东方精工:2023年第一季度报告(英文)

http://ddx.gubit.cn  2023-04-22  东方精工(002611)公司公告

GUANGDONG DONGFANG PRECISION SCIENCE & TECHNOLOGY CO., LTD.

THE REPORT FOR THE FIRST QUARTER OF 2023

The Company as well as all members of the Board of Directors hereby guarantee thefactuality, accuracy, and completeness of the information disclosed, and its free of anymisrepresentations, misleading statements, or material omissions.

Important Notes:

1. The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,supervisors and senior management of Guangdong Dongfang Precision Science & Technology Co., Ltd.(hereinafter referred to as the “Company”) hereby guarantee the factuality, accuracy, and completeness of thecontents of this Report, and shall be jointly and severally liable for any misrepresentations, misleadingstatements, or material omissions therein.

2. The Company’s legal representative, the Company’s Chief Financial Officer, and the person-in-chargeof the accounting organ hereby guarantee that the financial statements carried in this Report are factual,accurate and complete.

3. Whether the 1

stquarter report has been audited

□ Yes √ No

The report for the 1

stquarter of 2023 of the Company has been prepared and released in Chinese,and now has been translated into English. Should there be any discrepancies or misunderstandingsbetween the two versions, the Chinese version shall prevail.

I Key Financial Information

1. Key Financial Data and Indicators

Indicate whether there is any retrospectively restated datum in the table below.

□ Yes √ No

Q1 2023Q1 2022Rate of Change
Operating revenue (RMB)907,101,141.80636,006,580.1142.62%
Net profit attributable to the listed company’s shareholders (RMB yuan)84,973,342.9237,109,411.15128.98%
Net profit attributable to the listed company’s shareholders before exceptional gains and losses (RMB yuan)51,961,918.8945,662,017.3113.80%
Net cash generated from/used in operating activities (RMB yuan)104,429,591.3085,523,348.9222.11%
Basic earnings per share (RMB / share)0.070.03133.33%
Diluted earnings per share (RMB /share)0.070.03133.33%
Weighted average return on equity (ROE)2.08%1.02%1.06%
Ending balance Of the Reporting PeriodBeginning balance Of the Reporting PeriodRate of Change
Total assets (RMB)7,127,787,958.356,928,577,115.102.88%
Equity attributable to the listed company’s shareholders (RMB)4,096,865,613.574,063,966,310.230.81%

2. Non-recurring profit and loss items and amount

√ Applicable □ Not applicable

Unit: RMB

ItemQ1 2023Notes
Gain or loss on disposal of non-current assets (inclusive of impairment allowance write-offs)-382,067.42
Government subsidies included in current profit or loss (exclusive of government grants given in the Company’s ordinary course of business at fixed quotas or amounts as per the government’s uniform standards)2,550,704.06
Gain or loss on fair-value changes on held-for-trading and derivative financial assets and liabilities & income from disposal of held-for-trading and derivative financial assets and liabilities and other debt investments (exclusive of the effective portion of hedges that arise in the Company’s ordinary course of business)32,150,522.32
Non-Operating Revenue and expenses other than the above-6,857.27
Less: Income tax effects229,557.37
Non-controlling interests effects (net of tax)1,071,320.29
Total33,011,424.03--

Other items that meet the definition of non-recurring profit and loss:

□ Applicable √ Not applicable

No such cases for the Reporting Period.

Note of the reclassification of non-recurring items of profit or loss listed in "Explanatory Announcement No. 1 on Disclosure ofInformation by Companies Issuing Public Securities - Non-recurring Profit or Loss" as recurring items of profit or loss:

□ Applicable √ Not applicable

No such cases for the Reporting Period.

