FIYTAPrecisionTechnologyCo.,Ltd.
2024Semi-annualReport
Aug.21,2024
Section1Importantnotes,contentsanddefinitionsTheBoardofDirectors,theBoardofSupervisors,andthedirectors,supervisors,andseniormanagementguaranteethetruthfulness,accuracy,andcompletenessofthesemi-annualreport,withnofalserecords,misleadingstatements,orsignificantomissions,andbearindividualandjointlegalresponsibility.
ZhangXuhua,thepersoninchargeoftheCompany,SongYaoming,theCFO,andTianHui,theFinancialManager(AccountingSupervisor)declaretoensurethatthefinancialcontentinthesemi-annualreportistruthful,accurate,andcomplete.
Alldirectorshaveattendedtheboardmeetingtoreviewthesemi-annualreport
Theforward-lookingdescriptionssuchasfutureplansanddevelopmentstrategiesincludedinthissemi-annualreportdonotconstitutetheCompany'ssubstantivecommitmentstoinvestors.Investorsareadvisedtopayattentiontoinvestmentrisks.
TheCompanyhasdescribedtheexistingmacroeconomicrisks,operationalrisksandotherrisksindetailinthisreport.PleaserefertothesectionontherisksfacedbytheCompanyandthecountermeasuresinSection3Managementdiscussionandanalysis.
TheCompanyplanstopaynocashdividend,nobonusshares,andnoconversionofcapitalstockwithprovidentfunds.
Contents
Section1Importantnotes,contentsanddefinitions ...... 2
Section2Companyprofileandkeyfinancialindicators ...... 6
Section3Managementdiscussionandanalysis ...... 9
Section4Corporategovernance ...... 20
Section5Environmentalandsocialresponsibility ...... 22
Section6Significantevents ...... 23
Section7Changesinsharesandshareholders ...... 29
Section8Relevantinformationaboutpreferredstock ...... 37
Section9Bond-relatedinformation ...... 38
Section10Financialstatement ...... 39
Listofdocumentsforfuturereference
1.Financialstatementscontainingthesignatureandsealofthelegalrepresentative,theprincipalinchargeofaccounting,andtheprincipalofaccountingagency.
2.Theoriginalsofallthecompany'sdocumentsandannouncementspubliclydisclosedinthemediadesignatedbytheCSRCduringthereportingperiod.
3.Fulltextof2024semi-annualreportwiththesignatureofthelegalrepresentative.
Definition
| Definitions | refersto | Description |
| TheCompany,Company,FIYTA | refersto | FIYTAPrecisionTechnologyCo.,Ltd. |
| AviationIndustry | refersto | AviationIndustryCorporationofChina,LTD. |
| AVICINTL | refersto | AVICInternationalHoldingCorporation |
| AVICINTLholding | refersto | AVICInternationalHoldingCo.,Ltd. |
| AVICFinance | refersto | AVICFinanceCo.,Ltd. |
| PhaseIIrestrictedstockincentiveplan | refersto | 2018A-SharesRestrictedStockIncentivePlan(PhaseII) |
Section2CompanyprofileandkeyfinancialindicatorsI.CompanyProfile
| Stockname | FIYTA,FIYTAB | Stockcode | 000026,200026 |
| Stocknamebeforechange(ifany) | None | ||
| Stocklistingstockexchange | ShenzhenStockExchange | ||
| ChinesenameoftheCompany | FIYTAPrecisionTechnologyCo.,Ltd. | ||
| ChineseshortnameoftheCompany(ifany) | TheFIYTAcompany | ||
| ForeignnameoftheCompany(ifany) | FIYTAPrecisionTechnologyCo.,Ltd. | ||
| ForeignshortnameoftheCompany(ifany) | FIYTA | ||
| LegalrepresentativeoftheCompany | ZhangXuhua | ||
2.Contactpersonandcontactinformation
| SecretaryoftheBoardofDirectors | Securitiesaffairsrepresentative | |
| Name | SongYaoming | XiongYaojia |
| Contactaddress | Floor20,FiytaTechnologyBuilding,GaoxinSouth1stRoad,NanshanDistrict,Shenzhen | 18thFloor,FiytaTechnologyBuilding,GaoxinSouth1stRoad,NanshanDistrict,Shenzhen |
| Telephone | 0755－86013669 | 0755－86013669 |
| Fax | 0755－83348369 | 0755－83348369 |
| investor@fiyta.com.cn | investor@fiyta.com.cn |
3.Othercircumstances
1.Companycontactinformation
TheCompany'sregisteredaddress,officeaddressandzipcode,website,e-mail,etc.remainedunchangedduringthereportingperiod.Fordetails,pleaserefertothe2023AnnualReport.
2.Informationdisclosureandstoragelocation
Thewebsiteofthestockexchangeandthenameandaddressofthemediawherethecompanydisclosesthesemi-annualreport,andtheplacewherethecompany'ssemi-annualreportispreparedremainedunchangedduringthereportingperiod.Fordetails,pleaserefertothe2023AnnualReport.
3.Otherrelevantinformation
Notapplicable
4.MainaccountingdataandfinancialindicatorsDoestheCompanyneedtoretrospectivelyadjustorrestatetheaccountingdatainpreviousyears?No
| Thecurrentreportingperiod | Sameperiodlastyear | Changeinthecurrentreportingperiodcomparedtothesameperiodlastyear | |
| Operatingrevenue(RMB) | 2,076,397,911.32 | 2,364,505,262.56 | -12.18% |
| Netprofitattributabletoshareholdersofthelistedcompany(RMB) | 147,138,482.34 | 187,395,067.23 | -21.48% |
| Netprofitattributabletoshareholdersofthelistedcompanyexcludingnon-recurringgainsandlosses(RMB) | 140,445,221.81 | 177,352,543.66 | -20.81% |
| Netcashflowfromoperatingactivities(RMB) | 136,530,796.52 | 344,659,843.62 | -60.39% |
| Basicearningspershare(RMB/share) | 0.3568 | 0.4517 | -21.01% |
| Dilutedearningspershare(RMB/share) | 0.3564 | 0.4517 | -21.10% |
| Weightedaveragereturnonequity | 4.36% | 5.80% | -1.44% |
| Endofthecurrentreportingperiod | Endofthepreviousyear | Changeattheendofthecurrentreportingperiodcomparedtotheendofthepreviousyear | |
| Totalassets(RMB) | 4,147,991,663.46 | 4,204,260,897.08 | -1.34% |
| Netassetsattributabletoshareholdersofthelistedcompany(RMB) | 3,315,327,996.53 | 3,333,805,752.19 | -0.55% |
5.Differencesinaccountingdataunderdomesticandoverseasaccountingstandards
1.DifferencesinnetprofitandnetassetsinthefinancialreportsdisclosedinaccordancewithinternationalaccountingstandardsandChineseaccountingstandardsNotapplicable
2.DifferencesinnetprofitandnetassetsinthefinancialreportsdisclosedinaccordancewithoverseasaccountingstandardsandChineseaccountingstandardsNotapplicable
6.Non-recurringgainsandlossesitemsandamounts
Unit:RMB
| Item | Amount | Notes |
| Loss/gainondisposalofnon-currentassets(includingreversalofprovisionforassetimpairment) | 2,906,210.67 | |
| Governmentgrantsrecognizedincurrentprofitandloss(excludingthosecloselyrelatedtotheCompany'snormaloperations,incompliancewithnationalpolicies,entitledinaccordancewithsetstandards,andhavingasustainedimpactontheCompany'sprofitandloss) | 1,414,439.38 | |
| Reversalofprovisionforimpairmentofreceivablessubjecttoindividualimpairmenttesting | 3,302,930.73 | |
| Otheroperatingincomesandexpensesexcludingtheaboveitems | 1,099,305.50 | |
| Less:Incometaximpact | 2,029,625.75 | |
| Total | 6,693,260.53 |
Specificcircumstancesofotheritemsthatmeetthedefinitionofnon-recurringgainsandlosses:
NotapplicableExplanationofcircumstanceswhereitemslistedasnon-recurringgainsandlossesinExplanatoryAnnouncementNo.1onInformationDisclosureofCompaniesIssuingSecuritiesPublicly-Non-recurringGainsandLossesareclassifiedasrecurringNotapplicable
Section3Managementdiscussionandanalysis
1.MainbusinessoftheCompanyduringthereportingperiod
(1)MainbusinessTheCompanywasfoundedanddevelopedfromaviationprecisiontechnologyandmaterialtechnology.Adheringtothevaluesof"brandleadership,customerorientation,valuecreation,cooperativeresponsibilityandlearninginnovation",withthemissionof"inheritingthespiritof'aircraftforthecountry'andcreatingaqualitylife",itfocusesonthewatchindustry,formingacorebusinesslayoutofself-ownedwatchbrandsandfamouswatchretailchannels.Inaddition,thecompanyactivelyexploresandcultivatesnewbusinessessuchasprecisiontechnologyandsmartwear,andisinastageofcontinuousdevelopment.TheCompanyisdeeplyengagedintheconstructionofprofessionalwatchmakingcapabilitiesandbrandoperations,andhasanumberofself-ownedbrandssuchas"FIYTA","EMILECHOURIET",coveringdifferentdimensionssuchashigh-end,massprofessional,fashionandcool.Amongthem,"FIYTA,"acoreproprietarybrand,positionsitselfasahigh-qualityChinesewatchbrandfeaturingaerospacewatches.Adheringtotheconceptof"national"asthecoreand"trendy"astheform,itcontinuestocreatedistinctivefeatures,upgradingtowards"youthfulness,high-end,andmainstream."Atthesametime,itcontinuouslyincreasesinvestmentintechnologicalinnovationfieldssuchasmovementandtechnologyapplications.Leveragingtheadvantagesoftechnologyandquality,graduallyestablishingaleadingpositioninthedomesticindustryandexpandingitsbrandinfluence.
Inordertoseizetheopportunitiesinthedomesticfamouswatchmarketandpromotetherapiddevelopmentofitsownbrand,theCompanyestablishedthe"Harmony"famouswatchretailchannel."Harmony"isdedicatedto"becomingthepremiercomprehensiveserviceproviderforluxurywatches."Throughlong-termandin-depthcooperationwithnumerousprestigiouswatchgroupsandbrands,ithasrefinedindustry-leadingoperationalmanagementandcustomerservicecapabilities,establishingitselfasoneofthetopprofessionalhigh-endluxurywatchchainbrandsinChina.
Inrecentyears,theCompanyhasadheredtothedevelopmentprincipleof"sharedtechnology,sharedindustryroots,andalignedvalue."Leveragingitsstrengthinprecisiontechnologyandindustryaccumulation,ithasexpandedintotheprecisiontechnologyandsmartwearablesectors,whichhavenowtakenshape.
(2)Itsindustrysituation
Duringthereportingperiod,theNationalBureauofStatisticsannouncedthatthetotalretailsalesofconsumergoodsinthefirsthalfoftheyearincreasedby3.7%YoY.Thepercapitadisposableincomeofresidentsnationwideincreasedby5.4%YoY.Thedomesticconsumptionmarketsizeandresidents'consumptioncapacityhavebothimproved,indicatingastableandpositivemarketoutlook.Fromtheperspectiveofconsumptionstructure,themainconsumptionisstillconcentratedinthefieldofdailynecessities,thelarge-scaleandoptionalconsumptionitemsarerelativelyweak;Fromtheperspectiveofconsumptionchannels,newofflineformatsandonlinechannelshavegrownrapidly,whiletraditionalofflinedepartmentstores,brandstoresandotherchannelshavedeclined.Againstthisbackdrop,withtheiterationofdomesticconsumerdemandandemergingtechnologies,thetraditionalwatchconsumptionmarketisundersignificantpressure.AccordingtotheFederationoftheSwissWatchIndustry,cumulativeexportstomainlandChinainthefirsthalfoftheyeardecreasedby21.6%year-on-year.Overallsalesofwatchesacrossvariouspricesegmentshavedeclined,intensifyingcompetitionandnotabledifferentiationamongbrands.Thewearabledeviceconsumermarketisdevelopingrapidly.IDCConsultingreleasedthatthedomesticsmartwatchshipmentsinQ1increasedby54.1%YoY,showinganoptimistictrend.TheCompanywillcontinueto
deepencustomerresearch,enhancethecorecompetitivenessoftraditionalwatchbusiness,andactivelypromotethedevelopmentofnewbusinesssuchassmartweartocopewithmarketchanges.
2.Analysisofcorecompetitiveness
(1)BrandoperationandmanagementcapabilitiesofthewholeindustrychainTheCompanypossessesintegratedcapabilitiesacrosstheentireindustrychain,includingresearchanddevelopment,design,manufacturing,sales,andservice.Throughresourceintegrationandbusinesssynergy,itcontinuouslystrengthensthedifferentiationofitscoreproprietarybrand"FIYTA".Duringthereportingperiod,"FIYTA"brandwonmultipleawardsincludingthePlatinumandGoldawardsatthe2024MUSEDesignAwards,creditedtoitsinnovativeproductlineup.Withhigh-qualityoperationalmanagementone-commerceplatforms,thecompanyhasachievedmultipleaccoladesincluding"2023AnnualOutstandingMerchantintheJewelryandGemstoneIndustry,""2023TmallNewTrendTrackAward,""TmallAnnualLiveStreamingAward,""JDAnnualTrendNewProductAward,"and"DouyinAnnualBrandinMen'sFashionApparelIndustry."Theseachievementshavesignificantlyboostedthebrand'sinfluenceandvisibility.
(2)RefinedchanneloperationandmanagementcapabilitiesTheCompanymaintainssaleschannelscoveringnationwideandselectoverseascountriesandregions.Leveragingadvancedchanneloperationsmanagement,itcontinuouslyoptimizesstorestructuresandenhancesoperationalefficiency.Duringthereportingperiod,Harmonycompanywasrecognizedasoneofthe"TopTenEnterprisesinNanshanDistrictforWholesaleandRetailIndustryValueAddedin2023"duetoitsoutstandingchanneloperationsandcomprehensivecapabilities.
(3)EmpoweringthedigitalcapabilitiesofthebusinessTheCompanypossessesadigitalretailsystem,CRMsystem,SAPsystem,andcloudstoresamongotherdigitalplatforms.Bydeepeningdigitalapplicationsacrossresearchanddevelopment,design,production,sales,andservice,itempowersbusinessdevelopmentandenhancesefficiency.Continuousstrengtheningofprivatedomainoperationsandintegrationofonlineandofflinechannelsarepriorities,aimedatimprovingcustomerlifecyclemanagementcapabilities.Duringthereportingperiod,coremetricssuchasnewcustomerconversionsandrepeatpurchasesbyexistingcustomershaveshownsustainedimprovement.
(4)CoretechnicalcapabilitiesofprecisiontechnologyAsanationalenterprisetechnologycenterwithresearchandproductionplatformsinShenzhenandSwitzerland,thecompanyhasbeenactivelyadvancingbreakthroughsinmovementtechnologyandapplicationsoftechnologymaterials.Ithasacceleratedthelocalizationofkeycomponentssuchasmovements.Duringthereportingperiod,thecompanyachievedsignificantrecognitionbyleadingthecompletionofthefirstinternationalstandardISO14368-4:2020inthewatchindustryinitiatedandledbyChina.ThisaccomplishmentearnedthecompanytheSecondPrizeoftheScienceandTechnologyProgressAwardfromtheChinaLightIndustryFederation.Withthecontinuousdemonstrationandleadingroleintheindustry,ithelpstoimprovethestandardizationlevelintheindustry,andwasawardedthe"ShenzhenStandardInnovationDemonstrationBase".
(5)ConstructioncapacityofprofessionaltalentteamTheCompanymaintainsaprofessionalandstableworkforce,continuallyinvestingintalentdevelopmentbasedonthephilosophyof"valuecreation."Itexplorescomprehensiveandflexibleincentivemechanisms,fosteringnumerousindustry-leadingrepresentativesincoreareassuchasdesign,researchanddevelopment,andmanufacturing.
3.AnalysisofmainbusinessOverview
In1H24,theCompanyadheredtotheprincipleofhigh-qualitydevelopment,continuedtoimplementthebusinessstrategiesof"seekingprogresswhilemaintainingstability"and"defensivecounterattack",carriedoutvariousoperationsandmanagementworkinanorderlymanner,andpromotedthesustainabledevelopmentofvariousbusinesses.Duringthereportingperiod,undertheenvironmentofinsufficientdemandinthewatchconsumermarketandweakconsumptionexpectations,thecompanyachievedoperatingincomeofnearlyRMB2,076,400,000,decreasedby12.18%YoY;ThetotalprofitwasaboutRMB193,680,000,decreasedby20.79%YoY;Atthesametime,theCompanyfocusescloselyonrefinedoperationalmanagementandriskcontrol.Theyear-endasset-liabilityratiostandsat20.07%,withnetcashflowgeneratedfromoperatingactivitiesamountingtonearlyRMB137,000,000.Theoperationalactivitiesremainrobust,andoverallbusinessrisksarewell-managedandcontrolled.Facingachallengingmarketenvironment,theCompanyremainssteadfastinitsdevelopmentconfidenceandprioritizesshareholderreturns.Ithassuccessfullyimplementedthe2023annualcashdividendplan,distributingRMB4.00per10shares(taxinclusive)toallshareholders.Additionally,theCompanyhasexecutedaplantorepurchaseandcancel9.3558millionsharesofdomesticallylistedforeigncapitalshares(B-shares).Duringthereportingperiod,theCompany'smainbusinessinitiativesareasfollows:
(1)Continuetopromotetheupgradingofbrandpositioningandcreatebranddifferentiation
Duringthereportingperiod,the"FIYTA"brand,positionedasahigh-qualityChinesewatchbrandwithaerospace-themedwatches,focusedonitscoreproductlineup.Itconcentratedresourcesonlaunchingseveralaerospace-themedwatches,includingtheYun-20Cross-StraitTime,Zhi-20TriumphEdition,NationalTideGoldenDragonLimitedEdition,"SpaceStation"EVAEdition,and"SpaceWalk"ReturnCabinEdition.Integratingmarketingandsalesthroughnewmediaplatforms,theCompanyconductedvariousactivitiestoenhancebrandvisibility.TheseincludedappearancesatMilanFashionWeek,livestreamingeventslike"WalkingwithBrilliance,"participationinthe2024ChinaBrandDay,andtheappointmentofXiaZhiguangasbrandambassador.Specialmarketingcampaignssuchas"SparklingGold"andbrandoriginlivestreamswerealsolaunched.Theseeffortsacrossmultiplechannelssuccessfullycreatedpopularproductslikethe"LittleGoldenWatch"andboostedthebrand'spresencesignificantly.
(2)Continuetopromotetheoptimizationofchannelstructureandgivefullplaytotheadvantagesofoperationandmanagement
Duringthereportingperiod,the"FIYTA"brandunderwentacompleteupgradeofitsstoreimage,focusingonaerospace-themedstoresandcomprehensiveflagshipstoresliketheBoGuanseries.TheCompanycontinuedtooptimizeitschannelstructurebyestablishingpresenceinmainstreamshoppingcentersinfirstandsecondtiercities.Additionally,itopened17newaerospace-themedstores,aimingtoenhancebrandvisibilityandconsumerengagementthroughinnovativeretailexperiences.UtilizinglocallifestyleandDouyinlivestreaming,wehavesignificantlyenhancedourstore'snewmediaoperationalcapabilities.Wecontinuetostrengthenonlineproductdevelopmentandbuildaself-operatedlivestreamingmatrix.Duringthe"618"shoppingfestival,oure-commerceGMVachievedgrowthagainstthetrend,rankingfirstnationwideinwatchsales,withourhitproduct,"LittleGoldenWatch,"makingittothetopofmajorplatforms'bestsellerlists.Activelyexpandduty-freechannels,andexplorecooperationopportunitiesinairports,ports,cruiseshipsandotherduty-freechannels.
Theretailof"Harmony"watchescontinuestofocusonthefourelementsof"city,brand,businessformatandpartner"tofosterthehigh-qualitydevelopmentofmid-to-high-endbrandsandpremiumdistributionchannels.Deepenandrefineexcellentoperationinanall-roundway,andsystematicallyimproveoperationalefficiencyfromonline,offline,stores,brands,members,servicesandotherdimensions.
(3)Continuetoincreaseinvestmentinscientificandtechnologicalinnovationandstrengthenthehardcorestrengthofprecisiontechnology
Duringthereportingperiod,theCompanyincreaseditsinvestmentinareassuchasmovementtechnology,technologymaterialapplications,andprecisiontimingequipment.Buildingonthepartiallocalizationofmovementsinsomeproducts,thecompanycontinuedtoadvancethelocalizationofmovementsandthedevelopmentofkeycomponentslikebalancesprings.
(4)Continuetopromotedigitaltransformationanddeepenplatformapplication
Duringthereportingperiod,theCompanycontinuedtocarryoutdigitaloperations,improvinganditeratingthedigitalretailsystem;Focusingoncustomerneedsandprofiles,optimizedthememberlifecyclemodeltoenhancecoremetricssuchasconversionofpotentialcustomersandretentionofexistingcustomers,ensuringcontinuousimprovement.Continuingwithprivatedomainoperations,leveragedmini-programstocultivateprivatedomaintrafficanddevelopactivitieslikeprivatedomaingrouppurchases.Continuetopromotetheintegrationofonlineandoffline,attractcustomerstotheofflinestoresthroughonlinecustomeracquisition,andlaunchbusinessessuchasTikTokLocalLifeandJDtoHome.
(5)Continuetopromotetheexplorationofnewbusinessandcultivatenewgrowthpoints
Duringthereportingperiod,theCompanystrengtheneditsprecisiontechnologybusiness,enhancingitstechnicalcapabilitiestomeetthedemandsofcomplexandhigh-precisionproducts.Italsoexpandedintonewcustomersegments.Thesmartwearablebusinesscontinuedtoadvancewithupgradesinproductandtechnologicalcapabilities.Therewasastrongemphasisonenhancingbothsoftwareandhardwaretechnologies,alongwithnewproductdevelopment.Underthe"Jeep"brand,newproductssuchasthecurvedscreensquaresmartwatchintegratingAItechnologywerelaunched.Meanwhile,the"ADASHER"brandsawsteadysalesgrowthonplatformslikeTikTokandKuaishou.Bothnewbusinesssegmentsachievedincreasedrevenueduringthereportingperiod.
YoYchangesinmainfinancialdata
Unit:RMB
| Thecurrentreportingperiod | Sameperiodlastyear | YoYincrease/decrease | Reasonforchange | |
| Operatingrevenue | 2,076,397,911.32 | 2,364,505,262.56 | -12.18% | Notapplicable |
| Operatingcost | 1,304,482,455.55 | 1,512,527,481.83 | -13.75% | Notapplicable |
| SellingandDistributionExpenses | 449,785,002.40 | 456,273,629.20 | -1.42% | Notapplicable |
| GeneralandAdministrativeExpenses | 89,213,932.54 | 104,621,729.61 | -14.73% | Notapplicable |
| Financialexpenses | 9,622,797.59 | 12,188,216.82 | -21.05% | Notapplicable |
| Incometaxexpense | 46,545,035.11 | 57,131,519.56 | -18.53% | Notapplicable |
| R&Dinvestment | 27,525,998.33 | 28,161,470.54 | -2.26% | Notapplicable |
| NetCashFlowsfromOperatingActivities | 136,530,796.52 | 344,659,843.62 | -60.39% | Mainlyduetoadecreaseincollectionduetothedeclineinsalesduringthereportingperiod. |
| Netcashflowsfromoperatingactivities | -83,646,605.14 | -36,270,086.24 | -130.62% | Mainlyduetoanincreaseinfixeddepositsduringthe |
| reportingperiod. | ||||
| Netcashflowsfromfinancingactivities | -153,122,505.66 | -102,629,832.84 | -49.20% | MainlyduetoaYoYincreaseindividendsduringthereportingperiod. |
| Netincreaseincashandcashequivalents | -100,273,144.58 | 205,621,331.48 | -148.77% | Mainlyduetoadecreaseincollectionandanincreaseindividendsduringthereportingperiod. |
Significantchangesinthecompany'sprofitcompositionorprofitsourceduringthereportingperiodNotapplicableCompositionofrevenue
Unit:RMB
| Thecurrentreportingperiod | Sameperiodlastyear | YoYincrease/decrease | |||
| Amount | Proportioninrevenue | Amount | Proportioninrevenue | ||
| Totaloperatingrevenue | 2,076,397,911.32 | 100% | 2,364,505,262.56 | 100% | -12.18% |
| Byindustry | |||||
| Watchbusiness | 1,910,698,928.67 | 92.03% | 2,210,238,499.43 | 93.48% | -13.55% |
| Precisiontechnologybusiness | 88,908,749.85 | 4.28% | 67,709,263.28 | 2.86% | 31.31% |
| Leasingbusiness | 70,906,534.63 | 3.41% | 78,768,763.29 | 3.33% | -9.98% |
| Other | 5,883,698.17 | 0.28% | 7,788,736.56 | 0.33% | -24.46% |
| Byproduct | |||||
| Watchbrandbusiness | 384,620,560.57 | 18.52% | 396,794,035.90 | 16.78% | -3.07% |
| Watchretailservicebusiness | 1,526,078,368.10 | 73.51% | 1,813,444,463.53 | 76.70% | -15.85% |
| Precisiontechnologybusiness | 88,908,749.85 | 4.28% | 67,709,263.28 | 2.86% | 31.31% |
| Leasingbusiness | 70,906,534.63 | 3.41% | 78,768,763.29 | 3.33% | -9.98% |
| Other | 5,883,698.17 | 0.28% | 7,788,736.56 | 0.33% | -24.46% |
| Byregion | |||||
| SouthChina | 985,168,650.24 | 47.44% | 1,085,243,222.03 | 45.89% | -9.22% |
| NorthwestChina | 299,728,304.42 | 14.44% | 364,119,542.91 | 15.40% | -17.68% |
| NorthChina | 67,039,768.59 | 3.23% | 127,379,519.35 | 5.39% | -47.37% |
| EastChina | 258,928,020.96 | 12.47% | 293,815,408.18 | 12.43% | -11.87% |
| NortheastChina | 175,024,033.83 | 8.43% | 183,610,107.98 | 7.77% | -4.68% |
| SouthwestChina | 290,509,133.28 | 13.99% | 310,337,462.11 | 13.12% | -6.39% |
Theindustry,productorregionsituationthataccountsformorethan10%ofthecompany'srevenueoroperatingprofit
Unit:RMB
| Operatingrevenue | Operatingcost | Grossprofitrate | Increaseordecreaseinrevenuecomparedwiththesameperiodlast | Increase/decreaseinoperatingcostscomparedwiththesame | Increase/decreaseingrossprofitratecomparedwiththesameperiodlast |
| year | periodlastyear | year | ||||
| Byindustry | ||||||
| Watchbusiness | 1,910,698,928.67 | 1,208,410,271.38 | 36.76% | -13.55% | -15.79% | 1.68% |
| Leasingbusiness | 70,906,534.63 | 18,450,234.17 | 73.98% | -9.98% | -5.58% | -1.21% |
| Byproduct | ||||||
| Watchbrandbusiness | 384,620,560.57 | 121,046,208.60 | 68.53% | -3.07% | -3.39% | 0.11% |
| Watchretailservicebusiness | 1,526,078,368.10 | 1,087,364,062.78 | 28.75% | -15.85% | -16.97% | 0.97% |
| Leasingbusiness | 70,906,534.63 | 18,450,234.17 | 73.98% | -9.98% | -5.58% | -1.21% |
| Byregion | ||||||
| SouthChina | 985,168,650.24 | 623,886,476.28 | 36.67% | -9.22% | -8.82% | -0.28% |
| NorthwestChina | 299,728,304.42 | 183,377,627.30 | 38.82% | -17.68% | -22.12% | 3.49% |
| NorthChina | 67,039,768.59 | 36,074,332.54 | 46.19% | -47.37% | -55.25% | 9.47% |
| EastChina | 258,928,020.96 | 163,307,282.94 | 36.93% | -11.87% | -15.30% | 2.55% |
| NortheastChina | 175,024,033.83 | 115,936,550.01 | 33.76% | -4.68% | -6.53% | 1.31% |
| SouthwestChina | 290,509,133.28 | 181,900,186.48 | 37.39% | -6.39% | -6.91% | 0.35% |
Ifthestatisticalcaliberofthecompany'smainbusinessdataisadjustedduringthereportingperiod,thecompany'slatestperiodmainbusinessdataadjustedaccordingtothecaliberattheendofthereportingperiodNotapplicable
4.Analysisofnon-mainbusiness
Notapplicable
5.Analysisofassetsandliabilities
1.Majorchangesinthecompositionofassets
Unit:RMB
| Endofthecurrentreportingperiod | Endoflastyear | Increaseordecreaseinproportion | Descriptionofsignificantchanges | |||
| Amount | ProportionintotalassetsScale | Amount | ProportionintotalassetsScale | |||
| Cashandbankbalances | 404,356,009.13 | 9.75% | 504,629,153.71 | 12.00% | -2.25% | Notapplicable |
| Accountsreceivable | 355,483,465.81 | 8.57% | 323,142,761.64 | 7.69% | 0.88% | Notapplicable |
| Contractassets | 0.00 | 0.00% | 0.00 | 0.00% | 0.00% | Notapplicable |
| Inventories | 2,128,331,242.49 | 51.31% | 2,100,666,175.28 | 49.97% | 1.34% | Notapplicable |
| Investmentproperties | 352,408,837.92 | 8.50% | 360,255,832.14 | 8.57% | -0.07% | Notapplicable |
| Long-termequityinvestments | 51,952,479.36 | 1.25% | 51,862,607.30 | 1.23% | 0.02% | Notapplicable |
| Fixedassets | 345,651,268.72 | 8.33% | 355,785,354.68 | 8.46% | -0.13% | Notapplicable |
| Constructioninprogress | 0.00 | 0.00% | 0.00 | 0.00% | 0.00% | Notapplicable |
| Right-of-useassets | 109,386,646.99 | 2.64% | 109,452,481.64 | 2.60% | 0.04% | Notapplicable |
| Short-termloans | 320,207,333.32 | 7.72% | 250,187,763.87 | 5.95% | 1.77% | Notapplicable |
| Contractliabilities | 18,804,742.85 | 0.45% | 12,286,243.62 | 0.29% | 0.16% | Notapplicable |
| Long-termloans | 0.00 | 0.00% | 0.00 | 0.00% | 0.00% | Notapplicable |
| Leaseliabilities | 38,967,635.39 | 0.94% | 43,526,352.52 | 1.04% | -0.10% | Notapplicable |
2.Mainoverseasassetsstatus
Notapplicable
3.AssetsandliabilitiesmeasuredatfairvalueNotapplicable
4.RestrictionsstatusonassetsrightsasoftheendofthereportingperiodNotapplicable
6.Analysisofinvestmentstatus
1.Generalsituation
| Investmentamountduringthereportingperiod(RMB) | Investmentamountinthesameperiodoflastyear(RMB) | Changerange |
| 0.00 | 0.00 | 0.00% |
2.Significantequityinvestmentacquiredduringthereportingperiod
Notapplicable
3.Significantnon-equityinvestmentsinprogressduringthereportingperiod
Notapplicable
4.Investmentinfinancialassets
(1)SecuritiesinvestmentsituationNotapplicable
(2)DerivativesinvestmentsituationNotapplicable
5.Useofraisedfunds
Notapplicable
7.Saleofmajorassetsandequity
1.Saleofmajorassets
Notapplicable
2.SaleofsignificantequityNotapplicable
8.Analysisofmajorholdingandparticipatingcompanies
Majorsubsidiariesandjoint-stockcompanieswithanimpactofmorethan10%onthecompany'snetprofit
Unit:RMB
| Companyname | Companytype | Mainbusiness | RegisteredCapital | Totalassets | Netassets | Operatingrevenue | Operatingprofit | Netprofit |
| ShenzhenHarmonyWorldWatchCentreCo.,Ltd. | Subsidiary | Purchaseandsaleofclocks,watchesandspareparts,andmaintenanceservices. | 600,000,000.00 | 2,146,593,585.53 | 1,267,998,351.53 | 1,491,476,340.69 | 140,134,226.41 | 105,581,743.58 |
| FIYTASalesCo.,Ltd. | Subsidiary | Design,R&Dandsalesofclocksandwatchesandspareparts. | 450,000,000.00 | 460,179,857.41 | 332,262,404.66 | 220,462,510.20 | -427,183.97 | -458,594.99 |
| ShenzhenFIYTAPrecisionTechnologyCo.,Ltd. | Subsidiary | Manufactureclocksandwatchesandspareparts. | 180,000,000.00 | 370,702,161.73 | 289,668,637.64 | 158,313,978.09 | 1,707,991.78 | 3,049,605.05 |
| ShenzhenFIYTASTDCo.,Ltd. | Subsidiary | Productionandprocessingofprecisionspareparts. | 50,000,000.00 | 202,513,032.94 | 168,548,184.30 | 99,625,145.51 | 5,407,080.74 | 5,344,683.21 |
| FIYTA(HONG | Subsidiar | Tradeand | 137,737,520.00 | 276,082,909.22 | 247,632,736.89 | 35,039,348.10 | 2,389,182.26 | 2,246,702.64 |
| KONG)LIMITED | y | investmentinwatches,clocksandaccessories. | ||||||
| EmileChourietHorologe(Shenzhen)Co.,Ltd. | Subsidiary | Design,R&Dandsalesofclocksandwatchesandspareparts. | 41,355,200.00 | 128,961,909.87 | 56,740,989.91 | 33,412,304.61 | 4,271,470.01 | 2,527,225.93 |
AcquisitionanddisposalofsubsidiariesduringthereportingperiodNotapplicableDescriptionofmainholdingandparticipatingcompaniesNotapplicable
9.Structuredentitiescontrolledbythecompany
Notapplicable
10.Risksfacedbythecompanyandcountermeasures
(1)ConsumermarketriskAtpresent,thedomesticconsumermarketisinaweakrecoverystate,andresidents'consumptionpreferenceisrationalandcautious.Thewatchconsumptionindustryinwhichthecompanyislocatedisstillunderpressure.Ontheonehand,thecompanywillcontinuetofocusonitscorebusiness,intensifyingeffortsindifferentiatedproductdevelopmentandincreasingtheproportionofaerospaceseriesproducts.Itwillstrengthenprecisionmanagementcapabilities,enhancechanneloperationalefficiency,andpromoteexpansionofmarketshareforthebrand.Ontheotherhand,itwillacceleratethecultivationofstrategicemergingindustriesandseekbreakthroughsinindustrialtransformationandupgrading.
(2)ConsumptionoutflowriskWiththerecoveryoftravelinHongKongandoverseas,thedomesticconsumermarketisfacingdiversionpressure.Thecompanywillcontinuetostrengthendigitalconstructionandapplication,improvecustomerlifecyclemanagementandservicecapabilities,andenhancecustomerstickiness;Seizemarketopportunitiesandcontinuetodevelopoverseasbusinessandduty-freechannelbusiness.
11.Implementationoftheactionplanof"doubleimprovementofqualityandreturn"Whetherthecompanyhasdisclosedtheannouncementoftheactionplanof"doubleimprovementofqualityandreturn".No
Section4Corporategovernance
1.Informationontheannualgeneralmeetingandtemporarygeneralmeetingheldduringthereportingperiod
1.Generalmeetingofshareholdersduringthereportingperiod
| Inauguralmeeting | Typeofmeeting | Scaleofinvestorparticipation | Dateofthemeeting | Disclosuredate | Meetingresolution |
| 2023annualgeneralmeeting | Annualgeneralmeeting | 42.01% | April18,2024 | April19,2024 | Fordetails,pleaserefertotheAnnouncementonResolutionsofthe2023AnnualGeneralMeeting2024-016disclosedbythecompanyonwww.cninfo.com.cn |
2.PreferredshareholderswithrestoredvotingrightsrequesttoconveneatemporarygeneralmeetingNotapplicable
2.ChangesinDirectors,SupervisorsandSeniorManagementofthecompany
| Name | Positionheld | Type | Date | Reason |
| HuMin | ChairmanoftheBoardofSupervisors | Beelected | Jan.4,2024 | HewaselectedastheChairmanofthe10thBoardofSupervisorsofthecompanyatthe15thmeetingofthe10thBoardofSupervisors. |
3.Profitdistributionandconversionofprovidentfundsintocapitalstockduringthereportingperiod
Notapplicable
4.Implementationofthecompany'sequityincentiveplan,employeestockownershipplanorotheremployeeincentivemeasures
1.Equityincentive
(1)Thecompany'sphaseIIrestrictedstockincentiveplanThecompanydecidedtolaunchthephaseIIRestrictedStockIncentivePlanduringthe23rdMeetingof9thBoardofDirectorsonDecember4,2020,anditsfirstextraordinaryshareholders'meetingof2021onJanuary6.Following
approvalatthe25thMeetingof9thBoardofDirectorsonJanuary15,2021,thecompanyultimatelygranted7.66millionrestrictedA-sharesto135incentiverecipientsatapriceofRMB7.60pershare.ThisgrantwascompletedandlistedonJanuary29,2021.Fordetails,pleaserefertotherelevantannouncementdisclosedonwww.cninfo.com.cnonJanuary16,2021.Thespecificimplementationduringthereportingperiodisasfollows:
Uponapprovalatthe18thmeetingofthe10thBoardofDirectorsandthe2023AnnualGeneralMeetingofShareholders,thecompanydecidedtorepurchaseandcancel10,020restrictedA-sharesoriginallygrantedtoaformerincentiverecipientwhohadleftthecompanybutstillheldrestrictedsharesthatwerenotyetreleasedfromlock-up.Fordetails,pleaserefertotherelevantannouncementsofthecompanydisclosedonwww.cninfo.com.cnonMarch14,2024,April19,2024andJuly3,2024.
2.Implementationofemployeestockownershipplan
Notapplicable
3.OtheremployeeincentivemeasuresNotapplicable
Section5Environmentalandsocialresponsibility
1.Majorenvironmentalprotectionissues
WhetherthelistedcompaniesandtheirsubsidiariesclassifiedaskeypollutantdischargingunitsdesignatedbytheMinistryofEnvironmentalProtectionNoAdministrativepenaltiesduetoenvironmentalissuesduringthereportingperiodNotapplicableRefertootherenvironmentalinformationdisclosedbykeypollutantdischargingunitsThecompanystrictlyabidesbytheLawofthePeople'sRepublicofChinaonthePreventionandControlofAtmosphericPollution,theLawofthePeople'sRepublicofChinaonPreventionofEnvironmentalPollutionCausedbySolidWaste,theLawofthePeople'sRepublicofChinaonPreventionandControlofWaterPollutionandotherlawsandregulations,andcarriesoutpollutantsmanagement.Thecompanyanditssubsidiariesarenotkeypollutantdischargingunits.Measurestakentoreduceitscarbonemissionsduringthereportingperiodandtheireffects
Thecompanycontinuestoactivelyrespondtothecallfor"carbonpeakingby2030andcarbonneutralityby2060"，carryingoutdailymonitoringofresourceandenergyconsumption,exploringenergy-savingandemissionreductionspace.Atthesametime,promoteenergy-savingandemissionreductionstrategiesinthemanagementofrawmaterials,productionaccessories,andofficesupplies.ReasonsfornotdisclosingotherenvironmentalinformationNotapplicable
2.Socialresponsibility
Formanyyears,thecompanyhasbeenactivelyfulfillingitssocialresponsibilities,consistentlypublishingannualspecialsocialresponsibilityreportsforseventeenyears.In2024,forthefirsttime,theannual"SocialResponsibilityReport"hasbeenupgradedtoan"Environmental,Social,andGovernance(ESG)Report".Forthelatestinformation,pleaserefertothe2023Environmental,SocialandGovernance(ESG)Reportdisclosedbythecompanyonwww.cninfo.com.cnonMarch14,2024.
Section6Significantevents
1.Thecompany'sactualcontroller,shareholders,relatedparties,acquirers,andthecompanyitselfcommittedtofulfillingallcommitmentstorelevantpartiesduringthereportingperiod,withanyoutstandingcommitmentsasoftheendofthereportingperiodeitherfulfilledoroverdue.Notapplicable
2.Non-operatingoccupationoffundsbycontrollingshareholdersandotherrelatedpartiesoflistedcompaniesNotapplicable
3.ExternalguaranteeinviolationofregulationsNotapplicable
4.AppointmentanddismissalofaccountingfirmsWhetherthesemi-annualfinancialreporthasbeenauditedNo
5.ExplanationoftheBoardofDirectorsandtheBoardofSupervisorsonthe"non-standardauditreport"oftheaccountingfirmduringthereportingperiod
Notapplicable
6.ExplanationoftheBoardofDirectorsonthe"non-standardauditreport"ofthepreviousyear
Notapplicable
7.MattersrelatingtobankruptcyreorganizationNotapplicable
8.LitigationmattersNotapplicable
9.PenaltiesandrectificationNotapplicable
10.IntegritystatusofthecompanyanditscontrollingshareholdersandactualcontrollersNotapplicable
11.Majorrelatedpartytransactions
1.RelatedpartytransactionsrelatedtodailyoperationsNotapplicable
2.RelatedpartytransactionsarisingfromtheacquisitionorsaleofassetsorequitiesNotapplicable
3.Relatedpartytransactionsofjointexternalinvestment
Notapplicable
4.RelatedclaimsanddebtsNotapplicable
5.TransactionswithrelatedfinancialcompaniesDepositbusiness
| Relatedparty | Relationship | Maximumdailydepositlimit(RMB10,000) | Rangeofdepositinterestrates | Beginningbalance(RMB10,000) | Amountforthecurrentperiod | Endingbalance(RMB10,000) | |
| Totaldepositsinthecurrentperiod(RMB10,000) | Totalwithdrawalamountinthecurrentperiod(RMB10,000) | ||||||
| AVICFinance | Financecompanywithrelatedrelationship | 80,000 | 0.205%-1.25% | 46,774 | 247,761 | 256,456 | 38,079 |
Loanbusiness
| Relatedparty | Relationship | Loanlimit(RMB10,000) | LoanrateScope | Beginningbalance(RMB10,000) | Amountforthecurrentperiod | Endingbalance(RMB10,000) | |
| Totalloanamountinthecurrentperiod(RMB10,000) | Totalrepaymentamountinthecurrentperiod(RMB10,000) | ||||||
| AVICFinance | Financecompanywithrelatedrelationship | 80,000 | Nothigherthan1YLPRinterest | 0 | 0 | 0 | 0 |
CreditgrantingorotherfinancialbusinessDuringthereportingperiod,thecompany'sdailymaximumassociatedbalanceofdepositsandloanswithAviationIndustryFinancialdidnotexceedthelimitsstipulatedinthefinancialservicesagreement.Additionally,nocreditorotherfinancialtransactionsoccurred.Atthesametime,thecompanyissuedtheRiskAssessmentReportonRelatedDepositsandLoanswithAVICFinanceCo.,Ltd.everysixmonthsinresponsetotheabovematters.
6.Transactionsbetweenfinancialcompaniescontrolledbythecompanyandrelatedparties
Notapplicable
7.Othermajorrelatedpartytransactions
The18thmeetingofthe10thBoardofDirectorsheldonMarch12,2024,andthe2023AnnualGeneralMeetingofShareholdersconvenedonApril18,2024,approvedtheproposalregardinganticipatedroutinerelated-partytransactionsfortheyear2024.Duringthereportingperiod,thecumulativetransactionamountofthecompany'srelatedtransactionsrelatingtodailyoperationswaswithintheannualestimatedrange.Inquiryrelatedtothedisclosurewebsiteofinterimreportonmajorrelatedtransactions
rate
Nameoftemporaryannouncement
| Nameoftemporaryannouncement | Disclosuredateofprovisionalannouncement | Disclosureofwebsitenameintemporaryannouncement |
| AnnouncementonResolutionsofthe18thMeetingofthe10thBoardofDirectors2024-006 | Mar.14,2024 | http://www.cninfo.com.cn/ |
| AnnouncementonPredictionofDailyRelatedPartyTransactions2024-009 | Mar.14,2024 | http://www.cninfo.com.cn/ |
| AnnouncementonResolutionsof2023AnnualGeneralMeetingofShareholders2024-016 | April19,2024 | http://www.cninfo.com.cn/ |
12.Majorcontractsandtheirperformance
1.Trusteeship,contractingandleasingmatters
(1)TrusteeshipNotapplicable
(2)ContractingNotapplicable
(3)LeasingNotapplicable
2.Majorguarantee
Unit:RMB10,000
| Nameofguaranteeobject | Announcementdisclosuredaterelatedtoguaranteelimit | Guaranteelimit | Actualdate | Actualguaranteedamount | Guaranteetype | Collateral(ifany) | Counter-guarantee(ifany) | Guaranteeperiod | Whethertheperformancehasbeencompleted | Whetheritisaguaranteeforrelatedparties |
| Notapplicable | ||||||||||
| Totalamountofexternalguaranteeapprovedduringthereportingperiod(A1) | 0 | Totalactualamountofexternalguaranteeduringthereportingperiod(A2) | 0 | |||||||
| Totalamountofexternalguaranteeapprovedattheendofthereportingperiod(A3) | 0 | Totalactualexternalguaranteebalanceattheendofthereportingperiod(A4) | 0 | |||||||
| Guaranteesprovidedbythecompanytoitssubsidiaries | ||||||||||
| Nameofguaranteeobject | Announcementdisclosuredaterelatedtoguaranteelimit | Guaranteelimit | Actualdate | Actualguaranteedamount | Guaranteetype | Collateral(ifany) | Counter-guarantee(ifany) | Guaranteeperiod | Whethertheperformancehasbeencompleted | Whetheritisaguaranteeforrelatedparties |
| ShenzhenHarmonyWorldWatchCentreCo.,Ltd. | Mar.18,2023 | 30,000 | December30,2023 | 12,000 | Jointliabilityguarantee | 1 | No | No | ||
| Totalamountofguaranteesapprovedforsubsidiariesduringthereportingperiod(B1) | 60,000 | Totalactualamountofguaranteesprovidedtosubsidiariesduringthereportingperiod(B2) | 0 | |||||||
| Totalapprovedguaranteelimitforsubsidiariesattheendofthereportingperiod(B3) | 60,000 | Totalactualguaranteebalanceforsubsidiariesattheendofthereportingperiod(B4) | 12,000 | |||||||
| Guaranteesprovidedbysubsidiariestosubsidiaries | ||||||||||
| Name | Announ | Guarant | Actual | Actual | Guarant | Collater | Counter | Guarant | Whethe | Whethe |
| ofguaranteeobject | cementdisclosuredaterelatedtoguaranteelimit | eelimit | date | guaranteedamount | eetype | al(ifany) | -guarantee(ifany) | eeperiod | rtheperformancehasbeencompleted | ritisaguaranteeforrelatedparties |
| Notapplicable | ||||||||||
| Totalamountofguaranteesapprovedforsubsidiariesduringthereportingperiod(C1) | 0 | Totalactualamountofguaranteesprovidedtosubsidiariesduringthereportingperiod(C2) | 0 | |||||||
| Totalapprovedguaranteelimitforsubsidiariesattheendofthereportingperiod(C3) | 0 | Totalactualguaranteebalanceforsubsidiariesattheendofthereportingperiod(C4) | 0 | |||||||
| Totalamountofcorporateguarantees(i.e.thetotalofthetopthreeitems) | ||||||||||
| Totalamountofguaranteeapprovedduringthereportingperiod(A1+B1+C1) | 60,000 | Totalactualamountofguaranteeduringthereportingperiod(A2+B2+C2) | 0 | |||||||
| Totalapprovedguaranteelimitattheendofthereportingperiod(A3+B3+C3) | 60,000 | Totalactualguaranteebalanceattheendofthereportingperiod(A4+B4+C4) | 12,000 | |||||||
| Theproportionofactualtotalamountofguarantee(i.e.A4+B4+C4)inthecompany'snetassets | 3.62% | |||||||||
| Inwhich: | ||||||||||
| Balanceofguaranteesprovidedtoshareholders,actualcontrollersandtheirrelatedparties(D) | 0 | |||||||||
| Balanceofdebtguaranteedirectlyorindirectlyprovidedtotheguaranteedobjectwiththeasset/liabilityratioexceeding70%(E) | 0 | |||||||||
| Totalamountofguaranteeexceeding50%ofnetassets(F) | 0 | |||||||||
| Totalamountoftheabovethreeguarantees(D+E+F) | 0 | |||||||||
| Fortheunexpiredguaranteecontract,theguaranteeliabilityoccurredorthereisevidenceshowingthatitispossibleto | Notapplicable | |||||||||
| assumejointandseveralliabilityduringthereportingperiod(ifany) | |
| Descriptionofexternalguaranteeprovidedinviolationofprescribedprocedures(ifany) | Notapplicable |
SpecificdescriptionofthecompositeguaranteeNotapplicable
3.EntrustfinancingNotapplicable
4.OthermajorcontractsNotapplicable
13.Notestoothermajorevents
(1)MattersconcerningthecontinuingcontractoftheaccountingfirmThecompany's18thmeetingofthe10thBoardofDirectorsandthe2023AnnualGeneralMeetingofShareholdershaveresolvedtocontinueappointingDahuaCertifiedPublicAccountants(SpecialGeneralPartnership)astheauditorforthecompany's2024financialstatementsandinternalcontrolsforatermofoneyear.Fordetailedinformation,pleaserefertothecompany'sannouncements"AnnouncementontheContinuedAppointmentofAccountingFirm2024-011"and"2023AnnualGeneralMeetingofShareholdersResolutionAnnouncement2023-016"disclosedonCNINFOonMarch14,2024,andApril19,2024,respectively.
(2)Repurchaseofaportionofdomesticlistedforeignshares(B-shares)TheCompany's11thmeetingofthe10thBoardofDirectorsandthe2022AnnualGeneralMeetingofShareholdersapprovedthePlanfortheRepurchaseofaPortionofDomesticListedForeignShares(B-shares),andsubsequentlydisclosedtherepurchasereportandaseriesofprogressannouncementsinaccordancewithrelevantregulations.AsofApril25,2024,theimplementationoftherepurchaseplanhasbeencompleted,andtherepurchased9,355,763B-shareshavebeencanceledonMay10,2024.Fordetailedinformation,pleaserefertothecompany'sannouncements"AnnouncementontheExpirationandImplementationResultsoftheRepurchaseofCertainDomesticallyListedForeignShares(BShares)2024-020"and"AnnouncementontheCompletionoftheCancellationofRepurchasedDomesticallyListedForeignShares(BShares)andShareChanges2024-021,"disclosedonCNINFOonApril26,2024,andMay14,2024,respectively.
