Shenzhen Topband Co., Ltd.
Semi-annual Report 2024
July 2024
Section I Important Notes, Contents and DefinitionsThe Board of Directors, the Board of Supervisors and directors, supervisors and seniorexecutives of the Company hereby assure that the content set out in the Semi-annual Report is true,accurate and complete. It shall be free from false records, misleading statements or major omissions,and shall bear individual and joint legal liabilities therein.Wu Yongqiang, Chairman of the Company, and Luo Muchen, head of accounting and theaccounting department, hereby declare that: the data disclosed in financial reports of the semi-annualreport is true, accurate and complete.All directors have attended the Board Meeting at which this Semi-annual Report was scrutinized.Forward-looking statements such as future plans and development strategies covered in theReport involve uncertainty, so they do not represent the Company's profit forecasts, nor are theyregarded as the substantive commitment to investors.The Company is not faced with significant risks affecting its financial position and sustainableprofitability, but may be with such risks as a decline in market demand due to the domestic andinternational macroeconomic downturn, technology upgrading, intensified competition in theindustry, fluctuations in the prices of raw materials and fluctuations in exchange rates. For moredetailed risk information, please see "Risks faced by the Company and countermeasures" in SectionIII of the Report. Investors are kindly requested to be alert to investment risks.The Company plans not to pay cash dividend, to issue bonus shares, or to increase the sharecapital by capital reserve.
The Report is prepared in Chinese and translated into English. Should there be any discrepanciesor misunderstandings between the two versions, the Chinese version shall prevail.
Contents
Section I Important Notes, Contents and Definitions ...... 2
Section II Company Profile and Primary Financial Indicators ...... 6
Section III Management Discussion and Analysis ...... 10
Section IV Corporate Governance ...... 40
Section V Environmental and Social Responsibility ...... 48
Section VI Important Matters ...... 50
Section VII Share Change and Shareholders ...... 61
Section VIII Information on Preferred Shares ...... 70
Section IX Relevant Information of Bonds ...... 71
Section X Financial Report ...... 72
Section XI Other Reported Data ...... 223
Directory of documents for future reference
I. Accounting statements containing the signatures and seals of the legal representative, the financechief and the accounting department head.II. The originals of all the company documents publicly disclosed in newspapers designated by theChina Securities Regulatory Commission during the reporting period and the original manuscripts ofannouncements.III. Original copy of the Semi-annual Report 2024 bearing the signature of the Chairman
All the above documents are ready and complete, and are available for reference at the office of theBoard of Directors of the Company.
Interpretations
| Terms | Refer to | Contents |
| Company, the Company, Topband | Refer to | Shenzhen Topband Co., Ltd. |
| RMB, RMB ten thousand | Refer to | RMB, RMB ten thousand |
| CSRC | Refer to | China Securities Regulatory Commission |
| Exchange | Refer to | Shenzhen Stock Exchange |
| Reporting period | Refer to | From January 1, 2024 to June 30, 2024 |
| Huizhou Topband | Refer to | Huizhou Topband Electrical Technology Co., Ltd. |
| YAKO Automation | Refer to | Shenzhen YAKO Automation Technology Co., Ltd. |
| Yanxun Investment | Refer to | Shenzhen Yanxun Investment Enterprise (Limited Partnership) |
| Yanyun Investment | Refer to | Shenzhen Yanyun Investment Enterprise (Limited Partnership) |
| Allied | Refer to | Shenzhen Allied Control System Co., Ltd. |
| Topband Software | Refer to | Shenzhen Topband Software Technology Co., Ltd. |
| ORVIBO | Refer to | Shenzhen ORVIBO Technology Co., Ltd. |
| Ningbo Topband | Refer to | Ningbo Topband Intelligent Control Co., Ltd. |
| Meanstone Intelligent | Refer to | Shenzhen Meanstone Intelligent Technology Co., Ltd. |
| HANSC Intelligent | Refer to | Shenzhen HANSC Intelligent Technology Co., Ltd. |
| Hong Kong Topband | Refer to | Topband (Hong Kong) Co., Ltd. |
| Topband Romania | Refer to | Topband Smart Europe Company Limited |
| Topband Mexico | Refer to | Topband Mexico Company Limited |
| Topband Battery | Refer to | Shenzhen Topband Battery Co., Ltd. |
| Ninghui Lithium Battery | Refer to | Taixing Ninghui Lithium Battery Co., Ltd. |
| HVAC | Refer to | Heating, Ventilation and Air Conditioning |
| IOT | Refer to | Internet of Things |
| AI | Refer to | Artificial Intelligence |
| BLDC Motor | Refer to | Brushless DC Motor |
| BG and BU | Refer to | Business Group and Business Unit |
| IPD | Refer to | Integrated Product Development |
| ISC | Refer to | Integrated Supply Chain |
| OPE | Refer to | Outdoor Power Equipment |
Section II Company Profile and Primary Financial IndicatorsI. Company profile
| Stock abbreviation | Topband | Stock code | 002139 |
| Listed stock exchange | Shenzhen Stock Exchange | ||
| Chinese name of the Company | Shenzhen Topband Co., Ltd. | ||
| Chinese abbreviation of the Company name (if any) | Topband | ||
| Name of the Company in foreign language (if any) | Shenzhen Topband Co., Ltd. | ||
| Name of the Company in foreign language (if any) | Topband | ||
| Legal representative of the Company | Wu Yongqiang | ||
II. Contact person and contact information
| Secretary of the Board of Directors | Representative of securities affairs | |
| Name | Wen Zhaohui | Zhang Yuhua |
| Address | Topband Industrial Park, Keji Second Road, Shiyan Sub-district, Bao'an District, Shenzhen | Topband Industrial Park, Keji Second Road, Shiyan Sub-district, Bao'an District, Shenzhen |
| Tel | 0755-26957035 | 0755-26957035 |
| Fax | 0755-26957440 | 0755-26957440 |
| wenzh@topband.com.cn | zhangyuhua@topband.com.cn |
III. Miscellaneous
1. Contact information of the Company
Whether the registered address, office address and its postal code, website, e-mail address and other information ofthe Company have changed during the reporting period
□ Applicable ? Not applicable
The registered address, office address and its postal code, website, E-mail address, etc. of the Company were notchanged during the reporting period, and are as given in the Annual Report 2023.
2. Information disclosure and storage place
Whether the information disclosure and storage locations of the Semi-annual Report have changed during thereporting period
□ Applicable ? Not applicable
The stock exchange website and the names and websites of the media on which the semi-annual report of theCompany were disclosed and the location where the semi-annual report of the Company are kept were not changedduring the reporting period, and are as given in the Annual Report 2023.
3. Other relevant information
Whether other relevant information of the Company has changed during the reporting period
□ Applicable ? Not applicable
IV. Main accounting data and financial indicators
Whether the Company is required to retroactively adjust or restate the accounting data of previous years
□ Yes ? No
| Reporting period | Same period previous year | Increase/decrease in this reporting period over the same period of last year | |
| Operating income (RMB) | 5,015,785,165.59 | 4,256,121,153.72 | 17.85% |
| Net profit attributable to shareholders of listed companies (RMB) | 388,828,515.18 | 258,040,692.16 | 50.68% |
| Net profit attributable to shareholders of listed companies after deducting non-recurring profit and loss (RMB) | 373,156,776.26 | 254,103,854.80 | 46.85% |
| Net cash flow from operating activities (RMB) | 470,314,174.67 | 527,842,471.18 | -10.90% |
| Basic earnings per share (RMB/share) | 0.31 | 0.20 | 55.00% |
| Diluted earnings per share (RMB/share) | 0.31 | 0.20 | 55.00% |
| Weighted return on average equity | 6.10% | 4.37% | 1.73% |
| End of the reporting period | End of the previous year | Increase/decrease at the end of the reporting period compared with the end of the previous year | |
| Total assets (RMB) | 12,019,262,403.92 | 11,184,119,392.80 | 7.47% |
| Net assets attributable to shareholders of listed companies (RMB) | 6,403,953,083.07 | 6,284,917,468.50 | 1.89% |
V. Differences in accounting data under domestic and overseas accounting standards
1. Differences in net profit and net assets between financial reports disclosed in accordance with InternationalAccounting Standards and those disclosed in accordance with Chinese Accounting Standards at the sametime
□ Applicable ? Not applicable
There is no difference in net profit and net assets between financial reports disclosed in accordance with
International Accounting Standards and those disclosed in accordance with Chinese Accounting Standards duringthe reporting period.
2. Difference between the net profit and net assets in the financial reports disclosed in accordance with bothOverseas Accounting Standards and Chinese Accounting Standards at the same time
□ Applicable ? Not applicable
There is no difference in net profit and net assets between financial reports disclosed in accordance with OverseasAccounting Standards and those disclosed in accordance with Chinese Accounting Standards during the reportingperiod.VI. Items and amount of non-recurring profit and loss
? Applicable □ Not applicable
Unit: RMB
| Items | Amount | Description |
| Profits and losses on disposal of non-current assets (including the offset of the provision for impairment of assets accrued) | -3,096,619.05 | |
| Government grants credited to income statement (except for government grants that are closely related to the normal operation of the Company, comply with national policies and regulations, enjoy in accordance with determined criteria, and have a continuous impact on the profit and loss of the Company) | 15,418,390.00 | |
| Profit/loss arising from changes in fair value of financial assets and liabilities held by non-financial enterprises, and profits and losses on disposal of financial assets and liabilities, except for the effective hedging business related to the normal operation of the Company, | 2,159,263.40 | |
| Reversal of impairment of receivables individually tested for impairment | 3,369,846.80 | |
| Other non-operating income and expenses other than those mentioned above | 776,803.05 | |
| Minus: amount affected by income tax | 2,854,659.99 | |
| Amount affected by minority shareholders' equity (after tax) | 101,285.29 | |
| Total | 15,671,738.92 |
Details of other items of profits and losses that conform to the definition of non-recurring profit and loss:
□ Applicable ? Not applicable
None.Explanation of defining the non-recurring profit and loss items listed in the Explanatory Announcement No. 1 onInformation Disclosure for Companies Offering Their Securities to the Public - Non-recurring Profit and Loss asrecurring profit and loss items
□ Applicable ? Not applicable
There is no such situation of defining the non-recurring profit and loss items listed in the Explanatory Announcement
No. 1 on Information Disclosure for Companies Offering Their Securities to the Public - Non-recurring Profit andLoss as recurring profit and loss items in the Company
Section III Management Discussion and AnalysisI. Main business engaged by the Company during the reporting period(I) Main business and products of the CompanyDuring the reporting period, we focused on the development, production and sales of intelligent control systemsolutions. Based on the core technology system of "four electrics and one network" (electric control, motor, battery,power and IoT platform), our solutions have been widely applied in four major sectors, including home appliances,power tools, new energy and industry automation, providing customers around the world with innovative, efficientand reliable customized services. We have been continuing to strengthen our ability in technological innovation andimprove our keen insight and rapid response to market needs. By continuously optimizing and upgrading ourtechnology platform, we are committed to providing our customers with more intelligent and personalized controlsolutions to help them achieve technological breakthroughs and business growth in their respective fields.
1. The Company's core technologies: "four electrics and one network" (electric control, motor, battery, powerand IoT platform).
1.1 Electric control technologies
Electric control technologies take micro-computer as the core to achieve intelligent control, involving a numberof technological fields such as sensing technology, power electronics technology, signal processing technology,communication technology, interactive technology, power and energy conversion technology and electromagneticcompatibility. We have profound accumulation in the key fields of automatic control technology, human-computerinteractive technology, embedded computing technology, machine vision technology, robotics technology,intelligent sensor technology, motion control technology, etc.
Intelligent Control
Solutions
Applications in "FourIndustries"Homeappliances
HomeappliancesPower tools
| Power tools | New energy | Industry |
Core technology of"Four Electrics and
One Network"
Core technology of"Four Electrics and
One Network"Electric controltechnology
| Electric control technology | Motor technology | Battery technology | Power technology |
IoT platform
We have developed hundreds of electric control technology platforms that can meet the diversified needs ofhome appliances, power tools, new energy and industry automation products, and our electric control technologyhas been widely applied in products such as controllers, E&M integration, power and intelligent batteries.
1.2 Motor technologies
The motor technologies play a key role in converting electrical energy into kinetic energy in intelligent controlsystems. By focusing on the continuous innovation of motors with high efficiency, low noise, high precision andhigh stability, we have developed a comprehensive technical capability from design, simulation, testing andverification to large-scale manufacturing of motor and built dozens of advanced motor product platforms such asbrushless DC motor (BLDC), coreless motor, stepper motor, servo motor, etc.
Our motor technologies have been successfully applied in many fields, such as power tools, automationequipment, intelligent appliances, new energy vehicles, robots and other fields. Especially in the fields of powertools and automation equipment, our motor technologies have become the leading technology in the industry, withremarkable results in applications in new energy vehicles, robots and medical sectors, and has been widelyrecognized in the market.
1.3 Battery technologies
Battery technology is the technology where energy is stored and managed. Its core technologies include batterymaterial application, cell design and manufacturing, and battery system integration. Battery material applicationtechnologies include positive and negative electrode materials, electrolytes, diaphragms, and other relatedapplication technologies; cell design and manufacturing include electrochemical architecture design andmanufacturing process technologies such as coating, laminating/winding, and forming; battery system integrationconsists of a series of technologies such as battery assembly, thermal management, collision and leakage safety,accurate measurement of voltage/current/temperature signals, battery state estimation and cell equalization. Thetechnologies involve multiple fields like materials science, electrochemistry, electronics and control engineering,On the basis of our technological accumulation over the years, we have developed complete technologicalcapabilities for design, development, customization and production, covering cell technology (CELL), batterymanagement technology (BMS) and battery pack (PACK) systems.
In respect of battery management system (BMS), our technology has achieved a degree of accuracy andreliability that is leading in the industry. With advanced algorithms and control strategies, our BMS enables real-time monitoring and management of battery status to ensure the optimal performance and safe operation of the
battery system. Our technological innovation in this field has made us a market leader in providing efficient andsafe battery solutions for energy storage systems, backup power, electric energy conversion, portable devices, etc.
1.4 Power technologies
The power technologies, as the key to the efficient conversion of electric energy, cover analog power, switchingpower and digital power technologies. We have extensive technology platforms in this field, focusing on providingefficient and reliable power solutions.
For the power conversion system (PCS), we have adopted innovative energy management strategies and ahigh-precision power quality control technology to optimize the charging and discharging process of the energystorage system and improve the overall performance and life of the system. Our PCS technology supports a widerange of battery types and configurations to meet the requirements of energy storage applications of different scales.In respect of photovoltaic inverter technology, we have significantly improved the energy conversion efficiency ofsolar panels through advanced control algorithms and efficient electrical energy conversion circuit design, whichsupport a variety of communication protocols.
In the field of high-power DC charging piles, we have achieved fast and safe charging of electric vehicles byapplying high-efficiency power electronic conversion technologies and intelligent charging control algorithm. OurDC charging pile design is featured in high power density and excellent heat dissipation performance, and canensure the high efficiency and stability of the charging process.
1.5 IoT platform
The IoT platform technology, as the key to coupling the sensing layer, the network layer and the applicationlayer, enables us to realize the intelligent linking of devices and the efficient management of data. Our IoT platformconsists of complete technical capabilities from modules and intelligent terminals to applications (APPs) andPlatform as a Service (PaaS), providing an integrated solution for multiple industries.
In particular, we have made significant progress in our cloud platform for home energy management. Byintelligent analysis and processing of household energy usage data, the platform helps users optimize their energyconsumption, to realize conservation and efficient use of energy. By seamlessly integrating with smart householddevices, the platform provides users with a comprehensive, easy-to-use energy management and control solution.
In the development of the optical storage and charging cloud platform, we have applied advanced IoTtechnologies to realize the intelligent collaboration among solar power generation, energy storage and chargingfacilities. The platform can not only improve the efficiency of energy utilization, but also provide users with
convenient energy management and use experiences, to promote the wide application of renewable energies.In addition, our digital energy management cloud platform also provides comprehensive energy monitoring,analysis and optimization services for industrial, commercial and public facilities through big data and artificialintelligence technologies. The platform can help users reduce energy consumption, improve the sustainability ofenergy use, and support businesses and the society to achieve green development goals.
2. Main products of the Company: To provide customized system solutions for four major sectors: homeappliances, power tools, new energy and industry automation.Our products are mainly classified into four categories: controller, motor, power and battery. Bycomprehensively utilizing the "four electrics and one network" core technology, we provide customized productsand integrated solutions to satisfy the demands of customers from the four downstream industries including homeappliances, tools, new energy and industry.
2.1 Solutions for home appliances
The Company provides a range of customized products and services, from product concept, design, anddevelopment to manufacturing and delivery for branded customers in the home appliance industry. The products aremainly involved in controller and motor categories, including home appliance master control, power control, motordrive and control, display control, etc. The products are used in various fields, such as HVAC, kitchen appliances,cleaning appliances, health care, lighting, and intelligent home.
2.2 Solutions for power tools
The power tool industry mainly includes power, garden, and other professional tools. We provide brandcustomers in the power tool industry with customized products and services from product conceptualization, design,development to manufacturing and delivery. Our products mainly include four categories, i.e. controller, motor,
ApplicationscenariosProducts
battery and power, and some intelligent machine products.
2.3 Solutions for new energy
Our new energy business has developed a complete product matrix covering core components, completemachine and system solutions. In respect of core components, we have completed the deployment of the coreproducts, including charging module, cell, BMS, PCS and EMS. In respect of complete machine, we have developeda complete series of products, including AC/DC charging pile, household energy storage, C&I energy storage,backup power for communication, and portable energy storage. In terms of system solutions, we have developedcomplete solutions around scenarios such as optical storage and charging, zero-carbon parks, and home green energyby integrating the core technical capabilities of complete machine and cloud platform.
ApplicationscenariosProducts
2.4 Industrial solutions
In the industrial control sector, our main business is the research and development, production and sales ofspecial industrial intelligent control products, mainly including stepping, servo drive and motion control products.We mainly provide downstream automation equipment customers with products such as controller, drive and motor,and the downstream applications involve such industries as 3C electronics, robotics, medical equipment,semiconductor equipment, PV, lithium-ion battery, etc. We are committed to helping automation equipmentmanufacturers improve the equipment design performance, reduce equipment manufacturing costs, and speed upthe development of new equipment.
| Products | Application scenarios |
(II) The industry in which the Company operates
1. Basic situation of the industry
Intelligent controllers, as high-tech products integrated with advanced automatic control technology, computertechnology, sensing technology, microelectronics and power electronics technology, play the role of "nerve center"and "brain" in electronic products, like the nervous system of people. By collecting, processing and analyzingvarious information and commands, intelligent controllers can realize the intelligent driving and control of thecontrolled object, so as to complete various tasks. The wave of intelligent substitution has completely changed ourway of life and work. As one of the core components of intelligence, intelligent controller has a wide range ofapplications, including home appliances, smart homes, smart buildings, power tools, industry and automation,automobile electronics, new energy, medical equipment and so on.With the continuous integration and development of new technologies on artificial intelligence, robotics, IoTand cloud computing, the application fields of intelligent controllers have been further expanded. For example, bycombining with AI technology, intelligent controllers are now able to predict and adapt to the behaviors and needsof users, enabling more personalized services. In the field of industry automation, intelligent controllers combinedwith robotics are able to perform more complex tasks, improve production efficiency and safety, and reduce costsat the same time. It is worth mentioning that humanoid robots are also beginning to go into the reality. From homeassistants to operators in high-risk work environments, humanoid robots are capable of performing complex humantasks in a variety of environments, and intelligent controllers play a crucial role in them.Technological progress not only accelerates the iteration of products, but also indicates a broader development
ApplicationscenariosProducts
prospect of the intelligent controller sector. We are standing on the threshold of intelligent technology revolution,and the integration of intelligent controllers with AI and robotics is reshaping the way we live and work, openingup infinite possibilities. In the future, with the continuous progress and innovation of technology, we can lookforward to the emergence of more new products, new business formats and new models, which will further promotethe development of the intelligent controller sector.
2. Position in industry
As a leader in intelligent control field, we are not only a pioneer in providing intelligent control solutionsworldwide, but also a synonym for innovation. Our success is because of our insistence on the core value conceptof "Agile·Innovation·Partnership" and our relentless drive for technological innovation. By building an integratedtechnology system of "four electrics and one network" (electric control, motor, battery, power and IoT platform),we provide advanced customized solutions for four major sectors, including home appliances, power tools, newenergy and industry automation.Our core competence lies in our "platform-based technological innovation ability, partnering customer serviceability and systematic rapid response ability". The combination of the three abilities has not only promoted ourcontinuous progress, but also helped us build close relationships with our customers leading in many sectors. Now,we have become the leading provider of intelligent control solutions for the home appliance and power toolindustries, and lead innovation in the new energy and industry automation sectors. Our leadership is not onlyreflected in our market share and technological innovation, but more importantly, we have become a key forcedriving the entire industry forward.II. Analysis of core competitiveness
1. Platform-based technological innovation ability
The Company takes technology as the gene of enterprise development and considers innovation as the corecompetence of the Company. The Company has the industry-leading platform technology innovation capability,forming a complete technology platform covering various core technology areas of intelligent control integrationsolutions.
The Company has the ability of deep understanding of various control mechanisms, independentimplementation, and continuous innovation, covering the core technologies of intelligent control algorithm, motorcontrol, lithium battery, sodium battery, sensing, human-machine interaction, image recognition, digital power
supply, embedded software, temperature control, heating, and cooling, etc.
In addition, the Company has a rich product line that forms many product platforms. Each core productplatform has been verified in mass production to ensure quality and reliability. We can quickly provide customerswith high-quality, differentiated custom solutions to meet their needs. In addition, the Company has the industry'sunique "controller + motor + battery + power supply" total solution capability, with the ability to continuouslydevelop innovative solutions in new categories, which can help customers innovate in the competition to win.In addition, we have the "controller + motor + battery + power + cloud platform" overall solution capabilitythat is unique in the industry, the ability to continuously develop innovative new category solutions, and can helpcustomers innovate and win in the competition.
2. Partnering customer service ability
The Company values long-term development, takes value co-creation and value win-win as the developmentconcept, and develops long-term partnership with customers. Supported by platform-based technology innovationcapability, the Company continues to gain insight into customer needs, creates in-depth co-creations with customers,establishes organizational customer relationships, and builds partner-based customer service capabilities.
Through deployment in many regions, we have established international production bases in the Pearl RiverDelta, Yangtze River Delta, Southeast Asia, North America and Europe, have built an international market platformto improve the local service ability from in terms of management ability and resource allocation, and have set up anumber of overseas offices to cooperate closely with customers. We have established in-depth cooperativepartnership with outstanding brand customers at home and abroad in various business fields. Through long-termcooperation and mutual development, we have gained public praises and a good brand reputation in the industry,and have been widely recognized and praised by our customers.
3. Systematic fast response ability
As intelligent technology evolves and uncertainty increases, the pace of global innovation iteration isaccelerating, and companies increasingly need to be more agile in their operations to serve their customers. Basedon a deep understanding of the intelligent control business, the Company has created a strong platform system fromthe implementation of IPD ideas in the R&D and design process, the core customer ISC changes in the supply chainsystem, the laboratory and quality assurance system, and the intelligent manufacturing platform system to build acustomer-centric process-oriented organization, internalizing the Company's superior capabilities into agile
operational capabilities, and the agile system will further strengthen the Company's advantages, and the two form amutually reinforcing and virtuous development, thus achieving sustainable, high-quality growth.III. Analysis of main businessIn the first half of 2024, the economic sentiment indexes of the industry have picked up, and we are committedto using cutting-edge intelligent technologies and clean energy application technologies to develop to a moreintelligent and low-carbon future world. Although the industry faces many challenges such as multi-regionaldevelopment, supply chain reconstruction, higher export freights, trade protectionism, etc., we firmly believe thatwith the general trend of interconnection of everything, intelligence and low carbon, the new energy industry willalso usher in upgrades, and the downstream application scenarios are constantly expanding and upgrading. We willcontinue to adhere to the high-quality development strategy, actively grasp the structured opportunities, keepdeveloping our local and overseas businesses based on our strengths of being a platform-based enterprise and ininternational operations, enhance our product power and improve our internal operation capability by putting moreefforts into technological innovation, and at the same time, accelerate the development of overseas market,strengthen applications in the emerging industries and increase cooperation with the top customers to increase themarket share. During the reporting period, we achieved growth in both revenue and gross profit rate in all thebusiness sectors.In the first half of 2024, with the efforts of all Topband employees, we realized an operating income of RMB
5.016 billion, with a year-on-year growth rate of 17.85%, a net profit attributable to shareholders of the listedcompany of RMB 389 million, with a year-on-year growth rate of 50.68%, and a net profit attributable toshareholders of the listed company of RMB 373 million after deducting non-recurring profits and losses, with ayear-on-year growth rate of 46.85%. In the 2nd quarter, we realized a revenue of RMB 2.698 billion, a new high ina single quarter, with a quarter-on-quarter growth rate of 16.37% and a year-on-year growth rate of 19.31%, and anet profit attributable to parent company of RMB 204 million after deducting non-recurring profits and losses, witha quarter-on-quarter growth rate of 20.32% and a year-on-year growth rate of 25.18%. In the 2nd quarter, weachieved a net cash flow of RMB 371 million from operating activities, with a quarter-on-quarter growth rate of
272.82%. In the 2nd quarter, the exchange rates fluctuated less than the same period last year, and the net profitafter deducting non-recurring profits and losses and profits and losses on foreign exchange achieved a substantialincrease on a year-on-year basis.
(I) We realized an operating income of RMB 5.016 billion during the reporting period, with a year-on-year growth rate of 17.85%. The business developments in the first half of 2024 are as follows:
1. Power tool sector: The economic sentiment indexes of the sector in the first half of 2024 recovered, and thedownstream inventory reached the minimum level. Our power tool sector realized a revenue of RMB 1.959 billion,with a year-on-year growth rate of 20.90%, and a gross profit rate of 24.62%, with a year-on-year growth rate of
1.12%.
Electrification and cordless is the trend for power tools and OPE products. Electric and cordless tools have theproduct advantages of better user experience, cost effectiveness, environmental protection and low noise, and areexpected to accelerate the substitution of manual and fuel tools and devices. In European and American markets,power tools are very popular, and the demands for new products and technological upgrading continue to increase.In the emerging markets, with the penetration of electrified and cordless tools to professional, industrial andconsumer scenarios, it will bring continuous growth momentum for the development of the power tool industry. Topcustomers lay emphasis on faster supply chain transformation and product innovation to meet the market demandfor high-performance power tools more quickly and to realize diversified supply and energy consumption reduction.
As a partner of the power tool top customers leading in the world, we focus on the top customers and industrialand professional products with high value to continue to increase sales, make special breakthroughs in thecompetitive products, and incubates new business opportunities such as high-voltage and high-power tools. We havedeveloped the core technologies on electric control, battery pack BMS, motor, IoT and intelligent system andcomplete machine, to provide customers with one-stop customized solutions. We are putting continuous efforts topromote industry innovation, give full play to the advantages of technology platform and product platform, providecustomers with differentiated solutions based on different product positioning, and develop product applicationopportunities in the surrounding scenarios of power tool use. At the same time, we rely on our leading advantage ofdeveloping overseas markets and excellent operational capabilities to meet the multi-regional supply demands ofthe top customers to achieve further increases in the share of power tools. The share of power tools in the totalrevenue increased from 36.05% in 2023 to 39.05% at the end of the reporting period.
2. Home appliance sector: With the lowering of home appliance inventory and the recovery of the economicsentiment indexes, the home appliance sector realized a sales revenue of RMB 1.773 billion in the first half of 2024,with a year-on-year growth rate of 18.15%. With the increase of intelligent upgrading and low carbon needs of theindustry, the pace of integration of AI, voice and IoT technologies with the current technologies has become faster,
technological innovation based products have expanded the market space, and the penetration rate of intelligenthome appliances in the emerging markets has increased. As Chinese enterprises with proprietary brands aredeveloping overseas markets to building a global supply chain, the market share further concentrates towards thetop enterprises.
During the reporting period, there were some short-term disturbance factors such as higher raw material pricesand rising sea freights in the industry, and the consumer confidence index improved and was still at a historical low,but the overall impact on our home appliance business was limited. As an important partner of home appliancebrands, when brand owners pay more attention to insight into consumer needs and fast iteration of products, ouradvantages in platform technology can quickly empower brand customers, and enable many home appliance topcustomers in the European, American, Japanese and emerging markets to increase their market share. The segmentswe have selected have all realized growth, with the refrigerator, washing machine, air conditioner, small homeappliance product, and cleaning product segment contributing most of the growth, where the air conditioner segmentthat mainly focusing on the overseas markets realized the largest growth and is continuously developing at a highgrowth rate. The concentration rate of the top 10 customers of the home appliance segment increased, and byselecting product types with high growth rate for the emerging markets, we supplied more cost effective productsin virtue of our strengths in product power and supply chain to realize higher growth rates; we have madedeployment in many regions in a prospective way to stabilize the share subject to the industrial transfer of customers,and have also developed business opportunities of overseas merger and acquisition and overseas customers forChinese enterprises. We will continue to intensively develop opportunities with the existing customer and expandnew categories to realize multi-category coverage for the major customers, and actively develop various incrementalmarkets and new customers to further increase the market share. In the future, we are expected to maintain a stablegrowth rate while the industry develops.
3. New energy sector: With the core technologies on charging, cell, cloud platform, BMS, PCS and EMS, wesupply two major categories of products to customers, i.e. controller and components, and complete machine andsystem, which are mainly applied in the energy storage and new energy vehicle fields. We actively grasp theincremental market opportunities in grid-side energy storage, C&I energy storage, and new energy vehicle charging.In the first half of 2024, we realized a sales revenue of RMB 1.04 billion in the new energy sector, with a year-on-year growth rate of 13.74%.
We realized a revenue of RMB 760 million in the energy storage sector, with a year-on-year growth rate of
13.74%. Challenges and opportunities both exist in the energy storage sector, and supply-demand changes in the
sector both bring about a decline in costs and accelerate the rapid increase in end demands. By supplyingautonomous and controllable components and products, complete machine products with proprietary brand andmulti-scenario solutions, we actively expand the application of household energy storage, industrial and commercialenergy storage, PV power generation, energy storage and charging, "zero-carbon park" and other scenarios inEurope, America, Asia, South Africa, West Africa and other countries to meet the differentiated needs of differentcustomer types such as complete machine factories, operators, and government entities. During the reporting period,we realized fast growth in the grid-side energy storage, commercial and industrial energy storage and BMS segments,and made breakthroughs for inverter angle customers, and launched some new products, including hydraulic coolingall-in-one unit, PV power generation, energy storage and charging cloud, BMS of the new generation for commercialand industrial energy storage. The product power continued to increase. The energy storage demand is huge in thecontext of global energy transition. We will continue to provide multi-scenario integrated energy storage solutionsand digitalization based upgrading for these sectors to accelerate the process of energy transition.
We realized a revenue of RMB 280 million in the new energy vehicle sector, with a year-on-year growth rateof 14.43%. The growth rates in the PV power generation, energy storage and charging segment and the corecomponents for intelligent driver assistance were high. We attach importance to the development of autonomousand controllable technologies, continuously improve the product platform, have launched certified new products forDC charging piles, AC charging piles and chargers according to market demands, research on multi-scenario PVpower generation, energy storage and charging integrated solutions, and have implemented multiple solutions forthe PV power generation, energy storage and charging scenario in many provinces and cities across the country.Since our PV power generation, energy storage and charging cloud platform was launched, a total of 270,000 kWhwas charge as of the end of the reporting period, an increase of 533% compared to the end of 2023.During the reporting period, we realized a revenue of RMB 362 million from controller and componentproducts, with a year-on-year growth rate of 31.39%, a fast growth, and a revenue of RMB 678 million fromcomplete machine and system, with a year-on-year growth rate of 6.11%.
4. Industrial control sector: In the first half of 2024, we realized a sales revenue of RMB 156 million, with ayear-on-year growth rate of 13.82%, where the year-on-year growth rate of servo drive and motor system was 16%.We mainly provide PLC, motion control cards, stepper/servo drives, motors and other core components fordownstream automation equipment and industrial robots, as well as motion control solutions based on industryprocesses, which are widely used in such sectors as 3C electronics, industrial robot, medical equipment, PV
equipment, semiconductor equipment, adhesive dispensing, engraving, SMT, etc.
Industrial control sector: The automation market is maturing, and the market is transiting from rapid growthto a steady market. The domestic industrial control sector in the med-and-long term will benefit from "industrialupgrading + machine replacement", domestic replacement, digitalization, intelligence, and low-carbon development.In recent years, the attention of domestic industrial control customers has shifted from the efficiency to the securityof supply. Domestic enterprises are superior in term of security of supply, product cost-effectiveness, fast responsefrom engineers and other aspects. There are greater opportunities in the industry chain security and high-endmanufacturing.During the reporting period, the Company, based on the accumulated processes, product design, continuousimprovement of product reliability, as well as quick response to user needs and feedback, has successfully met theneeds of differentiated applications while enhancing the performance, and helped manufacturers of automationequipment improve the equipment design performance, reduce the cost of equipment manufacturing, and speed upthe development of new equipment, so as to accelerate the degree of automation of the manufacturers. The Companyis committed to becoming the "leader of efficient and easy-to-use servo and stepping products" in the industrialcontrol sector. During the reporting period, by focusing on the key sectors and key customers, we achievedsubstantial revenue growth in such sectors as 3C, harness, engraving, adhesive dispensing, clothing, etc., and thesales volume of servo products increased by more than 30% on a year-on-year basis.
Robot sector: We have developed the core component products and technologies for controller and algorithm,coreless motor, servo drive, battery, etc., and our products, including controller, battery pack, BMS, motor andintegrated solution, have been applied in industrial robots, rail-mounted robots for medical purposes, mowing robotsand cleaning robots. We have the first-mover advantages of early deployment, top technology in China and a largeshare in the segment of coreless motor. During the reporting period, we actively confirmed the needs of localhumanoid robot customers, completed the prototype production, sent samples to some top customers, and activelydeveloped market opportunities in humanoid robots, low-altitude economy and other fields.
(II) During the reporting period, we realized a net profit of RMB 373 million after deducting non-recurring profits and losses, with a year-on-year growth rate of 46.85%, and a net profit attributable toparent company of RMB 389 million, with a year-on-year growth rate of 50.68%. The main reasons are asfollows:
1. Improved profitability: In the first half of 2024, the economic sentiment indexes of the industry that weoperate recovered and the supply-demand environment was friendly. By further reducing the cost and improvingthe efficiency of the old businesses, and improving the comprehensive profitability through technologicalinnovation and adding new products, we achieved a combined gross margin of 23.90% during the reporting period,an increase of 2.32% on a year-on-year basis, and the gross margin of several sectors all increased on a year-on-year basis. The gross profit rate of export in the first half of the year also benefited from the slight depreciation ofChina Yuan.
2. Three period expenses (selling expenses, R&D expenses, and management expenses): The total amountof the three period expenses increased by approximately RMB 98 million on a year-on-year basis, mainly due toinvestment for new businesses and new markets. The R&D expenses increased by approximately RMB 71 millionon a year-on-year basis, mainly due to investment for the development of new products, accelerated integration andapplication of AI, IOT, 5G and other technologies, and quicker R&D of new businesses and new technologies; theselling expenses increased by approximately RMB 38 million on a year-on-year basis, mainly due to the increasedexpenses for domestic and overseas exhibition fees for market development and for new business and marketdevelopment in the first half of the year; the management expenses decreased by RMB 11 million on a year-on-yearbasis, mainly due to the optimized internal management, improved operation efficiency and other measures of theCompany.
(III) During the reporting period, we realized a net cash flow of RMB 470 million from operatingactivities, decreased by 10.9% on a year-on-year basis. The main reasons are as follows:
In the 1st and 2nd quarters, the net cash flows from operating activities were RMB 99 million and RMB 371million respectively, with a quarter-on-quarter growth rate of 272.82% in the 2nd quarter. The net cash flow of the1st quarter was mainly due to our increased raw material payments for increased demands; in the 2nd quarter, ourpayments for raw materials and for employee remunerations both decreased, leading to a substantial increase in thenet cash flow from operating activities on a quarter-on-quarter basis.
