光峰科技：2023年第一季度报告（英文版）

The First Quarter Report in 2023 Stock Code: 688007 Stock Short Name: Appotronics Appotronics Corporation Limited The First Quarter Report in 2023 The Board of Directors of the Company and all directors warrant that this Announcement is free from any misrepresentation, misleading statement, or material omission, and shall be jointly and severally liable for the truthfulness, accuracy, and completeness of the content hereof. Important Notes (I)The Board of Directors, the Board of Supervisors, directors, supervisors, and senior officers of the Company hereby warrant that the information contained in this Quarterly Report is true, accurate and complete and this Quarterly Report is free from any misrepresentation, misleading statement or material omission, and agree to assume joint and several liability for this Quarterly Report. (II)The Principal, Person in Charge of the Accounting Body, and Chief Accountant of the Company hereby represent that the information of the financial statements contained in this Quarterly Report are true, accurate and complete. (III)Whether the financial statements of the 1st quarter have been audited □ Yes √ No 本报告为深圳光峰科技股份有限公司自愿披露的《2023年第一季度报告（英文版）》，对本报告的中英文版本理解上发生歧义时，以中文版本为准。

This is the First Quarterly Report in 2023 (English version) voluntarily disclosed by Appotronics Corporation Limited. In the event of any discrepancy between the English and Chinese versions of this report, the Chinese version shall prevail. The First Quarter Report in 2023 I. Major financial data (IV) Main accounting data and financial indicators In RMB Item During the reporting period Change on a year-on-year basis (%) Operating income 459,012,885.14 -12.59 Net profit attributable toshareholders of the listed company 13,654,664.95 -23.54 Net profit attributable to shareholders of the listed company after deduction of non-recurring profit or loss -11,377,457.90 -2,165.97 Net cash flow from operating activities-36,331,090.68 N/A Basic earnings per share(RMB/share) 0.03 -25.00 Diluted earnings per share(RMB/share) 0.03 -25.00 Weighted average return on netassets (%) 0.51 -0.22 Percentage points Total R&D investments 63,434,898.2015.49 Proportion of R&D investmentsto operating income (%) 13.82 +3.36 Percentage points At the end of thereporting period At the end of the prior year Changes at the end of the reporting period from the end of the prior year (%) Total assets 4,357,740,302.444,333,350,260.150.56 Owners’ equity attributable to shareholders of the listed company 2,674,401,681.672,647,663,487.591.01 (V) Items and amounts of non-recurring profit or loss In RMB Item Amount for the current period Description The First Quarter Report in 2023 Gain or loss on disposal of non-current assets -108,462.62 Government grants recognized in profit or loss for the current period (excluding government grants that are closely related to the business of the Company and are provided in fixed amount or quantity continuously according to the applicable polices and standards of the country) 17,997,782.24 Profit or loss on entrusted investments or assets management 2,338,845.55 Net profit or loss of subsidiaries from the beginning of the period up to the business combination date recognized as a result of business combination of enterprises involving enterprises under common control 7,383,154.62 Profit or loss on changes in the fair value of held-for-trading financial assets, derivative financial assets, held-for-trading financial liabilities and derivative financial liabilities and investment income on disposal of held-for-trading financial assets, derivative financial assets, held-for-trading financial liabilities, derivative financial liabilities and other debt investments, other than those used in the effective hedging activities relating to normal operating business 13,000.00 Receivables that are separately tested for impairment and impairment of contract assets preparing to be reversed 69,851.05 Other non-operating income and expenses 298,864.40 Other profits or losses meeting the definition of non-recurring profit or loss 426,752.17 Less: Effect of income taxes 3,096,907.64 Effects attributable to minority interests (net of tax) 290,756.91 Total 25,032,122.85 Description