseinreceivablesin
                                                                       relationtoM&Ainvestments
     Loansandadvancesto        1,961,571,208        3,637,768,065           -46.1  Recoveryofloans
     customers
     Othernon-current           3,318,741,915        2,542,689,268            30.5  Increaseindebtinvestments
     financialassets
     Investmentproperty          1,157,774,022          82,272,964          1,307.2  Increaseinconstructionin
                                                                       progresstransferredtothisitem
     Fixedassets              59,542,069,991       45,459,070,330            31.0  Increaseinconstructionin
                                                                       progresstransferredtothisitem
     Long-termprepaid           2,253,426,047        1,567,690,992            43.7  Increaseintheperiod
     expense
     Othernon-currentassets      16,046,365,881        4,250,658,887           277.5  Increaseinprepaymentsfor
                                                                       equipment
     Borrowingsfromcentral                                                  Increaseinborrowingsreceived
     bank                    1,235,104,379         573,222,113           115.5  byTCLFinanceCo.,Ltd.from
                                                                       thecentralbank
     Held-for-trading             482,824,416         188,220,097           156.5  Increaseinfinancialproducts
     financialliabilities
     Derivativefinancial           318,400,408          84,704,591           275.9  Increaseinforwardforex
     liabilities                                                            products
     Contractliabilities            346,106,030                 -              -  Adoptionofthenewaccounting
                                                                       standardgoverningrevenue
     Customerdepositsand        3,339,383,199        1,355,128,509           146.4  Increaseindepositsreceivedby
    
    
    interbank deposits TCL Finance Co., Ltd.
    
     Currentportionof           5,697,042,073        1,691,963,496           236.7  Increaseinthecurrentportionof
     non-currentliabilities                                                    long-termborrowings
     Long-termborrowings       60,621,676,376       38,512,059,200            57.4  Increaseinfinancings
    
    
    2. Income Statement Items
    
    Unit: RMB
    
          Item         Q1-Q32020      Q1-Q32019        Change(%)          ReasonsfortheChanges
    Taxesandlevies         147,380,452       289,281,187            -49.1Thespin-off
    Selling expense         548,204,916      2,582,419,684            -78.8Thespin-off
    Finance costs          1,453,054,866       885,378,869             64.1Increaseinfinancings
    Asset impairmentloss     -708,096,422       -397,698,940             78.0Increaseininventoryvaluation
                                                                allowances
    
    
    3. Cash Flow Statement Items
    
    Unit: RMB
    
              Item             Q1-Q32020      Q1-Q32019      Change(%)      ReasonsfortheChanges
    Net cashgeneratedfrom/usedin                                             Newproductionlinesrunningat
    operating activities              11,871,070,129     7,609,274,189           56.0fullcapacityandincreasein
                                                                      cash asloansandadvances
    Net cashgeneratedfrom/usedin     -40,577,217,778   -26,893,265,344           50.9Increaseininvestment
    investing activities                                                      expenditures
    Net cashgeneratedfrom/usedin      23,485,740,179     9,957,977,427           135.8 Increaseinfinancings
    financing activities
    
    
    II Progress, Influence and Solutions with regard to Significant Events
    
         Summary ofthesignificantevent               Disclosuredate           Indextotherelatedannouncement
    Announcement ontheCompletionofShare             13January2020
    Repurchase &ChangesinShares
    Announcement onChangeoftheCompany
    Name withtheIndustrialandCommercial              7February2020
    Administration andChangeoftheStockName
    Preliminary PlanontheAcquisitionofAssets                                http://www.cninfo.com.cn
    through ShareOffering,ConvertibleCorporate           29April2020
    Bonds OfferingandCashPaymentandRaising
    the MatchingFunds
    Announcements onparticipatinginthepublic   24June2020,16July2020,22July2020,
    acquisition ofthe100%equityinterestsin     11September2020and28September2020
    Zhonghuan Group
    Report ontheAcquisitionofAssetsthrough
    Share Offering,ConvertibleCorporateBonds    29August 2020and17September2020
    Offering andCashPaymentandRaisingthe
    Matching Funds(Draft)(Revised)
    Reminder ofPostponedRe-electionofthe
    Board ofDirectorsandtheSupervisory                29August2020
    Committee
    Announcement onAdjustmenttotheLineof            29August2020
    Guarantee forSubsidiary
    Announcement ontheAcquisitionofa60%
    Interest inSamsungSuzhouLCDCo.,Ltd.and          29August2020
    of the100%InterestofSamsungDisplay
    Suzhou Co.,Ltd.
    Announcement onUnconditionalApprovalby
    the M&AandRestructuringCommitteeofthe
    CSRC oftheAcquisitionofAssetsthrough
    Share Offering,ConvertibleCorporateBonds          18September2020
    Offering andCashPaymentandRaisingthe
    Matching Funds&ResumptionofShare
    Trading
    
    
    Progress of any share repurchase:
    
    It is the key operational philosophy and mission of the Company to create value for and grow with the shareholders. In order to
    
    effectively protect shareholders’ interests and enhance shareholder value, the Company convened the 14th Meeting of the 6th Board
    
    of Directors on 10 January 2019, at which the Proposal on the Repurchase of Certain Public Shares was approved. The Report on the
    
    Repurchase of Certain Public Shares was disclosed on 14 February 2019. In view of the trends on the secondary market of stocks, the
    
    Company convened the 15th Meeting of the 6th Board of Directors on 19 March 2019, at which the Proposal on the Adjustment to
    
    the Upper Limit of the Share Repurchase Price. As such, the upper limit of the share repurchase price was adjusted from
    
    RMB3.80/share to RMB5.00/share. The Company implemented the share repurchase from 14 February 2019. Up to 10 January 2020,
    
    the Company has cumulatively repurchased 565,333,922 shares (or 4.18% of the Company’s total share capital) in its special
    
    securities account for repurchases by way of centralized bidding, with the highest trading price being RMB4.17/share, the lowest
    
    trading price being RMB3.13/share, and the average trading price being RMB3.42/share. The total transaction amount was
    
    RMB1,933.5965 million (exclusive of trading fees). The share repurchase has been implemented in a process in compliance with the
    
    applicable regulations including the Specific Rules of the Shenzhen Stock Exchange for Share Repurchase by Listed Companies. The
    
    actual number of shares repurchased, repurchase price and amount used were in compliance with the repurchase plan approved at the
    
    14th Meeting of the 6th Board of Directors, with no difference with the disclosed Report on Share Repurchase. As such, the
    
    Company has completed the share repurchase as per the repurchase plan that it disclosed.
    
    Progress on reducing the repurchased shares by means of centralized bidding:
    
    □Applicable ■ Not applicable
    
    AIIcIquCiormerms, ittmheenCtsomthpaatntyheItsCeolfmopranOy’tsheArctPuaarltiCeso,nFtraoillleedr, toShFaruelhfiollldoenrs,TRimeleatedduriPnagrtitehse,
    
    Reporting Period
    
    □Applicable ■ Not applicable
    
    No such cases in the Reporting Period.
    
