[Definitions](index=4&type=section&id=%E7%AC%AC%E4%B8%80%E8%8A%82%20%E9%87%8A%E4%B9%89) This section defines key terms and abbreviations used within the report [Company Profile and Key Financial Indicators](index=5&type=section&id=%E7%AC%AC%E4%BA%8C%E8%8A%82%20%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B%E5%92%8C%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) The company achieved significant performance growth and a turnaround to profitability in H1 2021, with revenue up 126.44% and net profit attributable to shareholders reaching RMB 2.85 billion [Company Information](index=5&type=section&id=%E4%B8%80%E3%80%81%20%E5%85%AC%E5%8F%B8%E4%BF%A1%E6%81%AF) This section provides basic corporate details including names, legal representative, contact information, and addresses - The company's legal representative is **Chen Zhongguo**[9](index=9&type=chunk) [Key Accounting Data and Financial Indicators](index=6&type=section&id=%E4%B8%83%E3%80%81%20%E5%85%AC%E5%8F%B8%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) The company achieved strong growth and turned profitable in H1 2021, with revenue increasing by 126.44% and net cash flow from operating activities growing by 271.90% Key Accounting Data for H1 2021 | Indicator | Current Period (Jan-Jun) | Prior Year Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | **Operating Revenue (RMB)** | 8,922,050,931.68 | 3,940,198,081.74 | 126.44 | | **Net Profit Attributable to Shareholders (RMB)** | 2,850,492,180.56 | -1,677,731,410.78 | - | | **Net Profit after Non-recurring Items (RMB)** | 2,807,525,393.51 | -1,702,683,320.45 | - | | **Net Cash Flow from Operating Activities (RMB)** | 4,692,798,141.49 | 1,261,843,079.87 | 271.90 | | **Total Assets (RMB)** | 42,955,874,272.77 | 41,101,944,044.46 | 4.51 (vs. Prior Year-End) | | **Net Assets Attributable to Shareholders (RMB)** | 22,528,119,122.47 | 19,677,626,941.91 | 14.49 (vs. Prior Year-End) | Key Financial Indicators for H1 2021 | Indicator | Current Period (Jan-Jun) | Prior Year Period | Change | | :--- | :--- | :--- | :--- | | **Basic Earnings Per Share (RMB/Share)** | 0.794 | -0.468 | - | | **Weighted Average Return on Equity (%)** | 13.51 | -8.54 | Increase of 22.05 p.p. | | **Weighted Average ROE after Non-recurring Items (%)** | 13.30 | -8.67 | Increase of 21.97 p.p. | [Non-recurring Profit and Loss Items and Amounts](index=6&type=section&id=%E4%B9%9D%E3%80%81%20%E9%9D%9E%E7%BB%8F%E5%B8%B8%E6%80%A7%E6%8D%9F%E7%9B%8A%E9%A1%B9%E7%9B%AE%E5%92%8C%E9%87%91%E9%A2%9D) Non-recurring profit and loss for the period totaled RMB 42.97 million, primarily driven by government subsidies - Total non-recurring profit and loss for the reporting period was **RMB 42,966,787.05**, mainly consisting of government subsidies amounting to **RMB 45,707,955.61**[16](index=16&type=chunk)[17](index=17&type=chunk) [Management Discussion and Analysis](index=8&type=section&id=%E7%AC%AC%E4%B8%89%E8%8A%82%20%E7%AE%A1%E7%90%86%E5%B1%82%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) The company capitalized on the display panel market recovery in H1 2021, achieving record performance driven by increased production and sales of its substrate glass and display panel products [Industry and Core Business Overview](index=8&type=section&id=%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E6%89%80%E5%B1%9E%E8%A1%8C%E4%B8%9A%E5%8F%8A%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E6%83%85%E5%86%B5%E8%AF%B4%E6%98%8E) The company's core business involves substrate glass and display panels, featuring a unique "panel + substrate" vertically integrated industrial layout - The company's core business is substrate glass and display panels, forming a **globally unique "panel + substrate" vertically integrated industrial layout**[18](index=18&type=chunk) - The company is currently the only domestic enterprise to have mastered the core technology for **G8.5+ substrate glass manufacturing and achieved mass production**, but faces intensifying competition in the high-end market[19](index=19&type=chunk) [Core Competitiveness Analysis](index=9&type=section&id=%E4%BA%8C%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E6%A0%B8%E5%BF%83%E7%AB%9E%E4%BA%89%E5%8A%9B%E5%88%86%E6%9E%90) The