14.Majoreventsofthecompany'ssubsidiaries
Notapplicable
Section7Changesinsharesandshareholders
1.Changesinshares
1.Changesinshares
Unit:Shares
| Beforethischange | Increase/decreaseinthischange(+,-) | Afterthischange | |||||||
| Quantity | Scale | IssueNewshares | Rightsissue | Capitalconversionofprovidentfunds | Other | Sub-total | Quantity | Scale | |
| 1.Restrictedshares | 2,729,860 | 0.66% | 0 | 0 | 0 | -153,940 | -153,940 | 2,575,920 | 0.63% |
| 1.State-ownedshares | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 2.State-ownedlegalpersonshareholding | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 3.Otherdomesticshareholding | 2,729,860 | 0.66% | 0 | 0 | 0 | -153,940 | -153,940 | 2,575,920 | 0.63% |
| Including:domesticlegalpersonshareholding | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| Domesticnaturalpersonshareholding | 2,729,860 | 0.66% | 0 | 0 | 0 | -153,940 | -153,940 | 2,575,920 | 0.63% |
| 4.Foreignshareholding | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| Including:overseaslegalperson | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| shareholding | |||||||||
| Overseasnaturalpersonsshareholding | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 2.Non-restrictedshares | 412,490,110 | 99.34% | 0 | 0 | 0 | -9,201,823 | -9,201,823 | 403,288,287 | 99.37% |
| 1.RMBordinaryshares | 362,553,413 | 87.31% | 0 | 0 | 0 | 153,940 | 153,940 | 362,707,353 | 89.37% |
| 2.Domesticlistedforeignshares | 49,936,697 | 12.03% | 0 | 0 | 0 | -9,355,763 | -9,355,763 | 40,580,934 | 10.00% |
| 3.Overseaslistedforeignshares | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 4.Others | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 3.Totalnumberofshares | 415,219,970 | 100.00% | 0 | 0 | 0 | -9,355,763 | -9,355,763 | 405,864,207 | 100.00% |
Reasonsforchangeinshares
1.Duringthereportingperiod,duetotheadjustmentofthetransferablequotaforseniormanagement,153,940shareswithsalesrestrictionswerereduced(correspondingtoanincreaseinunrestrictedshares,withthetotalcapitalstockremainingunchanged).
2.Duringthereportingperiod,asthecompanycompletedtheimplementationoftherepurchaseplanforcertaindomesticallylistedforeignshares(Bshares),therepurchasedBshareswerecanceled,reducing9,355,763unrestrictedshares(totalcapitalstockdecreased).Inviewoftheabovereasons,attheendofthereportingperiod,thetotalsharecapitalofthecompanydecreasedby9,355,763shares,andthetotalsharecapitaldecreasedfrom415,219,970sharesto405,864,207shares.ApprovalofchangeinsharesUpontheauthorizationandapprovalofthecompany's2022annualgeneralmeetingofshareholders,thecompanycanceledtherepurchased9,355,763Bshares.TransferofchangeinsharesUponthereviewandconfirmationofChinaSecuritiesDepositoryandClearingCorporationLimited(CSDC)ShenzhenBranch,thecompanyhascompletedthecancellationofBsharesonMay10,2024.Implementationprogressofsharerepurchase
Thecompany's11thmeetingofthe10thBoardofDirectorsandthe2022AnnualGeneralMeetingofShareholdersreviewedandapprovedthe"PlanfortheRepurchaseofCertainDomesticallyListedForeignShares(BShares)."Fordetailedinformation,pleaserefertotherelevantannouncementsdisclosedonwww.cninfo.com.cnonMarch18,2023,andApril27,2023.AsofApril25,2024,thetermofthesharerepurchaseplanhasexpiredandbeenfullyimplemented.Thecompanycumulativelyrepurchased9,355,763domesticallylistedforeignshares(Bshares)throughthespecialsecuritiesaccountviacentralizedbidding,accountingfor2.25%ofthecompany'stotalsharecapital.ThehighesttransactionpricefortherepurchasedshareswasHKD8.00pershare,thelowesttransactionpricewasHKD7.08pershare,andthetotalamountpaidwasHKD70,401,771.17(excludingtransactionfees).TheaforementionedshareswerecanceledonMay10,2024.TheimplementationprogressofthereductionofrepurchasedsharesthroughcentralizedbiddingNotapplicableTheimpactofthesharechangesonfinancialindicatorssuchasbasicearningspershareanddilutedearningspershareforthemostrecentyearandperiod,aswellasnetassetspershareattributabletothecompany'sordinaryshareholders,isasfollows:
Othercontentsthatthecompanydeemsnecessaryorrequiredtobedisclosedbysecuritiesregulator.Notapplicable
| Financialindicators | Jan.-Jun.2024 | Year2023 | ||
| Beforethechangeinshares | Afterthechangeofshares | Beforethechangeinshares | Afterthechangeofshares | |
| Basicearningspershare(RMB/share) | 0.3541 | 0.3568 | 0.8082 | 0.8191 |
| Dilutedearningspershare(RMB/share) | 0.3537 | 0.3564 | 0.8075 | 0.8183 |
| Netassetvaluepershare(RMB/share)attributabletoordinaryshareholdersofthecompany. | 7.98 | 8.17 | 8.03 | 8.21 |
2.Changesinrestrictedshares
Unit:Shares
| Shareholdername | Numberofrestrictedsharesatthebeginningoftheperiod | Numberofrestrictedsharesreleasedinthecurrentperiod | Numberofrestrictedsharesincreasedinthecurrentperiod | Numberofrestrictedsharesattheendoftheperiod | Reasonforrestrictedsales | Dateofrestrictedsalesreleased |
| LiMing | 160,080 | 40,013 | 0 | 120,067 | Executivelocked-insharesandunlockedrestrictedshares | 1.Atthebeginningoftheperiod,thetransferablequotaforseniormanagementwasadjusted,therestrictedsharesheldbyseniormanagementdecreasedby40,013shares.2.Theremainingrestrictedshareswereunlockedaccordingtotheconditionsforseniormanagementlockedsharesandthecompany'sequityincentivemanagementmeasurement. |
| PanBo | 160,050 | 0 | 12,487 | 172,537 | Executivelocked-insharesandunlockedrestrictedshares | 1.Atthebeginningoftheperiod,thetransferablequotaforseniormanagementwasadjusted,therestrictedsharesheldbyseniormanagementincreasedby12,487shares.2.Theremainingrestrictedshareswereunlockedaccordingtotheconditionsforseniormanagementlockedsharesandthecompany'sequityincentivemanagementmeasurement. |
| LuWanjun | 160,050 | 40,013 | 0 | 120,037 | Executivelocked-insharesandunlockedrestrictedshares | 1.Atthebeginningoftheperiod,thetransferablequotaforseniormanagementwasadjusted,therestrictedsharesheldbyseniormanagementdecreasedby40,013shares.2.Theremainingrestrictedshareswereunlockedaccordingtotheconditionsforseniormanagementlockedsharesandthecompany'sequityincentivemanagementmeasurement. |
| LiuXiaoming | 160,050 | 40,013 | 0 | 120,037 | Executivelocked-insharesandunlockedrestrictedshares | 1.Atthebeginningoftheperiod,thetransferablequotaforseniormanagementwasadjusted,therestrictedsharesheldbyseniormanagementdecreasedby40,013shares. |
| 2.Theremainingrestrictedshareswereunlockedaccordingtotheconditionsforseniormanagementlockedsharesandthecompany'sequityincentivemanagementmeasurement. | ||||||
| TangHaiyuan | 107,550 | 26,888 | 0 | 80,662 | Executivelocked-insharesandunlockedrestrictedshares | 1.Atthebeginningoftheperiod,thetransferablequotaforseniormanagementwasadjusted,therestrictedsharesheldbyseniormanagementdecreasedby26,888shares.2.Theremainingrestrictedshareswereunlockedaccordingtotheconditionsforseniormanagementlockedsharesandthecompany'sequityincentivemanagementmeasurement. |
| ChenLibin | 60,120 | 0 | 0 | 60,120 | Unlockedrestrictedshares | Theremainingrestrictedshareswereunlockedaccordingtothecompany'sequityincentivemanagementmeasurement. |
| BaoXianyong | 40,080 | 0 | 0 | 40,080 | Unlockedrestrictedshares | Theremainingrestrictedshareswereunlockedaccordingtothecompany'sequityincentivemanagementmeasurement. |
| SunLei | 40,080 | 0 | 0 | 40,080 | Unlockedrestrictedshares | Theremainingrestrictedshareswereunlockedaccordingtothecompany'sequityincentivemanagementmeasurement. |
| ShengLi | 40,080 | 0 | 0 | 40,080 | Unlockedrestrictedshares | Theremainingrestrictedshareswereunlockedaccordingtothecompany'sequityincentivemanagementmeasurement. |
| Othershareholders | 1,801,720 | 19,500 | 0 | 1,782,220 | Thequitseniormanagement'slocked-insharesandunlockedrestrictedshares | 1.Atthebeginningoftheperiod,thetransferablequotaforquitseniormanagementwasadjusted,therestrictedsharesheldbyseniormanagementdecreasedby19,500shares.2.Theremainingrestrictedshareswereunlockedaccordingtotheconditionsforquitseniormanagementlockedsharesandthecompany'sequityincentivemanagementmeasurement. |
| Total | 2,729,860 | 166,427 | 12,487 | 2,575,920 | -- | -- |
2.IssuanceandlistingofsecuritiesNotapplicable
3.Numberofshareholdersandtheirshareholdingsituationinthecompany
Unit:Shares
| Totalnumberofcommonshareholdersattheendofthereportingperiod | 27,671 | Totalnumberofpreferredshareholderswithrestoredvotingrightsattheendofthereportingperiod(ifany)(seeNote8) | 0 | |||||
| Shareholdersholdingmorethan5%commonstockorthetop10commonstockshareholders'shareholdingdetails(excludingshareslentthroughrefinancing) | ||||||||
| Shareholdername | Natureofshareholder | ShareholdingScale | Numberofcommonstockheldattheendofthereportingperiod | Increase/decreaseduringthereportingperiod | Numberofrestrictedcommonstockheld | Numberofnon-restrictedcommonstockheld | PledgeandmarkingOrfreezingsituation | |
| Statusofshares | Quantity | |||||||
| AVICInternationalHoldingCo.,Ltd. | State-ownedlegalperson | 40.16% | 162,977,327 | 0 | 0 | 162,977,327 | Notapplicable | 0 |
| #WuJilin | Domesticnaturalperson | 4.87% | 19,757,542 | 1,713,915 | 0 | 19,757,542 | Notapplicable | 0 |
| XuGuoliang | Domesticnaturalperson | 1.46% | 5,924,268 | -1,318,500 | 0 | 5,924,268 | Notapplicable | 0 |
| QiuHong | Domesticnaturalperson | 0.62% | 2,510,000 | 40,000 | 0 | 2,510,000 | Notapplicable | 0 |
| #ZhuRui | Domesticnaturalperson | 0.53% | 2,145,200 | 738,100 | 0 | 2,145,200 | Notapplicable | 0 |
| #QuYongjie | Domesticnaturalperson | 0.33% | 1,341,900 | 55,100 | 0 | 1,341,900 | Notapplicable | 0 |
| #WangXing | Domesticnaturalperson | 0.32% | 1,302,500 | 481,100 | 0 | 1,302,500 | Notapplicable | 0 |
| #GeZhongwei | Domesticnaturalperson | 0.29% | 1,172,300 | 300,300 | 0 | 1,172,300 | Notapplicable | 0 |
| ChenHao | Domesticnaturalperson | 0.28% | 1,149,543 | 47,900 | 0 | 1,149,543 | Notapplicable | 0 |
| #ZhuXian | Domesticnaturalperson | 0.25% | 1,032,540 | 722,540 | 0 | 1,032,540 | Notapplicable | 0 |
| Strategicinvestorsorgenerallegalpersons | Notapplicable | |||||||
| becomingthetop10commonstockshareholdersduetoplacementofnewshares(ifany)(seeNote3) | |||
| Explanationoftheaforementionedshareholders'associationorconcertedaction | TheCompanyisunawareofwhethertheaforementioned10shareholdersarerelatedorconstituteconcertedactors. | ||
| Descriptionoftheaboveshareholders'involvementinthecommissioned/entrustedvotingrightsandwaiverofvotingrights | Theshareholder,AVICInternationalHoldingsLimited,authorizedarepresentativetoexercisevotingrightsonbehalfofthecompanyatthe2023annualgeneralmeetingofshareholders,representing162,977,327shares.Fordetailsofthevotingresults,pleaserefertotherelevantannouncementsissuedbythecompanyonthewebsiteofwww.cninfo.com.cn. | ||
| Specialinstructionsontheexistenceofspecialrepurchaseaccountsamongthetop10shareholders(ifany)(seeNote11) | Notapplicable | ||
| Shareholdingsofthetop10shareholdersofnon-restrictedcommonstock(excludingshareslentthroughrefinancingandshareslockedbyseniormanagement) | |||
| Shareholdername | Numberofnon-restrictedcommonstockheldattheendofthereportingperiod | Typeofshares | |
| Typeofshares | Quantity | ||
| AVICInternationalHoldingCo.,Ltd. | 162,977,327 | RMBordinaryshares | 162,977,327 |
| #WuJilin | 19,757,542 | RMBordinaryshares | 19,757,542 |
| XuGuoliang | 5,924,268 | RMBordinaryshares | 5,924,268 |
| QiuHong | 5,924,268 | RMBordinaryshares | 5,924,268 |
| #ZhuRui | 2,145,200 | RMBordinaryshares | 2,145,200 |
| #QuYongjie | 1,341,900 | RMBordinaryshares | 1,341,900 |
| #WangXing | 1,302,500 | RMBordinaryshares | 1,302,500 |
| #GeZhongwei | 1,172,300 | RMBordinaryshares | 1,172,300 |
| ChenHao | 1,149,543 | RMBordinaryshares | 1,149,543 |
| #ZhuXian | 1,032,540 | RMBordinaryshares | 1,032,540 |
| Explanationoftherelationshiporconcertedactionsbetweenthetop10holdersofunrestrictedcommonstockandthatbetweenthetop10holdersofunrestrictedcommonstockandthetop10commonstockshareholders. | TheCompanyisunawareofwhethertheaforementioned10shareholdersarerelatedorconstituteconcertedactors. | ||
| Explanationofthetop10commonstockshareholders'participationinsecuritiesmargintrading | 1.Inadditiontoholding10,202,377sharesthroughtheordinarysecuritiesaccount,WuJilin,theshareholderofthecompany,alsoholds9,555,165sharesthroughtheclientcredittradingguaranteesecuritiesaccountofCICCWealthManagementholding19,757,542sharesintotal;2.Inadditiontoholding307,100sharesthroughtheordinarysecuritiesaccount,ZhuRui,theshareholderofthecompany,alsoholds1,838,100sharesintheclientcredittrading | ||
| (ifany)(seeNote4) | guaranteesecuritiesaccountofFirstCapitalSecuritiesCo.,Ltd.,holdingatotalof2,145,200shares;3.Inadditiontoholding59,000sharesthroughtheordinarysecuritiesaccount,QuYongjie,theshareholderofthecompany,alsoheld1,282,900sharesthroughthecustomercredittradingguaranteesecuritiesaccountofShanxiSecuritiesCo.,Ltd.,holdingatotalof1,341,900shares;4.Inadditiontoholding882,500sharesthroughtheordinarysecuritiesaccount,WangXing,theshareholderofthecompany,alsoholds420,000sharesthroughthecustomercredittradingguaranteesecuritiesaccountofChinaMerchantsSecuritiesco.Ltd.(CMS),holdingatotalof1,302,500share;5.Inadditiontoholding672,300sharesthroughtheordinarysecuritiesaccount,GeZhongwei,theshareholderofthecompany,alsoheld500,000sharesthroughthecustomercredittradingguaranteesecuritiesaccountofZheshangSecuritiesCo.,Ltd.,holdingatotalof1,172,300shares;6.Inadditiontoholding25,000sharesthroughtheordinarysecuritiesaccount,ZhuXian,theshareholderofthecompany,alsoheld1,007,540sharesthroughthecustomercredittradingguaranteesecuritiesaccountofHuaChuangSecuritiesCo.,Ltd.,holdingatotalof1,032,540shares. |
Participationofshareholdersholdingmorethan5%,thetop10shareholders,andthetop10shareholdersofunlimitedoutstandingsharesinsecuritiesmargintradingNotapplicableChangesinthetop10shareholders,andthetop10shareholdersofunlimitedoutstandingsharesduetosecuritiesmargintradingcomparedtothepreviousperiodNotapplicableDidthecompany'stop10commonstockshareholdersandtop10holdersofunrestrictedcommonstockengageinanyagreedrepurchasetransactionsduringthereportingperiodNo
4.ChangesinshareholdingsofDirectors,SupervisorsandSeniorManagement
NotapplicableTherewasnochangeintheshareholdingofthecompany'sDirectors,SupervisorsandSeniorManagementduringthereportingperiod.Fordetails,pleaserefertothe2023AnnualReport.
5.Changesincontrollingshareholdersoractualcontrollers
ChangesincontrollingshareholdersduringthereportingperiodNotapplicableChangeofactualcontrollerduringthereportingperiodNotapplicable
Section8RelevantinformationaboutpreferredstockNotapplicable
Section9Bond-relatedinformationNotapplicable
Section10FinancialstatementI.AuditReportWhetherthesemi-annualreporthasbeenauditedNo
2.FinancialstatementsTheunitofthefinancialstatementsinthenotesisRMB
1.ConsolidatedbalancesheetPreparedby:FIYTAPrecisionTechnologyCo.,Ltd.
June30,2024
Unit:RMB
| Item | EndingBalance | Openingbalance |
| Currentassets: | ||
| Cashandbankbalances | 404,356,009.13 | 504,629,153.71 |
| Depositreservationforbalance | ||
| Lendingfunds | ||
| Tradingfinancialassets | ||
| Derivativefinancialassets | ||
| Notesreceivable | 16,338,392.31 | 18,268,972.37 |
| Accountsreceivable | 355,483,465.81 | 323,142,761.64 |
| Receivablesfinancing | ||
| Prepayment | 6,569,774.50 | 6,571,239.98 |
| Premiumsreceivable | ||
| Cessionpremiumsreceivable | ||
| Provisionofcessionreceivable | ||
| Otherreceivables | 59,436,540.53 | 57,725,792.00 |
| Including:Interestreceivable | ||
| Dividendreceivable | ||
| Redemptorymonetarycapitalforsale | ||
| Inventories | 2,128,331,242.49 | 2,100,666,175.28 |
| Including:Dataresources | ||
| Contractassets | ||
| Assetsheldforsale | ||
| Non-currentassetsduewithinoneyear | ||
| Othercurrentassets | 89,039,020.97 | 72,249,391.81 |
| Totalcurrentassets | 3,059,554,445.74 | 3,083,253,486.79 |
| Non-currentassets: | ||
| Loansandadvancesoffered | ||
| Debtinvestment | ||
| Otherdebtinvestment | ||
| Long-termreceivables | ||
| Long-termequityinvestments | 51,952,479.36 | 51,862,607.30 |
| Otherequityinstrumentinvestments | ||
| Othernon-currentfinancialassets | ||
| Investmentproperties | 352,408,837.92 | 360,255,832.14 |
| Fixedassets | 345,651,268.72 | 355,785,354.68 |
| Constructioninprogress | ||
| Productivebiologicalassets | ||
| Oilandgasassets | ||
| Right-of-useassets | 109,386,646.99 | 109,452,481.64 |
| Intangibleassets | 30,848,580.73 | 31,664,380.77 |
| Including:Dataresources | ||
| Developmentexpenditures | ||
| Including:Dataresources | ||
| Goodwill | ||
| Long-termprepaidexpenses | 120,110,202.46 | 122,324,355.13 |
| Deferredincometaxassets | 75,893,868.97 | 80,227,771.46 |
| Othernon-currentassets | 2,185,332.57 | 9,434,627.17 |
| Totalnon-currentassets | 1,088,437,217.72 | 1,121,007,410.29 |
| Totalassets | 4,147,991,663.46 | 4,204,260,897.08 |
| Currentliabilities: | ||
| Short-termloans | 320,207,333.32 | 250,187,763.87 |
| Borrowingfromthecentralbank | ||
| Borrowedfunds | ||
| Tradingfinancialliabilities | ||
| Derivativefinancialliabilities | ||
| Notespayable | ||
| Accountspayable | 131,372,308.62 | 173,825,907.71 |
| Advancesfromcustomer | 8,242,987.93 | 10,267,758.31 |
| Contractliabilities | 18,804,742.85 | 12,286,243.62 |
| Financialassetssoldforrepurchase | ||
| Depositsfromcustomersandinterbank | ||
| Receivingsfromvicariouslytradedsecurities | ||
| Fundsreceivedasstockunderwrite | ||
| Employeebenefitspayable | 73,285,559.36 | 120,084,810.60 |
| Taxespayable | 52,552,871.74 | 64,188,161.31 |
| Otherpayables | 110,793,067.03 | 121,937,801.07 |
| Including:Interestpayable | ||
| Dividendpayable | 2,907,796.73 | 2,058,352.24 |
| Servicechargesandcommissionspayable | ||
| Cessionpremiumspayable | ||
| Liabilitiesheldforsale | ||
| Non-currentliabilitiesduewithinoneyear | 69,943,530.95 | 66,399,004.20 |
| Othercurrentliabilities | 2,078,002.76 | 1,589,635.30 |
| Totalcurrentliabilities | 787,280,404.56 | 820,767,085.99 |
| Non-currentliabilities: | ||
| Insurancecontractreserve | ||
| Long-termloans | ||
| Bondspayable | ||
| Including:preferredstock | ||
| Perpetualbonds | ||
| Leaseliabilities | 38,967,635.39 | 43,526,352.52 |
| Long-termpayables | ||
| Long-termemployeebenefitspayable | ||
| Estimatedliabilities | ||
| Deferredincome | 952,785.69 | 952,785.69 |
| Deferredtaxliability | 5,462,841.29 | 5,208,920.69 |
| Othernon-currentliabilities | ||
| Totalnon-currentliabilities | 45,383,262.37 | 49,688,058.90 |
| Totalliabilities | 832,663,666.93 | 870,455,144.89 |
| Owner'sequity: | ||
| Sharecapital | 405,864,207.00 | 415,219,970.00 |
| Otherequityinstruments | ||
| Including:preferredstock | ||
| Perpetualbonds | ||
| Capitalreserve | 936,080,193.96 | 990,159,033.17 |
| Less:treasurystock | 13,445,814.81 | 78,645,532.23 |
| Othercomprehensiveincome | 13,747,808.17 | 19,325,335.93 |
| Specialreserve | 3,765,015.42 | 3,223,158.06 |
| Surplusreserves | 275,010,401.50 | 275,010,401.50 |
| Generalriskprovisions | ||
| Undistributedprofits | 1,694,306,185.29 | 1,709,513,385.76 |
| Totalequityattributabletotheowneroftheparentcompany | 3,315,327,996.53 | 3,333,805,752.19 |
| Minorityinterests | ||
| Totalowner'sequity | 3,315,327,996.53 | 3,333,805,752.19 |
| Totalliabilitiesandowner'sequity | 4,147,991,663.46 | 4,204,260,897.08 |
LegalRepresentative:ZhangXuhuaCFO:SongYaomingFinancialManager:TianHui
2.BalanceSheetofparentcompany
Unit:RMB
| Item | EndingBalance | Openingbalance |
| Currentassets: | ||
| Cashandbankbalances | 309,352,375.23 | 308,230,255.35 |
| Tradingfinancialassets | ||
| Derivativefinancialassets | ||
| Notesreceivable | ||
| Accountsreceivable | 11,175,784.69 | 1,822,916.61 |
| Receivablesfinancing | ||
| Prepayment | ||
| Otherreceivables | 646,226,304.77 | 696,328,419.85 |
| Including:Interestreceivable | ||
| Dividendreceivable | ||
| Inventories | 44,792.57 | |
| Including:Dataresources | ||
| Contractassets | ||
| Assetsheldforsale | ||
| Non-currentassetsduewithinoneyear | ||
| Othercurrentassets | 13,231,838.08 | 15,886,769.82 |
| Totalcurrentassets | 980,031,095.34 | 1,022,268,361.63 |
| Non-currentassets: | ||
| Debtinvestment | ||
| Otherdebtinvestment | ||
| Long-termreceivables | ||
| Long-termequityinvestments | 1,633,784,801.52 | 1,633,041,716.11 |
| Otherequityinstrumentinvestments | ||
| Othernon-currentfinancialassets | ||
| Investmentproperties | 287,220,334.04 | 293,695,692.68 |
| Fixedassets | 202,865,789.95 | 207,209,890.94 |
| Constructioninprogress | ||
| Productivebiologicalassets | ||
| Oilandgasassets | ||
| Right-of-useassets | ||
| Intangibleassets | 22,875,581.52 | 23,460,211.70 |
| Including:Dataresources | ||
| Developmentexpenditures | ||
| Including:Dataresources | ||
| Goodwill | ||
| Long-termprepaidexpenses | 3,934,381.48 | 4,795,846.73 |
| Deferredincometaxassets | 834,088.92 | 640,783.05 |
| Othernon-currentassets | 1,106,563.00 | 710,807.49 |
| Totalnon-currentassets | 2,152,621,540.43 | 2,163,554,948.70 |
| Totalassets | 3,132,652,635.77 | 3,185,823,310.33 |
| Currentliabilities: | ||
| Short-termloans | 320,207,333.32 | 250,187,763.87 |
| Tradingfinancialliabilities | ||
| Derivativefinancialliabilities | ||
| Notespayable | ||
| Accountspayable | 3,325,588.05 | 2,285,657.88 |
| Advancesfromcustomer | 8,242,987.93 | 10,267,758.31 |
| Contractliabilities | ||
| Employeebenefitspayable | 17,686,842.19 | 25,886,702.67 |
| Taxespayable | 3,322,230.50 | 3,322,241.54 |
| Otherpayables | 257,308,884.44 | 224,668,548.77 |
| Including:Interestpayable | ||
| Dividendpayable | ||
| Liabilitiesheldforsale | ||
| Non-currentliabilitiesduewithinoneyear | ||
| Othercurrentliabilities | ||
| Totalcurrentliabilities | 610,093,866.43 | 516,618,673.04 |
| Non-currentliabilities: | ||
| Long-termloans | ||
| Bondspayable | ||
| Including:preferredstock | ||
| Perpetualbonds | ||
| Leaseliabilities | ||
| Long-termpayables | ||
| Long-termemployeebenefitspayable | ||
| Estimatedliabilities | ||
| Deferredincome | 952,785.69 | 952,785.69 |
| Deferredtaxliability | ||
| Othernon-currentliabilities | ||
| Totalnon-currentliabilities | 952,785.69 | 952,785.69 |
| Totalliabilities | 611,046,652.12 | 517,571,458.73 |
| Owner'sequity: | ||
| Sharecapital | 405,864,207.00 | 415,219,970.00 |
| Otherequityinstruments | ||
| Including:preferredstock | ||
| Perpetualbonds | ||
| Capitalreserve | 938,958,689.77 | 993,037,528.98 |
| Less:treasurystock | 13,445,814.81 | 78,645,532.23 |
| Othercomprehensiveincome |
| Specialreserve | ||
| Surplusreserves | 275,010,401.50 | 275,010,401.50 |
| Undistributedprofits | 915,218,500.19 | 1,063,629,483.35 |
| Totalowner'sequity | 2,521,605,983.65 | 2,668,251,851.60 |
| Totalliabilitiesandowner'sequity | 3,132,652,635.77 | 3,185,823,310.33 |
LegalRepresentative:ZhangXuhuaCFO:SongYaomingFinancialManager:TianHui
3.Consolidatedincomestatement
Unit:RMB
| Item | Semi-annual2024 | Semi-annual2023 |
| I.Totaloperatingincome | 2,076,397,911.32 | 2,364,505,262.56 |
| Including:Operatingrevenue | 2,076,397,911.32 | 2,364,505,262.56 |
| Interestincome | ||
| Premiumsearned | ||
| Incomefromservicechargesandcommissions | ||
| II.Totaloperatingcost | 1,892,890,643.96 | 2,129,534,984.07 |
| Including:Operatingcosts | 1,304,482,455.55 | 1,512,527,481.83 |
| Interestexpense | ||
| Expendituresofservicechargesandcommissions | ||
| Surrendervalue | ||
| Netpaymentsforinsuranceclaims | ||
| Withdrawalofnetprovisionforinsurancecontracts | ||
| Expenditureofpolicydividend | ||
| Reinsurancecosts | ||
| Taxesandsurcharges | 12,260,457.55 | 15,762,456.07 |
| SellingandDistributionExpenses | 449,785,002.40 | 456,273,629.20 |
| GeneralandAdministrativeExpenses | 89,213,932.54 | 104,621,729.61 |
| R&DExpenditures | 27,525,998.33 | 28,161,470.54 |
| Financialexpenses | 9,622,797.59 | 12,188,216.82 |
| Including:interestexpenses | 5,169,603.47 | 6,690,859.35 |
| Interestincome | 2,185,535.51 | 2,432,180.03 |
| Plus:otherincome | 3,103,884.50 | 6,691,609.41 |
| Investmentincome("-"forlosses) | 313,834.17 | -1,697,481.65 |
| Including:incomefrominvestmentinassociatesandjointventures | 89,872.06 | -1,697,481.65 |
| Gainsfrom |
| derecognitionoffinancialassetsmeasuredatamortizedcost | ||
| Foreignexchangegains("-"forlosses) | ||
| Netexposurehedgingincome("-"forlosses) | ||
| Gainsfromchangesinfairvalue("-"forlosses) | ||
| Creditimpairmentlosses("-"forlosses) | 2,724,678.43 | 4,333,947.62 |
| Assetimpairmentlosses("-"forlosses) | 28,336.82 | |
| Assetdisposalincome("-"forlosses) | 2,906,210.67 | -76,689.73 |
| 3.Operatingprofits("-"forlosses) | 192,584,211.95 | 244,221,664.14 |
| Plus:non-operatingrevenue | 1,378,138.85 | 596,523.83 |
| Less:non-operatingexpenses | 278,833.35 | 291,601.18 |
| 4.Totalprofits("-"fortotallosses) | 193,683,517.45 | 244,526,586.79 |
| Less:incometaxexpenses | 46,545,035.11 | 57,131,519.56 |
| 5.Netprofits("-"fornetlosses) | 147,138,482.34 | 187,395,067.23 |
| (I)Classifiedbybusinesscontinuity | ||
| 1.Netprofitfromcontinuingoperations("-"fornetlosses) | 147,138,482.34 | 187,395,067.23 |
| 2.Netprofitfromdiscontinuedoperations("-"fornetlosses) | ||
| (II)Classifiedbyownership | ||
| 1.Netprofitattributabletoshareholdersoftheparentcompany("-"fornetlosses) | 147,138,482.34 | 187,395,067.23 |
| 2.Minorityinterestincome("-"fornetlosses) | ||
| VI.Netoftaxfromothercomprehensiveincome | -5,577,527.76 | 9,405,009.07 |
| Netamountofothercomprehensiveincomeaftertaxattributabletoownersoftheparentcompany | -5,577,527.76 | 9,405,009.07 |
| (I)Othercomprehensiveincomesthatcannotbereclassifiedintoprofitandloss | ||
| 1.Changesinre-measurementofthedefinedbenefitplan | ||
| 2.Othercomprehensiveincomethatcannotbetransferredtoprofitorlossundertheequitymethod | ||
| 3.Changesinfairvalueofotherequityinstrumentinvestments | ||
| 4.Changesinfairvalueofenterprise'sowncreditrisk | ||
| 5.Other | ||
| (II)Othercomprehensiveincomethatcanbere-classifiedintoprofit | -5,577,527.76 | 9,405,009.07 |
| andloss | ||
| 1.Othercomprehensiveincomethatcanbecarriedforwardtoprofitandlossundertheequitymethod | ||
| 2.Changesinfairvalueofotherdebtinvestments | ||
| 3.Theamountoffinancialassetsreclassifiedandincludedinothercomprehensiveincome | ||
| 4.Creditimpairmentreservesofotherdebtinvestment | ||
| 5.Cashflowhedgereserve | ||
| 6.Translationdifferenceofforeigncurrencyfinancialstatements | -5,577,527.76 | 9,405,009.07 |
| 7.Other | ||
| Netoftaxfromothercomprehensiveincomeattributabletominorityshareholders | ||
| VII.Totalcomprehensiveincome | 141,560,954.58 | 196,800,076.30 |
| Totalcomprehensiveincomeattributabletoownersoftheparentcompany | 141,560,954.58 | 196,800,076.30 |
| Totalcomprehensiveincomeattributabletominorityshareholders | ||
| VIII.Earningspershare: | ||
| (I)Basicearningspershare | 0.3568 | 0.4517 |
| (II)Dilutedearningspershare | 0.3564 | 0.4517 |
LegalRepresentative:ZhangXuhuaCFO:SongYaomingFinancialManager:TianHui
4.ProfitStatementofParentCompany
Unit:RMB
| Item | Semi-annual2024 | Semi-annual2023 |
| I.Operatingrevenue | 95,651,893.86 | 92,042,875.14 |
| Less:operatingcost | 28,763,610.04 | 22,121,058.14 |
| Taxesandsurcharges | 3,754,920.70 | 3,858,296.21 |
| SellingandDistributionExpenses | 13,488,147.65 | 510,613.70 |
| GeneralandAdministrativeExpenses | 27,338,182.18 | 29,511,087.70 |
| R&DExpenditures | 6,949,411.52 | 5,986,203.21 |
| Financialexpenses | -888,010.29 | -103,859.98 |
| Including:interestexpenses | 305,742.86 | 1,476,552.70 |
| Interestincome | 1,605,624.26 | 1,953,770.61 |
| Plus:otherincome | 194,361.73 | 753,278.99 |
| Investmentincome("-"forlosses) | 89,872.06 | -1,697,481.65 |
| Including:incomefrominvestmentinassociatesandjointventures | 89,872.06 | -1,697,481.65 |
| Gainsfromderecognitionoffinancialassetsmeasuredatamortizedcost("-"forlosses) | ||
| Netexposurehedgingincome("-"forlosses) | ||
| Gainsfromchangesinfairvalue("-"forlosses) | ||
| Creditimpairmentlosses("-"forlosses) | -520,369.57 | -362,763.81 |
| Assetimpairmentlosses("-"forlosses) | ||
| Assetdisposalincome("-"forlosses) | 2,920,369.62 | -37,783.55 |
| 2.Operatingprofits("-"forlosses) | 18,929,865.90 | 28,814,726.14 |
| Plus:non-operatingrevenue | 973.45 | 8,037.20 |
| Less:non-operatingexpenses | 334,515.20 | 837.18 |
| 3.Totalprofits("-"fortotallosses) | 18,596,324.15 | 28,821,926.16 |
| Less:incometaxexpenses | 4,661,624.51 | 8,154,082.65 |
| 4.Netprofits("-"fornetlosses) | 13,934,699.64 | 20,667,843.51 |
| (1)Netprofitfromcontinuingoperations("-"fornetlosses) | 13,934,699.64 | 20,667,843.51 |
| (2)Netprofitfromdiscontinuedoperations("-"fornetlosses) | ||
| V.Netoftaxofothercomprehensiveincome | ||
| (I)Othercomprehensiveincomesthatcannotbereclassifiedintoprofitandloss | ||
| 1.Changesinre-measurementofthedefinedbenefitplan | ||
| 2.Othercomprehensiveincomethatcannotbetransferredtoprofitorlossundertheequitymethod | ||
| 3.Changesinfairvalueofotherequityinstrumentinvestments | ||
| 4.Changesinfairvalueofenterprise'sowncreditrisk | ||
| 5.Other | ||
| (II)Othercomprehensiveincomethatcanbere-classifiedintoprofitandloss | ||
| 1.Othercomprehensiveincomethatcanbecarriedforwardtoprofitandlossundertheequitymethod | ||
| 2.Changesinfairvalueofotherdebtinvestments | ||
| 3.Theamountoffinancialassetsreclassifiedandincludedinothercomprehensiveincome | ||
| 4.Creditimpairmentreserves |
| ofotherdebtinvestment | ||
| 5.Cashflowhedgereserve | ||
| 6.Translationdifferenceofforeigncurrencyfinancialstatements | ||
| 7.Other | ||
| VI.Totalcomprehensiveincome | 13,934,699.64 | 20,667,843.51 |
| VII.Earningspershare: | ||
| (I)Basicearningspershare | ||
| (II)Dilutedearningspershare |
LegalRepresentative:ZhangXuhuaCFO:SongYaomingFinancialManager:TianHui
5.ConsolidatedCashFlowStatement
Unit:RMB
| Item | Semi-annual2024 | Semi-annual2023 |
| I.Cashflowsfromoperatingactivities: | ||
| Cashreceivedfromsaleofgoodsandrenderingofservices | 2,242,943,860.28 | 2,544,494,031.57 |
| Netincreaseindepositsfromcustomersandinterbank | ||
| Netincreaseinborrowingsfromthecentralbank | ||
| Netincreaseinfundsborrowedfromotherfinancialinstitutions | ||
| Cashreceivedforpremiumsundertheoriginalinsurancecontract | ||
| Netcashreceivedfromreinsurancebusiness | ||
| Netincreaseindepositsfromtheinsuredandinvestmentfunds | ||
| Cashreceivedforinterest,servicechargesandcommissions | ||
| Netincreaseinborrowedfunds | ||
| Netincreaseinfundsofrepurchasingbusiness | ||
| Netcashreceivedfromvicariouslytradedsecurities | ||
| Refundoftaxesandsurcharges | 1,361,806.68 | 850,371.86 |
| Cashreceivedfromotheroperatingactivities | 22,763,002.95 | 37,298,851.19 |
| Sub-totalofcashinflowfromoperatingactivities | 2,267,068,669.91 | 2,582,643,254.62 |
| Cashpaidforpurchaseofgoodsandrenderingofservices | 1,493,308,339.25 | 1,584,272,785.87 |
| Netincreaseinloansandadvancestocustomers | ||
| Netincreaseindepositsinthecentralbankanddepositsfrominterbank | ||
| Cashpaidforthecompensationundertheoriginalinsurancecontract |
| Netincreaseinlendingfunds | ||
| Cashpaidforinterest,servicechargesandcommissions | ||
| Cashpaidforpolicydividends | ||
| Cashpaidtoandforemployees | 336,053,098.67 | 336,029,420.86 |
| Taxesandfeespaid | 115,761,812.75 | 135,231,581.42 |
| Othercashpaymentsrelatingtooperatingactivities | 185,414,622.72 | 182,449,622.85 |
| Sub-totalofcashoutflowfromoperatingactivities | 2,130,537,873.39 | 2,237,983,411.00 |
| NetCashFlowsfromOperatingActivities | 136,530,796.52 | 344,659,843.62 |
| II.Cashflowsfrominvestingactivities: | ||
| Cashreceivedfromdisinvestment | ||
| Cashreceivedfrominvestmentincome | 196,270.19 | |
| Netcashreceivedfromdisposaloffixedassets,intangibleassetsandotherlong-termassets | 4,813,262.87 | 3,545.41 |
| Netcashreceivedfromdisposalofsubsidiariesandotherbusinessunits | ||
| Cashreceivedfromotherinvestingactivities | 120,049,969.61 | |
| Sub-totalofcashinflowfrominvestingactivities | 125,059,502.67 | 3,545.41 |
| Cashpaidtoacquireandconstructfixedassets,intangibleassetsandotherlong-termassets | 43,613,301.74 | 36,273,631.65 |
| Cashpaidforinvestments | ||
| Netincreaseinpledgedloans | ||
| Netcashpaidtoacquiresubsidiariesandotherbusinessunits | ||
| Cashpaidforotherinvestingactivities | 165,092,806.07 | |
| Sub-totalofcashoutflowfrominvestingactivities | 208,706,107.81 | 36,273,631.65 |
| Netcashflowsfromoperatingactivities | -83,646,605.14 | -36,270,086.24 |
| III.Cashflowsfromfinancingactivities: | ||
| Cashreceivedfrominvestors | ||
| Including:Cashreceivedfromtheinvestmentofminorityshareholdersofthesubsidiaries | ||
| Cashreceivedfromborrowings | 320,000,000.00 | 250,000,000.00 |
| Cashreceivedfromotherfinancingactivities | ||
| Sub-totalofcashinflowfromfinancingactivities | 320,000,000.00 | 250,000,000.00 |
| Cashpaidfordebtrepayments | 250,000,000.00 | 150,000,000.00 |
| Cashpaidfordistributionofdividendsandprofitsorpaymentofinterest | 164,868,413.68 | 110,259,489.52 |
| Including:Dividendsandprofitspaidbysubsidiariestominority |
| shareholders | ||
| Cashpaidforotherfinancingactivities | 58,254,091.98 | 92,370,343.32 |
| Sub-totalofcashflowsfromfinancingactivities | 473,122,505.66 | 352,629,832.84 |
| Netcashflowsfromfinancingactivities | -153,122,505.66 | -102,629,832.84 |
| IV.Effectofexchangeratechangesoncashandcashequivalents | -34,830.30 | -138,593.06 |
| V.Netincreaseincashandcashequivalents | -100,273,144.58 | 205,621,331.48 |
| Add:openingbalanceofcashandcashequivalents | 504,629,153.71 | 313,747,463.64 |
| VI.Closingbalanceofcashandcashequivalents | 404,356,009.13 | 519,368,795.12 |
LegalRepresentative:ZhangXuhuaCFO:SongYaomingFinancialManager:TianHui
6.CashFlowStatementofParentCompany
Unit:RMB
| Item | Semi-annual2024 | Semi-annual2023 |
| I.Cashflowsfromoperatingactivities: | ||
| Cashreceivedfromsaleofgoodsandrenderingofservices | 92,269,424.38 | 84,192,699.46 |
| Refundoftaxesandsurcharges | ||
| Cashreceivedfromotheroperatingactivities | 1,967,128,778.52 | 2,141,372,420.70 |
| Sub-totalofcashinflowfromoperatingactivities | 2,059,398,202.90 | 2,225,565,120.16 |
| Cashpaidforpurchaseofgoodsandrenderingofservices | 9,782,620.00 | |
| Cashpaidtoandforemployees | 44,398,658.47 | 29,190,598.81 |
| Taxesandfeespaid | 12,856,580.23 | 5,480,282.08 |
| Othercashpaymentsrelatingtooperatingactivities | 1,899,095,301.14 | 2,002,201,028.42 |
| Sub-totalofcashoutflowfromoperatingactivities | 1,966,133,159.84 | 2,036,871,909.31 |
| NetCashFlowsfromOperatingActivities | 93,265,043.06 | 188,693,210.85 |
| II.Cashflowsfrominvestingactivities: | ||
| Cashreceivedfromdisinvestment | ||
| Cashreceivedfrominvestmentincome | ||
| Netcashreceivedfromdisposaloffixedassets,intangibleassetsandotherlong-termassets | 4,741,325.47 | 200.00 |
| Netcashreceivedfromdisposalofsubsidiariesandotherbusinessunits | ||
| Cashreceivedfromotherinvestingactivities | ||
| Sub-totalofcashinflowfrominvestingactivities | 4,741,325.47 | 200.00 |
| Cashpaidtoacquireandconstructfixedassets,intangibleassetsand | 1,946,698.06 | 4,515,871.59 |
| otherlong-termassets | ||
| Cashpaidforinvestments | ||
| Netcashpaidtoacquiresubsidiariesandotherbusinessunits | ||
| Cashpaidforotherinvestingactivities | ||
| Sub-totalofcashoutflowfrominvestingactivities | 1,946,698.06 | 4,515,871.59 |
| Netcashflowsfromoperatingactivities | 2,794,627.41 | -4,515,671.59 |
| III.Cashflowsfromfinancingactivities: | ||
| Cashreceivedfrominvestors | ||
| Cashreceivedfromborrowings | 320,000,000.00 | 250,000,000.00 |
| Cashreceivedfromotherfinancingactivities | ||
| Sub-totalofcashinflowfromfinancingactivities | 320,000,000.00 | 250,000,000.00 |
| Cashpaidfordebtrepayments | 250,000,000.00 | 150,000,000.00 |
| Cashpaidfordistributionofdividendsandprofitsorpaymentofinterest | 164,868,413.68 | 110,259,489.52 |
| Cashpaidforotherfinancingactivities | 79,409.91 | 35,483,644.86 |
| Sub-totalofcashflowsfromfinancingactivities | 414,947,823.59 | 295,743,134.38 |
| Netcashflowsfromfinancingactivities | -94,947,823.59 | -45,743,134.38 |
| IV.Effectofexchangeratechangesoncashandcashequivalents | 10,273.00 | 109,517.02 |
| V.Netincreaseincashandcashequivalents | 1,122,119.88 | 138,543,921.90 |
| Add:openingbalanceofcashandcashequivalents | 308,230,255.35 | 274,691,023.16 |
| VI.Closingbalanceofcashandcashequivalents | 309,352,375.23 | 413,234,945.06 |
LegalRepresentative:ZhangXuhuaCFO:SongYaomingFinancialManager:TianHui
7.ConsolidatedStatementofChangesinOwner’sEquity
Amountincurrentperiod
Unit:RMB
| Item | Semi-annual2024 | ||||||||||||||
| Equityattributabletoownersoftheparentcompany | Minorityinterests | Totalowner'sequity | |||||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserve | Less:treasurystock | Othercomprehensiveincome | Specialreserve | Surplusreserves | Generalriskprovisions | Undistributedprofits | Other | Sub-total | |||||
| Preferredstock | Perpetualbonds | Other | |||||||||||||
| 1.Balanceattheend | 415,21 | 990,15 | 78,645 | 19,325 | 3,223, | 275,01 | 1,709, | 3,333, | 3,333, | ||||||
| ofthepreviousyear | 9,970.00 | 9,033.17 | ,532.23 | ,335.93 | 158.06 | 0,401.50 | 513,385.76 | 805,752.19 | 805,752.19 | ||||
| Add:Changeinaccountingpolicy | |||||||||||||
| Correctionofpreviouserrors | |||||||||||||
| Other | |||||||||||||
| 2.Balanceatthebeginningofthecurrentyear | 415,219,970.00 | 990,159,033.17 | 78,645,532.23 | 19,325,335.93 | 3,223,158.06 | 275,010,401.50 | 1,709,513,385.76 | 3,333,805,752.19 | 3,333,805,752.19 | ||||
| 3.Changesinincrease/decreaseinthecurrentperiod("-"fordecrease) | -9,355,763.00 | -54,078,839.21 | -65,199,717.42 | -5,577,527.76 | 541,857.36 | -15,207,200.47 | -18,477,755.66 | -18,477,755.66 | |||||
| (I)Totalcomprehensiveincome | -5,577,527.76 | 147,138,482.34 | 141,560,954.58 | 141,560,954.58 | |||||||||
| (II)Contributionandwithdrawalofcapitalbyowners | -9,355,763.00 | -54,078,839.21 | -65,199,717.42 | 1,765,115.21 | 1,765,115.21 | ||||||||
| 1.Commonstockcontributedbyowners | -9,355,763.00 | -54,984,906.42 | -64,340,669.42 | ||||||||||
| 2.Capitalinvestedbyholdersofotherequityinstruments | |||||||||||||
| 3.Share-basedpaymentrecognizedinowners' | 906,067.21 | -859,048.00 | 1,765,115.21 | 1,765,115.21 |
| equity | ||||||
| 4.Others | ||||||
| (III)Profitdistribution | -162,345,682.81 | -162,345,682.81 | -162,345,682.81 | |||
| 1.Withdrawalofsurplusreserve | ||||||
| 2.Withdrawalofgeneralriskreserves | ||||||
| 3.Distributiontoowners(orshareholders) | -162,345,682.81 | -162,345,682.81 | -162,345,682.81 | |||
| 4.Others | ||||||
| (4)Internalcarry-forwardofowners'equity | ||||||
| 1.Capitalreservetransferredtopaid-incapital(orsharecapital) | ||||||
| 2.Surplusreservetransferredtopaid-incapital(orsharecapital) | ||||||
| 3.Surplusreserveoffsettinglosses | ||||||
| 4.Changesindefinedbenefitplanscarriedforwardtoretained |
| earnings | |||||||||||||
| 5.Othercomprehensiveincometransferredtoretainedearnings | |||||||||||||
| 6.Others | |||||||||||||
| (V)Specialreserves | 541,857.36 | 541,857.36 | 541,857.36 | ||||||||||
| 1.Withdrawalinthecurrentperiod | 760,556.40 | 760,556.40 | 760,556.40 | ||||||||||
| 2.Utilizationinthecurrentperiod | -218,699.04 | -218,699.04 | -218,699.04 | ||||||||||
| (VI)Others | |||||||||||||
| 4.Balanceattheendofthecurrentperiod | 405,864,207.00 | 936,080,193.96 | 13,445,814.81 | 13,747,808.17 | 3,765,015.42 | 275,010,401.50 | 1,694,306,185.29 | 3,315,327,996.53 | 3,315,327,996.53 |
AmountLastYear
Unit:RMB
| Item | Semi-annual2023 | ||||||||||||||
| Equityattributabletoownersoftheparentcompany | Minorityinterests | Totalowner'sequity | |||||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserve | Less:treasurystock | Othercomprehensiveincome | Specialreserve | Surplusreserves | Generalriskprovisions | Undistributedprofits | Other | Sub-total | |||||
| Preferredstock | Perpetualbonds | Other | |||||||||||||
| 1.Balanceattheendofthepreviousyear | 417,627,960.00 | 1,007,086,643.48 | 50,759,806.16 | 5,739,589.89 | 2,012,064.91 | 275,010,401.50 | 1,479,706,638.53 | 3,136,423,492.15 | 3,136,423,492.15 | ||||||
| Add:Changeinaccountingpolicy | |||||||||||||||
| Correctionof | |||||||||||||||
| previouserrors | |||||||||||||
| Other | |||||||||||||
| 2.Balanceatthebeginningofthecurrentyear | 417,627,960.00 | 1,007,086,643.48 | 50,759,806.16 | 5,739,589.89 | 2,012,064.91 | 275,010,401.50 | 1,479,706,638.53 | 3,136,423,492.15 | 3,136,423,492.15 | ||||
| 3.Changesinincrease/decreaseinthecurrentperiod("-"fordecrease) | -3,732,336.52 | -3,630,088.51 | 9,405,009.07 | 735,198.09 | 83,237,295.23 | 93,275,254.38 | 93,275,254.38 | ||||||
| (I)Totalcomprehensiveincome | 9,405,009.07 | 187,395,067.23 | 196,800,076.30 | 196,800,076.30 | |||||||||
| (II)Contributionandwithdrawalofcapitalbyowners | -3,732,336.52 | -3,630,088.51 | -102,248.01 | -102,248.01 | |||||||||
| 1.Commonstockcontributedbyowners | 17,007,830.70 | -17,007,830.70 | -17,007,830.70 | ||||||||||
| 2.Capitalinvestedbyholdersofotherequityinstruments | |||||||||||||
| 3.Share-basedpaymentrecognizedinowners'equity | -3,729,602.11 | -20,637,919.21 | 16,908,317.10 | 16,908,317.10 | |||||||||
| 4.Others | -2,734.41 | -2,734.41 | -2,734.41 | ||||||||||
| (III)Profitdistribution | -104,157,772.00 | -104,157,772.00 | -104,157,772.00 |
| 1.Withdrawalofsurplusreserve | ||||||
| 2.Withdrawalofgeneralriskreserves | ||||||
| 3.Distributiontoowners(orshareholders) | -104,157,772.00 | -104,157,772.00 | -104,157,772.00 | |||
| 4.Others | ||||||
| (4)Internalcarry-forwardofowners'equity | ||||||
| 1.Capitalreservetransferredtopaid-incapital(orsharecapital) | ||||||
| 2.Surplusreservetransferredtopaid-incapital(orsharecapital) | ||||||
| 3.Surplusreserveoffsettinglosses | ||||||
| 4.Changesindefinedbenefitplanscarriedforwardtoretainedearnings | ||||||
| 5.Othercomprehensiveincometransferredtoretainedearnings | ||||||
| 6.Others |
| (V)Specialreserves | 735,198.09 | 735,198.09 | 735,198.09 | ||||||||||
| 1.Withdrawalinthecurrentperiod | 816,618.92 | 816,618.92 | 816,618.92 | ||||||||||
| 2.Utilizationinthecurrentperiod | -81,420.83 | -81,420.83 | -81,420.83 | ||||||||||
| (VI)Others | |||||||||||||
| 4.Balanceattheendofthecurrentperiod | 417,627,960.00 | 1,003,354,306.96 | 47,129,717.65 | 15,144,598.96 | 2,747,263.00 | 275,010,401.50 | 1,562,943,933.76 | 3,229,698,746.53 | 3,229,698,746.53 |
LegalRepresentative:ZhangXuhuaCFO:SongYaomingFinancialManager:TianHui
8.VariationofequityattributabletoownersoftheparentcompanyAmountincurrentperiod
Unit:RMB
| Item | Semi-annual2024 | |||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserve | Less:treasurystock | Othercomprehensiveincome | Specialreserve | Surplusreserves | Undistributedprofits | Other | Totalowner'sequity | |||
| Preferredstock | Perpetualbonds | Other | ||||||||||
| 1.Balanceattheendofthepreviousyear | 415,219,970.00 | 993,037,528.98 | 78,645,532.23 | 275,010,401.50 | 1,063,629,483.35 | 2,668,251,851.60 | ||||||
| Add:Changeinaccountingpolicy | ||||||||||||
| Correctionofpreviouserrors | ||||||||||||
| Other | ||||||||||||
| 2.Balanceatthebeginningofthecurrent | 415,219,970.00 | 993,037,528.98 | 78,645,532.23 | 275,010,401.50 | 1,063,629,483.35 | 2,668,251,851.60 | ||||||
| year | ||||||||
| 3.Changesinincrease/decreaseinthecurrentperiod("-"fordecrease) | -9,355,763.00 | -54,078,839.21 | -65,199,717.42 | -148,410,983.16 | -146,645,867.95 | |||
| (I)Totalcomprehensiveincome | 13,934,699.65 | 13,934,699.65 | ||||||
| (II)Contributionandwithdrawalofcapitalbyowners | -9,355,763.00 | -54,078,839.21 | -65,199,717.42 | 1,765,115.21 | ||||
| 1.Commonstockcontributedbyowners | -9,355,763.00 | -54,984,906.42 | -64,340,669.42 | |||||
| 2.Capitalinvestedbyholdersofotherequityinstruments | ||||||||
| 3.Share-basedpaymentrecognizedinowners'equity | 906,067.21 | -859,048.00 | 1,765,115.21 | |||||
| 4.Others | ||||||||
| (III)Profitdistribution | -162,345,682.81 | -162,345,682.81 | ||||||
| 1.Withdrawalofsurplusreserve | ||||||||
| 2.Distributiontoowners(orshareholders) | -162,345,682.81 | -162,345,682.81 | ||||||
| 3.Others | ||||||||
| (4)Internalcarry-forwardofowners'equity |
| 1.Capitalreservetransferredtopaid-incapital(orsharecapital) | |||||||||
| 2.Surplusreservetransferredtopaid-incapital(orsharecapital) | |||||||||
| 3.Surplusreserveoffsettinglosses | |||||||||
| 4.Changesindefinedbenefitplanscarriedforwardtoretainedearnings | |||||||||
| 5.Othercomprehensiveincometransferredtoretainedearnings | |||||||||
| 6.Others | |||||||||
| (V)Specialreserves | |||||||||
| 1.Withdrawalinthecurrentperiod | |||||||||
| 2.Utilizationinthecurrentperiod | |||||||||
| (VI)Others | |||||||||
| 4.Balanceattheendofthecurrentperiod | 405,864,207.00 | 938,958,689.77 | 13,445,814.81 | 275,010,401.50 | 915,218,500.19 | 2,521,605,983.65 |
AmountLastYear
Unit:RMB
| Item | Semi-annual2023 | |||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserve | Less:treasurystock | Othercomprehensiveincome | Specialreserve | Surplusreserves | Undistributedprofits | Other | Totalowner'sequity | |||
| Preferredstock | Perpetualbonds | Other | ||||||||||
| 1.Balanceattheendofthepreviousyear | 417,627,960.00 | 1,010,917,776.19 | 50,759,806.16 | 275,010,401.50 | 943,017,166.88 | 2,595,813,498.41 | ||||||
| Add:Changeinaccountingpolicy | ||||||||||||
| Correctionofpreviouserrors | ||||||||||||
| Other | ||||||||||||
| 2.Balanceatthebeginningofthecurrentyear | 417,627,960.00 | 1,010,917,776.19 | 50,759,806.16 | 275,010,401.50 | 943,017,166.88 | 2,595,813,498.41 | ||||||
| 3.Changesinincrease/decreaseinthecurrentperiod("-"fordecrease) | -4,684,973.42 | -3,630,088.51 | -83,489,928.49 | -84,544,813.40 | ||||||||
| (I)Totalcomprehensiveincome | 20,667,843.51 | 20,667,843.51 | ||||||||||
| (II)Contributionandwithdrawalofcapitalbyowners | -4,684,973.42 | -3,630,088.51 | -1,054,884.91 | |||||||||
| 1.Commonstockcontributedbyowners | 17,007,830.70 | -17,007,830.70 | ||||||||||
| 2.Capitalinvestedbyholdersofotherequityinstruments | ||||||||||||
| 3.Share-basedpaymentrecognizedinowners'equity | -4,682,239.01 | -20,637,919.21 | 15,955,680.20 | ||||
| 4.Others | -2,734.41 | -2,734.41 | |||||
| (III)Profitdistribution | -104,157,772.00 | -104,157,772.00 | |||||
| 1.Withdrawalofsurplusreserve | |||||||
| 2.Distributiontoowners(orshareholders) | -104,157,772.00 | -104,157,772.00 | |||||
| 3.Others | |||||||
| (4)Internalcarry-forwardofowners'equity | |||||||
| 1.Capitalreservetransferredtopaid-incapital(orsharecapital) | |||||||
| 2.Surplusreservetransferredtopaid-incapital(orsharecapital) | |||||||
| 3.Surplusreserveoffsettinglosses | |||||||
| 4.Changesindefinedbenefitplanscarriedforwardtoretained |
| earnings | |||||||||
| 5.Othercomprehensiveincometransferredtoretainedearnings | |||||||||
| 6.Others | |||||||||
| (V)Specialreserves | |||||||||
| 1.Withdrawalinthecurrentperiod | |||||||||
| 2.Utilizationinthecurrentperiod | |||||||||
| (VI)Others | |||||||||
| 4.Balanceattheendofthecurrentperiod | 417,627,960.00 | 1,006,232,802.77 | 47,129,717.65 | 275,010,401.50 | 859,527,238.39 | 2,511,268,685.01 |
LegalRepresentative:ZhangXuhuaCFO:SongYaomingFinancialManager:TianHui
3.Companyprofile
1.Company'sregisteredlocation,organizationalform,andheadquartersaddressFIYTAPrecisionTechnologyCo.,Ltd.(hereinafterreferredtoasthe"Company")wasrestructuredandestablishedby"ShenzhenFIYTATimingIndustryCompany"onDecember25,1992withtheapprovaloftheSFBF[1992]No.1259DocumentoftheGeneralOfficeofthePeople'sGovernmentofShenzhenMunicipalitybyShenzhenIndustryandTradeCenterofChinaAviationTechnologyImport&Export(laterrenamedas"ChinaAviationTechnologyShenzhenCo.,Ltd.")astheinitiator.ThecompanywaslistedontheShenzhenStockExchangeonJune3,1993,andnowholdsabusinesslicensewithaunifiedsocialcreditcodeof91440300192189783K.