    IV Financial Investments
    
    1. Securities Investments
    
    Unit: RMB’0,000
    
                                             Gain/lo  Cumula
                                             ss on    tive
                                Meas          fair-val   fair-val  Purchasedin            Gain/loss                Fu
     Securi  Secur   Security    Initial    urem  Beginning    ue     ue      the     Soldinthe    inthe    Ending   Accou  ndi
      ty    ity    name    investmen   ent    carrying   changes  changes   Reporting    Reporting   Reporting   carrying   nting   ng
      type   code            tcost    meth   amount    inthe   recorde    Period      Period     Period    amount    title   sou
                                od           Reporti    din                                           rce
                                              ng    equity
                                             Period
                Agricultur
                alBankof
     Bank’         China                                                                       Held-f
       s         “Huilifen                                                                      or-trad  Sel
     wealth   Not     g”             Fair                                                           ing   f-f
     manag  appli  Corporate    145,000  value        -    1,180      -     145,000         -     1,180   146,180  financ  un
     ement  cable  Customiz                                                                        ial   de
     produ        edRMB                                                                       assets   d
      ct         Structured
                 Deposit
                 Product
     Bank’        Guangdon                                                                      Held-f  Sel
       s    Not   gBranch           Fair                                                          or-trad  f-f
     wealth  appli   ofChina    120,000  value        -     250      -     120,000         -      250   120,250   ing   un
     manag  cable  Constructi                                                                      financ  de
     ement        onBank                                                                        ial    d
     produ        -“Ganyua                                                                       assets
      ct         n-Jinbao
                DJ”RMB
                 Wealth
                Managem
                  ent
                 Product
                No. 819
                 of2020
                Changjian
                  g
                Securities
                -Chaoyue                                                                      Held-f
     Asset         Wealth                                                                       or-trad  Sel
     manag   Not   Managem           Fair                                                           ing   f-f
     ement   appli    ent      50,000  value        -     213      -     50,000         -      213    50,213  financ  un
      plan  cable   Lexiang                                                                        ial   de
                 1-Day                                                                        assets   d
                Collective
                 Asset
                Managem
                ent Plan
                 Huaxia
                 Bank
     Bank’        Enterprise
       s         Growing                                                                       Held-f  Sel
     wealth   Not   Income                                                                       or-trad  f-f
     manag  appli  Conservat    40,000   Fair        -     600      -     40,000         -      600    40,600   ing   un
     ement  cable    ive            value                                                         financ  de
     produ        Customiz                                                                        ial    d
      ct         edWealth                                                                      assets
                Managem
                  ent
                 Product
     Bank’        Bankof
       s          China                                                                       Held-f  Sel
     wealth   Not    Steady                                                                       or-trad  f-f
     manag  appli   Wealth     40,000   Fair        -     537      -     40,000         -      537    40,537   ing   un
     ement  cable  Managem          value                                                         financ  de
     produ          ent                                                                         ial    d
      ct         Plan-Zhih                                                                       assets
                ui Series
     Bank’   Not    China     34,950  Cost        -      -      -     34,950         -      816    35,766  Other  Sel
                                                                                            curren  f-f
       s   appli  Everbrigh                                                                        t    un
     wealth  cable   tBank                                                                       assets   de
     manag       Corporate                                                                             d
     ement        Structured
     produ        Deposits
      ct
                 China
                 Fortune
                Internatio                                                                      Held-f
                nal Trust                                                                       or-trad  Sel
     Trust   Not   Co.,Ltd.           Fair                                                           ing   f-f
      plan   appli    CICC     30,000  value        -     889      -     30,000         -      889    30,889  financ  un
           cable   Xintou                                                                        ial   de
                Collective                                                                      assets   d
                 Capital
                TrustPlan
                 No. 2
                Minmetal
                  s
                Trust-Hen                                                                      Held-f
                gxinRixin                                                                      or-trad  Sel
     Trust   Not    No.            Fair                                                           ing   f-f
      plan   appli  17-Steady    26,000  value        -     157      -     26,000         -      157    26,157  financ  un
           cable  Investmen                                                                       ial   de
                  t                                                                          assets   d
                Collective
                 Capital
                TrustPlan
                Zhonghai                                                                       Held-f
                Trust-Sea                                                                      or-trad  Sel
     Trust   Not    Gull            Fair                                                           ing   f-f
      plan   appli  Collective    20,000  value        -     601      -     20,000         -      601    20,601  financ  un
           cable   Capital                                                                        ial   de
                TrustPlan                                                                      assets   d
                 No. 3
                                                                                            Held-f  Sel
     Monet   Not    Bosera                                                                       or-trad  f-f
      ary   appli   Waifu     50,000   Fair        -     66      -     50,000      30,000      145    20,145   ing   un
      fund  cable  Monetary          value                                                         financ  de
                 Fund                                                                         ial    d
                                                                                            assets
     Othersecuritiesinvestments    1,693,215   --     616,094   -2,319   -2,020    1,074,683    1,378,011    35,103   321,479   --    --
     heldattheperiod-end
     Total                2,249,165   --     616,094    2,175   -2,020    1,630,633    1,408,011    40,491   852,818   --    --
     Disclosuredateoftheboard
     announcementapprovingthe                                    20March2019
     securitiesinvestments
     Disclosuredateofthegeneral
     meetingannouncement                                        10April2019
     approvingthesecurities
     investments(ifany)
    
    
    2. Investments in Derivative Financial Instruments
    
    Funding source             Mostlyforeign-currencyrevenue
    Legal mattersinvolved(if      Notapplicable
    applicable)
    Disclosure dateoftheboard
    announcement approvingthe    28April 2018
    derivative investments(ifany)
    Disclosure dateofthegeneral
    meeting announcementapproving Notapplicable
    the derivativeinvestments(ifany)
                           In ordertoeffectivelymanagetheexchangeandinterestraterisksofforeigncurrencyassets,
                           liabilities andcashflows,theCompany,afterfullyanalyzingthemarkettrendandpredictingthe
                           operation (includingordersandcapitalplans),adoptsforwardforeignexchangecontracts,options
                           and interestrateswapstoavoidfutureexchangerateandinterestraterisks.Asitsbusinessscale
                           changes subsequently,theCompanywilladjusttheexchangerateriskmanagementstrategy
                           according totheactualmarketconditionsandbusinessplans.
    Analysis ofrisksandcontrol    Riskanalysis:
    measures associatedwith       1.Marketrisk:thefinancialderivativesbusinesscarriedoutbytheGroupbelongstohedgingand
    derivative investmentsheldin    tradingbusinessrelatedtomainbusinessoperations,andthereisamarketriskoflossduetothe
    Reporting Period(includingbut  fluctuationofunderlyinginterestandexchangerates,whichleadtothefluctuationofpricesof
    not limitedtomarketrisk,      financialderivatives;
    liquidity risk,creditrisk,
    operational risk,legalrisk,etc.)  2.Liquidityrisk:thederivativesbusinesscarriedoutbytheGroupisanover-the-counter
                           transaction operatedbyafinancialinstitution,andthereisariskoflossduetopayingfeestothe
                           bank fortheoperationsofeveninguporsellingthederivativesbelowthebuyingprices;
                           3. Performancerisk:theGroupconductsthederivativebusinessbasedonrollingbudgetsforrisk
                           management, andthereisariskofperformancefailureduetodeviationbetweentheactual
                           operating resultsandbudgets;
                           4. Otherrisks:inthecaseofspecificbusinessoperations,iftheoperatorfailstofinishthe
                           prescribed proceduresforreportorapproval,orfailstorecordthefinancialderivativebusiness
                           information accurately,timelyandcompletely,itmayresultinlossofderivativebusinessortrading
                           opportunities. Moreover,ifthetradingoperatorfailstofullyunderstandthetermsoftransaction
                           contracts orproductinformation,theGroupwillfacethelegalrisksandtransactionlosses
                           therefrom.
                           Measures takenforriskcontrol:
                           1. Basicmanagementprinciples:theGroupstrictlyfollowsthehedgingprincipleandthemain
                           purpose oflockingcostsandavoidingrisks.Itisrequiredthatthefinancialderivativesbusinessto
                           be carriedoutmatchesthevariety,size,directionanddurationofspotgoods,andnospeculative
                           trading shouldbeinvolved.Intheselectionofhedginginstruments,onlysimplefinancial
                           derivatives thatarecloselyrelatedtothemainbusinessoperationandmeettherequirementsof
                           hedge accountingtreatmentshouldbeselected,andavoidcomplexbusinessthatexceedsthe
                           prescribed businessscopeorisdifficulttorecognizeintermsofriskandpricing;
                           2. TheGrouphasformulatedaspecialriskmanagementsystemtailoredtotheriskcharacteristics
                           of thefinancialderivativesbusiness,coveringallkeyaspectssuchaspre-emptiveprevention,
                           in-process monitoringandpost-processing.Professionalpersonnelarerationallyarrangedfor
                           investment decision-making,businessoperationsandriskcontrol.Investmentparticipantsare
                           required tofullyunderstandtherisksoffinancialderivativesinvestmentandstrictlyimplementthe
                           business operationsandriskmanagementsystemsofderivatives.Beforestartingthederivatives
                           business, theholdingcompanymustsubmittothemanagementdepartmentoftheGroupdetailed
                           business reportsincludingitsinternalapproval,mainproductterms,operationalnecessity,
                           preparations, riskanalysis,riskmanagementstrategy,fairvalueanalysisandaccountingmethods,
                           and specialsummaryreportsonbusinessoperated.Operationscanbeimplementedonlyafter
                           getting opinionsfromtheprofessionaldepartmentoftheGroup;
                           3. Relevantdepartmentsshouldtrackthechangesintheopenmarketpriceorfairvalueoffinancial
                           derivatives, timelyassesstheriskexposurechangesofinvestedfinancialderivatives,andmake
                           reports totheboardofdirectorsonbusinessdevelopment;
                           4. Whenthecombinedimpairmentofthefairvalueofderivativesandchangesinthevalueofthe
                           assets (ifany)usedforriskhedgingbytheGroupresultsinatotallossorfloatinglossamounting
                           to 10%oftherecentlyauditednetassetsoftheCompany,andtheabsoluteamountexceedsRMB10
                           million, theGroupwilldiscloseitinatimelymanner.
    Changes inmarketpricesorfair  Withtherapidexpansionofoverseassales,theCompanykeepsfollowingtheaboverulesinthe
    value ofderivativeinvestmentsin operationofforwardforeignexchangecontracts,interestrateswapcontractsandfuturescontracts
    Reporting Period(fairvalue     toavoidandhedgeforeignexchangerisksarisingfromoperationandfinancing.Itsawanetgainof
    analysis shouldinclude        RMB74.51millionfortheReportingPeriod.Thefairvalueofderivativesisdeterminedby
    measurement methodandrelated  real-timequotedpriceoftheforeignexchangemarket,basedonthedifferencebetweenthe
    assumptions andparameters)    contractualpriceandtheforwardexchangeratequotedimmediatelyintheforeignexchangemarket
                           on thebalancesheetdate.
    Major changesinaccounting
    policies andspecificaccounting  Nosignificantchange
    principles adoptedforderivative
    investmentsinReportingPeriod
    comparedtolastreportingperiod
                           In viewofthefactthatcertainrawmaterialsofthecorebusinessoftheCompanyarepurchased
                           overseas, awiderangeofsettlementcurrenciesisinvolved.TheCompanyreducesexchangelosses
                           and lockstransactioncostsbyreasonablefinancialderivatives,whichhelpstoreduceriskcontrol
                           costs andimprovecompanycompetitiveness.RisksareeffectivelycontrolledastheCompanyhas
                           taken seriesofmeasuressuchasconductingarigorousinternalevaluationfortheoperationof
    Opinionofindependentdirectors  financialderivativesbusiness,establishingacorrespondingregulatorymechanism,formulating
    onderivativeinvestmentsandrisk reasonableaccountingpoliciesandspecificaccountingprinciples,settinglimitsforriskexposure
    control                   mdearnivaagteivmeesnbt,uasinndesospoerfatthinegCsoimmpplaenyfinisanacsioalundderfiivnaatnivceisa.lTagheenctownittrhacgtionogdacgreendtitfostrafnidnianngc.ial
                           WebelievethatthefinancialderivativestransactionscarriedoutbytheCompanyinthenine
                           months ended30September2020arecloselyrelatedtothedailyoperationneedsoftheCompany
                           with controllablerisks.Thebusinessisinlinewiththeinterestsofminorityshareholdersofthe
                           company andtherelevantlawsandregulations.
    