(IV) Progress of overseas bases:
In the first half of the year, the total revenue from our overseas bases in Vietnam, India, Mexico and Romaniawas RMB 1.011 billion, with a year-on-year growth rate of 72.65%. The percentage of the revenue from overseasbases in the total revenue increased to 20.16%, and that in the revenue from export sales increased to 31.19%.Year-on-year changes in major financial metrics
Unit: RMB
| Reporting period | Same period previous year | Year-on-year increase/decrease | Reason for change | |
| Operating income | 5,015,785,165.59 | 4,256,121,153.72 | 17.85% | |
| Operating cost | 3,817,211,001.65 | 3,337,826,833.15 | 14.36% | |
| Selling expenses | 180,788,131.47 | 143,034,445.61 | 26.39% | Compared with the same period of last year, it increased by RMB 37.75 million during the reporting period, an increase of 26.39%. This was mainly due to the increase in remunerations of employees for new business development during the reporting period, as well as the increase in travel expenses, exhibition fees and advertising expenses incurred for market development. |
| Management expenses | 190,587,638.62 | 201,474,565.60 | -5.40% | Compared with the same period of last year, it decreased by RMB 10.89 million during the reporting period, a decrease of 5.40%. It was mainly due to the optimized internal management and improved operation efficiency of the Company and the absence of equity incentive expenses during the reporting period compared with the same period of last year. |
| Finance expenses | -28,781,584.15 | -50,992,475.24 | 43.56% | Compared with the same period of last year, it increased by RMB 22.21 million during the reporting period, an increase of 43.56%. It was mainly due to the decreased gains from foreign exchange during the reporting period compared with the same period of last year. |
| Income tax expenses | 36,778,573.81 | 6,043,729.44 | 508.54% | Compared with the same period of last year, it increased by RMB 30.73 million during the reporting period, an increase of 508.54%. It was mainly due to the income tax expense for the increased profit during the reporting period. |
| R&D investment | 455,397,817.14 | 388,935,143.31 | 17.09% | Compared with that at beginning of period, it increased by RMB 66.46 million during the reporting period, an increase of 17.09%. It was mainly due to the increased investment for the key strategic projects such as frequency variable control system, energy storage inverter, charging pile, and C&I energy storage BMS, etc. |
| Net cash flow from operating activities | 470,314,174.67 | 527,842,471.18 | -10.90% | Compared with the same period of last year, it decreased by RMB 57.53 million during the reporting period, a decrease of 10.90%. It was mainly due to the increased payments for remunerations and cash payments during the reporting period. |
| Net cash flow from investment activities | -313,160,118.83 | -468,657,578.93 | 33.18% | Compared with the same period of last year, it increased by RMB 155.5 million during the reporting period, an increase of 33.18%. It was mainly due to the decrease in cash payments for purchasing long-term assets during the reporting period compared with the same period of last year. |
| Net cash flow | -120,296,374.28 | 284,893,844.15 | -142.22% | Compared with the same period of last year, it decreased |
| from financing activities | by RMB 405.19 million during the reporting period, a decrease of 142.22%. It was mainly due to the increased cash payments for borrowings repayment during the reporting period. | |||
| Net increase in cash and cash equivalents | 78,953,413.52 | 358,617,037.74 | -77.98% | Compared with the same period of last year, it decreased by RMB 279.66 million during the reporting period, a decrease of 77.98%. It was mainly due to the decrease in net cash flows from financing activities: |
Significant changes in the Company's composition or source of profit during the reporting period
□ Applicable ? Not applicable
There was no significant change in the Company's composition or source of profit during the reporting period.Composition of operating income
Unit: RMB
| Reporting period | Same period previous year | Year-on-year increase/decrease | |||
| Amount | Proportion in operating income | Amount | Proportion in operating income | ||
| Total operating income | 5,015,785,165.59 | 100% | 4,256,121,153.72 | 100% | 17.85% |
| By industry | |||||
| Intelligent control electronics industry | 5,015,785,165.59 | 100.00% | 4,256,121,153.72 | 100.00% | 17.85% |
| By product | |||||
| Power tools | 1,958,638,686.77 | 39.05% | 1,620,045,611.60 | 38.06% | 20.90% |
| Home appliances | 1,772,717,316.12 | 35.34% | 1,500,351,397.24 | 35.25% | 18.15% |
| New energy | 1,039,957,148.27 | 20.73% | 914,360,730.57 | 21.48% | 13.74% |
| Industry | 155,602,830.56 | 3.10% | 136,712,993.99 | 3.21% | 13.82% |
| Intelligent solutions and others | 88,869,183.87 | 1.77% | 84,650,420.32 | 1.99% | 4.98% |
| By region | |||||
| Domestic | 1,777,778,390.12 | 35.44% | 1,634,215,062.54 | 38.40% | 8.78% |
| Overseas | 3,238,006,775.47 | 64.56% | 2,621,906,091.18 | 61.60% | 23.50% |
The situation of industries, products or regions accounting for more than 10% of the Company's operating incomeor operating profit? Applicable □ Not applicable
Unit: RMB
| Operating income | Operating cost | Gross profit rate | Increase/decrease of operating income over the same period of last year | Increase/decrease of operating costs over the same period of last year | Increase/decrease of gross profit rate over the same period of last year | |
| By industry | ||||||
| Intelligent control electronics industry | 5,015,785,165.59 | 3,817,211,001.65 | 23.90% | 17.85% | 14.36% | 2.32% |
| By product | ||||||
| Power tools | 1,958,638,686.77 | 1,476,432,898.03 | 24.62% | 20.90% | 19.12% | 1.12% |
| Home appliances | 1,772,717,316.12 | 1,362,701,938.28 | 23.13% | 18.15% | 13.91% | 2.86% |
| New energy | 1,039,957,148.27 | 803,710,510.83 | 22.72% | 13.74% | 8.56% | 3.69% |
| By region | ||||||
| Domestic | 1,777,778,390.12 | 1,412,106,339.80 | 20.57% | 8.78% | 6.28% | 1.87% |
| Overseas | 3,238,006,775.47 | 2,405,104,661.85 | 25.72% | 23.50% | 19.71% | 2.35% |
The Company's main business data for the last period adjusted according to the caliber at the end of the reportingperiod when the statistical caliber of the Company's main business data is adjusted during the reporting period
□ Applicable ? Not applicable
IV. Analysis of non-main business? Applicable □ Not applicable
Unit: RMB
| Amount | Proportion in total profit | Explanation of reasons | Whether it is sustainable | |
| Investment income | 2,025,727.35 | 0.48% | Mainly investment incomes from financial products purchased during the reporting period | No |
| Asset impairment loss | -21,090,974.63 | -4.95% | Provision for decline in the inventory value made | No |
| Non-operating income | 1,739,303.34 | 0.41% | Customer default compensations and various fines | No |
| Non-operating expenses | 5,563,887.00 | 1.31% | Mainly losses on scrapping of non-current asset and quality deductions by customers | No |
| Impairment losses on credit | -7,181,453.97 | -1.68% | Mainly accounts receivable, bad debt provision accrued | No |
V. Analysis of assets and liabilities
1. Significant changes in asset composition
Unit: RMB
| End of the reporting period | End of the previous year | Increase/decrease of proportion | Explanation of major changes | |||
| Amount | Proportion in total assets | Amount | Proportion in total assets | |||
| Monetary capital | 1,601,763,206.84 | 13.33% | 1,550,450,889.82 | 13.86% | -0.53% | No significant changes |
| Accounts receivable | 2,674,255,585.49 | 22.25% | 2,431,773,877.56 | 21.74% | 0.51% | No significant changes |
| Inventory | 1,847,349,634.73 | 15.37% | 1,653,816,715.51 | 14.79% | 0.58% | No significant changes |
| Investment property | 101,985,215.34 | 0.85% | 103,404,402.85 | 0.92% | -0.07% | No significant changes |
| Long-term equity investment | 37,614,643.25 | 0.31% | 37,748,179.30 | 0.34% | -0.03% | No significant changes |
| Fixed assets | 2,327,328,836.76 | 19.36% | 2,102,862,886.72 | 18.80% | 0.56% | No significant changes |
| Construction in progress | 527,629,047.04 | 4.39% | 568,107,950.65 | 5.08% | -0.69% | No significant changes |
| Right-of-use assets | 91,208,911.39 | 0.76% | 101,446,985.74 | 0.91% | -0.15% | No significant changes |
| Short-term loans | 328,398,035.22 | 2.73% | 279,348,750.00 | 2.50% | 0.23% | No significant changes |
| Contractual liabilities | 172,851,052.12 | 1.44% | 168,681,571.89 | 1.51% | -0.07% | No significant changes |
| Long-term loans | 505,888,984.86 | 4.21% | 437,747,877.47 | 3.91% | 0.30% | No significant changes |
| Lease liabilities | 55,996,796.93 | 0.47% | 61,429,811.03 | 0.55% | -0.08% | No significant changes |
2. Major overseas assets
? Applicable □ Not applicable
| Asset details | Reasons of formation | Asset size | Location | Operation mode | Control measures to ensure the safety of assets | Earning position | Proportion of foreign assets to net assets of the Company | Whether there is a significant risk of impairment |
| Operation Center in India | Investment and establishment | 586,483,931.77 | Pune, India | R&D, production and sales | Financial supervision and external audit | 42,469,097.16 | 9.16% | No |
| Vietnam Dong Nai Operation Center | Investment and establishment | 889,524,666.33 | Dong Nai Province, Vietnam | R&D, production and sales | Financial supervision and external audit | 163,820,976.26 | 13.89% | No |
| Other disclosures | None | |||||||
3. Assets and liabilities measured at fair value
? Applicable □ Not applicable
Unit: RMB
| Items | Opening balance | Profits and losses from changes in fair value in the current period | Changes in cumulative fair value included in equity | Impairment accrued in the current period | Purchase amount in the current period | Amount sold in the current period | Other changes | Amount at the end of the year |
| Financial assets | ||||||||
| 1. Tradable financial assets (excluding derivative financial assets) | 656,704,087.16 | 243,585,487.17 | 936,047,600.68 | 885,430,333.27 | -1,370,000.00 | 705,951,354.57 | ||
| 4. Other equity instrument investments | 41,192,950.00 | 41,192,950.00 | ||||||
| Subtotal of financial assets | 697,897,037.16 | 243,585,487.17 | 936,047,600.68 | 885,430,333.27 | -1,370,000.00 | 747,144,304.57 | ||
| Total of the above | 697,897,037.16 | 243,585,487.17 | 936,047,600.68 | 885,430,333.27 | -1,370,000.00 | 747,144,304.57 | ||
| Financial liabilities | 0.00 | 0.00 | ||||||
Contents of other changesNone.Whether there are significant changes in the measurement attributes of the Company's main assets during thereporting period
□ Yes ? No
4. Restricted asset rights by the end of the reporting period
Refer to Section X Financial Report, VII. Notes to Items in Consolidated Financial Statements, 31. Assets withlimited ownership or use right for details.VI. Investment analysis
1. General situation
? Applicable □ Not applicable
| Investment during the reporting period (RMB) | Investment amount in the same period of last year (RMB) | Range of change |
| 0.00 | 40,000,000.00 | -100.00% |
2. Major equity investment obtained during the reporting period
□ Applicable ? Not applicable
3. Major non-equity investment obtained during the reporting period
□ Applicable ? Not applicable
4. Investment in financial assets
(1) Securities investment
□ Applicable ? Not applicable
There was no securities investment during the reporting period.
(2) Derivatives investment
? Applicable □ Not applicable
1) Derivative investments for hedging during the reporting period
? Applicable □ Not applicable
Unit: RMB ten thousand
| Types of derivatives investment | Initial investment amount | Beginning amount | Profits and losses from changes in fair value in the current period | Changes in cumulative fair value included in equity | Purchase amount during the reporting period | Amount sold during the reporting period | Ending amount | Proportion of investment amount at the end of the period in net assets of the Company at the end of the reporting period |
| Trading of foreign exchange derivatives | 10,644.08 | 9,917.28 | 0 | 0 | 726.8 | 9,917.28 | 726.8 | 0.11% |
| Total | 10,644.08 | 9,917.28 | 0 | 0 | 726.8 | 9,917.28 | 726.8 | 0.11% |
| Explanation of accounting policies and specific accounting principles for hedging business during the | The Company has made corresponding accounting and presentation for foreign-exchange derivative transaction to be done according to Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments, Accounting Standards for Business Enterprises No. 24 - Hedge Accounting, Accounting Standards for Business Enterprises No. 37 - Presentation of Financial Instruments issued by Ministry of Finance, and other regulations and guides. Foreign exchange | |||||||
| reporting period, as well as whether there have been significant changes compared to the last reporting period | derivative contracts were initially and subsequently measured using tradable financial assets, which fair value is priced by financial institutions based on open market trading data, and there has been no significant change compared to the last reporting period. |
| Explanation of actual profits and losses during the reporting period | The amount of our foreign exchange derivative transactions credited to the current actual profits and losses during the reporting period is RMB 155,200. |
| Explanation of hedging effect | The Company conducted forward exchange transaction, effectively reducing the risk of exchange fluctuations through reasonable RMB forward exchange transaction, focusing on future transaction costs and incomes, and achieving asset hedging with the aim of avoiding risks. |
| Capital sources of derivatives investment | Self-own capitals |
| Risk analysis and control measures of derivatives positions during the reporting period (including but not limited to market risk, liquidity risk, credit risk, operational risk, legal risk, etc.) | I. Risk analysis of forward exchange transaction The forward exchange transaction business carried out by the Company and its subsidiaries followed the principle of locking in exchange rate risk and not engaging in speculative or arbitrage trading operations. However, there were still certain risks in forward exchange transaction operations: 1. Exchange rate fluctuation risk: In the event of significant fluctuations in exchange rates, if the forward settlement exchange rate stipulated in the confirmation letter for forward exchange transactions was lower than the real-time exchange rate on the settlement day, it will cause exchange losses. 2. Internal control risk: Because forward exchange transactions are highly specialized, risks may arise due to inadequate internal control systems. 3. Customer default risk: If the customer's accounts receivable are overdue and the payment cannot be collected within the predicted payment period, it will cause a delay in forward exchange settlement and result in losses for the Company. 4. Risk of payment collection prediction: In general, the Sales Department of the Company predicts payment collection based on customer orders and expected orders. Nonetheless, during the actual execution process, customers may adjust their own orders and the Company may make an inaccurate payment prediction, leading to the risk of delayed delivery of forward exchange settlement. 5. Legal risk: Changes in relevant laws or violations of relevant legal systems by counterparties may result in contracts being unable to be executed normally and cause losses to the Company. II. Risk control measures 1. The Company has formulated the Internal Control System for Forward Exchange Transactions, which provides clear regulations on the Company's foreign exchange transaction operating principles, approval authority, internal operating procedures, responsible departments and individuals, information isolation measures, and risk management for forward exchange transaction, and can meet the needs of practical operations, and its internal control and risk management measures formulated are practical and effective. 2. The finance center and audit department of the Company, as relevant responsible departments, have clear management positioning and responsibilities, and responsibilities are assigned to their positions. Through this hierarchical management, the risks of single person or individual department operations are fundamentally eliminated, and the speed of risk response is also improved while effectively controlling risks. 3. To prevent delayed delivery of forward exchange transactions, the Company attaches great importance to the management of accounts receivable and actively collects accounts receivable to avoid the phenomenon of overdue accounts receivable. 4 The Company engages in financial derivative transaction business with large commercial banks with legal qualifications, closely monitors relevant laws and regulations in the field, avoiding potential legal risks. 5. The Company's forward exchange transactions must be based on a cautious prediction for foreign currency receipts (payments) of the Company, and the foreign currency amount of the foreign exchange transaction contract must not exceed 90% of the annual planned total amount of foreign currency receipts (payments). The delivery period of forward exchange transactions needs to match the Company's predicted foreign currency collection time. |
| Changes in market price or fair value of products of the invested derivatives during the reporting period, and the disclosure of specific | Determine changes in fair value based on market quotes from external financial institutions. |
| methods used and relevant assumptions and parameters set in the analysis of the fair value of derivatives | |
| Litigation (if applicable) | Not applicable |
| Disclosure date of Board of Directors announcement for approval of derivatives investment (if any) | January 5, 2024 |
2) Derivative investments for speculation during the reporting period
□ Applicable ? Not applicable
We had no derivative investments for speculation during the reporting period.
5. Usage of raised capitals
? Applicable □ Not applicable
(1) General use of raised capitals
? Applicable □ Not applicable
Unit: RMB ten thousand
| Year of raising capitals | Ways of raising capitals | Total amount of raised capitals | Net amount of raised funds | Total amount of raised capitals used in the current period | Total amount of raised capitals used | Total amount of raised capitals for change of purpose during the reporting period | Cumulative total amount of raised capitals with changed purposes | Cumulative total amount proportion of raised capitals with changed purposes | Total amount of unused raised capitals | Purpose and destination of unused raised capitals | Amount of raised capitals which have been idle for more than two years |
| 2019 | Public offering of convertible bonds | 57,300.00 | 56,543.65 | 8,741.98 | 56,543.65 | 8,241.59 | 8,241.59 | 14.38% | 0 | Not applicable | 0 |
| 2021 | Non-public offering of shares | 105,000.00 | 103,684.71 | 9,577.86 | 96,911.87 | 0 | 69,144.83 | 65.85% | 6,772.84 | Temporary replenishment and deposit in the special account | 0 |
| for raised capitals | |||||||||||
| Total | -- | 162,300.00 | 160,228.36 | 18,319.84 | 153,455.52 | 8,241.59 | 77,386.42 | 47.68% | 6,772.84 | -- | 0 |
| General use of raised capitals | |||||||||||
| 1. Actual amount and time of arrival of capitals raised (1) Public offering of convertible corporate bonds to raise funds in 2019 The Company publicly issued 5.73 million convertible corporate bonds on March 7, 2019, each with a par value of RMB 100, with a total amount of RMB 573 million, with the approval in the Reply of China Securities Regulatory Commission on the Approval of Public Offering of Convertible Corporate Bonds by Shenzhen Topband Co., Ltd. (ZJXK [2018] No. 1842). Through priority placement to original shareholders, offering of the balance after priority placement to original shareholders (including the part for which the original shareholders gave up priority placement) to public investors online through the trading system of Shenzhen Stock Exchange, and stand-by underwriting of the part with the subscription amount less than RMB 573 million by lead underwriters. Capitals with a total amount of RMB 573,000,000.00 were raised, and the net capitals raised were RMB 565,436,509.42 after deduction of all the issuance costs amounting to RMB 7,563,490.58. The capitals arrived on March 13, 2019. Ruihua Certified Public Accountants (Special General Partnership) verified the arrival and issued the Capital Verification Report (RHYZ [2019] No. 48270001). (2) Non-public offering of shares to raise capitals in 2021 Shenzhen Topband Co., Ltd. issued 92,105,263 RMB common stocks to specific targets in private at the price of RMB 11.40 per stock, with a par value of RMB 1 per stock, with the approval in the Reply of China Securities Regulatory Commission on the Approval of Non-public Offering of Shares by Shenzhen Topband Co., Ltd. (ZJXK [2020] No. 1865). The total amount of funds raised was RMB 1,049,999,998.20, and the net funds actually available for use were RMB 1,036,847,068.71 after deduction of all the issuance costs amounting to RMB 13,152,929.49 (tax-exclusive). The funds were transferred to the Company's special account for raising funds on May 10, 2021. Baker Tilly China Certified Public Accountants (Special General Partnership) verified the arrival and issued the Capital Verification Report (TZYZ [2021] No. 29460) for the capitals. 2. Used amount and balance of raised funds in the first half of 2024 (1) Use of capitals raised by public issuing of convertible bonds in 2019 As of June 30, 2024, the cumulative input amount of the raised funds was RMB 565.4365 million,including RMB 456.7858 million of raised funds directly input, RMB 26.2348 million repayment for input before the raised funds were fully funded, and RMB 82.4159 million permanently supplemented as working capital from the balance raised fund after settlement of the fund raising projects. (2) Non-public offering of shares to raise capitals in 2022 As of June 30, 2024, the cumulative input amount of the raised funds was RMB 969.1187 million, including RMB 748.1943 million of raised funds directly input, RMB 45.3987 million repayment for input before the raised funds were fully funded, and RMB 175.5257 million of raised fund investment projects paid with banker's acceptance and fund raising projects input with equal amount of raised funds. As of June 30, 2024, RMB 63 million of idle raised funds was used for temporary supplementation of working capital; as of June 30, 2024, the balance amount in the raised fund account was RMB 6.1031 million (including interest income). | |||||||||||
(2) Situation of projects committed when raising capitals
? Applicable □ Not applicable
Unit: RMB ten thousand
| Committed investment projects and investment direction of over raised capitals | Whether the project has been changed (including some changes) | Total committed investment of raised capitals | Total investment after adjustment (1) | Amount invested during the reporting period | Accumulated investment by the end of the period (2) | Investment progress by the end of the period (3)=(2)/(1) | The date when the project is ready for use | Benefits achieved during the reporting period | Whether the expected benefits are achieved | Where there is any significant change in the feasibility of the project |
| Committed investment projects | ||||||||||
| Construction project of Topband East China Operation Center | No | 56,543.65 | 48,302.06 | 500.39 | 48,302.06 | 100.00% | Already put into operation | -1,307.13 | No | No |
| Topband Huizhou No. 2 Industrial Park Project | Yes | 73,684.71 | 4,539.87 | 0 | 4,539.87 | 100.00% | Not applicable | Not applicable | Not applicable | No |
| Topband Nantong Industrial Park Phase - I Stage - 1 Project (Lithium Battery) | Yes | 61,000 | 9,577.86 | 54,227.17 | 88.90% | Partially put into operation | Not applicable | Not applicable | No | |
| Replenish the Company's working capital | No | 30,000 | 46,386.42 | 8,241.59 | 46,386.42 | 100.00% | Not applicable | Not applicable | Not applicable | No |
| Subtotal of committed investment projects | -- | 160,228.36 | 160,228.36 | 18,319.84 | 153,455.52 | -- | -- | -1,307.13 | -- | -- |
| Investment direction of over raised capitals | ||||||||||
| None | ||||||||||
| Total | -- | 160,228.36 | 160,228.36 | 18,319.84 | 153,455.52 | -- | -- | -1,307.13 | -- | -- |
| Explanation of the situation and reasons of failing to reach the planned progress or expected income (by specific project) (including the reason for selecting "NA" for "whether the expected income has been achieved") | Topband East China Operation Center: The project has been accepted and put into production gradually. At present, the production capacity is on the way up, and due to the adjustment of production capacity distribution, some production capacities have been moved to the overseas bases in Vietnam and Mexico. | |||||||||
| Explanation of major changes in project feasibility | No | |||||||||
| Amount, use and progress of over raised capitals | Not applicable | |||||||||
| Change of implementation location of investment projects with raised capitals | Applicable | |||||||||
| Changes occurred in previous years | ||||||||||
| 1. On January 8, 2022, the Proposal on Changing the Implementation Method, Implementation Subject and Implementation Location of Some Raised Funds Investment Projects was deliberated and passed in the 18th meeting of the 7th Board of Directors of the Company, approving the Company to change the implementation subject, implementation location and implementation method of the lithium-ion battery business in the planned raised funds investment project. Specifically, the implementation place was changed from Huizhou, Guangdong Province to Nantong, Jiangsu Province. 2. On August 18, 2022, the Company held the 27th (Extraordinary) Meeting of the 7th Board of Directors, deliberated and passed the Proposal on Changing Implementation Mode and Location Again in Some Capital-raising Projects, and agreed that the implementation mode and location of "Topband Nantong Industrial Park Phase - I Stage - 1 Project (Lithium Battery)", where the location was changed from "Area A, Nantong Free Trade Zone, Jiangsu" to "Nantong Economic & Technological Development Area, Jiangsu". | ||||||||||
| Adjustment of implementation mode | Applicable | |||||||||
| Changes occurred in previous years | ||||||||||
| of investment projects with raised capitals | 1. On January 8, 2022, the Proposal on Changing the Implementation Method, Implementation Subject and Implementation Location of Some Raised Funds Investment Projects was deliberated and passed in the 18th meeting of the 7th Board of Directors of the Company, approving the Company to change the implementation subject and implementation method of the lithium-ion battery business in the planned raised funds investment project. Specifically, the implementation mode was changed from the land acquisition for building construction to the direct purchasing of building with infrastructure constructed. 2. On August 18, 2022, the Company held the 27th (Extraordinary) Meeting of the 7th Board of Directors, deliberated and passed the Proposal on Changing Implementation Mode and Location Again in Some Capital-raising Projects, and agreed that the implementation mode and location of "Topband Nantong Industrial Park Phase - I Stage - 1 Project (Lithium Battery)", where the mode was changed from "the direct purchasing of plant with infrastructure constructed" to "the land acquisition for plant construction". 3. On September 7, 2023, the Proposal on Changing the Purpose of Some Raised Funds to Permanent Supplementary Working Capital was deliberated and passed in the 37th meeting of the 7th Board of Directors and the 30th meeting of the 7th Board of Supervisors of the Company, approving the Company to change the purpose of the balance of the raised funds from the non-publicly offered shares for the Topband Huizhou No. 2 Industrial Park Project (Motor Project) in 2021 to permanent supplementary working capital, and the balance amount of RMB 81.4483 million (excluding interest incomes) shall permanently supplement the working capital for daily operation activities of the Company. 4. According to the Proposal on Closing and Permanent Supplementation of Working Capital with the Balance of the Raised Funds of the Topband East China Operation Center Project deliberated and passed in the 9th meeting of the 8th Board of Director, the 6th meeting of the 8th Board of Supervisors and the 2023 Annual General Meeting of Shareholders, the purpose of the balance of the raised funds for the "Topband East China Operation Center Project" through public offering of convertible bonds in 2019 shall be changed to permanent supplementary working capital, and after settlement of the fund raising projects, the balance amount RMB 90.7948 million (including interest incomes and financing incomes, subject to the balance of interests settled by the bank on the date of transfer out) of the fund raising projects after settlement shall permanently supplement the working capital for daily operation activities of the Company. All the above changes have been deliberated and passed in the General Meeting of Shareholders. |
| Upfront investment and replacement of investment projects with raised capitals | Applicable |
| 1. The Company invested RMB 26.2348 million in advance in the operation center project of Topband East China with self-raised capitals. Ruihua Certified Public Accountants (special general partnership) conducts a special audit on the above matters, and issues the Authentication Report on the Report of Shenzhen Topband Co., Ltd. on the Investment Projects with Self-raised Capitals in Advance (RHHZ [2019] No. 48250027). On July 25, 2019, the 25th Meeting of the 5th Board of Directors of the Company deliberated and passed the Proposal on Using Raised Capitals to Replace Self-raised Capitals Invested in Advance. As of August 1, 2019, the Company has completed the displacement of the self-raised funds input earlier. 2. The Company invested RMB 45.3987 million in Topband Huizhou No. 2 Industrial Park Project with self-raised funds in advance. Baker Tilly China Certified Public Accountants (Special General Partnership) conducted a special audit on the matter above, and issued the Authentication Report of Pre-investment of Shenzhen Topband Co., Ltd. in the Investment Project of Funds Raised with Self-raised Funds (TZYZ [2021] No. 31911). The 10th Meeting of the 7th Board of Directors was held to review and approve the Proposal on Replacement of Pre-invested Self-raised Funds with Funds Raised on June 8, 2021. As of June 10, 2021, the Company has completed the displacement of the self-raised funds input earlier. The Board of Supervisors, Independent Directors and Sponsor Institutions of the Company all expressed their clear consent on the matter. | |
| Temporary replenishment of working capital with idle capitals raised | Applicable |
| On December 1, 2023, the Proposal on Using Some Idle Raised Funds to Temporarily Supplement Working Capital was deliberated and passed in the 30th meeting of the 7th Board of Directors, approving the Company to use no more than RMB 220 million idle raised funds to temporarily supplement the working capital for a period no more than 12 months. As of June 30, 2024, RMB 63 million has been used to temporarily supplement the working capital. Both the Board of Supervisors of the Company and the sponsors have expressed clear agreement on the matter. | |
| Amount and reasons of the balance of raised capitals in project implementation | Applicable |
| 1. The 2019 Convertible Bonds Public Offering Fund Raising Project has been accepted, and the balance amount of the raised funds is RMB 82.416 million. 2. Reason for the balance of the raised funds: During the implementation of the relevant fund raising investment project, the Company strictly followed the relevant regulations on the use of the raised funds, and on the premise of ensuring the project quality and reasonably controlling risks, prudently used the raised funds and strengthened the control, supervision and management of the costs in all aspects to reasonably reduce the project costs. In addition, due to the limitation period of fund payments and other reasons, the Company contributed part of its own funds in the construction of the fund raising investment project. Therefore, there is a balance for the raised funds. 3. The Proposal on Closing and Permanent Supplementation of Working Capital with the Balance of the Raised Funds of the Topband East China Operation Center Project was deliberated and passed in the 9th meeting of the 8th Board of Directors on March 25, 2024 and the 2023 Annual General Meeting of Shareholders on April 17, 2024, approving the Company to settle the fund raising investment project "Topband East China Operation Center Project" and to permanently supplement the working capital of the Company with the balance of the raised funds. |
| Purpose and whereabouts of unused raised capitals | 1. On December 1, 2023, the Proposal on Using Some Idle Raised Funds to Temporarily Supplement Working Capital was deliberated and passed in the 4th (Extraordinary) Meeting of the 8th Board of Directors, approving the Company to use no more than RMB 220 million idle raised funds to temporarily supplement the working capital for a period no more than 12 months. As of June 30, 2024, RMB 63 million has been used to temporarily supplement the working capital. Both the Board of Supervisors of the Company and the sponsors have expressed clear agreement on the matter.2. Other unused raised funds shall be deposited in the special raised fund account of the Company. |
| Problems or other situations in the usage and disclosure of raised capitals | None |
(3) Change of projects with raised capitals
? Applicable □ Not applicable
Unit: RMB ten thousand
| Project after change | Corresponding original committed project | Total amount of raised funds to be input by the project after change (1) | Actual input amount during the reporting period | Actual cumulative input amount as of end of the period (2) | Investment progress as of end of the period (3)=(2)/(1) | The date when the project is ready for use | Benefits achieved during the reporting period | Whether the expected benefits are achieved | Whether the feasibility of the project after change is subject to a major change |
| Topband Nantong Industrial Park Phase - I Stage - 1 Project (Lithium Battery) | Topband Huizhou No. 2 Industrial Park Project (Lithium-ion Battery Project) | 61,000 | 9,577.86 | 54,227.17 | 88.90% | Partially put into operation | Not applicable | Not applicable | No |
| Replenish the Company's working capital | Topband Huizhou No. 2 Industrial Park Project (Motor Project) | 38,144.83 | 38,144.83 | 100.00% | Not applicable | Not applicable | Not applicable | No | |
| Replenish the Company's working capital | Topband East China Operation Center | 8,241.6 | 8,241.6 | 8,241.6 | 100.00% | Not applicable | Not applicable | Not applicable | No |
| Total | -- | 107,386.43 | 17,819.46 | 100,613.6 | -- | -- | Not applicable | -- | -- |
| Reason for change, decision-making procedure and information disclosure (by specific projects) | 1. In January 2022, due to the fast development of the lithium-ion battery business of the Company in recent years and the strong demands of the downstream market, the Company formerly planned to procure lands and build a plant building to promote the lithium-ion battery project, with a construction period of 2 years, while the Nantong Lithium-ion Battery Project of the Company purchased an existing plant building with infrastructure construction completed, which can greatly shorten the construction period of the project. In order to promote the expansion of the lithium-ion battery business as soon as possible to fully seize the market opportunities of the lithium-ion battery industry and new energy industry, improve the market competitiveness and business performance of the Company and use the raise funds more efficiently, after comprehensive evaluation, the Company planned to change the implementation subject, implementation location and implementation method of the original fund raising investment project for the lithium-ion battery business. The Proposal on Changing the Implementation Method, Implementation Subject and Implementation Location of Some Raised Funds Investment Projects was deliberated and passed in the 18th (Extraordinary) Meeting of the 7th Board of Directors of the Company, the 15th (Extraordinary) Meeting of the 7th Board of Supervisors and the 1st Extraordinary General Meeting of Shareholders in 2022, approving the Company to change the implementation subject, | ||||||||
| implementation method and implementation location of the lithium-ion battery business in the non-public offering fund raising investment project in 2021. 2. In August 2022, because the Administrative Committee of Nantong Economic & Technological Development Area changed the overall planning for the implementation location of the "Topband Nantong Industrial Park Phase - I Stage - 1 Project", and in consideration of the utilization efficiency of the raised funds, the progress of the fund raising investment project and business development requirements of the Company, the Company decided to give up purchasing the use right of the relevant asset after consulting with the Administrative Committee, change the implementation method and implementation location of the fund raising investment project, and procure the land use right of approximately 250 mu in Nantong Economic & Technological Development Area with raised funds and its own funds for its construction of the "Topband Nantong Industrial Park Phase - I Stage - 1 Project (Lithium Battery)". The Proposal on Re-changing the Implementation Method, Implementation Subject and Implementation Location of Some Raised Funds Investment Projects was deliberated and passed in the 27th (Extraordinary) Meeting of the 7th Board of Directors of the Company, the 22nd (Extraordinary) Meeting of the 7th Board of Supervisors and the 2nd Extraordinary General Meeting of Shareholders in 2022, approving the Company to change the implementation method and implementation location of the lithium-ion battery business in the non-public offering fund raising investment project in 2021. 3. In September 2023, based on the overall planning and construction period of the Topband Huizhou No. 2 Industrial Park and the market demand of the motor project, the implementation of the motor project was continued in the "Topband Huizhou No. 2 Industrial Park". The initial estimated capital investment of the project can hardly cover the overall project requirement of the Topband Huizhou No. 2 Industrial Park, or to meet the requirements of the construction period of the motor project. At the same time, extending the construction period will make it more difficult to meet the future market demand of the motor project. In order to cope with the complex and changing market environment, the Company had supplemented its own funds to its mature industrial parks in Shenzhen and Vietnam to realize an annual production capacity of 3.5 million sets of high-efficiency motors, so as to quickly seize market opportunities. Later on, the Company will continue to monitor the market environment, dynamically adjust the deployment, and continue to input its own funds into project construction, to ensure the market competitiveness of the Company in the motor sector. Therefore, the Company changed the purpose of the funds raised for the "Topband Huizhou No. 2 Industrial Park (Motor Project)", and used the raised funds and corresponding interest incomes to permanently supplement the working capital. On September 7, 2023, the Proposal on Changing the Purpose of Some Raised Funds to Permanent Supplementary Working Capital was deliberated and passed in the 37th meeting of the 7th Board of Directors, the 30th meeting of the 7th Board of Supervisors and the 2nd Extraordinary General Meeting of Shareholders in 2023 of the Company. 4. In April 2024, in order to improve the utilization efficiency of the raised funds, save finance expenses and improve the operation performance of the Company, the Company carried out the settlement of the "Topband East China Operation Center Project" for fund raising via public offering of convertible bonds in 2019, and changed the purpose of the balance of the raised funds to permanent supplementary working capital. The Proposal on Closing and Permanent Supplementation of Working Capital with the Balance of the Raised Funds of the Topband East China Operation Center Project was deliberated and passed in the 9th meeting of the 8th Board of Directors on March 25, 2024, the 6th meeting of the 8th Board of Directors and the 2023 Annual General Meeting of Shareholders on April 17, 2024. 5. The Company has disclosed the above contents in strict accordance with the information disclosure requirements. | |
| Failure to fulfill the planned schedule or estimated revenue, and its cause (by projects) | Not applicable |
| Major change to the feasibility of the project after the change | Not applicable |
VII. Sale of major assets and equity
1. Sale of major assets
□ Applicable ? Not applicable
The Company did not sell any major assets during the reporting period.
2. Sale of major equity
□ Applicable ? Not applicable
VIII. Analysis of major holding and equity participating companies
? Applicable □ Not applicableSituation of major subsidiaries and equity participating companies with an impact of 10% or more on net profit ofthe Company
Unit: RMB
| Company name | Company type | Main business | Registered capital | Total assets | Net assets | Operating income | Operating profit | Net profit |
| Huizhou Topband Electrical Technology Co., Ltd. | Subsidiary | R&D, production, sales, import and export of electronic components | 300 million | 4,464,206,640.14 | 2,139,419,993.88 | 3,479,150,735.40 | 211,356,827.04 | 184,900,359.21 |
| TOPBAND SMART DONG NAI (VIETNAM) COMPANY LIMITED | Sub-subsidiaries | R&D, production, sales, import and export of electronic components | USD 33.5 million | 889,524,666.33 | 606,939,339.88 | 658,556,060.10 | 180,109,069.09 | 163,820,976.26 |
Situation of acquisition and disposal of subsidiaries during the reporting period
□ Applicable ? Not applicable
Explanation of major shareholding companiesNone
IX. Situation of structured entity controlled by the Company
□ Applicable ? Not applicable
X. Risks faced by the Company and countermeasures
1. External risks such as the macro environment
Trade frictions and geopolitical tensions will also produce adverse influences on business confidence andinvestment. The Company may continue to face an uncertain external environment, so we will further strengthenrisk identification and control for various businesses and regions and adjust strategies timely to minimize externalinfluences.