of defining non-recurring profit or loss items illustrated in Information Disclosure and Presentation Rules for Companies Making Public Offering of Securities No.1－Non-recurring Profit or Loss as recurring profit or loss items □ Applicable √ N/A (VI) Description of and reasons for changes in the main accounting data and financial The First Quarter Report in 2023 indicators √ Applicable □ N/A Item % Change Main reason Net profit attributable to shareholders of the listed company after deduction of non-recurring profit or loss -2,165.97 This was mainly due to a combination of reasons such as lower revenue, increased investment in marketing and R&D. 1. Analysis of operating conditions In the face of complex and changeable internal and external environment, the Company always adheres to the strategic focus of " core technologies+ core devices + application scenarios ", and actively adapts to changes in uncertainty. With profound technology accumulation in the field of optics, the Company grasps the market opportunities brought by the steady advancement of the "core devices" strategy, continues to increase R&D investment in growth businesses such as automotive optics, strives to build a new growth pole of the Company's performance, and pursues the Company's high-quality growth. In the first quarter of 2023, the Company's main operating conditions are as follows: Since entering the automotive optical track, the Company has continued to make breakthroughs in the automotive optical business, quickly obtained the IATF 16949:2016 quality management system certification, obtained the access pass to enter the domestic and foreign automotive industry supply chain, and obtained the Development Nomination Letter issued by BYD, an internationally renowned brand car company, Seres and other well-known car companies, to achieve rapid growth of automotive optical business. At the International Consumer Electronics Show (CES 2023) held in January 2023, automotive brand BMW unveiled the world's first concept car equipped with four-window fusion display technology—Dee, for which the Company provided four-window fusion display technology module. At the recently held 20th Shanghai International Automotive Industry Exhibition, the Company released the world's first automotive-grade RGB laser headlights, showing immersive in-car digital interaction solutions such as exterior window display, in-car transparent display, in-car entertainment screen, and smart surface display, demonstrating the Company's new ideas for various scenarios of future automotive optics, bringing a smarter and more interesting driving experience to drivers and passengers. In addition, the Company attaches great importance to the patent layout of automotive optical technology, and in the first quarter of 2023, the Company added 42 new authorizations and applications The First Quarter Report in 2023 for patents related to automotive optical technology; as of March 31,2023, the cumulative number of patents authorized and applied for automotive optical technology reached 170. With the rapid development of electric vehicle intelligence, the Company will continue to expand the automotive optical business around the three application directions of automotive display, laser headlights, and HUD, and work with industry chain ecological partners to jointly create a new intelligent car experience for consumers. In terms of cinema projection service business, in 2023, the supply of film sources and the pace of release are recovering, and the cinema market is gradually recovering. In the first quarter of 2023, the Company's cinema projection service business achieved an operating income of RMB 90.9638 million, a year-on-year increase of 11.03%. In terms of professional display business, the Company continued to strengthen strategic cooperation with core customers and industry chain partners, and held a core partner summit with the theme of "Working Together to Shine the World" in March 2023. During the reporting period, the Company's professional display business recovered well as a whole, with an increase of 22.11% in operating income over the same period last year, of which the overseas special display business expanded rapidly, and the operating income increased by 74.71% over the same period last year. In terms of C-end own brands, Formovie further focused on its own brand construction, and its own brand business revenue was basically the same as the same period last year, and its revenue accounted for more than 70% of Formovie's total revenue, and its comprehensive gross profit margin increased significantly. 