    
    Positions of derivative investments at the period-end:
    
    Unit: RMB’0,000Ending contractual
    
                           Beginningamount        Endingamount      Gain/loss     amountas%ofthe
        Typeofcontract                                                in       Company’sendingnet
                                                                 Reporting         assets
                        Contractual    Actual   Contractual    Actual     Period    Contractual    Actual
                          amount     amount     amount     amount               amount     amount
     1.Forwardforexcontracts    1,279,232     36,087    2,512,274     89,823                 37.47      1.34
     2.Interestrateswaps         528,098     15,843     819,255     24,578      7,451        12.22      0.37
     3.Currencyswaps          215,565     14,399     344,523     17,226                  5.14      0.26
            Total           2,022,895     66,329    3,676,052    131,627      7,451        54.82      1.96
    
    
    V Progress of Projects Financed with Raised Funds
    
    □Applicable ■ Not applicable
    
    VI 2020 Annual Operating Performance Forecast
    
    Warning of a forecast loss on or a forecast significant year-on-year change in the 2020 annual net profit, as well as explanation of
    
    why:
    
    □ Applicable ■ Not applicable
    
    VII Significant Contracts Arising from the Company’s Ordinary Course of Business
    
    □Applicable ■ Not applicable
    
    VIII Cash Entrusted for Wealth Management
    
    Unit: RMB’0,000
    
           Type          Fundingsource          Amount          Undueamount     Unrecoveredoverdue
                                                                                amount
        Bank’swealth         Self-funded                 540,983            384,596                0
      managementproduct
     Securitiesfirm’swealth      Self-funded                  115,000             50,213                0
      managementproduct
         Trust plan          Self-funded                 126,000             98,179                0
           Other           Self-funded                 181,485             52,026                0
    Total                                            963,468            585,014                0
    
    
    High-risk wealth management transactions with a significant single amount, low liquidity and no principal protection:
    
    □ Applicable ■ Not applicable
    
    IX Irregularities in the Provision of Guarantees
    
    □Applicable ■ Not applicable
    
    PXaOrtciecsupfoartiNonono-fOtpheerCatoinmgpPanuyrp’soCseaspital by the Controlling Shareholder or any of Its Related
    
    □Applicable ■ Not applicable
    
    No such cases in the Reporting Period.
    
    IXnIteCrvoimewmsuRneicceaitvioendsduwriitnhg tthhee RInepveosrttminegnPt eCrioomdmunity such as Researches, Inquiries and
    
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                Company                             Management,   Inquiredabout  2020-001onInvestor
    15 January2020 Conference    Byvisit       Institutional    Essence      theCompany’s  RelationsActivitieson
                Roomin                  investor       Securities,     business      15January2020
                Shenzhen                             OrientalAlpha  development   disclosedbythe
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                                                   Rosefinch Fund,             cndated16January
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                                                   China Asset
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                                                   Management,               2020-002onInvestor
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                Company                             EssenceFund,  Inquiredabout  16January2020
    16 January2020 Conference    Byvisit       Institutional    Essence      theCompany’s  disclosedbythe
                Roomin                  investor       Securities,Sense business      Companyon
                Shenzhen                             Fund,Boyuan   development   http://www.cninfo.com.
                                                   Fund, JTJ                 cndated17January
                                                   Investment,                2020
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                                                   Bosera Funds,
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                                                   Asset        Inquiredabout  LogSheetNo.
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    31 March2020  Conference    Byvisit       Institutional    GFFund,     development   31March2020
                Roomin                  investor       DachengFund,  planningofTCL disclosedbythe
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                                                   Minsheng Royal CSOT        http://www.cninfo.com.
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    29 April2020   -           Byphone     Institutional    MorganStanley, performanceand 29April 2020disclosed
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                                                   UG, Essence   Tech.        cndated7May2020
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    Part V Financial Statements
    
    I Financial Statements
    
    1. Consolidated Balance Sheet
    
    Prepared by TCL Technology Group Corporation
    
    Unit: RMB
    
                Item                     30September2020                 31December2019
    Current assets:
      Monetaryassets                                12,827,443,241.00                  18,648,184,663.00
      Settlementreserve
      Loanstootherbanksandfinancial
    institutions
      Held-for-tradingfinancialassets                      7,920,821,272.00                   6,074,750,918.00
      Derivativefinancialassets                           378,239,337.00                    159,035,592.00
      Notesreceivable                                   2,800,162.00                    228,941,977.00
      Accountsreceivable                             11,284,708,459.00                  8,340,353,992.00
      Receivablesfinancing                               74,424,300.00
      Prepayments                                    874,835,005.00                    364,422,948.00
      Premiumsreceivable
      Reinsurancereceivables
      Receivablereinsurancecontract
    reserve
      Otherreceivables                               16,106,570,308.00                   2,750,041,514.00
        Including:Interestreceivable
               Dividendsreceivable                                                     5,771,104.00
      Financialassetspurchasedunder
    resale agreements
      Inventories                                    5,270,225,811.00                  5,677,963,123.00
      Contractassets
      Assetsheldforsale
      Currentportionofnon-currentassets
      Othercurrentassets                              7,238,202,237.00                   5,911,827,639.00
    Total currentassets                                61,978,270,132.00                  48,155,522,366.00
    Non-current assets:
      Loansandadvancestocustomers                     1,961,571,208.00                   3,637,768,065.00
      Debtinvestments                                 120,768,132.00                     20,373,264.00
      Otherdebtinvestments
      Long-termreceivables
      Long-termequityinvestments                       20,293,408,531.00                  17,194,284,162.00
      Investmentsinotherequity                           202,636,394.00                    279,883,515.00
    instruments
      Othernon-currentfinancialassets                     3,318,741,915.00                   2,542,689,268.00
      Investmentproperty                              1,157,774,022.00                     82,272,964.00
      Fixedassets                                   59,542,069,991.00                  45,459,070,330.00
      Constructioninprogress                          24,985,366,572.00                  33,578,289,802.00
      Productivelivingassets
      Oilandgasassets
      Right-of-useassets
      Intangibleassets                                 6,453,132,676.00                   5,684,584,119.00
      Developmentcosts                               1,176,484,042.00                   1,548,470,972.00
      Goodwill                                        2,452,186.00                     2,452,186.00
      Long-termprepaidexpense                         2,253,426,047.00                   1,567,690,992.00
      Deferredincometaxassets                           789,731,670.00                    840,874,034.00
      Othernon-currentassets                           16,046,365,881.00                   4,250,658,887.00
    Total non-currentassets                            138,303,929,267.00                 116,689,362,560.00
    Total assets                                    200,282,199,399.00                 164,844,884,926.00
    Current liabilities:
      Short-termborrowings                            11,857,441,092.00                  12,069,657,099.00
      Borrowingsfromthecentralbank                     1,235,104,379.00                    573,222,113.00
      Loansfromotherbanksandfinancial
    institutions
      Held-for-tradingfinancialliabilities                     482,824,416.00                    188,220,097.00
      Derivativefinancialliabilities                         318,400,408.00                     84,704,591.00
      Notespayable                                  2,201,076,330.00                   1,720,401,552.00
      Accountspayable                               12,070,105,238.00                  11,549,133,141.00
      Advancesfromcustomers                              173,642.00                    141,748,956.00
      Contractliabilities                                346,106,030.00
      Financialassetssoldunder                            50,072,917.00
    repurchase agreements
      Customerdepositsanddepositsfrom                   3,339,383,199.00                   1,355,128,509.00
    other banksandfinancialinstitutions
      Payablesforactingtradingof
    securities
      Payablesforunderwritingof
    securities
      Employeebenefitspayable                          1,197,125,944.00                   1,094,216,685.00
      Taxesandleviespayable                            414,939,297.00                    226,806,037.00
      Otherpayables                                 15,454,442,183.00                  12,293,565,901.00
        Including:Interestpayable
               Dividendspayable                         1,293,126.00                     11,058,225.00
      Feesandcommissionspayable
      Reinsurancepayables
      Liabilitiesdirectlyassociatedwith
    assets heldforsale
      Currentportionofnon-current                       5,697,042,073.00                   1,691,963,496.00
    liabilities
      Othercurrentliabilities                             200,648,800.00                     69,021,962.00
    Total currentliabilities                             54,864,885,948.00                  43,057,790,139.00
    Non-current liabilities:
      Insurancecontractreserve
      Long-termborrowings                            60,621,676,376.00                  38,512,059,200.00
      Bondspayable                                 15,170,111,167.00                  16,479,085,461.00
        Including:Preferenceshares
               Perpetualbonds
      Leaseliabilities
      Long-termpayables                                24,230,000.00                     24,206,057.00
      Long-termemployeebenefits                          22,180,974.00                     23,017,619.00
    payable
      Provisions
      Deferredincome                                1,475,493,665.00                   1,912,421,056.00
      Deferredincometaxliabilities                       1,051,903,905.00                    952,677,822.00
      Othernon-currentliabilities                                                           482,232.00
    Total non-currentliabilities                          78,365,596,087.00                  57,903,949,447.00
    Total liabilities                                  133,230,482,035.00                 100,961,739,586.00
    Owners’ equity:
      Sharecapital                                  13,519,279,411.00                  13,528,438,719.00
      Otherequityinstruments
        Including:Preferenceshares
               Perpetualbonds
      Capitalreserves                                 5,693,980,327.00                   5,716,667,384.00
      Less:Treasurystock                              1,913,028,859.00                   1,952,956,751.00
      Othercomprehensiveincome                         -325,376,763.00                   -534,081,855.00
      Specificreserve
      Surplusreserves                                 2,238,368,089.00                   2,238,368,089.00
      Generalreserve                                     360,766.00                       360,766.00
      Retainedearnings                               11,861,175,392.00                  11,115,149,885.00
    Total equityattributabletoownersof                    31,074,758,363.00                  30,111,946,237.00
    the Companyastheparent
    Non-controlling interests                            35,976,959,001.00                  33,771,199,103.00
    Total owners’equity                               67,051,717,364.00                  63,883,145,340.00
    Total liabilitiesandowners’equity                     200,282,199,399.00                 164,844,884,926.00
    
