Skyworth : OVERSEAS REGULATORY ANNOUNCEMENT - FINANCIAL INFORMATION REGARDING A SUBSIDIARY OF THE COMPANY

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SKYWORTH GROUP LIMITED

創 維 集 團 有 限 公 司

(Incorporated in Bermuda with limited liability)

(Stock Code: 00751)

OVERSEAS REGULATORY ANNOUNCEMENT

FINANCIAL INFORMATION REGARDING

A SUBSIDIARY OF THE COMPANY

This announcement is made by the board of directors (the "Board") of Skyworth Group Limited (the "Company") pursuant to Rules 13.09(2) and 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules") and the Inside Information Provisions (as defined in the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

Skyworth Group Co., Ltd.* (創維集團有限公司), a wholly-owned subsidiary of the Company established under the laws of the People's Republic of China, has disclosed its an unaudited consolidated financial statements for the three months ended 31 March 2021, which is reproduced in the appendix to this announcement.

The Subsidiary's financial information disclosed in this announcement is not an inducement to subscribe for or purchase any securities of the Company or other members of the Group, and no such inducement is intended. No investment decision should be based on such information.

By order of the Board

Skyworth Group Limited

Lai Weide

Chairman of the Board

Hong Kong, 27 April 2021

As at the date of this announcement, the Board of the Company comprises Mr. Lai Weide as the Chairman of the Board; Mr. Liu Tangzhi as executive director and the chief executive officer; Ms. Lin Wei Ping, Mr. Shi Chi, Mr. Lin Jin and Mr. Lam Shing Choi, Eric as executive directors; and Mr. Li Weibin, Mr. Cheong Ying Chew, Henry and Mr. Hung Ka Hai, Clement as independent non-executive directors.

* For identification purpose only

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Appendix - the Subsidiary's financial information for three months ended 31 March 2021

Consolidated Balance Sheet

Prepared by: 創維集團有限公司		As at 31 March 2021		Unit: RMB
	Assets	Closing balance	Opening Balance	Liabilities and shareholders' equity	Closing balance	Opening Balance
Current Assets:			Current Liabilities:
Bank balances and cash	6,440,283,636.59	6,289,452,755.70	Short-term loan	5,065,146,690.92	5,225,201,540.32
Balances with central bank	496,272,478.20	272,126,712.78	Borrowings from central bank	1,812,250,230.54	1,917,446,972.15
Placements with banks and other financial	893,911,748.67	1,765,410,338.79	Deposits from customers and interbank	10,034,796.93	59,978,361.34
institutions
Financial assets held for trading	810,644,616.10	511,615,724.18	Interbank lending	-	-
Derivative financial assets	8,244,014.33	9,366,411.85	Derivative financial liabilities	40,670,040.49	48,335,243.53
Bills	receivables	3,272,227,805.66	3,635,068,944.58	Financial liabilities held for trading	-	-
Trade	receivables	9,620,118,819.57	9,588,775,997.63	Bills payables	1,697,730,000.34	1,829,262,292.41
Financing balance receivables	158,112,790.26	399,680,411.93	Trade payables	8,916,097,543.15	8,427,650,532.79
Prepayments	578,056,813.35	482,663,281.50	Receipts in advance	23,497,213.68	21,604,612.88
Other	receivables	2,413,502,676.80	1,639,194,546.54	Contract liabilities	3,130,473,016.65	2,722,581,128.36
Redemptory monetary capital for sale	-	-	Wages and salaries payables	685,896,870.85	788,940,612.89
Inventories	12,242,207,098.26	10,519,644,166.21	Taxes and surcharges payables	244,218,265.78	323,239,136.21
Contract assets	-	-	Other payables	4,217,276,800.14	4,364,001,431.89
Held-for-sale assets	-	199,844,394.75	Held-for-sale liabilities	-	83,672,283.91
Non-current assets maturing within one year	1,274,113,086.45	1,129,946,758.04	Non-current liabilities maturing within	662,480,880.93	568,602,293.57
one year
Other	current assets	2,235,982,395.74	1,752,834,757.05	Other current liabilities	547,650,778.88	538,325,356.54
Total Current Assets	40,443,677,979.98	38,195,625,201.53	Total Current Liabilities	27,053,423,129.28	26,918,841,798.79
Non-current Assets：			Non-current Liabilities：
Loan receivables	7,212,994.96	8,397,756.00	Long-term borrowings	5,063,873,319.70	3,057,535,075.69
Finance lease receivables	712,725.91	1,239,714.85	Bonds payables	1,721,006,593.76	1,709,827,642.13
Factoring loan receivable	-	-	Lease liabilities	821,909,314.89	772,547,594.43
Debt investments	472,290,318.28	589,242,712.90	Long-term payables	57,440.00	66,080.00
Other debt investment	-	-	Provisions liabilities	76,294,412.60	82,587,913.03
Long-term receivables	-	-	Deferred income	398,675,130.17	391,844,089.49
Long-term equity investments	453,159,670.41	415,119,064.24	Deferred tax liabilities	158,839,121.39	124,017,294.55
Other equity instrument investments	1,412,707,030.96	1,215,998,718.35	Other non-current liabilities	504,659,809.37	544,127,337.67
Other non-current financial assets	981,993,595.65	1,032,111,808.99	Total Non-current Liabilities	8,745,315,141.88	6,682,553,026.99
Investment properties	1,543,303,308.40	1,563,155,814.91	Total Liabilities	35,798,738,271.16	33,601,394,825.78
Fixed assets	3,519,061,445.15	3,427,451,177.54	Owners' Equity：
Construction-in-progress	961,323,175.04	915,560,489.62	Paid-up capital (Share capital)	1,516,366,055.31	1,516,366,055.31
Right-of-use assets	858,729,379.49	869,695,787.69	Other equity instruments	-	-
Intangible assets	2,399,483,188.13	2,405,503,524.56	Capital reserve	2,498,190,272.84	2,498,826,013.37
Development costs	782,643.19	782,643.19	Less: Treasury stock	-	-
Goodwill	436,129,465.18	436,129,465.16	Other comprehensive income	277,370,650.95	157,751,648.57
Long-term deferred expenses	154,159,854.80	149,282,001.12	Surplus reserve	321,824,692.81	321,824,692.81
Deferred tax assets	527,987,593.99	485,476,666.03	Provision for general risk	117,281,131.04	117,281,131.04
Other non-current assets	243,051,905.73	223,566,270.78	Retained earnings/Undistributed profit	5,064,503,854.22	5,011,790,874.73
Total Non-current Assets	13,972,088,295.27	13,738,713,615.93	Total equity attributable to the	9,795,536,657.17	9,623,840,415.83
				owners of the company
				Non-controlling shareholders' equity	8,821,491,346.92	8,709,103,576.85
				Total Owners' Equity	18,617,028,004.09	18,332,943,992.68
Total Assets	54,415,766,275.25	51,934,338,817.46	Total Liabilities and Owners' Equity	54,415,766,275.25	51,934,338,818.46