2. Analysis of profit influencing factors (1) Operating income During the reporting period, the Xiaomi ODM business revenue of its subsidiary decreased by 53.12% compared with the same period last year, which was the main force to burden the pressure on the Company's revenue performance. (2) Fees During the reporting period, the Company increased R&D investment in growth businesses such as automotive optics, and R&D expenses increased by RMB 8.5099 million, a year-on-year increase of The First Quarter Report in 2023 15.49% over 2022; the Company's various business lines increased marketing efforts, and sales expenses increased by RMB 5.0294 million, a year-on-year increase of 9.16% compared with 2022. II. Shareholder information (I) Total number of ordinary shareholders, number of preferred shareholders whose voting right has been restituted, and shares held by top 10 shareholders Unit: Share Total number of ordinary shareholders as of the end of the reporting period 13,902 Total number of preferred shareholders whose voting right has been restituted as of the end of the reporting period (if any) N/A Shares held by top 10 shareholders Shareholder Nature of shareholder Number of shares held Proport ion of shareholding (%) Number of non-tradable shares held Number of non-tradable shares held, including the shares lent out under the refinancing arrangement Shares pledged, marked, or frozen Status ofshares Quantity Shenzhen Appotronics Holdings Limited Domestic non-stated owned corporation 79,762,67917.4500 None - Shenzhen Yuanshi Laser Industrial Investment Consulting Partnership (LP) Domestic non-stated owned corporation 24,139,5005.2800 None - Nantong Strait Appotronics Investment Partnership (LP) Domestic non-stated owned corporation 22,780,3294.9800 None - Shenzhen Appotronics Daye Investment Partnership (LP) Domestic non-stated owned corporation 20,430,2504.4700 None - The First Quarter Report in 2023 Shenzhen Appotronics Hongye Investment Partnership (LP) Domestic non-stated owned corporation 15,662,3743.4300 None - Shenzhen Jinleijing Investment Limited Partnership(LP) Domestic non-stated owned corporation 12,353,1062.7000 None - Shenzhen Appotronics Chengye Consulting Partnership(LP) Domestic non-stated Owned corporation 10,394,8462.2700 None - Bank of China-E Fund Stable Income Bond Securities Investment Fund other 8,629,2711.8900 None - Shenzhen Guochuang Chenggu Capital Management Co., Ltd. -Shenzhen Chengguhui Equity Investment Partnership (LP) Domestic non-stated owned corporation 8,114,3691.7800 None - Industrial Bank Company Limited-Tianhong Yongli Bond Securities Investment Fund other 7,788,0751.7000 None - Shares held by top 10 holders of tradable shares Shareholder Number of tradable shares held Type and number of shares Type of shares Quantity Shenzhen Appotronics Holdings Limited 79,762,679 RMB-denominated ordinary share 79,762,679 Shenzhen Yuanshi Laser Industrial Investment Consulting Partnership (LP) 24,139,500 RMB-denominated ordinary share 24,139,500 The First Quarter Report in 2023 Nantong Strait Appotronics Investment Partnership (LP) 22,780,329 RMB-denominated ordinary share 22,780,329 Shenzhen Appotronics Daye Investment Partnership (LP) 20,430,250 RMB-denominated ordinary share 20,430,250 Shenzhen Appotronics Hongye Investment Partnership (LP) 15,662,374 RMB-denominated ordinary share 15,662,374 Shenzhen Jinleijing Investment Limited Partnership(LP) 12,353,106 RMB-denominated ordinary share 12,353,106 Shenzhen Appotronics Chengye Consulting Partnership(LP) 10,394,846 RMB-denominated ordinary share 10,394,846 Bank of China-EFund Stable Income Bond Securities Investment Fund 8,629,271 RMB-denominated ordinary share 8,629,271 Shenzhen Guochuang Chenggu Capital Management Co., Ltd. -Shenzhen Chengguhui Equity Investment Partnership (LP) 8,114,369 RMB-denominated ordinary share 8,114,369 