company's core strengths lie in its industrial chain synergy, expanded G8.6 LCD panel production capacity, and mass production of proprietary G8.5+ substrate glass - The company completed the capacity expansion of its **G8.6 LCD panel production line from 120K/month to 170K/month**, making it one of the most competitive lines in the industry[23](index=23&type=chunk) - The company's proprietary high-generation (G8.5+) LCD substrate glass products, developed through the overflow process, have entered the market in volume with quality reaching advanced industry standards[24](index=24&type=chunk) - The company achieved key technological breakthroughs in its self-developed **WOLED new display panels**, providing technical assurance for future business upgrades[25](index=25&type=chunk) [Business Operations Discussion and Analysis](index=10&type=section&id=%E4%B8%89%E3%80%81%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5%E7%9A%84%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) The company achieved record-high performance in H1 2021, with its LCD panel business reaching full capacity and the substrate glass segment achieving operational profitability for the first time - The LCD panel business achieved its **170K/month capacity expansion target ahead of schedule**, maintaining full production and sales with rapid growth in output[26](index=26&type=chunk)[27](index=27&type=chunk) - The company's **second G8.5+ substrate glass production line was ignited ahead of schedule on February 26, 2021**, and quickly reached production capacity, marking a shift from technological enhancement to scale expansion[28](index=28&type=chunk) Revenue Breakdown by Business Segment for H1 2021 | Business Segment | Revenue (RMB in ten thousands) | YoY Growth (%) | | :--- | :--- | :--- | | **Total Operating Revenue** | 892,205 | 126 | | LCD Panel | 849,410 | 153 | | LCD Substrate Glass | 34,047 | 57 | [Financial Analysis of Key Operations](index=11&type=section&id=%E5%9B%9B%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E4%B8%BB%E8%A6%81%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5) Key operating indicators improved across the board, with revenue up 126.44% due to higher volume and prices, while cost of sales only rose 14.75% due to improved efficiency Changes in Key Financial Items for H1 2021 | Item | Current Period (RMB) | Prior Year Period (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | **Operating Revenue** | 8,922,050,931.68 | 3,940,198,081.74 | 126.44 | | **Operating Cost** | 5,000,526,085.06 | 4,357,940,264.38 | 14.75 | | **Net Cash Flow from Operating Activities** | 4,692,798,141.49 | 1,261,843,079.87 | 271.90 | | **Net Cash Flow from Financing Activities** | -1,693,472,219.29 | 752,770,350.59 | -324.97 | - The significant increase in operating revenue was driven by **higher sales volume and prices of LCD panels**; the much smaller increase in cost of sales was due to **lower unit costs resulting from enhanced capacity and yield rates**[31](index=31&type=chunk)[32](index=32&type=chunk) Changes in Key Balance Sheet Items | Item | Current Period-End (RMB) | Prior Year-End (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | **Fixed Assets** | 25,337,389,564.97 | 18,658,498,514.97 | 35.80 | | **Construction in Progress** | 2,414,176,807.64 | 8,618,675,407.50 | -71.99 | | **Taxes Payable** | 328,251,717.28 | 22,357,371.81 | 1,368.20 | - The increase in fixed assets and decrease in construction in progress were mainly due to the **completion and transfer of the G8.6 LCD panel expansion project and the Phase I G8.5 substrate glass project**[35](index=35&type=chunk) [Risk Factors](index=15&type=section&id=%E4%BA%94%E3%80%81%E5%85%B6%E4%BB%96%E6%8A%AB%E9%9C%B2%E4%BA%8B%E9%A1%B9) The company faces risks from upstream raw material shortages, intensified market competition, and rapid technological iteration in the display industry - The company faces systemic industry risks from **supply shortages of upstream raw materials** for display panel manufacturing (e.g, polarizers, substrate glass, driver