Afterthedistributionofbonusshares,placementofnewshares,capitalstockconversionandfurtherissueofnewsharesovertheyears,asofJune30,2024,thecompanyhasissuedatotalof405,864,207sharesintotal,witharegisteredcapitalofRMB405,864,207.TheregisteredaddressisFIYTATechnologyBuilding,GaoxinSouth1stRoad,NanshanDistrict,ShenzhenCity,GuangdongProvince.ThecontrollingshareholderisAVICInternationalHoldingsLimited,andtheactualcontrollerisAviationIndustryCorporationofChina,LTD.
2.Businessnatureandmainoperatingactivitiesofthecompany
ThebusinessnatureandmainoperatingactivitiesoftheCompanyanditssubsidiariesinclude:generalbusinessitems:salesofclocksandwatches;Manufacturingofclocksandtimekeepinginstruments;Salesofclocks,watchesandtimekeepinginstruments;Jewelrywholesale;Jewelryretail;Manufacturingofwearablesmartdevices;Salesofwearablesmartdevices;leasingofnon-residentialrealestate;professionaldesignservices;Salesofhouseholdappliances;Salesofmobilesatellitecommunicationterminals.(exceptforprojectssubjecttoapprovalbylaws,businessactivitiesindependentlycarriedoutaccordingtolawwithbusinesslicense)Licenseditems:property
management;Goodsimportandexport.(Anybusinesswhichrequirestobeapprovedbylawcanonlybecarriedoutafterapprovalofrelevantauthorities.Specificbusinessitemsaresubjecttotheapprovaldocumentsorlicensesissuedbytheseauthorities.)
3.ScopeoftheconsolidatedfinancialstatementsThereare12subsidiariesincludedinthescopeofconsolidationinthecurrentperiod.SeeNote10,Equityinotherentities,fordetails.Thereisnochangeintheentitiesincludedinthescopeoftheconsolidatedfinancialstatementsforthecurrentperiodcomparedtothepreviousperiod.
4.ApprovalontheissuanceofthefinancialstatementsThesefinancialstatementswereapprovedforissuancebytheCompany'sDirectoronAug.19,2024.
4.PreparationBasisofFinancialStatements
1.Basisofpreparation
TheCompanyrecognizedandmeasuredtransactionsandeventsthathaveactuallyoccurredinaccordancewiththeBasicStandardforEnterpriseAccountingissuedbytheMinistryofFinance,specificenterpriseaccountingstandards,applicationguidelines,interpretations,andotherrelevantprovisions(collectivelyreferredtoas'EnterpriseAccountingStandards).Onthisbasis,combinedwiththeprovisionsofNo.15RulesonInformationDisclosureandCompilationofCompaniesOfferingSecuritiestothePublic-GeneralProvisionsonFinancialReports(revisedin2023)byChinaSecuritiesRegulatoryCommission,theCompanypreparedthefinancialstatements.
2.Goingconcern
TheCompanyevaluateditsabilityofgoingconcernfor12monthsfromtheendofthereportingperiod,andfoundnomattersorcircumstancesthathaveseriousdoubtsabouttheabilityofgoingconcern.Therefore,thefinancialstatementswerepreparedontheassumptionofgoingconcern.
5.ImportantaccountingpoliciesandestimatesTipsonspecificaccountingpoliciesandaccountingestimates:
1.TheCompanydeterminesspecificaccountingpoliciesandaccountingestimatesaccordingtothecharacteristicsofproductionandoperation,mainlyreflectedinthemethodofexpectedcreditlossofreceivables(NotesV.12,NotesV.13,NotesV.15),thevaluationmethodofinventories(NotesV.17),thedepreciationofinvestmentproperties,fixedassetsandintangibleassets(NotesV.23,NotesV.24,NotesV.29),income(NotesV.37),etc.
2.TheCompanycontinuouslyevaluatestheimportantaccountingestimatesandkeyassumptionsadoptedbasedonhistoricalexperienceandotherfactors,includingreasonableexpectationsoffutureevents.Thefollowingsignificantaccountingestimatesandkeyassumptions,ifsubjecttosubstantialchanges,mayhaveasignificantimpactonthecarryingamountsofassetsandliabilitiesinfutureaccountingperiods:
(1)Provisionforbaddebtsofaccountsreceivableandotherreceivablesismadeaccordingtotheaccountingstandards.Theprovisionforimpairmentofaccountsreceivableandotherreceivablesshouldbeestimatedbydescribingtheexpectedcreditlossesofaccountsreceivableandothersreceivablejudgedbythemanagement.IfanyeventsorchangesincircumstancesindicatethattheCompanymaynotbeabletorecovertherelevantbalances,itisnecessarytouseestimatestoaccrueprovisionsforaccountsreceivableandotherreceivables.Iftheexpectedfigure
isdifferentfromtheoriginalestimate,thedifferencewillaffectthebookvalueofaccountsreceivableandotherreceivables,aswellastheimpairmentprovisionduringthechangeinestimate.
(2)Estimationofinventoryimpairment.Itshalldescribethattheinventoriesaremeasuredatthelowerofcostandnetrealizablevalueonthebalancesheetdate,andthecalculationofnetrealizablevaluerequirestheuseofassumptionsandestimates.Ifmanagementrevisestheestimatedsellingpricesandthecostsandexpensestobeincurreduponcompletion,itwillaffecttheestimatednetrealizablevalueofinventories.Thisdifferencewillimpacttheprovisionforinventorywrite-downs.
(3)Estimationofimpairmentoflong-termassets.Itshouldbedescribedthatwhenthemanagementjudgeswhetherthereisimpairmentoflong-termassets,itmainlyevaluatesandanalyzesfromthefollowingaspects:(1)whethertheeventsthataffecttheimpairmentofassetshaveoccurred;(2)Whetherthepresentvalueofthecashflowsexpectedtobeobtainedduetothecontinuoususeordisposaloftheassetsislowerthanthebookvalueoftheassets;And(3)whethertheimportantassumptionsusedinthepresentvalueofexpectedfuturecashflowsareappropriate.
Iftheassumptionsusedbythecompanytodetermineimpairment,suchasprofitability,discountrate,andgrowthrateassumptionsinthepresentvaluemethodoffuturecashflows,change,thismaysignificantlyimpactthepresentvalueusedinimpairmenttestingandresultintheimpairmentofthecompany'slong-termassets.
(4)Depreciationandamortization.TheCompany'sestimatesoftheestimatedusefullifeandestimatednetresidualvalueoftheinvestmentproperties,fixedassetsandintangibleassetsarebasedontheactualusefullifeandnetresidualvalueoftheassetswithsimilarnatureandfunctionsinthepast.Duringtheuseoftheassets,theeconomicenvironment,technologicalenvironmentandotherenvironmentsinwhichtheassetsarelocatedmayhaveagreaterimpactontheusefullifeandestimatednetresidualvalueoftheassets.Ifthereisanydifferencebetweentheestimatedusefullifeandnetresidualvalueoftheassetsandtheoriginalestimates,themanagementwillmakeappropriateadjustments.
(5)Share-basedpayment.Oneachbalancesheetdatewithinthewaitingperiod,themanagementmakesthebestestimateofthenumberofequityinstrumentsexpectedtovestisrevisedbasedonsubsequentinformationsuchaschangesinthenumberofemployeeseligibleforvesting.Ifthereisanydifferencebetweenthechangeinthenumberofemployeeswithexercisablerightsinthecurrentyearandtheoriginalestimates,themanagementwillmakeappropriateadjustments.
(6)DeferredtaxassetsDeferredtaxassetsshouldberecognizedforallunusedtaxlossestotheextentthatitisprobablethattherewillbesufficienttaxableprofitstooffsetthelosses.Thisrequiresthemanagementtousealotofjudgmenttoestimatethetimeandamountoffuturetaxableprofits,combinedwithtaxplanningstrategies,todeterminetheamountofdeferredtaxassetsthatshouldberecognized.
(7)Incometax.Itshouldbedescribedinnormalbusinessactivities,thereareuncertaintiesinthefinaltaxtreatmentofmanytransactionsandmatters.Significantjudgmentsneedtobemadewhenaccruingincometax.Ifthereisadifferencebetweenthefinalrecognizedoutcomeforthesetaxesandtheinitialreceivedamount,itwillhaveanimpactontheabove-mentionedtaxesinthefinalrecognitionperiod.
1.StatementofCompliancewithAccountingStandardforBusinessEnterprises
ThefinancialstatementpreparedbytheCompanymeetstherequirementsofaccountingstandardsforenterprises,andauthenticallyandcompletelyreflectsfinancialstatus,businessperformance,cashflowandotherrelativeinformationontheCompanyduringthereportingperiod.
2.Accountingperiod
AnaccountingyearisfromJanuary1toDecember31oftheGregoriancalendar.
3.OperatingcycleTheoperatingcyclereferstotheperiodfromtheacquisitionofassetsforprocessingtotherealizationofcashorcashequivalents.TheCompanytakes12monthsasanoperatingcycleandtakesitastheclassificationstandardfortheliquidityofassetsandliabilities.
4.FunctionalcurrencyTheCompanyanditsdomesticsubsidiariesuseRMBasitsfunctionalcurrency.FIYTA(HONGKONG)LIMITED,anoverseassubsidiaryoftheCompany,determinesHKDasitsfunctionalcurrencyaccordingtothecurrencyinthemaineconomicenvironmentinwhichitoperates.MontresChourietSA,asubsidiaryofFIYTA(HONGKONG)LIMITED,determinesSwissfrancasitsfunctionalcurrencybasedonthecurrencyinthemaineconomyenvironmentinwhichitoperates,whichisconvertedintoRMBwhenpreparingthefinancialstatements.ThecurrencyadoptedbytheCompanyforthepreparationofthefinancialstatementsisRMB.
5.Determinationmethodandselectionbasisofmaterialitycriteria
| Item | Materialitycriteria |
| Accountsreceivablewithsignificantamountreversedfromprovisionforbaddebtsorrecoveredinthecurrentperiod | SingleendingbalanceofmorethanRMB500,000 |
| Significantotherpayablewithanagingofoveroneyear | SingleendingbalanceofmorethanRMB1,000,000 |
6.Accountingtreatmentmethodsofbusinessmergerunderthecommoncontrolandnotunderthecommoncontrol
1.Iftheterms,conditionsandeconomicimpactofeachtransactionintheprocessofstep-by-stepbusinesscombinationmeetoneormoreofthefollowingconditions,multipletransactionswillbetakenasapackagetransactionforaccountingtreatment.
(1)Thesetransactionsareconcludedatthesametimeorundertheconsiderationofmutualinfluence;
(2)Thesetransactionscollectivelyachieveacompletecommercialresult;
(3)Theoccurrenceofonetransactiondependsontheoccurrenceofatleastoneothertransaction;
(4)Atransactionisuneconomicalonitsown,buteconomicalwhenconsideredtogetherwithothertransactions.
2.Businesscombinationundercommoncontrol
TheassetsandliabilitiesacquiredbytheCompanyinbusinesscombinationshallbemeasuredaccordingtothebookvalueoftheassetsandliabilities(includingthegoodwillformedbytheacquisitionofthemergedpartybytheultimatecontroller)ofthemergedpartyonthecombinationdateintheconsolidatedfinancialstatementsoftheultimatecontroller.Forthedifferencebetweenthebookvalueofthenetassetsacquiredinthemergerandthebookvalueofthemergerconsiderationpaid(orthetotalparvalueoftheissuedshares),thestockpremiuminthecapitalreserveshallbeadjusted.Ifthestockpremiuminthecapitalreserveisinsufficienttocoverthedifference,theretainedearningsshallbeadjusted.
Ifthereiscontingentconsiderationanditisnecessarytorecognizeestimatedliabilitiesorassets,thecapitalreserve(capitalpremiumorstockpremium)shallbeadjustedbasedonthedifferencebetweentheamountoftheestimatedliabilitiesorassetsandthesubsequentsettlementamountofthecontingentconsideration.Ifthecapitalreserveisinsufficient,theretainedearningsshallbeadjusted.
Forthebusinesscombinationfinallyrealizedthroughmultipletransactions,whichbelongstoapackagetransaction,thetransactionsshallbetakenasatransactionthatobtainscontrolforaccountingtreatment;Ifitdoesnotbelongtoapackagetransaction,thecapitalreserveshallbeadjustedbasedonthedifferencebetweentheinitialinvestmentcostofthelong-termequityinvestmentandthebookvalueofthelong-termequityinvestmentbeforethemergerplusthebookvalueofthenewlypaidconsiderationofthesharesonthemergerdate;ifthecapitalreserveisinsufficienttocoverthedifference,theretainedearningsshallbeadjusted.Fortheequityinvestmentheldbeforethemergerdate,othercomprehensiveincomerecognizedduetoaccountingbyequitymethodoraccountingbyfinancialinstrumentsandmeasurementstandardswillnotsubjecttoaccountingtreatmenttemporarilyuntiltheinvestmentisdisposedofonthesamebasisastherelatedassetsorliabilitiesdirectlydisposedbytheinvestee;Otherchangesintheowner'sequityinthenetassetsoftheinvestee,exceptnetprofitorlossandothercomprehensiveincomeandprofitdistribution,whicharerecognizedbytheequitymethod,willnotsubjecttoaccountingtreatmenttemporarilyuntiltheinvestmentistransferredtothecurrentprofitandloss.
3.Businesscombinationnotundercommoncontrol
AcquisitiondatereferstothedatewhentheCompanyactuallyobtainsthecontrolovertheacquiree,thatis,thedatewhenthecontroloverthenetassetsorproductionandoperationdecisionsoftheacquireeistransferredtotheCompany.Whenthefollowingconditionsaremetatthesametime,theCompanygenerallyconsidersthatthecontrolhasbeentransferred:
①Thebusinesscombinationcontractoragreementhasbeenapprovedbythecompany'sinternalauthority.
②Wherethebusinesscombinationneedstobeexaminedandapprovedbytherelevantnationalcompetentauthorities,theapprovalhasbeenobtained.
③Thenecessaryformalitiesforthetransferofpropertyrightshavebeenhandled.
④TheCompanyhaspaidmostofthemergerprice,andhastheabilityandplantopaytheremainingamount.
⑤TheCompanyhasactuallycontrolledthefinancialandoperatingpoliciesoftheacquiree,andenjoysthecorrespondingbenefitsandbearsthecorrespondingrisks.
Ontheacquisitiondate,theCompanymeasurestheassetspaidastheconsiderationforbusinesscombination,andtheliabilitiesincurredorassumedattheirfairvalues.Thedifferencebetweenthefairvalueandthebookvalueisrecognizedinthecurrentprofitorloss.
TheCompanyrecognizesasgoodwilltheexcessofthemergercostsoverthefairvalueoftheidentifiablenetassetsacquiredinthemerger;Theexcessofthefairvalueoftheidentifiablenetassetsacquiredoverthecostoftheacquisition,afterreview,shouldberecognizedinthecurrentperiod'sprofitorloss.
Ifthebusinesscombinationnotundercommoncontrolrealizedstepbystepthroughmultipletransactionsbelongstoapackagetransaction,thetransactionsshallbetakenasatransactionthatobtainscontrolforaccountingtreatment;Ifitdoesnotbelongtoapackagetransaction,andtheequityinvestmentsheldbeforethemergerdateisaccountedforbytheequitymethod,theinitialinvestmentcostisthesumofthebookvalueoftheequityinvestmentintheacquireeheldbeforetheacquisitiondateandtheadditionalinvestmentcostontheacquisitiondate;Othercomprehensiveincomerecognizedfromequityinvestmentsaccountedforbytheequitymethodbeforetheacquisitiondateisaccountedforonthesamebasisasthedirectdisposalofrelatedassetsorliabilitiesbytheinvestee.Iftheequityinvestmentheldbeforethemergerdateisaccountedforunderthefinancialinstrumentsrecognitionandmeasurementguidelines,theinitialinvestmentcostonthemergerdateisthesumofthefairvalueoftheequityinvestmentonthemergerdateplustheadditionalinvestmentcost.Thedifferencebetweenthefairvalueandthebookvalueofthepreviouslyheldequity,andthecumulativefairvaluechangespreviouslyrecognizedinothercomprehensiveincome,shallbealltransferredtotheinvestmentincomeofthecurrentperiodonthemergerdate.
4.Costsofbusinesscombination
Intermediaryexpensessuchasaudit,legalservices,evaluationandconsultationandotherdirectlyrelatedexpensesincurredforbusinesscombinationarerecognizedinthecurrentprofitandlossuponoccurrence.Transactioncostsforissuingequitysecuritiesduetobusinesscombinationcanbedirectlydeductedfromequity.
7.Controlcriteriaandpreparationmethodofconsolidatedfinancialstatements
1.Controlcriteria
Controlreferstothepowertheinvestorhasovertheinvestee,enjoyingvariablereturnsbyparticipatinginrelevantactivitiesoftheinvestee,andhavingtheabilitytoinfluencetheamountofreturnsbyusingitspowerovertheinvestee.
TheCompanyjudgesitscontrolovertheinvesteebasedonacomprehensiveconsiderationofallrelevantfactsandcircumstances.Shouldchangesinrelevantfactsandcircumstancesaltertheelementsinvolvedinthedefinitionofcontrol,theCompanywillmakere-assessment.Relevantfactsandcircumstancesmainlyinclude:
(1)Theestablishmentpurposeoftheinvestee.
(2)Theinvestee'srelevantactivitiesandhowdecisionsaboutthoseactivitiesaremade.
(3)Whethertherightsenjoyedbytheinvestorenableittodominatetherelatedactivitiesoftheinvesteeatpresent.
(4)Whethertheinvestorenjoysvariablereturnsbyparticipatingintherelatedactivitiesoftheinvestee.
(5)Whethertheinvestorhastheabilitytousethepowerovertheinvesteetoinfluenceitsreturnamount.
(6)Therelationshipbetweeninvestorsandotherparties.
2.Scopeofconsolidation
ThescopeoftheCompany'sconsolidatedfinancialstatementsisbasedoncontrol,andallsubsidiaries(includingindividualentitiescontrolledbytheCompany)areincludedintheconsolidatedfinancialstatements.
3.Combinationprocedures
TheCompanypreparesconsolidatedfinancialstatementsbasedonthefinancialstatementsofitselfanditssubsidiariesandotherrelevantinformation.Inpreparingconsolidatedfinancialstatements,theCompanyregardsthewholeenterprisegroupasanaccountingentity,andreflectstheoverallfinancialposition,operatingresultsandcashflowoftheenterprisegroupaccordingtotherecognition,measurementandpresentationrequirementsofrelevantaccountingstandardsforbusinessenterprisesandunifiedaccountingpolicies.
TheaccountingpoliciesandaccountingperiodsadoptedbyallsubsidiariesincludedintheconsolidationscopeofconsolidatedfinancialstatementsareconsistentwiththoseoftheCompany.IftheaccountingpoliciesandaccountingperiodsadoptedbysubsidiariesareinconsistentwiththoseoftheCompany,necessaryadjustmentsshallbemadebasedonthoseoftheCompanywhenpreparingconsolidatedfinancialstatements.
Whenpreparingconsolidatedfinancialstatements,theimpactofinternaltransactionsbetweentheCompanyanditssubsidiariesandamongthesubsidiariesthemselvesontheconsolidatedbalancesheet,consolidatedincomestatement,consolidatedstatementofcashflows,andconsolidatedstatementofchangesinshareholders'equityshallbeoffset.IftherecognitionofthesametransactionfromtheperspectiveofconsolidatedfinancialstatementsofenterprisegroupsisdifferentfromthatoftheCompanyoritssubsidiariesasaccountingentities,thetransactionshallbeadjustedfromtheperspectiveofenterprisegroups.
Theowner'sequityofsubsidiaries,thecurrentnetprofitandlossandthesharebelongingtominorityshareholdersinthecurrentcomprehensiveincomearelistedseparatelyundertheowner'sequityitemintheconsolidatedbalancesheet,thenetprofititemintheconsolidatedincomestatementandthetotalcomprehensiveincomeitem.Ifthecurrentperiodlossessharedbytheminorityshareholdersofasubsidiaryexceedtheportionofowners'equityheldbytheminorityshareholdersatthebeginningoftheperiod,theexcessisoffsetagainsttheminorityshareholders'equity.
Forsubsidiariesacquiredthroughbusinesscombinationsundercommoncontrol,theirfinancialstatementsshallbeadjustedbasedonthebookvalueofassetsandliabilities(includinggoodwillformedbytheultimatecontroller'sacquisitionofthesubsidiary)asreflectedinthefinancialstatementsoftheultimatecontroller.
Forsubsidiariesacquiredthroughbusinesscombinationsnotundercommoncontrol,theirfinancialstatementsshallbeadjustedbasedonthefairvalueofidentifiablenetassetsontheacquisitiondate.
(1)Additionofsubsidiariesorbusinesses
Duringthereportingperiod,ifsubsidiariesorbusinessesareaddedduetobusinesscombinationsundercommoncontrol,theopeningbalancesoftheconsolidatedbalancesheetshallbeadjusted.Theincomes,expenses,andprofitsfromthebeginningoftheperiodtotheendofthereportingperiodforthesubsidiariesorbusinessesmergedshallbeincludedintheconsolidatedincomestatement.Thecashflowsofsubsidiariesorbusinessesfromthebeginningofthecurrentperiodtotheendofthereportingperiodshallbeincludedintothestatementofcashflows,andtherelateditemsofthecomparativestatementsshallbeadjustedasifthereportingentityhadexistedsincethepointofcontrolbytheultimatecontroller.
Ifcontroloveraninvesteeundercommoncontrolisachievedduetoadditionalinvestments,itisassumedthatallpartiesinvolvedintheconsolidationexistedintheircurrentstatefromthetimetheultimatecontrollerbegantoexercisecontrol.Theequityinvestmentheldbeforetheacquisitionofthecontrolrightofthemergedparty,therelevantprofitandlossrecognizedfromthedatewhentheoriginalequityisacquiredorthemergepartyandthemergedpartyareundercommoncontrol(whicheverislater)tothemergerdate,othercomprehensiveincomeandotherchangesinnetassetsareusedtorespectivelyoffsettheinitialretainedincomeorcurrentprofitandlossduringthecomparativestatementperiod.
Ifasubsidiaryorbusinessisaddedthroughabusinesscombinationunderdifferentcontrolduringthereportingperiod,theopeningbalancesoftheconsolidatedstatementoffinancialpositionarenotadjusted;theincomes,expenses,andprofitsofthesubsidiaryorbusinessfromtheacquisitiondatetotheendofthereportingperiodshallbeincludedintheconsolidatedincomestatement;thecashflowsofthesubsidiaryorbusinessfromtheacquisitiondatetotheendofthereportingperiodshallbeincludedinthestatementofcashflows.
Iftheinvesteenotundercommoncontrolcanbecontrolledduetoadditionalinvestment,theCompanywillre-measuretheequityoftheinvesteeheldbeforetheacquisitiondateaccordingtothefairvalueoftheequityontheacquisitiondate,andthedifferencebetweenthefairvalueanditsbookvaluewillbeincludedinthecurrentinvestmentincome.Forequityinterestsintheacquireeheldbeforetheacquisitiondatethatinvolveothercomprehensiveincomeandchangesinotherowners'equityundertheequitymethodaccounting,excludingnetgainsorlosses,othercomprehensiveincome,andprofitdistribution,therelatedothercomprehensiveincomeandchangesinotherowners'equityarereclassifiedtoinvestmentincomeofthecurrentperiodontheacquisitiondate,exceptforothercomprehensiveincomearisingfromremeasurementofthedefinedbenefitplannetliabilityornetassetsoftheinvestee.
(2)Disposalofsubsidiariesorbusinesses
1)Generalmethods
Duringthereportingperiod,iftheCompanydisposesofasubsidiaryorbusiness,theincomes,expenses,andprofitsfromthebeginningoftheperiodtothedateofdisposalareincludedintheconsolidatedincomestatement;Thecashflowsfromthebeginningoftheperiodtothedateofdisposalofthesubsidiaryorbusinessareincludedintheconsolidatedstatementofcashflows.
Whenlosingcontroloveraninvesteeduetothedisposalofapartialequityinvestmentorotherreasons,theCompanyre-measurestheremainingequityinvestmentatitsfairvalueonthedateoflossofcontrol.Thesumoftheconsiderationobtainedfromthedisposalofthesharesandthefairvalueoftheremainingshares,minusthedifferencebetweentheshareoftheoriginalsubsidiary'snetassetsthatshallbecontinuouslycalculatedfromtheacquisitiondateorthemergerdateandthesumofgoodwill,isincludedintheinvestmentincomeinthecurrentperiodwhenthecontrolrightislost.Othercomprehensiveincomerelatedtotheequityinvestmentintheoriginalsubsidiary,orchangesinotherowners'equityexcludingnetloss,othercomprehensiveincome,andprofitdistribution,arereclassifiedascurrent
periodinvestmentincomeuponlossofcontrol,exceptforothercomprehensiveincomearisingfromtheremeasurementofthenetliabilityornetassetsofthedefinedbenefitplanoftheinvestee.
2)Step-by-stepdisposalofasubsidiaryWhendisposingofequityinvestmentsinasubsidiaryinmultipletransactionsuntilcontrolislost,theterms,conditions,andeconomiceffectsofeachtransactionindisposingoftheequityinvestmentsinthesubsidiarytypicallyindicatethatthemultipletransactionsshallbeaccountedforasapackagetransactioniftheymeetoneormoreofthefollowingsituations:
A.Thesetransactionsareconcludedatthesametimeorundertheconsiderationofmutualinfluence;B.Thesetransactionscollectivelyachieveacompletecommercialresult;C.Theoccurrenceofonetransactiondependsontheoccurrenceofatleastoneothertransaction;D.Atransactionisuneconomicalonitsown,buteconomicalwhenconsideredtogetherwithothertransactions.Whentransactionrelatedtothedisposalofequityinvestmentsinsubsidiariesuntilcontrolislostbelongstoapackagetransaction,theCompanyaccountsforthetransactionsasadisposalofasubsidiaryandlossofcontrol;However,beforethelossofcontrol,thedifferencebetweeneachdisposalconsiderationandthecorrespondingshareofthesubsidiary'snetassetsisrecognizedasothercomprehensiveincomeintheconsolidatedfinancialstatements,andisreclassifiedtoprofitorlossoftheperiodwhenthecontrolislost.
Ifthetransactionrelatedtothedisposalofequityinvestmentsinsubsidiariesuntilcontrolislostdoesnotbelongtoapackagetransaction,theyareaccountedforaccordingtothepolicyforpartialdisposalsofequityinvestmentsinsubsidiarieswithoutlosingcontrol;Atthetimeoflossofcontrol,theaccountingtreatmentisperformedinthesamewayasageneraldisposalofasubsidiary.
(3)Acquisitionofminorityinterestsinsubsidiaries
TheCompanyshalladjustthestockpremiuminthecapitalreserveintheconsolidatedbalancesheetforthedifferencebetweenthenewlyacquiredlong-termequityinvestmentduetotheacquisitionofminoritysharesandtheshareofnetassetsthatshallbecontinuouslycalculatedbythesubsidiariesfromtheacquisitiondate(ormergerdate)accordingtothenewshareholdingratio.Ifthestockpremiuminthecapitalreserveisinsufficient,theretainedearningsshallbeadjusted.
(4)Partialdisposalofequityinvestmentsinsubsidiarieswithoutlosingcontrol
Incasesofpartialdisposaloflong-termequityinvestmentsinsubsidiarieswithoutlosingcontrol,thedifferencebetweenthedisposalconsiderationandthecorrespondingshareofthesubsidiary'snetassetscontinuouslycalculatedfromtheacquisitiondateorthemergerdateisadjustedinthestockpremiumwithinthecapitalreserveintheconsolidatedbalancesheet.Ifthesharepremiuminthecapitalreserveisinsufficient,retainedearningsshallbeadjusted.
8.Classificationofjointventurearrangementsandaccountingtreatmentofjointoperations
1.Classificationofjointventurearrangements
Accordingtothestructure,legalform,termsagreedinthejointventurearrangementandotherrelevantfactsandcircumstances,theCompanydividesthejointventurearrangementintojointoperationandjointventure.
Jointventurearrangementsnotreachedthroughaseparateentityshallbeclassifiedasjointoperation;Jointventurearrangementsreachedthroughaseparateentityareusuallydividedintojointventures;However,ifthereisstrongevidencethatanyofthefollowingconditionsismetandthejointventurearrangementcomplieswiththerelevantlawsandregulations,itshallbeclassifiedasajointoperation:
Thelegalformofthejointventurearrangementindicatesthatthejointventureshallrespectivelyenjoytherightsandassumetheobligationsfortherelevantassetsandliabilitiesinthearrangement.
Thecontractualtermsofthejointventurearrangementstipulatethatthejointventureshallrespectivelyenjoytherightsandassumetheobligationsfortherelevantassetsandliabilitiesinthearrangement.Otherrelevantfactsandcircumstancesindicatethatthejointventurehasrightstotheassetsandobligationsfortheliabilitiesrelatedtothearrangement,suchaswhenthejointventureenjoysalmostalloftheoutputrelatedtothejointarrangementandthesettlementofliabilitiesdependscontinuouslyonthesupportofthejointventure.
2.Accountingtreatmentforjointoperation
TheCompanyrecognizesthefollowingitemsrelatedtotheCompanyintheshareofinterestsinjointoperation,andcarriesoutaccountingtreatmentinaccordancewiththerelevantaccountingstandardsforbusinessenterprises:
Recognizetheassetsheldindividually,andtheassetsheldjointlybasedontheirshares;
Recognizetheliabilitiesassumedindividually,andtheliabilitiesundertakenjointlybasedontheirshares;
Recognizetheincomegeneratedfromthesaleofitsshareofjointoperationoutput;
Recognizetheincomegeneratedfromthesaleofoutputinthejointoperationbasedontheirshares;
Recognizetheexpensesincurredindividuallyandtheexpensesincurredinjointoperationbasedontheirshares.
TheCompanyrecognizesonlytheportionofgainsandlossesattributabletootherparticipantsinthejointoperationwhencontributingorsellingassets(exceptforthoseconstitutingabusiness)tothejointoperation,untilsuchassetsaresoldtoathirdparty.Ifanimpairmentlossoccursonassetsinvestedorsoldthatmeetstheprovisionsof"AccountingStandardforBusinessEnterprisesNo.8–AssetImpairment,"thecompanywillfullyrecognizetheloss.
TheCompanyrecognizesonlytheportionofgainsandlossesattributabletootherparticipantsinthejointoperationwhenacquiringassets(exceptforthoseconstitutingabusiness)fromthejointoperation,untilsuchassetsaresoldtoathirdparty.Ifanimpairmentlossoccursonassetspurchasedthatmeetstheprovisionsof"AccountingStandardforBusinessEnterprisesNo.8–AssetImpairment,"thecompanywillfullyrecognizetheloss.
IftheCompanydoesnothavejointcontroloverthejointoperationbutenjoystherelevantassetsandbearstherelevantliabilitiesofthejointoperation,accountingshouldstillbeconductedaccordingtotheaboveprinciples.Otherwise,accountingshouldbeconductedinaccordancewiththerelevantenterpriseaccountingstandards.
9.Recognitioncriteriaforcashandcashequivalents
Inpreparingthecashflowstatement,theCompanyrecognizesitscashonhandandthedepositsthatcanbeusedforpaymentatanytime.Investmentsthatmeetthefourconditionsofshort-termmaturity(generallywithinthreemonthsfromtheacquisitiondate),highliquidity,easyconversionintoaknownamountofcash,andminimalriskofchangeinvalue,ascashequivalents.
10.Foreigncurrencytransactionsandconversionofforeigncurrencyfinancialstatements
1.Foreigncurrencytransactions
Foreigncurrencytransactionsareinitiallyrecordedatthespotexchangerateofthetransactiondatewheninitiallyrecognized.
Onthebalancesheetdate,foreigncurrencymonetaryitemsareconvertedatthespotexchangerateofthebalancesheetdate.Theresultingexchangedifferences,exceptforthosearisingfromforeigncurrencyborrowingsrelatedtotheacquisitionorconstructionofassetsmeetingthecapitalizationcriteria,whicharetreatedinaccordancewiththeprincipleofborrowingcostcapitalization,areallrecognizedinthecurrentprofitorloss.Foreigncurrencynon-monetaryitemsmeasuredathistoricalcostarestillconvertedatthespotexchangerateofthetransactiondate,withoutchangingtheirrecordedamountinthefunctionalcurrency.
Foreigncurrencynon-monetaryitemsmeasuredatfairvalueareconvertedatthespotexchangerateofthefairvaluedeterminationdate.Thedifferencebetweentheconvertedamountinthefunctionalcurrencyandtheoriginal
recordedamountinthefunctionalcurrencyistreatedasafairvaluechange(includingchangesofexchangerate),andisrecognizedinthecurrentprofitorlossorasothercomprehensiveincome.
2.ForeigncurrencyfinancialstatementsAssetsandliabilitiesinthebalancesheetareconvertedatthespotexchangerateofthebalancesheetdate;Equityitems,exceptforthe"undistributedprofits"item,areconvertedatthespotexchangerateatthetimeofoccurrence.Theincomeandexpenseitemsintheincomestatementareconvertedatthecurrentaverageexchangerateofthetransactiondate.Theexchangedifferencesarisingfromtheconversionofforeigncurrencyfinancialstatementsasdescribedabovearerecognizedinothercomprehensiveincome.Whendisposingofaforeignoperation,theexchangedifferencesrelatedtothatforeignoperationandpresentedinothercomprehensiveincomeitemsinthebalancesheetaretransferredfromothercomprehensiveincomeitemstothecurrentprofitorloss;Inthecaseofdisposingofapartofanequityinvestmentorforotherreasonsthatleadtoareductionintheownershipinterestinaforeignoperationwithoutlosingcontroloverit,theexchangedifferencesrelatedtothepartialdisposaloftheforeignoperationareattributedtominorityinterestsandarenottransferredtothecurrentprofitorloss.Whendisposingofaportionofequityinoverseasoperationsthatarejointventuresorassociates,theforeigncurrencytranslationdifferencesrelatedtotheoverseasoperationsaretransferredtothedisposalperiod'sprofitorlossinproportiontothedisposalscale.
11.Financialinstruments
TheCompanyrecognizesfinancialassetsorfinancialliabilitieswhenitbecomesapartytothefinancialinstrumentcontract.Theeffectiveinterestmethodisthecalculationoftheamortizedcostoffinancialassetsorfinancialliabilitiesandtheallocationofinterestincomeorinterestexpenseovertheaccountingperiods.Theeffectiveinterestrateistherateusedtodiscounttheestimatedfuturecashflowsoffinancialassetsorfinancialliabilitiesovertheexpectedlifetothebookvalueofthefinancialassetortheamortizedcostofthefinancialliability.Indeterminingtheeffectiveinterestrate,theexpectedcashflowsareestimatedbasedonallcontractualtermsofthefinancialassetorfinancialliability(suchasprepayment,extension,calloptions,orothersimilaroptions),withoutconsideringexpectedcreditlosses.
Theamortizedcostoffinancialassetsorfinancialliabilitiesistheinitialrecognitionamountminusprincipalrepayments,plusorminusthecumulativeamortizationofthedifferencebetweentheinitialrecognitionamountandthematurityamountusingtheeffectiveinterestmethod,lessanycumulativeimpairmentlossprovision(applicableonlytofinancialassets).
1.Classification,recognition,andmeasurementoffinancialassets
TheCompanyclassifiesfinancialassetsintothefollowingthreecategoriesbasedonthebusinessmodelformanagingthefinancialassetsandthecontractualcashflowcharacteristicsofthefinancialassets:
A.Financialassetsmeasuredatamortizedcost.
B.Financialassetsmeasuredatfairvaluewithchangesrecognizedinothercomprehensiveincome.
C.Financialassetsmeasuredatfairvaluewithchangesrecognizedinprofitorloss.
Financialassetsareinitiallymeasuredatfairvalue.However,receivablesfromthesaleofgoodsorprovisionofservicesthatdonotincludeasignificantfinancingcomponentorconsiderfinancingcomponentsofnotmorethanoneyearareinitiallymeasuredatthetransactionprice.
Forfinancialassetsmeasuredatfairvaluewithchangesrecognizedinprofitorloss,relatedtransactioncostsaredirectlyrecognizedinprofitorloss.Forothercategoriesoffinancialassets,relatedtransactioncostsareincludedintheirinitialrecognitionamount.
Subsequentmeasurementoffinancialassetsdependsontheirclassification.ReclassificationofallaffectedfinancialassetsoccursonlywhentheCompanychangesitsbusinessmodelformanagingfinancialassets.
1)Financialassetsmeasuredatamortizedcost
Financialassetswhosecontractualtermsgeneratecashflowsonspecifieddatesthataresolelypaymentsofprincipalandinterestontheoutstandingprincipalamount,andaremanagedwiththeobjectiveofcollectingcontractualcashflows,areclassifiedbytheCompanyasfinancialassetsmeasuredatamortizedcost.TheCompany'sfinancialassetsclassifiedatamortizedcostincludecash,notesreceivable,accountsreceivable,andotherreceivables.
TheCompanyrecognizesinterestincomeonsuchfinancialassetsusingtheeffectiveinterestmethod,measuresthemsubsequentlyatamortizedcost,andincludesanyimpairmentlossesorgainsorlossesonde-recognitionormodificationinprofitorloss.Exceptinthefollowingsituations,theCompanycalculatesinterestincomebasedontheactualinterestratemultipliedbythefinancialasset'sbookvalue:
A.Forfinancialassetsthathaveincurredcreditimpairmentuponacquisitionororigination,theCompanycalculatesinterestincomefromtheinitialrecognitionbasedontheamortizedcostofthefinancialassetandtheeffectiveinterestrateadjustedforcredit.
B.Forfinancialassetsthathavenotincurredcreditimpairmentuponacquisitionororiginationbutsubsequentlybecomecredit-impaired,theCompanycalculatesinterestincomeinsubsequentperiodsbasedontheamortizedcostandtheeffectiveinterestrateofthefinancialasset.Ifthefinancialinstrumentisnolongercredit-impairedinsubsequentperiodsduetoanimprovementincreditrisk,theCompanycalculatesinterestincomebymultiplyingtheeffectiveinterestratebythebookvalueofthefinancialasset.
2)Financialassetsmeasuredatfairvaluewithchangesrecognizedinothercomprehensiveincome
Ifthecontractualtermsoffinancialassetsrequirecashflowsonaspecifieddatethataresolelypaymentsofprincipalandinterestontheprincipalamountoutstanding,andthebusinessmodelformanagingthefinancialassetisbothtocollectcontractualcashflowsandtosellthefinancialasset,thentheCompanyclassifiesthefinancialassetasmeasuredatfairvaluewithchangesrecognizedinothercomprehensiveincome.
TheCompanyrecognizesinterestincomeonsuchfinancialassetsusingtheeffectiveinterestmethod.Apartfrominterestincome,impairmentlosses,andforeignexchangegainsorlossesrecognizedinprofitorloss,otherfairvaluechangesarerecognizedinothercomprehensiveincome.Whenthefinancialassetisde-recognized,thecumulativegainsorlossespreviouslyrecognizedinothercomprehensiveincomearereclassifiedfromothercomprehensiveincometoprofitorloss.
Financialassetsmeasuredatfairvaluewithchangesrecognizedinothercomprehensiveincome,suchastradereceivablesandaccountsreceivable,arereportedasreceivablesfinancing,andothersuchfinancialassetsarereportedasotherdebtinvestments.Amongthem,otherdebtinvestmentsmaturingwithinoneyearfromthebalancesheetdatearereportedasnon-currentassetsduewithinoneyear,andotherdebtinvestmentswithoriginalmaturitieswithinoneyeararereportedasothercurrentassets.
3)Financialassetsdesignatedatfairvaluewithchangesrecognizedinothercomprehensiveincome
Atinitialrecognition,theCompanymayirrevocablydesignatenon-tradingequityinstrumentinvestmentsbasedonasinglefinancialassetasmeasuredatfairvaluethroughothercomprehensiveincome.
Thefairvaluechangesofsuchfinancialassetsarerecognizedinothercomprehensiveincome,withouttheneedforimpairmentprovisions.Whenthefinancialassetisde-recognized,theaccumulatedgainsorlossespreviouslyrecognizedinothercomprehensiveincomearereclassifiedtoretainedearnings.DuringtheperiodtheCompanyholdstheequityinstrumentinvestment,dividendincomeisrecognizedandincludedinthecurrentprofitorlosswhentheCompany'srighttoreceivedividendsisestablished,theeconomicbenefitsrelatedtothedividendsarelikelytoflowintotheCompany,andtheamountofdividendscanbereliablymeasured.TheCompanyreportssuchfinancialassetsunderotherequityinstrumentinvestments.
Anequityinstrumentinvestmentthatmeetsoneofthefollowingconditionsisclassifiedasfinancialassetsmeasuredatfairvaluethroughprofitorloss:Theprimarypurposeofacquiringthefinancialassetisforsaleinthenearterm;Atinitialrecognition,itispartofanidentifiablefinancialassetgroupundercentralizedmanagement,andthereisobjectiveevidenceindicatingtheexistenceofashort-termprofitpatternrecently;Itisaderivativeinstrument(excludingthosemeetingthedefinitionofafinancialguaranteecontractandthosedesignatedaseffectivehedginginstruments).
4)Classifiedasfinancialassetsmeasuredatfairvaluethroughprofitorloss
Financialassetsthatdonotmeettheconditionsformeasurementatamortizedcostoratfairvaluethroughothercomprehensiveincome,andarenotdesignatedasmeasuredatfairvaluethroughothercomprehensiveincome,areclassifiedasmeasuredatfairvaluethroughprofitorloss.
Suchfinancialassetsaresubsequentlymeasuredatfairvalue.Gainsorlossesfromchangesinfairvalueaswellasdividendsandinterestincomerelatedtosuchfinancialassetsareincludedinthecurrentprofitandloss.