Industrial Bank Company Limited-Tianhong Yongli Bond Securities Investment Fund 7,788,075 RMB-denominated ordinary share 7,788,075 Affiliates or concert parties among the shareholders stated above 1. As of March 31,2023, there is a related-party relationship or concerted action, except the concerted action among Shenzhen Appotronics Holdings Limited., Shenzhen Yuanshi Laser Industrial Investment Consulting Partnership (LP), Shenzhen Appotronics Daye Investment Partnership (LP), Shenzhen Appotronics Hongye Investment Partnership (LP), Shenzhen Jinleijing Investment Limited Partnership (LP), and Shenzhen Appotronics Chengye Consulting Partnership (LP) in top 10 shareholders of the Company. 2. We are not aware whether there are affiliates or concert parties as defined in the Administrative Measures for the Acquisition of the Listed Companies among other shareholders. Description of margin trading, short selling, and refinancing involving top 10 shareholders and top 10 holders of non-restricted shares (if any) N/A III. Other events The First Quarter Report in 2023 Other important information about the business operation of the Company during the reporting period requesting the attention of investors √ Applicable □ N/A (I) Litigation and arbitration During the reporting period, the details of the Company's litigation and arbitration matters are as follows: 1. The Company received the closing ruling of the Guangzhou Intellectual Property Court on case numbers (2020) Yue 73 Zhi Min Chu No.1335-1341,1353 and 1355-1361. 2. (2023) Hu 73 Zhi Min Chu No.15 case (original case number: (2021) Hu 73 Zhi Min Chu No.1070), Delta Electronics, Inc. is the right holder of the invention patent No.ZL201110041436.1, and it claims that the Company and Shanghai Haichi Digital Technology Co., Ltd. have infringed its invention patent right, and the case is being tried at first instance. (II) Request for invalidation declaration 1. As of the end of the reporting period, the Company filed an invalidation request against the patents held by Delta Electronics, Inc., and 3 cases were under trial by the State Intellectual Property Office. 2. As of the end of the reporting period, the Company's patent with the Company itself as the patentee has been filed with an invalidation request, and 3 cases are under trial by the State Intellectual Property Office, the patents involved are the “light source structure based on phosphor to improve the light conversion efficiency” (patent number: 200810065225.X), “phosphor layer, device and corresponding light source and projection system, and corresponding production method” (patent number: ZL201510420950.4), “optical system and projection device” (patent number: ZL202220267901.7). IV. Quarterly financial statements (I) Type of audit opinions□ Applicable √ N/A (II) Financial statements The First Quarter Report in 2023 Consolidated Balance Sheet March 31,2023Prepared by: Appotronics Corporation Limited In RMB Audit type: Unaudited Item March 31,2023 December 31,2022 Current Assets: Cash and bank balances 1,469,396,456.061,355,882,208.63 Balances with clearing agencies Placements with banks and other financial institutions Held-for-trading financial assets 357,880,000.00352,880,000.00 Derivative financial assets Notes receivable 2,699,977.522,234,687.77 Accounts receivable 144,756,256.94208,260,235.79 Receivables financing 4,448,898.004,279,041.00 Prepayments 40,571,724.9148,445,976.86 Premiums receivable Amounts receivable under reinsurance contracts Reinsurer’s share of insurance contract reserves Other receivables 27,100,787.0826,331,721.55 Including: Interest receivable Dividend receivable 13,605,966.0013,789,908.00 Financial assets purchased under resale agreements Inventories 851,103,674.04865,639,961.79 Contract assets 866,469.791,061,581.35 Assets held for sale Non-current assets due within one year 19,900,783.0913,431,554.82 Other current assets 103,314,002.06106,502,611.79 Total current assets 3,022,039,029.492,984,949,581.35 Non-current Assets: The First Quarter Report in 2023 Loans and advances Debt investments Other debt investments Long-term accounts receivable 13,939,785.5011,524,193.80 Long-term equity investment 160,185,985.74162,394,917.57 Investment in