2. Risks of technology upgrading
The intelligent controller industry technology, as the main business of the Company, is developing rapidly withfast product upgrading and short life cycle. Although the Company continues to invest in R&D and owns a numberof invention and utility patents, there is still a risk that the technology will not be updated in time to meet marketdemand, or lag behind competitors in launching new products, resulting in a decline in the market share andprofitability of the Company.
3. Exchange rate risk
The export revenue of the Company accounted for nearly 60% of the total revenue. In order to cope with thefluctuation risk of China Yuan, the Company will mitigate and hedge foreign exchange risks through hedging againstChina Yuan, international procurement, and repricing of new products.
4. Other risks
There are many uncertainties in the current macro environment at home and abroad, and there are some factorsthat are unfavorable to the operation of the Company. For example, the China-United States trade war, shortage ofraw materials, rising price, insufficient labor and customer credit risk will increase the uncertainty of the Company'soperation.XI. Implementation of "Double Improvement of Return on Quality" Action PlanWhether the Company disclosed the "Double Improvement of Return on Quality" Action Plan.
□ Yes ? No
Section IV Corporate GovernanceI. Information on the annual and extraordinary general meetings of shareholders held duringthe reporting period
1. Information on the General Meeting of Shareholders during the reporting period
| Meeting session | Meeting type | Investor participation ratio | Meeting date | Date of disclosure | Meeting resolution |
| 2023 Annual General Meeting of Shareholders | Annual General Meeting of Shareholders | 20.48% | 2024/4/17 | 2024/4/18 | 1. Deliberated and passed the Proposal on Annual Report 2023 and Summary 2. Deliberated and passed the Proposal on Final Financial Report 2023 3. Deliberated and passed the Proposal on Profit Distribution Plan 2023 4. Deliberated and passed the Proposal on Work Report of the Board of Directors 2023 5. Deliberated and passed the Proposal on Work Report of the Board of Supervisors 2023 6. Deliberated and passed the Proposal on Remuneration of the Company Directors 2023 7. Deliberated and passed the Proposal on Remuneration of the Company Supervisors 2023 8. Deliberated and passed the Proposal on Application for Comprehensive Credit Line from Banks by the Company and Its Subsidiaries in 2024 9. Deliberated and passed the Proposal on Closing and Permanent Supplementation of Working Capital with the Balance of the Raised Funds of the Topband East China Operation Center Project |
2. The preferred shareholders with restored voting rights request to convene an Extraordinary GeneralMeeting of Shareholders
□ Applicable ? Not applicable
II. Changes in directors, supervisors and senior executives
□ Applicable ? Not applicable
The directors, supervisors and senior management of the Company did not change during the reporting period, asdetailed in the Annual Report 2023.
III. Profit distribution and conversion of capital accumulation fund to share capital duringthe reporting period
□ Applicable ? Not applicable
The Company plans not to pay cash dividend, to issue bonus shares, or to increase the share capital by capital reservefor the first half.
IV. Implementation of the Company's equity incentive plan, employee stock ownership planor other employee incentive measures? Applicable □ Not applicable
1. Equity incentive
Implementation of the restricted stock incentive plan in 2021:
(1) On September 20, 2021, the 13th (Extraordinary) Meeting of the 7th Board of Directors deliberated andpassed the Proposal on the Company's Restricted Stock Incentive Plan in 2021, and agreed to grant up to 34 millionrestricted stocks to the incentive object. The shares of this plan come from the shares repurchased by the Company'sspecial repurchase account and the ordinary A shares issued by the Company to the incentive object. Among them,14,838,920 shares in the Company's special repurchase securities account will be used as a source of some of theshares in the implementation of this plan, while the rest will be issued to the incentive object. The restricted periodof the restricted stocks granted this time is 12 months, 24 months and 36 months from the date of completion of thegranting and registration of the restricted stocks, and the restricted stocks will be lifted at a ratio of 30%, 30% and40%, respectively.
(2) The Company held the 14th Meeting of the 7th Board of Directors and the 11th Meeting of the 7th Boardof Supervisors on October 13, 2021, which deliberated and passed the Proposal on the Company's Restricted StockIncentive Plan in 2021 (Draft) and Its Abstract, the Proposal on the Appraisal Management Measures for theImplementation of the Restricted Stock Incentive Plan in 2021, and the Proposal on Requesting the General Meetingof Shareholders to Authorize the Board of Directors to Handle Matters Related to the Company's Restricted StockIncentive Plan in 2021 and agreed to grant 34 million restricted stocks to 1,250 incentive objects. The 11th Meetingof the 7th Board of Supervisors of deliberated and passed relevant proposals and verified the list of incentive objectsin this incentive plan. Independent directors expressed independent opinions on this matter, and lawyers issued legal
opinions.
(3) On October 15, 2021, the Company publicly announced the names and positions of the incentive objects inthis incentive plan on the Company's internal OA office system, with a publicity period from October 15, 2021 toOctober 24, 2021. No organization or individual raised any objection to the list of incentive objects during thepublicity period. On October 26, 2021, the Company disclosed the Audit Opinions of the Board of Supervisors onthe List of Incentive Objects in the Restricted Stock Incentive Plan in 2021 and the Explanation of Publicity. TheBoard of Supervisors believed that the proposed incentive objects in this incentive plan did not have the situationthat relevant laws and regulations do not allow them to be the incentive objects, and met the participationqualifications within the scope of the incentive objects in this incentive plan.
(4) On November 1, 2021, the Company held the 2nd Extraordinary General Meeting of Shareholders, whichdeliberated and passed the Proposal on the Company's Restricted Stock Incentive Plan in 2021 (Draft) and ItsAbstract, the Proposal on the Appraisal Management Measures for the Implementation of the Restricted StockIncentive Plan in 2021, and the Proposal on Requesting the General Meeting of Shareholders to Authorize the Boardof Directors to Handle Matters Related to the Company's Restricted Stock Incentive Plan in 2021 and other relevantproposals related to the Incentive Plan, and authorized the Board of Directors to determine the grant date under theIncentive Plan, grant restricted stocks to incentive objects when they met the conditions and handle all mattersrequired for the grant of restricted stocks.
(5) On November 2, 2021, the Company held the 16th (Extraordinary) Meeting of the 7th Board of Directorsand the 13th (Extraordinary) Meeting of the 7th Board of Supervisors, which deliberated and passed the Proposalon Adjusting the Number of Stock Options Granted under the Restricted Stock Incentive Plan in 2021 and List ofIncentive Objects and the Proposal on Granting Restricted Stocks to Incentive Objects. In view of the dimission ofthe incentive object Ou Li specified in the Incentive Plan and the fact that Wang Cheng, Shen Zhiwen and TianConghui et al. voluntarily gave up the subscription of restricted stocks to be granted by the Company for personalreasons, the Board of Directors of the Company decided to cancel the restricted stocks to be granted to them. Afterthe cancellation, the number of restricted stocks to be granted under the Incentive Plan was reduced from 34 millionto 33.951 million, and the number of incentive objects decreased from 1,250 to 1,246. November 2, 2021 wasdetermined as the grant date, and 33.951 million restricted stocks were granted to 1,246 eligible incentive objects.The Board of Supervisors of the Company reviewed the list of incentive objects, and independent directorsexpressed their independent opinions and lawyers issued legal opinions.
(6) On December 7, 2021, the Company held the 17th (Extraordinary) Meeting of the 7th Board of Directorsand the 14th (Extraordinary) Meeting of the 7th Board of Supervisors, which deliberated and passed the Proposalon Adjusting the Number of Stock Options Granted under the Restricted Stock Incentive Plan in 2021 and List ofIncentive Objects. In view of the fact that 22 incentive objects such as Li Xiang, Yu Dingguo and Lu Yuanshanspecified in the Incentive Plan voluntarily gave up their subscription of all the restricted stocks granted to them forpersonal reasons and 10 incentive targets such as Liao Xinmeng, Wang Cao and Liu Xiaoshi voluntarily gave uptheir subscription of some of the restricted stocks granted to them for personal reasons in the process of capitalpayment before share registration after the Board of Directors of the Company confirmed November 2, 2021 as thegrant date under the Restricted Stock Incentive Plan in 2021, the Board of Directors of the Company adjusted theobjects and the number of shares granted under the Restricted Stock Incentive Plan in 2021 according to theauthorization of the 2nd Extraordinary General Meeting of Shareholders of the Company in 2021. After adjustment,the number of incentive objects under the Restricted Stock Incentive Plan in 2021 decreased from 1,246 to 1,224,and the number of restricted stocks granted decreased from 33.951 million to 33.54432 million. The Board ofSupervisors of the Company reviewed the list of incentive objects, and independent directors expressed theirindependent opinions and lawyers issued legal opinions.
(7) On December 17, 2021, as reviewed and verified by Shenzhen Stock Exchange and Shenzhen Branch ofChina Securities Depository and Clearing Corporation Limited (CSDC), the Company completed the granting of187,054 million restricted shares (new shares) and the granting and registration of 14,838,920 restricted shares(repurchased shares) involved in the 2021 Restricted Share Incentive Plan. The above shares were publicly listedon December 17, 2021.
(8) On March 30, 2022, the 23rd (Extraordinary) Meeting of the 7th Board of Directors deliberated and passedthe Proposal on the Proposal on Repurchase and Cancellation of Some Restricted Stocks from Restricted StockIncentive Plan in 2021, and agreed to repurchase and cancel 201,000 restricted stocks that have been granted butnot yet unlocked of 10 incentive objects, including Wu Song and Luo Qingshan in the restricted stock incentive planin 2021, who resigned from the Company due to personal reasons. The above matters had been deliberated andpassed by the 2021 Annual General Meeting of Shareholders.
(9) On July 25, 2022, the 26th Meeting of the 7th Board of Directors and the 22nd Meeting of the 7th Boardof Supervisors deliberated and passed the Proposal on Adjusting the Repurchase Price of Restricted Stock IncentivePlan in 2021. The 2021 annual equity distribution plan was implemented, and the repurchase price was adjusted
from RMB 7.23/share to RMB 7.18/share accordingly.
(10) On August 18, 2022, the 27th (Extraordinary) Meeting of the 7th Board of Directors and the 22nd(Extraordinary) Meeting of the 7th Board of Supervisors deliberated and passed the Proposal on the Proposal onRepurchase and Cancellation of Some Restricted Stocks from Restricted Stock Incentive Plan in 2021, and agreedto repurchase and cancel 1.291 million restricted stocks that have been granted but not yet unlocked of 66 incentiveobjects, including Wei Yin and Li Xinwei in the restricted stock incentive plan in 2021, who resigned from theCompany due to personal reasons. The above matters had been deliberated and passed by the 2nd ExtraordinaryGeneral Meeting of Shareholders in 2022.
(11) On November 23, 2022, the 28th (Extraordinary) Meeting of the 7th Board of Directors and the 23rd(Extraordinary) Meeting of the 7th Board of Supervisors deliberated and passed the Proposal on AdjustingCorporate-level Performance Evaluation Indicators of Restricted Stock Incentive Plan in 2021, and agreed to adjustthe corporate-level performance evaluation indicators of restricted stock incentive plan in 2021. Independentdirectors expressed independent opinions, the law firm issued legal opinions, and affiliated directors recusedthemselves from voting. The above matters had been deliberated and passed on the 3rd Extraordinary GeneralMeeting of Shareholders in 2022.
(12) On December 27, 2022, given that 76 incentive objects, including Wu Song, Luo Qingshan, Wei Yin andLi Xinwei in the restricted stock incentive plan in 2021, resigned from the Company due to personal reasons and nolonger met the conditions of becoming the incentive object, their restricted stocks that have been granted but notunlocked could not be unlocked and would be canceled after being repurchased by the Company. The aboverepurchase and cancellation matters were completed on December 27, 2022. After the repurchase and cancellation,the number of incentive objects in the restricted stock incentive plan in 2021 reduced from 1,224 to 1,148, and thegeneral capital reduced from 1,271,027,372 shares to 1,269,535,372 shares.
(13) On March 29, 2023, the 32nd Meeting of the 7th Board of Directors and the 27th Meeting of the 7th Boardof Supervisors, deliberated and passed the Proposal on Fulfillment of Restricted Share Release Conditions for 2021Restricted Stock Incentive Plan after the First Restricted Stock Trade Period and Proposal on Repurchase andCancellation of Some Restricted Stocks from Restricted Stock Incentive Plan in 2021. 9,351,936 shares granted to1,109 people under the 2021 Incentive Plan can be released after the first restricted stock trade period. Meanwhile,39 people, including Li Chaoyi, Wang Caihui and Ding Bo, resigned and left the Company due to personal reasons,and four of the grantees, including Tang Yingjie and Shi Wenhui, of the incentive plan achieved a "Good" or "OK"
level in the performance appraisal, resulted in the release of 80% of the restricted stock. It was approved torepurchase and deregister a total of 870,660 restricted shares formerly owned by the above 43 people that shall notbe released. An independent director of the Company given his independent opinion for the approval, and the lawfirm issued the corresponding legal opinion.
(14) On April 12, 2023, part of the release conditions of the first restricted share trade period stipulated in the2021 Restricted Share Incentive Plan of the Company was fulfilled, and the Company held the 32nd meeting of the7th Board of Directors on March 29, 2023, in which, the Proposal on Fulfillment of Restricted Share ReleaseConditions after the First Restricted Share Trade Period in the 2021 Restricted Share Incentive Plan was deliberatedand passed. Upon fulfillment of the release conditions of the first restricted share trade period set in the 2021Incentive Plan of the Company, 9,351,936 restricted shares were released, accounting for 0.7366% of the total equityof the Company, and covering 1,109 persons under the Incentive Plan. There is no difference between relevantcontents of the 2021 Incentive Plan implemented and the Incentive Plan disclosed.
(15) On April 25, 2023, the Proposal on Adjusting the Repurchase Price in the 2021 Restricted Share OptionIncentive Plan was deliberated and passed in the 33rd meeting of the 7th Board of Directors and the 28th meetingof the 7th Board of Supervisors. Due to the equity distribution of the Company for the year 2022, the repurchaseprice of Restricted Stock was adjusted from RMB 7.18 to RMB 7.12 in accordance with (I) Adjustment method ofrepurchase price in Chapter XVI Principles for Repurchase and Deregistration of Restricted Stock in the 2021Restricted Stock Incentive Plan (Draft Amendment). The Board of Supervisors reviewed the adjustment procedure,an independent director of the Company gave his independent opinion for the approval, and the law firm issued thecorresponding legal opinion.
(16) On September 7, 2023, the Proposal on the Repurchase and Deregistration of Some Restricted Shares inthe 2021 Restricted Share Incentive Plan was deliberated and passed in the 37th meeting of the 7th Board ofDirectors and the 30th meeting of the 7th Board of Supervisors. As 65 incentive objects covered by the 2021Restricted Share Incentive Plan, including Wang Lin, Sun Liangquan, etc., had quit for personal reasons and left theCompany, they no longer meet the incentive object conditions given in the Incentive Plan, and it is approved torepurchase and deregister the 1,062,600 restricted shares granted to those 65 incentive objects but not yet released.The above matter has been deliberated and passed in the 2nd Extraordinary General Meeting of Shareholders in2023.
(17) On November 16, 2023, as reviewed and verified by Shenzhen Branch of CSDC, the repurchase and
deregistration of the 1,933,260 restricted shares granted to 104 former employees who had quit, including Li Chaoyi,Wang Caizhi, Ding Bo, etc., and to 4 employees whose restricted shares were not released due to their performanceappraisal in the first period, including Tang Yingjie, Shi Wenhui (quit), etc. were completed. The number of incentiveobjects covered by the 2021 Restricted Share Incentive Plan was reduced from 1,148 to 1,044, and the total equityof the Company was reduced from 1,269,535,372 shares to 1,267,602,112 shares.
(18) On December 1, 2023, the Proposal on Terminating the Implementation of the 2021 Restricted ShareIncentive Plan and on the Repurchase and Deregistration of Restricted Shares was deliberated and passed in the 4th(Extraordinary) Meeting of the 8th Board of Directors and the 3rd (Extraordinary) Meeting of the 8th Board ofSupervisors, approving to repurchase and deregister 270,900 restricted shares that had been granted to 20 incentiveobjects who had quit for personal reasons, including Shen Haibin, Wang Sifu, etc., but not yet exercised, at the priceof RMB 7.12/share; approving to repurchase and deregister 20,496,224 restricted shares that had been granted to1,024 in-service incentive objects but not yet released for trade, at the price of RMB 7.35/share (to be rounded off,and the amount to be paid shall be subject to the actual amount calculated). The above matters had been deliberatedand passed on the 3rd Extraordinary General Meeting of Shareholders in 2023.
(19) On April 24, 2024, according to relevant provisions of the Measures for the Administration of EquityIncentive Plans of Listed Companies and the Incentive Plan (Revised Draft), all the restricted shares that had beengranted but not yet released for trade, 20,767,124 shares in total, accounting for 1.64% of the total equity(1,267,602,112 shares) of the Company, shall be repurchased and deregistered. The Company totally paid RMB152,477,057.64 for repurchasing the shares from the incentive objects who had quit. As reviewed and verified byShenzhen Branch of CSDC, the above repurchase and deregistration matters were completed on April 24, 2024.After the repurchase and deregistration, the total equity of the Company was reduced from 1,267,602,112 shares to1,246,834,988 shares.
For details about the 2021 Restricted Share Incentive Plan, refer to the disclosure announcements of theCompany on the Securities Times and http://www.cninfo.com.cn on September 22, 2021, October 14, 2021,November 2, 2021, November 3, 2021, December 9, 2021, December 16, 2021, December 20, 2021, March 31,2022, July 26, 2022, August 19, 2022, September 24, 2022, December 28, 2022, March 31, 2023, April 26, 2023,September 9, 2023, November 16, 2023, December 2, 2023 and April 26, 2024.
2. Implementation of employee stock ownership plan
□ Applicable ? Not applicable
3. Other employee incentives
□ Applicable ? Not applicable
Section V Environmental and Social Responsibility
I. Major environmental issuesWhether the listed companies and their subsidiaries were key pollutant discharging organizations announced by theEnvironmental Protection Department
□ Yes ? No
Administrative punishment for environmental problems during the reporting period
| Name of the Company or its subsidiaries | Reason for punishment | Description of violation | Punishment | Impacts on production and operation of the Company | Rectification measures of the Company |
| Not applicable | Not applicable | Not applicable | Not applicable | Not applicable | Not applicable |
Refer to other environmental information disclosed by key pollutant discharge companiesDuring the production of the Company, there are no heavy pollutions. The Company has always paid attentionto its social public image, considers environmental protection as an important part of its corporation socialresponsibilities, and makes ensure that industrial solid wastes are effectively disposed of in accordance withregulations and the discharge of pollutants meets the national environmental protection standards.The Company has passed the ISO14001:2015 environmental management system certification, alsoimplements the HSPMQC080000 hazardous substances process management system, and has established a seriesof procedure documents in respect of environmental factor identification and evaluation, environmental monitoringand measurement management, environmental communication management, treatment and control ofwastewater/exhaust gas/solid wastes, identification and control of hazardous substances, etc. to specify theenvironmental protection organization and responsibilities under the environmental management system of theCompany. The certification of the system and the establishment of the related supporting systems by the Companyindicate that it has achieved institutionalized and practicable arrangements in environmental protection.Measures and effects taken to reduce carbon emissions during the reporting period
□ Applicable ? Not applicable
Reasons for not disclosing other environmental informationNot applicable
II. Social responsibility
Not applicable.
Section VI Important Matters
I. Completed commitments during the reporting period and uncompleted commitments withinthe time limit by the end of the reporting period by the Company's actual controller,shareholders, related parties, acquirers, the Company and other committed related parties? Applicable □ Not applicable
| Reasons for commitments | Commitment Party | Commitment type | Commitment content | Commitment time | Commitment period | Performance |
| Commitments made during the initial public offering or refinancing | Wu Yongqiang | Commitments to horizontal competition | Mr. Wu Yongqiang, the actual controller of the Company, has promised that during the period of being the controlling shareholder and/or actual controller of the Company, he would not directly or indirectly engage in any business which was the same, similar or substantially competitive with the main business of the Company at present and in the future. | 2007/6/12 | Long standing | Fulfill the commitment strictly |
| Commitments made during the initial public offering or refinancing | All directors and senior executives of the Company | Other commitments | 1. I would not deliver benefits to other organizations or individuals free of charge or under unfair conditions and not damage the interests of the Company in other means. 2. I fully supported and cooperated with the Company in regulating the duty consumption behavior of directors and senior executives. Any duty consumption behaviors would occur within the scope necessary for fulfilling my duty to the Company. I strictly accepted the supervision and management of the Company to avoid extravagance or excessive consumption. 3. I would strictly abide by the relevant laws and regulations, the regulations and rules of the China Securities Regulatory Commission, the stock exchange and other regulatory institutions as well as the requirements of the Company's rules and regulations on the code of conduct of directors and senior executives. Besides, I would not use the Company's assets to engage in investment and consumption activities | 2020/4/29 | On-going | Fulfill the commitment strictly |
| unrelated to the performance of my duties. 4. I would try my best to make the Company implement the compensation demand return measures. 5. I would work hard to link the compensation system formulated by the Board of Directors or the Compensation Committee with the implementation of the Company's compensation return measures. At the same time, I would vote in favor of the compensation system proposal when the Board of Directors and the General Meeting of Shareholders of the Company deliberated (if I have vote/voting right). 6. If the Company would implement the employee equity incentive in the future, I would fully support the Company to link the arrangement of exercise conditions of the employee incentive with the implementation of the Company's compensation return measures. At the same time, I would vote in favor of the employee equity incentive proposal when the Board of Directors and the General Meeting of Shareholders of the Company deliberated (if I have vote/voting right). 7. If I violate the above commitments, I would make an explanation and apologize publicly at the General Meeting of Shareholders and the designated newspapers and magazines designated by the China Securities Regulatory Commission. I voluntarily accept the self-discipline supervision measures taken by the stock exchange and China Association for Public Companies. If my breach of the commitment causes losses to the Company or the shareholders, I shall be liable for compensation in accordance with the law. | ||||||
| Commitments made during the initial public offering or refinancing | Wu Yongqiang | Other commitments | 1. I would not abuse the position of the controlling shareholder/actual controller to interfere with the operation and management activities of the Company beyond my power and would not infringe | 2020/4/29 | On-going | Fulfill the commitment strictly |
| the Company's interests under any circumstances. 2. I would try my best to make the Company implement the compensation demand return measures. 3. I would work hard to link the compensation system formulated by the Board of Directors or the Compensation Committee with the implementation of the Company's compensation return measures. 4. I would work hard to link the exercise conditions (if any) of the corporate equity incentive to be published in the future with the implementation of the Company's compensation return measures. 5. I would support the relevant proposals related to the implementation of the Company's compensation return measures and would vote for them (if I have voting right). 6. After the issuance of this commitment, if there are other requirements in the relevant provisions of the regulatory institution on the compensation return measures and its commitment and the above commitments could not meet the relevant requirements of the regulatory institution, I promise that I would issue a supplementary commitment in accordance with the relevant provisions at that time. 7. If I violate the above commitments, I would make an explanation and apologize publicly at the General Meeting of Shareholders and the designated newspapers and magazines designated by the China Securities Regulatory Commission. I voluntarily accept the self-discipline supervision measures taken by the stock exchange and China Association for Public Companies. If my breach of the commitment causes losses to the Company or the shareholders, I shall be liable for compensation in accordance with the law. | |||
| Whether the commitment was | Yes | ||
| fulfilled on schedule | |
| If the commitment was not fulfilled within the time limit, the specific reasons for the failure and the next work plan shall be explained in detail. | Not applicable |
II. Non-operating capital occupation of listed companies by controlling shareholders and theirrelated parties
□ Applicable ? Not applicable
There was no non-operating capital occupation of listed companies by controlling shareholders and their relatedparties during the reporting period of the Company.III. External guarantee in violation of regulations
□ Applicable ? Not applicable
The Company had no external guarantee in violation of regulations during the reporting period.IV. Appointment and dismissal of accounting firmsWhether the semi-annual financial reports have been audited
□ Yes ? No
The semi-annual reports of the Company have not been audited.
V. Explanation of the "non-standard audit report" of the Accounting Firm during the reportingperiod by the Board of Directors and the Board of Supervisors
□ Applicable ? Not applicable
VI. Explanation of the Board of Directors on the "non-standard audit report" of the previousyear
□ Applicable ? Not applicable
VII. Matters related to bankruptcy reorganization
□ Applicable ? Not applicable
There were no matter related to bankruptcy reorganization during the reporting period.
VIII. LawsuitMajor litigation and arbitration matters
□ Applicable ? Not applicable
The Company had no major litigation and arbitration matters during the reporting period.Other lawsuits
□ Applicable ? Not applicable
IX. Punishment and rectification
□ Applicable ? Not applicable
The Company was not subject to any penalty or rectification during the reporting period.X. Integrity condition of the Company, its controlling shareholders and actual controllers
□ Applicable ? Not applicable
XI. Major related transactions
1. Related transactions connected with the daily operation
□ Applicable ? Not applicable
The Company had no related transactions connected with daily operations during the reporting period.
2. Related transactions arising from acquisition and sale of assets or equity
□ Applicable ? Not applicable
The Company had no related transaction of acquisition or sale of assets or equity during the reporting period.
3. Related transactions of joint foreign investment
□ Applicable ? Not applicable
The Company had no related transaction of joint foreign investment during the reporting period.
4. Related creditor's right and debt transaction
□ Applicable ? Not applicable
The Company had no related creditor's right and debt transaction during the reporting period.
5. Transactions with associated financial companies
□ Applicable ? Not applicable
There was no deposit, loan, credit extension or other financial business between the Company and its relatedfinancial companies or between the related parties.
6. Transactions between financial companies controlled by the Company and related parties
□ Applicable ? Not applicable
There was no deposit, loan, credit or other financial business between financial companies controlled by theCompany and related parties.
7. Other major related transactions
? Applicable ?Not applicable
On January 3, 2024, the Proposal on the Conclusion of a Procurement Framework Agreement with ShenzhenJizhiguang Electronics Co., Ltd. was deliberated and passed in the 5th meeting of the 8th Board of Directors of theCompany; as of the end of the reporting period, the amount or the expected amount of the contracts concluded forthe routine related party transactions of the Company was below the amount deliberated and passed.Relevant inquires on websites where temporary reports on major related party transactions were disclosed
| Title of temporary notice | Disclosure date of temporary notice | Name of website with temporary notice disclosed |
| Notice on Expected Routine Related Party Transactions in 2024 | January 5, 2024 | CNINFO (http://www.cninfo.com.cn) |
XII. Major contracts and their performance
1. Trusteeship, contracting and lease
(1) Trusteeship
□ Applicable ? Not applicable
The Company had no trusteeship during the reporting period.
(2) Contracting
□ Applicable ? Not applicable
The Company had no contracting during the reporting period.
(3) Lease
? Applicable □ Not applicableDisclosure of leaseRefer to VII. 82 in Section X.Item with profits and losses reaching 10% of the total profit of the Company during the reporting period
□ Applicable ? Not applicable
The Company had no lease item with profits and losses reaching 10% of the total profit of the Company during thereporting period.
2. Material guarantee
? Applicable □ Not applicable
Unit: RMB ten thousand
| External guarantee of the Company and its subsidiaries (excluding guarantee for subsidiaries) | ||||||||||
| Name of guarantee object | Date of disclosure of the relevant announcement of guarantee amount limit | Guarantee amount limit | Actual date of occurrence | Actual guarantee amount | Guarantee type | Collateral (if any) | Counter guarantee (if any) | Guarantee period | Whether it was completed | Whether the guarantee objects were related parties |
| Not applicable | Not applicable | Not applicable | Not applicable | Not applicable | Not applicable | Not applicable | Not applicable | Not applicable | Not applicable | Not applicable | ||
| Guarantee of the Company to its subsidiaries | ||||||||||||
| Name of guarantee object | Date of disclosure of the relevant announcement of guarantee amount limit | Guarantee amount limit | Actual date of occurrence | Actual guarantee amount | Guarantee type | Collateral (if any) | Counter guarantee (if any) | Guarantee period | Whether it was completed | Whether the guarantee objects were related parties | ||
| Not applicable | Not applicable | Not applicable | Not applicable | Not applicable | Not applicable | Not applicable | Not applicable | Not applicable | Not applicable | Not applicable | ||
| Guarantee of the subsidiary to its subsidiaries | ||||||||||||
| Name of guarantee object | Date of disclosure of the relevant announcement of guarantee amount limit | Guarantee amount limit | Actual date of occurrence | Actual guarantee amount | Guarantee type | Collateral (if any) | Counter guarantee (if any) | Guarantee period | Whether it was completed | Whether the guarantee objects were related parties | ||
| Huizhou YAKO Automation | 2023/1/11 | 20,000 | 2023/1/16 | 3,000 | Joint liability guaranty | 3 years from maturity date of debts of guaranteed parties | No | No | ||||
| Huizhou YAKO Automation | 2023/1/11 | 2023/4/24 | 1,200 | Joint liability guaranty | 3 years from maturity date of debts of guaranteed parties | No | No | |||||
| Huizhou YAKO Automation | 2023/1/11 | 2023/6/29 | 2,000 | Joint liability guaranty | 3 years from maturity date of debts of guaranteed parties | No | No | |||||
| Huizhou YAKO Automation | 2023/1/11 | 2023/7/31 | 1,200 | Joint liability guaranty | 3 years from maturity date of debts of guaranteed parties | No | No | |||||
| Huizhou YAKO Automation | 2023/1/11 | 2023/8/29 | 1,779.74 | Joint liability guaranty | 3 years from maturity date of debts of guaranteed parties | No | No | |||||
| Huizhou YAKO Automation | 2023/1/11 | 2024/1/8 | 1,500 | Joint liability guaranty | 3 years from maturity date of debts of guaranteed parties | No | No | ||||
| Huizhou YAKO Automation | 2023/1/11 | 2024/1/31 | 1,685.98 | Joint liability guaranty | 3 years from maturity date of debts of guaranteed parties | No | No | ||||
| Huizhou YAKO Automation | 2023/1/11 | 2024/3/28 | 1,500 | Joint liability guaranty | 3 years from maturity date of debts of guaranteed parties | No | No | ||||
| Huizhou YAKO Automation | 2023/1/11 | 2024/5/8 | 1,250.82 | Joint liability guaranty | 3 years from maturity date of debts of guaranteed parties | No | No | ||||
| Huizhou YAKO Automation | 2023/1/11 | 2024/5/28 | 450.21 | Joint liability guaranty | 3 years from maturity date of debts of guaranteed parties | No | No | ||||
| Total amount of guarantee for subsidiaries approved during the reporting period (C1) | Total actual amount of guarantee for subsidiaries during the reporting period (C2) | 6,387.01 | |||||||||
| Total amount of approved guarantee for subsidiaries at the end of the reporting period (C3) | 20,000 | Total actual balance of guarantee for subsidiaries at the end of the reporting period (C4) | 15,566.75 | ||||||||
| Total amount of the corporate guarantee (i.e. the sum of the first three items) | |||||||||||
| Total amount of guarantees approved during the reporting period (A1+B1+C1) | Total incurred amount of actual guarantees provided during the reporting period (A2+B2+C2) | 6,387.01 | |||||||||
| Total amount of guarantee approved at the end of the reporting period (A3+B3+C3) | 20,000 | Total actual balance of guarantee at the end of the reporting period (A4+B4+C4) | 15,566.75 | ||||||||
| The proportion of the total actual amount of guarantee (A4+B4+C4) in the Company's net assets | 2.43% | ||||||||||
Explanation of details of complex guaranteeNone.
3. Finance management agent
? Applicable □ Not applicable
Unit: RMB ten thousand
| Specific types | Capital source of entrusted financing | Amount of entrusted financial management | Unexpired balance | Overdue amount not recovered | Accrued impairment amount of overdue and unrecovered wealth management |
| Bank financial products | Self-own capitals | 93,604.76 | 35,711.89 | 0 | 0 |
| Total | 93,604.76 | 35,711.89 | 0 | 0 | |
Specific situation of high-risk entrusted financial management with the significant single amount or low securityand poor liquidity
□ Applicable ? Not applicable
Entrusted financial management was expected to be unable to recover the principal or there were other situationsthat may lead to impairment
□ Applicable ? Not applicable
4. Others major contracts
? Applicable □ Not applicable?
| Name of company concluded the contract | Name of counterparty | Contract object | Conclusion date | Pricing principle | Transaction price (RMB 10,000) | Whether a related party transaction | Related party transaction | Implementation status as of the end of the reporting period | Date of disclosure | Reference for disclosure |
| Topband | China Tower Corporation Limited | LFP battery products for backup power | 2022/8/26 | Tendering and bidding | 52,421.09 | No | Not applicable | Implementation completed | 2022/7/28 | CNINFO (http://www.cninfo.com.cn) |
| Topband | China Tower Corporation Limited | LFP battery products for backup power | 2024/2/21 | Tendering and bidding | 34,004.84 | No | Not applicable | In progress | 2024/2/21 | CNINFO (http://www.cninfo.com.cn) |
XIII. Explanation of other major matters
? Applicable □ Not applicable
1. Share repurchase
On January 23, 2024, the Proposal on Topband Shares Repurchase Plan was deliberated and passed in the 6th(Extraordinary) Meeting of the 8th Board of Directors of the Company, stating that the Company plans to repurchaseits shares at a price no more than RMB 13.00/share (inclusive) through centralized bidding with its own fund noless than RMB 30 million and no more than RMB 50 million in total, for the employee shareholding program oroptional incentive, and the term for such share repurchase is 12 months from the date on which the Share RepurchasePlan was deliberated and passed in the 6th (Extraordinary) Meeting of the 8th Board of Directors of the Company.On February 5, 2024, the Proposal on Changing the Total Repurchase Amount in the Topband Shares RepurchasePlan was deliberated and passed in the 7th (Extraordinary) Meeting of the 8th Board of Directors of the Company,to change the total amount for repurchasing shares given in the Proposal on Topband Shares Repurchase Plandeliberated and passed in the 6th (Extraordinary) Meeting of the 8th Board of Directors of the Company from "noless than RMB 30 million and no more than RMB 50 million" to "no less than RMB 80 million and no more thanRMB 150 million", while other clauses concerning the repurchase method, term of implementation, repurchaseprice, etc. in the Shares Repurchase Plan remain unchanged.As of June 30, 2024, the Company has repurchased 10,342,300 shares through centralized bidding via thespecial stock account for the repurchase, accounting for 0.83% of the total equity of the Company, for which, acumulative total of RMB 82,347,338.00 (excluding transaction fees) was paid, with the highest transaction price atRMB 9.15/share and the lowest transaction price at RMB 6.34/share.
For specific details, refer to the relevant disclosure announcements of the Company on the Securities Timesand http://www.cninfo.com.cn on January 24, 2024, January 29, 2024, January 30, 2024, February 2, 2024, February6, 2024, March 1, 2024, April 2, 2024, May 7, 2024, June 4, 2024 and July 2, 2024.
2. Termination of carveout of a subsidiary for listing on ChiNext of Shenzhen Stock Exchange
On March 11, 2024, the Proposal on Terminating the Carveout of a Subsidiary for Listing on ChiNext ofShenzhen Stock Exchange was deliberated and passed in the 8th meeting of the 8th Board of Directors of theCompany, approving to terminate the carveout of a subsidiary, Shenzhen YAKO Automation Technology Co., Ltd.,for listing on ChiNext of Shenzhen Stock Exchange.
Refer to the relevant announcements of the Company on the Securities Times and http://www.cninfo.com.cnon March 12, 2024 for details.
3. Acquisition of minority shareholder equity of holding subsidiary
On March 11, 2024, the Proposal on Planning the Acquisition of Minority Shareholder Equity of A HoldingSubsidiary was deliberated and passed in the 8th meeting of the 8th Board of Directors of the Company, approvingthe Company to acquire all the equity, 28.46% in total, held by Zhu Juzhong, Yanxun Investment and YanyunInvestment in YAKO Automation.
On May 29, 2024, the Proposal on Acquiring Remaining Equity of YAKO Automation was deliberated andpassed in the 11th meeting of the 8th Board of Directors of the Company, and a decision was made to acquire 28.46%equity of YAKO Automation with RMB 165.068 million in cash. On May 29, 2024, the Company entered into anEquity Transfer Agreement with Mr. Zhu Juzhong, a shareholder of YAKO Automation, Shenzhen YanxunInvestment Enterprise (Limited Partnership) and Shenzhen Yanyun Investment Enterprise (Limited Partnership).After completion of the transaction, the Company will hold 100% equity of YAKO Automation.