ICs)[42](index=42&type=chunk) - Industry giants are accelerating localized investment in high-end substrate glass production lines in China, leading to a risk of **further intensified market concentration**[43](index=43&type=chunk) - The company faces **risks from technological iteration** unique to the flat panel display industry, such as the impact of technologies like Oxide TFT, LTPS, and flexible OLED panels on existing production lines[44](index=44&type=chunk) [Corporate Governance](index=16&type=section&id=%E7%AC%AC%E5%9B%9B%E8%8A%82%20%E5%85%AC%E5%8F%B8%E6%B2%BB%E7%90%86) This section covers governance activities during the period, including the annual general meeting, the appointment of a new Board Secretary, and the absence of a profit distribution plan [Changes in Directors, Supervisors, and Senior Management](index=16&type=section&id=%E4%BA%8C%E3%80%81%E5%85%AC%E5%8F%B8%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) Mr. Zheng Tao was appointed as the new Secretary to the Board of Directors on June 18, 2021 - On June 18, 2021, the company appointed **Mr. Zheng Tao as the Secretary to the Board of Directors**[46](index=46&type=chunk) [Profit Distribution Plan](index=16&type=section&id=%E4%B8%89%E3%80%81%E5%88%A9%E6%B6%A6%E5%88%86%E9%85%8D%E6%88%96%E8%B5%84%E6%9C%AC%E5%85%AC%E7%A7%AF%E9%87%91%E8%BD%AC%E5%A2%9E%E9%A2%84%E6%A1%88) The company has no profit distribution or capitalization of capital reserves plan for the reporting period - The company has **no profit distribution or capitalization of capital reserves plan** for the reporting period[47](index=47&type=chunk) [Environment and Social Responsibility](index=18&type=section&id=%E7%AC%AC%E4%BA%94%E8%8A%82%20%E7%8E%AF%E5%A2%83%E4%B8%8E%E7%A4%BE%E4%BC%9A%E8%B4%A3%E4%BB%BB) The company details its environmental management for key polluting subsidiaries and outlines its social responsibility initiatives, including poverty alleviation and employment support [Environmental Information](index=18&type=section&id=%E4%B8%80%E3%80%81%E7%8E%AF%E5%A2%83%E4%BF%A1%E6%81%AF%E6%83%85%E5%86%B5) Two key subsidiaries are listed as major pollutant-discharging units, with all emissions complying with standards and no environmental penalties incurred during the period - The company's holding subsidiaries, **CHG (Hefei) LCD Glass Co., Ltd. and Xianyang Caihong Optoelectronics Technology Co., Ltd.**, are designated as key pollutant-discharging units for wastewater and exhaust gas in Anhui and Shaanxi provinces, respectively[49](index=49&type=chunk) - During the reporting period, pollutant emissions from the key subsidiaries **complied with relevant standards**, with no instances of excessive discharge or administrative penalties for environmental issues[50](index=50&type=chunk)[52](index=52&type=chunk)[53](index=53&type=chunk)[57](index=57&type=chunk) [Social Responsibility](index=21&type=section&id=%E4%BA%8C%E3%80%81%E5%B7%A9%E5%9B%BA%E6%8B%93%E5%B1%95%E8%84%B1%E8%B4%AB%E6%94%BB%E5%9D%9A%E6%88%90%E6%9E%9C%E3%80%81%E4%B9%A1%E6%9D%91%E6%8C%AF%E5%85%B4%E7%AD%89%E5%B7%A5%E4%BD%9C%E5%85%B7%E4%BD%93%E6%83%85%E5%86%B5) The company actively fulfilled its social responsibilities through various poverty alleviation efforts, purchasing over RMB 1.48 million in related products in H1 2021 - In H1 2021, the company purchased **over RMB 1.48 million in poverty alleviation products** and contributed **over RMB 1.25 million to the disability security fund**, actively fulfilling its social responsibilities[59](index=59&type=chunk) [Significant Matters](index=22&type=section&id=%E7%AC%AC%E5%85%AD%E8%8A%82%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) This section covers commitments from the actual controller, related-party transactions, a regulatory warning issued to a supervisor, and significant guarantees provided to subsidiaries [Violations and Penalties](index=23&type=section&id=%E5%85%AB%E3%80%81%E4%B8%8A%E5%B8%82%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%85%B6%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E3%80%81%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E3%80%81%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E6%B6%89%E5%AB%8C%E8%BF%9D%E6%B3%95%E8%BF%9D%E8%A7%84%E3%80%81%E5%8F%97%E5%88%B0%E5%A4%84%E7%BD%9A%E5%8F%8A%E6%95%B4%E6%94%B9%E6%83%85%E5%86%B5) Supervisor