other equity instruments7,075,419.387,075,419.38 Other non-current financial assets Investment property Fixed assets 402,916,872.24427,539,718.53 Construction in progress 291,969,144.16278,978,057.73 Productive biological assets Oil and gas assets Use right assets 63,613,309.1462,255,670.29 Intangible assets 289,270,280.89290,341,693.08 Development expenditure Goodwill Long-term prepaid expenses 7,283,451.215,990,984.03 Deferred tax assets 85,124,160.7489,730,936.02 Other non-current assets 14,322,863.9512,569,088.37 Total non-current assets 1,335,701,272.951,348,400,678.80 Total assets 4,357,740,302.444,333,350,260.15 Current Liabilities: Short-term borrowings 159,659,634.03129,589,634.03 Loans from the central bank Taking from banks and other financial institutions Held-for-trading financial liabilitiesDerivative financial liabilities 54,000.00 Notes payable 116,054,205.55201,299,388.57 Accounts payable 206,616,328.35276,845,321.28 Advance from customers 101,754,238.14113,834,728.10 Contract liabilities 54,030,723.4437,285,920.43 Financial assets sold under repurchase agreements The First Quarter Report in 2023 Customer deposits and deposits from banks and other financial institutions Funds from securities trading agency Funds from underwriting securities agencyEmployee benefits payable 29,226,329.4958,470,960.55 Taxes payable 2,462,789.928,272,768.90 Other payables 49,223,795.8956,662,357.08 Including: Interest payable Dividend payable Fees and commissions payable Amounts payable underreinsurance contracts Liabilities held for sale Non-current liabilities due within one year 131,081,219.93178,031,817.37 Other current liabilities 31,215,539.5628,383,608.37 Total current liabilities 881,378,804.301,088,676,504.68 Non-current Liabilities: Insurance contract reserves Long-term borrowings 621,520,837.98403,720,542.45 Bonds payable Including: Preferred shares Perpetual bonds Leasing liabilities 39,043,877.9034,319,284.23 Long-term payables Long-term employee benefits payable Estimated liabilities 54,433,268.1756,463,882.87 Deferred income 5,675,578.548,651,422.26 Deferred tax liabilities Other non-current liabilities Total non-current liabilities 720,673,562.59503,155,131.81 Total liabilities 1,602,052,366.891,591,831,636.49 The First Quarter Report in 2023 Owners’ Equity (Shareholders’ Equity): Paid-in capital (or share capital) 457,107,538.00457,107,538.00 Other equity instruments Including: Preferred shares Perpetual bonds Capital reserve 1,543,948,489.411,530,752,116.04 Less: Treasury shares 19,377,297.5919,377,297.59 Other comprehensive income 5,624,053.175,736,897.41 Special reserve Surplus reserve 75,519,782.0675,519,782.06 General risk reserve Undistributed profit 611,579,116.62597,924,451.67 Total owners’ (or shareholders’) equity attributable to owners of the Parent Company 2,674,401,681.672,647,663,487.59 Minority interests 81,286,253.8893,855,136.07 Total owners’ (or shareholders’) equity 2,755,687,935.552,741,518,623.66 Total liabilities and owners’ (or shareholders’) equity 4,357,740,302.444,333,350,260.15 Legal Representative: LIYi Chief Accountant: WANGYingxia Person in Charge of the Accounting Body: WANGYingxi The First Quarter Report in 2023 14 /21 Consolidated Income Statement For the period from January to March 2023Prepared by: Appotronics Corporation Limited In RMB Audit type: unaudited Item The First Quarter in 2023 The First Quarter in 2022 I. Total operating income 459,012,885.14525,139,870.53 Including: Operating income 459,012,885.14525,139,870.53 Interest income Premiums earned Fee and commission income II. Total operating costs 467,714,458.54523,692,375.90 Including: Operating costs 296,672,965.87354,352,194.03 Interest expenses Fee and commission expenses Surrenders Claims and policyholder benefits (net of amounts recoverable from reinsurers) Net withdrawal of insurance contract reserves Insurance policyholder dividends Expenses for reinsurance accepted Taxes and additions 2,246,009.392,776,916.38 Selling expenses 59,929,586.4254,900,208.42 Administrative expenses 42,342,747.3754,622,705.64 R&D expenses 63,434,898.2054,924,987.12 Financial expenses 3,088,251.292,115,364.31 Including: Interest expense 5,966,634.805,325,013.75 Interest income 6,877,403.473,267,436.22 