Refer to the relevant announcements of the Company on the Securities Times and http://www.cninfo.com.cnon March 12, 2024 and May 50, 2024 respectively for details.
XIV. Major matters of subsidiaries of the Company
□ Applicable ? Not applicable
Section VII Share Change and ShareholdersI. Share change
1. Share change
Unit: Share
| Before this change | Increase/decrease of change this time (+, -) | After this change | |||||||
| Quantity: | Proportion | Issuance of new shares | Stock dividend | Conversion of accumulation fund into shares | Others | Subtotal | Quantity: | Proportion | |
| I. Shares with non-tradable conditions | 223,936,357 | 17.67% | 0 | 0 | 0 | -48,503,066 | -48,503,066 | 175,433,291 | 14.07% |
| 1. Shares held by the state | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% | |
| 2. Shares held by state-owned legal persons | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% | |
| 3. Shares held by other domestic capital | 223,858,657 | 17.66% | 0 | 0 | 0 | -48,425,366 | -48,425,366 | 175,433,291 | 14.07% |
| Including: shares held by domestic legal persons | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% | |
| Shares held by domestic natural person | 223,858,657 | 17.66% | 0 | 0 | 0 | -48,425,366 | -48,425,366 | 175,433,291 | 14.07% |
| 4. Shares held by foreign investment | 77,700 | 0.01% | 0 | 0 | 0 | -77,700 | -77,700 | 0 | 0.00% |
| Including: shares held by overseas legal persons | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% | |
| Shares held by overseas natural persons | 77,700 | 0.01% | 0 | 0 | 0 | -77,700 | -77,700 | 0 | 0.00% |
| II. Shares with unlimited tradable conditions | 1,043,665,755 | 82.33% | 0 | 0 | 0 | 27,735,942 | 27,735,942 | 1,071,401,697 | 85.93% |
| 1. A shares | 1,043,665,755 | 82.33% | 0 | 0 | 0 | 27,735,942 | 27,735,942 | 1,071,401,697 | 85.93% |
| 2. Domestic listed foreign shares | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% | |
| 3. Overseas listed foreign shares | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% | |
| 4. Others | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% | |
| III. Total number of shares | 1,267,602,112 | 100.00% | 0 | 0 | 0 | -20,767,124 | -20,767,124 | 1,246,834,988 | 100.00% |
Reasons for share change? Applicable □ Not applicableThe changes in the equity of the Company during the reporting period were due to the repurchase and deregistrationof 20,767,124 restricted shares.Approval of share change? Applicable □ Not applicableThe Company implemented the following decision-making procedure for the repurchase andderegistration of the restricted shares.
On December 1, 2023, the Proposal on Terminating the Implementation of the 2021 Restricted Share IncentivePlan and on the Repurchase and Deregistration of Restricted Shares was deliberated and passed in the 4th(Extraordinary) Meeting of the 8th Board of Directors and the 3rd (Extraordinary) Meeting of the 8th Board ofSupervisors, approving to repurchase and deregister 270,900 restricted shares that had been granted to 20 incentiveobjects who had quit for personal reasons, including Shen Haibin, Wang Sifu, etc., but not yet exercised, at the priceof RMB 7.12/share; approving to repurchase and deregister 20,496,224 restricted shares that had been granted to1,024 in-service incentive objects but not yet released for trade, at the price of RMB 7.35/share (to be rounded off,
and the amount to be paid shall be subject to the actual amount calculated). The above matters had been deliberatedand passed on the 3rd Extraordinary General Meeting of Shareholders in 2023.
The Company totally paid RMB 152,477,057.64 for repurchasing the shares from the above incentive objectswho had quit. Baker Tilly China Certified Public Accountants (Special General Partnership) checked the registeredcapital of the Company, and issued a Capital Verification Report (TZYZ [2024] No. 32338). As reviewed andverified by Shenzhen Branch of CSDC, the above repurchase and deregistration matters were completed on April24, 2024. After the repurchase and deregistration, the total equity of the Company was reduced from 1,267,602,112shares to 1,246,834,988 shares.Transfer of share change
□ Applicable ? Not applicable
Implementation progress of share repurchase? Applicable □ Not applicable
On January 23, 2024, the Proposal on Topband Shares Repurchase Plan was deliberated and passed in the 6th(Extraordinary) Meeting of the 8th Board of Directors of the Company, stating that the Company plans to repurchaseits shares at a price no more than RMB 13.00/share (inclusive) through centralized bidding with its own fund noless than RMB 30 million and no more than RMB 50 million in total, for the employee shareholding program oroptional incentive, and the term for such share repurchase is 12 months from the date on which the Share RepurchasePlan was deliberated and passed in the 6th (Extraordinary) Meeting of the 8th Board of Directors of the Company.On February 5, 2024, the Proposal on Changing the Total Repurchase Amount in the Topband Shares RepurchasePlan was deliberated and passed in the 7th (Extraordinary) Meeting of the 8th Board of Directors of the Company,to change the total amount for repurchasing shares given in the Proposal on Topband Shares Repurchase Plandeliberated and passed in the 6th (Extraordinary) Meeting of the 8th Board of Directors of the Company from "noless than RMB 30 million and no more than RMB 50 million" to "no less than RMB 80 million and no more thanRMB 150 million", while other clauses concerning the repurchase method, term of implementation, repurchaseprice, etc. in the Shares Repurchase Plan remain unchanged.
As of June 30, 2024, the Company has repurchased 10,342,300 shares through centralized bidding via thespecial stock account for the repurchase, accounting for 0.83% of the total equity of the Company, for which, acumulative total of RMB 82,347,338.00 (excluding transaction fees) was paid, with the highest transaction price at
RMB 9.15/share and the lowest transaction price at RMB 6.34/share.For specific details, refer to the relevant disclosure announcements of the Company on the Securities Timesand http://www.cninfo.com.cn on January 24, 2024, January 29, 2024, January 30, 2024, February 2, 2024, February6, 2024, March 1, 2024, April 2, 2024, May 7, 2024, June 4, 2024 and July 2, 2024.Progress in the implementation of the reduction of share repurchase through centralized bid
□ Applicable ? Not applicable
The impact of share changes on financial indicators such as basic earnings per share and diluted earnings per sharein the latest year and the latest period, net assets per share attributable to ordinary shareholders of the Company, etc.
□ Applicable ? Not applicable
Other contents deemed necessary by the Company or required to be disclosed by the securities regulatory institution
□ Applicable ? Not applicable
2. Changes in non-tradable shares
? Applicable □ Not applicable
Unit: Share
| Name of shareholder | Number of non-tradable shares at the beginning of the period | Desterilization number of non-tradable shares in the current period | Increase number of non-tradable shares in the current period | Number of non-tradable shares at the end of the period | Reasons for non-trading | Date of lifting sales restriction |
| Wu Yongqiang | 159,006,536 | 0 | 159,006,536 | Executives lock-in shares | Not applicable | |
| Ji Shuhai | 27,318,642 | 27,318,642 | 0 | Executives lock-in shares | On March 25, 2024, the restriction was lifted 6 months after expiration of the term of office. | |
| Ma Wei | 6,713,200 | 431,200 | 6,282,000 | Executives lock-in shares | On April 24, 2024, the repurchase and deregistration of 2021 restricted shares of the Company were completed. | |
| Peng Ganquan | 3,852,674 | 280,000 | 3,572,674 | Executives lock-in shares | On April 24, 2024, the repurchase and deregistration of 2021 restricted shares of the Company were completed. | |
| Zheng Sibin | 4,752,727 | 373,100 | 4,379,627 | Executives lock-in shares | On April 24, 2024, the repurchase and deregistration of 2021 restricted shares of the Company were completed. |
| Wen Zhaohui | 2,078,345 | 128,100 | 1,950,245 | Executives lock-in shares | On April 24, 2024, the repurchase and deregistration of 2021 restricted shares of the Company were completed. | |
| Dai Huijuan | 239,709 | 0 | 239,709 | Executives lock-in shares | Not applicable | |
| Xiang Wei | 417,300 | 417,300 | 0 | Executives lock-in shares | On March 13, 2024, the restriction was lifted 6 months after expiration of the term of office. | |
| Luo Muchen | 37,500 | 35,000 | 2,500 | Executives lock-in shares | On April 24, 2024, the repurchase and deregistration of 2021 restricted shares of the Company were completed. | |
| Incentive objects of restricted stock incentive plan | 19,519,724 | 19,519,724 | 0 | Stock-option-incentive restricted stocks | On April 24, 2024, the repurchase and deregistration of 2021 restricted shares of the Company were completed. | |
| Total | 223,936,357 | 48,503,066 | 0 | 175,433,291 | -- | -- |
II. Issuance and listing of securities
□ Applicable ? Not applicable
III. Number of shareholders and shareholding situation of the Company
Unit: Share
| Total number of ordinary shareholders at the end of the reporting period | 84,412 | Total number of preferred shareholders with voting rights restored at the end of the reporting period (if any) (see Note 8) | 0 | |||||
| Shareholding status of common shareholders holding more than 5% shares or top 10 common shareholders (excluding shares lent via refinancing) | ||||||||
| Name of shareholder | Nature of shareholders | Proportion of shareholding | Number of ordinary shares held at the end of the reporting period | Changes in increase/decrease during the reporting period | Number of ordinary shares with limited tradable conditions | Number of ordinary shares with unlimited tradable conditions | Pledge, marking or freezing | |
| Share status | Quantity: | |||||||
| Wu Yongqiang | Domestic natural person | 17.00% | 212,008,715 | 0 | 159,006,536 | 53,002,179 | Pledge | 38,860,000 |
| Ji Shuhai | Domestic natural person | 2.19% | 27,318,642 | 0 | 0 | 27,318,642 | Not applicable | 0 |
| Hong Kong Securities Clearing Company Ltd. | Overseas legal person | 2.09% | 26,047,248 | 2,607,847 | 0 | 26,047,248 | Not applicable | 0 |
| Xie Renguo | Domestic natural person | 1.97% | 24,619,688 | 3,518,700 | 0 | 24,619,688 | Not applicable | 0 |
| ONLINK (HK) INDUSTRIAL LIMITED | Domestic non-state-owned legal person | 0.73% | 9,120,100 | 743,700 | 0 | 9,120,100 | Not applicable | 0 |
| AMCM - self-own funds | Overseas legal person | 0.70% | 8,708,206 | -9,331,600 | 0 | 8,708,206 | Not applicable | 0 |
| Ma Wei | Domestic natural person | 0.68% | 8,519,734 | -431,200 | 6,282,000 | 2,237,734 | Not applicable | 0 |
| Zhong Mingyu | Domestic natural person | 0.67% | 8,374,857 | 354,000 | 0 | 8,374,857 | Not applicable | 0 |
| Kuwait Investment Authority | Overseas legal person | 0.64% | 7,940,693 | -9,097,600 | 0 | 7,940,693 | Not applicable | 0 |
| Orient Securities Co., Ltd. - Zhonggeng Value Pioneer Type Securities Investment Fund | Others | 0.62% | 7,760,400 | 7,760,400 | 0 | 7,760,400 | Not applicable | 0 |
| The top 10 ordinary shareholders of strategic investors or general legal persons due to placement of new shares (if any) (see Note 3) | Not applicable | |||||||
| Explanation of the above shareholders' relationship or concerted action | Not applicable | |||||||
| Explanation of the above shareholders' entrusting/entrusted voting rights and waiver of voting rights | Not applicable | |||||||
| Special explanations for the existence of special repurchase accounts among the top 10 shareholders (if any) (see Note 11) | The special account of the Company for the repurchase is the securities account of Shenzhen Topband Co., Ltd. especially for share repurchase. By way of centralized bidding, the Company repurchased 21,790,100.00 shares in total through the special securities account, accounting for 1.75% of the total equity issued by the Company at present. | |||||||
| Shareholding status of top 10 common shareholders without restriction conditions (excluding shares lent via refinancing and locked shares held by executives) | ||||||||
| Name of shareholder | Number of ordinary shares held with unlimited tradable conditions at the end of the reporting period | Type of shares | ||||||
| Type of shares | Quantity: | |||||||
| Wu Yongqiang | 53,002,179 | A shares | 53,002,179 | |||||
| Ji Shuhai | 27,318,642 | A shares | 27,318,642 | |||||
| Hong Kong Securities Clearing Company Ltd. | 26,047,248 | A shares | 26,047,248 | |||||
| Xie Renguo | 24,619,688 | A shares | 24,619,688 | |||||
| ONLINK (HK) INDUSTRIAL LIMITED | 9,120,100 | A shares | 9,120,100 | |||||
| AMCM - self-own funds | 8,708,206 | A shares | 8,708,206 | |||||
| Zhong Mingyu | 8,374,857 | A shares | 8,374,857 | |||||
| Kuwait Investment Authority | 7,940,693 | A shares | 7,940,693 | |||||
| Orient Securities Co., Ltd. - Zhonggeng Value Pioneer Type Securities Investment Fund | 7,760,400 | A shares | 7,760,400 | |||||
| New China Life Insurance Co., Ltd. - Traditional-Common Insurance Product - 018L-CT001 Shen | 7,499,978 | A shares | 7,499,978 | |||||
| Explanation of the relationship or concerted action between the top 10 ordinary shareholders with unlimited tradable conditions and between the top 10 ordinary shareholders with unlimited tradable conditions and the top 10 ordinary | Not applicable | |||||||
| shareholders | |
| Explanation of the participation of the top 10 ordinary shareholders in securities margin trading (if any) (see Note 4) | Mr. Xie Renguo, a shareholder, holds 16,538,603 shares through a credit securities account. |
Participation in lending shares via refinancing by shareholders holding over 5% shares, top 10 shareholders and top10 circulating share shareholders without restriction? Applicable □ Not applicable
Unit: Share
| Participation in lending shares via refinancing by shareholders holding over 5% shares, top 10 shareholders and top 10 circulating share shareholders without restriction | ||||||||
| Name of shareholder (full name) | Shares held through general account and credit account at beginning of period | Shares lent through refinancing at beginning of period and not yet returned | Shares held through general account and credit account at the end of the period | Shares lent through refinancing at the end of the period and not yet returned | ||||
| Total number | Percentage in total equity | Total number | Percentage in total equity | Total number | Percentage in total equity | Total number | Percentage in total equity | |
| AMCM - self-own funds | 18,039,806 | 1.42% | 876,200 | 0.07% | 8,708,206 | 0.70% | 192,700 | 0.02% |
Changes from prior period due to lending via refinancing/return of shares by top 10 shareholders and top 10circulating share shareholders without restriction
□ Applicable ? Not applicable
Whether the top 10 ordinary shareholders and the top 10 ordinary shareholders with unlimited sales conditions haveconducted the agreed repurchase transactions during the reporting period
□ Yes ? No
No agreed repurchase transaction was conducted by the top 10 common shareholders and top 10 commonshareholders without restriction conditions of the Company during the reporting period.IV. Variations in shareholding of directors, supervisors and senior executives? Applicable □ Not applicable
| Name | Position | Position status | Number of shares held at the beginning of the period (shares) | Number of additional shares held in the current period (shares) | Number of shares reduced in the current period (shares) | Number of shares held at the end of the period (shares) | Number of restricted stocks granted at the beginning of the period (shares) | Number of restricted stocks granted in the current period (shares) | Number of restricted stocks granted at the end of the period (shares) |
| Wu Yongqiang | Chairman and general manager | Incumbent | 212,008,715 | 0 | 212,008,715 | 0 | 0 | 0 | |
| Zheng Sibin | Director and deputy general manager | Incumbent | 6,336,970 | 373,100 | 5,963,870 | 373,100 | 0 | 0 | |
| Ma Wei | Director and deputy general manager | Incumbent | 8,950,934 | 431,200 | 8,519,734 | 431,200 | 0 | 0 | |
| Peng Ganquan | Director and deputy general manager | Incumbent | 5,136,900 | 280,000 | 4,856,900 | 280,000 | 0 | 0 | |
| Li Xumeng | Independent director | Incumbent | 0 | 0 | 0 | 0 | 0 | 0 | |
| Chen Zhengxu | Independent director | Incumbent | 0 | 0 | 0 | 0 | 0 | 0 | |
| Qin Wei | Independent director | Incumbent | 0 | 0 | 0 | 0 | 0 | 0 | |
| Wen Zhaohui | Deputy General Manager and Secretary of the Board of Directors | Incumbent | 2,771,127 | 128,100 | 2,643,027 | 128,100 | 0 | 0 | |
| Luo Muchen | Chief financial officer | Incumbent | 50,000 | 35,000 | 15,000 | 35,000 | 0 | 0 | |
| Dai Huijuan | Supervisor | Incumbent | 319,612 | 0 | 319,612 | 0 | 0 | 0 | |
| Kang Weiquan | Supervisor | Incumbent | 0 | 0 | 0 | 0 | 0 | 0 | |
| Chen Jinzhou | Supervisor | Incumbent | 0 | 0 | 0 | 0 | 0 | 0 | |
| Total | -- | -- | 235,574,258 | 0 | 1,247,400 | 234,326,858 | 1,247,400 | 0 | 0 |
V. Variations in controlling shareholders or real controlling parties
Change of controlling shareholders during the reporting period
□ Applicable ? Not applicable
The controlling shareholder of the Company did not change during the reporting period.Change of actual controller during the reporting period
□ Applicable ? Not applicable
The actual controller of the Company did not change during the reporting period.
Section VIII Information on Preferred Shares
□ Applicable ? Not applicable
The Company did not have preferred shares during the reporting period.
Section IX Relevant Information of Bonds
□ Applicable ? Not applicable
Section X Financial ReportI. Audit reportWhether the semi-annual reports have been audited
□ Yes ? No
The semi-annual financial reports of the Company have not been audited.
II. Financial Statements
The unit of statements in the financial notes is: RMB
1. Consolidated Balance Sheet
Prepared by: Shenzhen Topband Co., Ltd.
June 30, 2024
Unit: RMB
| Items | Ending balance | Beginning balance |
| Current assets: | ||
| Monetary capital | 1,601,763,206.84 | 1,550,450,889.82 |
| Settlement of provisions | ||
| Lending funds | ||
| Tradable financial assets | 705,951,354.57 | 656,704,087.16 |
| Derivative financial assets | ||
| Notes receivable | 77,997,557.44 | 54,198,392.53 |
| Accounts receivable | 2,674,255,585.49 | 2,431,773,877.56 |
| Receivables financing | 302,159,864.75 | 278,520,642.22 |
| Prepayments | 51,430,889.79 | 44,088,068.53 |
| Premiums receivable | ||
| Reinsurance accounts receivable | ||
| Reinsurance contract reserves receivable | ||
| Other receivables | 36,971,780.83 | 36,524,343.36 |
| Including: interest receivable | ||
| Dividends receivable | ||
| Repurchase of financial assets for resale | ||
| Inventory | 1,847,349,634.73 | 1,653,816,715.51 |
| Including: data resources | ||
| Contract assets |
| Assets held for sale | ||
| Non-current assets due within one year | ||
| Other current assets | 219,691,147.74 | 213,212,927.49 |
| Total current assets | 7,517,571,022.18 | 6,919,289,944.18 |
| Non-current assets: | ||
| Loans and advances granted | ||
| Debt investment | ||
| Other debt investment | ||
| Long-term receivables | ||
| Long-term equity investment | 37,614,643.25 | 37,748,179.30 |
| Other equity instrument investment | 41,192,950.00 | 41,192,950.00 |
| Other non-current financial assets | ||
| Investment property | 101,985,215.34 | 103,404,402.85 |
| Fixed assets | 2,327,328,836.76 | 2,102,862,886.72 |
| Construction in progress | 527,629,047.04 | 568,107,950.65 |
| Productive biological assets | ||
| Oil and gas assets | ||
| Right-of-use assets | 91,208,911.39 | 101,446,985.74 |
| Intangible assets | 652,179,956.69 | 607,110,895.95 |
| Including: data resources | ||
| Development expenditure | 82,908,232.13 | 134,191,614.89 |
| Including: data resources | ||
| Goodwill | 110,732,042.84 | 110,732,042.84 |
| Long-term deferred expenses | 163,611,343.06 | 182,804,408.10 |
| Deferred tax assets | 168,935,524.91 | 155,039,996.53 |
| Other non-current assets | 196,364,678.33 | 120,187,135.05 |
| Total non-current assets | 4,501,691,381.74 | 4,264,829,448.62 |
| Total assets | 12,019,262,403.92 | 11,184,119,392.80 |
| Current liabilities: | ||
| Short-term loans | 328,398,035.22 | 279,348,750.00 |
| Loan from the Central Bank | ||
| Borrowed funds | ||
| Financial liabilities held for trading | ||
| Derivative financial liabilities | ||
| Notes payable | 1,462,800,767.21 | 927,833,178.70 |
| Accounts payable | 2,063,045,855.42 | 1,957,626,396.34 |
| Advances received | 3,527,349.78 | 2,808,227.54 |
| Contractual liabilities | 172,851,052.12 | 168,681,571.89 |
| Financial assets sold for repurchase | ||
| Deposit absorption and interbank deposit | ||
| Acting trading securities |
| Acting underwriting securities | ||
| Employee compensation payable | 169,554,450.89 | 243,267,783.13 |
| Taxes payable | 80,071,803.27 | 92,374,605.57 |
| Other account payable | 268,554,442.45 | 151,341,029.40 |
| Including: interest payable | ||
| Dividends payable | ||
| Service charges and commissions payable | ||
| Reinsurance accounts payable | ||
| Liabilities held for sale | ||
| Non-current liabilities due within one year | 361,445,125.35 | 370,623,598.03 |
| Other current liabilities | 60,377,622.16 | 32,561,693.03 |
| Total current liabilities | 4,970,626,503.87 | 4,226,466,833.63 |
| Non-current liabilities | ||
| Insurance contract reserve | ||
| Long-term loans | 505,888,984.86 | 437,747,877.47 |
| Bonds payable | ||
| Including: preferred shares | ||
| Perpetual capital securities | ||
| Lease liabilities | 55,996,796.93 | 61,429,811.03 |
| Long-term payables | ||
| Long-term employee compensation payable | ||
| Estimated liabilities | ||
| Deferred income | 9,351,017.56 | 11,146,292.42 |
| Deferred tax liabilities | 73,105,967.14 | 77,730,856.81 |
| Other non-current liabilities | ||
| Total non-current liabilities | 644,342,766.49 | 588,054,837.73 |
| Total liabilities | 5,614,969,270.36 | 4,814,521,671.36 |
| Owner's equity: | ||
| Share capital | 1,246,834,988.00 | 1,246,834,988.00 |
| Other equity instruments | ||
| Including: preferred shares | ||
| Perpetual capital securities | ||
| Capital reserves | 2,132,631,591.66 | 2,212,629,919.51 |
| Minus: treasury shares | 194,780,122.84 | 112,426,101.24 |
| Other comprehensive income | -22,005,828.47 | 11,932,029.41 |
| Special reserves | ||
| Surplus reserves | 219,446,936.59 | 219,446,936.59 |
| General risk provision | ||
| Retained earnings | 3,021,825,518.13 | 2,706,499,696.23 |
| Total owner's equity attributable to the parent company | 6,403,953,083.07 | 6,284,917,468.50 |
| Minority shareholders' equity | 340,050.49 | 84,680,252.94 |
| Total owners' equity | 6,404,293,133.56 | 6,369,597,721.44 |
| Total liabilities and owners' equity | 12,019,262,403.92 | 11,184,119,392.80 |
| Legal representative: Wu Yongqiang | Person in charge of accounting: Luo Muchen | Head of accounting firm: Luo Muchen |
2. Balance Sheet of Parent Company
Unit: RMB
| Items | Ending balance | Beginning balance |
| Current assets: | ||
| Monetary capital | 702,625,752.19 | 564,655,392.19 |
| Tradable financial assets | 448,132,886.74 | 449,502,886.74 |
| Derivative financial assets | ||
| Notes receivable | 32,214,590.46 | 21,283,544.89 |
| Accounts receivable | 1,365,638,215.99 | 1,255,501,213.69 |
| Receivables financing | 181,507,545.76 | 187,096,121.14 |
| Prepayments | 12,363,512.35 | 9,934,227.02 |
| Other receivables | 345,934,589.72 | 359,906,911.54 |
| Including: interest receivable | ||
| Dividends receivable | ||
| Inventory | 439,362,321.12 | 144,733,773.21 |
| Including: data resources | ||
| Contract assets | ||
| Assets held for sale | ||
| Non-current assets due within one year | ||
| Other current assets | 1,396,632.19 | 6,508,120.43 |
| Total current assets | 3,529,176,046.52 | 2,999,122,190.85 |
| Non-current assets: | ||
| Debt investment | ||
| Other debt investment | ||
| Long-term receivables | ||
| Long-term equity investment | 4,154,461,865.33 | 3,987,403,182.73 |
| Other equity instrument investment | ||
| Other non-current financial assets | ||
| Investment property | ||
| Fixed assets | 173,466,752.08 | 168,610,949.25 |
| Construction in progress | 12,827,126.91 | 12,393,132.55 |
| Productive biological assets |
| Oil and gas assets | ||
| Right-of-use assets | 17,384,531.63 | 9,098,366.55 |
| Intangible assets | 182,746,643.36 | 160,674,130.76 |
| Including: data resources | ||
| Development expenditure | 60,195,344.62 | 83,523,254.86 |
| Including: data resources | ||
| Goodwill | ||
| Long-term deferred expenses | 14,013,822.33 | 15,656,340.48 |
| Deferred tax assets | 50,180,733.21 | 44,367,498.96 |
| Other non-current assets | 14,505,254.42 | 9,641,839.34 |
| Total non-current assets | 4,679,782,073.89 | 4,491,368,695.48 |
| Total assets | 8,208,958,120.41 | 7,490,490,886.33 |
| Current liabilities: | ||
| Short-term loans | 100,000,000.00 | 204,133,333.33 |
| Financial liabilities held for trading | ||
| Derivative financial liabilities | ||
| Notes payable | 1,302,497,751.98 | 1,136,576,558.75 |
| Accounts payable | 755,994,544.76 | 242,320,060.42 |
| Advances received | ||
| Contractual liabilities | 79,772,492.42 | 95,017,210.64 |
| Employee compensation payable | 96,427,778.93 | 134,992,084.62 |
| Taxes payable | 26,624,958.38 | 17,927,120.33 |
| Other account payable | 720,111,551.36 | 470,481,715.23 |
| Including: interest payable | ||
| Dividends payable | ||
| Liabilities held for sale | ||
| Non-current liabilities due within one year | 307,226,425.00 | 307,665,202.21 |
| Other current liabilities | 20,431,071.34 | 11,806,507.10 |
| Total current liabilities | 3,409,086,574.17 | 2,620,919,792.63 |
| Non-current liabilities | ||
| Long-term loans | 31,000,000.00 | |
| Bonds payable | ||
| Including: preferred shares | ||
| Perpetual capital securities | ||
| Lease liabilities | 10,389,634.06 | 1,591,379.57 |
| Long-term payables | ||
| Long-term employee compensation payable | ||
| Estimated liabilities | ||
| Deferred income | 3,118,693.56 | 3,806,112.42 |
| Deferred tax liabilities | 33,512,139.45 | 32,635,559.80 |
| Other non-current liabilities | ||
| Total non-current liabilities | 78,020,467.07 | 38,033,051.79 |
| Total liabilities | 3,487,107,041.24 | 2,658,952,844.42 |
| Owner's equity: | ||
| Share capital | 1,246,834,988.00 | 1,246,834,988.00 |
| Other equity instruments | ||
| Including: preferred shares | ||
| Perpetual capital securities | ||
| Capital reserves | 2,254,729,914.19 | 2,254,729,914.19 |
| Minus: treasury shares | 194,780,122.84 | 112,426,101.24 |
| Other comprehensive income | ||
| Special reserves | ||
| Surplus reserves | 219,418,418.13 | 219,418,418.13 |
| Retained earnings | 1,195,647,881.69 | 1,222,980,822.83 |
| Total owners' equity | 4,721,851,079.17 | 4,831,538,041.91 |
| Total liabilities and owners' equity | 8,208,958,120.41 | 7,490,490,886.33 |
3. Consolidated Income Statement
Unit: RMB
| Items | First half of 2024 | 2023 Half-year Statements |
| I. Total operating income | 5,015,785,165.59 | 4,256,121,153.72 |
| Including: operating income | 5,015,785,165.59 | 4,256,121,153.72 |
| Interest income | ||
| Premium earned | ||
| Service charge and commission income | ||
| II. Total operating cost | 4,578,211,459.86 | 3,972,666,304.82 |
| Including: operating cost | 3,817,211,001.65 | 3,337,826,833.15 |
| Interest expense | ||
| Service charge and commission payment | ||
| Surrender value | ||
| Net compensation expenditure | ||
| Net reserve amount set aside for insurance liability | ||
| Policy dividend payment | ||
| Reinsurance expenses | ||
| Taxes and surcharges | 29,865,374.27 | 24,032,385.59 |
| Selling expenses | 180,788,131.47 | 143,034,445.61 |
| Management expenses | 190,587,638.62 | 201,474,565.60 |
| R&D expenses | 388,540,898.00 | 317,290,550.11 |
| Finance expenses | -28,781,584.15 | -50,992,475.24 |
| Including: interest expenses | 28,863,971.32 | 19,596,648.04 |
| Interest income | 15,326,718.58 | 15,720,869.63 |
| Plus: other income | 21,414,975.09 | 17,194,559.29 |
| Investment income (loss indicated by "-") | 2,025,727.35 | -3,244,186.21 |
| Including: income from investment in associated enterprises and joint ventures | -133,536.05 | -941,734.97 |
| Derecognized gains from financial assets measured at amortized cost | ||
| Exchange gain (loss indicated by "-") | ||
| Net gain from exposure hedges (loss indicated by "-") | ||
| Gain from fair-value changes (loss indicated by "-") | -6,041,282.00 | |
| Loss from credit impairment (loss indicated by "-") | -7,181,453.97 | -2,376,908.52 |
| Loss from asset impairment (loss indicated by "-") | -21,090,974.63 | -23,666,214.06 |
| Gain from disposal of assets (loss indicated by "-") | -2,580,837.22 | -1,279,902.83 |
| III. Operating profit (loss indicated by "-") | 430,161,142.35 | 264,040,914.57 |
| Plus: non-operating income | 1,739,303.34 | 4,591,331.07 |
| Minus: non-operating expenses | 5,563,887.00 | 4,250,758.69 |
| IV. Total profit (total loss indicated by "-") | 426,336,558.69 | 264,381,486.95 |
| Minus: income tax expense | 36,778,573.81 | 6,043,729.44 |
| V. Net profit (net loss indicated by "-") | 389,557,984.88 | 258,337,757.51 |
| (I) Classification according to business continuity | ||
| 1. Net profit on continuing operations (net loss indicated by "-") | 389,557,984.88 | 258,337,757.51 |
| 2. Net profit on discontinued operations (net loss indicated by "-") | ||
| (II) Classification according to ownership | ||
| 1. Net profit attribute to shareholders of parent company (net loss indicated by "-") | 388,828,515.18 | 258,040,692.16 |
| 2. Profit/loss attributable to minority shareholders (net loss indicated by "-") | 729,469.70 | 297,065.35 |
| VI. Net after-tax amount of other comprehensive income | -33,937,857.88 | 60,692,638.82 |
| Net after-tax amount of other comprehensive income attributable to the owner of the parent company | -33,937,857.88 | 60,692,638.82 |
| (I) Other comprehensive income that cannot be reclassified into profits and losses | ||
| 1. Re-measurement of changes in the defined benefit plans | ||
| 2. Other comprehensive income not available for transferring to profits and losses under equity method | ||
| 3. Changes in fair value of other equity instrument investment | ||
| 4. Changes in fair value of enterprise's own credit risk | ||
| 5. Others | ||
| (II) Other comprehensive income that is reclassified into profits and losses | -33,937,857.88 | 60,692,638.82 |
| 1. Other comprehensive income that can be transferred into profits and losses under the equity method | ||
| 2. Changes in fair value of other debt investments | ||
| 3. Amount of financial assets reclassified into other comprehensive income | ||
| 4. Provisions for credit impairment of other debt investment | ||
| 5. Cash flow hedging reserve | ||
| 6. Difference in translation of foreign currency financial statements | -33,937,857.88 | 60,692,638.82 |
| 7. Others | ||
| Net after-tax amount of other comprehensive income attributed to the minority of shareholders |
| VII. Total comprehensive income | 355,620,127.00 | 319,030,396.33 |
| Total consolidated income attributable to the owners of the parent company | 354,890,657.30 | 318,733,330.98 |
| Total consolidated income attributable to minority shareholders | 729,469.70 | 297,065.35 |
| VIII. Earnings per share: | ||
| (I) Basic earnings per share | 0.31 | 0.20 |
| (II) Diluted earnings per share | 0.31 | 0.20 |
In case of business merger involving enterprises under the same control in the current period, the net profit realizedby the merged party before the merger is: RMB 0.00, and the net profit realized by the merged party in the priorperiod is: RMB 0.00.