Wang Xiaoyang received a regulatory warning letter for improperly reducing his holdings of company shares during the blackout period for the 2020 annual report - Supervisor **Wang Xiaoyang received a warning letter** from the Shaanxi Regulatory Bureau for improperly selling 3,000 company shares on March 17, 2021, during the annual report disclosure blackout period[63](index=63&type=chunk) [Significant Related-Party Transactions](index=23&type=section&id=%E5%8D%81%E3%80%81%E9%87%8D%E5%A4%A7%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) The company engaged in routine related-party transactions, including sales of goods to Ribo Electronics (Hong Kong) and purchases from Xianyang Hongning Key Routine Related-Party Transactions | Related Party | Transaction Type | Transaction Amount (RMB) | | :--- | :--- | :--- | | Ribo Electronics (Hong Kong) Limited | Sales of goods | 258,741,950.28 | | CHG (Hefei) Photovoltaic Co., Ltd. | Energy sales | 50,870,304.95 | | Xianyang Hongning | Purchase of goods | 377,764,195.00 | [Significant Contracts and Their Performance](index=25&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E9%87%8D%E5%A4%A7%E5%90%88%E5%90%8C%E5%8F%8A%E5%85%B6%E5%B1%A5%E8%A1%8C%E6%83%85%E5%86%B5) As of the period-end, the company's total external guarantees amounted to RMB 14.77 billion, representing 65.55% of its net assets - At the end of the reporting period, the company's total guarantees amounted to **RMB 14.77 billion**, representing **65.55% of its net assets**, with guarantees to subsidiaries totaling RMB 14.42 billion[68](index=68&type=chunk) [Changes in Share Capital and Shareholder Information](index=26&type=section&id=%E7%AC%AC%E4%B8%83%E8%8A%82%20%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E5%8F%8A%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) The company's share capital structure remained unchanged, with the top two state-owned shareholders holding a combined 51.39% stake [Shareholder Information](index=26&type=section&id=%E4%BA%8C%E3%80%81%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) As of the period-end, the company had 108,031 shareholders, with Xianyang Financial Holding Group Co., Ltd. being the largest shareholder at 31.01% - As of the end of the reporting period, the total number of common shareholders was **108,031**[70](index=70&type=chunk) Top Three Shareholders | Shareholder Name | Shares Held at Period-End | Percentage (%) | | :--- | :--- | :--- | | Xianyang Financial Holding Group Co., Ltd. | 1,112,759,643 | 31.01 | | Xianyang China Electronics Caihong Group Holding Co., Ltd. | 731,324,842 | 20.38 | | Xianyang Urban Construction Investment Holding Group Co., Ltd. | 319,676,301 | 8.91 | [Changes in Shareholdings of Directors, Supervisors, and Senior Management](index=27&type=section&id=%E4%B8%89%E3%80%81%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E5%92%8C%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E6%83%85%E5%86%B5) Supervisor Wang Xiaoyang reduced his shareholding by 3,000 shares during the reporting period - During the reporting period, Supervisor **Wang Xiaoyang reduced his shareholding by 3,000 shares** through centralized bidding transactions[74](index=74&type=chunk) [Information on Preferred Shares](index=28&type=section&id=%E7%AC%AC%E5%85%AB%E8%8A%82%20%E4%BC%98%E5%85%88%E8%82%A1%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) The company had no preferred shares during the reporting period - The company had **no preferred shares** during the reporting period[75](index=75&type=chunk) [Information on Bonds](index=28&type=section&id=%E7%AC%AC%E4%B9%9D%E8%8A%82%20%E5%80%BA%E5%88%B8%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) The company had no corporate bonds or other debt financing instruments during the reporting period - The company had **no outstanding corporate bonds, company bonds, or convertible bonds** during the reporting period[76](index=76&type=chunk) [Financial Report](index=29&type=section&id=%E7%AC%AC%E5%8D%81%E8%8A%82%20%E8%B4%A2%E5%8A%A1%E6%8A%A5%E5%91%8A) This