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Consolidated income statement

Prepared by: 創維集團有限公司	For the 3 months ended 31 March 2021	Unit: RMB
	Item		Current period	Same period of last year
1. Revenue		9,316,870,112.89	6,409,326,156.87
Less:	Cost of sales		7,984,320,562.74	5,034,907,967.45
	Taxes and surcharges		37,064,119.50	35,041,192.31
	Selling expenses		684,163,002.24	496,512,768.67
	General and administrative expenses		226,164,558.97	241,955,002.95
	Research and development costs		462,728,368.50	352,222,606.42
	Finance costs		91,644,152.05	133,643,975.65
	Including: Interest income		121,207,742.75	134,351,922.00
	Interest expenses		43,916,518.18	24,781,424.66
Add:	Other income		163,358,003.23	146,265,458.94
	Investment income		108,756,894.36	29,909,961.89
	Including: Share of profits of associates and joint ventures	1,090,606.17	(9,855,362.33)
	Income from derecognition of financial assets at amortised cost	(2,311,457.86)	(5,111,443.36)
	Gain (loss) on fair values changes		102,727,776.10	(7,353,391.13)
	Gain (loss) on impairment of assets		633,145.55	(21,513,310.18)
	Gain (loss) on credit impairment		(14,767,766.16)	40,497,589.03
	Gain (loss) on disposal of assets		2,240.19	1,362,608.62
2. Operating Profit		191,495,642.16	304,211,560.59
Add:	Non-operating income		21,228,416.91	7,230,277.50
Less:	Non-operating expenses		12,403,670.89	(229,042.97)
3. Profit before tax		200,320,388.18	311,670,881.06
Less:	Income tax expenses		30,516,921.39	38,749,252.56
4. Profit for the period		169,803,466.79	272,921,628.50
	Profit attributable to equity owners of the company	53,657,725.44	137,457,383.00
	Profit (loss) attributable to non-controlling interests	116,145,741.35	135,464,245.50
5. Net other comprehensive income after tax		163,517,033.99	(240,885,113.53)
Net other comprehensive income after tax attributable to owners of the parent	119,619,002.35	(164,439,900.62)
company
(i)	Other comprehensive income not to be reclassified to profit or loss	120,394,483.53	(165,343,853.62)
	1. Changes in the fair values of other equity instrument investments	120,394,483.53	(165,343,853.62)
(ii) Other comprehensive income to be reclassified to profit or loss	(775,481.18)	903,953.00
	1. Exchange differences arising on translation of financial statements	(3,559,560.39)	903,953.00
	denominated in foreign currencies
	2. Others		2,784,079.21	0.00
Net other comprehensive income after tax attributable to non-controlling	43,898,031.63	(76,445,212.90)
shareholders
6. Total comprehensive income		333,320,500.78	32,036,514.97
Total comprehensive income attributable to owners of the parent company	173,276,727.79	(26,982,517.62)
Total comprehensive income attributable to non-controlling shareholders	160,043,772.98	59,019,032.60