| Legal representative: Wu Yongqiang | Person in charge of accounting: Luo Muchen | Head of accounting firm: Luo Muchen |
4. Income statement of parent company
Unit: RMB
| Items | First half of 2024 | 2023 Half-year Statements |
| I. Operating income | 2,408,336,475.85 | 2,251,996,133.85 |
| Minus: operating cost | 1,950,338,909.54 | 1,906,539,875.63 |
| Taxes and surcharges | 8,506,336.53 | 5,560,404.09 |
| Selling expenses | 116,036,258.24 | 90,986,205.50 |
| Management expenses | 96,839,658.18 | 97,211,587.17 |
| R&D expenses | 222,191,120.63 | 156,684,225.51 |
| Finance expenses | -24,745,298.32 | -30,562,740.37 |
| Including: interest expenses | 8,930,422.33 | 8,774,186.09 |
| Interest income | 7,037,069.58 | 6,279,923.28 |
| Plus: other income | 12,305,323.68 | 6,469,767.96 |
| Investment income (loss indicated by "-") | 470,417.09 | 336,904.82 |
| Including: income from investment in associated enterprises and joint ventures | -9,317.40 | -40,895.19 |
| Recognized gain of financial assets calculated based on amortized cost at the end of the period (loss indicated by "-") | ||
| Net gain from exposure hedges (loss indicated by "-") | ||
| Gain from fair-value changes (loss indicated by "-") | -6,041,282.00 | |
| Loss from credit impairment (loss indicated by "-") | -3,339,018.66 | -1,870,859.80 |
| Loss from asset impairment (loss indicated by "-") | -5,513,253.27 | -1,949,576.95 |
| Gain from disposal of assets (loss indicated by "-") | -83,340.41 | 104,514.76 |
| II. Operating profit (loss indicated by "-") | 43,009,619.48 | 22,626,045.11 |
| Plus: non-operating income | 191,262.62 | 422,626.97 |
| Minus: non-operating expenses | 1,961,918.17 | 788,989.26 |
| III. Total profit (total loss indicated by "-") | 41,238,963.93 | 22,259,682.82 |
| Minus: income tax expense | -4,930,788.21 | -9,738,580.52 |
| IV. Net profit (net loss indicated by "-") | 46,169,752.14 | 31,998,263.34 |
| (I) Net profit on continuing operations (net loss indicated by "-") | 46,169,752.14 | 31,998,263.34 |
| (II) Net profit on discontinued operations (net loss indicated by "-") | ||
| V. Net after-tax amount of other comprehensive income | ||
| (I) Other comprehensive income that cannot be reclassified into profits and losses | ||
| 1. Re-measurement of changes in the defined benefit plans | ||
| 2. Other comprehensive income not available for transferring to profits and losses under equity method | ||
| 3. Changes in fair value of other equity instrument investment | ||
| 4. Changes in fair value of enterprise's own credit risk | ||
| 5. Others | ||
| (II) Other comprehensive income that is reclassified into profits and losses | ||
| 1. Other comprehensive income that can be transferred into profits and losses under the equity method | ||
| 2. Changes in fair value of other debt investments | ||
| 3. Amount of financial assets reclassified into other comprehensive income | ||
| 4. Provisions for credit impairment of other debt investment | ||
| 5. Cash flow hedging reserve | ||
| 6. Difference in translation of foreign currency financial statements | ||
| 7. Others | ||
| VI. Total comprehensive income | 46,169,752.14 | 31,998,263.34 |
| VII. Earnings per share: | ||
| (I) Basic earnings per share | ||
| (II) Diluted earnings per share |
5. Consolidated Cash Flow Statement
Unit: RMB
| Items | First half of 2024 | 2023 Half-year Statements |
| I. Cash flow from operating activities: | ||
| Cash received from sales of goods or rendering of services | 4,987,452,982.82 | 4,469,184,753.48 |
| Net increase in deposits with other banks | ||
| Net increase in borrowing from the central bank | ||
| Net increase in funds borrowed from other financial institutions | ||
| Cash from receipt of original insurance contract premiums | ||
| Receipt of net cash for reinsurance operations | ||
| Net increase in savings and investment funds of the insured | ||
| Cash from receipt of interest, service charges and commissions | ||
| Net increase in borrowed funds | ||
| Net increase in funds from repurchase operations | ||
| Net cash received for acting trading securities | ||
| Refund of tax and levies | 282,746,532.49 | 218,867,332.07 |
| Other cash received related to operating activities | 71,969,813.90 | 67,492,756.77 |
| Subtotal of cash inflow from operating activities | 5,342,169,329.21 | 4,755,544,842.32 |
| Cash paid for purchasing goods and accepting labor services | 3,517,455,046.31 | 3,128,270,632.34 |
| Net increase in loans and advances of clients | ||
| Net increase in deposits with central banks and interbanks | ||
| Cash in compensation funds paid for the original insurance contract | ||
| Net increase in lending funds | ||
| Cash for payment of interest, service charges and commissions | ||
| Cash for payment of policy dividends | ||
| Cash paid to and for employees | 986,965,195.81 | 810,553,360.68 |
| Tax payments | 160,449,258.75 | 113,547,827.98 |
| Other cash paid in connection with operating activities | 206,985,653.67 | 175,330,550.14 |
| Subtotal of cash outflow from operating activities | 4,871,855,154.54 | 4,227,702,371.14 |
| Net cash flow from operating activities | 470,314,174.67 | 527,842,471.18 |
| II. Cash flow from investing activities: | ||
| Cash received from investment recovery | 320,623,714.10 | 41,535,369.30 |
| Cash received as return on an investment | 6,726,780.63 | 465,610.97 |
| Net cash recouped from disposal of fixed assets, intangible assets, and other long-term assets | 706,000.00 | 3,048,022.16 |
| Net cash received from disposal of subsidiaries and other business units | ||
| Other cash received relating to investment activities | 2,235,246.36 | |
| Subtotal of cash inflow from investment activities | 330,291,741.09 | 45,049,002.43 |
| Cash paid for the purchase and construction of fixed assets, intangible assets and other long-term assets | 276,431,701.74 | 444,995,875.67 |
| Cash paid for investment | 359,752,158.18 | 68,710,705.69 |
| Net increase in pledged loans | ||
| Net cash obtained from subsidiaries and other business units | ||
| Other cash paid related to investment activities | 7,268,000.00 | |
| Subtotal of cash outflow from investment activities | 643,451,859.92 | 513,706,581.36 |
| Net cash flow from investment activities | -313,160,118.83 | -468,657,578.93 |
| III. Cash flow from financing activities: | ||
| Cash received from absorbing investment | ||
| Including: cash received by subsidiaries' absorption of minority shareholders' investment | ||
| Cash received from loan | 837,696,102.40 | 885,000,000.00 |
| Other cash received relating to financing activities | 5,021,283.53 | 3,101,583.74 |
| Subtotal of cash inflow from financing activities | 842,717,385.93 | 888,101,583.74 |
| Cash paid for repayments of debts | 727,060,000.01 | 481,310,000.00 |
| Cash paid to distribute dividends, profits or pay interest | 98,468,158.57 | 91,887,916.38 |
| Including: dividends and profits paid by subsidiaries to minority shareholders | ||
| Other cash paid related to financing activities | 137,485,601.63 | 30,009,823.21 |
| Subtotal of cash outflow from financing activities | 963,013,760.21 | 603,207,739.59 |
| Net cash flow from financing activities | -120,296,374.28 | 284,893,844.15 |
| IV. Impact of exchange rate fluctuations on cash and cash equivalents | 42,095,731.96 | 14,538,301.34 |
| V. Net increase in cash and cash equivalents | 78,953,413.52 | 358,617,037.74 |
| Plus: balance of cash and cash equivalents at the beginning of the period | 1,494,743,705.76 | 1,374,281,693.23 |
| VI. Balance of cash and cash equivalents at the end of the period | 1,573,697,119.28 | 1,732,898,730.97 |
6. Cash flow statement of the parent company
Unit: RMB
| Items | First half of 2024 | 2023 Half-year Statements |
| I. Cash flow from operating activities: | ||
| Cash received from sales of goods or rendering of services | 2,174,049,368.22 | 2,377,904,756.11 |
| Refund of tax and levies | 122,565,220.28 | 107,900,631.47 |
| Other cash received related to operating activities | 1,370,428,415.47 | 912,529,650.38 |
| Subtotal of cash inflow from operating activities | 3,667,043,003.97 | 3,398,335,037.96 |
| Cash paid for purchasing goods and accepting labor services | 1,580,535,393.06 | 1,865,163,048.56 |
| Cash paid to and for employees | 422,141,949.13 | 362,203,603.62 |
| Tax payments | 23,631,911.02 | 17,241,561.23 |
| Other cash paid in connection with operating activities | 1,186,205,200.13 | 947,072,850.31 |
| Subtotal of cash outflow from operating activities | 3,212,514,453.34 | 3,191,681,063.72 |
| Net cash flow from operating activities | 454,528,550.63 | 206,653,974.24 |
| II. Cash flow from investing activities: | ||
| Cash received from investment recovery | 200,000,000.00 | |
| Cash received as return on an investment | 1,949,141.49 | 377,800.00 |
| Net cash recouped from disposal of fixed assets, intangible assets, and other long-term assets | 320,000.00 | |
| Net cash received from disposal of subsidiaries and other business units | ||
| Other cash received relating to investment activities | 14,235,246.36 | |
| Subtotal of cash inflow from investment activities | 216,184,387.85 | 697,800.00 |
| Cash paid for the purchase and construction of fixed assets, intangible assets and other long-term assets | 59,832,583.11 | 64,993,076.30 |
| Cash paid for investment | 231,761,025.80 | 5,000,000.00 |
| Net cash obtained from subsidiaries and other business units | ||
| Other cash paid related to investment activities | 7,268,000.00 | |
| Subtotal of cash outflow from investment activities | 298,861,608.91 | 69,993,076.30 |
| Net cash flow from investment activities | -82,677,221.06 | -69,295,276.30 |
| III. Cash flow from financing activities: | ||
| Cash received from absorbing investment | ||
| Cash received from loan | 131,000,000.00 | 230,000,000.00 |
| Other cash received relating to financing activities | ||
| Subtotal of cash inflow from financing activities | 131,000,000.00 | 230,000,000.00 |
| Cash paid for repayments of debts | 200,000,000.00 | 10,000.00 |
| Cash paid to distribute dividends, profits or pay interest | 85,212,715.51 | 83,201,916.97 |
| Other cash paid related to financing activities | 88,026,170.65 | 9,876,571.83 |
| Subtotal of cash outflow from financing activities | 373,238,886.16 | 93,088,488.80 |
| Net cash flow from financing activities | -242,238,886.16 | 136,911,511.20 |
| IV. Impact of exchange rate fluctuations on cash and cash equivalents | 22,503,553.14 | 1,042,806.27 |
| V. Net increase in cash and cash equivalents | 152,115,996.55 | 275,313,015.41 |
| Plus: balance of cash and cash equivalents at the beginning of the period | 530,273,423.70 | 394,701,442.83 |
| VI. Balance of cash and cash equivalents at the end of the period | 682,389,420.25 | 670,014,458.24 |
7. Consolidated statement of changes in owner's equity
Amount in the current period
Unit: RMB
| Items | First half of 2024 | ||||||||||||||
| Owner's equity attributable to the parent company | Minority shareholders' equity | Total owners' equity | |||||||||||||
| Share capital | Other equity instruments | Capital reserves | Minus: treasury shares | Other comprehensive income | Special reserves | Surplus reserves | General risk provision | Retained earnings | Others | Subtotal | |||||
| Preferred shares | Perpetual capital securities | Others | |||||||||||||
| I. Ending balance of last year | 1,246,834,988.00 | 2,212,629,919.51 | 112,426,101.24 | 11,932,029.41 | 219,446,936.59 | 2,706,499,696.23 | 6,284,917,468.50 | 84,680,252.94 | 6,369,597,721.44 | ||||||
| Plus: changes in accounting policies | |||||||||||||||
| Early error correction | |||||||||||||||
| Others | |||||||||||||||
| II. Beginning balance of the current year | 1,246,834,988.00 | 2,212,629,919.51 | 112,426,101.24 | 11,932,029.41 | 219,446,936.59 | 2,706,499,696.23 | 6,284,917,468.50 | 84,680,252.94 | 6,369,597,721.44 | ||||||
| III. Amount of changes in increase/decrease in the current period (decrease indicated by "-") | -79,998,327.85 | 82,354,021.60 | -33,937,857.88 | 315,325,821.90 | 119,035,614.57 | -84,340,202.45 | 34,695,412.12 | ||||||||
| (I) Total comprehensive income | -33,937,857.88 | 388,828,515.18 | 354,890,657.30 | 729,469.70 | 355,620,127.00 | ||||||||||
| (II) Capital invested and reduced by owners | 82,354,021.60 | -82,354,021.60 | -82,354,021.60 | ||||||||||||
| 1. Common share contribution from owners | 0.00 | ||||||||||||||
| 2. Capital contribution from other equity instrument holders | 0.00 | ||||||||||||||
| 3. Share-based payment recorded in owner's equity | 0.00 | ||||||||||||||
| 4. Others | 82,354,021.60 | -82,354,021.60 | -82,354,021.60 | ||||||||||||
| (III) Profit distribution | -73,502,693.28 | -73,502,693.28 | -73,502,693.28 | ||||||||||||
| 1. Appropriation of surplus reserve | 0.00 | ||||||||||||||
| 2. Accrual of general risk reserve | 0.00 | ||||||||||||||
| 3. Distribution to owner (or shareholder) | -73,502,693.28 | -73,502,693.28 | -73,502,693.28 | ||||||||||||
| 4. Others | 0.00 | ||||||||||||||
| (IV) Internal carryover of owner's equity | 0.00 | ||||||||||||||
| 1. Capital reserve transferred to paid-in capital (or equity) | 0.00 | ||||||||||||||
| 2. Surplus reserve transferred to paid-in capital (or equity) | 0.00 | ||||||||||||||
| 3. Recover of loss by surplus reserve | 0.00 | ||||||||||||||
| 4. Defined benefit plan changed amount carried forward to retained earnings | 0.00 |
| 5. Other comprehensive income carried forward to retained earnings | 0.00 | ||||||||||||||
| 6. Others | 0.00 | ||||||||||||||
| (V) Special reserves | 0.00 | ||||||||||||||
| 1. Accrual in the current period | 0.00 | ||||||||||||||
| 2. Utilization in the current period | 0.00 | ||||||||||||||
| (VI) Others | -79,998,327.85 | -79,998,327.85 | -85,069,672.15 | -165,068,000.00 | |||||||||||
| IV. Ending balance of the current year | 1,246,834,988.00 | 2,132,631,591.66 | 194,780,122.84 | -22,005,828.47 | 219,446,936.59 | 3,021,825,518.13 | 6,403,953,083.07 | 340,050.49 | 6,404,293,133.56 |
Amount of prior year
Unit: RMB
| Items | 2023 Half-year Statements | ||||||||||||||
| Owner's equity attributable to the parent company | Minority shareholders' equity | Total owners' equity | |||||||||||||
| Share capital | Other equity instruments | Capital reserves | Minus: treasury shares | Other comprehensive income | Special reserves | Surplus reserves | General risk provision | Retained earnings | Others | Subtotal | |||||
| Preferred shares | Perpetual capital securities | Others | |||||||||||||
| I. Ending balance of last year | 1,269,535,372.00 | 2,266,142,198.44 | 284,257,854.91 | -8,479,622.35 | 214,764,194.14 | 2,271,529,693.82 | 5,729,233,981.14 | 93,392,211.97 | 5,822,626,193.11 | ||||||
| Plus: changes in accounting policies | |||||||||||||||
| Early error correction | |||||||||||||||
| Others | |||||||||||||||
| II. Beginning balance of the current year | 1,269,535,372.00 | 2,266,142,198.44 | 284,257,854.91 | -8,479,622.35 | 214,764,194.14 | 2,271,529,693.82 | 5,729,233,981.14 | 93,392,211.97 | 5,822,626,193.11 | ||||||
| III. Amount of changes in increase/decrease in the current period (decrease indicated by "-") | 32,988,020.07 | -67,614,497.28 | 60,692,638.82 | 182,179,441.84 | 343,474,598.01 | -6,235,470.30 | 337,239,127.71 | ||||||||
| (I) Total comprehensive income | 60,692,638.82 | 258,040,692.16 | 318,733,330.98 | 297,065.35 | 319,030,396.33 | ||||||||||
| (II) Capital invested and reduced by owners | 33,143,382.77 | -67,614,497.28 | 100,757,880.05 | 100,757,880.05 | |||||||||||
| 1. Common share contribution from owners | |||||||||||||||
| 2. Capital contribution from other equity instrument holders | |||||||||||||||
| 3. Share-based payment recorded in owner's equity | 33,143,382.77 | 33,143,382.77 | 33,143,382.77 | ||||||||||||
| 4. Others | -67,614,497.28 | 67,614,497.28 | 67,614,497.28 | ||||||||||||
| (III) Profit distribution | -75,861,250.32 | -75,861,250.32 | -75,861,250.32 | ||||||||||||
| 1. Appropriation of surplus reserve | |||||||||||||||
| 2. Accrual of general risk reserve | |||||||||||||||
| 3. Distribution to owner (or shareholder) | -75,861,250.32 | -75,861,250.32 | -75,861,250.32 | ||||||||||||
| 4. Others | |||||||||||||||
| (IV) Internal carryover of owner's equity |
| 1. Capital reserve transferred to paid-in capital (or equity) | |||||||||||||||
| 2. Surplus reserve transferred to paid-in capital (or equity) | |||||||||||||||
| 3. Recover of loss by surplus reserve | |||||||||||||||
| 4. Defined benefit plan changed amount carried forward to retained earnings | |||||||||||||||
| 5. Other comprehensive income carried forward to retained earnings | |||||||||||||||
| 6. Others | |||||||||||||||
| (V) Special reserves | |||||||||||||||
| 1. Accrual in the current period | |||||||||||||||
| 2. Utilization in the current period | |||||||||||||||
| (VI) Others | -155,362.70 | -155,362.70 | -6,532,535.65 | -6,687,898.35 | |||||||||||
| IV. Ending balance of the current year | 1,269,535,372.00 | 2,299,130,218.51 | 216,643,357.63 | 52,213,016.47 | 214,764,194.14 | 2,453,709,135.66 | 6,072,708,579.15 | 87,156,741.67 | 6,159,865,320.82 |
8. Parent company's statement of changes in owner's equity
Amount in the current period
Unit: RMB
| Items | First half of 2024 | |||||||||||
| Share capital | Other equity instruments | Capital reserves | Minus: treasury shares | Other comprehensive | Special reserves | Surplus reserves | Retained earnings | Others | Total owners' equity | |||
| Preferred | Perpetual capital | Others | ||||||||||
| shares | securities | income | ||||||||||
| I. Ending balance of last year | 1,246,834,988.00 | 2,254,729,914.19 | 112,426,101.24 | 219,418,418.13 | 1,222,980,822.83 | 4,831,538,041.91 | ||||||
| Plus: changes in accounting policies | ||||||||||||
| Early error correction | ||||||||||||
| Others | ||||||||||||
| II. Beginning balance of the current year | 1,246,834,988.00 | 2,254,729,914.19 | 112,426,101.24 | 219,418,418.13 | 1,222,980,822.83 | 4,831,538,041.91 | ||||||
| III. Amount of changes in increase/decrease in the current period (decrease indicated by "-") | 82,354,021.60 | -27,332,941.14 | -109,686,962.74 | |||||||||
| (I) Total comprehensive income | 46,169,752.14 | 46,169,752.14 | ||||||||||
| (II) Capital invested and reduced by owners | 82,354,021.60 | -82,354,021.60 | ||||||||||
| 1. Common share contribution from owners | ||||||||||||
| 2. Capital contribution from other equity instrument holders | ||||||||||||
| 3. Share-based payment recorded in owner's equity | ||||||||||||
| 4. Others | 82,354,021.60 | -82,354,021.60 | ||||||||||
| (III) Profit distribution | -73,502,693.28 | -73,502,693.28 | ||||||||||
| 1. Appropriation of surplus reserve | ||||||||||||
| 2. Distribution to owner (or shareholder) | -73,502,693.28 | -73,502,693.28 | ||||||||||
| 3. Others | ||||||||||||
| (IV) Internal carryover of owner's equity | ||||||||||||
| 1. Capital reserve transferred to paid-in capital (or equity) |
| 2. Surplus reserve transferred to paid-in capital (or equity) | ||||||||||||
| 3. Recover of loss by surplus reserve | ||||||||||||
| 4. Defined benefit plan changed amount carried forward to retained earnings | ||||||||||||
| 5. Other comprehensive income carried forward to retained earnings | ||||||||||||
| 6. Others | ||||||||||||
| (V) Special reserves | ||||||||||||
| 1. Accrual in the current period | ||||||||||||
| 2. Utilization in the current period | ||||||||||||
| (VI) Others | ||||||||||||
| IV. Ending balance of the current year | 1,246,834,988.00 | 2,254,729,914.19 | 194,780,122.84 | 219,418,418.13 | 1,195,647,881.69 | 4,721,851,079.17 |
Amount of prior year
Unit: RMB
| Items | 2023 Half-year Statements | |||||||||||
| Share capital | Other equity instruments | Capital reserves | Minus: treasury shares | Other comprehensive income | Special reserves | Surplus reserves | Retained earnings | Others | Total owners' equity | |||
| Preferred shares | Perpetual capital securities | Others | ||||||||||
| I. Ending balance of last year | 1,269,535,372.00 | 2,314,366,149.44 | 284,257,854.91 | 214,735,675.68 | 1,256,697,391.07 | 4,771,076,733.28 | ||||||
| Plus: changes in accounting policies | ||||||||||||
| Early error correction | ||||||||||||
| Others | ||||||||||||
| II. Beginning balance of the current year | 1,269,535,372.00 | 2,314,366,149.44 | 284,257,854.91 | 214,735,675.68 | 1,256,697,391.07 | 4,771,076,733.28 | ||||||
| III. Amount of changes in increase/decrease in the current period (decrease indicated by "-") | 30,347,889.00 | -67,614,497.28 | -43,862,986.98 | 54,099,399.30 | ||||||||
| (I) Total comprehensive income | 31,998,263.34 | 31,998,263.34 | ||||||||||
| (II) Capital invested and reduced by owners | 30,347,889.00 | -67,614,497.28 | 97,962,386.28 | |||||||||
| 1. Common share contribution from owners | ||||||||||||
| 2. Capital contribution from other equity instrument holders | ||||||||||||
| 3. Share-based payment recorded in owner's equity | 30,347,889.00 | 30,347,889.00 | ||||||||||
| 4. Others | -67,614,497.28 | 67,614,497.28 | ||||||||||
| (III) Profit distribution | -75,861,250.32 | -75,861,250.32 | ||||||||||
| 1. Appropriation of surplus reserve | ||||||||||||
| 2. Distribution to owner (or shareholder) | -75,861,250.32 | -75,861,250.32 | ||||||||||
| 3. Others | ||||||||||||
| (IV) Internal carryover of owner's equity | ||||||||||||
| 1. Capital reserve transferred to paid-in |
| capital (or equity) | ||||||||||||
| 2. Surplus reserve transferred to paid-in capital (or equity) | ||||||||||||
| 3. Recover of loss by surplus reserve | ||||||||||||
| 4. Defined benefit plan changed amount carried forward to retained earnings | ||||||||||||
| 5. Other comprehensive income carried forward to retained earnings | ||||||||||||
| 6. Others | ||||||||||||
| (V) Special reserves | ||||||||||||
| 1. Accrual in the current period | ||||||||||||
| 2. Utilization in the current period | ||||||||||||
| (VI) Others | ||||||||||||
| IV. Ending balance of the current year | 1,269,535,372.00 | 2,344,714,038.44 | 216,643,357.63 | 214,735,675.68 | 1,212,834,404.09 | 4,825,176,132.58 |
III. Basic information of the Company
Shenzhen Topband Co., Ltd. (hereinafter referred to as the Company), former name: Shenzhen TopbandElectronic Equipment Co., Ltd., was incorporated and registered at Shenzhen Municipal Administration of Industry& Commerce on February 9, 1996, and obtained the Enterprise Legal Person Business License (Registration No.19241377-3). On January 10, 2001, after approval, Shenzhen Topband Electronic Equipment Co., Ltd. Was renamedto Shenzhen Topband Electronics & Technology Co., Ltd. On July 15, 2002, with the approval of the People'sGovernment of Shenzhen Municipality by issuing the Reply on the Approval of the Reorganization andEstablishment of Shenzhen Topband Electronics & Technology Co., Ltd. (SFG [2002] No. 24), Guangdong Province,it was agreed to reorganize Shenzhen Topband Electronics & Technology Co., Ltd. as a whole into a companylimited by shares, with five shareholders as the promoter. On June 26, 2007, with the approval of China SecuritiesRegulatory Commission by issuing the Notice on Approving the IPO of Shenzhen Topband Electronics &Technology Co., Ltd. (ZJH No. 2007135), Topband issued shares to the public and was listed on the Shenzhen StockExchange (stock code: 002139). The company name was changed to Shenzhen Topband Co., Ltd. In September2009.
The registered address of the Company is F1, Topband Industrial Park Phase II, Keji Second Road, TangtouCommunity, Shiyan Sub-district, Bao'an District, Shenzhen. The unified social credit identifier on the businesslicense is 91440300192413773Q. The legal representative of the Company is Wu Yongqiang. As of June 30, 2024,the share capital was RMB 1,246,834,988.
The main business activities of the Company include: the research, development, production and sales ofintelligent control system solutions, to provide customized solutions to home appliances, power tools, new energyand industry sectors with "four electrics and one network" (electric control, motor, battery, power and IoT platform)as the core.
IV. Preparation basis of the financial statement
1. Basis of preparation
The financial statements are based on the assumption of continuation of the Company, according to the actualtransactions, in accordance with the relevant provisions of the Accounting Standards for Business Enterprises, andbased on the following important accounting policies and accounting estimates.
2. Continuation
The Company has no major doubt on the ability of continuation and other influencing factors for 12 monthssince the end of the reporting period.V. Significant accounting policies and accounting estimates
Specific accounting policies and accounting estimates reminders:
None.
1. Statement on compliance with Accounting Standards for Business Enterprises
The financial statements prepared on the basis of above compiling foundation give a true and full view of thefinancial position, operating results, cash flow and other relevant information of the Company, conforming to therequirements of the latest Accounting Standards for Business Enterprises and its application guidelines,interpretations as well as other relevant provisions (collectively referred to as "Accounting Standards for BusinessEnterprises") issued by the Ministry of Finance.
In addition, the financial report is prepared in accordance with the reporting and disclosure requirements of theCompilation Rules No. 15 for Information Disclosure by Companies Offering Securities to the Public - GeneralProvisions on Financial Reports (Revised in 2023) issued by the China Securities Regulatory Commission.
2. Accounting period
The fiscal year of the Company adopts the Gregorian calendar year, that is, from January 1 to December 31every year.
The reporting period is from January to June 2024.
3. Operating cycle
The financial year of the Company adopts the Gregorian calendar year, that is, from January 1 to December 31every year.
4. Recording currency
The bookkeeping base currency is RMB for the Company. The Company's overseas subsidiaries may determine
their own bookkeeping base currencies based on the currencies in the main economic environments for theiroperation. In preparation of financial statements, the currency used is RMB.
5. Determination method and selection basis of importance criteria
? Applicable □ Not applicable
| Items | Criteria of importance |
| Accounts receivable on individual basis for material bad debt provision | The balance of individual accounts receivables and other accounts receivables at the end of the period is more than RMB 1 million |
| Important construction in progress | The amount of individual accounts receivable is over RMB 10 million |
6. Accounting treatment for business merger involving enterprises under the same control and underdifferent control
1. Accounting treatment for consolidation under the same control
The Company implements business merger involving enterprises under the same control through single ormultiple transactions by steps, and the assets and liabilities obtained in business merger are accounted based onbook value of the assets and liabilities of the merged party in the consolidated financial statements of the finalcontroller on consolidation date. Capital reserves shall be adjusted according to difference between the book valueof net assets obtained by the Company and the payment for the book value of consolidation consideration (or totalnominal value of the issued shares). If the capital reserve is insufficient to be offset, the retained earnings shall beoffset.
2. Accounting treatment for consolidation under different control
The Company, at the date of acquisition, recognizes the difference of the combination cost greater than the fairvalue share of the Acquiree's net identifiable assets obtained in the combination as goodwill; if the combination costis less than the fair value share of the Acquiree's net identifiable assets obtained in the combination, the Companyfirst re-checks the fair value of the Acquiree's identifiable assets, liabilities and contingent liabilities as well as themeasurement of combination cost. The difference shall be included in the current profits and losses, if thecombination cost is still less than the fair value share of the Acquiree's net identifiable assets obtained in thecombination.
The consolidation under different control realized step by step through multiple transactions shall be treated asfollows:
(1) Adjusting the initial investment cost of long-term equity investment. If the equity held before the acquisitiondate is calculated with the equity method, it shall be re-measured as per the fair value of the equity at the date ofacquisition, and the difference between the fair value and its book value shall be included in the current investmentincome; if the equity of the acquiree held before the acquisition date involves changes in other comprehensiveincome and other equity accounted under the equity method, it shall be transferred to the current income on theacquisition date, excluding other comprehensive income arising from changes in net liabilities or net assets of thedefined benefit plan and changes in the fair value of other equity instruments held re-measured by the investee.
(2) Recognizing goodwill (or amount included in the current profits and losses). The initial investment cost oflong-term equity investment after the first step adjustment is compared with the fair value share of net identifiableassets of subsidiaries at the date of acquisition. If the former is greater than the latter, the difference is recognizedas goodwill; otherwise, it is included in the current profits and losses.
Situation with equity disposal by steps through multiple transactions until the control of the subsidiary is lost:
(1) Judging whether the transactions in the process of disposing equity step by step to losing control oversubsidiaries belong to the principle of "package transaction"
The terms, conditions and economic impact of transactions relating to disposal of equity investment insubsidiaries meet one or more of the following circumstances, which generally indicates that multiple transactionsshall be accounted for as a package transaction:
1) Such transactions are concluded at the same time or under the situation of considering the impact on eachother;
2) Only can the unity of such transactions reach an integral commercial result;
3) The occurrence of a transaction is based on the occurrence of at least one of other transactions;
4) A transaction is regarded as uneconomic, but being economic when regarded along with other transactions.
(2) Accounting treatment for transactions in the process of disposing equity step by step to losing control oversubsidiaries belonging to "package transaction"
If the transactions relating to disposal of equity investment in subsidiaries to losing control over subsidiariesbelong to "package transaction", these shall be treated as a transaction for disposing the subsidiary and losing control;however, the difference between the price of every disposal and the net assets share held in the subsidiarycorresponding to the disposal of investment before losing control shall be recognized as other consolidated incomein the consolidated financial statements, which shall be transferred to the current profits and losses at the time of
losing control.
In the consolidated financial statements, the remaining equity shall be re-measured according to its fair valueon the date of losing control. The difference between the sum of consideration obtained from equity disposal andfair value of remaining equity less the net assets share held in original subsidiary and continuously calculated fromthe date of acquisition as per the original shareholding ratio shall be included in the investment income of the currentperiod of loss of control. Other comprehensive income related to the equity investment in original subsidiary shallbe transferred to the current investment income or retained earnings at the time of losing control.
(3) Accounting treatment for transactions in the process of disposing equity step by step to losing control oversubsidiaries not belonging to "package transaction"
If no loss of control occurs in the disposal of the investment in the subsidiary, the difference between thedisposal price and the net assets share held in the subsidiary corresponding to the disposal of investment in theconsolidated financial statements shall be included in the capital reserve (capital premium or share premium). If thecapital premium is insufficient to offset, the retained earnings shall be adjusted.
In case of loss of control of the investment of the subsidiary, in the consolidated financial statements, theremaining equity shall be re-measured according to its fair value on the date of losing control. The differencebetween the sum of consideration obtained from equity disposal and fair value of remaining equity less the net assetsshare held in original subsidiary and continuously calculated from the date of acquisition as per the originalshareholding ratio shall be included in the investment income of the current period of loss of control. Othercomprehensive income related to the equity investment in original subsidiary shall be transferred to the currentinvestment income or retained earnings at the time of losing control.
7. Criteria of control and methods for preparation of consolidated financial statements
The consolidation scope of consolidated financial statements of the Company shall be determined based oncontrol.
Control means that the Company has power over the invested party, enjoys variable returns by participating inrelated activities of the invested party, and has the ability to use its power over the invested party to influence theamount of returns. Related activities are those that have a significant impact on the return of the invested party.Related activities of the invested party shall be judged according to specific circumstances, and usually include thesale and purchase of goods or services, the management of financial assets, the purchase and disposal of assets,
research and development activities, and financing activities.The Company determines whether it has control over the invested party on the basis of comprehensiveconsideration of all relevant facts and circumstances. Once changes in relevant facts and circumstances lead tochanges in the relevant elements involved in the definition of control, the Company will re-evaluate.The consolidated financial statements, based on the financial statements of the parent company and itssubsidiaries, are prepared by the Company in accordance with the Accounting Standards for Business EnterprisesNo. 33-Consolidated Financial Statements and with reference to other relevant information.
8. Classification of joint venture arrangements and accounting treatment for joint operation
1. Identification and classification of joint venture arrangements
Joint venture arrangement refers to an arrangement under joint control by two or more parties. The joint venturearrangement has the following features: (1) all parties are bound by the arrangement; (2) two or more parties jointlycontrol the arrangement. No single party can control the arrangement solely, and any party with joint control overthe arrangement can prevent other parties or a combination of party alliance from controlling the arrangement alone.Joint control refers to the common control of an arrangement in accordance with relevant agreements, and theactivities related to the arrangement must be agreed upon by the parties holding control right before the decisioncan be made.Joint venture arrangement includes joint operation and joint venture. Joint operation is the joint venturearrangement in which the joint venture party holds the relevant assets of the arrangement and assumes the relevantliabilities. Joint venture refers to a joint venture arrangement in which the joint venture party has rights only to thenet assets of the arrangement.
2. Accounting treatment for joint venture arrangement
Parties in joint operation shall recognize the following items related to their share of interests in joint operation,and perform accounting treatment in accordance with the relevant provisions of the Accounting Standards forBusiness Enterprises: (1) recognize the assets held separately and those held jointly as per their share; (2) recognizethe liabilities assumed separately and those assumed jointly as per their share; (3) recognize the income generatedfrom the sale of its share of joint operation output; (4) recognize the income from the sale of the output of the jointoperation as per its share; (5) recognize the expenses incurred separately and those incurred in the joint operationas per its share.
The parties of a joint venture shall make accounting treatment for the investment in the joint venture inaccordance with the Accounting Standards for Business Enterprises No. 2 - Long-Term Equity Investment.
9. Standards for determining cash and cash equivalents
Cash in the cash flow statement refers to cash on hand and deposits that are available for payment at any time.Cash equivalents refer to investments with short term (generally due within three months from the date of purchase),strong liquidity, easy to convert into known amount of cash and low risk of value change.
10. Foreign currency transaction and translation of foreign currency financial statements
1. The translation of foreign currency transactions
When foreign currency transactions are initially recognized, they are converted into RMB at the spot exchangerate on the transaction date. On the balance sheet date, foreign currency monetary items are translated at the spotexchange rate on the balance sheet date. The exchange difference arising from different exchange rates shall beincluded in the current profits and losses, except for the exchange difference of the principal and interest of foreigncurrency special borrowings related to the acquisition and construction of assets that meet the capitalizationconditions; foreign currency non-monetary items measured at historical cost shall be translated at the spot exchangerate on the transaction date, with the amount in RMB maintaining unchanged; foreign currency non-monetary itemsmeasured at fair value shall be translated at the spot exchange rate on the date of determining fair value, with thedifference included in the current profits and losses or other comprehensive income.
2. Translation of foreign currency financial statements
The assets and liabilities in balance sheet shall be translated at the spot exchange rate on the balance sheet date;except for the "retained earnings", other items in the owner's equity shall be converted at the spot exchange rate onthe transaction date; the income and expense in the income statement shall be converted at the spot exchange rateon the transaction date. The difference in translation of foreign currency financial statements generated from theabove conversion is recognized as other comprehensive income.
11. Financial instruments
1. Recognition and derecognition of financial instruments
When the Company becomes one party of the financial instrument contract, it shall recognize a financial assetor financial liability.
The trading of financial assets in a conventional manner shall be recognized and derecognized according to theaccounting of the trading day. Conventional trading of financial assets refers to the collection or delivery of financialassets within the time limit specified by laws and regulations or common practice in accordance with the terms ofthe contract. Trading day refers to the date when the Company promises to buy or sell financial assets.
If the following conditions are met, the financial assets (or a part of financial assets, or a part of a set of similarfinancial assets) shall be derecognized, i.e., they shall be written off from its accounts and balance sheets:
(1) The right to receive cash flow of financial assets has expired;
(2) The right to receive cash flow of financial assets has been transferred, or the Company has assumed theobligation to timely pay the full amount of the cash flow received to a third party under the "transfer agreement";and (a) has transferred substantially all the risks and rewards from the ownership of financial assets, or (b)abandoned the control of the financial asset, though almost all risks and rewards from the ownership of the financialasset are neither transferred nor retained.
2. Classification and measurement of financial assets
At the time of initial recognition, the financial assets of the Company are classified according to the Company'sbusiness model for the management of financial assets and the contractual cash flow characteristics of financialassets as follows: financial assets measured at amortized cost, financial assets measured at fair value through othercomprehensive income, and financial assets measured at fair value through current profits and losses. Thesubsequent measurement of financial assets depends on its classification.
The classification of financial assets is based on the Company's business model for the management of financialassets and the cash flow characteristics of financial assets.
(1) Financial assets measured at amortized cost
Financial assets that meet the following conditions at the same time are classified as financial assets measuredat amortized cost: the Company's business mode of managing the financial assets is to collect the contract cash flowas the target; the contract terms of the financial asset stipulate that the cash flow generated on a specific date is onlythe payment of principal and interest based on the amount of outstanding principal. For such financial assets, theeffective interest rate method is adopted, and subsequent measurement is made at amortized cost, and the gains orlosses arising from amortization or impairment are included in the current profits and losses.
(2) Debt instruments investment measured at fair value with changes included in other comprehensive income
Financial assets that meet the following conditions at the same time are classified as financial assets measured
at fair value with their changes included in other comprehensive income: the Company's business mode of managingthe financial assets aims to collect the contract cash flow and sell them; the contract terms of the financial assetstipulate that the cash flow generated on a specific date is only the payment of principal and interest based on theamount of outstanding principal. For such financial assets, fair value is adopted for subsequent measurement. Thediscount or premium is amortized using the effective interest rate method and recognized as interest income orexpense. Except the impairment loss and the exchange difference of foreign currency monetary financial assets arerecognized as the current profits and losses, the changes in the fair value of such financial assets are recognized asother comprehensive income until their accumulated gains or losses are transferred into the current profits and losseswhen the financial asset is derecognized. Interest income related to such financial assets is included in the currentprofits and losses.
(3) Equity instruments investment measured at fair value with changes included in other comprehensive incomeThe Company irrevocably chooses to designate part of the non-tradable equity instrument investment asfinancial assets measured at fair value through other comprehensive income. Only the relevant dividend income isincluded in the current profits and losses, and the changes in fair value are recognized as other comprehensiveincome, until their accumulated gains or losses are transferred into retained earnings when the financial asset isderecognized.
(4) Financial assets measured at fair value with changes included in the current profits and lossesThe financial assets other than the above financial assets measured at amortized cost and those at fair valuethrough other comprehensive income are classified as financial assets measured at fair value with changes includedin the current profits and losses. At the time of initial recognition, for the purpose of elimination or significantreduction of accounting mismatch, financial assets can be designated as those measured at fair value with changesincluded in the current profits and losses. For such financial assets, fair value is used for subsequent measurement,and all changes in fair value are included in the current profits and losses.If and only when the Company changes the business model for managing financial assets, it will reclassify allthe affected financial assets.For the financial assets measured at fair value and whose changes are included in the current profits and losses,the relevant transaction costs are directly included in the current profits and losses, and such costs of other types offinancial assets are included in the initial recognition amount.