Guangdong Dongfang Precision Science & Technology Co., Ltd. Report of Q1 2023

3. Changes in Key Financial Data and Indicators and the Reasons

√Applicable □ Not applicable

Unit: RMB

(1) Balance sheet items

ItemsEnding balance Of the Reporting PeriodBeginning balance Of the Reporting PeriodAmount of ChangeRate of ChangeNotes
Cash and bank balances1,429,733,808.801,274,447,199.74155,286,609.0612.18%Mainly due to the increase of amount received for sales and the redemption of some entrusted wealth management products during the reporting period.
Financial assets held for trading826,564,639.52860,832,278.88-34,267,639.36-3.98%Mainly due to the redemption of some entrusted wealth management products during the reporting period.
Accounts receivable765,635,440.37837,305,757.46-71,670,317.09-8.56%Mainly due to the increase of amount received for sales in the reporting period.
Other receivables38,754,459.2683,996,902.82-45,242,443.56-53.86%Mainly due to the early recovery of the remaining balance of the transfer of equity interest of the Ferretto Group during the reporting period.

Inventories

Inventories1,241,618,636.811,092,981,884.51148,636,752.3013.60%Mainly due to the increase in orders and the increase in inventories during the reporting period.
Construction in progress71,640,546.1038,904,537.8532,736,008.2584.14%Mainly due to the investment in the construction of plants during the reporting period.
Short-term borrowings96,301,680.1241,815,129.2454,486,550.88130.30%Mainly due to the increase in borrowings during the reporting period.
Accounts payable703,414,660.38748,319,561.21-44,904,900.83-6.00%Mainly due to the payment for goods during the reporting period.
Contract liabilities825,114,775.47692,567,968.60132,546,806.8719.14%Mainly due to the increase in orders during the reporting period.
Treasury stock309,451,578.83240,255,502.4569,196,076.3828.80%Mainly due to share repurchase during the reporting period.

(2) Income statement items

ItemsQ1 2023Q1 2022Amount of ChangeRate of ChangeNotes
Operating revenue907,101,141.80636,006,580.11271,094,561.6942.62%Mainly due to the increase in sales during the reporting period.

Guangdong Dongfang Precision Science & Technology Co., Ltd. Report of Q1 2023

Cost of sales653,454,327.84472,346,527.10181,107,800.7438.34%Mainly due to the increase in sales for the reporting period.
Selling expenses49,395,917.6624,373,541.2925,022,376.37102.66%Mainly due to the increase in sales during the reporting period.
R&D expenses27,637,218.0918,824,950.198,812,267.9046.81%Mainly due to increased investment in research and development during the reporting period.
Finance costs4,922,184.62-5,516,912.3510,439,096.97189.22%Mainly due to changes in exchange rates during the reporting period.
Investment income11,843,626.19-4,249,447.6316,093,073.82378.71%Mainly due to the increase in investment income recognized from the implementation of investments in securities during the reporting period.
Gain/loss on changes in fair value18,689,791.21-8,257,489.8026,947,281.01326.34%Mainly due to the increase in fair value changes recognized on the implementation of investments in securities during the reporting period.

(3) Cash flow statement items

ItemsQ1 2023Q1 2022Amount of ChangeRate of ChangeNotes
Net cash generated from/used in operating activities104,429,591.3085,523,348.9218,906,242.3822.11%Mainly due to the increase in sales returns for the period.
Net cash generated from/used in investing activities72,757,007.84-2,853,044.3675,610,052.202650.15%Mainly due to investment in subsidiaries in the same period last year, which did not occur in the current period.
Net cash generated from/used in financing activities-42,170,254.9419,572,369.24-61,742,624.18-315.46%Mainly due to the recovery of loan deposits in the previous year, which did not occur in the current period.

II Shareholder Information

1. Total Number of Ordinary Shareholders and Number of Preference Shareholders with Resumed VotingRights, as well as Information of Top 10 Shareholders