    
    Legal representative: Li Dongsheng Person-in-charge of financial affairs: Du Juan
    
    Person-in-charge of the financial department: Xi Wenbo
    
    2. Balance Sheet of the Company as the Parent
    
    Unit: RMB
    
                Item                     30September2020                 31December2019
    Current assets:
      Monetaryassets                                 4,827,670,877.00                   3,966,899,016.00
      Held-for-tradingfinancialassets                      3,207,379,027.00                   2,969,105,570.00
      Derivativefinancialassets
      Notesreceivable                                   1,000,000.00                     22,514,486.00
      Accountsreceivable                               256,524,188.00                    445,089,599.00
      Receivablesfinancing
      Prepayments                                    106,850,302.00                     97,127,177.00
      Otherreceivables                               35,561,803,323.00                  17,129,473,443.00
        Including:Interestreceivable
               Dividendsreceivable                                                   4,211,824,115.00
      Inventories                                       8,719,048.00                     14,868,714.00
      Contractassets
      Assetsheldforsale
      Currentportionofnon-currentassets
      Othercurrentassets                                28,718,538.00                     6,471,074.00
    Total currentassets                                43,998,665,303.00                  24,651,549,079.00
    Non-current assets:
      Debtinvestments
      Otherdebtinvestments
      Long-termreceivables
      Long-termequityinvestments                       45,978,186,585.00                  39,297,272,437.00
      Investmentsinotherequity                            15,000,000.00                     15,000,000.00
    instruments
      Othernon-currentfinancialassets                     1,494,462,399.00                   1,540,912,643.00
      Investmentproperty                                89,670,494.00                     92,622,685.00
      Fixedassets                                     46,318,858.00                     54,238,373.00
      Constructioninprogress                             35,890,080.00                     1,241,308.00
      Productivelivingassets
      Oilandgasassets
      Right-of-useassets
      Intangibleassets                                   17,842,117.00                     19,144,884.00
      Developmentcosts
      Goodwill
      Long-termprepaidexpense                           446,149,090.00                    454,968,882.00
      Deferredincometaxassets
      Othernon-currentassets
    Total non-currentassets                             48,123,519,623.00                  41,475,401,212.00
    Total assets                                     92,122,184,926.00                  66,126,950,291.00
    Current liabilities:
      Short-termborrowings                            6,919,214,444.00                   6,484,481,271.00
      Held-for-tradingfinancialliabilities
      Derivativefinancialliabilities                          15,016,970.00                     5,980,760.00
      Notespayable                                                                  30,282,528.00
      Accountspayable                                 186,541,476.00                    424,224,599.00
      Advancesfromcustomers                                                          17,470,841.00
      Contractliabilities                                 13,659,035.00
      Employeebenefitspayable                           160,578,430.00                    125,095,153.00
      Taxesandleviespayable                             10,439,721.00                     10,354,865.00
      Otherpayables                                 22,166,518,250.00                   9,347,609,813.00
        Including:Interestpayable
               Dividendspayable                         1,292,429.00                     11,057,515.00
      Liabilitiesdirectlyassociatedwith
    assets heldforsale
      Currentportionofnon-current                       5,270,725,300.00                    847,326,922.00
    liabilities
      Othercurrentliabilities                               3,614,791.00
    Total currentliabilities                             34,746,308,417.00                  17,292,826,752.00
    Non-current liabilities:
      Long-termborrowings                            13,943,234,875.00                   2,110,000,000.00
      Bondspayable                                 13,135,868,376.00                  16,479,085,461.00
        Including:Preferenceshares
               Perpetualbonds
      Leaseliabilities
      Long-termpayables
      Long-termemployeebenefits                          22,180,974.00                     23,017,619.00
    payable
      Provisions
      Deferredincome                                  39,334,600.00                     51,561,600.00
      Deferredincometaxliabilities
      Othernon-currentliabilities
    Total non-currentliabilities                          27,140,618,825.00                  18,663,664,680.00
    Total liabilities                                  61,886,927,242.00                  35,956,491,432.00
    Owners’ equity:
      Sharecapital                                  13,519,279,411.00                  13,528,438,719.00
      Otherequityinstruments
        Including:Preferenceshares
               Perpetualbonds
      Capitalreserves                                 8,365,272,080.00                   8,382,776,032.00
      Less:Treasurystock                              1,913,028,859.00                   1,952,956,751.00
      Othercomprehensiveincome                         129,770,077.00                     56,064,337.00
      Specificreserve
      Surplusreserves                                 2,036,303,650.00                   2,036,303,650.00
      Retainedearnings                                8,097,661,325.00                   8,119,832,872.00
    Total owners’equity                               30,235,257,684.00                  30,170,458,859.00
    Total liabilitiesandowners’equity                      92,122,184,926.00                  66,126,950,291.00
    
    
    3. Consolidated Income Statement for Q3
    
    Unit: RMB
    
                 Item                        Q32020                        Q32019
    1. Totalrevenues                                 19,414,257,022.00                  15,043,817,358.00
      Including:Revenue                              19,376,776,395.00                  15,036,052,357.00
             Interest income                            37,480,627.00                     7,765,001.00
             Insurance premiumincome
             Fee andcommission
    income
    2. Costsandexpenses                              18,961,057,366.00                  15,408,639,989.00
      Including:Costofsales                           16,766,859,872.00                  13,859,643,355.00
             Interest expense                             9,690,038.00                     4,817,412.00
             Fee andcommission
    expense
             Surrenders
             Net insuranceclaimspaid
             Net amountprovidedas
    insurance contractreserve
             Expenditure onpolicy
    dividends
             Reinsurance premium
    expense
             Taxes andlevies                           60,096,496.00                    48,091,768.00
             Selling expense                           223,539,527.00                    199,683,347.00
             Administrative expense                      445,564,745.00                    293,283,969.00
             R&D expense                            918,274,102.00                    722,455,220.00
             Finance costs                             537,032,586.00                    280,664,918.00
               Including:Interest                        530,891,328.00                    434,347,881.00
    expense
                      Interest                         46,883,545.00                    106,746,690.00
    income
    Add: Otherincome                                  302,109,828.00                    517,506,256.00
        Return oninvestment(“-”forloss)                    611,022,869.00                   576,410,283.00
          Including:Shareofprofitorloss                   412,163,854.00                    396,531,183.00
    of jointventuresandassociates
            Incomefromthe
    derecognition offinancialassetsat
    amortized cost(“-”forloss)
        Exchange gain(“-”forloss)                          -367,349.00                      -299,877.00
        Net gainonexposurehedges(“-”
    for loss)
        Gain onchangesinfairvalue(“-”                    180,440,583.00                    64,950,705.00
    for loss)
        Credit impairmentloss(“-”for                        8,198,256.00                     -1,054,559.00
    loss)
        Asset impairmentloss(“-”forloss)                   -379,414,395.00                    -83,358,305.00
        Asset disposalincome(“-”for                         -388,292.00                     5,599,397.00
    loss)
    3. Operatingprofit(“-”forloss)                        1,174,801,156.00                    714,931,269.00
    Add: Non-operatingincome                              4,449,340.00                    81,998,416.00
    Less: Non-operatingexpense                            12,507,266.00                     4,649,448.00
    4. Grossprofit(“-”forloss)                           1,166,743,230.00                    792,280,237.00
    Less: Incometaxexpense                              174,162,360.00                    41,928,606.00
    5. Netprofit(“-”fornetloss)                           992,580,870.00                    750,351,631.00
      5.1Byoperatingcontinuity
        5.1.1Netprofitfromcontinuing                      992,580,870.00                    750,351,631.00
    operations (“-”fornetloss)
        5.1.2Netprofitfromdiscontinued
    operations (“-”fornetloss)
      5.2Byownership
        5.2.1Netprofitattributableto                        817,109,760.00                    484,981,289.00
    owners oftheCompanyastheparent
        5.2.1Netprofitattributableto                        175,471,110.00                   265,370,342.00
    non-controlling interests
    6. Othercomprehensiveincome,netof                     273,560,957.00                    -26,068,932.00
    tax
      AttributabletoownersoftheCompany                   289,165,857.00                    -26,691,643.00
    as theparent
        6.1Itemsthatwillnotbe                           -12,918,845.00                    19,081,757.00
    reclassified toprofitorloss
         6.1.1 Changescausedby
    remeasurements ondefinedbenefit
    schemes
         6.1.2 Othercomprehensive
    income thatwillnotbereclassifiedto                         641,118.00                    26,584,508.00
    profit orlossundertheequitymethod
         6.1.3 Changesinthefairvalueof                    -13,559,963.00                    12,454,793.00
    investments inotherequityinstruments
         6.1.4 Changesinthefairvalue
    arising fromchangesinowncreditrisk
         6.1.5 Other                                                                -19,957,544.00
        6.2Itemsthatwillbereclassifiedto                    302,084,702.00                    -45,773,400.00
    profit orloss
         6.2.1 Othercomprehensive
    income thatwillbereclassifiedtoprofit                     14,189,009.00                   -179,106,860.00
    or lossundertheequitymethod
         6.2.2 Changesinthefairvalueof
    other debtinvestments
         6.2.3 Othercomprehensive
    income arisingfromthereclassification                       636,831.00
    of financialassets
         6.2.4 Creditimpairment
    allowance forotherdebtinvestments
         6.2.5 Reserveforcashflow                        83,569,874.00                    -19,415,646.00
    hedges
         6.2.6 Differencesarisingfromthe
    translation offoreign                                 203,688,988.00                    151,851,168.00
    currency-denominated financial
    statements
         6.2.7 Other                                                                   897,938.00
      Attributabletonon-controlling                         -15,604,900.00                      622,711.00
    interests
    7. Totalcomprehensiveincome                         1,266,141,827.00                    724,282,699.00
      AttributabletoownersoftheCompany                  1,106,275,617.00                    458,289,646.00
    as theparent
      Attributabletonon-controlling                         159,866,210.00                    265,993,053.00
    interests
    8. Earningspershare
      8.1Basicearningspershare                                0.0632                         0.0364
      8.2Dilutedearningspershare                               0.0604                         0.0358
    