TheCompanyshallpresentsuchfinancialassetsintheitemsoftransactionalfinancialassetsandothernon-currentfinancialassetsaccordingtotheirliquidity.
5)Financialassetsdesignatedtobemeasuredbyfairvaluethroughcurrentprofitandloss
Atinitialrecognition,inordertoeliminateorsignificantlyreduceaccountingmismatches,theCompanymayirrevocablydesignatefinancialassetsasfinancialassetsmeasuredatfairvaluethroughcurrentprofitorlossonthebasisofindividualfinancialasset.
Ifahybridcontractcontainsoneormoreembeddedderivativeinstruments,anditsmastercontractdoesnotbelongtotheabovefinancialassets,theCompanycandesignateitasawholeasafinancialinstrumentmeasuredatfairvaluethroughcurrentprofitandloss.Exceptforthefollowingcircumstances:
A.Theembeddedderivativeinstrumentswillnothaveasignificantchangeinthecashflowsofthehybridcontract.
B.Whendeterminingwhetherasimilarhybridcontractneedstobesplitforthefirsttime,itcanbemadeclearthattheembeddedderivativescontainedthereinshouldnotbesplitwithlittleanalysis.Forexample,theprepaymentrightembeddedintheloanallowstheholdertoprepaytheloanatanamountclosetotheamortizedcost,andtheprepaymentrightdoesnotneedtobesplit.
Suchfinancialassetsaresubsequentlymeasuredatfairvalue.Gainsorlossesfromchangesinfairvalueaswellasdividendsandinterestincomerelatedtosuchfinancialassetsareincludedinthecurrentprofitandloss.
TheCompanyshallpresentsuchfinancialassetsintheitemsoftransactionalfinancialassetsandothernon-currentfinancialassetsaccordingtotheirliquidity.
2.Classification,recognitionandmeasurementoffinancialliabilities
TheCompanyclassifiesthefinancialinstrumentoritscomponentsasfinancialliabilitiesorequityinstrumentsatinitialrecognitionbasedonthecontractualtermsoftheissuedfinancialinstrumentsandtheireconomicsubstanceratherthanmerelylegalform,inconjunctionwiththedefinitionsoffinancialliabilitiesandequityinstruments.Financialliabilitiesareclassifiedatinitialrecognitionas:financialliabilitiesmeasuredatfairvaluethroughprofitorloss,otherfinancialliabilities,andderivativesdesignatedaseffectivehedginginstruments.
Financialliabilitiesaremeasuredatfairvalueatinitialrecognition.Forfinancialliabilitiesmeasuredatfairvaluethroughprofitorloss,therelevanttransactioncostsaredirectlyincludedinthecurrentprofitorloss;Forothercategoriesoffinancialliabilities,relatedtransactioncostsareincludedintheinitiallyrecognizedamount.
Subsequentmeasurementoffinancialliabilitiesdependsontheirclassification:
1)Financialliabilitiesmeasuredatfairvaluethroughprofitorloss.
Thiscategoryincludestradingfinancialliabilities(includingderivativesthatarefinancialliabilities)andthosedesignatedatinitialrecognitionasmeasuredatfairvaluethroughprofitorloss.
Financialliabilitiesisconsideredtradingifitisincurredprimarilyforthepurposeofsellingorre-acquiringinthenearterm;Orifitispartofanidentifiableportfoliooffinancialinstrumentsthattheenterprisemanagestogetherandthereisevidenceofarecentactualpatternofshort-termprofit-taking.Belongstoderivativeinstruments,exceptforthosedesignatedandeffectiveashedginginstrumentsandderivativesthatmeetthecriteriaoffinancialguaranteecontracts.Tradingfinancialliabilities(includingderivativesthatarefinancialliabilities)aremeasuredatfairvaluesubsequently,withallfairvaluechangesrecognizedinthecurrentprofitorloss,exceptforthoserelatedtohedgeaccounting.Atinitialrecognition,toprovidemorerelevantaccountinginformation,theCompanydesignatesfinancialliabilitiesthatmeetoneofthefollowingconditionsasfinancialliabilitiesmeasuredatfairvaluethroughprofitorloss,whichcannotberevoked:
A.Capableofeliminatingorsignificantlyreducingaccountingmismatches.
B.Managedandperformanceevaluatedonafairvaluebasisforaportfoliooffinancialliabilitiesoracombinationoffinancialassetsandfinancialliabilities,asdocumentedinformalwrittendocumentsreflectingtheCompany'sriskmanagementorinvestmentstrategy,andreportedinternallytokeymanagementpersonnelonthisbasis.
TheCompanysubsequentlymeasuressuchfinancialliabilitiesatfairvalue,withchangesinfairvalueduetotheCompany'sowncreditriskrecognizedinothercomprehensiveincome,andallotherfairvaluechangesrecognizedinthecurrentprofitorloss.UnlessrecognizingchangesinfairvalueduetotheCompany'sowncreditriskinothercomprehensiveincomewouldcreateorenlargeanaccountingmismatchinprofitorloss,theCompanyrecognizesallfairvaluechanges(includingtheeffectofchangesinitsowncreditrisk)inthecurrentprofitorloss.
2)Otherfinancialliabilities
Exceptforthefollowingitems,theCompanyclassifiesfinancialliabilitiesasthosemeasuredatamortizedcost,usingtheeffectiveinterestmethodforsubsequentmeasurementatamortizedcost,withgainsorlossesarisingfromde-recognitionoramortizationrecognizedinthecurrentprofitorloss:
A.Financialliabilitiesmeasuredatfairvaluethroughprofitorloss.
B.Financialliabilitiescausedbythetransferoffinancialassetsthatdonotmeettheconditionsforde-recognitionorcontinuetobeinvolvedinthetransferredfinancialassets.
C.Financialguaranteecontractsthatdonotfallunderthefirsttwocategoriesmentionedabove,andloancommitmentsthatarenotundertheCategory1)andareprovidedataninterestratelowerthanthemarketrate.
Afinancialguaranteecontractreferstoanagreementthatrequirestheissuertocompensatethecontractholderforaspecificamountifaparticulardebtorfailstorepaythedebtontheduedateaccordingtotheoriginalormodifiedtermsofthedebtinstrument.Financialguaranteecontractsthatarenotdesignatedasfinancialliabilitiesmeasuredatfairvaluewithchangesrecognizedinprofitorlossaremeasuredafterinitialrecognitionatthehigheroftheamountofthelossallowanceandthebalanceoftheinitialrecognitionamountlessthecumulativeamortizationduringtheguaranteeperiod.
3.De-recognitionoffinancialassetsandfinancialliabilities
1)Financialassetsarede-recognizedwhenitmeetsoneofthefollowingconditions,i.e.,itisremovedfromtheaccountsandthebalancesheet:
A.Thecontractualrighttoreceivecashflowsfromthefinancialassethasexpired.
B.Thefinancialassethasbeentransferred,andthetransfercomplieswiththeprovisionsforthede-recognitionoffinancialassets.
2)Conditionsforderecognitionoffinancialliabilities
Financialliabilities(orpartofit)isde-recognizedwhenthepresentobligationisterminated.
AnagreementissignedbetweentheCompanyandthelendertoreplacetheoriginalfinancialliabilitywithanewfinancialliability,andifthetermsofthenewfinancialliabilityaresubstantiallydifferentfromtheoriginalfinancial
liability,oriftherearesubstantialmodificationstothetermsoftheoriginalfinancialliability(orapartofit),thentheoriginalfinancialliabilityisde-recognizedandanewfinancialliabilityisrecognized.Thedifferencebetweenthebookvalueandtheconsiderationpaid(includingnon-cashassetstransferredorliabilitiesassumed)isrecognizedinthecurrentprofitorloss.
WhentheCompanyre-acquirespartoffinancialliabilities,thebookvalueoftheentirefinancialliabilitiesisallocatedbasedontheproportionofthefairvalueofthepartthatcontinuestoberecognizedandthepartthatisde-recognizedonthere-acquisitiondate.Thedifferencebetweenthebookvalueallocatedtothede-recognizedpartandtheconsiderationpaid(includingnon-cashassetstransferredorliabilitiesassumed)shouldberecognizedinthecurrentprofitorloss.
4.Recognitionbasisandmeasurementmethodforthetransferoffinancialassets
Whentransferringfinancialassets,theCompanyassessestheextenttowhichitretainstherisksandrewardsofownershipofthefinancialassetsanddealswiththefollowingsituationsaccordingly:
(1)Ifalmostalltherisksandrewardsofownershipofthefinancialassetaretransferred,thenthefinancialassetisde-recognized,andtherightsandobligationsarisingfromthetransferorretainedareseparatelyrecognizedasassetsorliabilities.
(2)Ifsubstantiallyalltherisksandrewardsassociatedwiththeownershipoffinancialassetsareretained,thefinancialassetcontinuestoberecognized.
(3)Ifalmostallrisksandrewardsintheownershipoffinancialassetsareneithertransferrednorretained(thatis,othercircumstancesexcept(1)and(2)ofthisArticle),thefollowingcircumstancesshallbehandledaccordingtowhetherthecontroloverthefinancialassetsisretained:
A.Ifnocontroloverthefinancialassetsisretained,thefinancialassetsshallbede-recognized,andtherightsandobligationsarisingfromorretainedinthetransfershallbeseparatelyrecognizedasassetsorliabilities.
B.Ifthecontroloverthefinancialassetsisretained,therelevantfinancialassetsshallcontinuetoberecognizedaccordingtothedegreeofitscontinuousinvolvementinthetransferredfinancialassets,andtherelevantliabilitiesshallberecognizedaccordingly.Theterm"continuousinvolvementinthetransferredfinancialasset"referstotheextenttowhichtheCompanybearstherisksorrewardsofchangesinthevalueofthetransferredfinancialasset.Theprincipleofsubstanceoverformisadoptedtodeterminewhetherthetransferoffinancialassetsmeetstheabovede-recognitionconditionsforfinancialassets.TheCompanydividesthetransferoffinancialassetsintooveralltransferandpartialtransferoffinancialassets.
Iftheentiretransferoffinancialassetsmeetsthede-recognitionconditions,thedifferencebetweentheamountsofthefollowingtwoitemsshallbeincludedinthecurrentprofitandloss:
A.Thebookvalueofthetransferredfinancialassetonthede-recognitiondate.
B.Theconsiderationreceivedfortransferringfinancialassets,whichisthesumoftheamountcorrespondingtothepartofthecumulativefairvaluechangesoriginallyrecognizedinothercomprehensiveincomethatisde-recognized(involvingtransferredfinancialassetsmeasuredatfairvaluewithchangesrecognizedinothercomprehensiveincome).
Iffinancialassetsarepartiallytransferredandthetransferredpartfullymeetsthede-recognitioncondition,thebookvalueoftheentirefinancialassetbeforethetransferisallocatedbetweenthede-recognizedpartandthecontinuingrecognizedpart(inthiscase,theretainedservicingassetisconsideredpartofthecontinuingrecognizedfinancialasset)basedontheirrelativefairvaluesonthetransferdate.Thedifferencebetweenthefollowingtwoamountsisrecognizedinthecurrentprofitorloss:
A.Thebookvalueofthede-recognizedpartonthede-recognitiondate.
B.Thesumoftheconsiderationreceivedforthede-recognizedpartandtheamountcorrespondingtothepartofthecumulativefairvaluechangesoriginallyrecognizedinothercomprehensiveincome(involvingtransferredfinancialassetsmeasuredatfairvaluewithchangesrecognizedinothercomprehensiveincome).Ifthetransferoffinancialassetsdoesnotmeetthede-recognitioncondition,thefinancialassetcontinuestoberecognized,andtheconsiderationreceivedisrecognizedasfinancialliabilities.
5.Determinationmethodforthefairvalueoffinancialassetsandfinancialliabilities
Forfinancialassetsorliabilitieswithanactivemarket,itsfairvalueisdeterminedbythequotedpriceintheactivemarket,unlessthereisarestrictiononthesaleofthefinancialassetsitself.Forfinancialassetswithrestrictionsonthesaleoftheassetsitself,itsfairvalueisdeterminedbydeductingthecompensationamountrequiredbymarketparticipantsforbearingtheriskofnotbeingabletosellthefinancialassetintheopenmarketduringthespecifiedperiodfromthequotedpriceintheactivemarket.Quotedpricesinanactivemarketincludethosethatarereadilyandregularlyobtainablefromexchanges,dealers,brokers,industrygroups,pricingservices,orregulatoryauthorities,andcanrepresenttheactualandfrequentmarkettransactionsonthebasisoffairtrade.
Thefairvalueofinitiallyacquiredorderivedfinancialassetsorincurredfinancialliabilitiesisbasedonthetransactionpriceinthemarket.
Financialassetsorliabilitieswithoutanactivemarketarevaluedusingvaluationtechniquestodeterminetheirfairvalue.Invaluation,theCompanyusesvaluationtechniquesthatareapplicableundercurrentcircumstancesandsupportedbysufficientavailabledataandotherinformation,selectinginputvaluesconsistentwiththecharacteristicsoftheassetsorliabilitiesconsideredbymarketparticipantsintransactions,andprioritizestheuseofrelevantobservableinputvalueswhereverpossible.Incaseswhererelevantobservableinputvaluesarenotavailableornotfeasibletoobtain,unobservableinputvaluesareused.
6.Impairmentoffinancialinstruments
TheCompanymeasuresimpairmentandrecognizeslossallowancesforfinancialassetsmeasuredatamortizedcost,financialassetsclassifiedasmeasuredatfairvaluethroughothercomprehensiveincome,leasereceivables,contractassets,loancommitmentsthatarenotmeasuredatfairvaluethroughprofitorloss,financialliabilitiesthatarenotmeasuredatfairvaluethroughprofitorloss,andfinancialguaranteecontractsformedbythetransferoffinancialassetsthatdonotmeetthederecognitioncriteriaorcontinuetobeinvolvedinthetransferredfinancialassets,basedonexpectedcreditlosses.
Expectedcreditlossesrefertotheweightedaveragevalueofcreditlossesoffinancialinstrumentsweightedbytheriskofdefault.CreditlossreferstothedifferencebetweenallcontractualcashflowsreceivablefromthecontractandallcashflowsexpectedtobereceivedbytheCompanyattheoriginaleffectiveinterestrate,thatis,thepresentvalueofallcashshortages.Forfinancialassetsacquiredororiginatedthathaveexperiencedcreditimpairment,theyshallbediscountedusingtheeffectiveinterestrateadjustedforcredit.
Forreceivables,contractassets,andleasereceivablesarisingfromtransactionsregulatedbytherevenuestandards,thecompanyappliesasimplifiedmeasurementapproach,measuringlossallowancesatanamountequaltotheexpectedcreditlossesovertheentirelifetimeoftheassets.
Foracquiredororiginatedfinancialassetsthathaveexperiencedcreditimpairment,onlythecumulativechangeinexpectedcreditlossesovertheentirelifefrominitialrecognitionisrecognizedasaprovisionforlossesateachbalancesheetdate.Ateachbalancesheetdate,thechangeinexpectedcreditlossesovertheentirelifeisrecognizedasanimpairmentlossorgaininthecurrentprofitorloss.Eveniftheexpectedcreditlossesdeterminedatthebalancesheetdatefortheentirelifearelessthantheamountofexpectedcreditlossesreflectedbytheestimatedcashflowsatinitialrecognition,thefavorablechangeinexpectedcreditlossesisrecognizedasanimpairmentgain.
Apartfromtheaforementionedsimplifiedmeasurementmethodandacquiredororiginatedfinancialassetsthathaveexperiencedcreditimpairment,theCompanyassesseswhetherthecreditriskoftherelevantfinancial
instrumentshassignificantlyincreasedsinceinitialrecognitionateachbalancesheetdate,measuresitslossprovision,andrecognizesexpectedcreditlossesandtheirchangesaccordingtothefollowingsituations:
A.IfthecreditriskofthefinancialinstrumenthasnotincreasedsignificantlysinceinitialrecognitionandisinphaseI,lossallowanceismeasuredintheamountequaltotheexpectedcreditlossesoverthenext12months,andinterestincomeiscalculatedbasedonthebookvalueandtheeffectiveinterestrate.B.Ifthecreditriskofthefinancialinstrumenthasincreasedsignificantlysinceinitialrecognitionbutnocreditimpairmenthasoccurred,andisinphaseII,lossallowanceismeasuredintheamountequaltotheexpectedcreditlossesovertheentirelifetimeofthefinancialinstrument,andinterestincomeiscalculatedbasedonthebookvalueandtheeffectiveinterestrate.C.IfthefinancialinstrumenthasexperiencedcreditimpairmentsinceinitialrecognitionandisinphaseIII,theCompanymeasureslossallowanceintheamountequaltotheexpectedcreditlossesovertheentirelifetimeofthefinancialinstrument,andinterestincomeiscalculatedbasedontheamortizedcostandtheeffectiveinterestrate.Increasesorreversalsofcreditlossallowanceforfinancialinstrumentsarerecognizedasimpairmentlossesorgainsinthecurrentprofitorloss.Exceptforfinancialassetsclassifiedatfairvaluethroughothercomprehensiveincome,creditlossallowancereducesthebookvalueoffinancialassets.Forfinancialassetsclassifiedatfairvaluethroughothercomprehensiveincome,theCompanyrecognizescreditlossallowanceinothercomprehensiveincome,withoutreducingthebookvalueofthefinancialassetpresentedinthebalancesheet.
IftheCompanyhadpreviouslymeasuredlossallowanceforafinancialinstrumentintheamountequaltotheexpectedcreditlossesovertheentirelifetimeofthefinancialinstrument,butasofthecurrentbalancesheetdate,thefinancialinstrumentnolongerexhibitsasignificantincreaseincreditrisksinceinitialrecognition,theCompanymeasureslossallowanceatthecurrentbalancesheetdateintheamountequaltotheexpectedcreditlossesoverthenext12months.Theresultingreversaloflossallowanceisrecognizedasanimpairmentgaininthecurrentprofitorloss.
1)Significantincreaseincreditrisk
TheCompanyusesreasonableandsupportableforward-lookinginformationavailabletodeterminewhetherthecreditriskofafinancialinstrumenthasincreasedsignificantlysinceinitialrecognitionbycomparingtheriskofdefaultatthebalancesheetdatewiththeriskofdefaultattheinitialrecognitiondate.Forfinancialguaranteecontracts,whenapplyingtheimpairmentrequirementsforfinancialinstruments,theCompanyconsidersthedateonwhichtheCompanybecomesthepartytotheirrevocablecommitmentastheinitialrecognitiondate.
TheCompanyconsidersthefollowingfactorswhenassessingwhethertherehasbeenasignificantincreaseincreditrisk:
A.Whethertherehasbeenasignificantchangeinthedebtor'soperationalresults,actualorexpected;
B.Whethertherehasbeenasignificantadversechangeintheregulatory,economic,ortechnologicalenvironmentinwhichthedebtoroperates;
C.Whethertherehasbeenasignificantchangeinthevalueofcollateralsecuringthedebtorinthequalityofguaranteesorcreditenhancementsprovidedbythirdparties,whichareexpectedtoreducethedebtor'seconomicincentivetorepayontimeasperthecontract,oraffecttheprobabilityofdefault;
D.Whethertherehasbeenasignificantchangeinthedebtor'sexpectedperformanceandrepaymentbehavior;
E.WhethertherehasbeenachangeintheCompany'screditmanagementmethodsforfinancialinstruments,etc.
Asofthebalancesheetdate,iftheCompanydeterminesthatafinancialinstrumenthaslowcreditrisk,itisassumedthatthecreditriskofthefinancialinstrumenthasnotincreasedsignificantlysinceinitialrecognition.Ifafinancialinstrumenthaslowdefaultrisk,theborrowerhasastrongabilitytofulfillitscontractualcashflowobligationsintheshortterm,andevenifthereareadversechangesintheeconomicsituationandoperatingenvironmentovera
longerperiod,itdoesnotnecessarilyreducetheborrower'sabilitytofulfillitscontractualcashflowobligations,thenthefinancialinstrumentisconsideredtohavelowcreditrisk.
2)FinancialassetswithcreditimpairmentWhenoneormoreeventsoccurthatareexpectedtohaveanadverseeffectonthefuturecashflowsoffinancialassets,thefinancialassetbecomesonethathasexperiencedcreditimpairment.Evidenceofcreditimpairmentforfinancialassetsincludesthefollowingobservableinformation:
A.Theissuerorthedebtorisexperiencingsignificantfinancialdifficulties;B.Thedebtorhasbreachedthecontract,suchasdefaultingoninterestorprincipalpaymentsorbeingoverdue;C.Thecreditor,foreconomicorcontractualconsiderationsrelatedtothedebtor'sfinancialdifficulties,grantsconcessionstothedebtorthatwouldnotbemadeunderanyothercircumstances;D.Itislikelythatthedebtorwillgobankruptorundergootherfinancialrestructuring;E.Thedisappearanceofanactivemarketforthefinancialassetsduetotheissuer'sorthedebtor'sfinancialdifficulties;F.Acquiringororiginatingfinancialassetsatasignificantdiscount,whichreflectstheoccurrenceofcreditlosses.Creditimpairmentoffinancialassetsmayresultfromthecombinedeffectofmultipleeventsandmaynotnecessarilybecausedbyindividuallyidentifiableevents.
3)DeterminationofexpectedcreditlossesTheCompanyassessestheexpectedcreditlossesoffinancialinstrumentsbasedonindividualandCombinationevaluations,takingintoaccountreasonableandsubstantiatedinformationregardingpastevents,currentconditions,andforecastsoffutureeconomicconditions.
TheCompanyclassifiesfinancialinstrumentsintodifferentcombinationsbasedoncommoncreditriskcharacteristics.ThecommoncreditriskcharacteristicsadoptedbytheCompanyinclude:typeoffinancialinstruments,agingcombination,contractsettlementcycle,industryofdebtors,etc.Fordetailsontheindividualassessmentcriteriaandcombinationcreditriskcharacteristicsoftherelevantfinancialinstruments,refertotheaccountingpoliciesofthefinancialinstruments.TheCompanydeterminestheexpectedcreditlossesoftherelevantfinancialinstrumentsusingthefollowingmethods:
A.Forfinancialassets,thecreditlossisthepresentvalueofthedifferencebetweenthecontractualcashflowsduetotheCompanyandtheexpectedcashflowstobecollected.
B.Forleasereceivables,thecreditlossisthepresentvalueofthedifferencebetweenthecontractualcashflowsduetotheCompanyandtheexpectedcashflowstobecollected.
C.Forfinancialguaranteecontracts,thecreditlossistheexpectedpaymenttobemadebytheCompanytocompensateforthecreditlossincurredbytheholderofthecontract,minusthepresentvalueofthedifferencebetweentheamounttheCompanyexpectstocollectfromtheholderofthecontract,thedebtor,oranyotherparty.
D.Forfinancialassetsthathaveincurredcreditimpairmentasofthebalancesheetdatebutarenotacquiredororiginatedcredit-impaired,thecreditlossisthedifferencebetweenthebookvalueofthefinancialassetandthepresentvalueoftheestimatedfuturecashflowsdiscountedattheoriginaleffectiveinterestrate.
ThemethodsusedbytheCompanytomeasuretheexpectedcreditlossesoffinancialinstrumentsreflectfactorsincluding:theunbiasedprobability-weightedaverageamountdeterminedbyevaluatingarangeofpossibleoutcomes;Thetimevalueofmoney.Informationthatcanbeobtainedonthebalancesheetdatewithouttheneedforunnecessaryadditionalcostsorefforts,whichisreasonableandsubstantiated,relatingtopastevents,currentconditions,andforecastsoffutureeconomiccircumstances.
4)Write-downoffinancialassets
WhentheCompanynolongerhasreasonableexpectationthatthecashflowsfromthefinancialassetcontractcanbefullyorpartiallyrecovered,thebookvalueofthefinancialassetisdirectlywrittendown.Thiswrite-downconstitutesthede-recognitionoftherelatedfinancialassets.
7.Offsettingoffinancialassetsandfinancialliabilities
Financialassetsandfinancialliabilitiesarepresentedseparatelyinthebalancesheetwithoutoffsettingeachother.However,ifthefollowingconditionsaremet,theyarepresentedintheBalanceSheetasanetamountafteroffsetting:
A.TheCompanyhasalegallyenforceablerighttooffsettherecognizedamounts,andthisrightiscurrentlyenforceable;
B.TheCompanyintendstosettleonanetbasis,ortorealizethefinancialassetandsettlethefinancialliabilitysimultaneously.
12.Notesreceivable
TheCompany'sdeterminationmethodandaccountingtreatmentmethodofexpectedcreditlossofnotesreceivablearedetailedintheNotesV.11.
TheCompanyseparatelydeterminesthecreditlossofreceivableswithsufficientevidencethatcanassesstheexpectedcreditlossatareasonablecostatthelevelofindividualinstrument.
Whenthereisnosufficientevidencetoevaluatetheexpectedcreditlossatareasonablecostatthelevelofindividualtools,theCompanyreferstothehistoricalcreditlossexperience,combinesthecurrentsituationandthejudgmentoffutureeconomicconditions,anddividesthenotesreceivableintoseveralcombinationsaccordingtothecreditriskcharacteristics,andcalculatestheexpectedcreditlossonthebasisofthecombination.Thebasisfordeterminingthecombinationisasfollows:
| Combinationname | Basisfordeterminingthecombination | Provisionmethod |
| Risk-freebankacceptancedraftcombination | Thedrawerhasahighcreditrating,andhasnobilldefaultinhistory,sotheriskofcreditlossisextremelylow,andalsohasastrongabilitytofulfilltheobligationtopaythecashflowofthecontractinashortperiodoftime. | Theprovisionforbaddebtsismeasuredwithreferencetothehistoricalcreditlossexperienceandincombinationwiththecurrentsituationandtheexpectationoffutureeconomicconditions. |
| Commercialacceptancedraftcombination | Accountsreceivablewiththesameaginghavesimilarcreditriskcharacteristics | Provisionismadebasedonthecomparisontableofagingandexpectedcreditlossrateovertheentireduration |
13.Accountsreceivable
TheCompany'sdeterminationmethodandaccountingtreatmentmethodofexpectedcreditlossofaccountsreceivablearedetailedintheNotesV.11.
TheCompanyseparatelydeterminesthecreditlossofaccountsreceivablewithsufficientevidencethattheexpectedcreditlosscanbeassessedatareasonablecostatthelevelofasingleinstrument.
Whenthereisnosufficientevidencetoevaluatetheexpectedcreditlossatareasonablecostatthelevelofindividualtools,theCompanyreferstothehistoricalcreditlossexperience,combinesthecurrentsituationandthejudgmentoffutureeconomicconditions,anddividestheaccountsreceivableintoseveralcombinationsaccordingtothecreditriskcharacteristics,andcalculatestheexpectedcreditlossonthebasisofthecombination.Thebasisfordeterminingthecombinationisasfollows:
| Combinationname | Basisfordeterminingthecombination | Provisionmethod |
| Combinationofreceivablesof | Accountsreceivableofrelatedpartieswithinthescopeofconsolidationhavesimilarcreditriskcharacteristics | Theprovisionforbaddebtsismeasuredwithreferencetothe |
| relatedpartieswithinthescopeofconsolidation | historicalcreditlossexperienceandincombinationwiththecurrentsituationandtheexpectationoffutureeconomicconditions. | |
| Combinationofothercustomers'receivables | Accountsreceivablewiththesameaginghavesimilarcreditriskcharacteristics | Provisionismadebasedonthecomparisontableofagingandexpectedcreditlossrateovertheentireduration |
14.Receivablesfinancing
Notapplicable
15.OtherreceivablesDeterminationmethodandaccountingtreatmentmethodofexpectedcreditlossofotherreceivablesTheCompany'sdeterminationmethodandaccountingtreatmentmethodofexpectedcreditlossofotheraccountsreceivablearedetailedintheNotesV.11.TheCompanyindividuallydeterminesthecreditlossesforotherreceivablesthathavesufficientevidencetoassessexpectedcreditlossesatareasonablecostonanindividualinstrumentlevel.Whensufficientevidencetoassessexpectedcreditlossesatareasonablecostisnotavailableonanindividualinstrumentlevel,theCompanyreferstohistoricalcreditlossexperience,combinedwithcurrentconditionsandjudgmentsaboutfutureeconomicconditions,andclassifiesotherreceivablesintoseveralcombinationstocalculateexpectedcreditlossesonacombinationbasis.Thebasisfordeterminingthecombinationisasfollows:
| Combinationname | Basisfordeterminingthecombination | Provisionmethod |
| Combinationofmarginanddepositreceivables | Accordingtothenatureofbusiness,marginanddepositshavesimilarcreditriskcharacteristics | Provisionismadebasedonthecomparisontableofagingandexpectedcreditlossrateovertheentireduration |
| Combinationofemployeereservereceivable | Accordingtothenatureofbusiness,employees'reservereceivableshavesimilarcreditriskcharacteristics | Theprovisionforbaddebtsismeasuredwithreferencetothehistoricalcreditlossexperienceandincombinationwiththecurrentsituationandtheexpectationoffutureeconomicconditions. |
| Combinationofsocialsecurityadvancesreceivable | Accordingtothenatureofbusiness,socialsecurityadvanceshavesimilarcreditriskcharacteristics | Theprovisionforbaddebtsismeasuredwithreferencetothehistoricalcreditlossexperienceandincombinationwiththecurrentsituationandtheexpectationoffutureeconomicconditions. |
| Combinationofreceivablesofrelatedpartieswithinthescopeofconsolidation | Accountsreceivableofrelatedpartieswithinthescopeofconsolidationhavesimilarcreditriskcharacteristics | Theprovisionforbaddebtsismeasuredwithreferencetothehistoricalcreditlossexperienceandincombinationwiththecurrentsituationandtheexpectationoffutureeconomicconditions. |
| Combinationofotherfinancings | Accountsreceivablewiththesameaginghavesimilarcreditriskcharacteristics | Provisionismadebasedonthecomparisontableofagingandexpectedcreditlossrateovertheentireduration |
16.ContractassetsTheCompanyrecognizesarighttoconsiderationfromthetransferofgoodstocustomersasacontractassetwhenthatrightisconditionalonfactorsotherthanthepassageoftime.TheCompany'sunconditionalrightstoconsiderationfromcustomers(i.e.,solelytime-based)arepresentedseparatelyasreceivables.TheCompany'sdeterminationmethodandaccountingtreatmentmethodofexpectedcreditlossofcontractualassetsaredetailedintheNotesV.11.
17.Inventories
1.Inventorycategories,costvaluationmethodsforoutgoinginventory,inventorysystem,andamortizationmethodsforlow-valueconsumablesandpackagingmaterials
(1)ClassificationofinventoryInventoryreferstothefinishedproductsorgoodsheldforsale,productsinproduction,andmaterialsandmaterialsconsumedduringtheproductionprocessorserviceprovisionthattheCompanyholdsinitsdailyactivities.Itmainlyincludesrawmaterials,productsinprocess,finishedproducts(stockcommodities),etc.
(2)CostvaluationmethodsforinventoryAtacquisition,inventoryisinitiallymeasuredatcost,includingpurchasingcost,processingcost,andothercosts.Rawmaterialsandinventoryitemsareissuedusingtheweightedaveragemethodforvaluation,exceptforbrandedwatchinventoryitems,whicharevaluedusingthespecificidentificationmethod.
(3)InventorysystemTheinventorysystemisaperpetualinventorysystem.
(4)Amortizationmethodsforlow-valueconsumablesandpackagingmaterialsLow-valueconsumablesareamortizedusingtheone-timecharge-offmethod;Packagingmaterialsareamortizedusingtheone-timecharge-offmethod;
2.CriteriaandmethodsforrecognizingandprovisioningforinventoryimpairmentAttheendoftheperiod,afteracomprehensiveinventorycheck,inventoryimpairmentprovisionsaremadeoradjustedbasedonthelowerofcostornetrealizablevalue.Forfinishedgoods,merchandiseinventory,andmaterialsforsalethataredirectlyintendedforsaleinthenormalcourseofbusiness,theirnetrealizablevalueisdeterminedbytheestimatedsellingpriceminustheestimatedsellingexpensesandrelatedtaxes.Formaterialinventorythatrequiresprocessing,inthenormalcourseofbusiness,itsnetrealizablevalueisdeterminedbytheestimatedsellingpriceoftheproducedfinishedgoodsminustheestimatedcoststocompletion,estimatedsellingexpenses,andrelatedtaxes.Forinventoryheldtofulfillsalesorservicecontracts,thenetrealizablevalueiscalculatedbasedonthecontractprice.Ifthequantityofinventoryheldexceedsthequantityorderedinthesalescontract,thenetrealizablevalueoftheexcessinventoryiscalculatedbasedonthegeneralsellingprice.Attheendoftheperiod,inventoryimpairmentprovisionsaremadeforindividualinventoryitems;However,forinventoriesthatarenumerousandhavelowunitprices,provisionsforinventoryimpairmentaremadebasedoninventorycategories.Inventorythatisrelatedtotheproductseriesproducedandsoldinthesameregion,withthesameorsimilarfinalusesorpurposes,andthatisdifficulttomeasureseparately,shallbecombinedfortheprovisionofinventoryimpairment.Ifthefactorsthatledtotheinventorywrite-downhavedisappeared,theamountofthewrite-downisreversedandincludedinthecurrentprofitandlosswithintheamountofinventoryimpairmentprovisionoriginallyrecognized.
Theprovisionforinventorydepreciationbycombinationisasfollows:
| Category | Determinationbasisofcategory | Determinationbasisofthenetrealizablevalueofthecategory |
| Combinationofmerchandiseinventoryyears | Newproductslaunchedbyprivatebrandsinthecurrentyear | Noprovisionforrevaluationreserve |
18.Assetsheldforsale
Notapplicable
19.DebtinvestmentNotapplicable
20.OtherdebtinvestmentNotapplicable
21.Long-termreceivablesNotapplicable
22.Long-termequityinvestments
1.DeterminationofinitialinvestmentcostA.Long-termequityinvestmentsformedthroughbusinesscombinations,seetheNotes6forspecificaccountingpoliciesonbusinesscombinationsundercommoncontrolandthosenotundercommoncontrol.
B.Long-termequityinvestmentsacquiredthroughothermeansLong-termequityinvestmentsacquiredbypayingcasharemeasuredattheactualacquisitionpriceastheinitialinvestmentcost.Initialinvestmentcostincludesdirectlyrelatedexpenses,taxes,andothernecessaryexpendituresincurredinacquiringthelong-termequityinvestment.Long-termequityinvestmentsacquiredbyissuingequitysecuritiesaremeasuredatthefairvalueoftheissuedsecuritiesastheinitialinvestmentcost;Transactioncostsincurredinissuingoracquiringownequityinstrumentscanbedirectlydeductedfromequityinequitytransactions.
Underthepremisethatanon-monetaryassetexchangehascommercialsubstanceandthefairvalueoftheassetreceivedorsurrenderedcanbereliablymeasured,theinitialinvestmentcostofthelong-termequityinvestmentacquiredinanon-monetaryassetexchangeisbasedonthefairvalueofthesurrenderedasset,unlessthereisconclusiveevidencethatthefairvalueofthereceivedassetismorereliable;Fornon-monetaryassetexchangesthatdonotmeettheabovepremise,theinitialinvestmentcostofthelong-termequityinvestmentacquiredisbasedonthebookvalueofthesurrenderedassetandrelatedtaxesandfeespayable.
Long-termequityinvestmentsobtainedthroughdebtrestructuringareinitiallymeasuredatcostbasedonfairvalue.
2.Subsequentmeasurementandrecognitionofprofitorloss
A.Costmethod
TheCompanyaccountsforlong-termequityinvestmentsoverwhichithascontrolusingthecostmethod,measuredatinitialinvestmentcost,withadditionalinvestmentsorwithdrawalsadjustingthecostofthelong-termequityinvestment.
Apartfromcashdividendsorprofitsdeclaredbutnotyetdistributedincludedinthepriceorconsiderationpaidatthetimeofinvestment,theCompanyrecognizescashdividendsorprofitsdistributedbytheinvesteeascurrentinvestmentincome.
B.Equitymethod
TheCompanyusestheequitymethodtoaccountforlong-termequityinvestmentsinassociatesandjointventures;Foraportionofequityinvestmentsinassociatesheldindirectlythroughventurecapitalorganizations,mutualfunds,trustcompanies,orsimilarentitiesincludinginvestment-linkedinsurancefunds,fairvaluemeasurementisusedandchangesarerecognizedinprofitorloss.
Iftheinitialcostofalong-termequityinvestmentisgreaterthanthefairvalueshareoftheidentifiablenetassetsoftheinvesteeatthetimeofinvestment,theinitialinvestmentcostisnotadjusted;Iftheinitialinvestmentcostislessthanthefairvalueshareoftheidentifiablenetassetsoftheinvesteeatthetimeofinvestment,thedifferenceisrecognizedinthecurrentprofitorloss.
Afteracquiringlong-termequityinvestments,theCompanyrecognizesinvestmentincomeandothercomprehensiveincomebasedonitsshareofnetgainsorlossesandothercomprehensiveincomerealizedbytheinvestee,andadjuststhebookvalueofthelong-termequityinvestmentaccordingly;italsocalculatestheshareofprofitsorcashdividendsdeclaredbytheinvesteeandcorrespondinglyreducesthebookvalueofthelong-termequityinvestment;Forchangesintheinvestee'sequityotherthannetprofitsorlosses,othercomprehensiveincome,andprofitdistribution,thebookvalueoflong-termequityinvestmentshallbeadjustedandincludedintheowner'sequity.
Whenrecognizingtheshareofthenetprofitandlossoftheinvestee,theCompanyadjustsandrecognizesthenetprofitoftheinvesteebasedonthefairvalueoftheidentifiableassetsoftheinvesteeatthetimeofinvestment.UnrealizedprofitsandlossesofinternaltransactionsbetweentheCompanyanditsassociatedenterprisesandjointventuresshallbeoffsetbytheportionthatbelongstotheCompanyaccordingtothedueproportion,andtheinvestmentprofitsandlossesshallberecognizedonthisbasis.
Whenrecognizingitsshareoflossesincurredbytheinvestee,theCompanyshallhandleitinthefollowingorder:
first,itoffsetsthebookvalueofthelong-termequityinvestment.Next,ifthebookvalueofthelong-termequityinvestmentisinsufficienttooffsetthelosses,theCompanycontinuestorecognizeinvestmentlosseslimitedtothebookvalueofotherlong-termequityintereststhatsubstantiallyconstituteanetinvestmentintheinvestee,offsettingthebookvalueoflong-termreceivablesandotheritems.Finally,aftertheaboveactions,iftheCompanystillhasadditionalobligationsasstipulatedbytheinvestmentcontractoragreement,itrecognizesaprovisionforliabilitiesbasedontheexpectedobligationandincludesitinthecurrentinvestmentlosses.
Iftheinvesteerealizesprofitsinsubsequentperiods,theCompanyreversestheprocessdescribedaboveafterdeductingtheshareofunrecognizedlosses.Itreducesthebookvalueofrecognizedprovisionsforliabilities,restoresotherlong-termequityinterestsandthebookvalueoflong-termequityinvestmentsthatsubstantiallyconstituteanetinvestmentintheinvestee,andthenresumesrecognizinginvestmentincome.
3.Conversionofaccountingmethodsforlong-termequityinvestments
1)Fairvaluemeasurementtoequitymethodaccounting
ForequityinvestmentsininvesteesoverwhichtheCompanyoriginallyhadnocontrol,jointcontrol,orsignificantinfluenceandwhichwereaccountedforinaccordancewithfinancialinstrumentsrecognitionandmeasurementguidelines,ifadditionalinvestmentsenabletheCompanytoexertsignificantinfluenceorjointcontrolwithoutconstitutingcontrol,thefairvalueoftheoriginalequityinvestmentdeterminedbytheAccountingStandardsfor
BusinessEnterprisesNo.22-RecognitionandMeasurementofFinancialInstrumentsplusthecostoftheadditionalinvestment,shallbetheinitialinvestmentcostundertheequitymethod.Iftheinitialinvestmentcostundertheequitymethodislessthanthedifferencebetweenthefairvalueshareoftheidentifiablenetassetsoftheinvesteeonthedateoftheadditionalinvestment,calculatedbasedonthenewshareholdingscalepost-investment,thebookvalueofthelong-termequityinvestmentisadjusted,andthedifferenceisrecognizedincurrentnon-operatingincome.
2)FairvaluemeasurementorequitymethodaccountingtocostmethodaccountingForequityinvestmentsininvesteesoverwhichtheCompanyoriginallyhadnocontrol,jointcontrol,orsignificantinfluenceandwhichwereaccountedforinaccordancewithfinancialinstrumentsrecognitionandmeasurementguidelines,orforlong-termequityinvestmentsinassociatesandjointventures,ifadditionalinvestmentsleadtocontrolovertheinvesteenotundercommoncontrol,inpreparingindividualfinancialstatements,thebookvalueoftheoriginalequityinvestmentplusthecostoftheadditionalinvestment,shallbetheinitialinvestmentcostunderthecostmethod.
Othercomprehensiveincomerecognizedfromequityinvestmentsaccountedforbytheequitymethodbeforetheacquisitiondateisaccountedforonthesamebasisasthedirectdisposalofrelatedassetsorliabilitiesbytheinvestee.
ForequityinvestmentsheldbeforetheacquisitiondatethatwereaccountedforinaccordancewiththeAccountingStandardsforBusinessEnterprisesNo.22-RecognitionandMeasurementofFinancialInstruments,thecumulativefairvaluechangespreviouslyrecognizedinothercomprehensiveincomeshallbereclassifiedtocurrentprofitorlossunderthecostmethod.
3)Equitymethodaccountingtofairvaluemeasurement
IftheCompanylosesjointcontrolorsignificantinfluenceovertheinvesteeduetopartialdivestmentofequityinvestments,theremainingequityinvestmentsafterthedisposalshallbesubjecttoaccountingtreatmentinaccordancewiththeAccountingStandardsforBusinessEnterprisesNo.22-RecognitionandMeasurementofFinancialInstruments,andthedifferencebetweenthefairvalueandthebookvalueonthedateoflosingjointcontrolorsignificantinfluenceshallberecognizedincurrentprofitorloss.
Fororiginalequityinvestmentsthatrecognizedothercomprehensiveincomeundertheequitymethod,othercomprehensiveincomeshallbesubjecttoaccountingtreatmentonthesamebasisasiftheinvesteehaddirectlydisposedoftherelatedassetsorliabilitiesnotundertheequitymethod.
4)Costmethodtoequitymethod
IftheCompanylosesthecontrolovertheinvesteeduetodisposalofpartofequityinvestmentsorotherreasons,inthepreparationofindividualfinancialstatements,theremainingequityafterdisposalthatcanexercisejointcontrolorsignificantinfluenceovertheinvesteeshallbesubjecttoaccountingtreatmentundertheequitymethod,andtheremainingequityshallbedeemedtohavebeenadjustedundertheequitymethodsinceacquisition.
5)Costmethodtofairvaluemeasurement
IftheCompanylosesthecontrolovertheinvesteeduetodisposalofpartofequityinvestmentsandotherreasons,inthepreparationofindividualfinancialstatements,theremainingequityafterdisposalthatcannotexercisejointcontrolorexertsignificantinfluenceontheinvesteeshallbesubjecttoaccountingtreatmentinaccordancewiththerelevantprovisionsoftheAccountingStandardsforBusinessEnterprisesNo.22-RecognitionandMeasurementofFinancialInstruments,andthedifferencebetweenthefairvalueandthebookvalueonthedatewhenthecontrolislostshallbeincludedinthecurrentprofitandloss.
4.Disposaloflong-termequityinvestments
Fordisposaloflong-termequityinvestment,thedifferencebetweenthebookvalueandtheactualpriceshallbeincludedinthecurrentprofitandloss.Forlong-termequityinvestmentsaccountedforundertheequitymethod,when
disposingoftheinvestment,thepartoriginallyincludedinothercomprehensiveincomeshallbesubjecttoaccountingtreatmentaccordingtothecorrespondingscaleonthesamebasisastheinvesteedirectlydisposesoftherelevantassetsorliabilities.Iftheterms,conditionsandeconomicimpactofthetransactionsrelatedtothedisposaloftheequityinvestmentinsubsidiariesmeetoneormoreofthefollowingcircumstances,multipletransactionswillbetakenasapackagetransactionforaccountingtreatment:
A.Thesetransactionsareconcludedatthesametimeorundertheconsiderationofmutualinfluence;B.Thesetransactionscollectivelyachieveacompletecommercialresult;C.Theoccurrenceofonetransactiondependsontheoccurrenceofatleastoneothertransaction;D.Atransactionisuneconomicalonitsown,buteconomicalwhenconsideredtogetherwithothertransactions.Wherethecontrolovertheoriginalsubsidiariesislostduetodisposalofpartofequityinvestmentsorotherreasons,anditdoesnotbelongtoapackagetransaction,relevantaccountingtreatmentshallbemadebydistinguishingindividualfinancialstatementsfromconsolidatedfinancialstatements:
1)Intheindividualfinancialstatements,forthedisposalofequity,thedifferencebetweenthebookvalueandtheactualacquisitionpriceshallbeincludedinthecurrentprofitandloss.Iftheremainingequityafterdisposalcanexercisejointcontrolorsignificantinfluenceontheinvestee,itshallbesubjecttoaccountingtreatmentundertheequitymethod,andtheremainingequityshallbeadjustedasifithadbeenaccountedforundertheequitymethodsinceacquisition;Iftheremainingequityafterdisposalcannotexercisejointcontrolorsignificantinfluenceontheinvestee,itshallbesubjecttoaccountingtreatmentinaccordancewiththerelevantprovisionsoftheAccountingStandardsforBusinessEnterprisesNo.22-RecognitionandMeasurementofFinancialInstruments,andthedifferencebetweenthefairvalueandthebookvalueonthedatewhenthecontrolislostshallbeincludedinthecurrentprofitandloss.
2)Intheconsolidatedfinancialstatements,forvarioustransactionsbeforethelossofcontroloverthesubsidiaries,thecapitalreserves(stockpremium)areadjustedaccordingtothedifferencebetweenthedisposalpriceandtheshareofnetassetsofthesubsidiariescontinuouslycalculatedfromtheacquisitiondateorthecombinationdatecorrespondingtothedisposaloflong-termequityinvestment.Ifthecapitalreservesareinsufficient,theretainedearningsshallbeadjusted;Whenthecontroloversubsidiariesislost,theremainingequityshallbere-measuredatitsfairvalueonthedateoflossofcontrol.Thedifferencebetweenthesumoftheconsiderationobtainedfromthedisposalofequityandthefairvalueoftheremainingequity,lesstheshareofthenetassetsoftheoriginalsubsidiarycalculatedcontinuouslyfromtheacquisitiondateaccordingtotheoriginalshareholdingratio,isincludedintheinvestmentincomeintheperiodoflosingcontrol,andthegoodwillisalsowrittendown.Othercomprehensiveincomerelatedtoequityinvestmentsintheoriginalsubsidiaryshallbeconvertedintocurrentinvestmentprofitsatthelossofcontrol.
Ifthetransactionsofdisposalofequityinvestmentsinsubsidiariesuntilthelossofcontrolbelongtoapackagetransaction,thetransactionsshallbeaccountedforasatransactionofdisposalofequityinvestmentinsubsidiariesandlossofcontrol,andtherelevantaccountingtreatmentshallbecarriedoutbydistinguishingindividualfinancialstatementsandconsolidatedfinancialstatements:
1)Inindividualfinancialstatements,thedifferencebetweeneachdisposalpriceandthebookvalueoflong-termequityinvestmentcorrespondingtothedisposedequitybeforethelossofcontrolisrecognizedasothercomprehensiveincome,andtransferredtothecurrentprofitorlossatthelossofcontrol.
2)Intheconsolidatedfinancialstatements,thedifferencebetweeneachdisposalpriceandtheshareofnetassetsofthesubsidiarycorrespondingtoeachdisposalofinvestmentbeforethelossofcontrolisrecognizedasothercomprehensiveincome,whichisconvertedtothecurrentprofitorlossatthelossofcontrol.
5.Judgmentcriteriaforcommoncontrolandsignificantinfluence
IftheCompanycollectivelycontrolsanarrangementaccordingtotherelevantagreementwithotherparticipants,anddecisionsonactivitiesthatsignificantlyaffectthereturnsofthearrangementrequireunanimousconsentfromtheparticipantssharingcontrol,thentheCompanyisconsideredtojointlycontrolthearrangementwithotherparticipants,whichconstitutesajointventure.Whenajointventureisestablishedthroughaseparateentity,theCompany'srightsoverthenetassetsoftheseparateentityaredeterminedaccordingtotherelevantagreement.Theseparateentityisthenaccountedforasajointventureusingtheequitymethod.If,accordingtotherelevantagreement,theCompanyisnotdeemedtohaverightsoverthenetassetsoftheseparateentity,theentityisconsideredasjointoperation.TheCompanyrecognizesitemsrelatedtoitsshareofthejointoperation'sprofitsandaccountsfortheminaccordancewiththerelevantaccountingstandards.
Significantinfluencereferstothepowertoparticipateindecision-makingoverthefinancialandoperatingpoliciesoftheinvestee,withouthavingcontrolorjointcontrolovertheformulationofthosepolicies.TheCompanyassesseswhetherithassignificantinfluenceovertheinvesteebyconsideringallfactsandcircumstancesandthroughoneormoreofthefollowingsituations:(1)havingrepresentationontheboardofdirectorsorsimilargoverningbodyoftheinvestee;(2)participatingintheprocessofsettingfinancialandoperatingpoliciesoftheinvestee;(3)engaginginsignificanttransactionswiththeinvestee;(4)appointingmanagerialpersonneltotheinvestee;(5)providingessentialtechnicalinformationtotheinvestee.
23.Investmentproperties
MeasurementmodelofinvestmentpropertyMeasuredundercostmethodDepreciationoramortizationmethod
Investmentpropertiesrefertorealestateheldforearningrentalincomeorcapitalappreciation,orboth,includingleasedlanduserights,landuserightsheldforappreciationandsubsequenttransfer,andleasedbuildings.Furthermore,forvacantbuildingsheldbytheCompanyforoperationalleasing,iftheBoardofDirectorsissuesawrittenresolutionexplicitlystatingtheintenttousethemforoperationalleasingandthattheholdingintentionwillnotchangeintheshortterm,theyarealsoreportedasinvestmentproperties.
TheCompany'sinvestmentpropertiesarerecordedatcostastheirentryvalue,whichforexternallyacquiredinvestmentpropertiesincludestheacquisitionprice,relatedtaxesandfees,andotherexpendituresthatcanbedirectlyattributedtotheasset.Thecostofself-constructedinvestmentpropertiesconsistsofnecessaryexpendituresincurredbeforetheassetreachesitsintendedusablestate.