3. Classification and measurement of financial liabilities
During initial recognition, the Company's financial liabilities are classified as: "financial liabilities measuredat amortization cost" and "financial liabilities measured at fair value with their changes included into the currentprofit and loss".Financial liabilities satisfying one of the following requirements can be designated as financial liabilitiesmeasured at fair value with their changes included in the current profit and loss during initial measurement: (1) Suchdesignation can eliminate or remarkably reduce the accounting mismatch; (2) According to group risk managementor investment strategy in the formal written documents, the management and performance evaluation of the portfolioof financial liabilities or portfolio of financial assets and financial liabilities are conducted on the basis of fair price,and within the group, it is reported to the key management personnel on such basis; (3) Such financial liabilitiesinclude embedded derivatives requiring separate splitting.The Company determines the classification of financial liabilities at the time of the initial recognition. For thefinancial liabilities measured at fair value with changes included in the current profits and losses, the relevanttransaction costs are directly included in the current profits and losses, and such costs of other financial liabilitiesare included in the initial recognition amount.The subsequent measurement of financial liabilities depends on its classification:
(1) Financial liabilities measured at amortized cost
For such financial liabilities, the effective interest rate method is adopted and the subsequent measurement isconducted as per the amortized cost.
(2) Financial liabilities measured at fair value with changes included in the current profits and losses
Such financial liabilities include tradable financial liabilities (including derivatives that belong to financialliabilities) and financial liabilities designated upon initial recognition as those measured at fair value with changesincluded in the current profits and losses.
4. Set off of financial instruments
If the following conditions are met at the same time, financial assets and financial liabilities are presented inthe balance sheet at the net amount after offsetting each other: the Company has the legal right to offset therecognized amount, which is currently enforceable; they plan to settle at the net amount, or realize the financialassets and pay off the financial liabilities at the same time.
5. Impairment of financial assets
The Company recognizes the loss provision based on the expected credit loss for the financial assets measured
at the amortized cost, the debt instrument investment and financial guarantee contract measured at the fair valueand whose changes are included in other comprehensive income. The term "credit loss" refers to the differencebetween all the contractual cash flows that the Company discounted at the original effective interest rate andreceived according to the contract and all the expected cash flows, i.e., the present value of all the cash shortage.Upon considering all reasonable and well-founded information (including forward-looking information), theCompany estimates the expected credit impairment loss is withdrawn for "financial assets measured at amortizedcost" and "financial asset (debt instruments) measured at fair value with their changes included in othercomprehensive income" in single or combined manner.
(1) General model of expected credit loss
If the credit risk of this financial instrument has increased obviously since initial recognition, the Companywill measure the loss reserves according to the expected credit loss amount of such financial instrument in the wholeduration; if the credit risk of this financial instrument hasn't increased obviously since initial recognition, theCompany will measure the loss reserves according to the expected credit loss amount of such financial instrumentin the next 12 months. The increased or reversed amount of the loss provisions arising therefrom shall be includedin the current profits and losses as impairment losses or gains. For details about specific assessment of credit risksby the Company, refer to the Note "XI. Risks Associated with Financial Instruments".Generally, in case of overdue for more than 30 days, the Company will consider that the credit risk of suchfinancial instrument has increased obviously, unless conclusive evidence is available to prove that the credit risk ofsuch financial instrument hasn't obviously increased since the initial recognition.To be specific, the Company divides the credit impairment process of financial instruments that have not beenimpaired at the time of purchase or origination into three stages, with different accounting treatment for theimpairment of financial instruments at different stages:
First stage: credit risk has not increased significantly since initial recognition
For the financial instrument at this stage, the enterprise shall measure the loss provision according to theexpected credit loss in the next 12 months, and calculate the interest income as per its book balance (i.e. withoutdeducting the provision for impairment) and the actual interest rate (if the instrument is a financial asset, the samebelow).
Second stage: the credit risk has increased significantly since the initial recognition, but the credit impairmenthas not occurred
For the financial instrument at this stage, the enterprise shall measure the loss provision according to theexpected credit loss of the instrument thought the whole duration, and calculate the interest income as per its bookbalance and the actual interest rate.Third stage: credit impairment occurs after initial recognitionFor the financial instrument at this stage, the enterprise shall measure the loss provision according to theexpected credit loss of the instrument thought the whole duration, but the calculation of interest income is differentfrom the financial assets at the first two stages. For the financial assets with credit impairment, the enterprise shallcalculate the interest income according to its amortized cost (book balance minus accrued provision for impairment,i.e. book value) and the actual interest rate.For the financial assets with credit impairment at the time of purchase or origination, the enterprise shall onlyrecognize the change of expected credit loss in the whole duration after initial recognition as loss provision, andcalculate the interest income as per its amortized cost and the effective interest rate adjusted by credit.
(2) Receivables and lease receivables
The Company measures the loss provisions as per the amount of expected credit losses throughout the wholeduration by the use of simplified model for expected credit loss for receivables specified in Accounting Standardsfor Business Enterprises No. 14 - Income, excluding significant financing components (including cases in whichfinancing components in contracts not exceeding one year are not taken into account in accordance with thestandards).
The Company makes accounting policy choices to adopt a simplified model for expected credit loss, i.e.,measuring the loss provisions as per the amount equivalent to the expected credit loss throughout the whole durationfor receivables including significant financing components and lease receivables regulated by Accounting Standardsfor Business Enterprises No. 21 - Leasing.
6. Transfer of financial assets
The financial assets shall be derecognized when the Company has transferred all the risks and rewords on theownership of the financial assets to the transferee. The financial assets shall not be derecognized if the Companyretains all the risks and rewards on the ownership of the financial assets.
If the Company neither transfers nor retains almost all the risks and rewards in the ownership of the financialasset, the following conditions shall be referred to: if it gives up the control over the financial asset, it shall terminatethe recognition of the financial asset and recognize the assets and liabilities generated; if it does not abandon the
control over the financial asset, the relevant financial assets shall be recognized according to the extent to which itcontinues to be involved in the transferred financial asset, and the relevant liabilities shall be recognized accordingly.If the financial guarantee is provided to the transferred financial assets to continue to be involved, the assetsgenerated from the continued involvement shall be recognized according to the lower of the book value of thefinancial assets and the amount of financial guarantee. Financial guarantee amount refers to the maximum amountthat will be required to be repaid out of consideration received.
12. Notes receivable
The Company divides notes receivable into two portfolios of bank acceptance bills and commercial acceptancebills by type of financial instrument. With respect to bank acceptance bills, the Company considers its overduedefault risk to be 0 for its risk of overdue credit loss is low and has not significantly increased since the initialrecognition, because the acceptance bank pays the payee or holder a certain amount unconditionally when the billis due. In respect of commercial acceptance bills, the Company believes that the probability of default is correlatedwith the aging, and bad debts shall be accrued for the expected credit loss of accounts receivables according to theaccounting policy.
13. Accounts receivable
The Company measures the loss provisions as per the amount of expected credit losses throughout the wholeduration by the use of simplified model for expected credit loss for receivables specified in Accounting Standardsfor Business Enterprises No. 14 - Income, excluding significant financing components (including cases in whichfinancing components in contracts not exceeding one year are not taken into account in accordance with thestandards). The increased or reversed amount of loss provisions generated therefrom shall be included in the currentprofits and losses as impairment losses or gains.
The Company has implemented Accounting Standard No. 22 - Recognition and Measurement of FinancialInstruments (CK [2017] No. 7) since January 1, 2019, and reviewed the appropriateness of the provisions for baddebts receivables in previous years based on the Company's historical impairment losses on bad debt provision. TheCompany believes that the probability of default is related to the aging, which is still a mark of whether the creditrisk of the Company's accounts receivable increases significantly. Therefore, the credit risk loss of the Company onaccounts receivables is still estimated on the basis of aging according to the original loss ratio of the previous years.The accounting policies for measuring overdue credit loss of accounts receivable adopted by the Company are as
follows:
1. Receivables with significant individual amount and individual provision for bad debtsSignificant individual amount refers to the amount of which the ending balance of individual receivables ismore than RMB 1 million.At the end of the period, a separate impairment test will be carried out on the individual receivables withsignificant amount. If there is objective evidence that it is impaired, the impairment loss shall be recognized withprovision for bad debts according to the difference between the present value of future cash flow and the book value.
2. Receivables with provision for bad debts by portfolio
The individual receivables with not significant amount at the end of the period, together with the receivablesthat have not been impaired after separate test, are divided into several portfolios according to the aging as the creditrisk characteristics, and the impairment loss is calculated and determined according to a certain proportion of theending balance of these receivables portfolio (the impairment test can be conducted separately), with provision forbad debts.
Except for the receivables for which provision for impairment has been made separately, the Companydetermines the proportion for following bad debt provision based on the actual loss rate of the portfolio of the sameor similar receivables in previous years with the aging of receivables as the credit risk feature and in combinationwith the current situation:
| Aging | Estimated loss of accounts receivable (note) | Estimated loss of other receivables |
| Within 1 year (including 1 year) | 3.10% | 5.00% |
| 1-2 years (including 2 years) | 9.04% | 10.00% |
| 2-3 years (including 3 years) | 22.11% | 30.00% |
| 3-4 years (including 4 years) | 47.51% | 50.00% |
| 4-5 years (including 5 years) | 84.26% | 80.00% |
| Above 5 years | 100.00% | 100.00% |
| Including: those that have been determined to be irrecoverable | Write-off | Write-off |
Note: When measuring the expected credit loss of account receivables, the Company has referred to thehistorical experience of credit loss and adjusted it based on forward-looking estimates.
3. Receivables with not significant amount but with single provision for bad debts
Reasons for individual provision for bad debts: the Company conducts a separate impairment test for the
receivables with the following characteristics, although its amount is not significant. If there is objective evidencethat the receivables are impaired, the impairment loss shall be recognized with provision for bad debts according tothe difference between the present value of future cash flow and the book value; receivables that are in dispute withthe other party or involved in litigation or arbitration; receivables that have obvious indications that the debtor islikely to be unable to perform the repayment obligation, etc.Method for bad debt provision: the impairment test shall be conducted separately. If there is objective evidencethat it has been impaired, the impairment loss shall be recognized with provision for bad debts according to thedifference between the present value of future cash flow and its book value.The Company measures the loss provisions as per the amount of expected credit losses throughout the wholeduration by the use of simplified model for expected credit loss for receivables specified in Accounting Standardsfor Business Enterprises No. 14 - Income, excluding significant financing components (including cases in whichfinancing components in contracts not exceeding one year are not taken into account in accordance with thestandards). The increased or reversed amount of loss provisions generated therefrom shall be included in the currentprofits and losses as impairment losses or gains.
14. Receivables financing
Financial assets that meet the following conditions at the same time are classified as financial assets measuredat fair value with their changes included in other comprehensive income: the Company's business mode of managingthe financial assets aims to collect the contract cash flow and sell them; the contract terms of the financial assetstipulate that the cash flow generated on a specific date is only the payment of principal and interest based on theamount of outstanding principal.The receivables held by the Company transferred in the endorsed or discounted form that such transactions arefrequent and involve significant amounts and the management mode aims to collect the contract cash flow and sellthem in nature, are classified as financial assets measured at fair value with their changes included in othercomprehensive income in accordance with the relevant provisions of the Financial Instruments Standards.
15. Other accounts receivable
Recognition method and accounting treatment method for expected credit loss of other receivables
Recognition methods and accounting treatment of expected credit losses of other receivables. The Company
measures the impairment loss by an amount equivalent to the expected credit loss within the next 12 months or overthe entire duration, depending on whether the credit risk of other receivables has increased significantly since theinitial recognition. In addition to other receivables with individual credit risk assessment, they are divided intodifferent portfolios based on their credit risk characteristics:
| Portfolio name | Basis for determining the portfolios | Provision methods |
| Portfolio I | Risk-free portfolio | This portfolio is a risk-free account. |
| Portfolio II | Aging portfolio | The credit risk of the portfolio is characterized by the aging. |
16. Contract assets
1. Recognition methods and standards for the contractual assets
The Company presents contractual assets or contract liabilities in the balance sheet based on the relationshipbetween performance obligations and customer payments. The Company's right to receive consideration for goodsor services transferred to customers (excluding receivables) is listed as contractual assets.
2. The recognition method and accounting treatment for expected credit loss of contractual assets
For contract assets without material financing components (including cases in which financing components incontracts not exceeding one year are not taken into account in accordance with the standards) as specified in theAccounting Standards for Business Enterprises No. 14 - Income, the Company measures provisions for losses asper the amount of expected credit losses throughout the whole duration by using a simplified model for the expectedcredit loss. The increased or reversed amount of loss provisions generated therefrom shall be credited to the currentprofits and losses as impairment losses or gains.
For contract assets with material financing components, the Company measures provisions for losses as perthe amount of expected credit losses throughout the whole duration by using a simplified model for the expectedcredit loss.
17. Inventory
1. Classification of inventories
The inventory includes the finished products or commodities held for sale in daily activities, the unfinishedproducts and the materials consumed in the production or in the provision of labor services, etc.
2. Pricing method of delivered inventories
The delivered inventories are subject to the weighted-average system.
3. Inventory system
Perpetual inventory system is the inventories.
4. Amortization of low value consumables and packaging materials
One-off write-off method is employed for both the low-value consumables and the packaging materials.
5. Determination criteria and accrual method of provision for impairment on inventoriesOn the balance sheet date, inventories are measured at the lower of cost and net realizable value, and provisionsof impairment on inventories are accrued with the difference between the cost of single inventory and net realizablevalue. The net realizable value of the inventories ready for sale is determined at the estimated sale price of suchinventories minus the estimated selling expenses and relevant taxes during normal production and operation, andthat of the inventories to be processed is determined at the estimated sale price of the finished products minus thecosts, selling expenses and relevant taxes estimated to be incurred up to completion during normal production andoperation. On the balance sheet date, the net realizable values are determined separately and compared with thecorresponding costs to determine the amount of withdrawal or reversal of inventory revaluation reserve if a part ofinventory is subject to the contractual price agreement and the rest is not.
18. Assets held for sale
1. Determination criteria and accounting treatment of non-current assets or disposal group classified as heldfor saleThe Company classifies the group components (or non-current assets) as holding for sale if both of thefollowing conditions are met: (1) in accordance with the practice of selling such assets or disposal groups in similartransactions, they can be sold immediately under current conditions; (2) the sale is highly likely to occur, a sale planhas been agreed upon and a firm purchase commitment has been obtained (a firm purchase commitment is a legallybinding purchase agreement between the enterprise and other parties that contains the major terms concerning theprice and time of transaction, severe enough penalties for breach of contract, etc. that make it highly unlikely thatthe agreement will be materially adjusted or cancellation). It is expected the sale will be completed within one year.It has been approved by relevant authorities or regulatory authorities in accordance with relevant provisions.The Company adjusts the estimated net residual value of assets held for sale to a net amount reflecting its fairvalue less selling expenses (but shall not exceed the original carrying value of the assets held for sale), the difference
between the original carrying value and the adjusted estimated net residual value is credited to the current profit andloss as an asset impairment loss, and at the same time, a provision for impairment is made for the assets held forsale. For the amount of asset impairment losses recognized for the disposal group held for sale, the carrying valueof goodwill in the disposal group shall be offset first, and then the carrying value shall be offset proportionallyaccording to the proportion of the carrying value of each non-current asset in the disposal group applicable to themeasurement provisions of the standard.
If the net amount of the fair value of the non-current assets held for sale less the selling expenses increases onthe subsequent balance sheet date, the amount previously written down shall be restored and reversed below theamount of asset impairment losses recognized after the assets are classified as holding for sale, and the amountreversed shall be credited to the current profits and losses. Impairment losses on assets recognized before they areclassified as holding for sale cannot be reversed. If the net amount of the fair value of the disposal group held forsale less the selling expenses increases on the subsequent balance sheet date, the amount previously written downshall be restored and reversed below the amount of asset impairment losses recognized for the non-current assetsapplicable to the measurement provisions of the standard after the assets are classified as holding for sale, and theamount reversed shall be credited to the current profits and losses. The carrying value of goodwill that has beenwritten off and the asset impairment losses recognized before the non-current assets are classified as holding forsale under the measurement provisions of the standard cannot be reversed. For the subsequent reversed amount ofasset impairment losses recognized for the disposal group held for sale, the carrying value shall be increasedproportionally according to the proportion of the carrying value of each non-current asset in the disposal groupapplicable to the measurement provisions of the standard, except goodwill. If an enterprise loses its control over asubsidiary due to the sale of its investment in the subsidiary, regardless of whether the enterprise retains part of theequity investment after the sale, it shall, when the investment in the subsidiary to be sold meets the classificationconditions for holding for sale, classify the investment in the subsidiary as a whole as holding for sale in theindividual financial statements of the parent company, and classify all assets and liabilities of the subsidiary asholding for sale in the consolidated financial statements.
2. Determination criteria and presentation of discontinued operations
Discontinued operations refer to a separable component of the enterprise that meets one of the followingconditions and has been disposed of or classified as holding for sale: (1) the component represents a separateprincipal business or a separate principal operating region; (2) the component is part of an associated plan
concerning the disposal of a separate principal business or a separate principal operating region; (3) the componentis a subsidiary acquired exclusively for resale.
The definition of discontinued operations includes the following three meanings:
(1) The discontinued operations shall be a component that can be separated by the enterprise. The operationand cash flows of this component can be clearly distinguished from the other components of the enterprise in itsoperation and in the preparation of financial statements.
(2) The discontinued operations shall have a certain scale. The discontinued operations shall represent aseparate principal business or a separate principal operating region, or part of an associated plan concerning thedisposal of a separate principal business or a separate principal operating region.
(3) The discontinued operations shall satisfy the given time requirement. A component that meets the definitionof discontinued operations shall be in one of two situations, i.e. the component has been disposed of before thebalance sheet date, including having been sold and discontinued (e.g. closure or scrapping); this component hasbeen classified as holding for sale prior to the balance sheet date.
19. Debt investment
None.
20. Other debt investment
None.
21. Long-term receivables
None.
22. Long-term equity investment
1. Determination of investment costs
(1) If the investment cost is incurred in consolidation under the same control in which case the combining partypays the combination consideration in cash, by transferring the non-cash assets, undertaking the debts or issuing theequity securities, the initial investment cost shall be determined on the basis of the share of the owner's equity ofthe combined party in the book value of the ultimate controlling party's consolidated financial statements on thecombination date. For the difference between the initial investment cost of long-term equity investment and the
book value of the consideration paid for combination or the total face value of the issued shares, the capital reserve(capital premium or share premium) shall be adjusted. If the capital reserve is insufficient to be offset, the retainedearnings shall be adjusted.
If a consolidation under the same control is realized step by step, the initial investment cost shall be determinedon the basis of the share of the owner's equity of the combining party in book that is obtained from the combinedparty on the combination date and calculated at shareholding ratio. For the difference between the initial investmentcost and the sum of the book value of the original long-term equity investment plus the book value of theconsideration newly paid for acquiring further shares on the combination date, the capital reserve (capital premiumor share premium) shall be adjusted. If the capital reserve is insufficient to be offset, the retained earnings shall beadjusted.
(2) If the investment cost is incurred in the consolidation under different control, the initial investment costshall be determined as the fair value of the consideration paid for combination on the purchase date.
(3) Investment costs other than those incurred in consolidation: The initial investment cost shall be the purchaseprice paid actually if the investment is obtained by paying cash, the fair value of the issued equity securities if byissuing the equity securities, and the value specified in the investment contract or agreement in case of investmentfrom an investor (unless the unfair value is specified in the contract or agreement).
2. Subsequent measurement and recognition methods for profits and losses
The long-term equity investment that the Company has the control over the investee shall be calculated withcost method in its individual financial statement; those under the same control or significant influence shall becalculated with equity method.
If the cost method is applied, the long-term equity investments shall be priced at the initial investment cost.The cash dividends or profits declared to be distributed by the investee other than those that have been declared butnot distributed and included in the price or consideration paid actually when the investment is obtained shall berecognized as the current investment income, and it is necessary to consider whether the long-term investment isimpaired in accordance with the relevant policy of asset impairment.
When the equity method is applied, if the initial investment cost of a long-term equity investment is greaterthan the share of fair value of identifiable net assets entitled from the investee at the time of investment, it shall beincluded in the initial investment cost of the long-term equity investment; otherwise, the difference shall be includedin the current profits and losses and the cost of long-term equity investment shall be adjusted.
When the equity method is applied, the profits and losses on investment shall be recognized and the book valueof the long-term equity investment shall be adjusted according to share of the net profits and losses that shall beentitled or shared and have been realized by the investee after the long-term equity investment is obtained. Whenthe share of the net profit and loss entitled from the investee is recognized, the proportion attributable to the investorshall be calculated at the shareholding ratio after offsetting the profits and losses of internal transactions withassociated enterprises and joint ventures (full amount shall be recognized if the losses of internal transactions arethe asset impairment losses) in light of the accounting policies and period of the Company on the basis of the fairvalue of the identifiable assets of the investee when the investment is obtained, and the net profit of the investeeshall be recognized after adjustment. The portion to be distributed shall be calculated with reference to the profitsor cash dividends declared to be distributed by the investee, and the book value of the long-term equity investmentshall be reduced accordingly. If a net loss of the investee confirmed by the Company, the book value of the long-term equity investment, as well as other long-term equity investment which form the net investment of theinvestment units shall be written down until zero limits, except that the Company has to undertake obligations ofadditional losses. The book value of the long-term equity investment was adjusted and included in the owner's equityfor other changes in the owner's equity other than the net profits and losses of the investee.
3. Basis for determination of control over and significant influence on the investee
Control refers to having the power over the investee, being entitled to variable returns by participating in therelevant activities of the investee and able to influence the amount of return by exercising the power over the investee.Significant influence refers to that the investor has the right to participate in decision-making in terms of thefinancial and operating policies of the investee but has no right to control or jointly control the formulation of thesepolicies with other parties.
4. Disposal of long-term equity investments
(1) Partial disposal of long-term equity investments into subsidiaries without loss of control
The difference between the disposal price and the corresponding book value of the disposed investment shallbe recognized as the current investment income in case of partial disposal of long-term equity investments intosubsidiaries without loss of control.
(2) Loss of control over subsidiaries due to partial disposal of long-term equity investments or other reasons
If the control over the subsidiaries is lost due to partial disposal of long-term equity investments or otherreasons, the book value of the long-term equity investment corresponding to the sold equity shall be carried forward
for the disposed equity, and the difference between the sales price and the book value of the disposed long-termequity investment shall be recognized as investment income (loss). In addition, the remaining equity shall berecognized as long-term equity investment or other related financial assets at its book value. The remaining equityafter disposal that has joint control or significant influence on the subsidiaries shall be subject to the accountingtreatment in accordance with the relevant regulations on the conversion from the cost method to the equity method.
5. Methods for impairment test and provision for impairment reserve
If there is any objective evidence showing that the investments into subsidiaries, associated enterprises andjoint ventures are impaired on the balance sheet date, the provision for impairment reserve shall be made accordinglybased on the difference between the book value and the recoverable amount.
23. Investment property
Measurement model of investment propertyMeasurement with cost methodDepreciation or amortization method
1. Investment property includes leased land use rights, land use rights held and ready to be assigned afterappreciation, and leased buildings.
2. Investment property is measured initially at cost and subsequently with cost model. The provision fordepreciation and amortization of the investment property are made in the way as used for fixed assets and intangibleassets. If there is any sign showing that the investment property is impaired on the balance sheet date, the provisionfor impairment reserve shall be made accordingly based on the difference between the book value and therecoverable amount.
See Note III. (23)"Long-term Assets Impairment" for details about the methods for impairment testing andprovision for impairment applicable to investment properties.
If the real estate for private use or inventory is converted to an investment property or the investment propertyis converted to a real estate for private use, the book value before such conversion shall be deemed as the entryvalue after the conversion.
If the purpose of an investment property is changed to private use, this investment property shall be convertedinto a fixed or intangible asset from the date of change. If the purpose of a property is changed to rent gains orcapital appreciation from private use, the fixed asset or intangible asset shall be converted into an investment
property from the date of change. If the purpose of a property is changed to rent gains or capital appreciation fromprivate use, the fixed asset or intangible asset shall be converted into an investment property from the date of change.If any asset is converted into an investment property measured with the cost model, the book value before theconversion shall be deemed as the entry value after the conversion. If any asset is converted into an investmentproperty measured with the fair value model, the fair value on the conversion date shall be deemed as the entryvalue after the conversion.An investment property shall be derecognized if this investment property is disposed of or permanently retired,and it is expected that no economic benefits can be obtained from its disposal. The disposal income from the sale,transfer, scrapping or damage of an investment property shall be included in the current profits and losses afterdeducting its book value and relevant taxes and dues. The disposal income from the sale, transfer, scrapping ordamage of an investment property shall be included in the current profits and losses after deducting its book valueand relevant taxes and dues.
24. Fixed assets
(1) Conditions for recognition
Fixed assets refer to the tangible assets that are held for production of goods, provision of labor services, leaseor operation management and of which the service life exceeds one fiscal year.
(2) Depreciation method
| Type | Depreciation method | Depreciable life | Residual rate, % | Annual depreciation rate, % |
| Houses and buildings | Straight-line method | 20-40 years | 5 | 2.375-4.75 |
| Machinery and equipment | Straight-line method | 10 years | 5 | 9.50 |
| Transportation equipment | Straight-line method | 5 years | 5 | 19.00 |
| Tooling | Straight-line method | 5 years | 5 | 19.00 |
| Electronic equipment and other equipment | Straight-line method | 5 years | 5 | 19.00 |
25. Construction in progress
1. The construction in progress shall be transferred to fixed assets at the actual cost of the project when it isready for use as intended. If a product under construction has been ready for use as intended but has not undergonefinal settlement of account, this project shall be transferred to fixed assets at the estimated value first. After final
settlement of account is made, the original temporary estimated value shall be adjusted according to the actual costwithout adjustment of depreciation previously accrued.
2. If there is any sign showing that a construction in progress is impaired on the balance sheet date, the provisionfor impairment shall be made accordingly at the difference between the book value and the recoverable amount.
26. Borrowing costs
1. Recognition principle for capitalizing borrowing cost
Borrowing costs occurred by the Company that may be directly attributable to the acquisition or constructionof assets eligible for capitalization, are capitalized and accounted in the cost of relevant assets; while otherborrowing costs are recognized as expenses and accounted into current profits and losses whenever occurred.
2. Capitalization period of borrowing costs
(1) The borrowing costs shall be capitalized if they meet the following conditions: 1) Asset expenditures havebeen incurred; 2) Borrowing costs have been incurred; 3) Acquisition, construction or production activitiesnecessary for the assets to reach the usable or marketable state as intended have begun.
(2) The capitalization of borrowing costs shall be discontinued if the acquisition, construction or production ofan asset that meets the conditions for capitalization is abnormally interrupted for more than 3 successive months.The borrowing costs incurred during the period of interruption shall be recognized as current expenses until theacquisition, construction or production of assets is resumed.
(3) The capitalization of borrowing costs shall cease when the purchased, constructed or produced assets thatmeet the conditions for capitalization reaches the intended usable or marketable state.
3. Capitalized amount of borrowing costs
If special borrowings are for the purpose of purchase, construction or production of assets that meet theconditions for capitalization, the amount of interest to be capitalized shall be determined as the interest expensesactually incurred (including the amortization of discounts or premiums determined with the effective interest ratemethod) in the current period of the special borrowing minus the interest income from the unused borrowings thathave been deposited in the bank or the profit from temporary investment by the unused borrowings. If generalborrowings are used for the purpose of purchase, construction or production of assets that meet the conditions forcapitalization, the amount of interest to be capitalized shall be determined as the weighted average of assetexpenditure with accumulated asset expenditure exceeding special borrowing multiplied by capitalization rate of
the general borrowing occupied.
27. Biological assets
None.
28. Oil and gas assets
None.
29. Intangible assets
(1) Service life and its determination criteria, estimation, amortization method or review procedure
1. The intangible assets of the Company, including land use rights, software, patent rights and non-patentedtechnologies, are initially measured at cost.
2. Intangible assets with limited service life shall be systematically and reasonably amortized according to theexpected realization mode of economic benefits related within the service life, and in case the expected realizationmode cannot be reliably determined, the straight-line method shall be adopted for amortization.
The land usage right shall be averagely amortized within the remaining service life (generally 50 years), thesoftware shall be averagely amortized within 3-5 years, and the patent rights and non-patent technologies within 5-10 years.
3. In case of signs of impairment of intangible assets with defined service life on the balance sheet date,corresponding provision for impairment shall be made according to the difference between the book value and therecoverable amount; for intangible assets with uncertain service life and intangible assets that have not reached theserviceable condition, the impairment tests shall be carried out every year, whether there are signs of impairment ornot.
(2) Collection range of R&D expenditures and relevant accounting treatment
Research stage expenditures of internal R&D projects shall be included in the current profits and losses at thetime of occurrence. In case following conditions have been met at the same time, expenditure of internal R&Dprojects in development stage shall be recognized as intangible assets: (1) It is technically feasible to complete theintangible assets for adoption and sale; (2) There is the intention to complete the intangible assets for adoption andsale; (3) There exist ways for intangible assets to generate economic benefits, including the evidence that there is a
market for products produced by using the intangible assets or for the intangible assets. If the intangible assets willbe used internally, it can be proved that they are useful; (4) There are sufficient technical, financial and otherresources to support the development of the intangible assets and to use or sell the intangible assets; (5) Expenditureof the intangible assets in development stage can be measured reliably.
30. Long-term assets impairment
The enterprise shall judge whether there is any sign of possible assets impairment on the balance sheet date.Goodwill arising from consolidation and intangible assets with uncertain service life shall be tested forimpairment every year, no matter whether there is any sign of impairment.In case of following signs, the assets may be impaired:
(1) Market price of assets falls sharply in the current period, which is significantly higher than the expecteddecline due to time or normal use; (2) There are significant changes in current and future economic, technologicalor legal environment in which the enterprise operates and the market where assets are located, bringing adverseeffects on the enterprise; (3) The market interest rate or other market return on investment has been increased in thecurrent period, affecting the discount rate of the enterprise to calculate the present value of the expected future cashflow of the assets and resulting in a significant decrease in the recoverable amount of the assets; (4) There existsevidence showing that the assets have become obsolete or the entity has been damaged; (5) Assets have been or willbe idle, terminated or planned to be disposed in advance; (6) Evidence in the internal report of the enterprise showsthat economic performance of assets has been or will be lower than the expected, for instance, the net cash flowarising from assets or the realized operating profit (or loss) is far lower (or higher) than the expected amount, etc.
(7) Other indications showing that assets may have been impaired.
In case of signs of assets impairment, corresponding recoverable amount shall be estimated.
Recoverable amount shall be determined based on the higher of the net amount of fair value of assets minusthe disposal expenses and the present value of expected future cash flow of assets.
Disposal expenses include legal expenses, relevant taxes and handling fees related to disposal of assets as wellas direct expenses incurred to make the assets marketable.
Present value of expected future cash flow of assets shall be determined by selecting an appropriate discountrate based on the expected future cash flow generated during continuous use and final disposal of the assets. Toestimate present value of future cash flow of assets, measures shall be taken to comprehensively consider factors as
the expected future cash flow, service life and discount rate of the assets.In case of measurement result of recoverable amount showing that recoverable amount of the asset is lowerthan its book value, the book value shall be written down to the recoverable amount, and the written down amountshall be recognized as the asset impairment loss and included in the current profits and losses; besides,corresponding provision for impairment of assets shall be made at the same time.
31. Long-term deferred expenses
Long-term deferred expenses shall be recorded according to the actual amount, and shall be averagelyamortized in the benefit period or the specified period. In case future accounting period cannot benefit from long-term deferred expenses, all unamortized value of the item shall be transferred into the current profits and losses.
32. Contract liabilities
The Company presents contractual assets or contract liabilities in the balance sheet based on the relationshipbetween performance obligations and customer payments. The Company's obligation to transfer commodities orservices to customers for consideration received or receivable by the Company is listed as contract liability.
33. Employee compensation
(1) Accounting treatment of short-term compensation
During the accounting period when employees provide service for the Company, the actual short-termremuneration is recognized as liabilities and included in the current profits and losses or the relevant assets cost.Where, non-monetary welfare shall be measured at fair value.
(2) Accounting treatment of post-employment benefits
Post-employment benefit mainly includes basic endowment insurance, unemployment insurance and so on.Post-employment benefit plan includes defined contribution plan. Where the defined contribution plan is used, thecorresponding amount shall be recorded into relevant asset costs or current profits and losses.
(3) Accounting treatment of dismissal benefits
In case the Company terminates labor relationship with employees prior to the expiration of employee's laborcontract, or offers compensation to encourage employees to accept the layoff voluntarily, it shall confirm the
compensation for termination of labor relationship with employees and include the compensation amount in thecurrent profits and losses at the earlier time when it fails to unilaterally withdraw labor relationship termination planor layoff proposal and confirms costs related to reorganization involving the payment of dismissal benefits.
(4) Accounting treatment of other long-term employee benefits.
None.
34. Estimated liabilities
None.
35. Share-based payment
1. Types of share-based payment
It includes equity-settled share-based payment and cash-settled share-based payment
2. Determination method of fair value of equity instrument
(1) In case of active market, it shall be determined according to the quoted price in the active market.
(2) In case of no active market, it shall be determined by adopting valuation technologies, including referringto prices used in recent market transactions by parties familiar with the situation and willing to trade, current fairvalue of other financial instruments that are essentially the same, discounted cash flow method and option pricingmodel.
3. Basis for confirming the best estimate of vesting equity instruments
Estimation shall be based on the latest available changes on vesting employee number and other subsequentinformation.
4. Accounting treatment of implementing, modifying and terminating share-based payment plan
(1) Equity-settled share-based payment
Equity-settled share-based payment in exchange for employee services that can be exercised immediately afterthe grant shall be included in the relevant costs or expenses according to the fair value of equity instruments on thegrant date, and the capital reserve shall be adjusted accordingly. For equity-settled share-based payment in exchangefor employee services only after completing service within the waiting period or reaching the specified performanceconditions, it is required to include the services obtained in the current period into relevant costs or expenses
according to the best estimate of number of vesting equity instruments and the fair value on the grant date of equityinstruments on each balance sheet date within the waiting period, and the capital reserve shall be adjustedaccordingly.
For equity-settled share-based payment in exchange for other party's services, if the fair value of other party'sservices can be reliably measured, it shall be measured based on the fair value of other party's services on theacquisition date; In case the fair value of other party's services cannot be reliably measured, but the fair value ofequity instruments can be reliably measured, it shall be measured based on the fair value of equity instruments onthe acquisition date and shall be included in relevant costs or expenses; besides, the owner's equity shall be increasedaccordingly.
(2) Cash-settled share-based payment
Cash-settled share-based payment in exchange for employee services that can be exercised immediately afterthe grant shall be included in relevant costs or expenses according to the fair value of the liabilities undertaken bythe Company on the grant date, and the liabilities shall be increased accordingly. For cash-settled share-basedpayment in exchange for employee services only after completing service within the waiting period or reaching thespecified performance conditions, it is required to include the services obtained in the current period into relevantcosts or expenses and relevant liabilities according to the best estimate of vesting situation and the fair value of theliabilities assumed by the Company on each balance sheet date within the waiting period.
(3) Modification and termination of share-based payment plan
In case of increase of fair value of the equity instruments granted due to modification, the Company shallrecognize the increase of services obtained based on the increase of fair value of equity instruments; In case ofincrease of the number of equity instruments granted due to modification, the Company shall recognize the fairvalue of the increased equity instruments as the increase of services obtained accordingly. Besides, if the Companymodifies vesting conditions in a way beneficial to employees, it shall consider all modified vesting conditions whendealing with the vesting conditions.
In case of decrease of fair value of the equity instruments granted due to modification, the Company shallcontinue to recognize the amount of services obtained based on the fair value of equity instruments on the grantdate without considering the decrease of fair value of equity instruments; In case of decrease of the number of equityinstruments granted due to modification, the Company shall recognize the decreased part as the cancellation ofgranted equity instruments; Besides, if the Company modifies vesting conditions in a way not beneficial to
employees, it shall not consider the modified vesting conditions when dealing with vesting conditions.
In case the Company cancels or settles the granted equity instruments within the waiting period (except thosecancelled due to failure to meet the vesting conditions), the cancellation or settlement shall be accelerated for vesting,and the amount originally recognized in the remaining waiting period shall be recognized immediately.
36. Preferred shares, perpetual bonds and other financial instruments
None.