    
    Legal representative: Li Dongsheng Person-in-charge of financial affairs: Du Juan
    
    Person-in-charge of the financial department: Xi Wenbo
    
    4. Income Statement of the Company as the Parent for Q3
    
    Unit: RMB
    
                Item                        Q32020                        Q32019
    1. Revenue                                       351,681,400.00                    543,963,613.00
    Less: Costofsales                                  273,170,479.00                    497,046,360.00
        Taxesandlevies                                   828,636.00                       340,606.00
        Sellingexpense                                    223,167.00                     5,534,527.00
        Administrativeexpense                           132,624,426.00                     80,248,940.00
        R&Dexpense                                   35,323,026.00                     34,971,218.00
        Financecosts                                  337,959,065.00                    236,701,397.00
         Including: Interestexpense                        563,888,687.00                    333,209,614.00
                 Interestincome                        241,280,876.00                     95,255,830.00
    Add: Otherincome
        Return oninvestment(“-”for                       350,268,142.00                    361,094,314.00
    loss)
          Including:Shareofprofitor                      257,155,500.00                    304,497,022.00
    loss ofjointventuresandassociates
            Incomefromthe
    derecognition offinancialassetsat
    amortized cost(“-”forloss)
        Net gainonexposurehedges(“-”
    for loss)
        Gain onchangesinfairvalue(“-”                      3,488,019.00                    116,206,626.00
    for loss)
        Credit impairmentloss(“-”for                          -1,099.00                        -3,895.00
    loss)
        Asset impairmentloss(“-”for
    loss)
        Asset disposalincome(“-”for                          88,496.00                    256,624,954.00
    loss)
    2. Operatingprofit(“-”forloss)                          -74,603,841.00                    423,042,564.00
    Add: Non-operatingincome                             -1,771,503.00                     67,299,176.00
    Less: Non-operatingexpense                              909,455.00                     1,762,001.00
    3. Grossprofit(“-”forloss)                            -77,284,799.00                    488,579,739.00
    Less: Incometaxexpense
    4. Netprofit(“-”fornetloss)                           -77,284,799.00                    488,579,739.00
      4.1Netprofitfromcontinuing                         -77,284,799.00                    488,579,739.00
    operations (“-”fornetloss)
      4.2Netprofitfromdiscontinued
    operations (“-”fornetloss)
    5. Othercomprehensiveincome,netof                      8,987,973.00                     49,539,268.00
    tax
      5.1Itemsthatwillnotbereclassified                       641,118.00                     20,973,409.00
    to profitorloss
        5.1.1Changescausedby
    remeasurements ondefinedbenefit
    schemes
        5.1.2Othercomprehensiveincome
    that willnotbereclassifiedtoprofitor                        641,118.00                     20,973,409.00
    loss undertheequitymethod
        5.1.3Changesinthefairvalueof
    investments inotherequityinstruments
        5.1.4Changesinthefairvalue
    arising fromchangesinowncreditrisk
        5.1.5Other
      5.2Itemsthatwillbereclassifiedto                       8,346,855.00                     28,565,859.00
    profit orloss
        5.2.1Othercomprehensiveincome
    that willbereclassifiedtoprofitorloss                      8,346,855.00                     28,379,224.00
    under theequitymethod
        5.2.2Changesinthefairvalueof
    other debtinvestments
        5.2.3Othercomprehensiveincome
    arising fromthereclassificationof
    financial assets
        5.2.4Creditimpairmentallowance
    for otherdebtinvestments
        5.2.5Reserveforcashflowhedges
        5.2.6Differencesarisingfromthe
    translation offoreign
    currency-denominated financial
    statements
        5.2.7Other                                                                    186,635.00
    6. Totalcomprehensiveincome                          -68,296,826.00                    538,119,007.00
    7. Earningspershare
       7.1Basicearningspershare                                 N/A                           N/A
       7.2Dilutedearningspershare                                N/A                           N/A
    
    
    5. Consolidated Income Statement for Q1~Q3
    
    Unit: RMB
    
                 Item                      Q1~Q32020                     Q1~Q32019
    1. Totalrevenues                                 48,833,159,938.00                  58,904,374,914.00
      Including:Revenue                              48,709,987,251.00                  58,817,666,092.00
             Interest income                           123,172,687.00                    86,708,822.00
             Insurance premiumincome
             Fee andcommission
    income
    2. Costsandexpenses                              49,698,704,134.00                  59,149,896,807.00
      Including:Costofsales                           43,507,752,953.00                  51,216,771,448.00
             Interest expense                            25,967,987.00                    13,129,607.00
             Fee andcommission
    expense
             Surrenders
             Net insuranceclaimspaid
             Net amountprovidedas
    insurance contractreserve
             Expenditure onpolicy
    dividends
             Reinsurance premium
    expense
             Taxes andlevies                           147,380,452.00                    289,281,187.00
             Selling expense                           548,204,916.00                  2,582,419,684.00
             Administrative expense                     1,215,567,756.00                  1,559,794,269.00
             R&D expense                           2,800,775,204.00                  2,603,121,743.00
             Finance costs                           1,453,054,866.00                    885,378,869.00
               Including:Interest                       1,663,333,175.00                  1,531,338,739.00
    expense
                      Interest                        297,750,444.00                    346,654,556.00
    income
    Add: Otherincome                                 1,254,526,018.00                  1,439,033,065.00
        Return oninvestment(“-”forloss)                  1,951,687,393.00                  2,582,149,708.00
          Including:Shareofprofitorloss                  1,293,666,489.00                  1,050,534,922.00
    of jointventuresandassociates
            Incomefromthe
    derecognition offinancialassetsat
    amortized cost(“-”forloss)
        Exchange gain(“-”forloss)                           321,274.00                    -11,364,959.00
        Net gainonexposurehedges(“-”
    for loss)
        Gain onchangesinfairvalue(“-”                    294,474,510.00                    360,480,571.00
    for loss)
        Credit impairmentloss(“-”for                        7,074,256.00                    -21,601,368.00
    loss)
        Asset impairmentloss(“-”forloss)                   -708,096,422.00                   -397,698,940.00
        Asset disposalincome(“-”for                         931,334.00                     2,171,307.00
    loss)
    3. Operatingprofit(“-”forloss)                        1,935,374,167.00                  3,707,647,491.00
    Add: Non-operatingincome                            496,388,240.00                    128,111,130.00
    Less: Non-operatingexpense                            31,308,402.00                    23,468,759.00
    4. Grossprofit(“-”forloss)                           2,400,454,005.00                  3,812,289,862.00
    Less: Incometaxexpense                              338,749,095.00                    324,875,555.00
    5. Netprofit(“-”fornetloss)                          2,061,704,910.00                  3,487,414,307.00
      5.1Byoperatingcontinuity
        5.1.1Netprofitfromcontinuing                     2,061,704,910.00                  2,155,327,307.00
    operations (“-”fornetloss)
        5.1.2Netprofitfromdiscontinued                                                 1,332,087,000.00
    operations (“-”fornetloss)
      5.2Byownership
        5.2.1Netprofitattributableto                      2,025,175,746.00                  2,577,329,981.00
    owners oftheCompanyastheparent
        5.2.1Netprofitattributableto                        36,529,164.00                    910,084,326.00
    non-controlling interests
    6. Othercomprehensiveincome,netof                     184,621,267.00                    486,458,995.00
    tax
      AttributabletoownersoftheCompany                   220,697,688.00                    322,801,953.00
    as theparent
        6.1Itemsthatwillnotbe                           -26,301,283.00                    10,569,895.00
    reclassified toprofitorloss
         6.1.1 Changescausedby
    remeasurements ondefinedbenefit
    schemes
         6.1.2 Othercomprehensive
    income thatwillnotbereclassifiedto                       -5,592,197.00                    26,584,508.00
    profit orlossundertheequitymethod
         6.1.3 Changesinthefairvalueof                    -20,709,086.00                    -15,116,675.00
    investments inotherequityinstruments
         6.1.4 Changesinthefairvalue
    arising fromchangesinowncreditrisk
         6.1.5 Other                                                                  -897,938.00
        6.2Itemsthatwillbereclassifiedto                    246,998,971.00                    312,232,058.00
    profit orloss
         6.2.1 Othercomprehensive
    income thatwillbereclassifiedtoprofit                     78,939,921.00                   -148,175,755.00
    or lossundertheequitymethod
         6.2.2 Changesinthefairvalueof
    other debtinvestments
         6.2.3 Othercomprehensive
    income arisingfromthereclassification
    of financialassets
         6.2.4 Creditimpairment
    allowance forotherdebtinvestments
         6.2.5 Reserveforcashflow                        48,139,564.00                    -81,314,957.00
    hedges
         6.2.6 Differencesarisingfromthe
    translation offoreign                                 119,919,486.00                   541,722,770.00
    currency-denominated financial
    statements
         6.2.7 Other
      Attributabletonon-controlling                         -36,076,421.00                    163,657,042.00
    interests
    7. Totalcomprehensiveincome                         2,246,326,177.00                  3,973,873,302.00
      AttributabletoownersoftheCompany                  2,245,873,434.00                  2,900,131,934.00
    as theparent
      Attributabletonon-controlling                            452,743.00                  1,073,741,368.00
    interests
    8. Earningspershare
      8.1Basicearningspershare                                0.1563                         0.1946
      8.2Dilutedearningspershare                               0.1497                         0.1902
    