Unit: shares

Number of ordinary shareholders at the period-end59,477Number of preference shareholders with resumed voting rights at the period-end (if any)Not applicable
Top 10 shareholders
Name of shareholderNature of shareholderShareholding percentageTotal shares held at the period-endRestricted shares heldShares in pledge or frozen
StatusShares
Tang ZhuolinDomestic individual21.82%270,737,568203,053,176In pledge105,360,000
Tang ZhuomianDomestic individual7.81%96,885,1340In pledge40,000,000
Pulead Technology Industry Co., Ltd.State-owned corporation3.88%48,149,7870
Luzhou Industrial Development Investment Group Co., Ltd.State-owned corporation2.56%31,770,0100
Qinghai Puren Intelligent Technology R & D Center (Limited Partnership)Domestic non-state-owned corporation2.15%26,628,3400
Qiu YezhiDomestic individual1.88%23,382,38823,382,388
Hong Kong Securities Clearing Company LimitedOverseas corporation1.27%15,712,8840
JIC Investment Co., Ltd.State-owned corporation0.72%8,884,2160
Shengji Equity Investment Fund (Shanghai) Co., Ltd.State-owned corporation0.58%7,198,0000In pledge6,700,000
Liu WucaiDomestic individual0.53%6,597,6880
Top 10 unrestricted ordinary shareholders
Name of shareholderUnrestricted shares held at the period-endShares by type
TypeShares
Tang Zhuomian96,885,134RMB ordinary shares96,885,134
Tang Zhuolin67,684,392RMB ordinary shares67,684,392
Pulead Technology Industry Co., Ltd.48,149,787RMB ordinary shares48,149,787
Luzhou Industrial Development Investment Group Co., Ltd.31,770,010RMB ordinary shares31,770,010
Qinghai Puren Intelligent Technology R & D Center (Limited Partnership)26,628,340RMB ordinary shares26,628,340
Hong Kong Securities Clearing Company Limited15,712,884RMB ordinary shares15,712,884
JIC Investment Co., Ltd.8,884,216RMB ordinary shares8,884,216
Shengji Equity Investment Fund (Shanghai) Co., Ltd.7,198,000RMB ordinary shares7,198,000
Liu Wucai6,597,688RMB ordinary shares6,597,688
Beixin Ruifeng Fund - ICBC - Beijing Hengyutianze Investment Management Co.6,171,777RMB ordinary shares6,171,777
Related or acting-in-concert parties among the shareholders aboveTang Zhuolin and Tang Zhuomian are full brothers. On 18 August 2010, they signed the Agreement on Acting in Concert. Pulead Technology Industry Co., Ltd., and Qinghai Puren Intelligent Technology R & D Center (Limited Partnership) are acting-in-concert parties. Except for these, the Company does not know whether the other shareholders are related parties or whether they are acting-in-concert parties in accordance with the Measures for the Administration of acquisitions of listed companies.
Note on the top 10 shareholders' participation in securities margin trading (if any)As of 31 March 2023, Pulead Technology Industry Co., Ltd., held 48,149,665 shares through the credit securities account. And Luzhou Industrial Development Investment Group Co., Ltd., held 31,770,010 shares through the credit securities account, as well as Qinghai Puren Intelligent Technology R & D Center (Limited Partnership) held 26,628,300 shares through the credit securities account.

Explanation on the shareholding of the repurchase accountAs of the end of the Reporting Period, there were 36,424,192 shares in the Company’s special account for repurchase, accounting for

2.94% of its total share capital. As per the Shenzhen Stock Exchange Guideline No. 1 for the Self-regulation of Listed Companies—Business Handling, the existence of a special account of repurchased shares among the top 10 shareholders should be specifically statedbut not included in the presentation of the top 10 shareholders.

2. Total Number of Preference Shareholders and Information of Top 10 Preference Shareholders

□ Applicable √ Not applicable

III Other Significant Events

□Applicable √ Not applicable

IV Quarterly Financial Statements

1. Financial Statements

(1) Consolidated Balance Sheet

Prepared by: Guangdong Dongfang Precision Science & Technology Co., Ltd.