37. Revenue
Disclose accounting policies applied for revenue recognition and measurement by business type
1. Accounting policies applied for revenue recognition and measurement
(1) Revenue recognition
The Company's revenue mainly includes sales revenue of intelligent controller, lithium battery, motor andcontrol system.
The Company has fulfilled performance obligation in the Contract, that is, recognizing revenue when thecustomer obtains the control right of relevant commodities. Obtaining of the control right of relevant commoditiesmeans to be able to dominate the use of the commodities and obtain almost all economic benefits arising therefrom.
(2) The Company determines the nature of relevant performance obligations as "performance obligationsfulfilled in a certain period" or "performance obligations fulfilled at a certain time point" based on relevantprovisions of revenue standards, and recognizes revenues according to the following principles respectively.
When the Company meets one of the following conditions, it shall be performance obligations fulfilled in acertain period:
① Customers obtain and consume economic benefits arising from performance of the Company during theCompany's performance of the Contract.
② Customers can control the assets under construction during the Company's performance of the Contract.
③ Assets of the Company during the performance of the Contract are irreplaceable, and the Company shall beentitled to collect money for the performance part completed so far in the whole contract period.
For performance obligations fulfilled within a certain period of time, the Company shall recognize revenueaccording to the performance progress within that period, except that the performance progress cannot be reasonably
determined. The Company shall consider the nature of commodities, and shall determine the proper performanceprogress by adopting the output method or the input method.
For performance obligations fulfilled at a certain time point rather than in a certain period, the Companyrecognizes revenues at the time when customers obtain the control right of relevant commodities.When judging whether customers have obtained the control right of relevant commodities, the Companyconsider the following signs:
① The Company shall be entitled to immediately collect revenues from commodities, which means thatcustomers have the obligation to pay for commodities immediately.
② The Company has transferred the legal ownership of commodities to customers, which means that customershave obtained the legal ownership of commodities.
③ The Company has transferred commodities in kind to customers, which means that customers havepossessed commodities in kind.
④ The Company has transferred main risks and rewards related to the ownership of commodities to customers,which means that customers have obtained main risks and rewards related to the ownership of commodities.
⑤ Customers have accepted the commodities.
⑥ Other indications that customers have obtained the control right of commodities.
(3) Revenue measurement
The Company shall measure revenue according to the transaction price allocated to each individualperformance obligation. In determining the transaction price, the Company shall consider the influence of variableconsideration, significant financing components in the Contract, non-cash consideration, and consideration payableto customers as well as other factors.
① Variable consideration
The Company determines the optimal estimation of variable considerations based on the expected value or themost likely amount, but the transaction price including the variable consideration shall not exceed an amount thatis highly unlikely to result in a material reversal of cumulative recognized revenue when the relevant uncertainty iseliminated. When evaluating whether the accumulative recognized revenue is unlikely to be significantly reversed,the enterprise shall further consider the possibility and proportion of revenue reversal.
② Significant financing components
In case of significant financing components in the Contract, the Company shall determine the transaction priceaccording to the amount payable in cash when assuming that customers obtain the control right of commodities.Difference between the transaction price and the contract consideration shall be amortized by adopting the effectiveinterest rate method during the contract period.
③ Non-cash consideration
In case customers pay non-cash consideration, the Company shall determine the transaction price according tothe fair value of the non-cash consideration. In case the fair value of non-cash consideration cannot be reasonablyestimated, the Company shall indirectly determine the transaction price by referring to the separate selling price ofcommodities for transferring commodities to customers that it promises.
④ Consideration payable to customers
Consideration payable to customers shall be written down against the transaction price, and the current incomeshall be offset at the later of confirming relevant income or paying (or promising to pay) customer's consideration,except that the consideration payable to customers is to obtain other clearly distinguishable commodities fromcustomers.
In case the consideration payable by an enterprise to customers is to obtain other clearly distinguishablecommodities from customers, the purchased commodities shall be confirmed in a way consistent with otherpurchases of the Company. In case the consideration payable by an enterprise to customers exceeds the fair valueof a clearly distinguishable commodity obtained from the customer, the excess amount shall be used to offset thetransaction price. In case the fair value of clearly distinguishable commodities obtained from customers cannot bereasonably estimated, the enterprise shall offset the transaction price with the consideration payable to customers infull.
2. Specific policies of the Company for revenue recognition
In case the sales contract between the Company and customers has been deemed as a performance obligationfulfilled at a certain time point, the specific revenue recognition method shall be formulated according to the actualsituation of the Company's product sales as follows:
Domestic sales: ① The customer picks up the goods in cash. After the payment and delivery, it is consideredthat the customer has obtained the control of the relevant goods, and the Company has recognized the sales revenue;
② If the advances received are used for settlement, and the other party's customer confirmation receipt is obtainedafter the delivery, it is considered that the customer has obtained the control of the relevant commodities, and the
Company has recognized the sales revenue; ③ If the credit sale is adopted according to a certain payment period,within which the customer settles, and after the delivery, the other party's customer confirmation receipt is obtained,it is considered that the customer has obtained the control of the relevant goods, and the Company has recognizedthe sales revenue.Foreign sales: the Company shall deliver commodities according to the signed order, hold special exportinvoice, delivery note and other original documents for customs clearance and export, pass customs audit, completeexport declaration procedures, obtain the customs declaration documents as the point of transfer of control of therelevant goods, and recognize the sales revenue by recording the revenue based on the delivery order, special exportinvoice and customs declaration form.Different revenue recognition and measurement methods for similar businesses using different operation modesNone.
38. Contract cost
Contract cost is divided into contract performance cost and contract acquisition cost.The cost incurred by the enterprises of the Company for contract performance shall be deemed as a contractperformance cost and recognized as an asset if the following conditions are met:
1. The cost is directly related to a current contract or a contract expected to be acquired, including direct laborcost, direct material cost, manufacturing (or similar) cost, cost clearly stated to be borne by the customer, and othercosts incurred only as a result of the contract;
2. The cost requires enterprises to use more resources to perform the obligation in the future;
3. The cost is expected to be recoverable.
When an incremental cost incurred by the Company for acquiring a contract is expected to be recovered, itshall be treated as a contract acquisition cost and recognized as an asset; however, if the asset is amortized for lessthan one year, it can be credited to the current profits and losses when incurred.
Assets related to contract costs are amortized on the same basis as the recognition of revenue of goods orservices related to that asset.
If the carrying value of an asset related to the contract cost is higher than the difference between the followingtwo items, the Company will make a provision for impairment for the excess and recognize it as an asset impairmentloss:
1. Remaining consideration expected to be obtained as a result of the transfer of goods or services related tothe asset;
2. Cost estimated to be incurred for the transfer of the relevant goods or services.
In case of reversal of the above provision for impairment of assets, the carrying value of the asset shall not behigher than its book value on the reversal date when the provision for impairment would have not been accrued.
39. Government subsidies
1. Government subsidies include government subsidies related to assets and government subsidies related toincome.
2. In case the government subsidies can be included in monetary assets, they shall be measured according tothe amount received or receivable; In case the government subsidies can be classified as non-monetary assets, theyshall be measured at fair value, and once the fair value cannot be obtained reliably, they shall be measured in nominalamount.
3. Government subsidies calculated by adopting the gross method:
(1) Government subsidies related to assets shall be recognized as deferred income and included in profits andlosses by stages in a reasonable and systematic way within the service life of relevant assets. In case relevant assetsare sold, transferred, scrapped or damaged prior to the end of their service life, the balance of relevant deferredincome that has not been allocated shall be transferred to the profits and losses of the current period of asset disposal.
(2) Government subsidies related to income and used to compensate related expenses or losses in the laterperiod shall be recognized as deferred income, and shall be included in the current profits and losses during theperiod when related expenses are recognized; subsidies used to compensate relevant expenses or losses incurredshall be directly included in the current profits and losses.
4. Government subsidies calculated by adopting the net method:
(1) Government subsidies related to assets shall be used to offset the book value of relevant assets;
(2) Government subsidies related to income and used to compensate related expenses or losses in the laterperiod shall be recognized as deferred income, and shall be used to offset related costs when related expenses arerecognized; subsidies used to compensate relevant expenses or losses incurred shall be directly used to offset relatedcosts.
5. For government subsidies that contain both a part related to assets and a part related to income, separate the
different parts for accounting treatment; if indistinguishable, classify such subsidies as income-related governmentsubsidies as a whole.
6. The government subsidies related to the daily activities of the Company shall be included into other incomesor used to write down related costs and expenses in accordance with the essence of economic operations; thegovernment subsidies independent of the daily activities shall be included into the non-operating income andexpense.
7. For discount interest of preferential policy loans to be obtained by the Company, two measures shall beadopted, including that the Ministry of Finance allocates the discount funds to the lending banks and that theMinistry of Finance allocates the discount funds to the Company:
(1) In case the Ministry of Finance allocates the discount funds to the lending banks, and the lending bankprovides loans to the Company at preferential policy interest rate, the Company shall choose the following methodsfor accounting treatment:
1) Taking the loan amount actually received as the entry value of the loan, and calculating relevant borrowingcosts based on the loan principal and the preferential policy interest rate.
2) Taking the fair value of loan as the entry value, calculate the borrowing costs by adopting the effectiveinterest rate method, and recognizing the difference between the actual received amount and the fair value of theloan as deferred income. Deferred income shall be amortized by adopted the effective interest rate method withinthe duration of loan to offset relevant borrowing costs.
(2) In case the Ministry of Finance allocates the discount funds to the Company, the Company will write downthe corresponding discount interest against relevant borrowing costs.
40. Deferred income tax assets/deferred income tax liabilities
1. It is required to calculate and recognize the deferred tax assets or liabilities according to the differencebetween the book value of the assets and liabilities and corresponding tax base (in case the tax base of items notrecognized as assets and liabilities can be determined according to the provisions of the tax law, the differencebetween the tax base and their book amount shall be adopted) as well as the applicable tax rate during the period ofexpected recovery of the assets or settlement of the liabilities.
2. Recognition of deferred tax assets shall be limited to the taxable income that is likely to be obtained to offsettemporary deductible differences. On the balance sheet date, if there is conclusive evidence that it is likely to obtain
sufficient taxable income in the future periods to offset the deductible temporary differences, the deferred tax assetsnot recognized in the previous accounting periods shall be recognized.
3. The book value of deferred tax assets shall be reviewed on the balance sheet date. In case it is impossible toobtain enough taxable income to offset the benefits of the deferred tax assets in the future, the book value of thedeferred tax assets shall be written down. If it is likely to obtain enough taxable income, the write down amountshall be reversed.
4. The current income tax and deferred tax of the Company shall be recognized as income tax expense orincome, and shall be included in the current profits and losses, except for income tax arising from the followingcircumstances: (1) consolidation; (2) transactions or matters directly recognized in the owner's equity.
41. Lease
(1) Accounting for leases as a lessee
As the lessee, the Company recognizes the right-of-use assets and lease liabilities for the lease on the beginningdate of the lease term excluding short-term leases and leases of low-value assets to which the simplified treatmentapplies.
After the starting date of the lease term, the Company uses the cost model to make subsequent measurementof the right-of-use assets. The provision for the depreciation of the right-of-use assets shall be made with referenceto the relevant depreciation provisions of the Accounting Standards for Business Enterprises No. 4 - Fixed Assets.If the lessee can reasonably determine that it will obtain the ownership of the leased assets upon the expiration ofthe lease term, provision for depreciation shall be made within the remaining service life of the leased assets. If itis not reasonable to be certain that the lessee will obtain the ownership of the leased assets at the expiry of the leaseterm, the leased assets shall be calculated and withdrawn as depreciation over the shorter one of the lease term orthe remaining service life. The Company determines whether the right-of-use assets are impaired in accordance withthe Accounting Standards for Business Enterprises No. 8 - Asset Impairment, and carries out accounting treatmentfor the identified impairment losses.
The Company calculates the interest expense of the lease liabilities in each period of the lease at the fixedperiodic interest rate, which is included in the current profits and losses. If the cost shall be included in the cost ofrelevant assets in accordance with the Accounting Standards for Business Enterprises No. 17 - Borrowing Costs andother standards, such provisions shall prevail.
For short-term leases and low-value asset leases, the Company shall choose not to recognize right-of-use assetsand lease liabilities, and include the lease payments for short-term leases and low-value asset leases in the relevantasset cost or current profit and loss according to the straight-line method during each period of the lease term.
(2) Accounting for leases as a lessor
During each period of the lease term, the Company as the lessor shall adopt the straight-line method torecognize the rental revenue from operating lease as rental income. The lessor shall capitalize the initial direct costrelated to operating lease, and amortizes and includes such cost into the current profits and losses by installmentaccording to the same recognition base of the rental revenue during the lease term.
As for the fixed assets subject to operating leases, the Company shall calculate the depreciation of it by adoptingdepreciation policy for similar assets. As for other leased assets, systematic and reasonable methods shall be adoptedfor its amortization according to the Accounting Standards for Business Enterprises applicable to this asset. TheCompany determines whether the operating lease assets are impaired in accordance with Accounting Standards forBusiness Enterprises, No. 8 -Asset Impairment, and carries out corresponding accounting treatment.
42. Other important accounting policies and accounting estimation
Share repurchase
If the Company or its subsidiaries shares are acquired due to the reduction of registered capital or reward ofemployees, the amount actually paid shall be treated as the treasury share, and the record shall be made for reference.If the repurchase shares are cancelled, the capital reserve will be offset by the difference between the total par valueof the cancelled shares and the number of cancelled shares and the amount paid for the actual repurchase. If thecapital reserve is insufficient to be offset, the retained earnings shall be offset; If the repurchase shares are awardedto the employees of the Company as equity-settled share-based payment, when the employees exercise the right topurchase the shares of the Company or its subsidiaries and receive the price, the cost of treasury shares delivered tothe employees and the accumulated amount of capital reserve (other capital reserves) during the waiting period shallbe resold, and the capital reserve (capital premium or share premium) shall be adjusted according to the difference.
43. Changes to important accounting policies and accounting estimation
(1) Important accounting policy changes
□ Applicable ? Not applicable
(2) Important accounting estimation changes
□ Applicable ? Not applicable
(3) Relevant items in financial statements at the beginning of 2024 when such adjustments were made for the first time forinitial implementation of the new accounting standard
□ Applicable ? Not applicable
44. Others
None.
VI. Tax
1. Main tax types and tax rate
| Tax type | Tax basis | Tax rate |
| VAT (value-added tax) | Revenue from sales of goods | 13%、9%、6%、3%、0% |
| Urban maintenance and construction tax | Paid turnover tax amount | 7%、5% |
| Corporate income tax | Taxable income | Please refer to the different corporate income tax rates, subject of taxation and their tax rate disclosures below for details. |
| Education surcharges | Paid turnover tax amount | 3% |
Where there are any taxpayers with different corporate income tax rates, details shall be disclosed.
| Name of taxpayer | Corporate income tax |
| Shenzhen Topband Co., Ltd. | 15.00% |
| Shenzhen Topband Software Technology Co., Ltd. | 15.00% |
| Shenzhen Topband Automation Technology Co., Ltd. | 15.00% |
| Shenzhen Topband Battery Co., Ltd. | 15.00% |
| Chongqing Topband Industrial Co., Ltd. | 25.00% |
| Topband (Hong Kong) Co., Ltd. | 16.50% |
| Huizhou Topband Electrical Technology Co., Ltd. | 15.00% |
| TOPBAND INDIA PRIVATE LIMITED | 25.17% |
| Shenzhen YAKO Automation Technology Co., Ltd. | 15.00% |
| Shenzhen Allied Control System Co., Ltd. | 15.00% |
| Shenzhen Yansheng Software Co., Ltd. | 15.00% |
| Ningbo Topband Intelligent Control Co., Ltd. | 25.00% |
| Shenzhen Meanstone Intelligent Technology Co., Ltd. | 20.00% |
| Hangzhou Zhidong Motor Technology Co., Ltd. | 20.00% |
| Taixing Ninghui Lithium Battery Co., Ltd. | 15.00% |
| Shenzhen Topband Supply Chain Services Co., Ltd. | 25.00% |
| Shenzhen Topband Investment Co., Ltd. | 25.00% |
| Shenzhen Spark IOT Technology Co., Ltd. | 20.00% |
| Shenzhen Zhongli Consulting Co., Ltd. | 20.00% |
| Shenzhen Tunnu Innovation Co., Ltd. | 20.00% |
| TUNNU INNOVATION,INC | 21.00% |
| Shenzhen Senxuan Technology Co., Ltd. | 20.00% |
| Shenzhen Tengyi Industrial Co., Ltd. | 20.00% |
| Topband (Qingdao) Intelligent Control Co., Ltd. | 20.00% |
| Shenzhen Topband Automotive Electronics Co., Ltd. | 20.00% |
| TOPBAND JAPAN Co.,Ltd | 23.20% |
| Tunnu Innovation (Hong Kong) Limited | 8.25% |
| TOPBAND SMART DONGNAI (VIETNAM) Co.,Ltd | 20.00% |
| Topband Germany GmbH | 15.83% |
| Huizhou Topband Battery Co., Ltd. | 20.00% |
| Nantong Topband Youneng Technology Co., Ltd. | 25.00% |
| Huizhou YAKO Automation Technology Co., Ltd. | 25.00% |
| Shenzhen Topband Motor Co., Ltd. | 20.00% |
| Shenzhen Yueshang Robot Co., Ltd. | 20.00% |
| Shenzhen Jingfei Investment Co., Ltd. | 20.00% |
| Huizhou Chiding Technology Co., Ltd. | 20.00% |
| Q.B.PTE.LTD | 17.00% |
| TOPBAND MEXICO,S.DER.L.DEC.V. | 30.00% |
| TOPBAND SMART EUROPE COMPANY LIMITED S.R.L. | 16.00% |
| Yolaness Technology (HK) Co., Ltd | 8.25% |
| Huizhou Jiuwan Lvyuan Agriculture Co., Ltd. | 20.00% |
| YOLANESS AFRICA (PTY) LTD | 27.00% |
2. Tax preference
Shenzhen YAKO Automation Technology Co., Ltd. was recognized as a software enterprise by Economy,Trade and Information Commission of Shenzhen Municipality on April 27, 2013, and received the softwareenterprise certification, which number is Shen R-2010-0237. According to relevant provisions in the Notice on theDistribution of Several Policies on Further Encouraging the Development of the Software and Integrated Circuit
Industries issued by the State Council (GF [2011] No. 4), after the sales revenue of the above products is levied forvalue-added tax at the statutory tax rate of 13% during the reporting period, the refund-upon-collection policy shallbe applied to the part of actual VAT burden in excess of 3%.
Shenzhen Topband Software Technology Co., Ltd. was recognized as a software enterprise by Economy, Tradeand Information Commission of Shenzhen Municipality on June 28, 2013, and received the software enterprisecertification, which number is Shen R-2013-0616. According to relevant provisions in the Notice on the Distributionof Several Policies on Further Encouraging the Development of the Software and Integrated Circuit Industries issuedby the State Council (GF [2011] No. 4), after the sales revenue of the above products is levied for value-added taxat the statutory tax rate of 13% during the reporting period, the refund-upon-collection policy shall be applied to thepart of actual VAT burden in excess of 3%.Shenzhen Yansheng Software Co., Ltd. was recognized as a software enterprise by Shenzhen Software IndustryAssociation on August 31, 2017, and received the software enterprise certification, which number is Shen RQ-2017-0587. According to relevant provisions in the Notice on the Distribution of Several Policies on FurtherEncouraging the Development of the Software and Integrated Circuit Industries issued by the State Council (GF[2011] No. 4), after the sales revenue of the above products is levied for value-added tax at the statutory tax rate of13% during the reporting period, the refund-upon-collection policy shall be applied to the part of actual VAT burdenin excess of 3%.
According to the Notice of the Ministry of Finance and the State Taxation Administration on VAT Policies forSoftware Products (CS [2011] No. 100), the refund-upon-collection policy shall be applied to the part of actual VATburden of software products in excess of 3%. The provision of the policy is applicable to Shenzhen Allied ControlSystem Co., Ltd. and Shenzhen Meanstone Intelligent Technology Co., Ltd., subsidiaries of the Company.
On November 15, 2023, the Company received the Hi-tech Enterprise Certificate (No. GR202344206777)issued by Shenzhen Science and Technology Innovation Commission, Finance Bureau of Shenzhen Municipalityand Shenzhen Tax Service, State Taxation Administration, which is valid for three years. According to the relevantprovisions of the Enterprise Income Tax Law of the People's Republic of China, the Rules for the Implementationof the Enterprise Income Tax Law and the Measures for the Administration of the Recognition of High and NewTechnology Enterprises, the enterprise income tax rate applicable to the Company for the years 2023 to 2025 is 15%.
On December 19, 2022, Shenzhen Topband Software Technology Co., Ltd. obtained the Certificate for High-tech Enterprise that is numbered GR202244203890 and issued by Shenzhen Science and Technology Innovation
Commission, Shenzhen Finance Bureau and Shenzhen Tax Service, State Taxation Administration. This Certificateis valid within 3 years from the date of issuance. According to the relevant provisions of the Enterprise Income TaxLaw of the People's Republic of China, the Rules for the Implementation of the Enterprise Income Tax Law and theMeasures for the Administration of the Recognition of High and New Technology Enterprises, the enterprise incometax rate applicable for the years 2022 to 2024 is 15%.On December 23, 2021, Shenzhen Topband Battery Co., Ltd. obtained the Certificate for High-tech Enterprisethat is numbered GR202144203102 and issued by Shenzhen Science and Technology Innovation Commission,Shenzhen Finance Bureau and Shenzhen Tax Service, State Taxation Administration. This Certificate is valid within3 years from the date of issuance. According to the relevant provisions of the Enterprise Income Tax Law of thePeople's Republic of China, the Rules for the Implementation of the Enterprise Income Tax Law and the Measuresfor the Administration of the Recognition of High and New Technology Enterprises, the enterprise income tax rateapplicable for the years 2021 to 2023 is 15%.On December 20, 2021, Huizhou Topband Electrical Technology Co., Ltd. obtained the Certificate for High-tech Enterprise that is numbered GR202144003640 and issued by the Department of Science and Technology ofGuangdong Province, the Department of Finance of Guangdong Province, and Guangdong Provincial Tax Service,State Taxation Administration. This Certificate is valid within 3 years from the date of issuance. According to therelevant provisions of the Enterprise Income Tax Law of the People's Republic of China, the Rules for theImplementation of the Enterprise Income Tax Law and the Measures for the Administration of the Recognition ofHigh and New Technology Enterprises, the enterprise income tax rate applicable for the years 2021 to 2023 is 15%.On December 23, 2021, Shenzhen YAKO Automation Technology Co., Ltd. obtained the Certificate for High-tech Enterprise that is numbered GR202144205479 and issued by Shenzhen Science and Technology InnovationCommission, Shenzhen Finance Bureau and Shenzhen Tax Service, State Taxation Administration. This Certificateis valid within 3 years from the date of issuance. According to the relevant provisions of the Enterprise Income TaxLaw of the People's Republic of China, the Rules for the Implementation of the Enterprise Income Tax Law and theMeasures for the Administration of the Recognition of High and New Technology Enterprises, the enterprise incometax rate applicable for the years 2021 to 2023 is 15%.On December 23, 2021, Shenzhen Allied Control System Co., Ltd. obtained the Certificate for High-techEnterprise that is numbered GR202144206368 and issued by Shenzhen Science and Technology InnovationCommission, Shenzhen Finance Bureau and Shenzhen Tax Service, State Taxation Administration. This Certificate
is valid within 3 years from the date of issuance. According to the relevant provisions of the Enterprise Income TaxLaw of the People's Republic of China, the Rules for the Implementation of the Enterprise Income Tax Law and theMeasures for the Administration of the Recognition of High and New Technology Enterprises, the enterprise incometax rate applicable for the years 2021 to 2023 is 15%.
On December 23, 2021, Shenzhen Yansheng Software Co., Ltd. obtained the Certificate for High-techEnterprise that is numbered GR202144207744 and issued by Shenzhen Science and Technology InnovationCommission, Shenzhen Finance Commission and Shenzhen Tax Service, State Taxation Administration. ThisCertificate is valid within 3 years from the date of issuance. According to the relevant provisions of the EnterpriseIncome Tax Law of the People's Republic of China, the Rules for the Implementation of the Enterprise Income TaxLaw and the Measures for the Administration of the Recognition of High and New Technology Enterprises, theenterprise income tax rate applicable for the years 2021 to 2023 is 15%.On November 30, 2021, Taixing Ninghui Lithium Battery Co., Ltd. obtained the Certificate for High-techEnterprise that is numbered GR202132010782 and issued by the Jiangsu Provincial Department of Science andTechnology, the Department of Finance of Jiangsu Province, and Jiangsu Provincial Tax Service, State TaxationAdministration. This Certificate is valid within 3 years from the date of issuance. According to the relevantprovisions of the Enterprise Income Tax Law of the People's Republic of China, the Rules for the Implementationof the Enterprise Income Tax Law and the Measures for the Administration of the Recognition of High and NewTechnology Enterprises, the enterprise income tax rate applicable for the years 2021 to 2023 is 15%.On November 15, 2023, Shenzhen Topband Automation Technology Co., Ltd. received the Hi-tech EnterpriseCertificate (No. GR202344204958) issued by Shenzhen Science and Technology Innovation Commission, FinanceBureau of Shenzhen Municipality and Shenzhen Tax Service, State Taxation Administration, which is valid for threeyears. According to the relevant provisions of the Enterprise Income Tax Law of the People's Republic of China,the Rules for the Implementation of the Enterprise Income Tax Law and the Measures for the Administration of theRecognition of High and New Technology Enterprises, the enterprise income tax rate applicable for the years 2023to 2025 is 15%.According to the provisions of the Announcement on Tax and Fee Policies for Further Supporting theDevelopment of Small and Micro Enterprises and Individual Businesses issued by the Ministry of Finance and theState Taxation Administration (Announcement 2023 No. 12 by the Ministry of Finance and the State TaxationAdministration), small low-profit enterprises shall calculate their taxable income at a reduced rate of 25% and pay
enterprise income tax at a rate of 20%, and this policy is extended till December 31, 2027. The provisions of thispolicy are applicable the subsidiaries and sub-subsidiaries of the Company, including Hangzhou Zhidong MotorTechnology Co., Ltd., Shenzhen Xinghuo IoT Technology Co., Ltd., Shenzhen Tunnu Innovation Co., Ltd., HuizhouTopband Battery Co., Ltd., Shenzhen Topband Motor Co., Ltd., Shenzhen Meanstone Intelligent Technology Co.,Ltd., Shenzhen Zhongli Consulting Co., Ltd., Shenzhen Senxuan Technology Co., Ltd., Shenzhen Tengyi IndustrialCo., Ltd., Topband (Qingdao) Intelligent Control Co., Ltd., Shenzhen Topband Automobile Electronics Co., Ltd.,Shenzhen Yueshang Robot Co., Ltd., Shenzhen Jingfei Investment Co., Ltd., Huizhou Chiding Technology Co., Ltd.,and Huizhou Jiuwan Lvyuan Agriculture Co., Ltd.
3. Others
None.VII. Notes to Items of Consolidated Financial Statements
1. Monetary capital
Unit: RMB
| Items | Ending balance | Beginning balance |
| Cash on hand | 942,476.08 | 1,069,045.22 |
| Bank deposit | 1,553,769,502.27 | 1,352,610,241.43 |
| Other monetary capital | 47,051,228.49 | 196,771,603.17 |
| Total | 1,601,763,206.84 | 1,550,450,889.82 |
| Including: total amount deposited abroad | 209,092,202.16 | 270,380,160.96 |
Other description
1. At the end of the period, the amount of pledges, blocked funds and other restricted funds is RMB 28,066,087.56.
2. At the end of the period, there is no amount deposited overseas or with the repatriation restricted.
2. Tradable financial assets
Unit: RMB
| Items | Ending balance | Beginning balance |
| Financial assets measured at fair value and whose changes are recorded in current profits and losses | 705,951,354.57 | 656,704,087.16 |
| Including: | ||
| Financial products | 357,118,885.97 | 303,000,000.00 |
| Investment in equity instruments | 348,832,468.60 | 352,334,087.16 |
| Forward foreign exchange contract | 1,370,000.00 |
| Including: | ||
| Total | 705,951,354.57 | 656,704,087.16 |
Other descriptionNone.
3. Derivative financial assets
□ Applicable ? Not applicable?
4. Notes receivable
(1) List of classification of notes receivable
Unit: RMB
| Items | Ending balance | Beginning balance |
| Bank acceptance instruments | 71,179,083.04 | 48,332,530.42 |
| Commercial acceptance bill | 6,818,474.40 | 5,865,862.11 |
| Total | 77,997,557.44 | 54,198,392.53 |
(2) Disclosure based on accrual methods of bad-debt provision
Unit: RMB
| Type | Ending balance | Beginning balance | ||||||||
| Book balance | Provision for bad debts | Book value | Book balance | Provision for bad debts | Book value | |||||
| Amount | Proportion | Amount | Proportion of provision | Amount | Proportion | Amount | Proportion of provision | |||
| Notes receivable with single provision for bad debts | 71,179,083.04 | 91.00% | 71,179,083.04 | 48,332,530.42 | 88.87% | 48,332,530.42 | ||||
| Including: | ||||||||||
| Bank acceptance bill | 71,179,083.04 | 91.00% | 71,179,083.04 | 48,332,530.42 | 88.87% | 48,332,530.42 | ||||
| Notes receivable with provision for bad debts by portfolio | 7,036,609.29 | 9.00% | 218,134.89 | 3.10% | 6,818,474.40 | 6,053,521.27 | 11.13% | 187,659.16 | 3.10% | 5,865,862.11 |
| Including: | ||||||||||
| Commercial acceptance bill | 7,036,609.29 | 9.00% | 218,134.89 | 3.10% | 6,818,474.40 | 6,053,521.27 | 11.13% | 187,659.16 | 3.10% | 5,865,862.11 |
| Total | 78,215,692.33 | 100.00% | 218,134.89 | 0.28% | 77,997,557.44 | 54,386,051.69 | 100.00% | 187,659.16 | 0.35% | 54,198,392.53 |
Description of bad-debt provision on combined basis: Commercial acceptance bill
Unit: RMB
| Name | Ending balance | ||
| Book balance | Provision for bad debts | Proportion of provision | |
| Commercial acceptance bill | 7,036,609.29 | 218,134.89 | 3.10% |
| Total | 7,036,609.29 | 218,134.89 | |
Explanation of the basis for determining the portfolio:
None.In case of provision for bad debts on notes receivable based on the general model of expected credit loss:
□ Applicable ? Not applicable
(3) Provision for bad debts accrued, recovered or reversed in the current periodProvision for bad debts in the current period:
Unit: RMB
| Type | Beginning balance | Amount changed in the current period | Ending balance | |||
| Provision | Recover or reversal | Write-off | Others | |||
| Provision for bad debts - notes receivable | 187,659.16 | 30,475.73 | 218,134.89 | |||
| Total | 187,659.16 | 30,475.73 | 218,134.89 | |||
Of which the amount of provision for bad debts recovered or reversed in the current period is significant:
□ Applicable ? Not applicable
(4) Notes receivable pledged by the Company at the end of the period
Unit: RMB
| Items | Pledged amount at the end of the period |
| Bank acceptance instruments | 1,364,281.25 |
| Total | 1,364,281.25 |
(5) Notes receivable endorsed or discounted by the Company at the end of the period and not due onbalance sheet date
Unit: RMB
| Items | Amount derecognized at the end of the period | Amount not derecognized at the end of the period |
| Bank acceptance instruments | 57,744,156.21 | |
| Total | 57,744,156.21 |
5. Accounts receivable
(1) Disclosure by aging
Unit: RMB
| Aging | Book balance at the end of the period | Book balance at the beginning of the period |
| Within 1 year (including 1 year) | 2,750,777,993.64 | 2,501,663,449.76 |
| 1-2 years | 25,501,412.28 | 26,101,888.01 |
| 2-3 years | 30,788,650.65 | 34,426,751.55 |
| Above 3 years | 38,718,684.39 | 38,418,609.23 |
| 3-4 years | 36,561,755.06 | 36,343,415.96 |
| 4-5 years | 822,155.35 | 742,628.55 |
| Above 5 years | 1,334,773.98 | 1,332,564.72 |
| Total | 2,845,786,740.96 | 2,600,610,698.55 |
(2) Disclosure based on accrual methods of bad-debt provision
Unit: RMB
| Type | Ending balance | Beginning balance | ||||||||
| Book balance | Provision for bad debts | Book value | Book balance | Provision for bad debts | Book value | |||||
| Amount | Proportion | Amount | Proportion of provision | Amount | Proportion | Amount | Proportion of provision | |||
| Accounts receivable with single provision for bad debts | 84,187,120.77 | 2.96% | 84,187,120.77 | 100.00% | 90,294,270.19 | 3.47% | 90,294,270.19 | 100.00% | ||
| Including: | ||||||||||
| Accounts receivable with a single significant amount and single bad debt provision | 81,107,488.78 | 2.85% | 81,107,488.78 | 100.00% | 86,711,553.79 | 3.33% | 86,711,553.79 | 100.00% | ||
| Accounts receivable with not significant amount but with single provision for bad debts | 3,079,631.99 | 0.11% | 3,079,631.99 | 100.00% | 3,582,716.40 | 0.14% | 3,582,716.40 | 100.00% | ||
| Accounts receivable with provision for bad debts by portfolio | 2,761,599,620.19 | 97.04% | 87,344,034.70 | 3.16% | 2,674,255,585.49 | 2,510,316,428.36 | 96.53% | 78,542,550.80 | 3.13% | 2,431,773,877.56 |
| Including: | ||||||||||
| Provision for impairment of combined accounts receivable by aging | 2,761,599,620.19 | 97.04% | 87,344,034.70 | 3.16% | 2,674,255,585.49 | 2,510,316,428.36 | 96.53% | 78,542,550.80 | 3.13% | 2,431,773,877.56 |
| Total | 2,845,786,740.96 | 100.00% | 171,531,155.47 | 6.03% | 2,674,255,585.49 | 2,600,610,698.55 | 100.00% | 168,836,820.99 | 6.49% | 2,431,773,877.56 |
Description of bad-debt provisions on individual basis: Provision for impairment of individual accounts receivablewith material balance, and provision for impairment of individual accounts receivable with non-material balance
Unit: RMB
| Name | Beginning balance | Ending balance | ||||
| Book balance | Provision for bad debts | Book balance | Provision for bad debts | Proportion of provision | Reasons for provision | |
| Accounts receivable with a single significant amount and single bad debt provision | 86,711,553.79 | 86,711,553.79 | 81,107,488.78 | 81,107,488.78 | 100.00% | It is difficult to recover |
| Accounts receivable with not significant amount but with single provision for bad debts | 3,582,716.40 | 3,582,716.40 | 3,079,631.99 | 3,079,631.99 | 100.00% | It is difficult to recover |
| Total | 90,294,270.19 | 90,294,270.19 | 84,187,120.77 | 84,187,120.77 | ||
Description of bad-debt provision on combined basis: Provision for impairment of combined accounts receivable by aging
Unit: RMB
| Name | Ending balance | ||
| Book balance | Provision for bad debts | Proportion of provision | |
| Provision for impairment of combined accounts receivable by aging | 2,761,599,620.19 | 87,344,034.70 | 3.16% |
| Total | 2,761,599,620.19 | 87,344,034.70 | |
Explanation of the basis for determining the portfolio:
None.In case of provision for bad debts on accounts receivable based on the general model of expected credit loss:
□ Applicable ? Not applicable
(3) Provision for bad debts accrued, recovered or reversed in the current periodProvision for bad debts in the current period:
Unit: RMB
| Type | Beginning balance | Amount changed in the current period | Ending balance | |||
| Provision | Recover or reversal | Write-off | Others | |||
| Provision for impairment of accounts receivable | 168,836,820.99 | 5,638,039.01 | 2,448,102.37 | -495,602.16 | 171,531,155.47 | |
| Total | 168,836,820.99 | 5,638,039.01 | 2,448,102.37 | -495,602.16 | 171,531,155.47 | |
Of which the amount of provision for bad debts recovered or reversed in the current period is significant:
None.
(4) Accounts receivable actually written off in the current period
Unit: RMB
| Items | Amount written off |
| Accounts receivable actually written off | 2,448,102.37 |
Writing off of accounts receivables:
None.