section presents the complete audited financial statements and accompanying notes for the reporting period [Financial Statements](index=29&type=section&id=%E4%BA%8C%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section contains the consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in equity for H1 2021 [Company Profile](index=42&type=section&id=%E4%B8%89%E3%80%81%20%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5) This section details the company's registration, organizational structure, business scope, and the scope of consolidation, which includes six subsidiaries [Significant Accounting Policies and Estimates](index=43&type=section&id=%E4%BA%94%E3%80%81%E9%87%8D%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%94%BF%E7%AD%96%E5%8F%8A%E4%BC%9A%E8%AE%A1%E4%BC%B0%E8%AE%A1) This section outlines the specific accounting policies and key estimates applied in preparing the financial statements, covering areas such as financial instruments, inventory, and revenue recognition [Taxes](index=60&type=section&id=%E5%85%AD%E3%80%81%E7%A8%8E%E9%A1%B9) This section lists the main applicable taxes and tax rates, including preferential income tax rates for subsidiaries recognized as high-tech enterprises [Notes to Consolidated Financial Statement Items](index=61&type=section&id=%E4%B8%83%E3%80%81%E5%90%88%E5%B9%B6%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E9%A1%B9%E7%9B%AE%E6%B3%A8%E9%87%8A) This section provides detailed breakdowns and explanations for key items in the consolidated financial statements, including assets, liabilities, equity, revenue, and expenses [Interests in Other Entities](index=86&type=section&id=%E5%85%AB%E3%80%81%E5%9C%A8%E5%85%B6%E4%BB%96%E4%B8%BB%E4%BD%93%E4%B8%AD%E7%9A%84%E6%9D%83%E7%9B%8A) This section discloses the company's interests in its six subsidiaries and key joint ventures, including their ownership structure and financial information [Risks Related to Financial Instruments](index=88&type=section&id=%E4%B9%9D%E3%80%81%20%E4%B8%8E%E9%87%91%E8%9E%8D%E5%B7%A5%E5%85%B7%E7%9B%B8%E5%85%B3%E7%9A%84%E9%A3%8E%E9%99%A9) This section describes the company's exposure to market risk (foreign exchange and interest rate), credit risk, and liquidity risk, along with its risk management policies [Related Parties and Related-Party Transactions](index=89&type=section&id=%E5%8D%81%E3%80%81%E5%85%B3%E8%81%94%E6%96%B9%E5%8F%8A%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) This section provides detailed information on the company's related parties and the transactions conducted with them during the period, including sales, purchases, and guarantees [Commitments and Contingencies](index=93&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%20%E6%89%BF%E8%AF%BA%E5%8F%8A%E6%88%96%E6%9C%89%E4%BA%8B%E9%A1%B9) This section discloses significant capital commitments for engineering projects and contingent liabilities related to ongoing antitrust lawsuits concerning color picture tubes (CRTs)

[Important Notice](index=3&type=section&id=Item%20I.%20Important%20Notice) [Guarantee of Report Authenticity and Completeness](index=3&type=section&id=1.1%20Guarantee%20of%20Report%20Authenticity%20and%20Completeness) The company's Board of Directors, Supervisory Board, and senior management ensure the authenticity, accuracy, and completeness of this quarterly report, assuming corresponding legal liabilities; the report was approved by all directors, but financial statements are unaudited - The company's Board of Directors, Supervisory Board, and all directors, supervisors, and senior management guarantee the authenticity, accuracy, and completeness of this quarterly report, free from false records, misleading statements, or major omissions[3](index=3&type=chunk) - This company's Q1 2019 report is unaudited[3](index=3&type=chunk) [Company Profile](index=3&type=section&id=Item%20II.