31 March 2023

Unit: RMB

Item31 March 20231 January 2023
Current assets:
Cash and bank balances1,429,733,808.801,274,447,199.74
Settlement provisions
Item31 March 20231 January 2023
Dismantling funds
Financial assets held for trading826,564,639.52860,832,278.88
Derivative financial assets
Notes receivable25,771,245.4424,566,100.12
Accounts receivable765,635,440.37837,305,757.46
Receivable financing22,932,959.1315,305,668.26
Prepayments68,792,086.5464,946,901.26
Premium receivable
Receivable reinsurance account
Provision for reinsurance contract receivable
Other receivables38,754,459.2683,996,902.82
Including: Interest receivable
Dividend receivable
Buy back resale financial assets
Inventories1,241,618,636.811,092,981,884.51
Contract assets49,349,058.5865,089,851.21
Assets held for sale
Current portion of non-current assets314,157,500.00311,763,750.00
Other current assets69,839,768.4961,370,451.31
Total current assets4,853,149,602.944,692,606,745.57
Non-current assets:
Loans and advances
Debt investment
Other debt investments
Long-term receivables964,299.001,294,299.00
Long-term equity investment93,752,046.0195,352,681.52
Investment in other equity instruments
Other non-current financial assets334,959,677.33334,449,603.33
Real estate investment
Fixed assets565,867,646.04570,200,113.79
Construction in progress71,640,546.1038,904,537.85
Productive biological assets
Oil and gas asset
Right-of-use assets84,141,310.8086,448,978.02
Intangible assets363,731,709.22368,103,395.11
Development expenditure3,702,229.763,702,229.76
Goodwill432,511,475.32430,916,848.74
Long-term prepaid expenses18,420,319.9616,735,552.98
Item31 March 20231 January 2023
Deferred tax assets247,119,485.63244,542,124.61
Other non-current assets57,827,610.2445,320,004.82
Total non-current assets2,274,638,355.412,235,970,369.53
Total assets7,127,787,958.356,928,577,115.10
Current liabilities:
Short-term borrowings96,301,680.1241,815,129.24
Borrowing from the Central Bank
Borrowed funds
Financial liabilities held for trading57,027,528.3357,022,555.58
Derivative financial liabilities
Notes payable130,127,953.80149,918,253.31
Accounts payable703,414,660.38748,319,561.21
Advance receivables
Contract liabilities825,114,775.47692,567,968.60
Selling back financial assets
Deposits and Interbank deposit
Agent trading securities
Agent underwriting securities
Employee benefits payable126,518,352.61123,695,328.31
Tax payable34,356,429.9224,111,703.70
Other payables114,071,613.1190,080,142.50
Including: Interest payable
Dividend payable
Fees and commissions
Reinsurance accounts payable
Liabilities held for sale
Current portion of non-current liabilities320,259,921.59315,767,431.26
Other current liabilities7,843,151.625,988,879.29
Total current liabilities2,415,036,066.952,249,286,953.00
Non-current liabilities:
Insurance contract reserve
Long-term borrowings56,452,115.1557,884,494.89
Bonds payable
Including: Preference Shares
Perpetual bonds
Lease liabilities61,528,268.3868,989,111.33
Long-term payables
Long-term employee benefits payable12,896,110.1413,179,944.17
Provisions118,690,395.19118,945,953.78
Item31 March 20231 January 2023
Deferred income10,794,486.6611,073,651.66
Deferred tax liabilities5,463,483.836,825,450.77
Other non-current liabilities136,603,881.90136,396,292.55
Total non-current liabilities402,428,741.25413,294,899.15
Total Liabilities2,817,464,808.202,662,581,852.15
Equity:
Share capital1,240,978,400.001,241,106,400.00
Other equity instruments
Including: Preference Shares
Perpetual bonds
Capital surplus2,954,305,867.272,947,263,843.53
Less: Treasury stock309,451,578.83240,255,502.45
Other comprehensive income35,430,564.2526,512,917.07
Special reserve15,779,321.4014,488,955.52
Surplus reserves51,830,974.4551,830,974.45
General risk preparation
Retained earnings107,992,065.0323,018,722.11
Total equity attributable to owners of the parent4,096,865,613.574,063,966,310.23
Non-controlling interests213,457,536.58202,028,952.72
Total equity4,310,323,150.154,265,995,262.95
Total liabilities and equity7,127,787,958.356,928,577,115.10

Legal representative: Tang Zhuolin, Chief Financial Officer: Shao Yongfeng, Person-in-charge of the accounting organ: Yao Bin