TheCompanyusesthecostmodelforsubsequentmeasurementofinvestmentproperties,providingdepreciationoramortizationforbuildingsandlanduserightsbasedontheirexpectedservicelivesandnetresidualvaluerates.Theexpectedservicelives,netresidualvaluerates,andannualdepreciation(amortization)ratesofinvestmentpropertiesarelistedasfollows:
| Category | Expectedservicelife(years) | Expectednetresidualvaluerate(%) | Annualdepreciation(amortization)rate(%) |
| Housesandbuildings | 20-35 | 5.00 | 2.71-4.85 |
Whentheuseofinvestmentpropertyischangedtoowner-occupied,fromthedateofchange,theCompanyreclassifiestheinvestmentpropertyasfixedassetsorintangibleassets.Whentheuseofowner-occupiedpropertyischangedtoearnrentalincomeorcapitalappreciation,fromthedateofchange,theCompanyreclassifiesfixedassetsorintangibleassetsasinvestmentproperty.Atthetimeofconversion,thebookvaluebeforeconversionisusedastherecordedvalueafterconversion.
Wheninvestmentpropertyisdisposedof,orpermanentlywithdrawnfromuseandnoeconomicbenefitsareexpectedfromitsdisposal,therecognitionofsuchinvestmentpropertyisceased.Theincomefromthesale,transfer,scrapping,ordestructionofinvestmentproperty,afterdeductingitsbookvalueandrelatedtaxes,isrecognizedinthecurrentprofitorloss.
24.Fixedassets
(1)Recognitionconditions
Fixedassetsrefertotangibleassetsheldfortheproductionofgoods,provisionofservices,leasing,oradministrativepurposes,andhaveaservicelifeexceedingoneaccountingyear.Fixedassetsarerecognizedwhentheymeetthefollowingconditions:
1)Itisprobablethattheeconomicbenefitsassociatedwiththefixedassetwillflowintotheenterprise;
2)Thecostofthefixedassetcanbemeasuredreliably.
(2)Depreciationmethods
| Category | Depreciationmethod | Depreciationperiod | Residualvaluerate | Annualdepreciationrate |
| Housesandbuildings | Straight-linemethod | 20-35 | 5 | 2.71-4.85 |
| Machineryequipment | Straight-linemethod | 10 | 5.00-10.00 | 9.50-9.00 |
| Electronicequipment | Straight-linemethod | 5 | 5 | 19 |
| Transportequipment | Straight-linemethod | 5 | 5 | 19 |
| Otherequipment | Straight-linemethod | 5 | 5 | 19 |
1.Depreciationoffixedassets
Thedepreciationoffixedassetsisaccruedovertheirexpectedservicelivesbasedontheirbook-entryvaluesminustheirexpectednetresidualvalues.Forfixedassetswithprovisionforimpairment,thedepreciationamountwillbedeterminedinthefutureaccordingtothebookvalueafterdeductingtheimpairmentprovisionandtheservicelife;Fixedassetsthathavebeenfullydepreciatedandarestillinuseshallnotbedepreciated.
TheCompanydeterminestheusefullifeandestimatednetresidualvalueofthefixedassetsaccordingtotheirnatureandusage.Attheendofeachfiscalyear,theCompanyreviewstheusefullife,estimatednetresidualvalue,anddepreciationmethodoffixedassets,andmakescorrespondingadjustmentsiftherearedifferencesfromtheoriginalestimates.
2.Subsequentexpendituresonfixedassets
Subsequentexpendituresrelatedtofixedassetsthatmeettherecognitioncriteriaforfixedassetsareincludedinthecostoffixedassets;Thosethatdonotmeettherecognitioncriteriaforfixedassetsareincludedinthecurrentprofitsandlosseswhenincurred.
3.Disposaloffixedassets
Fixedassetsarederecognizedupondisposalorwhennofutureeconomicbenefitsareexpectedfromtheiruseordisposal.Thenetamountofdisposalincomefromfixedassetsthroughsale,transfer,scrapping,ordamage,afterdeductingtheirbookvalueandrelatedtaxes,isrecognizedinthecurrentprofitsandlosses.
25.Constructioninprogress
1.Initialmeasurementofconstructioninprogress
TheCompanyvaluesself-constructedconstructioninprogressatactualcost.Actualcostscomprisenecessaryexpendituresincurredtobringtheassettotheintendedusablestate,includingmaterialcosts,laborcosts,relatedtaxes,capitalizedborrowingcosts,andapportionedindirectcosts.
2.Standardandtimingfortransferringofconstructioninprogresstofixedassets
Thetotalexpensesincurredbeforetheconstructioninprogressassetisreadyforitsintendedusearerecordedastheentryvalueofthefixedasset.Constructioninprogressistransferredtofixedassetsatthetotalexpenditureincurredbeforetheassetreachesitsintendedusablestate.Iftheprojectisusablebutfinalsettlementhasnotbeencompleted,itistransferredbasedonestimatedvalueanddepreciatedaccordingtotheCompany'sdepreciationpolicy.Adjustmentsaremadetotheestimatedvalueuponfinalsettlement,butpreviouslyrecognizeddepreciationisnotadjusted.
26.Borrowingcosts
1.Recognitionprincipleofcapitalizationofborrowingcosts
WheretheborrowingcostsincurredtotheCompanycanbedirectlyattributabletotheacquisitionandconstructionorproductionofassetseligibleforcapitalization,suchcostsshallbecapitalized;Andotherborrowingcostsshallberecognizedasexpensesandincludedincurrentprofitsandlosseswhenincurred.
Qualifyingcapitalizedassetsarethosethatrequireasubstantialperiodtogetreadyfortheirintendeduseorsale,includingfixedassets,investmentproperties,andinventories.
Borrowingcostsbegintobecapitalizedwhenthefollowingconditionsaremet:
(1)Expendituresfortheassethavebeenincurred,includingcashpayments,transfersofnon-cashassets,orincurringinterest-bearingdebtfortheacquisitionandconstructionorproductionoftheasset;
(2)Borrowingcostshavebeenincurred;
(3)Acquisitionandconstructionorproductionactivitiesnecessarytobringtheassettoitsintendeduseorsalehavecommenced.
2.Capitalizationperiodofborrowingcosts
Thecapitalizationperiodspansfromwhenborrowingcostsbegintobecapitalizeduntiltheycease,excludinganyperiodswhencapitalizationissuspended.
Theborrowingcostsshallstopbeingcapitalizedwhenacquiredandconstructedorproducedassetseligibleforcapitalizationareavailableforuseorsale.
Ifpartsofanassetbeingacquiredandconstructedorproducedarecompletedandcanbeusedindependently,capitalizationofborrowingcostsforthosepartsceases.
Whenvariouspartsofanassetarecompletedseparatelybuttheassetcanonlybeusedorsoldasawholeupontotalcompletion,capitalizationofborrowingcostsceaseswhentheentireassetisfinished.
3.Suspensionofcapitalizationperiod
Wheretheacquisitionandconstructionorproductionofassetseligibleforcapitalizationisinterruptedabnormallyandtheinterruptionlastsformorethan3months,thecapitalizationofborrowingcostsshallbesuspended;Iftheinterruptionisanecessaryprocedurefortheassettobereadyforuseorsale,thecapitalizationofborrowingcostscontinues.Borrowingcostsincurredduringtheinterruptionarerecognizedascurrentprofitsandlosses,untiltheacquisitionandconstructionorproductionactivitiesresumeandthecapitalizationofborrowingcostscontinues.
4.Calculationmethodofcapitalizedamountofborrowingcosts
Interestexpensesonspecificborrowings(afterdeductinginterestincomeearnedfromunusedborrowingsdepositedinthebankorinvestmentreturnsfromtemporaryinvestments)andrelatedancillarycostsarecapitalizeduntilthequalifyingassetisreadyforitsintendeduseorsale.Theinterestamountofgeneralborrowingstobecapitalizediscalculatedbasedontheweightedaverageoftheassetexpendituresexceedingthespecificborrowings,multipliedbythesimpleaverageatendoftheperiod,andthecapitalizationrateofthegeneralborrowingsoccupied.Thecapitalizationrateiscalculatedanddeterminedbasedontheweightedaverageinterestrateofgeneralborrowings.
Forborrowingsissuedatadiscountorpremium,theamountofdiscountorpremiumamortizedineachaccountingperiodisdeterminedusingtheeffectiveinterestmethod,adjustingtheinterestamountforeachperiod.
27.Biologicalassets
Notapplicable
28.OilandgasassetsNotapplicable
29.Intangibleassets
(1)Servicelifeanditsdeterminationbasis,estimation,amortizationmethodorreviewprocedure
Intangibleassetsrefertoidentifiablenon-monetaryassetswithoutphysicalsubstancethattheCompanyownsorcontrols,includinglanduserights,softwaresystemsandtrademarkuserights.
1)Initialmeasurementofintangibleassets
Thecostofexternallyacquiredintangibleassetsincludesthepurchaseprice,relatedtaxesandfees,andotherexpensesdirectlyattributabletopreparingtheassetforitsintendeduse.Ifthepaymentforintangibleassetsexceedsnormalcredittermsandessentiallyrepresentsfinancing,thecostoftheintangibleassetsisdeterminedbasedonthepresentvalueofthepurchaseprice.
Intangibleassetsacquiredthroughdebtrestructuringtosettledebtsaremeasuredattheirfairvalueuponrecognition,andanydifferencebetweenthebookvalueoftherestructureddebtandthefairvalueoftheintangibleassetsisrecognizedinthecurrentprofitorloss.
Inanon-monetaryassetexchangethathascommercialsubstanceandwherethefairvalueoftheassetsreceivedorsurrenderedcanbereliablymeasured,thecostoftheintangibleassetsacquiredisbasedonthefairvalueoftheassetssurrendered,unlessthereisconclusiveevidencethatthefairvalueoftheacquiredassetsismorereliable;Fornon-monetaryassetexchangesthatdonotmeettheaboveconditions,thecostoftheintangibleassetsacquiredisbasedonthebookvalueoftheassetssurrenderedandtherelatedtaxesandfeespaid,withoutrecognizinganyprofitorloss.
Intangibleassetsacquiredthroughbusinesscombinationundercommoncontrolaremeasuredatthebookvalueofthemergedparty;Formergersnotundercommoncontrol,intangibleassetsarerecognizedatfairvalue.
Intangibleassetsdevelopedinternallyincludecostsformaterialsused,labor,registrationfees,amortizationofotherpatentsandlicensesusedduringdevelopment,interestexpensesthatmeetcapitalizationcriteria,andotherdirectexpensesincurredbeforetheintangibleassetsarereadyfortheirintendeduse.
2)SubsequentmeasurementofintangibleassetsTheCompanyclassifiesintangibleassetsashavingeitherfiniteorindefiniteusefullivesuponacquisition.IntangibleassetswithlimitedusefullifeIntangibleassetswithafiniteusefullifeareamortizedonastraight-linebasisovertheirbeneficialperiods.Theestimatedusefullifeandbasisforintangibleassetswithafiniteusefullifeareasfollows:
| Item | Estimatedservicelife | Basis |
| Landuserights | 50 | Straight-linemethod |
| Softwaresystem | 5 | Straight-linemethod |
| Righttousetrademark | 5-10 | Straight-linemethod |
Attheendofeachperiod,theusefullifeandamortizationmethodofintangibleassetswithafiniteusefullifearereviewed.Iftherearedifferencesfromtheoriginalestimates,adjustmentsaremadeaccordingly.Uponreview,therewerenochangesintheestimatedusefullifeandamortizationmethodofintangibleassetsattheendofthecurrentperiod.
(2)CollectionscopeofR&Dexpensesandrelatedaccountingtreatmentmethods
1)SpecificstandardsforclassifyingtheresearchstageanddevelopmentstageoftheCompany'sinternalresearchanddevelopmentprojects
Researchstage:Thisstageinvolvesoriginalandplannedinvestigationactivitiesundertakentoacquireandunderstandnewscientificortechnicalknowledge.
Developmentstage:Thisstageinvolvesapplyingresearchfindingsorotherknowledgetoaplanordesignforproducingneworsubstantiallyimprovedmaterials,devices,products,etc.,beforecommercialproductionoruse.
Expendituresduringtheresearchstageofinternalresearchanddevelopmentprojectsarerecognizedasanexpenseinthecurrentprofitsandlosseswhenincurred.
2).Specificcriteriaforcapitalizingexpendituresduringthedevelopmentstage
Expendituresduringthedevelopmentstageofinternalresearchanddevelopmentprojectsarerecognizedasintangibleassetswhenthefollowingconditionsaremet:
A.Completesuchintangibleassettomakeitusableorsalablewithtechnicalfeasibility;
B.Intentionofcompletingsuchintangibleassetforuseorsale;
C.Thewaysinwhichintangibleassetsgenerateeconomicbenefitsincludebeingabletodemonstratethatproductsproducedusingtheintangibleassetshaveamarket,orthattheintangibleassetsthemselveshaveamarket.Iftheintangibleassetsareintendedforinternaluse,theirutilitymustbeproven;
D.Thereissufficientsupportfromtechnical,financialresourcesandotherresources,tocompletedevelopmentofsuchintangibleassets,andtheabilityofusingorsellingsuchintangibleassets;
E.Theexpendituresattributabletodevelopmentstageofsuchintangibleassetsshallbemeasuredreliably.
Expendituresinthedevelopmentstagethatdonotmeettheaboveconditionsshallbeincludedinthecurrentprofitsandlosseswhenincurred.Developmentexpendituresrecognizedinprofitsandlossesinpriorperiodsshallnotbesubsequentlyreclassifiedasassets.Capitalizeddevelopmentphaseexpendituresarepresentedasdevelopmentexpendituresonthebalancesheetandarereclassifiedasintangibleassetsfromthedatetheprojectisreadyforitsintendeduse.
30.Long-termassetsimpairment
TheCompanyassesseswhetherthereareanyindicationsthatlong-termassetsmaybeimpairedasofthebalancesheetdate.Ifindicationsofimpairmentexistinlong-termassets,theirrecoverableamountisestimatedbasedonindividualassets;Ifitisdifficulttoestimatetherecoverableamountofanindividualasset,therecoverableamountoftheassetgrouptowhichtheassetbelongsisdetermined.Theestimateoftherecoverableamountofanassetisbasedonthehigherofitsfairvaluelesscoststosellandthepresentvalueoftheexpectedfuturecashflows.Iftheestimatedrecoverableamountofalong-termassetislowerthanitscarryingamount,thecarryingamountofthelong-termassetiswrittendowntoitsrecoverableamount.Theimpairmentlossisrecognizedincurrentprofitsandlossesandanimpairmentprovisionismadeaccordingly.Oncerecognized,impairmentlossesforassetsshallnotbereversedinsubsequentaccountingperiods.
Aftertherecognitionofanimpairmentloss,thedepreciationoramortizationexpenseoftheimpairedassetisadjustedinfutureperiodstosystematicallyallocatetheasset'sadjustedcarryingamount(lesstheexpectednetresidualvalue)overitsremainingusefullife.
Goodwillarisingfrombusinesscombinationsandintangibleassetswithindefiniteusefullivesaretestedforimpairmentannually,regardlessofwhetherthereareanyindicationsofimpairment.
Whentestingforimpairmentofgoodwill,thecarryingamountofgoodwillisallocatedtotheassetgroupsorcombinationsthatareexpectedtobenefitfromthesynergiesofthebusinesscombination.Whentestingforimpairmentofassetgroupsorcombinationsthatincludegoodwill,ifthereareindicationsofimpairmentfortheassetgroupsorcombinationsrelatedtogoodwill,theassetgroupsorcombinationsthatdonotincludegoodwillaretestedforimpairmentfirst.Therecoverableamountiscalculatedandcomparedwiththerelatedcarryingamounttorecognizethecorrespondingimpairmentloss.Then,theassetgroupsorcombinationsthatincludegoodwillaretestedforimpairment,comparingthecarryingamountoftheserelatedassetgroupsorcombinations(includingtheallocatedportionofthecarryingamountofgoodwill)withtheirrecoverableamount.Iftherecoverableamountoftherelatedassetgroupsorcombinationsislowerthantheircarryingamount,theimpairmentlossofgoodwillisrecognized.
31.Long-termdeferredexpenses
1.Amortizationmethod
Long-termdeferredexpensesrefertoexpensesthathavebeenincurredbytheCompanybutaretobebornebythecurrentandsubsequentperiods,withanamortizationperiodofmorethan1year.Long-termdeferredexpensesareamortizedonastraight-linebasisoverthebenefitperiod.
2.Amortizationperiod
| Category | Amortizationperiod |
| Counterproductionfee | 2-3 |
| Decorationfee | 3-5 |
| Other | 2-3 |
32.Contractliabilities
Contractliabilitiesaretheobligationsforwhichthecompanyhasreceivedorisentitledtoreceiveconsiderationfromcustomersforthetransferofgoods.
33.Employeecompensation
(1)Accountingtreatmentmethodsforshort-termcompensation
Short-termcompensationisemployeecompensationthatisexpectedtobefullypaidwithintwelvemonthsaftertheendoftheannualreportingperiodinwhichemployeesproviderelatedservices,excludingpost-employmentandterminationbenefits.Duringtheaccountingperiodwhenservicesareprovidedbyemployees,thecompanyrecognizespayableshort-termcompensationasliabilitiesandincludestheminthecostofrelatedassetsandexpensesbasedonthebeneficiariesoftheservicesprovided.
(2)Accountingtreatmentmethodforpostemploymentbenefits
Post-employmentbenefitsarevariousformsofremunerationandbenefitsprovidedtoemployeesaftertheyretireorterminatetheiremploymentwiththecompany,excludingshort-termcompensationandterminationbenefits.
Thecompany'spost-employmentbenefitplansareclassifiedintodefinedcontributionplans.
Post-employmentdefinedcontributionplansmainlyconsistofparticipationinsocialbasicpensioninsurance,unemploymentinsurance,etc.,organizedandimplementedbylocallaborandsocialsecurityinstitutions.Duringtheaccountingperiodinwhichemployeesprovideservices,thecompanyrecognizesthecontributionspayableunderdefinedcontributionplansasaliabilityandincludestheminthecurrentprofitsandlossesorthecostofrelatedassets.
AftertheCompanymakestheabovepaymentsonaregularbasisinaccordancewiththestandardsstipulatedbythestateandtheannuityplan,itwillhavenootherpaymentobligations.
(3)Accountingtreatmentmethodfordismissalbenefits
Terminationbenefitsarecompensationspaidtoemployeesasaresultofthecompany'sdecisiontoterminatetheiremploymentbeforethecontractualretirementdateortoencouragevoluntaryresignation.Theliabilityforterminationbenefitsisrecognizedwhenthecompanycannotunilaterallywithdrawtheplantoterminateemploymentortheproposaltoencouragevoluntaryresignation,whicheverisearlier.Theliabilityisincludedinthecurrentprofitsandlosses.
Thecompanyprovidesearlyretirementbenefitstoemployeeswhoacceptinternalretirementarrangements.Earlyretirementbenefitsrefertowagespaidtoemployeeswhohavenotreachedthestatutoryretirementageandhavevoluntarilylefttheirpositionswiththeapprovalofthecompany'smanagement,aswellassocialinsurancecontributionspaidontheirbehalf.Fromthestartdateoftheinternalretirementarrangementuntiltheemployeereachesthenormalretirementage,thecompanypaysearlyretirementbenefitstotheearlyretiredemployees.Forearlyretirementbenefits,thecompanyaccountsfortheminthesamewayasseverancebenefits.Whentheconditionsforrecognizingseverancebenefitsaremet,thewagesandsocialinsurancecontributionsintendedtobepaidfromthedatetheemployeeceasestoprovideservicesuntilthenormalretirementdatearerecognizedasliabilitiesandchargedtocurrentprofitsandlossesinalumpsum.Differencesarisingfromchangesinactuarialassumptionsandadjustmentstobenefitstandardsforearlyretirementbenefitsarerecognizedincurrentprofitsandlosseswhenoccurred.
(4)Accountingtreatmentofotherlong-termemployeebenefits
Otherlong-termemployeebenefitsrefertoallemployeebenefitsotherthanshort-termsalaries,post-employmentbenefitsanddismissalbenefits.
Forotherlong-termemployeebenefitsmeetingtheconditionsofdefinedcontributionplans,thecompanyrecognizesthecontributionspayableasaliabilityduringtheaccountingperiodinwhichemployeesrenderservicesandincludestheminthecurrentprofitsandlossesorthecostofrelatedassets.Forotherlong-termemployeebenefitsnotmeetingtheseconditions,anindependentactuaryusestheprojectedunitcreditmethodateachbalancesheetdatetocalculatethebenefitobligationsattributabletotheperiodinwhichemployeesprovideservices,andtheseareincludedinthecurrentprofitsandlossesorthecostofrelatedassets.
34.Estimatedliabilities
1.Recognitioncriteriaforestimatedliabilities
Incasethatanobligationconnectedtocontingenciesmeetsallofthefollowingconditions,theCompanyrecognizestheobligationasaprovision:
TheobligationisapresentobligationoftheCompany;
Thefulfillmentoftheobligationislikelytoresultinanoutflowofeconomicbenefits;
Theamountoftheobligationcanbemeasuredreliably.
2.Measurementofestimatedliabilities
Thecompanymeasuresitsprovisionsbasedonthebestestimateoftheexpendituresrequiredtosettlethepresentobligations.
Whendeterminingthebestestimate,thecompanycomprehensivelyconsidersfactorsrelatedtocontingentitemssuchasrisk,uncertainty,andthetimevalueofmoney.Forsignificantimpactsofthetimevalueofmoney,thebestestimateisdeterminedbydiscountingtherelatedfuturecashoutflows.
Thebestestimateistreatedasfollows:
Iftherequiredexpenditurefallswithinacontinuousrange(orinterval)withequallikelihoodofvariousoutcomes,thebestestimateisdeterminedbytheaverageoftherange'supperandlowerlimits.
Ifthereisnocontinuousrange(orinterval)fortherequiredexpenditure,orthelikelihoodofvariousoutcomeswithintherangeisnotequal,suchasinthecaseofcontingentitemsinvolvingasingleproject,thebestestimateisdeterminedbythemostlikelyamount.Ifthecontingentitemsinvolvemultipleprojects,thebestestimateiscalculatedbasedonthevariouspossibleoutcomesandtheirassociatedprobabilities.
Ifthecompanyexpectstobereimbursedbyathirdpartyforallorpartoftheexpenditurerequiredtosettleaprovision,thereimbursementamountisrecognizedasanassetwhenitisvirtuallycertaintobereceived,andtherecognizedamountdoesnotexceedthecarryingamountoftheprovision.
35.Share-basedpayment
1.Typesofshare-basedpayments
Thecompany'sshare-basedpaymentsarecategorizedintoequity-settledandcash-settled.
2.Determinationmethodforthefairvalueofequityinstruments
Forgrantedoptionsandotherequityinstrumentswithanactivemarket,theirfairvalueisdeterminedbasedonquotedpricesintheactivemarket.Forgrantedoptionsandotherequityinstrumentswithoutanactivemarket,theirfairvalueisestimatedusingoptionpricingmodels,whichconsiderthefollowingfactors:(1)theexercisepriceoftheoption;
(2)Theoption'sterm;(3)Thecurrentpriceoftheunderlyingstock;(4)Theexpectedvolatilityofthestockprice;(5)Theexpecteddividendsoftheshares;(6)Therisk-freeinterestrateduringtheoption'sterm.
Whendeterminingthefairvalueofequityinstrumentsonthegrantdate,theimpactofmarketandnon-vestingconditionsasstipulatedintheshare-basedpaymentagreementisconsidered.Forshare-basedpaymentswithnon-vestingconditions,aslongastheemployeeorotherpartymeetsallnon-marketconditionsamongthevestingconditions(suchasserviceperiod),thecostcorrespondingtotheservicesreceivedisrecognized.
3.Basisforthebestestimateofvestingequityinstruments
Oneachbalancesheetdatewithinthewaitingperiod,thebestestimateofthenumberofequityinstrumentsexpectedtovestisrevisedbasedonsubsequentinformationsuchaschangesinthenumberofemployeeseligibleforvesting.Onthevestingdate,thefinalexpectednumberofequityinstrumentstovestmatchestheactualnumbervested.
4.Accountingtreatment
Forequity-settledshare-basedpayments,theyaremeasuredatthefairvalueoftheequityinstrumentsgrantedtoemployees.Ifimmediatelyexercisableupongrant,theyarerecognizedinrelatedcostsorexpensesatthegrantdate'sfairvalue,withacorrespondingincreaseincapitalreserve.Ifexercisableonlyaftercompletingtheserviceorachievingperformanceconditionswithinthevestingperiod,eachbalancesheetdateduringthevestingperiodwillreflectthebestestimateofthenumberofvestableequityinstruments.Thefairvalueonthegrantdateisusedtoallocatetheservicecostsobtainedinthecurrentperiodintorelatedcostsorexpensesandcapitalreserve.Post-vestingdate,noadjustmentsaremadetotherecognizedcostsorexpensesandtotalequity.
Forcash-settledshare-basedpayments,theyaremeasuredatthefairvalueoftheliabilitiescalculatedbasedontheCompany'ssharesorotherequityinstruments.Ifimmediatelyexercisableupongrant,theyarerecognizedinrelatedcostsorexpensesatthefairvalueoftheliabilitiesassumedatthegrantdate,withacorrespondingincreaseinliabilities.Ifexercisableonlyaftercompletingtheserviceorachievingperformanceconditionswithinthevestingperiod,eachbalancesheetdateduringthevestingperiodwillreflectthebestestimateoftheexercisablesituation.Thefairvalueoftheliabilitiesassumedisusedtoallocatetheservicecostsobtainedinthecurrentperiodintocostsorexpensesandcorrespondingliabilities.Oneachbalancesheetdateandsettlementdatebeforethesettlementofrelevantliabilities,thefairvalueofliabilitiesshallbere-measured,andthechangesshallbeincludedinthecurrentprofitsandlosses.Ifthegrantedequityinstrumentsarecancelledwithinthevestingperiod,theCompanytreatsthecancellationasacceleratedvesting,recognizingtheremainingamounttoberecognizedinthevestingperiodimmediatelyincurrentprofitsandlosses,andsimultaneouslyincreasingcapitalreserves.Ifemployeesorotherpartieshavetheoptiontomeetnon-vestingconditionsbutfailtomeetthemwithinthevestingperiod,theCompanytreatsitasacancellationofthegrantedequityinstruments.
36.Otherfinancialinstrumentslikepreferredsharesandperpetualbonds
Notapplicable
37.Revenue
Disclosureofaccountingpoliciesadoptedforrecognitionandmeasurementofrevenuebybusinesstype
TheCompany'srevenuemainlycomesfromthefollowingbusinesstypes:
(1)Watchsalesbusiness
(2)Precisionmanufacturingbusiness
(3)Propertyleasingbusiness
1.GeneralprinciplesofrevenuerecognitionRevenueisrecognizedatthetransactionpriceallocatedtotheperformanceobligationwhentheCompanyfulfillsitsperformanceobligationsunderacontractbytransferringcontrolofgoodsorservicestothecustomer.
PerformanceobligationreferstothecommitmentinthecontractthattheCompanycantransfertothecustomerthegoodsorservicesthatcanbeclearlydistinguished.
Controlovertherelevantgoodsistransferredwhenthecustomercandirecttheuseofandobtainsubstantiallyalltheremainingbenefitsfromthegoodsorservices.
Onthecontractcommencementdate,theCompanyassessesthecontracttoidentifyeachdistinctperformanceobligationanddetermineswhethereachobligationissatisfiedovertimeoratapointintime.Ifoneofthefollowingconditionsismet,itisconsideredthattheperformanceobligationisfulfilledoveraperiodoftime,andtheCompanyrecognizesrevenuebasedontheprogressofperformanceovertime:(1)Thecustomersimultaneouslyreceivesandconsumestheeconomicbenefitsasthecompanyperforms;(2)Thecustomercontrolsthegoodsinprogressasthecompanyperforms;(3)Thegoodsproducedbythecompany'sperformancehavenoalternativeuse,andthecompanyhastherighttopaymentfortheperformancecompletedtodatethroughoutthecontractperiod.Otherwise,theCompanyrecognizesrevenueatthepointintimewhenthecustomerobtainscontroloftherelevantgoodsorservices.
Forperformanceobligationsfulfilledoveraperiodoftime,theCompanydeterminestheappropriateprogressofperformancebasedonthenatureofgoodsandservicesusingtheinputmethod.Theoutputmethoddeterminestheprogressofperformancebasedonthevalueofgoodstransferredtothecustomer(theinputmethoddeterminestheprogressofperformancebasedonthecompany'sinputstofulfilltheperformanceobligation).Wheretheprogressofperformancecannotbereasonablydetermined,ifthecostsincurredbytheCompanyareexpectedtobecompensated,revenueshallberecognizedaccordingtotheamountofcostsincurreduntiltheprogressofperformancecanbereasonablydetermined.
2.Specificmethodsofrevenuerecognition
Thecompanyhasthreemainbusinesssegments:watchsales,precisionmanufacturing,andpropertyleasing.AccordingtotheCompany'sownbusinessmodelandsettlementmethod,thespecificmethodsforrecognizingsalesrevenueofvariousbusinessesaredisclosedasfollows:
(1)Watchsalesbusiness
TheCompany'swatchsalesbusinessisaperformanceobligationperformedatacertainpointintime.
①Onlinesales
Revenueisrecognizedwhentheproductsaredelivered,signedforbythecustomer,andpaymenthasbeenreceivedbytheplatform.
②Offlinesales
Revenueisrecognizedwhentheproductisdeliveredtothecustomerandacceptedbythecustomer,thepricehasbeenreceivedortherighttoreceivethepaymenthasbeenobtained,andtherelevanteconomicbenefitsarelikelytoflowin.
③Commissionedsales
Underthecommissionedsalesmodel,theCompanyrecognizesrevenuewhenitreceivesthesaleslistfromthecommissionedsellerandconfirmsthatthecontroloverthegoodshasbeentransferredtothepurchaser.
④Consignment-in
Undertheconsignment-inmodel,whentheCompanydeliverstheexternalconsignmentproductstothecustomerandconfirmsthatthecontrolofthegoodshasbeentransferredtothebuyer,therevenueisrecognizedbynetmethod.
(2)Precisionmanufacturingbusiness
TheCompany'sprecisionmanufacturingandsalesbusinessfulfillstheperformanceobligationsatapointintime.Domesticsalesrevenueisrecognizedwhenthecompanydeliverstheproducttothecontractuallyagreeddeliverylocation,theproductsareacceptedbythecustomer,paymenthasbeenreceivedortherighttoreceivepaymenthasbeenobtained,andtherelatedeconomicbenefitsarelikelytoflowin.Exportsalesrevenueisrecognizedwhenthecompanyhasdeclaredtheproductsforexportaccordingtothecontract,obtainedtheBillofLading,receivedthepaymentorobtainedtherighttoreceivepayment,andtherelatedeconomicbenefitsarelikelytoflowin.
(3)Propertyleasingbusiness
Fordetailsofspecificaccountingpolicies,pleaserefertoNoteV.41AccountingtreatmentoftheCompanyasalessor.
3.Revenuetreatmentprinciplesforspecifictransactions
(1)Contractswithsalesreturnclauses
Revenueisrecognizedattheamountexpectedtobeentitledfromthetransferofgoodstothecustomerwhenthecustomerobtainscontroloftherelevantgoods(i.e.,excludingtheamountexpectedtoberefundedduetosalesreturns).Aliabilityisrecognizedfortheamountexpectedtoberefundedduetosalesreturns.
Thecarryingamountofgoodsexpectedtobereturned,lesstheestimatedcoststorecoversuchgoods(includinganyimpairmentofthereturnedgoods),isaccountedforundertheitem"refundassets."
(2)Contractswithqualityassuranceclauses
Evaluatewhetherthequalityassuranceprovidesaseparateserviceinadditiontoassuringthecustomerthatthegoodssoldmeettheestablishedstandards.IftheCompanyprovidesadditionalservices,itshallbetreatedasasingleperformanceobligationandsubjecttoaccountingtreatmentinaccordancewiththeprovisionsoftherevenuestandards;Otherwise,thequalityassuranceresponsibilityshallbesubjecttoaccountingtreatmentinaccordancewiththeprovisionsoftheaccountingstandardsforcontingencies.DifferentrevenuerecognitionandmeasurementmethodsinvolvedindifferentbusinessmodelsadoptedbythesametypeofbusinessNotapplicable
38.Contractcosts
1.Contractperformancecosts
Thecostsincurredbythecompanyfortheperformanceofacontract,whichdonotfallwithinthescopeofotheraccountingstandardsoutsideofrevenuestandardsandmeetthefollowingconditions,arerecognizedasanasset:
(1)Thecostsaredirectlyrelatedtoacurrentorexpectedcontract,includingdirectlabor,directmaterials,manufacturingoverhead(orsimilarcosts),costsexplicitlybornebythecustomer,andothercostsincurredsolelyduetothecontract;
(2)Thecoststhatincreasetheresourcesoftheenterpriseforfutureperformanceobligations;
(3)Thecoststhatareexpectedtoberecoverable.
Theseassetsareclassifiedasinventoryorothernon-currentassetsbasedonwhethertheiramortizationperiodexceedsanormaloperatingcyclefromthetimeofinitialrecognition.
2.Contractacquisitioncosts
Theincrementalcostsincurredbythecompanytoobtainacontractthatareexpectedtoberecoverablearerecognizedasanasset.Incrementalcostsrefertocoststhatwouldnothavebeenincurredifthecontracthadnotbeenobtained,suchassalescommissions.Foramortizationperiodsnotexceedingoneyear,thesecostsarerecognizedinthecurrentprofitsandlossesuponoccurrence.
3.AmortizationofcontractcostsAssetsrelatedtocontractcostsareamortizedonthesamebasisastherevenuerecognitionfortheassociatedgoodsorservices.Theyareamortizedatthepointintimeoraccordingtotheprogressoftheperformanceobligations,andrecognizedinthecurrentprofitsandlosses.
4.ImpairmentofContractCostsForassetsrelatedtocontractcosts,ifthecarryingamountexceedsthedifferencebetweentheexpectedconsiderationreceivablefromtransferringthegoodsrelatedtotheassetandtheestimatedcoststotransferthosegoods,animpairmentprovisionshouldberecognizedfortheexcessandrecordedasanassetimpairmentloss.Aftertheimpairmentlossisprovidedfor,ifthereisachangeinthefactorsthatcausedtheimpairmentinpreviousperiods,resultingintheabovedifferenceexceedingthecarryingamountoftheasset,thepreviouslyprovidedimpairmentlossisreversedandrecognizedinthecurrentprofitsandlosses.However,thecarryingamountoftheassetafterreversalshouldnotexceedthecarryingamountonthereversaldateassumingnoimpairmentlosshadbeenprovided.
39.Governmentsubsidies
1.TypeGovernmentgrantsaremonetaryandnon-monetaryassetsobtainedbythecompanyfromthegovernmentwithoutcompensation.Basedonthebeneficiaryspecifiedintherelevantgovernmentdocuments,governmentgrantsareclassifiedintoasset-relatedandincome-relatedgovernmentgrants.GovernmentsubsidiesrelatedtoassetsrefertogovernmentsubsidiesobtainedbytheCompanyforthepurchase,construction,orotherformsoflong-termassetsofgovernmentsubsidies.Governmentsubsidiesrelatedtoincomerefertogovernmentsubsidiesotherthangovernmentsubsidiesrelatedtoassets.
2.RecognitionofgovernmentsubsidiesGovernmentgrantsarerecognizedatthereceivableamountattheendoftheperiodifthereisevidencethatthecompanymeetstherelevantconditionsofthefinancialsupportpolicyandexpectstoreceivethefinancialsupportfunds.Otherwise,governmentgrantsarerecognizedwhenactuallyreceived.Governmentgrantsintheformofmonetaryassetsaremeasuredattheamountreceivedorreceivable.Non-monetarygovernmentgrantsaremeasuredatfairvalue;Iffairvaluecannotbereliablydetermined,theyaremeasuredatthenominalamount(RMB1).Governmentgrantsmeasuredatanominalamountaredirectlyincludedinthecurrentprofitsandlosses.
3.Accountingtreatmentmethod
Basedontheeconomicsubstanceofthetransactions,theCompanydetermineswhethertousethegrossmethodornetmethodforaccountingtreatmentofacertaintypeofgovernmentgranttransaction.Usually,theCompanyusesonlyonemethodforsimilarorrelatedgovernmentgranttransactionsandconsistentlyappliesthatmethodtothetransactions.Forasset-relatedgovernmentgrants,thegrantsareeitherdeductedfromthecarryingamountoftherelatedassetorrecognizedasdeferredincome.Asset-relatedgovernmentgrantsrecognizedasdeferredincomearesystematicallyrecognizedinprofitsandlossesovertheusefullifeoftheconstructedorpurchasedassetusingareasonableandsystematicmethod.
Forincome-relatedgovernmentgrants,thoseusedtocompensateforrelatedexpensesorlossesincurredbythecompanyinsubsequentperiodsarerecognizedasdeferredincomeandincludedinprofitorlossordeductedfromrelatedcostsintheperiodwhentherelatedexpensesorlossesarerecognized;Thoseusedtocompensateforrelated
expensesorlossesalreadyincurredbythecompanyaredirectlyincludedinprofitorlossordeductedfromrelatedcostswhenreceived.Governmentgrantsrelatedtotheentity'sroutineactivitiesarerecognizedasotherincomeordeductedfromrelatedcostexpenses;Governmentgrantsnotrelatedtotheentity'sroutineactivitiesarerecognizedasnon-operatingincomeandexpenses.
Governmentgrantsreceivedforinterestsubsidiesonpolicy-basedpreferentialloansareusedtooffsetrelatedborrowingcosts;Forpolicy-basedpreferentialinterestrateloansprovidedbylendingbanks,theactualloanamountreceivedistakenastheborrowing'sbookvalue,andtherelevantborrowingcostsarecalculatedbasedontheloanprincipalandthepolicy-basedpreferentialinterestrate.
Whenpreviouslyrecognizedgovernmentgrantsneedtobereturned,iftheywereinitiallydeductedfromthecarryingamountofrelatedassets,theassetcarryingamountshallbeadjusted;Ifthereisabalanceofrelateddeferredincome,thebalanceofdeferredincomeisreduced,andtheexcessisincludedinthecurrentprofitsandlosses;Ifthereisnorelateddeferredincome,theamountisdirectlyincludedinthecurrentprofitsandlosses.
40.Deferredtaxassetsanddeferredtaxliabilities
Deferredtaxassetsandliabilitiesarerecognizedbasedonthedifferencesbetweenthetaxbasesofassetsandliabilitiesandtheircarryingamounts(temporarydifferences).Onthebalancesheetdate,thedeferredincometaxassetsanddeferredincometaxliabilitiesshallbemeasuredaccordingtothetaxrateapplicabletotheperiodduringwhichtheassetsareexpectedtoberecoveredortheliabilitiesareexpectedtobepaidoff.
1.Recognitionbasisofdeferredtaxassets
Deferredtaxassetsarisingfromdeductibletemporarydifferencesthatarerecognizedtotheextentthattaxableincomewillbeprobabletobeavailableagainstthedeductibletemporarydifference,deductiblelossesandtaxcreditsthatcanbecarriedforwardtosubsequentperiods.However,thedeferredtaxassetsarisingfromtheinitialrecognitionofassetsorliabilitiesinatransactionwiththefollowingcharacteristicsatthesametimeshallnotberecognized:(1)Thetransactionisnotabusinesscombination;(2)Thetransactionaffectsneithertheaccountingprofitnorthetaxableincomeordeductibleloss.
Fordeductibletemporarydifferencesrelatedtoinvestmentsinassociates,thecorrespondingdeferredtaxassetsarerecognizedwhenallthefollowingconditionsaremet:thetemporarydifferencemaybereversedintheforeseeablefuture,andtaxableincomewillbeavailableagainstwhichthedeductibletemporarydifferencescanbeused.
2.Recognitionbasisofdeferredincometaxliabilities
Thecompanyrecognizesthetaxabletemporarydifferencespayablebutnotpaidinthecurrentperiodandpriorperiodsasdeferredincometaxliabilities.Butexcluding:
(1)Temporarydifferencesarisingfromtheinitialrecognitionofgoodwill;
(2)Transactionsoreventsthatarenotformedbybusinesscombination,andtheoccurrenceofsuchtransactionsoreventsaffectsneithertheaccountingprofitnorthetemporarydifferencesformedbythetaxableincome(ordeductiblelosses);
(3)Fortaxabletemporarydifferencesrelatedtoinvestmentsinsubsidiariesandassociates,thetimeoftheirreversalcanbecontrolledandtheyarenotlikelytobereversedintheforeseeablefuture.
3.Deferredtaxassetsandliabilitiesarepresentedasanetamountwhenthefollowingconditionsaremetsimultaneously:
(1)Theenterprisehasthelegalrighttooffsetcurrenttaxassetsagainstcurrenttaxliabilitiesonanetbasis;
(2)Thedeferredtaxassetsandliabilitiesarerelatedtoincometaxesleviedbythesametaxationauthorityonthesametaxableentityordifferenttaxableentities,andforeachsignificantperiodinwhichthedeferredtaxassetsandliabilitiesreverse,theinvolvedtaxableentitiesintendtosettlecurrenttaxassetsandliabilitiesonanetbasisorrealizetheassetsandsettletheliabilitiessimultaneously.
41.Leasing
(1)Accountingtreatmentmethodofleasingasalessee
Atthecommencementdateofthelease,exceptforshort-termleasesandleasesoflow-valueassetssubjecttosimplifiedtreatment,thecompanyrecognizesright-of-useassetsandleaseliabilities.
Short-termleasesandleasesoflow-valueassets
Short-termleasesarethosewithoutapurchaseoptionandwithaleasetermofnotmorethan12months.Leasesoflow-valueassetsrefertoleaseswheretheleasedasset,ifnew,isoflowvalue.
Thecompanydoesnotrecognizeright-of-useassetsandleaseliabilitiesforshort-termleasesandleasesoflow-valueassets;instead,relatedleasepaymentsarerecognizedonastraight-linemethodorothersystematicandreasonablemethodsovertheleasetermaspartofthecostoftherelatedassetsorascurrentperiodprofitorloss.
(2)Accountingtreatmentmethodofleasingasalessor
(1)Classificationofleases
Thecompanyclassifiesleasesasfinanceleasesoroperatingleasesonthecommencementdateofthelease.Financeleasereferstoaleasethatsubstantiallytransfersallrisksandrewardsrelatedtoownershipoftheleasedasset,whereownershipmayormaynotultimatelybetransferred.Operatingleasereferstoallotherleasesthatarenotfinanceleases.
Aleaseistypicallyclassifiedasafinanceleasebyourcompanyifoneormoreofthefollowingconditionsexist:
1)Ownershipoftheleasedassetistransferredtothelesseeattheendoftheleaseterm;
2)Thelesseehastheoptiontopurchasetheleasedassetatapricesufficientlylowerthanitsfairvalueatthetimetheoptionisexpectedtobeexercised,makingitreasonablycertainthatthelesseewillexercisetheoptionattheleasecommencementdate;
3)Althoughownershipisnottransferred,theleasetermcoversamajorpartoftheusefullifeoftheasset;
4)Attheinceptionofthelease,thepresentvalueoftheleasereceiptsisnearlythefairvalueoftheleasedasset;
5)Theleasedassetisofsuchaspecializednaturethatonlythelesseecanuseitwithoutmajormodifications.
Aleasemayalsobeclassifiedasafinanceleasebyourcompanyifitexhibitsoneormoreofthefollowingindicators:
1)Ifthelesseecancelsthelease,thelesseebearsthelossesassociatedwiththecancellationforthelessor;
2)Gainsorlossesarisingfromfluctuationsinthefairvalueoftheresidualvalueofassetsareattributedtothelessee.
3)Thelesseehastheabilitytocontinueleasingatarentsignificantlybelowmarketlevelforthenextperiod.
(2)Accountingtreatmentforfinanceleases
Ontheleasecommencementdate,theCompanyrecognizesthefinanceleasereceivablesforthefinanceleaseandterminatestherecognitionofthefinanceleaseassets.
Attheinitialrecognitionoffinanceleasereceivables,theunguaranteedresidualvalueandthepresentvalueofleasereceiptsnotreceivedonthecommencementdateofleaseterm,discountedattheinterestrateimplicitinthelease,aresummedtodeterminetheentryvalueofthefinanceleasereceivables.Leasereceiptsinclude:
1)Fixedpaymentsandsubstantiallyfixedpaymentsafterdeductingleaseincentives;
2)Variableleasepaymentsthatdependonanindexorrate;
3)Incaseswhereitisreasonablycertainthatthelesseewillexercisethepurchaseoption,leasereceiptsincludetheexercisepriceofthepurchaseoption;
4)Iftheleasetermreflectsthatthelesseeisexpectedtoexercisetheterminationoption,leasereceiptsincludetheamountpayablebythelesseeuponexercisingtheterminationoption;
5)Guaranteedresidualvalueprovidedtothelessorbythelessee,partiesrelatedtothelessee,andindependentthirdpartieswiththefinancialcapacitytofulfilltheguaranteeobligations.
Thecompanycalculatesandrecognizesinterestincomeforeachperiodwithintheleasetermbasedonafixedimplicitleaserate.Variableleasepaymentsnotincludedinthenetinvestmentintheleasearerecognizedinthecurrentperiod'sprofitorlosswhentheyoccur.
(3)Accountingtreatmentforoperatingleases
Thecompanyrecognizesleasereceiptsfromoperatingleasesasrentalincomeovertheleasetermusingthestraight-linemethodoranothersystematicandrationalmethod;Initialdirectcostsassociatedwithoperatingleasesarecapitalizedandamortizedovertheleasetermonthesamebasisasrentalincomerecognitionandareincludedinthecurrentperiod'sprofitorloss;Variableleasepaymentsrelatedtooperatingleasesthatarenotincludedinleasereceiptsarerecognizedinthecurrentperiod'sprofitorlosswhentheyoccur.
42.Othersignificantaccountingpoliciesandaccountingestimates
Notapplicable
43.Changesinsignificantaccountingpoliciesandestimates
(1)ChangesinsignificantaccountingpoliciesNotapplicable
(2)ChangesinsignificantaccountingestimatesNotapplicable
(3)Adjustmentofitemsrelatedtothefinancialstatementsatthebeginningoftheyearwhenthenewaccountingstandardsareimplementedforthefirsttimesince2024Notapplicable
44.OthersNotapplicableVI.Taxes
1.Maintaxesandtaxrates
| TaxType | TaxBasis | Taxrates |
| VAT | Domesticsalesandprovisionofprocessing,repairsandreplacementservices | 13% |
| Realestateleasingservices | 9% | |
| Othertaxablesalesofservices | 6% | |
| Simpletaxmethod | 5% | |
| Consumptiontax | High-endwatches | 20% |
| Urbanmaintenanceandconstructiontax | Paid-inturnovertax | 7%、5% |
| Enterpriseincometax | Taxableincome | Seethetablebelowfordetails |
| Propertytax | Taxbasis:70%or80%oftheoriginalvalueofthehouseproperty | 1.2%、12% |
Disclosureofinformationabouttaxpayerswithdifferententerpriseincometaxrates
| Nameoftaxpayer | Incometaxrate |
| ShenzhenHarmonyWorldWatchCentreCo.,Ltd.(①) | 25% |
| FIYTASalesCo.,Ltd.(①) | 25% |
| ShenzhenFIYTAPrecisionTechnologyCo.,Ltd.(②) | 15% |
| ShenzhenFIYTASTDCo.,Ltd.(②) | 15% |
| ShenzhenHarmonyWorldWatchCentreCo.,Ltd.(⑤) | 20% |
| ShenzhenXunhangPrecisionTechnologyCo.,Ltd. | 25% |
| EmileChourietHorologe(Shenzhen)Co.,Ltd. | 25% |
| LiaoningHengdaruiCommerceandTradeCo.,Ltd. | 25% |
| Temporal(Shenzhen)Co.,Ltd. | 25% |
| ShenzhenHarmonyE-commerceCo.,Ltd.(⑤) | 20% |
| FIYTA(HONGKONG)LIMITED(③) | 16.5% |
| MontresChourietSA（④） | 30% |
Note①:Accordingtotherelevantprovisionsofthe"InterimMeasuresfortheAdministrationofEnterpriseIncomeTaxCollectionforEnterpriseswithTrans-regionalOperationsandConsolidatedTaxPayments"issuedbytheStateAdministrationofTaxation,theheadquartersanditssubordinatebranchesofsuchcompaniesimplementaconsolidatedtaxpaymentmethodforenterpriseincometax.Thismethodinvolves"unifiedcalculation,hierarchicalmanagement,localprepayment,consolidatedsettlement,andfiscaltransferofaccounts."50%oftheprepaymentissharedamongbranches,and50%issharedbytheheadoffice;
Note②:Thesecompaniesenjoythe"taxratereductionandexemptionforhigh-techenterprisesthatneedkeysupportfromthestate";
Note③:theCompany'sregisteredlocationisHongKong,andthelocalprofitstaxinHongKongisapplicable,andtheapplicabletaxrateforthisyearis16.50%;
Note④:theCompanyisregisteredinSwitzerland.Accordingtotheapplicabletaxrateinregistrationlocation,thecomprehensivetaxrateforthisyearis30%;
Notes⑤:thesecompaniesaresmalllow-profitenterprisesandaresubjecttoenterpriseincometaxatarateof20%.
2.Taxpreference
Accordingtothe"AnnouncementonPreferentialIncomeTaxPoliciesforSmallandMicroEnterprisesandIndividualBusinesses"(CS[2023]No.6)issuedbytheMinistryofFinanceandtheStateAdministrationofTaxation,smallandmicro-profitenterprisesincludeonly25%oftheirtaxableincomeandpayenterpriseincometaxatarateof20%.Accordingtothe"NoticeonExtendingtheLossCarryForwardPeriodforHigh-TechEnterprisesandTechnology-BasedSmallandMedium-SizedEnterprises"(CS[2018]No.76)issuedbytheMinistryofFinanceandthe
StateAdministrationofTaxation,startingfromJanuary1,2018,lossesincurredinthefivefiscalyearspriortoobtaininghigh-techenterprisequalificationthathavenotyetbeenoffsetareallowedtobecarriedforwardtosubsequentyearsforoffsetting,withthemaximumcarryforwardperiodextendedfrom5yearsto10years.Accordingtothe"AnnouncementonFurtherImprovingthePolicyofPre-taxAdditionalDeductionofR&DExpenses"(CS[2023]No.7)issuedbytheMinistryofFinanceandtheStateAdministrationofTaxation,startingfromJanuary1,2023,enterprises'actualR&DexpensesincurredinconductingR&Dactivities,whicharenotconvertedintointangibleassetsandareincludedinthecurrentprofitandloss,canbeadditionallydeductedat100%oftheactualamountincurredontopoftheactualdeductionasperregulations.Whereintangibleassetsareformed,theyshallbeamortizedbeforetaxat200%ofthecostofintangibleassetsasofJanuary1,2023.