%20Company%20Profile) [Key Financial Data](index=3&type=section&id=2.1%20Key%20Financial%20Data) In Q1 2019, the company's operating revenue surged by **765.38%** to **RMB 1.197 billion** due to mass sales of LCD panel products, yet net profit attributable to shareholders expanded to a **loss of RMB 333 million**, and net cash flow from operating activities turned negative, indicating profitability and cash flow challenges during business expansion Key Financial Data for Q1 2019 | Indicator | Current Period | Prior Period | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue (RMB) | 1,197,125,892.04 | 138,335,844.49 | 765.38 | | Net Profit Attributable to Shareholders (RMB) | -333,108,844.34 | -27,256,994.43 | Not Applicable | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) (RMB) | -344,876,827.91 | -59,643,518.07 | Not Applicable | | Net Cash Flow from Operating Activities (RMB) | -260,405,704.87 | -169,009,895.77 | Not Applicable | | Basic Earnings Per Share (RMB/share) | -0.093 | -0.008 | Not Applicable | | Weighted Average Return on Net Assets (%) | -1.64 | -0.13 | Decreased by 1.51 percentage points | - Total non-recurring gains and losses for the period amounted to **RMB 11.77 million**, primarily comprising government subsidies and debt restructuring gains/losses[5](index=5&type=chunk)[6](index=6&type=chunk) [Shareholder Information](index=4&type=section&id=2.2%20Shareholder%20Information) As of the end of the reporting period, the company had **59,721 shareholders**, with the top three being state-owned legal entities holding over **65%** combined, indicating a highly concentrated ownership structure, including controlling shareholder Xianyang Financial Holding Group Co., Ltd. with **31.01%** - As of the end of the reporting period, the company had a total of **59,721 shareholders**[7](index=7&type=chunk) Top Three Shareholders' Holdings | Shareholder Name | Number of Shares Held | Proportion (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | Xianyang Financial Holding Group Co., Ltd. | 1,112,759,643 | 31.01 | State-owned Legal Entity | | Xianyang China Electronics Rainbow Group Holding Co., Ltd. | 848,915,786 | 23.66 | State-owned Legal Entity | | Xianyang Urban Construction Investment Holding Group Co., Ltd. | 370,919,881 | 10.34 | State-owned Legal Entity | [Significant Events](index=5&type=section&id=Item%20III.%20Significant%20Events) [Analysis of Significant Changes in Key Financial Statement Items and Indicators](index=5&type=section&id=3.1%20Analysis%20of%20Significant%20Changes%20in%20Key%20Financial%20Statement%20Items%2C%20Financial%20Indicators%20and%20Their%20Reasons) During the reporting period, the company's financial position changed significantly, driven by the mass sales of LCD panel products, leading to a **765.38%** increase in operating revenue, alongside substantial rises in operating costs and selling expenses; R&D investment for LCD panel and substrate glass projects grew by **333.81%**, while net cash outflow from operating activities expanded due to increased procurement for production and sales expansion - The substantial growth in operating revenue, operating costs, and selling expenses was primarily due to the mass sales of LCD panel products during the period[13](index=13&type=chunk) - R&D expenses increased by **333.81%** year-on-year, mainly due to the company's increased investment in related R&D to advance LCD panel and LCD substrate glass projects[12](index=12&type=chunk)[13](index=13&type=chunk) Significant Changes in Income Statement Items | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,197,125,892.04 | 138,335,844.49 | 765.38 | | Operating Costs | 1,385,427,168.10 | 117,728,169.97 | 1,076.80 | | Selling Expenses | 13,256,420.50 | 2,016,312.18 | 557.46 | | R&D Expenses | 66,106,435.48 | 15,238,585.82 | 333.81 | Significant Changes in Cash Flow Statement Items | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -260,405,704.87 | -169,009,895.77 | -54.08 | | Net Cash Flow from Investing Activities | -1,675,121,154.86 | -1,085,735,368.13 | -54.28 | | Net Cash Flow from Financing Activities | 590,894,139.22 | -85,466,129.59 | 791.38 | [Appendix](index=8&type=section&id=Item%20IV.