(2) Consolidated Income Statement for Q1 2023

Unit: RMB

ItemQ1 2023Q1 2022
1 Total operating revenue907,101,141.80636,006,580.11
Including: Operating revenue907,101,141.80636,006,580.11
Interest income
Premiums earned
Fee and commission income
2 Total operating cost816,570,578.44576,816,779.91
Including: Cost of sales653,454,327.84472,346,527.10
Interest expense
Payment of fees and commission
Surrender fund
Net indemnity expenditure
Draw the net reserve of insurance
ItemQ1 2023Q1 2022
liability contract
Policy dividend expense
Reinsurance cost
Taxes and surcharges4,693,860.224,022,255.53
Selling expenses49,395,917.6624,373,541.29
Administrative expenses76,467,070.0162,766,418.15
R&D expenses27,637,218.0918,824,950.19
Finance costs4,922,184.62-5,516,912.35
Including: Interest expenses2,869,618.964,443,668.86
Interest income6,504,802.555,483,896.31
Add: Other income2,550,704.063,455,142.45
Investment income (loss with "-" sign)11,843,626.19-4,249,447.63
Including: Share of profit or loss of joint ventures and associates-1,617,104.9244,614.18
Income from derecognition of financial assets measured at amortized cost (loss with "-" sign)
Exchange gain (loss with "-" sign)
Net exposure hedging gain (loss with "-" sign)
Gain/loss on changes in fair value (loss with "-" sign)18,689,791.21-8,257,489.80
Credit impairment loss (loss is listed with "-" sign)-410,038.394,297,826.65
Asset impairment loss (loss with "-" sign)-1,438,574.33-634,508.31
Gain/loss on disposal of assets (loss with "-" sign)-382,067.42
3 Operating profit (losses are listed with "-" sign)121,384,004.6853,801,323.56
Add: Non-operating income876,053.60238,187.76
Less: Non-operating expenses882,910.8781,446.72
5 Gross profit (the gross loss shall be filled in with the sign "-")121,377,147.4153,958,064.60
Less: Income tax expenses24,873,932.2012,707,811.73
Net profit (net loss is listed with "-" sign)96,503,215.2141,250,252.87
(1) Net profit from continuing operations
i. Net profit from continuing operations (net loss with "-" sign)96,503,215.2141,250,252.87
ii. Net profit from termination of operation (net loss with "-" sign)
(2) Net profit classified by attribution of ownership
i. Net profit attributable to owners of the parent84,973,342.9237,109,411.15
ItemQ1 2023Q1 2022
ii. Net profit attributable to non-controlling interests11,529,872.294,140,841.72
6 Other comprehensive income/(loss), net of tax8,816,358.75-12,147,447.87
Other comprehensive income/(loss) attributable to owners of the parent, net of tax8,917,647.18-11,336,050.09
(1) Other comprehensive loss that will not be reclassified to profit or loss-229,036.89267,186.98
i. Changes caused by remeasurements on defined benefit schemes-229,036.89267,186.98
ii. Other comprehensive income that cannot be transferred to profit or loss under the equity method
iii. Changes in fair value of investments in other equity instruments
iv. Fair value change of enterprise's own credit risk
v. Other
(2) Other comprehensive income/(loss) that will be reclassified to profit or loss9,146,684.07-11,603,237.07
i. Other comprehensive income that can be transferred to profit or loss under the equity method
ii. Changes in fair value of other debt investments
iii. The amount of financial assets reclassified to other comprehensive income
iv. Provision for credit impairment of other debt investments
v. Cash flow hedging reserve
vi. Differences arising from the translation of foreign currency-denominated financial statements9,146,684.07-11,603,237.07
vii. Other
Other comprehensive income attributable to non-controlling interests, net of tax-101,288.43-811,397.78
Total comprehensive income105,319,573.9629,102,805.00
Total comprehensive income attributable to owners of the parent93,890,990.1025,773,361.06
Total comprehensive income attributable to non-controlling interests11,428,583.863,329,443.94
Earnings per share:
(1) Basic earnings per share0.070.03
(2) Diluted earnings per share0.070.03