Since2019,HongKongimplementedatwo-tieredprofitstaxregime,wherebytheprofitstaxrateforthefirstHKD2,000,000ofprofitsearnedbyHongKongcompaniesisreducedto8.25%,andtheremainingprofitsaretaxedatthestandardrateof16.5%.
3.Others
Notapplicable
7.Notestoitemsintheconsolidatedfinancialstatements
1.Monetaryfunds
Unit:RMB
| Item | EndingBalance | Openingbalance |
| Cashonhand | 107,494.56 | 178,996.87 |
| Cashinbank | 21,352,343.64 | 35,443,378.12 |
| Othermonetaryfunds | 2,109,236.20 | 1,262,979.96 |
| Depositinfinancecompanies | 380,786,934.73 | 467,743,798.76 |
| Total | 404,356,009.13 | 504,629,153.71 |
| Including:totalamountdepositedabroad | 1,951,883.15 | 1,202,601.86 |
Othernotes
ThedepositsinfinancecompaniesweremainlythedepositsinAVICFinanceCo.,Ltd.
AsofJune30,2024,theCompanyhadnopledgedorfrozenfunds.DetailsoftheCompany'sfundsplacedoverseaswithrestrictionsonfundrepatriationareasfollows:
| Item | EndingBalance | Openingbalance |
| Fundsplacedoverseaswithrestrictionsonfundrepatriation | 1,951,883.15 | 1,202,601.86 |
2.Tradingfinancialassets
Notapplicable
3.DerivativefinancialassetsNotapplicable
4.Notesreceivable
(1)Classifiedpresentationofnotesreceivable
Unit:RMB
| Item | EndingBalance | Openingbalance |
| Bankacceptancenote | 7,483,190.50 | 10,363,449.00 |
| Commercialacceptancenote | 8,855,201.81 | 7,905,523.37 |
| Total | 16,338,392.31 | 18,268,972.37 |
(2).Disclosureunderthemethodsofprovisionforbaddebtsbycategory
Unit:RMB
| Category | EndingBalance | Openingbalance | ||||||||
| Bookbalance | Baddebtprovision | Bookvalue | Bookbalance | Baddebtprovision | Bookvalue | |||||
| Amount | Scale | Amount | Drawingpercentages | Amount | Scale | Amount | Drawingpercentages | |||
| Inwhich: | ||||||||||
| Notesreceivablewithprovisionforbaddebtsbycombination | 16,654,813.30 | 100.00% | 316,420.99 | 1.90% | 16,338,392.31 | 18,685,052.55 | 100.00% | 416,080.18 | 2.23% | 18,268,972.37 |
| Inwhich: | ||||||||||
| Commercialacceptancedraftcombination | 9,171,622.80 | 55.07% | 316,420.99 | 3.45% | 8,855,201.81 | 8,321,603.55 | 44.54% | 416,080.18 | 5.00% | 7,905,523.37 |
| Risk-freebankacceptancedraftcombination | 7,483,190.50 | 44.93% | 0.00% | 7,483,190.50 | 10,363,449.00 | 55.46% | 0.00% | 10,363,449.00 | ||
| Total | 16,654,813.30 | 100.00% | 316,420.99 | 1.90% | 16,338,392.31 | 18,685,052.55 | 100.00% | 416,080.18 | 2.23% | 18,268,972.37 |
Nameofprovisionwithprovisionforbaddebtsbycombination:commercialacceptancebillcombination
Unit:RMB
| Name | EndingBalance | ||
| Bookbalance | Baddebtprovision | Drawingpercentages | |
| Commercialacceptancedraftcombination | 9,171,622.80 | 316,420.99 | 3.45% |
| Total | 9,171,622.80 | 316,420.99 | |
Descriptionofthebasisfordeterminingthecombination:
Accountsreceivablewiththesameaginghavesimilarcreditriskcharacteristics.Catalognamewithprovisionforbaddebtsbycombination:non-riskbankacceptancebillcombination
Unit:RMB
| Name | EndingBalance | ||
| Bookbalance | Baddebtprovision | Drawingpercentages | |
| Risk-freebankacceptancedraftcombination | 7,483,190.50 | 0.00% | |
| Total | 7,483,190.50 | ||
Descriptionofthebasisfordeterminingthecombination:
Thedrawerhasahighcreditrating,andhasnobilldefaultinhistory,sotheriskofcreditlossisextremelylow,andalsohasastrongabilitytofulfilltheobligationtopaythecashflowofthecontractinashortperiodoftime.Iftheprovisionforbaddebtsofnotesreceivableismadeaccordingtothegeneralexpectedcreditlossmodel:
Notapplicable
(3)Statusofbaddebtprovision,recovery,orreversalfortheperiod
Provisionforbaddebtsinthecurrentperiod:
Unit:RMB
| Category | Openingbalance | Amountofchangefortheperiod | EndingBalance | |||
| Provision | Recoveredortransferred | Write-off | Other | |||
| Notesreceivablewithprovisionforbaddebtsbyindividual | ||||||
| Notesreceivablewithprovisionforbaddebtsbycombination | ||||||
| Including:commercialacceptancebillcombination | 416,080.18 | 99,659.19 | 316,420.99 | |||
| Risk-freebankacceptancedraftcombination | ||||||
| Total | 416,080.18 | 99,659.19 | 316,420.99 |
WhereaccountsreceivablewithsignificantfromprovisionforbaddebtsorrecoveredinthecurrentperiodNotapplicable
(4)NotesreceivablepledgedbytheCompanyattheendoftheperiodNotapplicable
(5)Receivablesnotesordiscountedatperiod-endnotyetdueontheCompany'sbalancesheetdate
Unit:RMB
| Item | Terminationconfirmationamountatperiod-end | Unconfirmedamountatperiod-end |
| Bankacceptancenote | 24,056,305.26 | 0.00 |
| Total | 24,056,305.26 | 0.00 |
(6).Situationofnotesreceivableactuallywrittenoffinthecurrentperiod
Notapplicable
5.Accountsreceivable
1.Disclosurebyaging
Unit:RMB
| Aging | Bookbalanceatperiodend | Beginningbookbalance |
| Within1year(including1year) | 363,748,311.83 | 333,204,160.07 |
| 1-2years | 3,035,192.98 | 2,123,874.00 |
| 2-3years | 1,519,611.03 | 4,200,458.08 |
| Morethan3years | 19,089,043.69 | 18,005,255.95 |
| 3-4years | 19,089,043.69 | 18,005,255.95 |
| Total | 387,392,159.53 | 357,533,748.10 |
(2).Disclosureunderthemethodsofprovisionforbaddebtsbycategory
Unit:RMB
| Category | EndingBalance | Openingbalance | ||||||||
| Bookbalance | Baddebtprovision | Bookvalue | Bookbalance | Baddebtprovision | Bookvalue | |||||
| Amount | Scale | Amount | Drawingpercentages | Amount | Scale | Amount | Drawingpercentages | |||
| Accountsreceivablewithprovisio | 20,141,411.68 | 5.20% | 19,908,405.24 | 98.84% | 233,006.44 | 24,708,541.73 | 6.91% | 23,148,792.25 | 93.69% | 1,559,749.48 |
| nforbaddebtsbyindividual | ||||||||||
| Inwhich: | ||||||||||
| Accountsreceivablewithprovisionforbaddebtsbycombination | 367,250,747.85 | 94.80% | 12,000,288.48 | 3.27% | 355,250,459.37 | 332,825,206.37 | 93.09% | 11,242,194.21 | 3.38% | 321,583,012.16 |
| Inwhich: | ||||||||||
| Combinationofothercustomers'receivables | 367,250,747.85 | 94.80% | 12,000,288.48 | 3.27% | 355,250,459.37 | 332,825,206.37 | 93.09% | 11,242,194.21 | 3.38% | 321,583,012.16 |
| Total | 387,392,159.53 | 100.00% | 31,908,693.72 | 8.24% | 355,483,465.81 | 357,533,748.10 | 100.00% | 34,390,986.46 | 9.62% | 323,142,761.64 |
Categorynameofprovisionforbaddebtsbyindividual:accountsreceivablefromothercustomers
Unit:RMB
| Name | Openingbalance | EndingBalance | ||||
| Bookbalance | Baddebtprovision | Bookbalance | Baddebtprovision | Drawingpercentages | ProvisionReason | |
| Receivablesfromothercustomers | 24,708,541.73 | 23,148,792.25 | 20,141,411.68 | 19,908,405.24 | 98.84% | Lesslikelytobewithdrawn |
| Total | 24,708,541.73 | 23,148,792.25 | 20,141,411.68 | 19,908,405.24 | ||
Categorynameofprovisionforbaddebtsbycombination:accountsreceivablefromothercustomers
Unit:RMB
| Name | EndingBalance | ||
| Bookbalance | Baddebtprovision | Drawingpercentages | |
| Receivablesfromothercustomers | 367,250,747.85 | 12,000,288.48 | 3.27% |
| Total | 367,250,747.85 | 12,000,288.48 | |
Descriptionofthebasisfordeterminingthecombination:
Accountsreceivablewiththesamecombinationhavesimilarcreditriskcharacteristics.Iftheprovisionforbaddebtsofaccountsreceivableismadeaccordingtothegeneralexpectedcreditlossmodel:
Notapplicable
(3)Statusofbaddebtprovision,recovery,orreversalfortheperiod
Provisionforbaddebtsinthecurrentperiod:
Unit:RMB
| Category | Openingbalance | Amountofchangefortheperiod | EndingBalance | |||
| Provision | Recoveredortransferred | Write-off | Other | |||
| Accountsreceivablewithprovisionforexpectedcreditlossesbyindividual | 23,148,792.25 | 3,253,930.73 | -13,543.72 | 19,908,405.24 | ||
| Accountsreceivablewithprovisionforexpectedcreditlossesbycombination | 11,242,194.21 | 822,060.56 | 54,756.65 | 9,209.64 | 12,000,288.48 | |
| Total | 34,390,986.46 | 822,060.56 | 3,308,687.38 | -4,334.08 | 31,908,693.72 | |
Whereaccountsreceivablewithsignificantfromprovisionforbaddebtsorrecoveredinthecurrentperiod
Unit:RMB
| Companyname | Recoveredorreversedamount | Reasonforreversal | Recoverymethod | Determinethebasisandrationalityoftheoriginalprovisionforbaddebts |
| ShijiazhuangYuhuaSuning.comCommercialManagementCo.,Ltd. | 358,855.97 | Paymenthasbeenreceivednormally | Bankcollection | Provisionbasedontheestimatedrecoverableamount |
| NanjingJianyeSuningYigouPlazaCommercialManagementCo.,Ltd. | 776,062.11 | Paymenthasbeenreceivednormally | Bankcollection | Provisionbasedontheestimatedrecoverableamount |
| BaotouGalaxySuningYigouPlazaCo.,Ltd. | 504,733.73 | Paymenthasbeenreceivednormally | Bankcollection | Provisionbasedontheestimatedrecoverableamount |
| YinchuanSuning.comPlazaCo.,Ltd. | 636,843.63 | Paymenthasbeenreceivednormally | Bankcollection | Provisionbasedontheestimatedrecoverableamount |
| ShanghaiPudongSuning.comCommercialManagementCo.,Ltd. | 818,227.34 | Paymenthasbeenreceivednormally | Bankcollection | Provisionbasedontheestimatedrecoverableamount |
| Total | 3,094,722.78 |
(4).SituationofaccountsreceivableactuallywrittenoffinthecurrentperiodNotapplicable
(5)Accountsreceivableandcontractualassetscollectedfromthedebtorswhichrankthefirstfiveattheendofperiod
Unit:RMB
| Companyname | Accountsreceivablebalanceattheendofperiod | Endingbalanceofcontractualassets | Endingbalanceofaccountsreceivableandcontractualassets | Proportioninthetotalendingbalanceofaccountsreceivableandcontractualassets | Endingbalanceofprovisionforbaddebtsofaccountsreceivableandprovisionforimpairmentofcontractualassets |
| Summaryofaccountsreceivablewhichranksthefirstfiveattheendofperiod | 81,395,716.91 | 387,392,159.53 | 21.01% | 3,973,834.24 | |
| Total | 81,395,716.91 | 387,392,159.53 | 21.01% | 3,973,834.24 |
6.Contractassets
Notapplicable
7.ReceivablesfinancingNotapplicable
8.Otherreceivables
Unit:RMB
| Item | EndingBalance | Openingbalance |
| Otherreceivables | 59,436,540.53 | 57,725,792.00 |
| Total | 59,436,540.53 | 57,725,792.00 |
(1)Interestreceivable
1)ClassificationofinterestreceivableNotapplicable
2)ImportantoverdueinterestNotapplicable
3).Disclosureunderthemethodsofprovisionforbaddebtsbycategory
Notapplicable
4).Statusofbaddebtprovision,recovery,orreversalfortheperiodNotapplicable
5)SituationofinterestreceivableactuallywrittenoffinthecurrentperiodNotapplicable
(2)Dividendsreceivable
1)ClassificationofdividendsreceivableNotapplicable
2)Importantdividendsreceivablewithagingover1yearNotapplicable
3).DisclosureunderthemethodsofprovisionforbaddebtsbycategoryNotapplicable
4).Statusofbaddebtprovision,recovery,orreversalfortheperiodNotapplicable
5)SituationofdividendsreceivableactuallywrittenoffinthecurrentperiodNotapplicable
(3)Otherreceivables
1)Classificationofotherreceivablesbynature
Unit:RMB
| Paymentnature | Bookbalanceatperiodend | Beginningbookbalance |
| Marginanddeposits | 53,774,307.13 | 51,775,226.86 |
| Employeereserve | 3,740,041.27 | 1,549,821.50 |
| Other | 6,132,069.36 | 8,748,853.73 |
| Total | 63,646,417.76 | 62,073,902.09 |
2)Disclosurebyaging
Unit:RMB
| Aging | Bookbalanceatperiodend | Beginningbookbalance |
| Within1year(including1year) | 33,867,092.11 | 22,481,619.93 |
| 1-2years | 24,429,192.98 | 38,313,327.26 |
| 2-3years | 4,155,060.57 | 119,250.00 |
| Morethan3years | 1,195,072.10 | 1,159,704.90 |
| 3-4years | 1,195,072.10 | 1,159,704.90 |
| Total | 63,646,417.76 | 62,073,902.09 |
3).Disclosureunderthemethodsofprovisionforbaddebtsbycategory
Unit:RMB
| Category | EndingBalance | Openingbalance | ||||||||
| Bookbalance | Baddebtprovision | Bookvalue | Bookbalance | Baddebtprovision | Bookvalue | |||||
| Amount | Scale | Amount | Drawingpercentages | Amount | Scale | Amount | Drawingpercentages | |||
| Provisionforbaddebtsonanindividualbasis | 1,393,147.78 | 2.19% | 1,363,219.78 | 97.85% | 29,928.00 | 1,418,314.90 | 2.28% | 1,367,386.90 | 96.41% | 50,928.00 |
| Inwhich: | ||||||||||
| Provisionforbaddebtsonacombinationbasis | 62,253,269.98 | 97.81% | 2,846,657.45 | 4.57% | 59,406,612.53 | 60,655,587.19 | 97.72% | 2,980,723.19 | 4.91% | 57,674,864.00 |
| Inwhich: | ||||||||||
| Combinationofmarginanddepositreceivable | 53,259,849.25 | 83.68% | 2,633,875.69 | 4.95% | 50,625,973.56 | 51,304,601.86 | 82.65% | 2,603,277.66 | 5.07% | 48,701,324.20 |
| Combinationofemployeereservereceivable | 3,740,041.27 | 5.88% | 0.00% | 3,740,041.27 | 1,549,821.50 | 2.50% | 0.00% | 1,549,821.50 | ||
| Combinationofsocialsecurityadvancesreceivable | 508,259.76 | 0.80% | 0.00% | 508,259.76 | 284,862.55 | 0.46% | 0.00% | 284,862.55 | ||
| Combinationofotherfinancings | 4,745,119.70 | 7.46% | 212,781.76 | 4.48% | 4,532,337.94 | 7,516,301.28 | 12.11% | 377,445.53 | 5.02% | 7,138,855.75 |
| Total | 63,646,417.76 | 100.00% | 4,209,877.23 | 6.61% | 59,436,540.53 | 62,073,902.09 | 100.00% | 4,348,110.09 | 7.00% | 57,725,792.00 |
Numberofcategorieswithprovisionforbaddebtsbyindividual:1Categorynameofprovisionforbaddebtsbyindividual:otheraccountsreceivable
Unit:RMB
| Name | Openingbalance | EndingBalance | ||||
| Bookbalance | Baddebtprovision | Bookbalance | Baddebtprovision | Drawingpercentages | ProvisionReason | |
| Otherreceivables | 1,418,314.90 | 1,367,386.90 | 1,393,147.78 | 1,363,219.78 | 97.85% | Thereisadispute |
| Total | 1,418,314.90 | 1,367,386.90 | 1,393,147.78 | 1,363,219.78 | ||
Numberofcategorieswithprovisionforbaddebtsbycombination:4Categorynameofprovisionforbaddebtsbycombination:combinationofmarginanddepositreceivable
Unit:RMB
| Name | EndingBalance | ||
| Bookbalance | Baddebtprovision | Drawingpercentages | |
| Combinationofmarginanddepositreceivable | 53,259,849.25 | 2,633,875.69 | 4.95% |
| Total | 53,259,849.25 | 2,633,875.69 | |
Descriptionofthebasisfordeterminingthecombination:paymentsofthesamenaturehavesimilarcreditriskcharacteristics.Categorynameofprovisionforbaddebtsbycombination:combinationofemployeereservereceivable
Unit:RMB
| Name | EndingBalance | ||
| Bookbalance | Baddebtprovision | Drawingpercentages | |
| Combinationofemployeereservereceivable | 3,740,041.27 | 0.00% | |
| Total | 3,740,041.27 | ||
Descriptionofthebasisfordeterminingthecombination:paymentsofthesamenaturehavesimilarcreditriskcharacteristics.Categorynameofprovisionforbaddebtsbycombination:combinationofsocialsecurityreceivableonbehalfofthepayer
Unit:RMB
| Name | EndingBalance |
| Bookbalance | Baddebtprovision | Drawingpercentages | |
| Combinationofsocialsecurityadvancesreceivable | 508,259.76 | 0.00% | |
| Total | 508,259.76 |
Descriptionofthebasisfordeterminingthecombination:paymentsofthesamenaturehavesimilarcreditriskcharacteristics.Categorynameofprovisionforbaddebtsbycombination:otheraccountsreceivable
Unit:RMB
| Name | EndingBalance | ||
| Bookbalance | Baddebtprovision | Drawingpercentages | |
| Combinationofotherfinancings | 4,745,119.70 | 212,781.76 | 4.48% |
| Total | 4,745,119.70 | 212,781.76 | |
Descriptionofthebasisfordeterminingthecombination:paymentsofthesamenaturehavesimilarcreditriskcharacteristics.Provisionforbaddebtsmadeaccordingtothegeneralexpectedcreditlossmodel:
Unit:RMB
| Baddebtprovision | StageI | StageII | StageIII | Total |
| Expectedcreditlossinthenext12months | Expectedcreditlossthroughouttheduration(nocreditimpairment) | Expectedcreditlossthroughouttheduration(creditimpairmenthasoccurred) | ||
| BalanceasofJan.1,2024 | 2,980,723.19 | 1,367,386.90 | 4,348,110.09 | |
| BalanceonJan.1,2024inthecurrentperiod | ||||
| -TransfertophaseII | ||||
| -TransfertophaseIII | ||||
| -ReversaltophaseII | ||||
| -ReversaltophaseI | ||||
| Provisioninthecurrentperiod | 40,599.80 | 40,599.80 | ||
| Reversalinthecurrentperiod | -129,992.21 | -49,000.00 | -178,992.21 | |
| Write-offinthecurrentperiod | ||||
| Write-offinthecurrentperiod | ||||
| Otherchanges | 159.55 | 159.55 |
| BalanceasofJune30,2024 | 2,891,490.33 | 1,318,386.90 | 4,209,877.23 |
ThebasisforthedivisionofeachstageandtheratioofprovisionsforbaddebtsThephaseIisthebaddebtprovisionforotherreceivableswithinoneyear.ThephaseIIisthebaddebtprovisionforaccountsreceivableoveroneyearthathavenotbeenindividuallyassessed.ThephaseIIIisthebaddebtprovisionforindividuallyassessedaccountsreceivable.ChangesinbookbalancewithsignificantamountoflossprovisioninthecurrentperiodNotapplicable
4).Statusofbaddebtprovision,recovery,orreversalfortheperiod
Provisionforbaddebtsinthecurrentperiod:
Unit:RMB
| Category | Openingbalance | Amountofchangefortheperiod | EndingBalance | |||
| Provision | Recoveredortransferred | Write-offorimpairment | Other | |||
| Baddebtprovision | 4,348,110.09 | 40,599.80 | -178,992.21 | 159.55 | 4,209,877.23 | |
| Total | 4,348,110.09 | 40,599.80 | -178,992.21 | 159.55 | 4,209,877.23 | |
Wherethebad-debtprovisionamountrecoveredorreversedthisperiodisimportant:
Notapplicable
5)Situationofotheraccountsreceivableactuallywrittenoffinthecurrentperiod
Notapplicable
6).Otherreceivablescollectedfromthedebtorswhichrankthefirstfiveattheendofperiod
Unit:RMB
| Companyname | Paymentnature | EndingBalance | Aging | Proportioninthetotalendingbalanceofotherreceivables | End-of-periodbalanceofprovisionforbaddebt |
| Summaryofotheraccountsreceivablewhichrankthefirstfiveattheendofperiod | Depositsandmargin | 8,634,010.68 | Within1year,1-2years | 13.57% | 431,700.53 |
| Total | 8,634,010.68 | 13.57% | 431,700.53 |
7)Presentedinotherreceivablesduetocentralizedmanagementoffunds
Notapplicable
9.Prepayments
(1)Prepaymentsarepresentedbyaging
Unit:RMB
| Aging | EndingBalance | Openingbalance | ||
| Amount | Scale | Amount | Scale | |
| Within1year | 6,569,774.50 | 100.00% | 6,564,760.64 | 99.90% |
| 1-2years | 0.00% | 6,479.34 | 0.10% | |
| Total | 6,569,774.50 | 6,571,239.98 | ||
Reasonsfornottimelysettlementofprepaymentswithagingover1yearandsignificantamount:
Notapplicable
(2).Topfiveofadvancestosuppliersintermsoftheendingbalancepresentedbyadvancereceivers
| Companyname | EndingBalance | Percentageoftotaladvances(%) |
| Summaryofprepaymentscollectedfromthedebtorswhichrankthefirstfiveattheendofperiod | 4,185,055.26 | 63.70% |
10.Inventories
WhethertheCompanyneedstocomplywiththedisclosurerequirementsoftherealestateindustryNo
(1)Classificationofinventory
Unit:RMB
| Item | EndingBalance | Openingbalance | ||||
| Bookbalance | Provisionforimpairmentofinventoryorcontractperformancecosts | Bookvalue | Bookbalance | Provisionforimpairmentofinventoryorcontractperformancecosts | Bookvalue | |
| Rawmaterial | 161,344,020.85 | 5,401,893.56 | 155,942,127.29 | 167,281,491.84 | 5,290,855.71 | 161,990,636.13 |
| Unfinishedproducts | 10,779,027.93 | 10,779,027.93 | 12,060,525.88 | 12,060,525.88 | ||
| Merchandiseinventory | 2,026,413,760.86 | 64,803,673.59 | 1,961,610,087.27 | 1,993,236,975.36 | 66,621,962.09 | 1,926,615,013.27 |
| Total | 2,198,536,809.64 | 70,205,567.15 | 2,128,331,242.49 | 2,172,578,993.08 | 71,912,817.80 | 2,100,666,175.28 |
(2)DataresourcesrecognizedasinventoryNotapplicable
(3)Provisionforimpairmentofinventoryorcontractperformancecosts
Unit:RMB
| Item | Openingbalance | Increaseforthecurrentperiod | Decreaseamountinthecurrentperiod | EndingBalance | ||
| Provision | Other | Reversalorwrite-off | Other | |||
| Rawmaterial | 5,290,855.71 | 253,915.61 | 142,877.76 | 5,401,893.56 | ||
| Merchandiseinventory | 66,621,962.09 | 126,606.77 | 7,749.55 | 1,952,644.82 | 64,803,673.59 | |
| Total | 71,912,817.80 | 380,522.38 | 7,749.55 | 2,095,522.58 | 70,205,567.15 | |
Notestoprovisionforinventorywrite-down
| Item | Specificbasisfordeterminingthenetrealizablevalue/residualconsiderationandthecosttobeincurred | Reversalorwrite-offinthecurrentperiodReasonstoprovisionforinventorywrite-down |
| Rawmaterial | Estimatedsellingpricesofmanufacturedproductsminusestimatedcoststocompletion,estimatedsellingexpensesandrelatedtaxesandsurcharges | Thefactorsaffectingthepreviouswrite-downofinventoryvaluehavedisappeared,resultinginthenetrealizablevalueofinventoryhigherthanitsbookvalue |
| Merchandiseinventory | Estimatedsellingpriceminusestimatedsalesexpensesandrelatedtaxes | Theinventorywithprovisionforinventorydepreciationatthebeginningoftheperiodhasbeenconsumed/soldinthecurrentperiod |
TheprovisionforinventorydepreciationbycombinationNotapplicableProvisioncriteriaforprovisionofinventorydepreciationreservebycombinationNotapplicable
(4)NotestotheendingbalanceofinventoriesincludingthecapitalizationamountofborrowingcostsNotapplicable
(5)Notestotheamortizationamountofcontractperformancecostsinthecurrentperiod
Notapplicable
11.Assetsheldforsale
Notapplicable
12.Non-currentassetsduewithinoneyear
Notapplicable
(1)Debtinvestmentsduewithinoneyear
Notapplicable
(2)Otherdebtinvestmentsduewithinoneyear
Notapplicable
13.Othercurrentassets
Unit:RMB
| Item | EndingBalance | Openingbalance |
| Amountofvalue-addedtaxdeduction | 14,705,036.13 | 21,032,239.30 |
| Inputtaxtoberecognized | 13,980,706.95 | 31,717,607.91 |
| Prepaidincometax | 384,254.22 | 1,364,632.40 |
| Othertaxesprepaid | 491,655.06 | |
| Fixeddeposits | 45,001,594.79 | |
| Other | 14,475,773.82 | 18,134,912.20 |
| Total | 89,039,020.97 | 72,249,391.81 |
14.Debtinvestments
(1)DebtinvestmentssituationNotapplicable
(2)ImportantdebtinvestmentsattheendoftheperiodNotapplicable
(3)ProvisionforimpairmentNotapplicable
(4).SituationofdebtinvestmentsactuallywrittenoffinthecurrentperiodNotapplicable
15.Otherdebtinvestments
(1)OtherdebtinvestmentssituationNotapplicable
(2)OtherimportantdebtinvestmentsattheendoftheperiodNotapplicable
(3)ProvisionforimpairmentNotapplicable
(4).SituationofotherdebtinvestmentsactuallywrittenoffinthecurrentperiodNotapplicable
16.Investmentinotherequityinstruments
Notapplicable
17.Long-termreceivables
(1)Long-termreceivablesNotapplicable
(2).Disclosureunderthemethodsofprovisionforbaddebtsbycategory
Notapplicable
(3)Statusofbaddebtprovision,recovery,orreversalfortheperiodNotapplicable
(4).SituationofaccountsreceivableactuallywrittenoffinthecurrentperiodNotapplicable
18.Long-termequityinvestments
Unit:RMB
| Theinvestee | Beginningbalance(bookvalue) | Beginningbalanceofprovisionforimpairment | Increaseordecreaseinthecurrentperiod | Endingbalance(bookvalue) | End-of-periodbalanceofprovisionforimpairment | |||||||
| Additionalinvestment | Reductionofinvestment | Investmentincomeorlossrecognizedunderequitymethod | Othercomprehensiveincomeadjustments | Otherchangesinequity | Cashdividendsorprofitsdeclaredtobedistributed | Provisionforimpairmentaccrued | Other | |||||
| 1.Jointventures | ||||||||||||
| 2.Associatedenterprise | ||||||||||||
| Shang | 51,86 | 89,87 | 51,95 | |||||||||
| haiWatchIndustryCo.,Ltd. | 2,607.30 | 2.06 | 2,479.36 | ||
| Sub-total | 51,862,607.30 | 89,872.06 | 51,952,479.36 | ||
| Total | 51,862,607.30 | 89,872.06 | 51,952,479.36 |
TherecoverableamountisdeterminedbythenetamountofthefairvaluelessthedisposalexpensesNotapplicableTherecoverableamountisdeterminedatthepresentvalueoftheexpectedfuturecashflowsNotapplicableReasonsforthedifferencebetweentheaforementionedinformationandtheinformationusedintheimpairmenttestofpreviousyearsorexternalinformationNotapplicableReasonsforthedifferencebetweentheinformationusedinthecompany'simpairmenttestinpreviousyearsandtheactualsituationinthecurrentyearNotapplicableOthernotesNotapplicable
19.Othernon-currentfinancialassetsNotapplicable
20.Investmentproperties
(1)Investmentpropertymeasuredatcost
Unit:RMB
| Item | Housesandstructures | Landuserights | Constructioninprogress | Total |
| I.Originalbookvalue | ||||
| 1.Beginningbalance | 620,335,023.89 | 620,335,023.89 | ||
| 2.Increaseforthecurrentperiod | ||||
| (1)Outsourcing | ||||
| (2)Transfersfrominventories\fixedassets\constructioninprogress | ||||
| (3)Increasefrombusiness |
| combinations | |||
| 3.Decreaseforthecurrentperiod | |||
| (1)Disposal | |||
| (2)Othertransfersout | |||
| 4.Endingbalance | 620,335,023.89 | 620,335,023.89 | |
| II.Accumulateddepreciationandamortization | |||
| 1.Beginningbalance | 260,079,191.75 | 260,079,191.75 | |
| 2.Increaseforthecurrentperiod | 7,846,994.22 | 7,846,994.22 | |
| (1)Provisionoramortization | 7,846,994.22 | 7,846,994.22 | |
| (2)Transferfromfixedassets | |||
| 3.Decreaseforthecurrentperiod | |||
| (1)Disposal | |||
| (2)Othertransfersout | |||
| 4.Endingbalance | 267,926,185.97 | 267,926,185.97 | |
| III.Impairmentprovision | |||
| 1.Beginningbalance | |||
| 2.Increaseforthecurrentperiod | |||
| (1)Provision | |||
| 3.Decreaseforthecurrentperiod | |||
| (1)Disposal | |||
| (2)Othertransfersout | |||
| 4.Endingbalance | |||
| IV.Bookvalue | |||
| 1.Endingbookvalue | 352,408,837.92 | 352,408,837.92 | |
| 2.Beginningbookvalue | 360,255,832.14 | 360,255,832.14 |
TherecoverableamountisdeterminedbythenetamountofthefairvaluelessthedisposalexpensesNotapplicableTherecoverableamountisdeterminedatthepresentvalueoftheexpectedfuturecashflows
NotapplicableReasonsforthedifferencebetweentheaforementionedinformationandtheinformationusedintheimpairmenttestofpreviousyearsorexternalinformationNotapplicableReasonsforthedifferencebetweentheinformationusedinthecompany'simpairmenttestinpreviousyearsandtheactualsituationinthecurrentyearNotapplicableOthernotes:
Notapplicable
(2)InvestmentpropertymeasuredatfairvalueNotapplicable
(3)ConverttoinvestmentpropertyandmeasureatfairvalueNotapplicable
(4)InvestmentpropertywithoutcertificateoftitleNotapplicable
21.Fixedassets
Unit:RMB
| Item | EndingBalance | Openingbalance |
| Fixedassets | 345,651,268.72 | 355,785,354.68 |
| Liquidationoffixedassets | 0.00 | 0.00 |
| Total | 345,651,268.72 | 355,785,354.68 |
(1).Statusoffixedassets
Unit:RMB
| Item | Housesandbuildings | Machineryequipment | Transportequipment | Electronicequipment | Otherequipment | Total |
| 1.Originalbookvalue: | ||||||
| 1.Beginningbalance | 441,589,632.63 | 130,667,789.21 | 13,277,093.83 | 50,657,219.07 | 44,094,254.35 | 680,285,989.09 |
| 2.Increaseforthecurrentperiod | 20,027.36 | 2,328,766.75 | 1,473,437.61 | 663,176.09 | 4,485,407.81 | |
| (1)Acquisitions | 2,320,494.70 | 1,473,351.07 | 663,176.09 | 4,457,021.86 | ||
| (2)Transferfromconstructioninprogress |
| (3)Increasefrombusinesscombinations | ||||||
| (4).Exchangedifferencesarisingfromforeigncurrencytransactions | 20,027.36 | 8,272.05 | 86.54 | 28,385.95 | ||
| 3.Decreaseforthecurrentperiod | 3,199,869.02 | 1,423,289.61 | 1,026,085.81 | 680,665.17 | 453,955.74 | 6,783,865.35 |
| (1)Disposalorscrapping | 570,550.00 | 128,105.05 | 1,026,085.81 | 631,965.29 | 335,369.81 | 2,692,075.96 |
| (2).Exchangedifferencesarisingfromforeigncurrencytransactions | 2,629,319.02 | 1,295,184.56 | 48,699.88 | 118,585.93 | 4,091,789.39 | |
| 4.Endingbalance | 438,409,790.97 | 131,573,266.35 | 12,251,008.02 | 51,449,991.51 | 44,303,474.70 | 677,987,531.55 |
| II.Accumulateddepreciation | ||||||
| 1.Beginningbalance | 152,207,027.41 | 83,133,593.32 | 12,078,669.40 | 37,956,542.09 | 39,124,802.19 | 324,500,634.41 |
| 2.Increaseforthecurrentperiod | 6,534,045.86 | 4,469,874.54 | 167,437.90 | 1,580,401.82 | 674,908.55 | 13,426,668.67 |
| (1)Provision | 6,517,095.45 | 4,462,019.71 | 167,437.90 | 1,580,319.60 | 674,908.55 | 13,401,781.21 |
| (2).Exchangedifferencesarisingfromforeigncurrencytransactions | 16,950.41 | 7,854.83 | 82.22 | 24,887.46 | ||
| 3.Decreaseforthecurrentperiod | 2,238,221.77 | 1,295,744.31 | 974,781.52 | 597,648.74 | 484,643.91 | 5,591,040.25 |
| (1)Disposalorscrapping | 395,811.20 | 113,925.59 | 974,781.52 | 554,287.43 | 366,283.77 | 2,405,089.51 |
| (2).Exchangedifferencesarisingfromforeigncurrencytransactions | 1,842,410.57 | 1,181,818.72 | 43,361.31 | 118,360.14 | 3,185,950.74 | |
| 4.Endingbalance | 156,502,851.50 | 86,307,723.55 | 11,271,325.78 | 38,939,295.17 | 39,315,066.83 | 332,336,262.83 |
| III.Impairmentprovision | ||||||
| 1.Beginning |
| balance | ||||||
| 2.Increaseforthecurrentperiod | ||||||
| (1)Provision | ||||||
| 3.Decreaseforthecurrentperiod | ||||||
| (1)Disposalorscrapping | ||||||
| 4.Endingbalance | ||||||
| IV.Bookvalue | ||||||
| 1.Endingbookvalue | 281,906,939.47 | 45,265,542.80 | 979,682.24 | 12,510,696.34 | 4,988,407.87 | 345,651,268.72 |
| 2.Beginningbookvalue | 289,382,605.22 | 47,534,195.89 | 1,198,424.43 | 12,700,676.98 | 4,969,452.16 | 355,785,354.68 |
(2)Temporarilyidlefixedassets
Notapplicable
(3)FixedassetsleasedoutthroughoperatingleasesNotapplicable
(4)Fixedassetswithoutcertificatesoftitle
Unit:RMB
| Item | Bookvalue | Reasonsfornotcompletingthecertificateoftitle |
| Housesandbuildings | 182,663.79 | Defectsinpropertyrights |
(5)Impairmenttestoffixedassets
Notapplicable
(6)LiquidationoffixedassetsNotapplicable
22.ConstructioninprogressNotapplicable
(1)StatusofconstructioninprogressNotapplicable
(2)Changesinimportantconstructioninprogressinthecurrentperiod
Notapplicable
(3)StatusofimpairmentofconstructioninprogressinthecurrentperiodNotapplicable
(4)Statusofimpairmenttestofconstructioninprogress
Notapplicable
(5)ProjectmaterialsNotapplicable
23.Productivebiologicalassets
(1)ProductivebiologicalassetsmeasuredatcostNotapplicable
(2)ImpairmenttestofproductivebiologicalassetsmeasuredatcostNotapplicable
(3)Productivebiologicalassetsmeasuredatfairvalue
Notapplicable
24.OilandgasassetsNotapplicable
25.Right-of-useassets
(1)Right-of-useassetssituation
Unit:RMB
| Item | Housesandbuildings | Total |
| I.Originalbookvalue | ||
| 1.Beginningbalance | 153,209,897.81 | 153,209,897.81 |
| 2.Increaseforthecurrentperiod | 54,191,179.24 | 54,191,179.24 |
| (1)Lease | 54,188,231.32 | 54,188,231.32 |
| (2).Exchangedifferencesarisingfromforeigncurrencytransactions | 2,947.92 | 2,947.92 |
| 3.Decreaseforthecurrentperiod | 79,521,232.18 | 79,521,232.18 |
| (1)Disposal | 1,437,591.74 | 1,437,591.74 |
| (2)Theleaseexpires | 78,083,640.44 | 78,083,640.44 |
| 4.Endingbalance | 127,879,844.87 | 127,879,844.87 |
| II.Accumulateddepreciation | ||
| 1.Beginningbalance | 43,757,416.17 | 43,757,416.17 |
| 2.Increaseforthecurrentperiod | 52,810,274.43 | 52,810,274.43 |
| (1)Provision | 52,808,948.49 | 52,808,948.49 |
| (2).Exchangedifferencesarisingfromforeigncurrencytransactions | 1,325.94 | 1,325.94 |
| 3.Decreaseforthecurrentperiod | 78,074,492.72 | 78,074,492.72 |
| (1)Disposal | 928,227.37 | 928,227.37 |
| (2)Theleaseexpires | 77,146,265.35 | 77,146,265.35 |
| 4.Endingbalance | 18,493,197.88 | 18,493,197.88 |
| III.Impairmentprovision | ||
| 1.Beginningbalance | ||
| 2.Increaseforthecurrentperiod | ||
| (1)Provision | ||
| 3.Decreaseforthecurrentperiod | ||
| (1)Disposal | ||
| 4.Endingbalance | ||
| IV.Bookvalue | ||
| 1.Endingbookvalue | 109,386,646.99 | 109,386,646.99 |
| 2.Beginningbookvalue | 109,452,481.64 | 109,452,481.64 |
(2)Impairmenttestofright-of-useassets
Notapplicable
26.Intangibleassets
(1)Intangibleassets
Unit:RMB
| Item | Landuserights | Patentright | Non-PatentTechnology] | Softwaresystem | Righttousetrademark | Total |
| I.Originalbookvalue | ||||||
| 1.Beginningbalance | 34,933,822.40 | 35,242,672.55 | 16,599,485.22 | 86,775,980.17 | ||
| 2.Increaseforthecurrentperiod | 1,006,663.53 | 5,867.94 | 1,012,531.47 | |||
| (1)Acquisitions | 1,006,663.53 | 5,867.94 | 1,012,531.47 | |||
| (2)Internal |
| researchanddevelopment | |||||
| (3)Increasefrombusinesscombinations | |||||
| 3.Decreaseforthecurrentperiod | 7,357.60 | 0.43 | 7,358.03 | ||
| (1)Disposal | 7,357.60 | 0.43 | 7,358.03 | ||
| 4.Endingbalance | 34,933,822.40 | 36,241,978.48 | 16,605,352.73 | 87,781,153.61 | |
| II.Accumulatedamortization | |||||
| 1.Beginningbalance | 17,249,475.30 | 27,593,853.68 | 10,268,270.42 | 55,111,599.40 | |
| 2.Increaseforthecurrentperiod | 366,776.65 | 1,427,172.01 | 27,392.70 | 1,821,341.36 | |
| (1)Provision | 366,776.65 | 1,427,172.01 | 27,392.70 | 1,821,341.36 | |
| 3.Decreaseforthecurrentperiod | 367.88 | 367.88 | |||
| (1)Disposal | 367.88 | 367.88 | |||
| 4.Endingbalance | 17,616,251.95 | 29,020,657.81 | 10,295,663.12 | 56,932,572.88 | |
| III.Impairmentprovision | |||||
| 1.Beginningbalance | |||||
| 2.Increaseforthecurrentperiod | |||||
| (1)Provision | |||||
| 3.Decreaseforthecurrentperiod | |||||
| (1)Disposal | |||||
| 4.Endingbalance | |||||
| IV.Bookvalue | |||||
| 1.Endingbookvalue | 17,317,570.45 | 7,221,320.67 | 6,309,689.61 | 30,848,580.73 | |
| 2.Beginningbookvalue | 17,684,347.10 | 7,648,818.87 | 6,331,214.80 | 31,664,380.77 |
TheproportionofintangibleassetsformedbytheCompany'sinternalresearchanddevelopmentattheendofthecurrentperiodtothebalanceofintangibleassetsis0.00%
(2)DataresourcesrecognizedasintangibleassetsNotapplicable
(3)LanduserightwithoutcertificateoftitleNotapplicable
(4)Impairmenttestofintangibleassets
Notapplicable
27.Goodwill
(1)OriginalbookvalueofgoodwillNotapplicable
(2)ProvisionforimpairmentofgoodwillNotapplicable
(3)InformationontheassetgrouporcombinationofassetgroupswherethegoodwillislocatedNotapplicable
(4)SpecificdeterminationmethodofrecoverableamountNotapplicable
(5)CompletionofperformancecommitmentsandcorrespondingimpairmentofgoodwillNotapplicable
28.Long-termdeferredexpenses
Unit:RMB
| Item | Openingbalance | Increaseforthecurrentperiod | Amortizationamountforthecurrentperiod | Otherdecreases | EndingBalance |
| Counterproductionfee | 19,008,343.84 | 8,377,686.40 | 9,745,039.42 | 1,078,053.51 | 16,562,937.31 |
| Decorationfee | 96,297,010.20 | 27,813,498.18 | 24,501,735.62 | 177,816.39 | 99,430,956.37 |
| Other | 7,019,001.09 | 441,460.90 | 3,258,250.73 | 85,902.48 | 4,116,308.78 |
| Total | 122,324,355.13 | 36,632,645.48 | 37,505,025.77 | 1,341,772.38 | 120,110,202.46 |
29.Deferredtaxassets/deferredtaxliabilities
(1)Deferredincometaxassetswithoutoffset
Unit:RMB
| Item | EndingBalance | Openingbalance | ||
| Deductibletemporarydifference | Deferredincometaxassets | Deductibletemporarydifference | Deferredincometaxassets | |
| Provisionforimpairmentofassets | 103,493,511.38 | 23,491,810.64 | 107,672,653.16 | 24,371,732.35 |
| Unrealizedprofitsfrominternaltransactions | 61,698,023.06 | 15,215,058.31 | 83,620,908.60 | 20,855,280.62 |
| Deductiblelosses | 132,264,495.42 | 31,790,112.52 | 126,562,143.51 | 31,197,892.87 |
| Equityincentive | 8,686,896.23 | 2,038,524.01 | 6,263,007.85 | 1,449,733.06 |
| Publicityexpensesthatcanbecarriedforwardtosubsequentyears | 4,438,509.76 | 1,109,627.44 | ||
| Leaseliabilities | 162,217,563.49 | 40,554,390.88 | 109,682,960.95 | 27,420,740.27 |
| Other | 5,150,706.68 | 1,287,676.67 | 5,168,527.80 | 1,292,131.95 |
| Total | 477,949,706.02 | 115,487,200.47 | 438,970,201.87 | 106,587,511.12 |
(2)Deferredincometaxliabilitieswithoutoffset
Unit:RMB
| Item | EndingBalance | Openingbalance | ||
| Taxabletemporarydifferences | Deferredtaxliability | Taxabletemporarydifferences | Deferredtaxliability | |
| One-timepre-taxdeductionoffixedassets | 29,215,672.67 | 4,382,350.90 | 28,437,227.07 | 4,265,584.06 |
| Right-of-useassets | 162,695,287.60 | 40,673,821.90 | 109,212,305.15 | 27,303,076.29 |
| Total | 191,910,960.27 | 45,056,172.80 | 137,649,532.22 | 31,568,660.35 |
(3)Deferredtaxassetsorliabilitiespresentedbynetamountafteroffset
Unit:RMB
| Item | Amountofdeferredtaxassetsandliabilitiesoffsetattheendoftheperiod | Endingbalanceofdeferredtaxassetsorliabilitiesafteroffset | Amountofdeferredtaxassetsandliabilitiesoffsetatthebeginningoftheperiod | Balanceofdeferredtaxassetsorliabilitiesafteroffsetatthebeginningoftheperiod |
| Deferredincometaxassets | 39,593,331.51 | 75,893,868.97 | 26,359,739.66 | 80,227,771.46 |
| Deferredtaxliability | 39,593,331.51 | 5,462,841.29 | 26,359,739.66 | 5,208,920.69 |
(4)Detailsofunrecognizeddeferredtaxassets
Unit:RMB
| Item | EndingBalance | Openingbalance |
| Provisionforimpairmentofassets | 3,444,117.03 | 3,395,341.37 |
| Deductiblelosses | 52,393,966.99 | 52,523,345.89 |
| Total | 55,838,084.02 | 55,918,687.26 |
(5)Thedeductiblelossesoftheunrecognizeddeferredtaxassetswillbecomedueinthefollowingyears:
Unit:RMB
| Year | Endingamount | Beginningamount | Remarks |
| 2024 | 21,759,088.21 | 23,049,503.37 | |
| 2025 | 27,823,763.89 | 29,473,842.52 | |
| 2026 | |||
| 2027 | |||
| 2028 | |||
| 2029 | |||
| 2030 | |||
| 2031 | 2,811,114.89 | ||
| Total | 52,393,966.99 | 52,523,345.89 |
30.Othernon-currentassets
Unit:RMB
| Item | EndingBalance | Openingbalance | ||||
| Bookbalance | Impairmentprovision | Bookvalue | Bookbalance | Impairmentprovision | Bookvalue | |
| Prepaymentforlong-termassets | 2,185,332.57 | 2,185,332.57 | 9,434,627.17 | 9,434,627.17 | ||
| Total | 2,185,332.57 | 2,185,332.57 | 9,434,627.17 | 9,434,627.17 | ||
31.Assetswithrestrictedownershiporusagerights
Notapplicable
32.Short-termloans
(1)Classificationofshort-termdebts
Unit:RMB
| Item | EndingBalance | Openingbalance |
| Creditloans | 320,000,000.00 | 250,000,000.00 |
| Unexpiredinterestpayable | 207,333.32 | 187,763.87 |
| Total | 320,207,333.32 | 250,187,763.87 |
(2)Overdueandoutstandingshort-termdebts
Notapplicable
33.Tradingfinancialliabilities
Notapplicable
34.DerivativefinancialliabilitiesNotapplicable
35.NotespayableNotapplicable
36.Accountspayable
(1)Presentationofaccountspayable
Unit:RMB
| Item | EndingBalance | Openingbalance |
| Payableforgoods | 109,737,172.05 | 148,281,377.41 |
| Materialspayable | 20,600,336.04 | 23,371,455.42 |
| Constructionpayables | 1,034,800.53 | 2,173,074.88 |
| Total | 131,372,308.62 | 173,825,907.71 |
(2).Significantpayableagingover1yearoroverdueNotapplicable
37.Otherpayables
Unit:RMB
| Item | EndingBalance | Openingbalance |
| Dividendpayable | 2,907,796.73 | 2,058,352.24 |
| Otherpayables | 107,885,270.30 | 119,879,448.83 |
| Total | 110,793,067.03 | 121,937,801.07 |
(1)Interestpayable
Notapplicable
(2)Dividendspayable
Unit:RMB
| Item | EndingBalance | Openingbalance |
| Commonstockdividends | 2,907,796.73 | 2,058,352.24 |
| Total | 2,907,796.73 | 2,058,352.24 |
(3)Otherpayables
1).Otherpayablelistedbynature
Unit:RMB
| Item | EndingBalance | Openingbalance |
| Depositsandmargin | 33,574,986.55 | 34,075,198.63 |
| Expensesforstoreactivities | 21,585,739.68 | 17,335,559.49 |
| Decorationfee | 4,893,296.60 | 10,214,019.04 |
| Restrictedstockrepurchaseobligations | 13,379,181.81 | 14,304,862.81 |
| Other | 34,452,065.66 | 43,949,808.86 |
| Total | 107,885,270.30 | 119,879,448.83 |
2)Othersignificantpayablewithagingover1yearoroverdue
Unit:RMB
| Item | EndingBalance | Reasonsfornon-repaymentornon-transfer |
| Propertyleasedeposit | 14,498,179.29 | Settlementperiodnotreached |
| Total | 14,498,179.29 |
38.Advancereceipts
(1)Presentationofadvancesreceived
Unit:RMB
| Item | EndingBalance | Openingbalance |
| Advancerent | 8,242,987.93 | 10,267,758.31 |
| Total | 8,242,987.93 | 10,267,758.31 |
(2)Significantadvancereceivablewithagingover1yearoroverdue
Notapplicable
39.Contractliabilities
Unit:RMB
| Item | EndingBalance | Openingbalance |
| Paymentforgoods | 18,804,742.85 | 12,286,243.62 |
| Total | 18,804,742.85 | 12,286,243.62 |
Significantcontractualliabilitieswithagingover1yearNotapplicableSignificantchangesinbookvalueduringthereportingperiod,amountsandreasonsNotapplicable
40.Employeecompensation
(1).Employeecompensationbreakdown
Unit:RMB
| Item | Openingbalance | Increaseinthecurrentperiod | Decreaseinthecurrentperiod | EndingBalance |
| I.Short-termcompensations | 114,204,051.03 | 262,318,167.18 | 309,320,717.16 | 67,201,501.05 |
| II.Post-employmentbenefits-definedcontributionplans | 5,581,451.36 | 23,863,509.40 | 23,378,302.45 | 6,066,658.31 |
| III.Terminationbenefits | 299,308.21 | 3,044,542.52 | 3,326,450.73 | 17,400.00 |
| Total | 120,084,810.60 | 289,226,219.10 | 336,025,470.34 | 73,285,559.36 |
(2).Short-termcompensationbreakdown
Unit:RMB
| Item | Openingbalance | Increaseinthecurrentperiod | Decreaseinthecurrentperiod | EndingBalance |
| 1.Wages,bonus,allowanceandsubsidy | 113,282,042.05 | 227,106,252.78 | 274,396,607.52 | 65,991,687.31 |
| 2.Staffwelfare | 162,095.02 | 10,037,372.97 | 9,883,253.98 | 316,214.01 |
| 3.Socialinsurancepremium | 78.32 | 11,937,649.21 | 11,921,628.76 | 16,098.76 |
| Including:medicalinsurancepremium | 10,978,630.58 | 10,962,684.19 | 15,946.38 | |
| Work-relatedinjuryinsurancepremium | 78.32 | 489,199.84 | 489,125.78 | 152.38 |
| Birthinsurancepremium | 469,818.79 | 469,818.79 | ||
| Housingprovidentfunds | 13,551.00 | 9,652,267.10 | 9,488,972.22 | 176,845.89 |
| 5.LaborUnionfeeandstaffeducationexpenses | 746,284.64 | 3,584,625.12 | 3,630,254.68 | 700,655.08 |
| Total | 114,204,051.03 | 262,318,167.18 | 309,320,717.16 | 67,201,501.05 |
(3).Definedcontributionplanbreakdown
Unit:RMB
| Item | Openingbalance | Increaseinthecurrentperiod | Decreaseinthecurrentperiod | EndingBalance |
| 1.Basicendowmentinsurance | 208,205.97 | 20,260,935.24 | 20,251,259.03 | 217,882.18 |
| 2.Unemployment | 379.88 | 877,646.96 | 877,338.68 | 688.16 |
| insurancepremium | ||||
| 3.Enterpriseannuitypayment | 5,372,865.51 | 2,724,927.20 | 2,249,704.74 | 5,848,087.97 |
| Total | 5,581,451.36 | 23,863,509.40 | 23,378,302.45 | 6,066,658.31 |
41.Taxespayable
Unit:RMB
| Item | EndingBalance | Openingbalance |
| VAT | 23,145,061.97 | 38,997,243.97 |
| Enterpriseincometax | 24,686,272.16 | 21,276,050.77 |
| Individualincometax | 1,023,995.40 | 1,101,633.76 |
| Urbanmaintenanceandconstructiontax | 184,082.84 | 1,047,680.77 |
| Educationsurcharges | 132,497.14 | 748,598.11 |
| Other | 3,380,962.23 | 1,016,953.93 |
| Total | 52,552,871.74 | 64,188,161.31 |
42.Liabilitiesheldforsale
Notapplicable
43.Non-currentliabilitiesduewithinoneyear
Unit:RMB
| Item | EndingBalance | Openingbalance |
| Leaseliabilitiesduewithinoneyear | 69,943,530.95 | 66,399,004.20 |
| Total | 69,943,530.95 | 66,399,004.20 |
44.Othercurrentliabilities
Unit:RMB
| Item | EndingBalance | Openingbalance |
| Outputtaxamounttobetransferred | 2,078,002.76 | 1,589,635.30 |
| Total | 2,078,002.76 | 1,589,635.30 |
45.Long-termloans
(1)Classificationoflong-termloansNotapplicable
46.Bondspayable
(1)BondspayableNotapplicable
(2)Increase/decreaseinbondspayable(excludingpreferredstock,perpetualbondsandotherfinancialinstrumentsdividedintofinancialliabilities)Notapplicable
(3)NotestoconvertiblecorporatebondsNotapplicable
(4)DescriptionofotherfinancialinstrumentsdividedintofinancialliabilitiesNotapplicable
47.Leaseliabilities
Unit:RMB
| Item | EndingBalance | Openingbalance |
| Housesandbuildings | 111,899,576.39 | 113,786,386.87 |
| Unrecognizedfinancingcharges | -2,988,410.05 | -3,861,030.15 |
| Leaseliabilitiesduewithinoneyear | -69,943,530.95 | -66,399,004.20 |
| Total | 38,967,635.39 | 43,526,352.52 |
48.Long-termpayable
Notapplicable
(1)Long-termpayablelistedbynatureNotapplicable
(2)SpecialpayableNotapplicable
49.Long-termemployeecompensationpayable
(1)Tableoflong-termemployeecompensationpayableNotapplicable
(2)ChangesindefinedbenefitplansNotapplicable
50.EstimatedliabilitiesNotapplicable
51.Deferredincome
Unit:RMB
| Item | Openingbalance | Increaseinthecurrentperiod | Decreaseinthecurrentperiod | EndingBalance | Reasonsforformation |
| Governmentsubsidies | 952,785.69 | 952,785.69 | |||
| Total | 952,785.69 | 952,785.69 |
Othernotes:
DeferredincomerelatedtogovernmentsubsidiesFordetailsoftheCompany'sgovernmentsubsidies,pleaserefertoNoteXI.2Liabilitiesrelatedtogovernmentsubsidies.