%20Appendix) [Financial Statements](index=8&type=section&id=4.1%20Financial%20Statements) This section provides the company's unaudited Q1 2019 consolidated and parent company financial statements, including the balance sheet, income statement, and cash flow statement, serving as the foundational data for all financial analysis [Consolidated Balance Sheet](index=8&type=section&id=Consolidated%20Balance%20Sheet) As of March 31, 2019, the company's total assets were **RMB 40.41 billion**, a **0.75%** increase from the beginning of the year, while total liabilities were **RMB 20.16 billion**, and net assets attributable to shareholders were **RMB 20.09 billion**, a **1.63%** decrease from the beginning of the year Key Items from Consolidated Balance Sheet (March 31, 2019) | Item | Amount (RMB) | | :--- | :--- | | Total Assets | 40,408,950,962.92 | | Total Liabilities | 20,162,797,553.07 | | Total Equity Attributable to Parent Company Shareholders | 20,087,075,232.73 | [Parent Company Balance Sheet](index=10&type=section&id=Parent%20Company%20Balance%20Sheet) As of March 31, 2019, the parent company's total assets were **RMB 21.61 billion**, with long-term equity investments accounting for the majority at **RMB 16.79 billion**, and total liabilities were **RMB 639 million**, indicating a low asset-liability ratio Key Items from Parent Company Balance Sheet (March 31, 2019) | Item | Amount (RMB) | | :--- | :--- | | Total Assets | 21,612,483,432.88 | | Long-term Equity Investments | 16,793,487,744.15 | | Total Liabilities | 638,790,129.08 | [Consolidated Income Statement](index=13&type=section&id=Consolidated%20Income%20Statement) In Q1 2019, the company achieved total operating revenue of **RMB 1.197 billion**, but total operating costs reached **RMB 1.548 billion**, resulting in an operating loss of **RMB 339 million** and a net loss attributable to parent company shareholders of **RMB 333 million** Key Items from Consolidated Income Statement (Q1 2019) | Item | Amount (RMB) | | :--- | :--- | | I. Total Operating Revenue | 1,197,125,892.04 | | II. Total Operating Costs | 1,548,057,904.93 | | III. Operating Profit | -339,193,193.67 | | Net Profit Attributable to Parent Company Shareholders | -333,108,844.34 | [Parent Company Income Statement](index=14&type=section&id=Parent%20Company%20Income%20Statement) In Q1 2019, the parent company's operating revenue was minimal, with profit primarily derived from investment income; net profit for the period was **RMB 3.65 million**, a significant decrease from **RMB 53.97 million** in the prior year, mainly due to reduced investment income Key Items from Parent Company Income Statement (Q1 2019) | Item | Amount (RMB) | | :--- | :--- | | I. Operating Revenue | 96,285.72 | | Investment Income | 6,190,765.73 | | IV. Net Profit | 3,654,847.64 | [Consolidated Cash Flow Statement](index=16&type=section&id=Consolidated%20Cash%20Flow%20Statement) In Q1 2019, the company experienced a net cash outflow of **RMB 260 million** from operating activities and **RMB 1.675 billion** from investing activities, primarily for fixed asset purchases and investments; financing activities generated a net cash inflow of **RMB 591 million** from new borrowings, with cash and cash equivalents totaling **RMB 4.50 billion** at period-end Key Items from Consolidated Cash Flow Statement (Q1 2019) | Item | Amount (RMB) | | :--- | :--- | | Net Cash Flow from Operating Activities | -260,405,704.87 | | Net Cash Flow from Investing Activities | -1,675,121,154.86 | | Net Cash Flow from Financing Activities | 590,894,139.22 | | Cash and Cash Equivalents at End of Period | 4,504,329,219.01 | [Parent Company Cash Flow Statement](index=17&type=section&id=Parent%20Company%20Cash%20Flow%20Statement) In Q1 2019, the parent company's operating cash flow remained largely stable, while investing activities resulted in a net cash outflow of **RMB 458 million**, mainly for investments and related activities; cash and cash equivalents totaled **RMB 775 million** at period-end Key Items from Parent Company Cash Flow Statement (Q1 2019) | Item | Amount (RMB) | | :--- | :--- | | Net Cash Flow from Operating Activities | 4,855.66 | | Net Cash Flow from Investing Activities | -458,377,822.46 | | Net Cash Flow from Financing Activities | -4,989,664.84 | | Cash and Cash Equivalents at End of Period | 774,612,206.99 |