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Consolidated statement of cash flows

Prepared by: 創維集團有限公司	For the 3 months ended 31 March 2021	Unit: RMB
Cash flow items	Current period	Same period of last year
1. Cash flows from operating activities
Proceeds from sales of commodities and rendering of services	11,719,405,878.83	9,030,794,945.28
Net increase in customer deposits and interbank deposits	72,923,644.63	31,902,177.54
Net increase in loan from other financial institutions	-	-
Interests, service charges and commission received	15,715,463.31	17,628,068.63
Taxes and surcharges refunded		365,696,671.36	274,351,517.01
Cash received from other operating activities	1,196,328,090.02	1,592,468,309.23
Subtotal of cash generated from operating activities	13,370,069,748.15	10,947,145,017.69
Payments for commodities and services	10,850,388,867.35	6,810,257,213.65
Net increase in customer deposits received and interbank deposits	49,353,334.40	651,699,179.40
Net increase in borrowings from central bank	102,271,820.68	102,060,534.30
Net increase in loans and advances to customers	80,923,992.42	(290,513,355.26)
Interests, service charges and commission paid	18,933,260.75	2,471,538.00
Cash paid to and for employees		1,091,384,377.98	855,130,452.26
Taxes and surcharges paid		538,426,704.58	371,296,512.05
Cash used in other operating activities		1,976,234,337.50	2,128,054,386.41
Subtotal of cash used in operating activities	14,707,916,695.66	10,630,456,460.81
Net cash flows from operating activities	(1,337,846,947.51)	316,688,556.88
2. Cash flows from investing activities
Proceeds from realisation of investment	169,295,717.58	656,250,594.62
Proceeds from returns on investments		34,506,366.49	52,416,291.06
Net proceeds from disposal of fixed assets, intangible assets and other	6,967,154.22	1,492,834.02
long-term assets
Net proceeds from disposal of subsidiaries and other operating units	-	(18,284.06)
Cash received from other investing activities	71,660,602.06	5,546,630.30
Subtotal of cash generated from investing activities	282,429,840.35	715,688,065.94
Payments for acquisition of fixed assets, intangible assets and other	402,635,678.51	263,724,825.85
long-term assets
Payments for investments		499,395,693.90	846,902,795.84
Net increase in pledged loan		-	-
Payments for acquisition of subsidiaries and other operating units	-	-
Cash used in other investing activities		112,712,645.95	(13,603.64)
Subtotal of cash used in investing activities	1,014,744,018.36	1,110,614,018.05
Net cash flows from investing activities	(732,314,178.01)	(394,925,952.11)
3. Cash flows from financing activities
Cash received from capital contribution	74,891,000.00	29,590,000.00
Cash received from borrowings		4,362,993,840.22	5,292,940,233.67
Cash received from other financing activities	2,390,628.84	776,911,269.42
Subtotal of cash generated from financing activities	4,440,275,469.06	6,099,441,503.09
Repayment of borrowings		2,485,496,150.45	4,228,132,247.80
Distribution of dividends or profits and payments for interest expenses	111,658,929.96	125,287,864.20
Cash used in other financing activities		50,327,499.98	496,068,508.56
Subtotal of cash used in financing activities	2,647,482,580.39	4,849,488,620.56
Net cash flows from financing activities	1,792,792,888.67	1,249,952,882.53
4. Effect of foreign exchange rate changes	(12,011,685.97)	8,414,885.05
5. Net increase in cash and cash equivalents	(289,379,922.82)	1,180,130,372.35
Add: Cash and cash equivalents at beginning of the period	6,930,131,728.29	4,068,030,758.83
6. Cash and cash equivalents at end of the period	6,640,751,805.47	5,248,161,131.18

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