    
    Legal representative: Li Dongsheng Person-in-charge of financial affairs: Du Juan
    
    Person-in-charge of the financial department: Xi Wenbo
    
    6. Income Statement of the Company as the Parent for Q1~Q3
    
    Unit: RMB
    
                Item                       Q1~Q32020                     Q1~Q32019
    1. Revenue                                       838,064,997.00                   1,307,562,446.00
    Less: Costofsales                                  657,228,381.00                   1,147,964,483.00
        Taxesandlevies                                  4,850,677.00                     9,260,334.00
        Sellingexpense                                 12,141,079.00                     19,930,919.00
        Administrativeexpense                           274,612,165.00                    241,010,707.00
        R&Dexpense                                   86,941,389.00                     80,232,047.00
        Financecosts                                  881,790,014.00                    650,227,534.00
         Including: Interestexpense                      1,408,282,484.00                   1,009,268,066.00
                 Interestincome                        545,183,243.00                    396,745,068.00
    Add: Otherincome                                  15,329,412.00                     4,958,600.00
        Return oninvestment(“-”for                      1,742,123,364.00                   1,103,949,851.00
    loss)
          Including:Shareofprofitor                      874,371,626.00                    887,726,773.00
    loss ofjointventuresandassociates
            Incomefromthe
    derecognition offinancialassetsat
    amortized cost(“-”forloss)
        Net gainonexposurehedges(“-”
    for loss)
        Gain onchangesinfairvalue(“-”                    102,312,826.00                     44,716,834.00
    for loss)
        Credit impairmentloss(“-”for                         599,982.00                     2,741,266.00
    loss)
        Asset impairmentloss(“-”for
    loss)
        Asset disposalincome(“-”for                          88,496.00                    256,615,165.00
    loss)
    2. Operatingprofit(“-”forloss)                         780,955,372.00                    571,918,138.00
    Add: Non-operatingincome                            484,516,543.00                     77,307,037.00
    Less: Non-operatingexpense                             8,488,739.00                     9,065,602.00
    3. Grossprofit(“-”forloss)                           1,256,983,176.00                    640,159,573.00
    Less: Incometaxexpense
    4. Netprofit(“-”fornetloss)                          1,256,983,176.00                    640,159,573.00
      4.1Netprofitfromcontinuing                        1,256,983,176.00                    640,159,573.00
    operations (“-”fornetloss)
      4.2Netprofitfromdiscontinued
    operations (“-”fornetloss)
    5. Othercomprehensiveincome,netof                      73,705,740.00                     81,669,317.00
    tax
      5.1Itemsthatwillnotbereclassified                      -5,592,197.00                     20,973,409.00
    to profitorloss
        5.1.1Changescausedby
    remeasurements ondefinedbenefit
    schemes
        5.1.2Othercomprehensiveincome
    that willnotbereclassifiedtoprofitor                      -5,592,197.00                     20,973,409.00
    loss undertheequitymethod
        5.1.3Changesinthefairvalueof
    investments inotherequityinstruments
        5.1.4Changesinthefairvalue
    arising fromchangesinowncreditrisk
        5.1.5Other
      5.2Itemsthatwillbereclassifiedto                      79,297,937.00                     60,695,908.00
    profit orloss
        5.2.1Othercomprehensiveincome
    that willbereclassifiedtoprofitorloss                     79,297,937.00                     60,509,273.00
    under theequitymethod
        5.2.2Changesinthefairvalueof
    other debtinvestments
        5.2.3Othercomprehensiveincome
    arising fromthereclassificationof
    financial assets
        5.2.4Creditimpairmentallowance
    for otherdebtinvestments
        5.2.5Reserveforcashflowhedges
        5.2.6Differencesarisingfromthe
    translation offoreign
    currency-denominated financial
    statements
        5.2.7Other                                                                    186,635.00
    6. Totalcomprehensiveincome                         1,330,688,916.00                    721,828,890.00
    7. Earningspershare
       7.1Basicearningspershare                                 N/A                           N/A
       7.2Dilutedearningspershare                                N/A                           N/A
    
    
    7. Consolidated Cash Flow Statement for Q1~Q3
    
    Unit: RMB
    
                Item                       Q1~Q32020                     Q1~Q32019
    1. Cashflowsfromoperatingactivities:
      Proceedsfromsaleofcommodities                   50,348,052,437.00                  62,445,844,833.00
    and renderingofservices
      Netincreaseincustomerdepositsand
    deposits fromotherbanksandfinancial                   1,984,254,690.00                   1,726,469,676.00
    institutions
      Netincreaseinborrowingsfromthe                     661,882,266.00                     90,420,078.00
    central bank
      Netincreaseinloansfromother
    financial institutions
      Premiumsreceivedonoriginal
    insurance contracts
      Netproceedsfromreinsurance
      Netincreaseindepositsand
    investments ofpolicyholders
      Interest,feesandcommissions                         123,172,687.00                     86,708,822.00
    received
      Netincreaseinloansfromother
    banks andfinancialinstitutions
      Netincreaseinproceedsfrom
    repurchase transactions
      Netproceedsfromactingtradingof
    securities
      Taxandlevyrebates                              2,691,374,733.00                   2,937,257,381.00
      Cashgeneratedfromotheroperating                   1,704,768,084.00                   1,928,746,345.00
    activities
    Subtotal ofcashgeneratedfrom                       57,513,504,897.00                  69,215,447,135.00
    operating activities
      Paymentsforcommoditiesand                      36,638,895,339.00                  47,132,428,452.00
    services
      Netincreaseinloansandadvancesto                    -991,814,418.00                   3,849,847,076.00
    customers
      Netincreaseindepositsinthecentral                    -284,795,549.00                   -273,067,081.00
    bank andotherbanksandfinancial
    institutions
      Paymentsforclaimsonoriginal
    insurance contracts
      Netincreaseinloanstootherbanks
    and financialinstitutions
      Interest,feesandcommissionspaid
      Policydividendspaid
      Cashpaidtoandforemployees                       2,985,796,906.00                   3,548,355,254.00
      Taxesandleviespaid                             3,682,068,200.00                   3,627,716,700.00
      Cashusedinotheroperating                         3,612,284,290.00                   3,720,892,545.00
    activities
    Subtotal ofcashusedinoperating                      45,642,434,768.00                  61,606,172,946.00
    activities
    Net cashgeneratedfrom/usedin                       11,871,070,129.00                  7,609,274,189.00
    operating activities
    2. Cashflowsfrominvestingactivities:
      Proceedsfromdisinvestment                        17,115,227,387.00                  18,373,451,069.00
      Returnoninvestment                               783,085,375.00                    730,526,027.00
      Netproceedsfromthedisposalof
    fixed assets,intangibleassetsandother                       148,840.00                     92,766,770.00
    long-lived assets
      Netproceedsfromthedisposalof                      303,139,290.00                    863,813,211.00
    subsidiaries andotherbusinessunits
      Cashgeneratedfromotherinvesting
    activities
    Subtotal ofcashgeneratedfrom                       18,201,600,892.00                  20,060,557,077.00
    investing activities
      Paymentsfortheacquisitionoffixed
    assets, intangibleassetsandother                      23,959,069,555.00                  14,853,883,306.00
    long-lived assets
      Paymentsforinvestments                          34,796,469,202.00                  24,810,844,947.00
      Netincreaseinpledgedloansgranted
      Netpaymentsfortheacquisitionof                                                   170,197,901.00
    subsidiaries andotherbusinessunits
      Cashusedinotherinvesting                           23,279,913.00                   7,118,896,267.00
    activities
    Subtotal ofcashusedininvesting                      58,778,818,670.00                  46,953,822,421.00
    activities
    Net cashgeneratedfrom/usedin                      -40,577,217,778.00                 -26,893,265,344.00
    investing activities
    3. Cashflowsfromfinancingactivities:
      Capitalcontributionsreceived                        3,262,240,000.00                   7,530,780,247.00
        Including:Capitalcontributionsby                   3,262,240,000.00                   7,523,571,607.00
    non-controlling intereststosubsidiaries
      Borrowingsreceived                             53,060,270,869.00                  30,186,401,095.00
      Cashgeneratedfromotherfinancing                     473,470,318.00                   2,017,417,200.00
    activities
    Subtotal ofcashgeneratedfrom                       56,795,981,187.00                  39,734,598,542.00
    financing activities
      Repaymentofborrowings                         28,146,415,143.00                  23,925,281,321.00
      Interestanddividendspaid                          4,080,360,106.00                   3,700,800,263.00
        Including:Dividendspaidby                        279,523,652.00                     99,072,668.00
    subsidiaries tonon-controllinginterests
      Cashusedinotherfinancing                         1,083,465,759.00                   2,150,539,531.00
    activities
    Subtotal ofcashusedinfinancing                      33,310,241,008.00                  29,776,621,115.00
    activities
    Net cashgeneratedfrom/usedin                       23,485,740,179.00                   9,957,977,427.00
    financing activities
    4. Effectofforeignexchangerates                        -46,170,424.00                    657,452,489.00
    changes oncashandcashequivalents
    5. Netincreaseincashandcash                        -5,266,577,894.00                  -8,668,561,239.00
    equivalents
    Add: Cashandcashequivalents,                       17,637,742,929.00                  25,702,383,482.00
    beginning oftheperiod
    6. Cashandcashequivalents,endofthe                  12,371,165,035.00                  17,033,822,243.00
    period
    