Add: Other income 21,723,549.5012,499,685.94 Investment income (loss is indicated by “-”) -2,765,299.531,790,753.08 The First Quarter Report in 2023 15 /21 Including: Income from investments in associates and joint ventures -5,117,145.08 -1,202,551.48 Gains from derecognition of financial assets measured at amortized cost Foreign exchange gains (loss is indicated by “-”) Gains from net exposure hedges (loss is indicated by “-”) Gains from changes in fair values (loss is indicated by “-”) -130,000.00 Losses of credit impairment (loss is indicated by “-”) 1,498,368.337,933,147.01 Impairment losses of assets (loss is indicated by “-”) -3,843,694.601,018,024.96 Gains from disposal of assets (loss is indicated by “-”) -2,903.653,849.89 III. Operating profit (loss is indicated by “-”) 7,908,446.6524,562,955.51 Add: Non-operating income 311,999.4779,121.80 Less: Non-operating expense 118,694.04166,556.20 IV. Total profits (total losses are indicated by “-”) 8,101,752.0824,475,521.11 Less: Income tax expenses 9,404,199.1817,084,893.94 V. Net profits (net losses are indicated by “-”) -1,302,447.107,390,627.17 (I) Categorized by the continuity of operation 1. Net profits from continuing operations (net losses are indicated by "-") -1,302,447.107,390,627.17 2. Net profits from discontinued operations (net losses are indicated by “-”) (II) Categorized by the ownership 1. Net profits attributable to shareholders of the Parent Company (net losses are indicated by "-") 13,654,664.9517,858,914.53 The First Quarter Report in 2023 16 /21 2. Profits or losses attributable to minority shareholders (net losses are indicated by “-”) -14,957,112.05 -10,468,287.36 VI. Other comprehensive income, net of tax 421,940.06 -2,098,194.75 (I) Other comprehensive income that can be attributable to owners of the Parent Company, net of tax -112,844.24 -2,114,795.48 1. Other comprehensive income that cannot be reclassified subsequently to profit or loss (1) Changes from remeasurement of defined benefit plans (2) Other comprehensive income that cannot be reclassified to profit or loss under the equity method (3) Changes in fair value of investments in other equity instruments (4) Changes in fair value of enterprises’ own credit risks 2. Other comprehensive income that will be reclassified to profit or loss -112,844.24 -2,114,795.48 (1) Other comprehensive income that will be reclassified to profit or loss under the equity method 4,433,259.00 -531,438.79 (2) Changes in fair value of other debt investments (3) Amount of financial assets reclassified to other comprehensive income (4) Provision for credit impairment of other debt investments (5) Reserve for cash flow hedges (6) Exchange differences on translation of financial statements denominated in foreign currencies -4,546,103.24 -1,583,356.69 The First Quarter Report in 2023 17 /21 (7) Others (II) Other comprehensive income that can be attributable to minority shareholders, net of tax 534,784.3016,600.73 VII. Total comprehensive income -880,507.045,292,432.42 (I) Total comprehensive income that can be attributable to owners of the Parent Company 13,541,820.7115,744,119.05 (II) Total comprehensive income that can be attributable to minority shareholders -14,422,327.75 -10,451,686.63 VIII. Earnings per share: (I) Basic earnings per share (RMB/share) 0.030.04 (II) Diluted earnings per share(RMB/share) 0.030.04 In the event of business combinations involving enterprises under common control, the net profits realized prior to the combination by the party being absorbed is: RMB 0, and the net profits realized in the last period by the party being absorbed is: RMB 0. Legal Representative: LIYi Chief Accountant: WANGYingxia Person in Charge of the Accounting Body: WANGYingxia The First Quarter Report in 2023 18 /21 Consolidated Cash Flow Statement For the period from January to March 2023Prepared by: Appotronics Corporation Limited In RMB Audit type: Unaudited Item The First Quarter in 2023 The First Quarter in 2022 I. Cash Flows from Operating Activties: Cash receipts from the sale of goods and the rendering of services 554,311,050.64759,788,663.43 Net increase in customer deposits and deposits from banks and other financial institutions Net increase in loans