52.Othernon-currentliabilities
Notapplicable
53.Capitalstock
Unit:RMB
| Openingbalance | Increase/decreaseinthischange(+,-) | EndingBalance | |||||
| IPO | Rightsissue | Capitalconversionofprovidentfunds | Other | Sub-total | |||
| Totalnumberofshares | 415,219,970.00 | -9,355,763.00 | -9,355,763.00 | 405,864,207.00 | |||
Othernotes:
AccordingtothePlanontheRepurchaseofPartialDomesticListedForeign-InvestedShares(BShares)deliberatedandadoptedatthe11thmeetingofthe10thBoardofDirectorsheldonMarch16,2023andthe2022AnnualGeneralMeetingofShareholdersheldonApril26,2023,theCompanyisagreedtouseitsownfundstorepurchasepartofdomesticlistedforeign-investedshares(BShares)throughcentralizedbiddingtransactions.Thecancellationof9,355,763BsharesrepurchasedbythecompanyhasbeencompletedattheChinaSecuritiesDepositoryandClearingCorporationLimited(CSDC)ShenzhenBranchonMay10,2024.
54.Otherequityinstruments
(1)Basicinformationofpreferredstock,perpetualbondsandotherfinancialinstrumentsissuedattheendoftheperiodNotapplicable
(2)Tableofchangesinpreferredstock,perpetualbondsandotherfinancialinstrumentsissuedattheendoftheperiodNotapplicable
55.Capitalreserve
Unit:RMB
| Item | Openingbalance | Increaseinthecurrentperiod | Decreaseinthecurrentperiod | EndingBalance |
| Capitalpremium(equitypremium) | 968,257,185.91 | 54,984,906.42 | 913,272,279.49 | |
| Othercapitalreserves | 21,901,847.26 | 906,067.21 | 22,807,914.47 | |
| Total | 990,159,033.17 | 906,067.21 | 54,984,906.42 | 936,080,193.96 |
Othernotes,includingthechangesinthecurrentperiodandthereasonsforthechanges:
1.AccordingtotheProposalonGrantingRestrictedStockstotheIncentiveObjectsoftheCompany's2018A-SharesRestrictedStockIncentivePlan(PhaseII)deliberatedandapprovedbytheBoardofDirectorsandtheGeneralMeetingofShareholdersoftheCompany,in1H24,theservicesobtainedbytheCompanyfromtheaboveincentiveobjectswereincludedintherelevantcostsorexpensesandthe"othercapitalreserves"wasincreasedbyRMB906,067.21accordingly.
2.AsstatedinNoteVII.53,theCompanyreducedthecapitalreservebyRMB54,984,906.42fortherepurchaseandcancellationofBshares.
56.Treasurystock
Unit:RMB
| Item | Openingbalance | Increaseinthecurrentperiod | Decreaseinthecurrentperiod | EndingBalance |
| Reductionofregisteredcapitalforrepurchase | 64,340,669.42 | 64,340,669.42 | ||
| Restrictedshare-basedpayment | 14,304,862.81 | 859,048.00 | 13,445,814.81 | |
| Total | 78,645,532.23 | 65,199,717.42 | 13,445,814.81 |
Othernotes,includingthechangesinthecurrentperiodandthereasonsforthechanges:
1.AsstatedinNoteVII.53,theCompanyreducedthetreasurystockbyRMB64,340,669.42fortherepurchaseandcancellationofBshares.
2.In1H24,thetreasurystockwasreducedbyRMB859,048.00forthecashdividendscorrespondingtotheremainingrestrictedstocks.
57.Othercomprehensiveincome
Unit:RMB
| Item | Openingbalance | Amountforthecurrentperiod | EndingBalance | |||||
| Amountbeforeincometaxforthe | Less:Amountspreviouslyincluded | Less:Amountspreviouslyincluded | Less:incometaxexpenses | Netincomeattributableto | Netincomeattributableto | |||
| currentperiod | inothercomprehensiveincomereclassifiedtoprofitorlossinthecurrentperiod | inothercomprehensiveincomeforretainedearningsinthecurrentperiod | parentcompany | minorityshareholders | |||
| I.Othercomprehensiveincomethatcannotbetransferredtoprofitorloss | |||||||
| Including:changesinre-measurementofthedefinedbenefitplan | |||||||
| Othercomprehensiveincomethatcannotbetransferredtoprofitorlossundertheequitymethod | |||||||
| Changesinfairvalueofotherequityinstrumentinvestments | |||||||
| Changesinfairvalueofthecompany'screditrisk |
| II.Othercomprehensiveincomethatwillbereclassifiedintoprofitorloss | 19,325,335.93 | -5,577,527.76 | -5,577,527.76 | 13,747,808.17 | ||
| Including:othercomprehensiveincomethatcanbecarriedforwardtoprofitandlossundertheequitymethod | ||||||
| Changesinfairvalueofotherdebtinvestments | ||||||
| Amountoffinancialassetsreclassifiedintoothercomprehensiveincomes | ||||||
| Provisionforcreditimpairmentofotherdebtinvestments | ||||||
| Cashflowhedgereserves | ||||||
| Translationdifferenceofforeigncurrencyfinancial | 19,325,335.93 | -5,577,527.76 | -5,577,527.76 | 13,747,808.17 |
| statements | ||||||
| Totalothercomprehensiveincome | 19,325,335.93 | -5,577,527.76 | -5,577,527.76 | 13,747,808.17 |
58.Specialreserves
Unit:RMB
| Item | Openingbalance | Increaseinthecurrentperiod | Decreaseinthecurrentperiod | EndingBalance |
| Worksafetycharges | 3,223,158.06 | 760,556.40 | 218,699.04 | 3,765,015.42 |
| Total | 3,223,158.06 | 760,556.40 | 218,699.04 | 3,765,015.42 |
59.Surplusreserve
Unit:RMB
| Item | Openingbalance | Increaseinthecurrentperiod | Decreaseinthecurrentperiod | EndingBalance |
| Legalsurplusreserve | 213,025,507.50 | 213,025,507.50 | ||
| Discretionarysurplusreserves | 61,984,894.00 | 61,984,894.00 | ||
| Total | 275,010,401.50 | 275,010,401.50 |
Descriptionofsurplusreserves,includingthechangesinthecurrentperiodandthereasonsforthechanges:
AccordingtotheprovisionsoftheCompanyLawandtheArticlesofAssociation,theCompanywithdrawsstatutorysurplusreservesat10%ofthenetprofit.Ifthecumulativeamountofstatutorysurplusreservesreachesmorethan50%oftheregisteredcapitaloftheCompany,nofurtherallocationisrequired.
Afterwithdrawingthestatutorysurplusprovidentfunds,theCompanymaywithdrawanysurplusprovidentfunds.Uponapproval,theanysurplusprovidentfundscanbeusedtomakeupforthelossesofpreviousyearsorincreasethesharecapital.
60.Undistributedprofits
Unit:RMB
| Item | Increaseforthecurrent | Previousperiod |
| Undistributedprofitattheendofthepreviousperiodbeforeadjustment | 1,709,513,385.76 | 1,479,706,638.53 |
| Totaladjustedundistributedprofitatthebeginningoftheperiod(increase+,decrease-) | 0.00 | 0.00 |
| Undistributedprofitatthebeginningoftheperiodafteradjustment | 1,709,513,385.76 | 1,479,706,638.53 |
| Add:Netprofitattributabletoownersoftheparentcompanyforthecurrentperiod | 147,138,482.34 | 333,178,102.37 |
| Less:withdrawaloflegalsurplusreserves | 0.00 | 0.00 |
| Commonstockdividendspayable | 162,345,682.81 | 103,371,355.14 |
| Undistributedprofitattheendoftheperiod | 1,694,306,185.29 | 1,709,513,385.76 |
Detailsofundistributedprofitatthebeginningoftheperiodafteradjustment
1)DuetotheretrospectiveadjustmentoftheAccountingStandardsforBusinessEnterprisesanditsrelevantnewprovisions,theretainedprofitatthebeginningoftheperiodwasaffectedbyRMB0.00.
2)Duetothechangeinaccountingpolicies,theretainedprofitatthebeginningoftheperiodwasaffectedbyRMB0.00.
3)Duetothecorrectionofmajoraccountingerrors,theretainedprofitatthebeginningoftheperiodwasaffectedbyRMB0.00.
4)Duetothechangeinthescopeofconsolidationcausedbythesamecontrol,theretainedprofitatthebeginningoftheperiodwasaffectedbyRMB0.00.
5)ThetotalimpactofotheradjustmentsontheretainedprofitatthebeginningoftheperiodwasRMB0.00.
61.Operatingincomeandoperatingcosts
Unit:RMB
| Item | Amountforthecurrentperiod | Amountforthepreviousperiod | ||
| Revenue | Cost | Revenue | Cost | |
| Mainbusiness | 2,070,514,213.15 | 1,304,312,255.31 | 2,356,716,526.00 | 1,512,310,635.56 |
| Otherbusinesses | 5,883,698.17 | 170,200.24 | 7,788,736.56 | 216,846.27 |
| Total | 2,076,397,911.32 | 1,304,482,455.55 | 2,364,505,262.56 | 1,512,527,481.83 |
Breakdownofoperatingincomeandoperatingcost:
Unit:RMB
| Classificationofcontracts | Divisional1 | Total | ||
| Operatingrevenue | Operatingcost | Operatingrevenue | Operatingcost | |
| Businesstype | ||||
| Inwhich: | ||||
| Watchbrandbusiness | 384,620,560.57 | 121,046,208.60 | 384,620,560.57 | 121,046,208.60 |
| Watchretailservicebusiness | 1,526,078,368.10 | 1,087,364,062.78 | 1,526,078,368.10 | 1,087,364,062.78 |
| Precisiontechnologybusiness | 88,908,749.85 | 77,451,749.76 | 88,908,749.85 | 77,451,749.76 |
| Leasingbusiness | 70,906,534.63 | 18,450,234.17 | 70,906,534.63 | 18,450,234.17 |
| Other | 5,883,698.17 | 170,200.24 | 5,883,698.17 | 170,200.24 |
| Classifiedbybusinessarea | ||||
| Inwhich: | ||||
| SouthChina | 985,168,650.24 | 623,886,476.28 | 985,168,650.24 | 623,886,476.28 |
| NorthwestChina | 299,728,304.42 | 183,377,627.30 | 299,728,304.42 | 183,377,627.30 |
| NorthChina | 67,039,768.59 | 36,074,332.54 | 67,039,768.59 | 36,074,332.54 |
| EastChina | 258,928,020.96 | 163,307,282.94 | 258,928,020.96 | 163,307,282.94 |
| NortheastChina | 175,024,033.83 | 115,936,550.01 | 175,024,033.83 | 115,936,550.01 |
| SouthwestChina | 290,509,133.28 | 181,900,186.48 | 290,509,133.28 | 181,900,186.48 |
Informationrelatedtoperformanceobligations:
SeeNoteV.37fordetails.Informationrelatedtothetransactionpriceallocatedtotheremainingperformanceobligations:
Attheendofthereportingperiod,therevenuecorrespondingtotheperformanceobligationsthathavebeensignedbutnotperformedornotcompletedisRMB0.00.Informationaboutvariableconsiderationinthecontract:
NotapplicableChangesinmajorcontractsoradjustmentstomajortransactionprices:
Notapplicable
62.Taxesandsurcharges
Unit:RMB
| Item | Amountforthecurrentperiod | Amountforthepreviousperiod |
| Consumptiontax | 913,936.41 | 1,764,057.54 |
| Urbanmaintenanceandconstructiontax | 3,480,924.40 | 4,791,269.83 |
| Educationsurcharges | 2,468,662.07 | 3,381,982.77 |
| Propertytax | 3,689,322.24 | 3,557,771.54 |
| Landusetax | 203,766.80 | 186,994.62 |
| Vehicleandvesselusagetax | 1,020.00 | 2,880.00 |
| Stampduty | 1,095,430.07 | 1,492,951.96 |
| Other | 407,395.56 | 584,547.81 |
| Total | 12,260,457.55 | 15,762,456.07 |
63.Administrativeexpenses
Unit:RMB
| Item | Amountforthecurrentperiod | Amountforthepreviousperiod |
| Employeeremuneration | 66,869,323.72 | 83,415,424.92 |
| Depreciationandamortization | 10,112,949.88 | 11,499,296.13 |
| Travelexpense | 1,603,647.72 | 2,036,742.28 |
| Officeallowance | 1,670,705.64 | 1,561,690.78 |
| Feesforhiringintermediaryagencies | 1,961,271.79 | 1,750,354.69 |
| Waterandelectricity,propertyandrentalfees | 1,784,853.95 | 1,735,898.86 |
| Businessentertainmentexpenses | 456,485.67 | 567,726.27 |
| Automobileandtransportationexpenses | 598,205.06 | 919,436.00 |
| Communicationcharges | 173,259.63 | 195,521.76 |
| Other | 3,983,229.48 | 939,637.92 |
| Total | 89,213,932.54 | 104,621,729.61 |
64.Sellingexpenses
Unit:RMB
| Item | Amountforthecurrentperiod | Amountforthepreviousperiod |
| Employeeremuneration | 181,510,506.64 | 184,843,963.06 |
| Shoppingmallsandrentalexpenses | 72,573,677.88 | 82,289,084.29 |
| Advertising,exhibitionandmarketingexpenses | 73,779,075.70 | 66,569,380.88 |
| Depreciationandamortization | 91,305,090.93 | 91,843,176.93 |
| Packingexpenses | 4,665,459.60 | 4,588,450.00 |
| Waterandelectricityandpropertymanagementfees | 11,430,327.96 | 11,172,272.71 |
| Transportcost | 2,742,617.08 | 2,972,928.76 |
| Officeallowance | 2,697,327.59 | 2,929,620.97 |
| Travelexpense | 3,648,244.84 | 3,826,254.03 |
| Businessentertainmentexpenses | 2,008,292.89 | 1,947,349.51 |
| Other | 3,424,381.29 | 3,291,148.06 |
| Total | 449,785,002.40 | 456,273,629.20 |
65.Researchanddevelopmentexpenses
Unit:RMB
| Item | Amountforthecurrentperiod | Amountforthepreviousperiod |
| Employeeremuneration | 19,756,648.13 | 22,913,768.63 |
| Sampleandmaterialcosts | 1,285,353.22 | 663,576.68 |
| Moldfees | 318,637.69 | -4,970.13 |
| Depreciationandamortization | 2,382,614.08 | 2,243,045.93 |
| Technicalcooperationfee | 1,469,929.58 | 444,619.97 |
| Other | 2,312,815.63 | 1,901,429.46 |
| Total | 27,525,998.33 | 28,161,470.54 |
66.Financialexpenses
Unit:RMB
| Item | Amountforthecurrentperiod | Amountforthepreviousperiod |
| Interestexpense | 5,169,603.47 | 6,690,859.35 |
| Less:interestincome | 2,185,535.51 | 2,432,180.03 |
| Exchangegainsandlosses | 944,148.29 | 1,335,231.32 |
| Handlingfeesandothers | 5,694,581.34 | 6,594,306.18 |
| Total | 9,622,797.59 | 12,188,216.82 |
67.Otherincome
Unit:RMB
| Sourcesofotherincome | Amountforthecurrentperiod | Amountforthepreviousperiod |
| Governmentsubsidies | 1,414,439.38 | 6,691,609.41 |
| Personalincometaxservicefeerefund | 511,868.05 | |
| AdditionaldeductionofVAT | 1,177,577.07 |
68.Netexposurehedgingincome
Notapplicable
69.GainsfromchangesinfairvalueNotapplicable
70.Investmentincome
Unit:RMB
| Item | Amountforthecurrentperiod | Amountforthepreviousperiod |
| Long-termequityinvestmentincomeaccountedforusingtheequitymethod | 89,872.06 | -1,697,481.65 |
| Interestincomefromfixeddeposits | 223,962.11 | |
| Total | 313,834.17 | -1,697,481.65 |
71.Creditimpairmentlosses
Unit:RMB
| Item | Amountforthecurrentperiod | Amountforthepreviousperiod |
| Lossesfrombaddebtsinnotesreceivable | 99,659.19 | 621,723.41 |
| Lossesfrombaddebtinaccountsreceivable | 2,486,626.83 | 3,558,352.90 |
| Lossesfrombaddebtinaccountsreceivable | 138,392.41 | 153,871.31 |
| Total | 2,724,678.43 | 4,333,947.62 |
72.Assetimpairmentlosses
Unit:RMB
| Item | Amountforthecurrentperiod | Amountforthepreviousperiod |
| 1.Inventorydepreciationlossandcontractperformancecostimpairmentloss | 28,336.82 | |
| 2.Lossesfromimpairmentoflong-termequityinvestments | ||
| 3.Lossesfromimpairmentofinvestmentproperties | ||
| 4.Lossesfromimpairmentoffixedassets | ||
| 5.Lossesfromimpairmentofprojectmaterials | ||
| 6.Lossesfromimpairmentofconstructioninprogress | ||
| 7.Lossesfromimpairmentofproductivebiologicalassets | ||
| 8.Lossesfromimpairmentofoilandgasassets | ||
| 9.Lossesfromimpairmentof |
| intangibleassets | |
| 10.Lossesfromimpairmentofgoodwill | |
| 11.Lossesfromimpairmentofcontractassets | |
| 12.Others | |
| Total | 28,336.82 |
73.Incomefromassetdisposals
Unit:RMB
| Sourceofincomefromassetsdisposal | Amountforthecurrentperiod | Amountforthepreviousperiod |
| Gainsorlossesfromdisposaloffixedassets | 2,871,991.80 | -89,254.33 |
| Gainsorlossesondisposalofright-of-useassets | 34,218.87 | 12,564.60 |
| Total | 2,906,210.67 | -76,689.73 |
74.Non-operatingincome
Unit:RMB
| Item | Amountforthecurrentperiod | Amountforthepreviousperiod | Amountincludedinthecurrentnon-recurringprofitandloss |
| Incomefromliquidateddamages | 685,500.07 | 286,740.28 | 685,500.07 |
| Payablenotrequiredtobepaid | 250,659.03 | 226,699.03 | 250,659.03 |
| Incomefromrightsprotectionandcompensation | 397,868.50 | 397,868.50 | |
| Other | 44,111.25 | 83,084.52 | 44,111.25 |
| Total | 1,378,138.85 | 596,523.83 | 1,378,138.85 |
75.Non-operatingexpenditure
Unit:RMB
| Item | Amountforthecurrentperiod | Amountforthepreviousperiod | Amountincludedinthecurrentnon-recurringprofitandloss |
| Lossesfromnon-monetaryassetexchange | |||
| Externaldonation | 243,626.35 | 243,626.35 | |
| Finesandoverduefines | 1,348.47 | 208,833.38 | 1,348.47 |
| Liquidateddamages | 4,075.11 | 54,416.71 | 4,075.11 |
| Other | 29,783.42 | 28,351.09 | 29,783.42 |
| Total | 278,833.35 | 291,601.18 | 278,833.35 |
76.Incometaxexpense
(1)Tableofincometaxexpense
Unit:RMB
| Item | Amountforthecurrentperiod | Amountforthepreviousperiod |
| Currentincometaxexpenses | 41,957,212.02 | 52,147,601.16 |
| Deferredincometaxexpense | 4,587,823.09 | 4,983,918.40 |
| Total | 46,545,035.11 | 57,131,519.56 |
(2)Accountingprofitandincometaxexpenseadjustmentprocess
Unit:RMB
| Item | Amountforthecurrentperiod |
| Grossprofit | 193,683,517.45 |
| Incometaxexpensescalculatedatstatutory/applicabletaxrate | 48,420,879.36 |
| Effectofdifferenttaxratesapplicabletosubsidiaries | -1,174,196.24 |
| Effectofadjustingincometaxinpriorperiods | 526,448.25 |
| Effectofnon-taxableincome | -22,468.02 |
| Effectofnon-deductiblecosts,expensesandlosses | 1,066,134.58 |
| Taxpaymenteffectofmarkupdeductionofresearchanddevelopmentexpenses("-") | -2,271,762.82 |
| Incometaxexpense | 46,545,035.11 |
77.Othercomprehensiveincome
SeeNoteVII.57fordetails.
78.Cashflowstatementitems
(1)CashrelatedtooperatingactivitiesCashreceivedfromotheroperatingactivities
Unit:RMB
| Item | Amountforthecurrentperiod | Amountforthepreviousperiod |
| Depositsandmargin | 3,891,700.17 | 4,310,663.92 |
| Governmentsubsidies | 1,685,999.41 | 6,623,312.69 |
| Commoditypromotionexpenses | 3,815,826.53 | 6,824,544.07 |
| Interestincome | 2,197,067.47 | 2,432,180.03 |
| Pettycash | 1,656,985.54 | 3,098,754.09 |
| Other | 9,515,423.83 | 14,009,396.39 |
| Total | 22,763,002.95 | 37,298,851.19 |
NotesofcashreceivedfromotheroperatingactivitiesNotapplicableOthercashpaymentsrelatingtooperatingactivities
Unit:RMB
| Item | Amountforthecurrentperiod | Amountforthepreviousperiod |
| Depositsandmargin | 4,378,182.27 | 8,763,786.62 |
| Pettycash | 3,510,492.16 | 6,711,750.04 |
| Periodexpense | 171,248,817.83 | 162,631,345.85 |
| Other | 6,277,130.46 | 4,342,740.34 |
| Total | 185,414,622.72 | 182,449,622.85 |
NotesofcashpaidforotheroperatingactivitiesNotapplicable
(2)CashrelatedtoinvestingactivitiesCashreceivedfromotherinvestingactivities
Unit:RMB
| Item | Amountforthecurrentperiod | Amountforthepreviousperiod |
| Recoveryoffixeddeposits | 120,049,969.61 | |
| Total | 120,049,969.61 |
CashreceivedfromsignificantinvestingactivitiesNotapplicableCashpaidforotherinvestingactivities
Unit:RMB
| Item | Amountforthecurrentperiod | Amountforthepreviousperiod |
| Purchaseoffixeddepositproducts | 165,092,806.07 | |
| Total | 165,092,806.07 |
CashpaidforimportantinvestingactivitiesNotapplicable
(3)CashrelatedtofinancingactivitiesCashreceivedfromotherfinancingactivitiesNotapplicableCashpaidforotherfinancingactivities
Unit:RMB
| Item | Amountforthecurrentperiod | Amountforthepreviousperiod |
| Leasecashoutflow | 58,174,682.07 | 56,886,698.46 |
| Paymentforsharerepurchase | 79,409.91 | 35,483,644.86 |
| Total | 58,254,091.98 | 92,370,343.32 |
Notesofcashpaidforotherfinancingactivities:
NotapplicableChangesinliabilitiesarisingfromfinancingactivities:
Notapplicable
(4)NotestonetpresentationofcashflowsNotapplicable
(5)MajoractivitiesandfinancialimpactsthatdonotinvolvecurrentcashreceiptsandpaymentsbutaffectthefinancialpositionoftheenterpriseormayaffectthecashflowsoftheenterpriseinthefutureNotapplicable
79.Supplementaryinformationtothecashflowstatement
(1)Supplementaryinformationtothecashflowstatement
Unit:RMB
| Additionalinformation | Amountincurrentperiod | Amountofpreviousperiod |
| 1.Reconciliationofnetprofittocashflowsfromoperatingactivities | ||
| Netprofit | 147,138,482.34 | 187,395,067.23 |
| Plus:provisionforassetimpairment | -2,753,015.25 | -4,333,947.62 |
| Depreciationoffixedassets,consumptionofoilandgasassetsandproductivebiologicalassets | 21,248,775.43 | 20,546,291.19 |
| Depreciationofright-of-useasset | 52,808,948.49 | 50,579,624.79 |
| Amortizationofintangibleassets | 1,821,341.36 | 1,853,819.12 |
| Long-termunamortizedexpenses | 37,505,025.77 | 46,620,603.57 |
| Lossesfromdisposaloffixedassets,intangibleassetsandotherlong-termassets(incometobelistedwith"-") | -2,906,210.67 | 76,689.73 |
| Lossesfromdiscardingoffixedassets(incometobelistedwith"-") | ||
| Lossesfromfairvaluechanges(incometobelistedwith"-") | ||
| Financialexpenses(incometobelistedwith"-") | 6,113,751.76 | 8,026,090.67 |
| Investmentloss(incometobelistedwith"-") | -313,834.17 | 1,697,481.65 |
| Decreaseindeferredincometaxassets(increasetobelistedwith"-") | 4,333,902.49 | 3,681,918.71 |
| Increaseindeferredincometaxliabilities(decreasetobelistedwith"-") | 253,920.60 | -57,196.06 |
| Decreaseininventory(increasetobelistedwith"-") | -25,957,816.56 | 56,107,015.08 |
| Decreaseinoperatingreceivables(increasetobelistedwith | -29,498,881.56 | -73,392,204.29 |
| "-") | ||
| Increaseinoperatingpayables(decreasetobelistedwith"-") | -73,263,593.51 | 45,858,589.85 |
| Other | ||
| NetCashFlowsfromOperatingActivities | 136,530,796.52 | 344,659,843.62 |
| II.Significantinvestingandfinancingactivitiesnotrelatedtocashdepositandwithdrawal | ||
| Conversionofdebtintocapital | ||
| Convertiblecorporatebondsduewithinoneyear | ||
| Fixedassetsunderfinancinglease | ||
| 3.Netchangeincashandcashequivalents | ||
| Endingbalanceofcash | 404,356,009.13 | 519,368,795.12 |
| Less:Beginningbalanceofcash | 504,629,153.71 | 313,747,463.64 |
| Add:Endingbalanceofcashequivalents | ||
| Less:Beginningbalanceofcashequivalents | ||
| Netincreaseincashandcashequivalents | -100,273,144.58 | 205,621,331.48 |
(2)Netcashpaidforacquisitionofsubsidiariesinthecurrentperiod
Notapplicable
(3)NetcashreceivedfromdisposalofsubsidiariesinthecurrentperiodNotapplicable
(4).Compositionofcashandcashequivalents
Unit:RMB
| Item | EndingBalance | Openingbalance |
| I.Cash | 404,356,009.13 | 504,629,153.71 |
| Including:Pettycash | 107,494.56 | 178,996.87 |
| Bankdepositsavailableforimmediatepayment | 402,139,278.38 | 503,187,176.88 |
| Othermonetaryfundsavailableforimmediatepayment | 2,109,236.20 | 1,262,979.96 |
| II.Cashequivalents | ||
| Including:bondinvestmentduewithinthreemonths | ||
| III.Closingbalanceofcashandcashequivalents | 404,356,009.13 | 504,629,153.71 |
| Including:cashandcashequivalentsrestrictedforusebytheparentcompanyorsubsidiarieswithinthegroup | 1,951,883.15 | 1,202,601.86 |
(5)Thesituationwherethescopeofuseislimitedbutstillbelongstothepresentationofcashandcashequivalents
Unit:RMB
| Item | Amountincurrentperiod | Amountofpreviousperiod | Reasonsforremainingcashandcashequivalents |
| Cashinbank | 1,951,883.15 | 1,202,601.86 | Theremittanceoffundsdepositedinoverseasaccountsofthecompany'soverseassubsidiariesisrestricted,whichdoesnotaffectthedailyuse. |
| Total | 1,951,883.15 | 1,202,601.86 |
(6)Cashnotbelongingtocashandcashequivalents
Notapplicable
(7)DescriptionofothermajoractivitiesNotapplicable
80.NotestoitemsofthestatementofchangesinOwners'equityNotapplicable
81.Foreigncurrencymonetaryitems
(1)Foreigncurrencymonetaryitems
Unit:RMB
| Item | Foreigncurrencyendingbalance | Conversionexchangerate | BalanceconvertedintoRMBattheendoftheperiod |
| Cashandbankbalances | 6,824,404.89 | ||
| Including:USD | 273,845.27 | 7.1268 | 1,951,640.49 |
| EUR | 181,785.03 | 7.6617 | 1,392,782.33 |
| HKD | 1,671,648.98 | 0.9127 | 1,525,680.59 |
| CHF | 245,913.79 | 7.9471 | 1,954,301.48 |
| Accountsreceivable | 6,181,874.23 | ||
| Including:USD | 406,931.54 | 7.1268 | 2,900,119.70 |
| EUR | 7.6617 | ||
| HKD | 3,390,101.20 | 0.9127 | 3,094,077.56 |
| CHF | 23,615.78 | 7.9471 | 187,676.97 |
| Otherreceivables | 789,748.94 | ||
| Including:HKD | 769,061.82 | 0.9127 | 701,907.34 |
| CHF | 11,053.29 | 7.9471 | 87,841.60 |
| Accountspayable | 813,157.24 | ||
| Including:USD | 1,019.00 | 7.1268 | 7,262.21 |
| HKD | 754,624.08 | 0.9127 | 688,730.30 |
| CHF | 14,743.08 | 7.9471 | 117,164.73 |
| Otherpayables | 627,505.26 | ||
| Including:USD | 9,339.10 | 7.1268 | 66,557.92 |
| HKD | 252,649.49 | 0.9127 | 230,588.13 |
| CHF | 41,569.78 | 7.9471 | 330,359.20 |
| Long-termloans | |||
| Including:USD | |||
| EUR | |||
| HKD |
(2)Descriptionofoverseasoperatingentities,includingforimportantoverseasoperatingentities,themainoverseasbusinessplace,functionalcurrencyandselectionbasisshallbedisclosed,andthereasonsforchangesinfunctionalcurrencyshallalsobedisclosed.Notapplicable
82.Leasing
(1)TheCompanyasthelesseeSeeNote25,Note47andNote79fortheCompany'sright-of-useassets,leaseliabilitiesandtotalcashoutflowrelatedtoleases.TheCompany,asthelessee,isincludedintheprofitandlossasfollows:
| Item | Amountforthecurrentperiod | Amountforthepreviousperiod |
| Interestonleaseliabilities | 2,155,222.71 | 2,222,605.26 |
| Short-termleasesexpenses | 76,946.63 | 496,529.80 |
| Low-valueassetleasesexpenses | ||
| Variableleasepaymentsnotincludedinthemeasurementofleaseliabilities | 38,721,311.76 | 45,887,165.30 |
| Revenuefromsubleasingright-of-useassets | ||
| Saleandleasebacktransactions |
TheCompany,asthelessee,otherinformationasfollows:
LeasingactivitiesTheCompany'sleasesareallhousesandbuildings,includingshort-termleasessimplifiedandtreated,andleasesotherthanshort-termleasesrecognizedastheright-of-useassetsandleaseliabilities.Variableleasepaymentsnotincludedinthemeasurementofleaseliabilities
1)VariableleasepaymentsThelesseehasalargenumberofrealestateleasesforretailstores,andmanyleasescontainvariablepaymenttermslinkedtostoresales.Manyofourrealestateleasescontainvariableleasepaymenttermslinkedtothesalesvolumeoftheleasedstores.Wherepossible,theCompanyusesthesetermstomatchleasepaymentswithstoresthatgeneratemorecashflows.Forindividualstores,upto100%oftheleasepaymentcanbebasedonvariablepaymentterms,andthesalesscaleusedisrelativelylarge.Insomecases,variablepaymenttermsalsoincludethebottomlineandupperlimitofannualpayment
In1H24,thevariableleasepaymentsincludedinthecurrentprofitandlosswereRMB38,721,311.76.
2)RenewaloptionManyoftheleasecontractssignedbytheCompanycontainrenewaloptions,andtheCompanyhasreasonablyestimatedtheexerciseoftherenewaloptionswhenmeasuringtheleaseliabilitiestodeterminetheleaseterm.
3)TerminationofleaseoptionSomeoftheleasecontractssignedbytheCompanycontaintheoptiontoterminatethelease.andtheCompanyhasreasonablyestimatedtheexerciseoftheterminationofleaseoptionswhenmeasuringtheleaseliabilitiestodeterminetheleaseterm.
4)ResidualvalueguaranteeThereisnoresidualvalueguaranteefortheCompany'sleases.
5)LeasecommittedbythelesseebutnotyetstartedThereisnoleasecommittedbythelesseebutnotyetstartedSimplifiedtreatmentofshort-termleasesorleasingfeesforlow-valueassetsTheCompany'sshort-termleases,whicharesimplifiedinprocessing,includeleaseswithatermofnomorethan12monthsandwithoutpurchaseoptions,aswellasleasescompletedwithin12monthsaftertheinitialimplementationof"AccountingStandardforBusinessEnterprisesNo.21-Leases."In1H24,theshort-termrentalexpensesincludedinthecurrentprofitandlosswereRMB76,946.63.CircumstancesinvolvingsaleandleasebacktransactionsNotapplicable
(2)TheCompanyasthelessorOperatingleaseasalessor
Unit:RMB
| Item | Leasingincome | Including:incomerelatedtovariableleasepaymentsnotincludedintheleasereceipts |
| Leaseofhousesandbuildings | 70,906,534.63 | 0.00 |
| Total | 70,906,534.63 | 0.00 |
FinancingleaseasalessorNotapplicableUndiscountedleasereceiptsforeachofthenextfiveyearsNotapplicableReconciliationtableofundiscountedleasereceiptsandnetleaseinvestmentNotapplicable
(3)Recognizeprofitorlossonfinanceleasesalesasamanufacturerordistributor
Notapplicable
83.Dataresources
Notapplicable
84.Others
8.R&Dexpenditure
Unit:RMB
| Item | Amountforthecurrentperiod | Amountforthepreviousperiod |
| Employeeremuneration | 19,756,648.13 | 22,913,768.63 |
| Sampleandmaterialcosts | 1,285,353.22 | 663,576.68 |
| Moldfees | 318,637.69 | -4,970.13 |
| Depreciationandamortization | 2,382,614.08 | 2,243,045.93 |
| Technicalcooperationfee | 1,469,929.58 | 444,619.97 |
| Other | 2,312,815.63 | 1,901,429.46 |
| Total | 27,525,998.33 | 28,161,470.54 |
| Including:ExpensedR&Dexpenditures | 27,525,998.33 | 28,161,470.54 |
| CapitalizedR&Dexpenditures | 0.00 | 0.00 |
1.R&Dprojectseligibleforcapitalization
Notapplicable
2.ImportantoutsourcingprojectsunderresearchNotapplicable
9.Changesinthescopeofconsolidation
1.Businesscombinationnotundercommoncontrol
(1)BusinesscombinationnotundercommoncontroloccurredinthecurrentperiodNotapplicable
(2)CombinationcostsandgoodwillNotapplicable
(3)IdentifiableassetsandliabilitiesoftheacquireeontheacquisitiondateNotapplicable
(4)Gainsorlossesarisingfromthere-measurementofequityheldbeforetheacquisitiondateatfairvalueWhetherthereisatransactionthatachievesthebusinesscombinationstepbystepthroughmultipletransactionsandobtainsthecontrolduringthereportingperiodNo
(5)Relevantexplanationsfortheinabilitytoreasonablydeterminetheacquisitionconsiderationorthefairvalueofidentifiableassetsandliabilitiesoftheacquireeattheacquisitiondateortheendofthereportingperiodofcombination.Notapplicable
(6)OthernotesNotapplicable
2.Businesscombinationundercommoncontrol
(1)BusinesscombinationundercommoncontroloccurredinthecurrentperiodNotapplicable
(2)CombinationcostNotapplicable
(3)Bookvalueofthecombinedparty'sassetsandliabilitiesonthecombinationdateNotapplicable
3.ReverseacquisitionNotapplicable
4.DisposalofsubsidiariesWhetherthereisanytransactionoreventthatresultsinthelossofcontroloverthesubsidiariesinthecurrentperiodNoWhetherthereisasituationwheretheinvestmentinsubsidiariesisdisposedofthroughmultipletransactionsandthecontrolislostinthecurrentperiodNo
5.ChangesinthescopeofconsolidationforotherreasonsNotapplicable
6.OthersNotapplicable
10.Equityinterestsinotherentities
1.Equityinsubsidiaries
(1)Compositionoftheenterprisegroup
Unit:RMB
| Nameofsubsidiaries | RegisteredCapital | Mainbusinesspremise | Registrationplace | Natureofbusiness | Percentageofshares | Methodofacquisition | |
| Direct | Indirect | ||||||
| ShenzhenHarmonyWorldWatchCentreCo.,Ltd. | 600,000,000.00 | Shenzhen | Shenzhen | Commerce | 100.00% | Establishmentorinvestment | |
| FIYTASalesCo.,Ltd. | 450,000,000.00 | Shenzhen | Shenzhen | Commerce | 100.00% | Establishmentorinvestment | |
| ShenzhenFIYTAPrecisionTechnologyCo.,Ltd. | 180,000,000.00 | Shenzhen | Shenzhen | Manufacturing | 99.00% | 1.00% | Establishmentorinvestment |
| ShenzhenFIYTASTDCo.,Ltd. | 50,000,000.00 | Shenzhen | Shenzhen | Manufacturing | 100.00% | Establishmentorinvestment | |
| ShenzhenHarmonyWorldWatchCentreCo.,Ltd. | 10,000,000.00 | Sanya | Sanya | Commerce | 100.00% | Establishmentorinvestment | |
| ShenzhenXunhangPrecisionTechnologyCo.,Ltd. | 10,000,000.00 | Shenzhen | Shenzhen | Manufacturing | 100.00% | Establishmentorinvestment | |
| EmileChourietHorologe(Shenzhen)Co.,Ltd. | 41,355,200.00 | Shenzhen | Shenzhen | Commerce | 100.00% | Establishmentorinvestment | |
| LiaoningHengdaruiCommerceandTradeCo.,Ltd. | 51,000,000.00 | Shenyang | Shenyang | Commerce | 100.00% | Businesscombinationundercommoncontrol | |
| Temporal(Shenzhen)Co.,Ltd. | 5,000,000.00 | Shenzhen | Shenzhen | Commerce | 100.00% | Establishmentorinvestment | |
| ShenzhenHarmonyE-commerceCo.,Ltd. | 10,000,000.00 | Shenzhen | Shenzhen | Commerce | 100.00% | Establishmentorinvestment | |
| FIYTA(HONGKONG)LIMITED | 137,737,520.00 | HongKong | HongKong | Commerce | 100.00% | Establishmentorinvestment | |
| MontresChourietSA | 97,958,426.10 | Switzerland | Switzerland | Manufacturing | 100.00% | Businesscombinationnotundercommoncontrol | |
Descriptionoftheshareholdingratiointhesubsidiarythatisdifferentfromthevotingrightsratio:
Notapplicable
Basisforholdinghalforlessofthevotingrightsbutstillcontrollingtheinvestee,andholdingmorethanhalfofthevotingrightsbutnotcontrollingtheinvestee:
NotapplicableForimportantstructuredentitiesincludedinthescopeofconsolidation,basisforcontrol:
NotapplicableBasisfordeterminingwhetherthecompanyisanagentoraprincipal:
Notapplicable
(2)Significantnon-wholly-ownedsubsidiariesNotapplicable
(3)Mainfinancialinformationofsignificantnon-wholly-ownedsubsidiariesNotapplicable
(4)MajorrestrictionsontheuseoftheassetsoftheenterprisegroupandthesettlementofthedebtsoftheenterprisegroupNotapplicable
(5)FinancialsupportorothersupportprovidedtostructuredentitiesincludedinthescopeofconsolidatedfinancialstatementsNotapplicable
2.TransactionsofchangesintheshareofOwners'equityinsubsidiariesandstillcontrolthesubsidiaries
(1)DescriptionofchangesintheshareofOwners'equityinsubsidiariesNotapplicable
(2)ImpactofthetransactiononminorityequityandequityattributabletoshareholdersNotapplicable
3.Equityinjointventurearrangementsorassociates
(1)Importantjointventuresorassociatedenterprises
| Nameofjointventureorassociatedenterprise | Mainbusinesspremise | Registrationplace | Natureofbusiness | Percentageofshares | Accountingtreatmentofinvestmentsinjointventuresorassociatedenterprise | |
| Direct | Indirect | |||||
| ShanghaiWatchIndustryCo.,Ltd. | Shanghai | Shanghai | Commerce | 25.00% | Equitymethod |
Descriptionofthedifferentshareholdingscalesofjointventuresorassociatedenterprisesfromthevotingscale:
NotapplicableBasisforholdinglessthan20%ofvotingrightsbuthavingsignificantinfluence,orholding20%ormoreofvotingrightsbutnothavingsignificantinfluence:
Notapplicable
(2)MainfinancialinformationofimportantjointventuresNotapplicable
(3)Mainfinancialinformationofimportantassociatedenterprise
Unit:RMB
| Endingbalance/amountincurredinthecurrentperiod | Beginningbalance/amountincurredinthepreviousperiod |
Currentassets
| Currentassets | 185,298,448.35 | 165,796,119.65 |
| Non-currentassets | 13,596,917.44 | 16,753,785.07 |
| Totalassets | 198,895,365.79 | 182,549,904.72 |
| Currentliabilities | 76,767,544.41 | 60,781,571.60 |
| Non-currentliabilities | ||
| Totalliabilities | 76,767,544.41 | 60,781,571.60 |
| Minorityinterests | ||
| Equityattributabletoshareholdersoftheparentcompany | 122,127,821.38 | 121,768,333.12 |
| Shareofnetassetscalculatedbyshareholdingscale | 30,531,955.34 | 30,442,083.28 |
| Adjustmentmatters | 21,420,524.02 | 21,420,524.02 |
| -Goodwill | 21,420,524.02 | 21,420,524.02 |
| -Unrealizedprofitsfrominternaltransactions | ||
| -Others | ||
| Bookvalueofequityinvestmentinassociatedenterprise | 51,952,479.36 | 51,862,607.30 |
| Fairvalueofequityinvestmentsinassociatedenterprisesatpubliclyquotedprices | ||
| Operatingrevenue | 58,283,918.10 | 63,610,760.47 |
| Netprofit | 359,488.26 | -6,789,926.61 |
| Netprofitsfromdiscontinuedoperations | ||
| Othercomprehensiveincome | ||
| Totalcomprehensiveincome | 359,488.26 | -6,789,926.61 |
| Dividendsreceivedfromassociated |
(4)Summaryfinancialinformationofinsignificantjointventuresandassociatedenterprise
Notapplicable
(5)ExplanationonsignificantrestrictionsontheabilityofjointventuresorassociatedenterprisestotransferfundstotheCompanyNotapplicable
(6)ExcesslossesincurredbyjointventuresorassociatedenterpriseNotapplicable
(7)UnrecognizedcommitmentsrelatedtoinvestmentinjointventuresNotapplicable
(8)ContingentliabilitiesrelatedtoinvestmentsinjointventuresorassociatedenterpriseNotapplicable
4.Importantjointoperation
Notapplicable
5.EquityinstructuredentitiesnotincludedinthescopeofconsolidatedfinancialstatementsNotapplicable
6.OthersNotapplicable
11.Governmentsubsidies
1.GovernmentsubsidiesrecognizedasreceivableattheendofthereportingperiodNotapplicable
2.Liabilityitemsinvolvinggovernmentsubsidies
Unit:RMB
enterpriseinthecurrentyearAccountingitem
| Accountingitem | Openingbalance | Amountofnewsubsidiesin | Amountincludedinnon- | Amounttransferredtoother | Otherchangesinthecurrent | EndingBalance | Relatedtoassets/income |
| thecurrentperiod | operatingincomeinthecurrentperiod | incomeinthecurrentperiod | period | ||||
| Deferredincome | 952,785.69 | 952,785.69 | Relatedtoassets |
3.Governmentsubsidiesincludedinthecurrentperiod'sprofitandloss
Unit:RMB
| Accountingitem | Amountforthecurrentperiod | Amountforthepreviousperiod |
| Otherincome | 1,414,439.38 | 6,691,609.41 |
12.Risksrelatedtofinancialinstruments
1.VariousrisksarisingfromfinancialinstrumentsTheCompany'smainfinancialinstrumentsincludecash,equityinvestment,borrowings,accountsreceivable,accountspayable,etc.Indailyactivities,itfacestherisksofvariousfinancialinstruments,mainlyincludingcreditrisk,liquidityriskandmarketrisk.TherisksassociatedwiththesefinancialinstrumentsandtheriskmanagementpoliciesadoptedbytheCompanytomitigatetheserisksareasfollows:
TheBoardofDirectorsisresponsibleforplanningandestablishingtheriskmanagementframeworkoftheCompany,formulatingtheriskmanagementpoliciesandrelevantguidelinesoftheCompany,andsupervisingtheimplementationofriskmanagementmeasures.TheCompanyhasformulatedriskmanagementpoliciestoidentifyandanalyzetherisksfacedbytheCompany.Theseriskmanagementpoliciesclearlystipulatespecificrisksandcovermanyaspectssuchasmarketrisk,creditriskandliquidityriskmanagement.TheCompanyregularlyassessesthechangesinthemarketenvironmentandtheCompany'soperatingactivitiestodecidewhethertoupdatetheriskmanagementpoliciesandsystems.TheCompany'sriskmanagementiscarriedoutbytheRiskManagementCommitteeinaccordancewiththepoliciesapprovedbytheBoardofDirectors.TheRiskManagementCommitteeidentifies,evaluatesandmitigatesrelevantrisksthroughclosecooperationwithotherbusinessdepartmentsoftheCompany.TheinternalAuditDepartmentoftheCompanyconductsregularauditsonriskmanagementcontrolsandprocedures,andreportstheauditresultstotheAuditCommitteeoftheCompany.TheCompanydiversifiestherisksoffinancialinstrumentsthroughappropriatediversifiedinvestmentsandbusinesscombinations,andreducestherisksofconcentrationinasingleindustry,aspecificregionoraspecificcounterpartybyformulatingcorrespondingriskmanagementpolicies.