    
    8. Cash Flow Statement of the Company as the Parent for Q1~Q3
    
    Unit: RMB
    
                Item                       Q1~Q32020                     Q1~Q32019
    1. Cashflowsfromoperatingactivities:
      Proceedsfromsaleofcommodities                      940,689,494.00                   1,143,838,588.00
    and renderingofservices
      Taxandlevyrebates                                 1,073,352.00                       690,755.00
      Cashgeneratedfromotheroperating                   5,024,481,872.00                  14,276,992,714.00
    activities
    Subtotal ofcashgeneratedfrom                        5,966,244,718.00                  15,421,522,057.00
    operating activities
      Paymentsforcommoditiesand                        911,465,646.00                  1,229,934,222.00
    services
      Cashpaidtoandforemployees                        136,915,723.00                    120,421,860.00
      Taxesandleviespaid                               21,333,420.00                     53,164,105.00
      Cashusedinotheroperating                         1,310,184,966.00                   1,161,090,996.00
    activities
    Subtotal ofcashusedinoperating                       2,379,899,755.00                   2,564,611,183.00
    activities
    Net cashgeneratedfrom/usedin                        3,586,344,963.00                  12,856,910,874.00
    operating activities
    2. Cashflowsfrominvestingactivities:
      Proceedsfromdisinvestment                        7,079,430,025.00                  13,841,885,978.00
      Returnoninvestment                             5,373,342,218.00                    638,304,881.00
      Netproceedsfromthedisposalof
    fixed assets,intangibleassetsandother                          760.00                       141,657.00
    long-lived assets
      Netproceedsfromthedisposalof
    subsidiaries andotherbusinessunits
      Cashgeneratedfromotherinvesting
    activities
    Subtotal ofcashgeneratedfrom                       12,452,773,003.00                  14,480,332,516.00
    investing activities
      Paymentsfortheacquisitionoffixed
    assets, intangibleassetsandother                         33,750,534.00                     3,836,282.00
    long-lived assets
      Paymentsforinvestments                          26,261,636,831.00                  12,209,066,918.00
      Netpaymentsfortheacquisitionof
    subsidiaries andotherbusinessunits
      Cashusedinotherinvesting                           23,279,913.00
    activities
    Subtotal ofcashusedininvesting                      26,318,667,278.00                  12,212,903,200.00
    activities
    Net cashgeneratedfrom/usedin                      -13,865,894,275.00                   2,267,429,316.00
    investing activities
    3. Cashflowsfromfinancingactivities:
      Capitalcontributionsreceived                                                         7,208,640.00
      Borrowingsreceived                             33,049,034,080.00                   9,058,956,000.00
      Cashgeneratedfromotherfinancing                     60,300,000.00                   2,000,000,000.00
    activities
    Subtotal ofcashgeneratedfrom                       33,109,334,080.00                  11,066,164,640.00
    financing activities
      Repaymentofborrowings                         19,697,628,200.00                  12,740,956,000.00
      Interestanddividendspaid                          2,189,458,151.00                   2,202,303,594.00
      Cashusedinotherfinancing                           77,117,687.00                  1,837,149,002.00
    activities
    Subtotal ofcashusedinfinancing                      21,964,204,038.00                  16,780,408,596.00
    activities
    Net cashgeneratedfrom/usedin                       11,145,130,042.00                  -5,714,243,956.00
    financing activities
    4. Effectofforeignexchangerates                        -12,865,485.00                    -27,037,253.00
    changes oncashandcashequivalents
    5. Netincreaseincashandcash                         852,715,245.00                   9,383,058,981.00
    equivalents
    Add: Cashandcashequivalents,                        3,941,090,221.00                   1,328,680,629.00
    beginning oftheperiod
    6. Cashandcashequivalents,endofthe                   4,793,805,466.00                  10,711,739,610.00
    period
    
    
    II Adjustments to the Financial Statements
    
    1. Adjustments to the Financial Statements at the Beginning of the First Execution Year (2020) of the New
    
    Accounting Standards Governing Revenue and Leases
    
    Consolidated balance sheet:
    
    Unit: RMB
    
             Item             31December2019           1January2020              Adjustment
    Current assets:
      Monetaryassets                 18,648,184,663.00          18,648,184,663.00
      Settlementreserve
      Loanstootherbanksand
    financial institutions
      Held-for-tradingfinancial            6,074,750,918.00           6,074,750,918.00
    assets
      Derivativefinancialassets             159,035,592.00            159,035,592.00
      Notesreceivable                   228,941,977.00            228,941,977.00
      Accountsreceivable                8,340,353,992.00           8,340,353,992.00
      Receivablesfinancing
      Prepayments                     364,422,948.00            364,422,948.00
      Premiumsreceivable
      Reinsurancereceivables
      Receivablereinsurance
    contract reserve
      Otherreceivables                 2,750,041,514.00           2,750,041,514.00
        Including:Interest
    receivable
               Dividends                5,771,104.00              5,771,104.00
    receivable
      Financialassetspurchased
    under resaleagreements
      Inventories                     5,677,963,123.00           5,677,963,123.00
      Contractassets
      Assetsheldforsale
      Currentportionof
    non-current assets
      Othercurrentassets                5,911,827,639.00           5,911,827,639.00
    Total currentassets                 48,155,522,366.00          48,155,522,366.00
    Non-current assets:
      Loansandadvancesto              3,637,768,065.00           3,637,768,065.00
    customers
      Debtinvestments                   20,373,264.00             20,373,264.00
      Otherdebtinvestments
      Long-termreceivables
      Long-termequity                17,194,284,162.00          17,194,284,162.00
    investments
      Investmentsinotherequity            279,883,515.00            279,883,515.00
    instruments
      Othernon-currentfinancial           2,542,689,268.00           2,542,689,268.00
    assets
      Investmentproperty                  82,272,964.00             82,272,964.00
      Fixedassets                    45,459,070,330.00          45,459,070,330.00
      Constructioninprogress            33,578,289,802.00          33,578,289,802.00
      Productivelivingassets
      Oilandgasassets
      Right-of-useassets
      Intangibleassets                  5,684,584,119.00           5,684,584,119.00
      Developmentcosts                1,548,470,972.00           1,548,470,972.00
      Goodwill                         2,452,186.00              2,452,186.00
      Long-termprepaid                1,567,690,992.00           1,567,690,992.00
    expense
      Deferredincometaxassets            840,874,034.00            840,874,034.00
      Othernon-currentassets             4,250,658,887.00           4,250,658,887.00
    Total non-currentassets             116,689,362,560.00         116,689,362,560.00
    Total assets                     164,844,884,926.00         164,844,884,926.00
    Current liabilities:
      Short-termborrowings             12,069,657,099.00          12,069,657,099.00
      Borrowingsfromthe                573,222,113.00            573,222,113.00
    central bank
      Loansfromotherbanks
    and financialinstitutions
      Held-for-tradingfinancial             188,220,097.00            188,220,097.00
    liabilities
      Derivativefinancial                  84,704,591.00             84,704,591.00
    liabilities
      Notespayable                   1,720,401,552.00           1,720,401,552.00
      Accountspayable                11,549,133,141.00          11,549,133,141.00
      Advancesfromcustomers             141,748,956.00              5,499,574.00            -136,249,382.00
      Contractliabilities                                        133,818,206.00            133,818,206.00
      Financialassetssoldunder
    repurchase agreements
      Customerdepositsand
    deposits fromotherbanks             1,355,128,509.00           1,355,128,509.00
    and financialinstitutions
      Payablesforactingtrading
    of securities
      Payablesforunderwriting
    of securities
      Employeebenefitspayable           1,094,216,685.00           1,094,216,685.00
      Taxesandleviespayable              226,806,037.00            226,806,037.00
      Otherpayables                  12,293,565,901.00          12,293,565,901.00
        Including:Interest
    payable
               Dividends               11,058,225.00             11,058,225.00
    payable
      Feesandcommissions
    payable
      Reinsurancepayables
      Liabilitiesdirectly
    associated withassetsheld
    for sale
      Currentportionof                 1,691,963,496.00           1,691,963,496.00
    non-current liabilities
      Othercurrentliabilities                69,021,962.00             71,453,138.00              2,431,176.00
    Total currentliabilities               43,057,790,139.00          43,057,790,139.00
    Non-current liabilities:
      Insurancecontractreserve
      Long-termborrowings             38,512,059,200.00          38,512,059,200.00
      Bondspayable                  16,479,085,461.00          16,479,085,461.00
        Including:Preference
    shares
               Perpetual
    bonds
      Leaseliabilities
      Long-termpayables                  24,206,057.00             24,206,057.00
      Long-termemployee                 23,017,619.00             23,017,619.00
    benefits payable
      Provisions
      Deferredincome                  1,912,421,056.00           1,912,421,056.00
      Deferredincometax                 952,677,822.00            952,677,822.00
    liabilities
      Othernon-current                     482,232.00               482,232.00
    liabilities
    Total non-currentliabilities            57,903,949,447.00          57,903,949,447.00
    Total liabilities                   100,961,739,586.00         100,961,739,586.00
    Owners’ equity:
      Sharecapital                   13,528,438,719.00          13,528,438,719.00
      Otherequityinstruments
        Including:Preference
    shares
               Perpetual
    bonds
      Capitalreserves                  5,716,667,384.00           5,716,667,384.00
      Less:Treasurystock               1,952,956,751.00           1,952,956,751.00
      Othercomprehensive               -534,081,855.00            -534,081,855.00
    income
      Specificreserve
      Surplusreserves                  2,238,368,089.00           2,238,368,089.00
      Generalreserve                       360,766.00               360,766.00
      Retainedearnings                11,115,149,885.00          11,115,149,885.00
    Total equityattributableto
    owners oftheCompanyas            30,111,946,237.00          30,111,946,237.00
    the parent
    Non-controlling interests             33,771,199,103.00          33,771,199,103.00
    Total owners’equity                63,883,145,340.00          63,883,145,340.00
    Total liabilitiesandowners’          164,844,884,926.00         164,844,884,926.00
    equity
    