from the central bank Net increase in taking from banks and other financial institutions Cash receipts from premiums under direct insurance contracts Net cash receipts from reinsurance business Net cash receipts from policyholders’ deposits and investment contract liabilities Cash receipts from interest, fees and commissions Net increase in taking from banks Net increase in financial assets sold under repurchase arrangements Net cash received from securities trading agencies Receipts of tax refunds 1,723,533.491,653,792.53 Other cash receipts relating tooperating activities 33,315,025.4419,019,366.32 Sub-total of cash inflows from operating activities 589,349,609.57 780,461,822.29 The First Quarter Report in 2023 19 /21 Cash payments for goods purchased and services received 404,270,221.28601,723,858.74 Net increase in loans and advances to customers Net increase in balance with the central bank and due from banks and other financial institutions Cash payments for claims and policyholders' benefits under direct insurance contracts Net increase in placements with banks and other financial institutions Cash payments for interest, fees and commissions Cash payments for insurance policyholder dividendsCash payments to and on behalf of employees 136,748,077.35131,556,204.70 Payments of various types of taxes 15,116,610.7721,170,130.47 Other cash payments relating to operating activities 69,545,790.8594,235,050.84 Sub-total of cash outflows from operating activities 625,680,700.25848,685,244.75 Net cash flow from operating activities -36,331,090.68 -68,223,422.47 II. Cash Flows from Investing Activties: Cash receipts from disposals and recovery of investments 390,000,000.00431,000,000.00 Cash receipts from investment income 2,405,845.552,993,304.56 Net cash receipts from disposals of fixed assets, intangible assets and other long-term assets 5,500.0050.00 Net cash receipts from disposals of subsidiaries and other business units Other cash receipts relating toinvesting activities Sub-total of cash inflows from 392,411,345.55433,993,354.56 The First Quarter Report in 2023 20 /21 investing activities Cash payments to acquire or construct fixed assets, intangible assets and other long-term assets 18,023,943.3724,223,261.42 Cash payments to acquire investments 395,000,000.00419,000,000.00 Net increase in pledged loans receivablesNet cash payments for acquisitions of subsidiaries and other business units Other cash payments relating to investing activities Sub-total of cash outflows from investing activities 413,023,943.37443,223,261.42 Net cash flows from investment activities -20,612,597.82 -9,229,906.86 III. Cash Flows from Financing Activities: Cash receipts from capital contributionsIncluding: Cash receipts from capital contributions from minority Other cash receipts relating to financing activities265,000,000.0062,977,252.77 Sub-total of cash inflows from financing activities Cash repayments of borrowings 265,000,000.0062,977,252.77 Cash payments for distribution of dividends or profits or settlement of interest expenses 60,700,002.0039,250,545.00 Including: Payments for distribution of dividends or profits to minority shareholders of subsidiaries 6,782,419.715,435,603.29 Other cash payments relating to financing activities Sub-total of cash outflows from financing activities 7,697,165.456,680,619.57 Net cash flows from financing activities 75,179,587.1651,366,767.86 Other cash receipts relating to financing activities 189,820,412.8411,610,484.91 IV. Effect of Foreign Exchange Rate Changes on Cash and Cash Equivalents -5,331,963.01 -285,263.26 The First Quarter Report in 2023 21 /21 V. Net Increase in Cash and Cash Equivalents 127,544,761.33 -66,128,107.68 Add: Opening balance of cash and cash equivalents 1,254,582,403.12891,195,169.00 VI. Closing Balance of Cash and Cash Equivalents 1,382,127,164.45825,067,061.32 Legal Representative: LIYi Chief Accountant: WANGYingxia Person in Charge of the Accounting Body: WANGYingxia (I) Description of adjustments in opening balances of line items in financial statements of the year due to implementation of new accounting standard since 2023□ Applicable √ N/A Be it hereby announced Board of Directors of Appotronics Corporation Limited April 28,2023