Legal representative: Tang Zhuolin, Chief Financial Officer: Shao Yongfeng, Person-in-charge of the accounting organ: Yao Bin

(3) Consolidated Statement of Cash Flows for Q1 2023

Unit: RMB

ItemQ1 2023Q1 2022
1 Cash flows from operating activities:
Proceeds from sale of goods and rendering of services1,133,116,009.63928,486,238.07
Net increase in customer deposits and interbank deposits
Net increase in borrowing from the central bank
Net increase in funds transferred to other financial institutions
Cash received from the premium of the original insurance contract
Net cash received from reinsurance business
Net increase in depositors' deposits and investment funds
Cash that collects interest, commission and commission
Net increase in borrowed funds
Net increase in funds for repurchase business
Net cash received by agents buying and selling securities
Receipts of taxes and surcharges refunds12,654,705.8215,645,068.29
Cash generated from other operating activities17,909,137.7822,607,109.83
Subtotal of cash generated from operating activities1,163,679,853.23966,738,416.19
Payments for goods and services801,773,222.77630,966,598.83
Net increase in customer loans and advances
Net increase in central bank and interbank deposits
Cash to pay the indemnity of the original insurance contract
Net increase in loan funds
Cash for the payment of interest, fees and commissions
Cash for the payment of policy dividends
Cash payments to and on behalf of employees147,283,122.05103,051,894.89
Payments of all types of taxes and surcharges24,101,285.4233,816,513.68
Cash used in other operating activities86,092,631.69113,380,059.87
Subtotal of cash used in operating activities1,059,250,261.93881,215,067.27
Net cash generated from/used in operating activities104,429,591.3085,523,348.92
2 Cash flows from investing activities:
Proceeds from disinvestment1,057,772,710.371,357,115,658.04
Investment income31,580,739.519,151,644.38
Net proceeds from the disposal of fixed assets, intangible assets and other long-lived assets1,800.00
Disposal of net cash received by subsidiaries and other business units
ItemQ1 2023Q1 2022
Cash generated from other investing activities
Subtotal of cash generated from investing activities1,089,355,249.881,366,267,302.42
Payments for the acquisition of fixed assets, intangible assets and other long-lived assets31,121,172.1925,429,170.52
Payments for investments985,477,069.851,243,551,176.26
Net increase in pledged loans
Obtain net cash paid by subsidiaries and other business units48,000,000.00
Cash used in other investing activities52,140,000.00
Subtotal of cash used in investing activities1,016,598,242.041,369,120,346.78
Net cash generated from/used in investing activities72,757,007.84-2,853,044.36
3 Cash flows from financing activities:
Absorb the cash received by the investment
Including: the subsidiary absorbs the cash received from the investment of minority shareholders
Borrowings raised76,518,715.93211,775,514.73
Cash generated from other financing activities66,555,529.72360,325,501.52
Subtotal of cash generated from financing activities143,074,245.65572,101,016.25
Repayment of borrowings28,294,072.18239,525,593.46
Interest and dividends paid1,631,824.741,883,623.89
Including: Interest and dividends paid to minority shareholders
Cash used in other financing activities155,318,603.67311,119,429.66
Subtotal of cash used in financing activities185,244,500.59552,528,647.01
Net cash generated from/used in financing activities-42,170,254.9419,572,369.24
4 Effect of foreign exchange rates changes on cash and cash equivalents5,507,470.66-18,537,842.93
5 Net (decrease)/increase in cash and cash equivalents140,523,814.8683,704,830.87
Add: Cash and cash equivalents, beginning of the period1,233,720,697.271,259,303,775.74
6 Cash and cash equivalents, end of the period1,374,244,512.131,343,008,606.61

Legal representative: Tang Zhuolin, Chief Financial Officer: Shao Yongfeng, Person-in-charge of the accounting organ: Yao Bin

2. Audit Report

Whether the Report has been audited

□ Yes √ No

The report for the 1

stquarter of 2023 of the Company has not been audited.

Board of Directors

ofGuangdong Dongfang Precision Science & Technology Co., Ltd.

21 April 2023


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