    
    Balance sheet of the Company as the parent:
    
    Unit: RMB
    
             Item             31December2019           1January2020              Adjustment
    Current assets:
      Monetaryassets                  3,966,899,016.00           3,966,899,016.00
      Held-for-tradingfinancial            2,969,105,570.00           2,969,105,570.00
    assets
      Derivativefinancialassets
      Notesreceivable                    22,514,486.00             22,514,486.00
      Accountsreceivable                 445,089,599.00            445,089,599.00
      Receivablesfinancing
      Prepayments                      97,127,177.00             97,127,177.00
      Otherreceivables                17,129,473,443.00          17,129,473,443.00
        Including:Interest
    receivable
               Dividends             4,211,824,115.00           4,211,824,115.00
    receivable
      Inventories                       14,868,714.00             14,868,714.00
      Contractassets
      Assetsheldforsale
      Currentportionof
    non-current assets
      Othercurrentassets                   6,471,074.00              6,471,074.00
    Total currentassets                 24,651,549,079.00          24,651,549,079.00
    Non-current assets:
      Debtinvestments
      Otherdebtinvestments
      Long-termreceivables
      Long-termequity                39,297,272,437.00          39,297,272,437.00
    investments
      Investmentsinotherequity             15,000,000.00             15,000,000.00
    instruments
      Othernon-currentfinancial           1,540,912,643.00           1,540,912,643.00
    assets
      Investmentproperty                  92,622,685.00             92,622,685.00
      Fixedassets                       54,238,373.00             54,238,373.00
      Constructioninprogress                1,241,308.00              1,241,308.00
      Productivelivingassets
      Oilandgasassets
      Right-of-useassets
      Intangibleassets                    19,144,884.00             19,144,884.00
      Developmentcosts
      Goodwill
      Long-termprepaid                  454,968,882.00            454,968,882.00
    expense
      Deferredincometaxassets
      Othernon-currentassets
    Total non-currentassets              41,475,401,212.00          41,475,401,212.00
    Total assets                      66,126,950,291.00          66,126,950,291.00
    Current liabilities:
      Short-termborrowings              6,484,481,271.00           6,484,481,271.00
      Held-for-tradingfinancial
    liabilities
      Derivativefinancial                   5,980,760.00              5,980,760.00
    liabilities
      Notespayable                      30,282,528.00             30,282,528.00
      Accountspayable                  424,224,599.00            424,224,599.00
      Advancesfromcustomers              17,470,841.00                80,718.00            -17,390,123.00
      Contractliabilities                                         17,390,123.00             17,390,123.00
      Employeebenefitspayable            125,095,153.00            125,095,153.00
      Taxesandleviespayable               10,354,865.00             10,354,865.00
      Otherpayables                   9,347,609,813.00           9,347,609,813.00
        Including:Interest
    payable
               Dividends               11,057,515.00             11,057,515.00
    payable
      Liabilitiesdirectly
    associated withassetsheld
    for sale
      Currentportionof                  847,326,922.00            847,326,922.00
    non-current liabilities
      Othercurrentliabilities
    Total currentliabilities               17,292,826,752.00          17,292,826,752.00
    Non-current liabilities:
      Long-termborrowings              2,110,000,000.00           2,110,000,000.00
      Bondspayable                  16,479,085,461.00          16,479,085,461.00
        Including:Preference
    shares
               Perpetual
    bonds
      Leaseliabilities
      Long-termpayables
      Long-termemployee                 23,017,619.00             23,017,619.00
    benefits payable
      Provisions
      Deferredincome                    51,561,600.00             51,561,600.00
      Deferredincometax
    liabilities
      Othernon-current
    liabilities
    Total non-currentliabilities            18,663,664,680.00          18,663,664,680.00
    Total liabilities                    35,956,491,432.00          35,956,491,432.00
    Owners’ equity:
      Sharecapital                   13,528,438,719.00          13,528,438,719.00
      Otherequityinstruments
        Including:Preference
    shares
               Perpetual
    bonds
      Capitalreserves                  8,382,776,032.00           8,382,776,032.00
      Less:Treasurystock               1,952,956,751.00           1,952,956,751.00
      Othercomprehensive                 56,064,337.00             56,064,337.00
    income
      Specificreserve
      Surplusreserves                  2,036,303,650.00           2,036,303,650.00
      Retainedearnings                 8,119,832,872.00           8,119,832,872.00
    Total owners’equity                30,170,458,859.00          30,170,458,859.00
    Total liabilitiesandowners’           66,126,950,291.00          66,126,950,291.00
    equity
    
    
    2. Retrospective Adjustments to the Comparative Data of Prior Periods due to the First Execution in 2020
    
    of the New Accounting Standards Governing Revenue and Leases
    
    The Company has adopted since 1 January 2020 the Accounting Standard No. 14 for Business
    
    Enterprises-Revenue revised by the Ministry of Finance in 2017.
    
    As required by the new revenue standard, retained earnings and other relevant financial statement items at the
    
    beginning of the period when the new revenue standard was first adopted (1 January 2020) should be adjusted
    
    according to the cumulative effects arising from the first adoption of the new revenue standard, and data of the
    
    comparable periods should not be adjusted.
    
    When executing the new revenue standard, the Company considered adjustments only for the cumulative effects
    
    in respect of the outstanding contracts on the date of the standard’s first adoption; and did not make retrospective
    
    adjustments in respect of the changes that had occurred to contracts before the beginning of the earliest
    
    comparable period or before the beginning of 2020, but according to the final arrangements of the contract
    
    changes, identified the fulfilled and unfulfilled performance obligations, determined the transaction price and
    
    distributed the transaction price to the fulfilled and unfulfilled performance obligations. The effects of the
    
    adoption of the new revenue standard on the presentation of the balance sheet items as at the beginning of the
    
    current period are as follows:
    
           Item          Carryingamountasperthe      Effectof         Effectof      Carryingamountasperthe
                        former revenuestandard     reclassification    remeasurement     revisedrevenuestandard
    Advances fromcustomers            141,748,956.00   -136,249,382.00                           5,499,574.00
    Contract liabilities                              133,818,206.00                         133,818,206.00
    Other currentliabilities              69,021,962.00     2,431,176.00                          71,453,138.00
    
    
    III Independent Auditor’s Report
    
    Indicate by tick mark whether the financial statements above have been audited by an independent auditor.
    
    □Yes √ No
    
    These financial statements have not been audited by such an auditor.

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