1.CreditriskCreditriskreferstotheriskoffinanciallosstothecompanyresultingfromacounterparty'sfailuretofulfillcontractualobligations.Managementhasestablishedappropriatecreditpoliciesandcontinuouslymonitorstheexposuretocreditrisk.TheCompanyhasadoptedapolicyofonlydealingwithcreditworthycounterparties.Inaddition,theCompanyassessescustomers'creditworthinessbasedontheirfinancialcondition,thepossibilityofobtainingguaranteesfromthirdparties,credithistory,andotherfactorssuchascurrentmarketconditions,andsetscorrespondingcreditterms.TheCompanycontinuouslymonitorsthebalancesandrecoveryofnotesreceivableandaccountsreceivable.Forcustomerswithpoorcredithistory,thecompanyusesmeasuressuchaswrittenreminders,shorteningcreditterms,orcancelingcredittermstoensurethatthecompanydoesnotfacesignificantcreditlosses.Inaddition,theCompanyreviewstherecoveryoffinancialassetsoneachdateofBalanceSheettoensurethattherelevantfinancialassetshavebeenfullyprovisionedforexpectedcreditlosses.
TheCompany'sotherfinancialassetsincludecash,accountsreceivable,andotherreceivables.Thecreditriskofthesefinancialassetsarisesfromcounterpartydefault,withthemaximumcreditriskexposurebeingthecarryingamountofeachfinancialassetasstatedonthebalancesheet.TheCompanyhasnotprovidedanyotherguaranteesthatmayexposetheCompanytocreditrisks.TheCompany'scashisprimarilydepositedwithstate-controlledbanksandotherlargeandmedium-sizedcommercialbanks.Managementbelievesthatthesecommercialbankshavehighcreditworthinessandsoundfinancialconditions,posingnosignificantcreditrisk,andarenotexpectedtoincuranysubstantiallossesduetocounterpartydefault.TheCompany'spolicyistocontroltheamountofdepositsheldwithvariousreputablefinancialinstitutionsbasedontheirmarketreputation,operatingscale,andfinancialbackground,inordertolimitthecreditriskexposuretoanysinglefinancialinstitution.AspartofthemanagementoftheCompany'screditriskassets,theCompanyusesagingtoassesstheimpairmentlossofaccountsreceivableandotherreceivables.TheCompany'saccountsreceivableandotherreceivablesinvolvealargenumberofcustomers.Theaginginformationcanreflectthesecustomers'abilitytopayaccountsreceivableandotherreceivables,aswellastheriskofbaddebts.TheCompanycalculatesthehistoricalactualbaddebtratefordifferentagingperiodsbasedonhistoricaldataandadjustsitconsideringforward-lookinginformation,suchasforecastsofcurrentandfutureeconomicconditions,includingnationalGDPgrowthandnationalmonetarypolicy,toderivetheexpectedlossrate.Forlong-termreceivables,theCompanymakesareasonableassessmentoftheexpectedcreditlossaftercomprehensivelyconsideringthesettlementperiod,thepaymentperiodagreedinthecontract,thedebtor'sfinancialsituationandtheeconomicdynamicsofthedebtor'sindustry,andconsideringtheabove-mentionedforward-lookinginformation.
AsofJune30,2024,thebookbalanceandexpectedcreditlossofrelatedassetsareasfollows:
| Item | Bookbalance | Impairmentprovision |
| Notesreceivable | 16,654,813.30 | 316,420.99 |
| Accountsreceivable | 387,392,159.53 | 31,908,693.72 |
| Otherreceivables | 63,646,417.76 | 4,209,877.23 |
| Total | 467,693,390.59 | 36,434,991.94 |
DuetotheCompanyhavingawiderangeofcustomers,thereisnosignificantconcentrationofcreditrisk.AsofJune30,2024,theaccountsreceivableoftheCompany'stopfivecustomersaccountedfor21.01%(in2023:
21.42%)oftheCompany'stotalaccountsreceivable.
2.LiquidityriskLiquidityriskreferstotheriskofshortageoffundswhentheCompanyfulfillsitsobligationstosettlebydeliveringcashorotherfinancialassets.ThemembercompaniessubordinatetotheCompanyareresponsiblefortheirowncashflowforecasts.Thecompanycontinuouslymonitorstheshort-termandlong-termfundingneedsatthecorporatelevelbasedonthecashflowforecastsofitsmemberenterprisestoensureadequatecashreserves.Additionally,itcontinuouslymonitorscompliancewithloanagreementsandsecurescommitmentsfrommajorfinancialinstitutionstoprovidesufficientstandbyfundstomeetshort-termandlong-termfundingneeds.Inaddition,theCompanyenteredintofinancinglinecreditagreementswithmajorbusinessbankstoprovidesupportfortheCompanytoperformitsobligationsrelatedtocommercialpaper.AsofJune30,2024,thecompanyhasbankcreditlinesprovidedbyanumberofdomesticbanks,amountingtoRMB2,348,784,900,ofwhich:theusedcreditamountisRMB458,784,900.
AsofJune30,2024,theCompany'sfinancialliabilitiesandoff-balancesheetguaranteeitemsarepresentedintermsofundiscountedcontractualcashflowsaccordingtotheremainingtermofthecontractasfollows:
| Item | Endingbalance(RMB10,000) | ||||
| Within1year | 1-2years | 2-3years | Morethan3years | Total | |
| Short-termloans | 32,020.73 | 32,020.73 | |||
| Accountspayable | 13,137.23 | 13,137.23 | |||
| Otherpayables | 11,079.31 | 11,079.31 | |||
| Total | 56,237.27 | - | - | - | 56,237.27 |
3.Marketrisk
1)ExchangerateriskExceptthatthesubsidiaryestablishedinHongKongholdsassetswithHKDasthesettlementcurrencyandthesub-subsidiaryestablishedinSwitzerlandholdsassetswithCHFasthesettlementcurrency,othermainbusinessactivitiesoftheCompanyaremainlysettledwithRMB.However,theCompany'srecognizedforeigncurrencyassetsandliabilitiesandfutureforeigncurrencytransactions(foreigncurrencyassets,liabilitiesandforeigncurrencytransactionsaremainlydenominatedwithHKDandCHF)stillhaveexchangeraterisks.AsofJune30,2024,theamountsofforeigncurrencyfinancialassetsandforeigncurrencyfinancialliabilitiesheldbytheCompanyconvertedintoRMBarelistedasfollows:
| Item | EndingBalance | ||||
| HKDitems | USDitems | Euroitems | CHFitems | Total | |
| Foreigncurrencyfinancialassets: | |||||
| Cashandbankbalances | 1,525,680.59 | 1,951,640.49 | 1,392,782.33 | 1,954,301.48 | 6,824,404.89 |
| Accountsreceivable | 3,094,077.56 | 2,900,119.70 | - | 187,676.97 | 6,181,874.23 |
| Otherreceivables | 701,907.34 | 87,841.60 | 789,748.94 | ||
| Sub-total | 5,321,665.49 | 4,851,760.19 | 1,392,782.33 | 2,229,820.05 | 13,796,028.05 |
| Foreigncurrencyfinancialliabilities: | |||||
| Accountspayable | 688,730.30 | 7,262.21 | 117,164.73 | 813,157.24 | |
| Otherpayables | 230,588.13 | 66,557.92 | 330,359.20 | 627,505.26 | |
| Sub-total | 919,318.43 | 73,820.13 | - | 447,523.93 | 1,440,662.50 |
Sensitivityanalysis:
AsofJune30,2024,fortheCompany'svariousforeigncurrencyfinancialassetsandforeigncurrencyfinancialliabilities,iftheRMBappreciatesordepreciatesby5%againstforeigncurrenciesandotherfactorsremainunchanged,theCompanywillreduceorincreasethenetprofitbyaboutRMB617,700(aboutRMB129,500in2023).
2)Interestraterisk
TheCompany'sinterestrateriskmainlyarisesfrombankborrowings.FinancialliabilitieswithfloatinginterestratesexposetheCompanytocashflowinterestraterisk,andfinancialliabilitieswithfixedinterestrateexposetheCompanytofairvalueinterestraterisk.TheCompanydeterminestherelativescaleoffixed-rateandfloating-ratecontractsaccordingtothemarketenvironmentatthattime.
TheCompany'sFinancialDepartmentcontinuouslymonitorscompany'sinterestratelevel.Anincreaseininterestrateswillraisethecostofnewinterest-bearingdebtandtheinterestexpensesonthecompany'sexistingfloating-ratedebt,significantlyadverselyaffectingthecompany'sfinancialperformance.Managementwillmaketimelyadjustmentsbasedonthelatestmarketconditionstomitigateinterestraterisk.
Sensitivityanalysis:
AsofJune30,2024,iftheborrowinginterestratecalculatedatthefloatinginterestrateincreasesordecreasesby50basispoints,whileotherfactorsremainunchanged,theCompany'snetprofitwilldecreaseorincreasebyaboutRMB800,000(aboutRMB307,300in2023).
ThesensitivityanalysisaboveassumesthatinterestratechangeshaveoccurredonthedateofBalanceSheetandhavebeenappliedtoallloansobtainedbytheCompanyatfloatinginterestrates.
2.Hedging
(1)ThecompanycarriesouthedgingbusinessforriskmanagementNotapplicable
(2)ThecompanycarriesouteligiblehedgebusinessandapplieshedgeaccountingNotapplicable
(3)Thecompanycarriesouthedgingbusinessforriskmanagement,andisexpectedtoachievetheriskmanagementobjectivesbuthasnotappliedhedgeaccountingNotapplicable
3.Financialassets
(1)Classificationoftransfermethods
Unit:RMB
| Transfermethods | Natureoftransferredfinancialassets | Amountoftransferredfinancialassets | Derecognition | Determinationbasisofderecognition |
| Discountandendorsement | Bankacceptancebill | 24,056,305.26 | Derecognized | Bankswithhighcreditworthinessundertakebillsofexchangewithminimalcreditrisk |
| Total | 24,056,305.26 |
(2)Financialassetsderecognizedduetotransfer
Unit:RMB
| Item | Wayoftransferoffinancialassets | Amountoffinancialassetsderecognized | Gainsorlossesrelatedtoderecognition |
| Bankacceptancebill | Discountandendorsement | 24,056,305.26 | 0.00 |
| Total | 24,056,305.26 | 0.00 |
(3)AssetstransferfinancialassetsthatcontinuetobeinvolvedNotapplicable
13.Disclosureoffairvalue
1.EndingfairvalueofassetsandliabilitiesmeasuredatfairvalueNotapplicable
2.Basisfordeterminingthemarketpriceofitemsmeasuredatfairvalueofthefirstlevelonacontinuousandnon-continuousbasisNotapplicable
3.Qualitativeandquantitativeinformationonvaluationtechniquesandimportantparametersadoptedforcontinuousandnon-continuousLevel2fairvaluemeasurementitemsNotapplicable
4.Qualitativeandquantitativeinformationonvaluationtechniquesandimportantparametersadoptedforcontinuousandnon-continuousLevel3fairvaluemeasurementitems
Notapplicable
5.Sensitivityanalysisofadjustmentinformationandnon-observableparametersbetweenopeningandclosingbookvalueofcontinuousthird-levelfairvaluemeasurementitemsNotapplicable
6.Foritemsmeasuredatfairvalueonagoingconcern,ifthereisanytransferbetweendifferentlevelsinthecurrentperiod,thereasonforthetransferandthepolicyfordeterminingthetransfertimeNotapplicable
7.ChangesinvaluationtechniquesinthecurrentperiodandthereasonsforthechangesNotapplicable
8.Fairvalueoffinancialassetsandfinancialliabilitiesnotmeasuredatfairvalue
Notapplicable
9.Others
Notapplicable
14.Relatedpartiesandrelatedtransactions
1.Parentcompanyinformation
| Parentcompanyname | Registrationplace | Natureofbusiness | RegisteredCapital | ShareholdingscaleoftheparentcompanyintheCompany | VotingrightsscaleoftheparentcompanyintheCompany |
| AVICInternationalHoldingCo.,Ltd. | Shenzhen | Commercialservices | RMB1,166,162,000.00 | 40.16% | 40.16% |
DescriptionoftheparentcompanyAVICInternationalHoldingsLimitedisa100.00%indirectlyownedsubsidiaryofAVICInternationalHoldingCorporationAviationIndustryCorporationofChina,LTD.holds100.00%equityofAVICInternationalHoldingCorporationTheultimatecontrolleroftheenterpriseisAviationIndustryCorporationofChina,LTD.
2.SubsidiariesoftheCompanyFordetailsofthesubsidiariesoftheCompany,pleaserefertoNoteX.1.
3.JointventuresandassociatesoftheCompanySeeNoteX.3fordetailsoftheimportantjointventuresorassociatesoftheenterprise.
4.Otherrelatedparties
| Namesofotherrelatedparties | Relationshipbetweenotherrelatedpartiesandtheenterprise |
| AVICPropertyManagementCo.,Ltd.(AVICProperty) | Associatedenterpriseoftheactualcontroller |
| RainbowDigitalCommercialCo.,Ltd.(Rainbow) | Controlledbythesameparty |
| ShennanCircuitsCo.,Ltd.(SCC) | Controlledbythesameparty |
| AVICEastChinaOptoelectronics(Shanghai)Co.,Ltd.(EastChinaOptoelectronics(Shanghai)) | Controlledbythesameparty |
| AVICXi'anFlightAutomaticControlResearchInstitute(AVICXi'anFlightAutomaticControlResearchInstitute) | Controlledbythesameparty |
| ShenzhenGrandSkylightHotelManagementCo.,Ltd.(GrandSkylightHotelManagement) | Controlledbythesameparty |
| AVICSecuritiesCo.,Ltd.(AVICSecuritiesCompany) | Controlledbythesameparty |
| ShenzhenAVICGroupTrainingCenter(AVICTrainingCenter) | Controlledbythesameparty |
| AVICFinanceCo.,Ltd.(AVICFinanceCompany) | Controlledbythesameparty |
| GongqingchengAVICCulturalInvestmentCo.,Ltd.(GongqingchengAVICCulturalInvestment) | Controlledbythesameparty |
| AVICJonhonOptronicTechnologyCo.,Ltd.(AVICJONHON) | Controlledbythesameparty |
| AVICInternationalHoldings(Zhuhai)Co.,Ltd.(AVICINTL(Zhuhai)) | Controlledbythesameparty |
| GuizhouHuayangElectronicsCo.,Ltd.(GuizhouHuayangElectronics) | Controlledbythesameparty |
| ZhuhaiPilotCompositeMaterialTechnologyCo.,Ltd.(ZhuhaiPilotTechnology) | Controlledbythesameparty |
| GuangdongInternationalMansionIndustrialCo.,Ltd.(GuangdongInternationalMansion) | Controlledbythesameparty |
| ShenzhenAVICTechnicalTestingInstituteCo.,Ltd.(ShenzhenAVICTechnicalTestingInstitute) | Controlledbythesameparty |
| ShenyangXinghuaAVICElectricalApplianceCo.,Ltd.(ShenyangXinghua) | Controlledbythesameparty |
| ShenzhenAVICChangtaiInvestmentDevelopmentCo.,Ltd.(AVICChangtai) | Controlledbythesameparty |
| AVICFuturesCo.,Ltd.(AVICFutures) | Controlledbythesameparty |
| AnhuiAVICDisplayTechnologyCo.,Ltd.(AnhuiAVIC) | Controlledbythesameparty |
| ShenzhenAero-FastenersMFGCo.,Ltd.(SHBC) | Controlledbythesameparty |
| Castic-SMPMachineryCorp.Ltd.(CSM) | Controlledbythesameparty |
| ShijiazhuangAircraftIndustryCo.,Ltd.(ShijiazhuangAircraftIndustry) | Controlledbythesameparty |
| SichuanAviationIndustryChuanxiMachineryCo.,Ltd.(SichuanChuanxiMachinery) | Controlledbythesameparty |
| AVICInternationalHoldingCorporation(AVICINTL) | Controlledbythesameparty |
| CompanyDirector,Manager,ChiefFinancialOfficerandSecretaryoftheBoardofDirectors(keymanagementpersonnel) | Keymanagementpersonnel |
5.Relatedpartytransactions
(1)Relatedtransactionsforthepurchaseandsaleofcommodities,theprovisionandreceiptofservicesPurchaseofgoods/receiptoflaborservices
Unit:RMB
| Relatedparty | Contentofrelatedpartytransaction | Amountforthecurrentperiod | Approvedtransactionlimit | Whetherthetransactionlimitisexceeded | Amountforthepreviousperiod |
| AVICProperty | Waterandelectricityandpropertymanagementfees | 5,642,393.30 | 65,000,000.00 | No | 5,600,171.42 |
| RainbowDigitalCommercialCo.,Ltd. | Shoppingmallexpenses/commoditypurchase | 9,301,602.91 | No | 1,939,136.26 | |
| ChinaAviationCityRealEstate(Kunshan)Co.,Ltd. | Shoppingmallexpenses | 33,486.54 | No | 32,726.23 | |
| JiufangCommercialManagementCo.,Ltd. | Shoppingmallexpenses | 64,792.60 | No | 45,347.58 | |
| AVICNanguangOffice | Elevatormaintenancepremium | 12,286.27 | No | 18,000.00 | |
| AVICLouyuOffice | Firefightingmaintenancefee | 4,740.00 | No | ||
| GongqingchengAVICCulturalInvestmentCo.,Ltd. | Shoppingmallexpenses | 8,478.92 | No |
Salesofgoods/renderingofservices
Unit:RMB
| Relatedparty | Contentofrelatedpartytransaction | Amountforthecurrentperiod | Amountforthepreviousperiod |
| RainbowDigitalCommercialCo.,Ltd. | Productsandservices | 24,031,549.70 | 30,348,264.13 |
| SCC | Salesofmaterialsandrenderingofservices | 460.80 | |
| GongqingchengAVICCulturalInvestmentCo.,Ltd. | Productsales | 175,983.10 | 154,635.87 |
| AVICJONHON | Productsales | 1,865.30 | 406,907.87 |
| AVICINTL | Productsales | 2,824.77 | |
| EastChinaOptoelectronics(Shanghai) | Productsales | 10,619.47 | |
| GuizhouHuayangElectronics | Productsales | 5,309.73 | |
| ZhuhaiPilotTechnology | Productsales | 75,711.51 | |
| ShenyangXinghua | Productsales | 739,635.19 | 145,831.01 |
| ShijiazhuangAircraftIndustry | Productsales | 234,915.96 |
| SichuanChuanxiMachinery | Productsales | 70,796.46 |
(2)Associatedtrusteeship/contractingandcommissionedmanagement/outsourcingsituation
Notapplicable
(3)Relatedleasing
Asthelessor:
Unit:RMB
| Nameoflessee | Typeofleasedassets | Leaseincomerecognizedinthecurrentperiod | Leaseincomerecognizedinthepreviousperiod |
| AVICProperty | Premises | 2,477,133.06 | 2,677,492.91 |
| AVICSecuritiesCompany | Premises | 705,942.84 | 705,942.84 |
| RainbowDigitalCommercialCo.,Ltd. | Premises | 274,857.12 | 309,104.34 |
| AVICFutures | Premises | 44,700.47 |
TheCompanyasthelessee:
Unit:RMB
| Nameoflessor | Typeofleasedassets | Simplifiedprocessingofrentalfeesforshort-termleasesandleasesoflow-valueassets(ifapplicable) | Variableleasepaymentsnotincludedinthemeasurementofleaseliabilities(ifapplicable) | Rentpaid | Interestexpenseonassumedleaseliabilities | Increaseinright-of-useassets | |||||
| Amountforthecurrentperiod | Amountforthepreviousperiod | Amountforthecurrentperiod | Amountforthepreviousperiod | Amountforthecurrentperiod | Amountforthepreviousperiod | Amountforthecurrentperiod | Amountforthepreviousperiod | Amountforthecurrentperiod | Amountforthepreviousperiod | ||
| ChinaAviationCityRealEstate(Kunshan)Co.,Ltd. | Premises | 67,714.26 | 71,100.00 | 791.99 | 580.08 | -66,765.72 | -66,767.11 | ||||
| JiufangCommercialManagementCo.,Ltd. | Premises | 455.75 | 41,544.03 | 197,522.76 | 136,406.96 | 6,947.61 | 4,179.58 | 145,907.09 | |||
| Rainbo | Premis | 78,102 | 218,27 | 1,463. | 6,473. | - | - | ||||
| wDigitalCommercialCo.,Ltd. | es | .84 | 1.00 | 37 | 23 | 75,092.94 | 195,898.05 |
(4)Relatedguarantees
Notapplicable
(5)LoansfromandtorelatedpartiesNotapplicable
(6)AssetstransferanddebtrestructuringofrelatedpartiesNotapplicable
(7)RemunerationofkeymanagementpersonnelNotapplicable
(8)OtherrelatedpartytransactionsAsattheendofthecurrentyear,thebalanceofdepositsplacedbytheCompanyinAVICFinanceamountedtoRMB380,786,934.73,ofwhichthedepositinterestreceivedinthecurrentyearamountedtoRMB210,559.83.
6.Receivablesfromandpayabletorelatedparties
(1)Receivableitems
Unit:RMB
| Item | Relatedparty | EndingBalance | Openingbalance | ||
| Bookbalance | Baddebtprovision | Bookbalance | Baddebtprovision | ||
| Cashinbank | |||||
| AVICFinance | 380,786,934.73 | 467,743,798.76 | |||
| Accountsreceivable | |||||
| RainbowDigitalCommercialCo.,Ltd. | 2,490,562.71 | 115,297.65 | 5,973,322.25 | 248,095.43 | |
| AVICJONHON | 162,478.08 | 7,311.51 | 202,712.86 | 12,162.77 | |
| GongqingchengAVICCulturalInvestmentCo.,Ltd. | 56,510.95 | 2,825.55 | 22,684.75 | 832.29 | |
| ShenyangXinghua | 848,596.59 | 38,186.85 | 292,370.58 | 17,542.23 | |
| AVICProperty | 245,170.39 | 12,258.52 | 183,123.05 | 9,156.15 | |
| GuizhouHuayang | 21,260.00 | 1,275.60 | |||
| Electronics | |||||
| AnhuiAVIC | 15,800.00 | 790.00 | |||
| AVICSecuritiesCompany | 247,080.00 | 12,354.00 | |||
| SichuanChuanxiMachinery | 40,000.00 | 1,800.00 | |||
| Notesreceivable | |||||
| ZhuhaiPilotTechnology | 892,185.99 | 44,609.30 | |||
| ShenyangXinghua | 194,183.16 | 192,339.42 | |||
| Otherreceivables | |||||
| RainbowDigitalCommercialCo.,Ltd. | 855,943.00 | 42,797.15 | 834,903.00 | 43,170.15 | |
| GongqingchengAVICCulturalInvestmentCo.,Ltd. | 6,500.00 | 325.00 | 6,500.00 | 325.00 | |
| AVICProperty | 133,990.00 | 6,699.50 | 143,990.00 | 7,199.50 |
(2)Payableitems
Unit:RMB
| Item | Relatedparty | Bookbalanceatperiodend | Beginningbookbalance |
| Accountspayable | |||
| AVICProperty | 32,992.35 | ||
| AVICJONHON | 391.96 | ||
| Otherpayables | |||
| AVICProperty | 1,058,235.04 | 1,023,487.21 | |
| AVICSecuritiesCompany | 247,080.00 | 247,080.00 | |
| AVICLouyuOffice | 14,808.41 | ||
| RainbowDigitalCommercialCo.,Ltd. | 96,200.00 | 1,935,611.93 | |
| AVICChangtai | 4,064.81 | ||
| AVICNanguangOffice | 23,943.22 | ||
| Prepayments | |||
| AVICSecuritiesCompany | 123,540.00 | ||
| AVICFutures | 9,435.48 | ||
| AVICINTL | 7,640.00 |
7.Commitmentsofrelatedparties
Notapplicable
8.OthersNotapplicable
15.Share-basedpayment
1.Overallsituationofshare-basedpayment
Unit:RMB
| Categoryofgrantobject | Grantinthecurrentperiod | Exerciseinthecurrentperiod | Unlockedinthecurrentperiod | Invalidinthecurrentperiod | ||||
| Quantity | Amount | Quantity | Amount | Quantity | Amount | Quantity | Amount | |
2.Equity-settledshare-basedpayment
Unit:RMB
| Determinationmethodforthefairvalueofequityinstrumentsonthegrantdate | Closingpriceofthecompany'ssharesonthedateofgrant |
| Importantparametersforthefairvalueofequityinstrumentsonthegrantdate | Employeeserviceperiod,achievementrateofperformanceindicatorandemployeepersonalperformanceevaluationresults |
| Determinationbasisforthenumberofexercisableequityinstruments | Forequity-settledshare-basedpaymentsexchangedforemployeeservicesthatcanonlybeexercisedafterthecompletionofthevestingperiodoruponmeetingspecifiedperformanceconditions,ateachbalancesheetdateduringthevestingperiod,thecompanyshouldaccountforthefairvalueoftheequityinstrumentsgrantedonthegrantdate,basedonthebestestimateofthenumberofequityinstrumentsexpectedtovest,byincludingthecostoftheservicesreceivedfortheperiodintherelevantcostsorexpensesandcapitalreserves.AttheBalanceSheetDate,ifsubsequentinformationindicatesthatthenumberofequityinstrumentsexpectedtovestdiffersfrompreviousestimates,adjustmentsshouldbemade.Thenumberofequityinstrumentsshouldbeadjustedtotheactualnumbervestedonthevestingdate. |
| Reasonsforsignificantdifferencesbetweentheestimatesinthecurrentperiodandthoseinthepreviousperiod | None |
| Cumulativeamountofequity-settledshare-basedpaymentincludedincapitalreserves | 28,815,350.76 |
| Totalexpensesrecognizedintheequity-settledshare-basedpaymentinthecurrentperiod | 906,067.21 |
3.Cash-settledshare-basedpayment
Notapplicable
4.Share-basedpaymentexpensesinthecurrentperiod
Unit:RMB
| Categoryofgrantobject | Equity-settledshare-basedpaymentexpenses | Cash-settledshare-basedpaymentexpenses |
| SomeDirectors,Supervisors,SeniorExecutivesandcorebackbonesofthecompany | 906,067.21 | |
| Total | 906,067.21 |
5.Modificationandterminationofshare-basedpaymentNotapplicable
6.OthersNotapplicable
16.Commitmentsandcontingencies
1.Importantcommitments
SignificantcommitmentsexistingontheBalanceSheetDate
1.SignedleasecontractsbeingperformedortobeperformedandtheirfinancialimpactSeeNoteVII.82fordetails
2.SignificantcontingenciesexistingontheBalanceSheetDateTherewerenosignificantcontingenciesrequiredtobedisclosed.
2.Contingencies
(1).SignificantcontingenciesexistingontheBalanceSheetDateNotapplicable
(2)Ifthecompanyhasnoimportantcontingenciesrequiredtobedisclosed,itshallalsobeexplainedTherewerenosignificantcontingenciesrequiredtobedisclosed.
3.Others
SegmentinformationTheCompanydeterminestheoperatingsegmentsbasedontheinternalorganizationalstructure,managementrequirementsandinternalreportingsystem.TheCompany'soperatingsegmentreferstothecomponentthatmeetsthefollowingconditionsatthesametime:
(1)Thecomponentcangenerateincomeandexpensesindailyactivities;
(2)Themanagementisabletoregularlyevaluatetheoperatingresultsofthecomponentinordertodeterminetheallocationofresourcestothemandevaluatetheirperformance;
(3)Thefinancialposition,operatingresults,cashflowsandotherrelevantaccountinginformationofthecomponentcanbeobtained.
TheCompanydeterminesreportsegmentsonthebasisofoperatingsegments,andtheoperatingsegmentsthatmeetoneofthefollowingconditionsarerecognizedasreportsegments:
(1)Thesegmentrevenueoftheoperatingsegmentaccountsfor10%ormoreofthetotalrevenueofallsegments;
(2)Theabsoluteamountofthesegment'sprofit(loss)accountsfor10%ormoreofthegreaterofthetotalprofitofallprofitablesegmentsorthetotallossofallloss-makingsegments.
TheCompanyoperatesasinglelineofbusiness,primarilytheproductionandsaleofwatches.Managementviewsandmanagesthisbusinessasawholeandevaluatesitsoperatingresultsaccordingly.Therefore,thisfinancialstatementdoesnotreportsegmentinformation.AsofJune30,2024,theCompanyhadnoothersignificanteventsthatshouldbedisclosed.
17.Eventsafterthebalancesheetdate
1.Importantnon-adjustingmattersNotapplicable
2.ProfitdistributionNotapplicable
3.Salesreturns
Notapplicable
4.NotestoothereventsaftertheBalanceSheetDate
18.Othersignificantevents
1.Correctionofaccountingpreviouserrors
(1)Retrospectiverestatementmethod
Notapplicable
(2)FutureapplicablelawNotapplicable
2.DebtrestructuringNotapplicable
3.Assetsreplacement
(1)Exchangeofnon-monetaryassetsNotapplicable
(2)ReplacementofotherassetsNotapplicable
4.AnnuityplanNotapplicable
5.Discontinuedoperation
Notapplicable
6.Segmentinformation
(1)DeterminationbasisandaccountingpoliciesforreportsegmentsTheCompanydeterminestheoperatingsegmentsbasedontheinternalorganizationalstructure,managementrequirementsandinternalreportingsystem.TheCompany'soperatingsegmentreferstothecomponentthatmeetsthefollowingconditionsatthesametime:
(1)Thecomponentcangenerateincomeandexpensesindailyactivities;
(2)Themanagementisabletoregularlyevaluatetheoperatingresultsofthecomponentinordertodeterminetheallocationofresourcestothemandevaluatetheirperformance;
(3)Thefinancialposition,operatingresults,cashflowsandotherrelevantaccountinginformationofthecomponentcanbeobtained.
TheCompanydeterminesreportsegmentsonthebasisofoperatingsegments,andtheoperatingsegmentsthatmeetoneofthefollowingconditionsarerecognizedasreportsegments:
(1)Thesegmentrevenueoftheoperatingsegmentaccountsfor10%ormoreofthetotalrevenueofallsegments;
(2)Theabsoluteamountofthesegment'sprofit(loss)accountsfor10%ormoreofthegreaterofthetotalprofitofallprofitablesegmentsorthetotallossofallloss-makingsegments.
TheCompanyoperatesasinglelineofbusiness,primarilytheproductionandsaleofwatches.Managementviewsandmanagesthisbusinessasawholeandevaluatesitsoperatingresultsaccordingly.Therefore,thisfinancialstatementdoesnotreportsegmentinformation.
(2)Financialinformationofreportsegments
Notapplicable
(3)Ifthecompanyhasnoreportsegments,orcannotdisclosethetotalassetsandtotalliabilitiesofeachreportsegment,itshallexplainthereasonsNotapplicable
(4)OthernotesNotapplicable
7.Otherimportanttransactionsandeventsthataffectthedecision-makingofinvestorsNotapplicable
8.OthersNotapplicable
19.NotestothemajoritemsoftheParentCompany'sFinancialStatements
1.Accountsreceivable
1.Disclosurebyaging
Unit:RMB
| Aging | Bookbalanceatperiodend | Beginningbookbalance |
| Within1year(including1year) | 11,424,830.46 | 1,875,782.07 |
| 1-2years | 341,772.29 | 23,346.03 |
| Total | 11,766,602.75 | 1,899,128.10 |
(2).Disclosureunderthemethodsofprovisionforbaddebtsbycategory
Unit:RMB
| Category | EndingBalance | Openingbalance | ||||||||
| Bookbalance | Baddebtprovision | Bookvalue | Bookbalance | Baddebtprovision | Bookvalue | |||||
| Amount | Scale | Amount | Drawingpercentages | Amount | Scale | Amount | Drawingpercentages | |||
| Accountsreceivablewithprovisionforbaddebtsbyindividual | ||||||||||
| Inwhich: | ||||||||||
| Accountsreceivablewithprovisionforbaddebtsbycombination | 11,766,602.75 | 100.00% | 590,818.06 | 5.02% | 11,175,784.69 | 1,899,128.10 | 100.00% | 76,211.49 | 4.01% | 1,822,916.61 |
| Inwhich: | ||||||||||
| Receivablesfromothercustomers | 11,469,482.48 | 97.47% | 590,818.06 | 5.15% | 10,878,664.42 | 1,898,159.02 | 99.95% | 76,211.49 | 4.02% | 1,821,947.53 |
| Combinationofrelatedpartieswithinthescopeofconsolidation | 297,120.27 | 2.53% | 0.00% | 297,120.27 | 969.08 | 0.05% | 0.00% | 969.08 | ||
| Total | 11,766,602.75 | 100.00% | 590,818.06 | 5.02% | 11,175,784.69 | 1,899,128.10 | 100.00% | 76,211.49 | 4.01% | 1,822,916.61 |
Categorynameofprovisionforbaddebtsbycombination:accountsreceivablefromothercustomers
Unit:RMB
| Name | EndingBalance | ||
| Bookbalance | Baddebtprovision | Drawingpercentages | |
| Receivablesfromothercustomers | 11,469,482.48 | 590,818.06 | 5.15% |
| Total | 11,469,482.48 | 590,818.06 | |
Descriptionofthebasisfordeterminingthecombination:
NotapplicableNameofprovisionforbaddebtsbycombination:combinationofrelatedpartieswithinthescopeofconsolidation
Unit:RMB
| Name | EndingBalance | ||
| Bookbalance | Baddebtprovision | Drawingpercentages | |
| Combinationofrelatedpartieswithinthescopeofconsolidation | 297,120.27 | ||
| Total | 297,120.27 | ||
Descriptionofthebasisfordeterminingthecombination:
NotapplicableIftheprovisionforbaddebtsofaccountsreceivableismadeaccordingtothegeneralexpectedcreditlossmodel:
Notapplicable
(3)Statusofbaddebtprovision,recovery,orreversalfortheperiod
Provisionforbaddebtsinthecurrentperiod:
Unit:RMB
| Category | Openingbalance | Amountofchangefortheperiod | EndingBalance | |||
| Provision | Recoveredor | Write-off | Other | |||
| transferred | |||||
| Accountsreceivablewithprovisionforexpectedcreditlossesbycombination | |||||
| Including:combinationofothercustomers'receivables | 76,211.49 | 539,312.88 | 24,706.31 | 590,818.06 | |
| Total | 76,211.49 | 539,312.88 | 24,706.31 | 590,818.06 |
WhereaccountsreceivablewithsignificantfromprovisionforbaddebtsorrecoveredinthecurrentperiodNotapplicable
(4).Situationofaccountsreceivableactuallywrittenoffinthecurrentperiod
Notapplicable
(5)Accountsreceivableandcontractualassetscollectedfromthedebtorswhichrankthefirstfiveattheendofperiod
Unit:RMB
| Companyname | Accountsreceivablebalanceattheendofperiod | Endingbalanceofcontractualassets | Endingbalanceofaccountsreceivableandcontractualassets | Proportioninthetotalendingbalanceofaccountsreceivableandcontractualassets | Endingbalanceofprovisionforbaddebtsofaccountsreceivableandprovisionforimpairmentofcontractualassets |
| Summaryofaccountsreceivablewhichranksthefirstfiveattheendofperiod | 8,284,824.11 | 11,766,602.75 | 70.41% | 414,241.21 | |
| Total | 8,284,824.11 | 11,766,602.75 | 70.41% | 414,241.21 |
2.Otherreceivables
Unit:RMB
| Item | EndingBalance | Openingbalance |
| Otherreceivables | 646,226,304.77 | 696,328,419.85 |
| Total | 646,226,304.77 | 696,328,419.85 |
(1)Interestreceivable
1)ClassificationofinterestreceivableNotapplicable
2)ImportantoverdueinterestNotapplicable
3).DisclosureunderthemethodsofprovisionforbaddebtsbycategoryNotapplicable
4).Statusofbaddebtprovision,recovery,orreversalfortheperiodNotapplicable
5)SituationofinterestreceivableactuallywrittenoffinthecurrentperiodNotapplicable
(2)Dividendsreceivable
1)ClassificationofdividendsreceivableNotapplicable
2)Importantdividendsreceivablewithagingover1yearNotapplicable
3).DisclosureunderthemethodsofprovisionforbaddebtsbycategoryNotapplicable
4).Statusofbaddebtprovision,recovery,orreversalfortheperiodNotapplicable
5)SituationofdividendsreceivableactuallywrittenoffinthecurrentperiodNotapplicable
(3)Otherreceivables
1)Classificationofotherreceivablesbynature
Unit:RMB
| Paymentnature | Bookbalanceatperiodend | Beginningbookbalance |
| Paymentsofrelatedpartieswithinthescopeofconsolidation | 645,692,800.05 | 696,041,965.52 |
| Marginanddeposits | 129,081.90 | 49,581.90 |
| Other | 451,421.29 | 278,107.90 |
| Total | 646,273,303.24 | 696,369,655.32 |
2)Disclosurebyaging
Unit:RMB
| Aging | Bookbalanceatperiodend | Beginningbookbalance |
| Within1year(including1year) | 646,224,474.36 | 614,472,373.93 |
| 1-2years | 5,615.00 | 81,857,231.39 |
| 2-3years | 3,163.88 | |
| Morethan3years | 40,050.00 | 40,050.00 |
| 3-4years | 40,050.00 | 40,050.00 |
| Total | 646,273,303.24 | 696,369,655.32 |
3).Disclosureunderthemethodsofprovisionforbaddebtsbycategory
Unit:RMB
| Category | EndingBalance | Openingbalance | ||||||||
| Bookbalance | Baddebtprovision | Bookvalue | Bookbalance | Baddebtprovision | Bookvalue | |||||
| Amount | Scale | Amount | Drawingpercentages | Amount | Scale | Amount | Drawingpercentages | |||
| Accountsreceivablewithprovisionforbaddebtsbyindividual | ||||||||||
| Inwhich: | ||||||||||
| Provisionforbaddebtsonacombin | 646,273,303.24 | 100.00% | 46,998.47 | 0.01% | 646,226,304.77 | 696,369,655.32 | 100.00% | 41,235.47 | 0.01% | 696,328,419.85 |
| ationbasis | ||||||||||
| Inwhich: | ||||||||||
| Combinationofmarginanddepositreceivable | 129,081.90 | 0.02% | 2,496.87 | 1.93% | 126,585.03 | 49,581.90 | 0.01% | 40,526.60 | 81.74% | 9,055.30 |
| Combinationofreceivablesofrelatedpartieswithinthescopeofconsolidation | 645,692,800.05 | 99.91% | 0.00% | 645,692,800.05 | 696,041,965.52 | 99.95% | 0.00% | 696,041,965.52 | ||
| Combinationofsocialsecurityadvancesreceivable | 0.00% | 263,930.39 | 0.04% | 0.00% | 263,930.39 | |||||
| Combinationofotherfinancings | 451,421.29 | 0.07% | 44,501.60 | 9.86% | 406,919.69 | 14,177.51 | 0.00% | 708.87 | 5.00% | 13,468.64 |
| Total | 646,273,303.24 | 100.00% | 46,998.47 | 0.01% | 646,226,304.77 | 696,369,655.32 | 100.00% | 41,235.47 | 0.01% | 696,328,419.85 |
Numberofcategorieswithprovisionforbaddebtsbyindividual:0Numberofcategorieswithprovisionforbaddebtsbycombination:3Categorynameofprovisionforbaddebtsbycombination:combinationofmarginanddepositreceivable
Unit:RMB
| Name | EndingBalance | ||
| Bookbalance | Baddebtprovision | Drawingpercentages | |
| Combinationofmarginanddepositreceivable | 129,081.90 | 2,496.87 | 1.93% |
| Total | 129,081.90 | 2,496.87 | |
Descriptionofthebasisfordeterminingthecombination:paymentsofthesamenaturehavesimilarcreditriskcharacteristics.Nameofprovisionforbaddebtsbycombination:combinationofaccountsreceivablerelatedpartieswithinthescopeofconsolidation
Unit:RMB
| Name | EndingBalance |
| Bookbalance | Baddebtprovision | Drawingpercentages | |
| Combinationofreceivablesofrelatedpartieswithinthescopeofconsolidation | 645,692,800.05 | ||
| Total | 645,692,800.05 |
Descriptionofthebasisfordeterminingthecombination:paymentsofthesamenaturehavesimilarcreditriskcharacteristics.Categorynameofprovisionforbaddebtsbycombination:otheraccountsreceivable
Unit:RMB
| Name | EndingBalance | ||
| Bookbalance | Baddebtprovision | Drawingpercentages | |
| Combinationofotherfinancings | 451,421.29 | 44,501.60 | 9.86% |
| Total | 451,421.29 | 44,501.60 | |
Descriptionofthebasisfordeterminingthecombination:paymentsofthesamenaturehavesimilarcreditriskcharacteristics.Provisionforbaddebtsmadeaccordingtothegeneralexpectedcreditlossmodel:
Unit:RMB
| Baddebtprovision | StageI | StageII | StageIII | Total |
| Expectedcreditlossinthenext12months | Expectedcreditlossthroughouttheduration(nocreditimpairment) | Expectedcreditlossthroughouttheduration(creditimpairmenthasoccurred) | ||
| BalanceasofJan.1,2024 | 41,235.47 | 41,235.47 | ||
| BalanceonJan.1,2024inthecurrentperiod | ||||
| --TransfertophaseII | ||||
| -TransfertophaseIII | ||||
| -ReversaltophaseII | ||||
| -ReversaltophaseI | ||||
| Provisioninthecurrentperiod | 5,763.00 | 5,763.00 | ||
| Reversalinthecurrentperiod | ||||
| Write-offinthecurrentperiod | ||||
| Write-offinthecurrentperiod | ||||
| Otherchanges | ||||
| BalanceasofJune | 46,998.47 | 46,998.47 |
ThebasisforthedivisionofeachstageandtheratioofprovisionsforbaddebtsThephaseIisthebaddebtprovisionforotherreceivableswithinoneyear.ThephaseIIisthebaddebtprovisionforaccountsreceivableoveroneyearthathavenotbeenindividuallyassessed.ThephaseIIIisthebaddebtprovisionforindividuallyassessedaccountsreceivable.ChangesinbookbalancewithsignificantamountoflossprovisioninthecurrentperiodNotapplicable
4).Statusofbaddebtprovision,recovery,orreversalfortheperiod
Provisionforbaddebtsinthecurrentperiod:
Unit:RMB
30,2024Category
| Category | Openingbalance | Amountofchangefortheperiod | EndingBalance | |||
| Provision | Recoveredortransferred | Write-offorimpairment | Other | |||
| Provisionforbaddebtsonacombinationbasis | 41,235.47 | 5,763.00 | 46,998.47 | |||
| Total | 41,235.47 | 5,763.00 | 46,998.47 | |||
Wherethebad-debtprovisionamountrecoveredorreversedthisperiodisimportant:
Notapplicable
5)Situationofotheraccountsreceivableactuallywrittenoffinthecurrentperiod
Notapplicable
6).Otherreceivablescollectedfromthedebtorswhichrankthefirstfiveattheendofperiod
Unit:RMB
| Companyname | Paymentnature | EndingBalance | Aging | Proportioninthetotalendingbalanceofotherreceivables | End-of-periodbalanceofprovisionforbaddebt |
| Summaryofotheraccountsreceivablewhichrankthefirstfiveattheendofperiod | Receivablesofrelatedpartieswithinthescopeofconsolidation | 645,692,800.05 | Within1year | 99.91% | 0.00 |
| Total | 645,692,800.05 | 99.91% | 0.00 |
7)Presentedinotherreceivablesduetocentralizedmanagementoffunds
Notapplicable
3.Long-termequityinvestments
Unit:RMB
| Item | EndingBalance | Openingbalance | ||||
| Bookbalance | Impairmentprovision | Bookvalue | Bookbalance | Impairmentprovision | Bookvalue | |
| Investmentinsubsidiaries | 1,581,832,322.16 | 1,581,832,322.16 | 1,581,179,108.81 | 1,581,179,108.81 | ||
| Investmentsinassociatesandjointventures | 51,952,479.36 | 51,952,479.36 | 51,862,607.30 | 51,862,607.30 | ||
| Total | 1,633,784,801.52 | 1,633,784,801.52 | 1,633,041,716.11 | 1,633,041,716.11 | ||
(1)Investmentinsubsidiaries
Unit:RMB
| Theinvestee | Beginningbalance(bookvalue) | Beginningbalanceofprovisionforimpairment | Increaseordecreaseinthecurrentperiod | Endingbalance(bookvalue) | End-of-periodbalanceofprovisionforimpairment | |||
| Additionalinvestment | Reductionofinvestment | Provisionforimpairmentaccrued | Other | |||||
| ShenzhenHarmonyWorldWatchCentreCo.,Ltd. | 609,295,490.83 | 283,653.83 | 609,579,144.66 | |||||
| ShenzhenHarmonyE-commerceCo.,Ltd. | 11,684,484.39 | 11,684,484.39 | ||||||
| ShenzhenFIYTAPrecisionTechnologyCo.,Ltd. | 182,044,461.20 | 123,186.52 | 182,167,647.72 | |||||
| ShenzhenFIYTASTDCo.,Ltd. | 51,062,891.67 | 48,625.00 | 51,111,516.67 | |||||
| FIYTA(HONGKONG)LIMITED | 137,737,520.00 | 137,737,520.00 | ||||||
| Temporal(Shenzhen)Co.,Ltd. | 5,000,000.00 | 5,000,000.00 | ||||||
| FIYTASalesCo.,Ltd. | 456,992,456.17 | 137,775.90 | 457,130,232.07 | |
| LiaoningHengdaruiCommerceandTradeCo.,Ltd. | 36,867,843.96 | 36,867,843.96 | ||
| EmileChourietHorologe(Shenzhen)Co.,Ltd. | 80,493,960.59 | 59,972.10 | 80,553,932.69 | |
| ShenzhenHarmonyWorldWatchCentreCo.,Ltd. | 10,000,000.00 | 10,000,000.00 | ||
| Total | 1,581,179,108.81 | 653,213.35 | 1,581,832,322.16 |
(2).Investmentsinassociatesandjointventures
Unit:RMB
| Investmentunit | Beginningbalance(bookvalue) | Beginningbalanceofprovisionforimpairment | Increaseordecreaseinthecurrentperiod | Endingbalance(bookvalue) | End-of-periodbalanceofprovisionforimpairment | |||||||
| Additionalinvestment | Reductionofinvestment | Investmentincomeorlossrecognizedunderequitymethod | Othercomprehensiveincomeadjustments | Otherchangesinequity | Cashdividendsorprofitsdeclaredtobedistributed | Provisionforimpairmentaccrued | Other | |||||
| 1.Jointventures | ||||||||||||
| 2.Associatedenterprise | ||||||||||||
| ShanghaiWatchIndustryCo.,Ltd. | 51,862,607.30 | 89,872.06 | 51,952,479.36 | |||||||||
| Sub-total | 51,862,607.30 | 89,872.06 | 51,952,479.36 | |||||||||
| Total | 51,862,607.30 | 89,872.06 | 51,952,479.36 | |||||||||
Therecoverableamountisdeterminedbythenetamountofthefairvaluelessthedisposalexpenses
NotapplicableTherecoverableamountisdeterminedatthepresentvalueoftheexpectedfuturecashflowsNotapplicableReasonsforthedifferencebetweentheaforementionedinformationandtheinformationusedintheimpairmenttestofpreviousyearsorexternalinformationNotapplicableReasonsforthedifferencebetweentheinformationusedinthecompany'simpairmenttestinpreviousyearsandtheactualsituationinthecurrentyearNotapplicable
(3)OthernotesNotapplicable
4.Operatingincomeandoperatingcosts
Unit:RMB
| Item | Amountforthecurrentperiod | Amountforthepreviousperiod | ||
| Revenue | Cost | Revenue | Cost | |
| Mainbusiness | 93,442,375.61 | 28,763,610.04 | 90,155,946.21 | 22,121,058.14 |
| Otherbusinesses | 2,209,518.25 | 1,886,928.93 | ||
| Total | 95,651,893.86 | 28,763,610.04 | 92,042,875.14 | 22,121,058.14 |
5.Investmentincome
Unit:RMB
| Item | Amountforthecurrentperiod | Amountforthepreviousperiod |
| Long-termequityinvestmentincomeaccountedforusingtheequitymethod | 89,872.06 | -1,697,481.65 |
| Total | 89,872.06 | -1,697,481.65 |
6.Others
Notapplicable
20.Additionalinformation
1.Breakdownofcurrentnon-recurringprofitandloss
Unit:RMB
| Item | Amount | Notes |
| Lossesfromdisposalofnon-currentassets | 2,906,210.67 | |
| Governmentgrantsrecognizedincurrentprofitandloss(excluding | 1,414,439.38 |
| thosecloselyrelatedtotheCompany'snormaloperations,incompliancewithnationalpolicies,entitledinaccordancewithsetstandards,andhavingasustainedimpactontheCompany'sprofitandloss) | ||
| Reversalofprovisionforimpairmentofreceivablessubjecttoindividualimpairmenttesting | 3,302,930.73 | |
| Otheroperatingincomesandexpensesexcludingtheaboveitems | 1,099,305.50 | |
| Less:Incometaximpact | 2,029,625.75 | |
| Total | 6,693,260.53 | -- |
Specificcircumstancesofotheritemsthatmeetthedefinitionofnon-recurringgainsandlosses:
NotapplicableExplanationofcircumstanceswhereitemslistedasnon-recurringgainsandlossesinExplanatoryAnnouncementNo.1onInformationDisclosureofCompaniesIssuingSecuritiesPublicly-Non-recurringGainsandLossesareclassifiedasrecurringNotapplicable
2.ReturnonequityandEarningspershare
| Profitduringthereportingperiod | Weightedaveragereturnonequity | Earningspershare | |
| Basicearningspershare(RMB/share) | Dilutedearningspershare(RMB/share) | ||
| Netprofitattributabletocommonstockshareholdersofthecompany | 4.36% | 0.3568 | 0.3564 |
| Netprofitattributabletocommonstockshareholdersofthecompanyafterdeductingnon-recurringgainsandlosses | 4.16% | 0.3405 | 0.3401 |
3.Differencesinaccountingdataunderdomesticandoverseasaccountingstandards
(1).DifferencesinnetprofitandnetassetsinthefinancialreportsdisclosedinaccordancewithinternationalaccountingstandardsandChineseaccountingstandardsNotapplicable
(2).DifferencesinnetprofitandnetassetsinthefinancialreportsdisclosedinaccordancewithoverseasaccountingstandardsandChineseaccountingstandardsNotapplicable
(3)Explanationofthereasonsforthedifferencesinaccountingdataunderdomesticandoverseasaccountingstandards.Ifthedatahasbeenauditedbyanoverseasauditinstitutionfordifferenceadjustment,thenameoftheoverseasinstitutionshallbeindicated
4.OthersNotapplicable
FIYTAPrecisionTechnologyCo.,Ltd.
BoardofDirectorsAugust21,2024