(5) Accounts receivables with top five ending balances grouped by debtors, and contract assets
Unit: RMB
| Name of unit | Ending balance of accounts receivable | Ending balance of contract assets | Ending balance of accounts receivables and contract assets | Percentage in total ending balance of accounts receivables and contract assets | Ending balance of provision for impairment of accounts receivables and contract assets |
| No. 1 | 625,914,392.68 | 625,914,392.68 | 21.99% | 19,406,301.57 | |
| No. 2 | 65,080,405.66 | 65,080,405.66 | 2.29% | 65,080,405.66 | |
| No. 3 | 60,451,212.75 | 60,451,212.75 | 2.12% | 1,873,987.60 | |
| No. 4 | 46,087,486.43 | 46,087,486.43 | 1.62% | 1,428,712.08 | |
| No. 5 | 44,476,008.85 | 44,476,008.85 | 1.56% | 1,388,578.74 | |
| Total | 842,009,506.37 | 842,009,506.37 | 29.58% | 89,177,985.65 |
(6) Notes receivable actually written off in the current period
□ Applicable ? Not applicable
6. Contract assets
□ Applicable ? Not applicable
7. Receivables financing
(1) Classified presentation of receivables financing
Unit: RMB
| Items | Ending balance | Beginning balance |
| Bank acceptance instruments | 132,728,581.41 | 126,350,412.69 |
| Factoring accounts receivable | 135,849,185.07 | 111,968,012.71 |
| Notes receivables of supply chain | 33,582,098.27 | 40,202,216.82 |
| Total | 302,159,864.75 | 278,520,642.22 |
(2) Disclosure based on accrual methods of bad-debt provision
Unit: RMB
| Type | Ending balance | Beginning balance | ||||||||
| Book balance | Provision for bad debts | Book value | Book balance | Provision for bad debts | Book value | |||||
| Amount | Proportion | Amount | Proportion of provision | Amount | Proportion | Amount | Proportion of provision | |||
| Bad debt provision on individual basis | 166,310,679.68 | 54.26% | 166,310,679.68 | 166,552,629.51 | 59.04% | 166,552,629.51 | ||||
| Including: | ||||||||||
| Bank acceptance bill | 132,728,581.41 | 43.30% | 132,728,581.41 | 126,350,412.69 | 44.79% | 126,350,412.69 | ||||
| Notes receivables of supply chain | 33,582,098.27 | 10.96% | 33,582,098.27 | 40,202,216.82 | 14.25% | 40,202,216.82 | ||||
| Bad debt provision on combined basis | 140,195,237.43 | 45.74% | 4,346,052.36 | 3.10% | 135,849,185.07 | 115,550,064.71 | 40.96% | 3,582,052.00 | 3.10% | 111,968,012.71 |
| Including: | ||||||||||
| Factoring accounts receivable | 140,195,237.43 | 45.74% | 4,346,052.36 | 3.10% | 135,849,185.07 | 115,550,064.71 | 40.96% | 3,582,052.00 | 3.10% | 111,968,012.71 |
| Total | 306,505,917.11 | 100.00% | 4,346,052.36 | 1.42% | 302,159,864.75 | 282,102,694.22 | 100.00% | 3,582,052.00 | 1.27% | 278,520,642.22 |
Description of bad-debt provision on combined basis: Factoring accounts receivables
Unit: RMB
| Name | Ending balance | ||
| Book balance | Provision for bad debts | Proportion of provision | |
| Provision for impairment of factoring accounts receivable | 140,195,237.43 | 4,346,052.36 | 3.10% |
| Total | 140,195,237.43 | 4,346,052.36 | |
Explanation of the basis for determining the portfolio:
None.
Provision for bad debts based on the general model of expected credit loss
Unit: RMB
| Provision for bad debts | First stage | Second stage | Third stage | Total |
| Expected credit loss in the next 12 months | Expected credit loss for the entire duration (no credit impairment) | Expected credit loss for the entire duration (credit impairment occurred) | ||
| Balance as of January 1, 2024 | 3,582,052.00 | 3,582,052.00 | ||
| Balance as of January 1, 2024 in the current period | ||||
| Accrual in the current period | 764,000.36 | 764,000.36 | ||
| Balance as of June 30, 2024 | 4,346,052.36 | 4,346,052.36 |
Basis of phasing and percentage of provision for impairmentNone.Significant changes in the book balance of receivables financing with loss reserve changes occurred during thecurrent periodNone.
(3) Provision for bad debts accrued, recovered or reversed in the current period
Unit: RMB
| Type | Beginning balance | Amount changed in the current period | Ending balance | |||
| Provision | Recover or reversal | Transfer or write-off | Other changes | |||
| Provision for impairment of factoring accounts receivable | 3,582,052.00 | 764,000.36 | 4,346,052.36 | |||
| Total | 3,582,052.00 | 764,000.36 | 4,346,052.36 | |||
Of which the amount of provision for bad debts recovered or reversed in the current period is significant:
None.
(4) Receivables financing pledged by the Company at the end of the period
Unit: RMB
| Items | Pledged amount at the end of the period |
| Notes receivable | 2,901,642.16 |
| Total | 2,901,642.16 |
(5) Receivables financing endorsed or discounted by the Company at the end of the period and not due onbalance sheet date
Unit: RMB
| Items | Amount derecognized at the end of the period | Amount not derecognized at the end of the period |
| Discounted banker's acceptance bill | 397,382,094.28 | |
| Endorsed banker's acceptance bill | 424,759,570.81 | |
| Total | 822,141,665.09 |
(6) Receivables financing actually written off in the current period
None.
(7) Changes in increase/decrease in receivables financing in the current period and changes in fair valueNone.
(8) Other notes
None.
8. Other receivables
Unit: RMB
| Items | Ending balance | Beginning balance |
| Interest receivable | 0.00 | 0.00 |
| Dividends receivable | 0.00 | 0.00 |
| Other receivables | 36,971,780.83 | 36,524,343.36 |
| Total | 36,971,780.83 | 36,524,343.36 |
(1) Interest receivable
□ Applicable ? Not applicable
(2) Dividends receivable
□ Applicable ? Not applicable
(3) Other receivables
1) Classification of other receivables by nature of amount
Unit: RMB
| Nature of payment | Book balance at the end of the period | Book balance at the beginning of the period |
| Margin, deposit | 30,744,447.22 | 24,942,814.39 |
| Employee personal loan | 7,262,937.66 | 7,837,283.76 |
| Compensation | 2,217,210.33 | 2,217,210.33 |
| Others | 1,027,709.19 | 2,698,876.37 |
| Export rebate | 6,209,708.13 | 8,682,341.31 |
| Total | 47,462,012.53 | 46,378,526.16 |
2) Disclosure by aging
Unit: RMB
| Aging | Book balance at the end of the period | Book balance at the beginning of the period |
| Within 1 year (including 1 year) | 23,383,848.66 | 21,094,463.33 |
| 1-2 years | 7,038,402.38 | 8,282,956.38 |
| 2-3 years | 10,516,552.37 | 10,637,952.10 |
| Above 3 years | 6,523,209.12 | 6,363,154.35 |
| 3-4 years | 504,996.69 | 824,947.24 |
| 4-5 years | 2,489,960.27 | 3,683,926.82 |
| Above 5 years | 3,528,252.16 | 1,854,280.29 |
| Total | 47,462,012.53 | 46,378,526.16 |
3) Disclosure based on accrual methods of bad-debt provision
? Applicable □ Not applicable
Unit: RMB
| Type | Ending balance | Beginning balance | ||||||||
| Book balance | Provision for bad debts | Book value | Book balance | Provision for bad debts | Book value | |||||
| Amount | Proportion | Amount | Proportion of provision | Amount | Proportion | Amount | Proportion of provision | |||
| Bad debt provision on individual basis | 6,209,708.13 | 13.08% | 0.00 | 0.00% | 6,209,708.13 | 8,682,341.31 | 18.72% | 0.00 | 0.00% | 8,682,341.31 |
| Bad debt provision on combined basis | 41,252,304.40 | 86.92% | 10,490,231.70 | 25.43% | 30,762,072.70 | 37,696,184.85 | 81.28% | 9,854,182.76 | 26.14% | 27,842,002.09 |
| Total | 47,462,012.53 | 100.00% | 10,490,231.70 | 22.10% | 36,971,780.83 | 46,378,526.16 | 100.00% | 9,854,182.76 | 21.25% | 36,524,343.40 |
Description of bad debt provision on individual basis: Export rebate
Unit: RMB
| Name | Beginning balance | Ending balance | ||||
| Book balance | Provision for bad debts | Book balance | Provision for bad debts | Proportion of provision | Reasons for provision | |
| Export rebate | 8,682,341.31 | 0.00 | 6,209,708.13 | 0.00 | 0.00% | No loss is expected for export rebates |
| Total | 8,682,341.31 | 0.00 | 6,209,708.13 | 0.00 | ||
Description of bad-debt provision on combined basis: Provision for impairment of combined accounts receivableby credit risk features
Unit: RMB
| Name | Ending balance | ||
| Book balance | Provision for bad debts | Proportion of provision | |
| Accounts receivable on credit risk feature combination basis for bad debt provision | 41,252,304.40 | 10,490,231.70 | 25.43% |
| Total | 41,252,304.40 | 10,490,231.70 | |
Explanation of the basis for determining the portfolio:
None.Provision for bad debts based on the general model of expected credit loss:
Unit: RMB
| Provision for bad debts | First stage | Second stage | Third stage | Total |
| Expected credit loss in the next 12 months | Expected credit loss for the entire duration (no credit impairment) | Expected credit loss for the entire duration (credit impairment occurred) | ||
| Balance as of January 1, 2024 | 9,854,182.80 | 9,854,182.80 | ||
| Balance as of January 1, 2024 in the current period | ||||
| Accrual in the current period | 636,048.90 | 636,048.90 | ||
| Balance as of June 30, 2024 | 10,490,231.70 | 10,490,231.70 |
Basis of phasing and percentage of provision for impairmentNone.Changes in book balance with significant changes in loss reserves in the current period
□ Applicable ? Not applicable
4) Provision for bad debts accrued, recovered or reversed in the current period
Provision for bad debts in the current period:
Unit: RMB
| Type | Beginning balance | Amount changed in the current period | Ending balance | |||
| Provision | Recover or reversal | Transfer or write-off | Others | |||
| Provision for bad debts | 9,854,182.80 | 748,938.87 | -112,889.97 | 10,490,231.70 | ||
| Total | 9,854,182.80 | 748,938.87 | -112,889.97 | 10,490,231.70 | ||
None.Of which the amount of provision for bad debts recovered or reversed in the current period is significant:
None.
5) Other accounts receivable actually written off in the current period
None.
6) Other accounts receivable of the top five debtors in respect of the ending balances
Unit: RMB
| Name of unit | Nature of payment | Ending balance | Aging | Proportion to total ending balances of other receivables | Ending balance of provision for bad debts |
| No. 1 | Export rebate | 6,209,708.13 | Within 1 year | 13.08% | 0.00 |
| No. 2 | Plant rent deposit | 3,965,601.09 | 2-3 years | 8.36% | 1,189,680.33 |
| No. 3 | Deposits and bonds | 2,337,136.32 | Within 1 year, 2-3 years | 4.92% | 575,321.20 |
| No. 4 | Compensation | 2,217,210.33 | 1-2 years | 4.67% | 221,721.03 |
| No. 5 | Deposits and bonds | 1,520,178.00 | Above 5 years | 3.20% | 1,520,178.00 |
| Total | 16,249,833.87 | 34.23% | 3,506,900.56 |
7) Included in other accounts receivables due to centralized management of fundsNone.
9. Prepayments
(1) List of prepayments by aging
Unit: RMB
| Aging | Ending balance | Beginning balance | ||
| Amount | Proportion | Amount | Proportion | |
| Within 1 year | 43,795,294.88 | 85.15% | 41,217,371.39 | 93.49% |
| 1-2 years | 6,422,871.68 | 12.49% | 2,649,254.74 | 6.01% |
| 2-3 years | 1,058,674.14 | 2.06% | 173,711.61 | 0.39% |
| Above 3 years | 154,049.09 | 0.30% | 47,730.79 | 0.11% |
| Total | 51,430,889.79 | 44,088,068.53 | ||
Cause for late settlement of prepayments aging more than 1 year with significant amount:
None.
(2) Accounts prepaid of the top five prepaying entities for ending balance
The total amount of the Company's top five prepayments at the end of the reporting period grouped by debtorsis RMB 14,447,189.50, accounting for 28.09% of the total year-end balance of prepayments.Other description:
None.
10. Inventory
Whether the Company is required to comply with the disclosure requirements of the real estate industryNo
(1) Inventory classification
Unit: RMB
| Items | Ending balance | Beginning balance | ||||
| Book balance | Provision for decline in value of inventories or provision for impairment of contract performance cost | Book value | Book balance | Provision for decline in value of inventories or provision for impairment of contract performance cost | Book value | |
| Purchase of raw materials | 1,054,025,793.10 | 86,179,485.30 | 967,846,307.80 | 883,406,451.52 | 84,959,315.65 | 798,447,135.87 |
| Goods in process | 140,499,323.53 | 140,499,323.53 | 187,129,741.78 | 187,129,741.78 | ||
| Goods on hand | 541,745,665.23 | 22,067,058.65 | 519,678,606.58 | 477,050,469.57 | 22,099,671.18 | 454,950,798.39 |
| Goods shipped in transit | 132,913,533.76 | 4,577,489.24 | 128,336,044.52 | 118,434,872.84 | 4,566,699.62 | 113,868,173.22 |
| Self-manufactured semi-finished | 82,189,918.47 | 6,593,601.69 | 75,596,316.78 | 86,682,330.39 | 4,046,746.35 | 82,635,584.04 |
| product | ||||||
| Materials entrusted for processing | 14,803,522.17 | 14,803,522.17 | 16,730,489.94 | 16,730,489.94 | ||
| Low-value consumables | 589,513.35 | 589,513.35 | 54,792.27 | 54,792.27 | ||
| Total | 1,966,767,269.61 | 119,417,634.88 | 1,847,349,634.73 | 1,769,489,148.31 | 115,672,432.80 | 1,653,816,715.51 |
(2) Data resources recognized as inventory
None.
(3) Provision for impairment on inventories and on contract performance costs
Unit: RMB
| Items | Beginning balance | Increase in the current period | Decrease amount in the current period | Ending balance | ||
| Provision | Others | Reversal or write-off | Others | |||
| Purchase of raw materials | 84,959,315.65 | 13,140,758.10 | -155,032.31 | 11,765,556.14 | 86,179,485.30 | |
| Goods on hand | 22,099,671.18 | 4,892,313.04 | -716.94 | 4,924,208.63 | 22,067,058.65 | |
| Self-manufactured semi-finished product | 4,046,746.35 | 2,954,730.60 | -2,673.94 | 405,201.32 | 6,593,601.69 | |
| Goods shipped in transit | 4,566,699.62 | 103,172.89 | 92,383.27 | 4,577,489.24 | ||
| Total | 115,672,432.80 | 21,090,974.63 | -158,423.19 | 17,187,349.36 | 119,417,634.88 | |
Provision for impairment on inventories on combined basisNone.
Accrual criteria for provision for impairment on inventories on combined basisNone.
(4) Closing balance of inventories with capitalized amount of borrowing costsNone.
(5) Amortized amount of contract performance cost in the current period
None.
11. Assets held for sale
None.
12. Non-current assets due within one year
□ Applicable ? Not applicable
13. Other current assets
Unit: RMB
| Items | Ending balance | Beginning balance |
| VAT to be deducted | 214,291,642.32 | 201,581,758.39 |
| Other prepaid taxes | 5,252,767.00 | 6,944,576.68 |
| Deferred expense | 146,738.42 | 4,686,592.42 |
| Total | 219,691,147.74 | 213,212,927.49 |
Other description:
None.
14. Debt investment
□ Applicable ? Not applicable
15. Other debt investment
□ Applicable ? Not applicable
Other description:
None.
16. Other equity instrument investments
Unit: RMB
| Project name | Beginning balance | Gains credited to other comprehensive income in the current period | Losses credited to other comprehensive income in the current period | Cumulative gain credited to other comprehensive income at the end of current period | Cumulative loss credited to other comprehensive income at the end of current period | Dividend incomes recognized in the current period | Ending balance | Cause for designated measurement at fair value and for changes crediting to other comprehensive income |
| Suzhou Legendsem | 20,000,000.00 | 20,000,000.00 | Strategic investment |
| i Technology Co., Ltd. | ||||||||
| Suzhou SEEEx Technology Co., Ltd. | 21,192,950.00 | 21,192,950.00 | Strategic investment | |||||
| Total | 41,192,950.00 | 41,192,950.00 |
Other description:
None.
17. Long-term receivables
None.
18. Long-term equity investment
Unit: RMB
| Investee | Beginning balance (book value) | Opening balance of provision for impairment | Changes in increase/decrease in the current period | Ending balance (book value) | Ending balance of provision for impairment | |||||||
| Additional investment | Decrease in investment | Profits and losses on investment recognized under equity method | Adjustment to other comprehensive income | Other changes in equity | Declaration of distribution for cash dividends or profits | Provision for impairment | Others | |||||
| I. Joint venture | ||||||||||||
| II. Associated enterprises | ||||||||||||
| Tai'an Yuchengxin Power Technology Co., Ltd. | 9,764,719.19 | 9,764,719.19 | ||||||||||
| Shenzhen Daka Optoelectronics Co., Ltd. | 5,839,292.85 | -9,317.40 | 5,829,975.45 | |||||||||
| Shanghai Yidong Power Technology Co., Ltd. | 9,722,015.21 | 9,722,015.21 | ||||||||||
| Dongguan Jujin Plastic Technology Co., Ltd. | 22,186,871.24 | -124,218.65 | 22,062,652.59 | |||||||||
| Subtotal | 37,748,179.30 | 9,764,719.19 | -133,536.05 | 37,614,643.25 | 9,764,719.19 | |||||||
| Total | 37,748,179.30 | 9,764,719.19 | -133,536.05 | 37,614,643.25 | 9,764,719.19 | |||||||
Determination of net amount of recoverable amount at fair value less disposal expense
□ Applicable ? Not applicable
Determination of net amount of recoverable amount at present value of estimated future cash flows
□ Applicable ? Not applicable
Cause for significant discrepancy between abovementioned information and information used in the previous year'simpairment test or external informationNone.Cause for significant discrepancy between information used in the previous year's impairment test of the Companyand actual information in current year
None.Other descriptionNone.
19. Other non-current financial assets
None.
20. Investment property
(1) Investment property with cost measurement model
? Applicable □ Not applicable
Unit: RMB
| Items | Houses and buildings | Land usage right | Construction in progress | Total |
| I. Original book value | ||||
| 1. Beginning balance | 119,070,562.06 | 119,070,562.06 | ||
| 2. Increase in the current period | ||||
| (1) Outsourcing | ||||
| (2) Transfer in of inventory, fixed assets and construction in progress | ||||
| (3) Increment from consolidation | ||||
| 3. Decrease in the current period | ||||
| (1) Disposal | ||||
| (2) Other transfer out | ||||
| 4. Ending balance | 119,070,562.06 | 119,070,562.06 | ||
| II. Accumulated depreciation and accumulated amortization | ||||
| 1. Beginning balance | 15,666,159.21 | 15,666,159.21 | ||
| 2. Increase in the current period | 1,419,187.51 | 1,419,187.51 | ||
| (1) Provision or amortization | 1,419,187.51 | 1,419,187.51 | ||
| 3. Decrease in the current period | ||||
| (1) Disposal | ||||
| (2) Other transfer out | ||||
| 4. Ending balance | 17,085,346.72 | 17,085,346.72 | ||
| III. Provision for impairment | ||||
| 1. Beginning balance | ||||
| 2. Increase in the current period | ||||
| (1) Accrual | ||||
| 3. Decrease in the current period | ||||
| (1) Disposal | ||||
| (2) Other transfer out | ||||
| 4. Ending balance | ||||
| IV. Book value | ||||
| 1. Ending book value | 101,985,215.34 | 101,985,215.34 | ||
| 2. Beginning book value | 103,404,402.85 | 103,404,402.85 |
Determination of net amount of recoverable amount at fair value less disposal expense
□ Applicable ? Not applicable
Determination of net amount of recoverable amount at present value of estimated future cash flows
□ Applicable ? Not applicable
Cause for significant discrepancy between abovementioned information and information used in the previous year'simpairment test or external informationNone.Cause for significant discrepancy between information used in the previous year's impairment test of the Companyand actual information in current yearNone.Other description:
None.
(2) Investment property with fair value measurement model
□ Applicable ? Not applicable
(3) Transfer to investment property and measurement at fair value
□ Applicable ? Not applicable
(4) Investment property without property certificate of title
□ Applicable ? Not applicable
21. Fixed assets
Unit: RMB
| Items | Ending balance | Beginning balance |
| Fixed assets | 2,327,328,836.76 | 2,102,862,886.72 |
| Total | 2,327,328,836.76 | 2,102,862,886.72 |
(1) Situation about fixed assets
Unit: RMB
| Items | Houses and buildings | Machinery and equipment | Transportation equipment | Electronics and other equipment | Total |
| I. Original book value: | |||||
| 1. Beginning balance | 1,345,250,527.85 | 1,372,182,154.73 | 3,590,498.65 | 73,330,922.05 | 2,794,354,103.28 |
| 2. Increase in the current period | 185,857,016.69 | 142,780,472.69 | 552,687.21 | 5,939,439.52 | 335,129,616.11 |
| (1) Purchase | 146,132.18 | 106,958,010.37 | 552,434.98 | 5,923,801.01 | 113,580,378.54 |
| (2) Transfer into construction in progress | 185,442,975.97 | 35,636,017.71 | 221,078,993.68 | ||
| (3) Increment from consolidation | |||||
| (4) Impact of exchange rate changes | 267,908.54 | 186,444.61 | 252.23 | 15,638.51 | 470,243.89 |
| 3. Decrease in the current period | 3,138,477.24 | 31,595,665.84 | 70,540.59 | 1,083,655.08 | 35,888,338.75 |
| (1) Disposal or scrapping | 19,290,970.04 | 569,620.16 | 19,860,590.20 | ||
| (2) Impact of exchange rate changes | 3,138,477.24 | 12,304,695.80 | 70,540.59 | 514,034.92 | 16,027,748.55 |
| 4. Ending balance | 1,527,969,067.30 | 1,483,366,961.58 | 4,072,645.27 | 78,186,706.49 | 3,093,595,380.64 |
| II. Accumulated depreciation |
| 1. Beginning balance | 175,071,877.29 | 474,301,808.15 | 2,620,340.89 | 39,497,190.23 | 691,491,216.56 |
| 2. Increase in the current period | 16,671,881.13 | 69,495,312.32 | 260,951.61 | 5,241,762.95 | 91,669,908.01 |
| (1) Accrual | 16,639,357.40 | 69,495,312.32 | 260,718.00 | 5,236,252.75 | 91,631,640.47 |
| (2) Impact of exchange rate changes | 32,523.73 | 233.61 | 5,510.20 | 38,267.54 | |
| 3. Decrease in the current period | 231,719.27 | 15,974,235.35 | 19,426.20 | 669,199.87 | 16,894,580.69 |
| (1) Disposal or scrapping | 13,861,520.71 | 511,181.69 | 14,372,702.40 | ||
| (2) Impact of exchange rate changes | 231,719.27 | 2,112,714.64 | 19,426.20 | 158,018.18 | 2,521,878.29 |
| 4. Ending balance | 191,512,039.15 | 527,822,885.12 | 2,861,866.30 | 44,069,753.31 | 766,266,543.88 |
| III. Provision for impairment | |||||
| 1. Beginning balance | |||||
| 2. Increase in the current period | |||||
| (1) Accrual | |||||
| 3. Decrease in the current period | |||||
| (1) Disposal or scrapping | |||||
| 4. Ending balance | |||||
| IV. Book value | |||||
| 1. Ending book value | 1,336,457,028.15 | 955,544,076.46 | 1,210,778.97 | 34,116,953.18 | 2,327,328,836.76 |
| 2. Beginning book value | 1,170,178,650.56 | 897,880,346.58 | 970,157.76 | 33,833,731.82 | 2,102,862,886.72 |
(2) Temporary idle fixed assets
□ Applicable ? Not applicable
(3) Fixed assets leased out through operating lease
□ Applicable ? Not applicable
(4) Fixed assets without certificate of title
□ Applicable ? Not applicable
(5) Impairment test of fixed assets
□ Applicable ? Not applicable
(6) Disposal of fixed assets
□ Applicable ? Not applicable
22. Construction in progress
Unit: RMB
| Items | Ending balance | Beginning balance |
| Construction in progress | 527,629,047.04 | 568,107,950.65 |
| Total | 527,629,047.04 | 568,107,950.65 |
(1) Construction in progress
Unit: RMB
| Items | Ending balance | Beginning balance | ||||
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
| Test equipment to be commissioned | 131,735,114.43 | 131,735,114.43 | 162,683,370.16 | 162,683,370.16 | ||
| Decoration of Huizhou Plant | 183,486.24 | 183,486.24 | 183,486.24 | 183,486.24 | ||
| Huizhou YAKO Automation Plant | 172,369,153.77 | 172,369,153.77 | 112,992,616.66 | 112,992,616.66 | ||
| Sporadic items | 1,064,980.66 | 1,064,980.66 | 845,983.99 | 845,983.99 | ||
| Nantong Lithium Battery Industrial Park | 162,639,894.21 | 162,639,894.21 | 244,737,333.79 | 244,737,333.79 | ||
| Ningbo Topband Industrial Park | 18,546,992.00 | 18,546,992.00 | 16,898,437.26 | 16,898,437.26 | ||
| Qingdao Plant | 1,835,469.17 | 1,835,469.17 | 1,835,469.17 | 1,835,469.17 | ||
| Topband Huizhou No. 2 Industrial Park | 37,559,181.34 | 37,559,181.34 | 27,708,391.40 | 27,708,391.40 | ||
| Topband (India) Plant | 0.00 | 0.00 | 68,648.97 | 68,648.97 | ||
| Vietnam Dong Nai Decoration | 1,694,775.22 | 1,694,775.22 | 154,213.01 | 154,213.01 | ||
| Total | 527,629,047.04 | 527,629,047.04 | 568,107,950.65 | 568,107,950.65 | ||
(2) Changes in the important construction in progress in the current period
Unit: RMB
| Project name | Budget | Beginning balance | Increase in the current period | Amount of transfer into fixed assets this period | Other decrements this period | Ending balance | Proportion of accumulated project investment in budget | Project progress | Accumulated amount of interest capitalization | Including: interest capitalization amount in the current period | Interest capitalization rate in the current period | Source of capitals |
| Ningbo Topband Industrial Park | 465,704,300 | 16,898,437.26 | 4,519,456.04 | 502,876.29 | 2,368,025.01 | 18,546,992.00 | 92.75% | 93.00% | 6,883,762.50 | Raised funds | ||
| Huizhou YAKO Automation Plant | 370,000,000 | 112,992,616.66 | 64,477,498.50 | 0.00 | 5,100,961.39 | 172,369,153.77 | 80.63% | 81.00% | 2,995,081.38 | 2,457,373.25 | 3.90% | Others |
| Topband Huizhou No. 2 Industrial Park | 190,000,000 | 27,708,391.40 | 11,053,381.02 | 225,105.24 | 977,485.84 | 37,559,181.34 | 20.40% | 20.00% | Others | |||
| Nantong Lithium Battery Industrial Park | 800,000,000 | 244,737,333.79 | 102,617,554.86 | 184,714,994.44 | 0.00 | 162,639,894.21 | 43.42% | 45.00% | Raised funds | |||
| Total | 1,825,704,300 | 402,336,779.11 | 182,667,890.42 | 185,442,975.97 | 8,446,472.24 | 391,115,221.32 | 9,878,843.88 | 2,457,373.25 |
(3) Provision for impairment of construction in progress in the current period
□ Applicable ? Not applicable
(4) Impairment test of construction in progress
□ Applicable ? Not applicable
(5) Project material
□ Applicable ? Not applicable
23. Productive biological assets
(1) Productive biological assets with cost measurement model
□ Applicable ? Not applicable
(2) Impairment test of productive biological assets with cost measurement model
□ Applicable ? Not applicable
(3) Productive biological assets with fair value measurement model
□ Applicable ? Not applicable
24. Oil and gas assets
□ Applicable ? Not applicable
25. Right-of-use assets
(1) Right-of-use assets
Unit: RMB
| Items | Houses and buildings | Land | Total |
| I. Original book value | |||
| 1. Beginning balance | 180,033,528.88 | 5,875,457.96 | 185,908,986.84 |
| 2. Increase in the current period | 18,672,401.76 | 18,672,401.76 |
| (1) Lease contract in the current period | 18,431,531.86 | 18,431,531.86 | |
| (2) Changes to contract | 240,869.90 | 240,869.90 | |
| (3) Exchange rate changes | |||
| 3. Decrease in the current period | 7,835,237.11 | 7,835,237.11 | |
| (1) Contracts with lease terminated in the current period | 1,341,819.23 | 1,341,819.23 | |
| (2) Changes to contract | 2,762,788.36 | 2,762,788.36 | |
| (3) Exchange rate changes | 3,730,629.52 | 3,730,629.52 | |
| 4. Ending balance | 190,870,693.53 | 5,875,457.96 | 196,746,151.49 |
| II. Accumulated depreciation | |||
| 1. Beginning balance | 84,290,633.58 | 171,367.52 | 84,462,001.10 |
| 2. Increase in the current period | 23,173,800.79 | 146,886.45 | 23,320,687.24 |
| (1) Accrual | 23,173,800.79 | 146,886.45 | 23,320,687.24 |
| (2) Changes to contract | |||
| (3) Exchange rate changes | |||
| 3. Decrease in the current period | 2,245,448.24 | 2,245,448.24 | |
| (1) Disposal | 1,001,638.36 | 1,001,638.36 | |
| (2) Changes to contract | |||
| (3) Exchange rate changes | 1,243,809.88 | 1,243,809.88 | |
| 4. Ending balance | 105,218,986.13 | 318,253.97 | 105,537,240.10 |
| III. Provision for impairment | |||
| 1. Beginning balance | |||
| 2. Increase in the current period | |||
| (1) Accrual | |||
| 3. Decrease in the current period | |||
| (1) Disposal | |||
| 4. Ending balance | |||
| IV. Book value | |||
| 1. Ending book value | 85,651,707.40 | 5,557,203.99 | 91,208,911.39 |
| 2. Beginning book value | 95,742,895.30 | 5,704,090.44 | 101,446,985.74 |
(2) Impairment test of right-of-use assets
□ Applicable ? Not applicable
Other description:
None.
26. Intangible assets
(1) Situation of intangible assets
Unit: RMB
| Items | Land usage right | Patent right | Non-patented technology | Software | Trademark | Total |
| I. Original book value | ||||||
| 1. Beginning balance | 391,220,157.09 | 435,321.58 | 599,800,783.26 | 29,281,753.38 | 9,728,450.00 | 1,030,466,465.31 |
| 2. Increase in the current period | 118,140,301.90 | 1,483,823.58 | 119,624,125.48 | |||
| (1) Purchase | 1,483,823.58 | 1,483,823.58 | ||||
| (2) Internal R&D | 118,140,301.90 | 118,140,301.90 | ||||
| (3) Increment from consolidation | ||||||
| 3. Decrease in the current period | 1,848,511.01 | 41,207.20 | 1,889,718.21 | |||
| (1) Disposal | ||||||
| (2) Decrease from exchange rate changes | 1,848,511.01 | 41,207.20 | 1,889,718.21 | |||
| 4. Ending balance | 389,371,646.08 | 435,321.58 | 717,941,085.16 | 30,724,369.76 | 9,728,450.00 | 1,148,200,872.58 |
| II. Accumulated amortization | ||||||
| 1. Beginning balance | 29,135,751.55 | 435,321.58 | 362,526,912.03 | 25,091,697.68 | 6,165,886.52 | 423,355,569.36 |
| 2. Increase in the current period | 3,462,946.78 | 68,137,406.57 | 1,278,850.13 | 72,879,203.48 | ||
| (1) Accrual | 3,462,946.78 | 68,137,406.57 | 1,278,850.13 | 72,879,203.48 | ||
| 3. Decrease in the current period | 176,082.19 | 37,774.76 | 213,856.95 | |||
| (1) Disposal | ||||||
| (2) Decrease from exchange rate changes | 176,082.19 | 37,774.76 | 213,856.95 | |||
| 4. Ending balance | 32,422,616.14 | 435,321.58 | 430,664,318.60 | 26,332,773.05 | 6,165,886.52 | 496,020,915.89 |
| III. Provision for impairment | ||||||
| 1. Beginning balance | ||||||
| 2. Increase in the current period | ||||||
| (1) Accrual | ||||||
| 3. Decrease in the current period | ||||||
| (1) Disposal |
| 4. Ending balance | ||||||
| IV. Book value | ||||||
| 1. Ending book value | 356,949,029.94 | 287,276,766.56 | 4,391,596.71 | 3,562,563.48 | 652,179,956.69 | |
| 2. Beginning book value | 362,084,405.54 | 237,273,871.23 | 4,190,055.70 | 3,562,563.48 | 607,110,895.95 |
The intangible assets from internal development of the Company at the end of the current period accounts for 44.05%of the intangible asset balance
(2) Data resources recognized as intangible asset
□ Applicable ? Not applicable
(3) Land-use-right without certificate of title
None.
(4) Impairment test of intangible assets
□ Applicable ? Not applicable
27. Goodwill
(1) Original book value of goodwill
Unit: RMB
| Name of investees or items forming goodwill | Beginning balance | Increase in the current period | Decrement in the current period | Ending balance | ||
| Disposal formed by consolidation | Disposal | |||||
| Shenzhen YAKO Automation Technology Co., Ltd. | 107,314,446.71 | 107,314,446.71 | ||||
| Shenzhen Allied Control System Co., Ltd. | 53,768,699.68 | 53,768,699.68 | ||||
| Shenzhen Meanstone Intelligent Technology Co., Ltd. | 3,006,892.59 | 3,006,892.59 | ||||
| Hangzhou Zhidong Motor Technology Co., Ltd. | 1,322,921.77 | 1,322,921.77 | ||||
| Taixing Ninghui Lithium Battery Co., Ltd. | 1,962,891.12 | 1,962,891.12 | ||||
| Shenzhen Tengyi Industrial Co., Ltd. | 131,783.24 | 131,783.24 | ||||
| Total | 167,507,635.11 | 167,507,635.11 | ||||
(2) Impairment of goodwill
Unit: RMB
| Name of investees or items forming goodwill | Beginning balance | Increase in the current period | Decrement in the current period | Ending balance | ||
| Provision | Disposal | |||||
| Shenzhen Allied Control System Co., Ltd. | 53,768,699.68 | 53,768,699.68 | ||||
| Shenzhen Meanstone Intelligent Technology Co., Ltd. | 3,006,892.59 | 3,006,892.59 | ||||
| Total | 56,775,592.27 | 56,775,592.27 | ||||
(3) Information about the asset group or portfolio of goodwill
None.
(4) Specific method for determining collectible amounts
Determination of net amount of recoverable amount at fair value less disposal expense
□ Applicable ? Not applicable
Determination of net amount of recoverable amount at present value of estimated future cash flows
□ Applicable ? Not applicable
Cause for significant discrepancy between abovementioned information and information used in the previous year'simpairment test or external informationNone.Cause for significant discrepancy between information used in the previous year's impairment test of the Companyand actual information in current yearNone.
(5) Fulfillment of performance commitment and corresponding goodwill impairmentThere was a performance commitment when goodwill was established, and the reporting period or the periodpreceding the reporting period is within the performance commitment period
□ Applicable ? Not applicable
Other description
None.
28. Long-term deferred expenses
Unit: RMB
| Items | Beginning balance | Increase in the current period | Amortization in the current period | Other reduced amount | Ending balance |
| Renovation cost | 182,289,438.61 | 17,446,014.88 | 33,497,863.02 | 3,111,393.84 | 163,126,196.63 |
| Others | 514,969.49 | 120,353.98 | 150,177.04 | 485,146.43 | |
| Total | 182,804,408.10 | 17,566,368.86 | 33,648,040.06 | 3,111,393.84 | 163,611,343.06 |
Other descriptionNone.
29. Deferred income tax assets/deferred income tax liabilities
(1) Non-offset deferred tax assets
Unit: RMB
| Items | Ending balance | Beginning balance | ||
| Deductible temporary differences | Deferred tax assets | Deductible temporary differences | Deferred tax assets | |
| Plus: Provision for impairment of assets | 308,623,316.62 | 49,470,431.03 | 294,545,474.56 | 46,678,454.85 |
| Deductible loss | 465,839,128.33 | 77,514,523.72 | 390,699,314.09 | 65,486,472.23 |
| Amortization of intangible assets | 154,693,580.73 | 23,204,037.11 | 133,446,425.92 | 20,016,963.88 |
| Deferred income | 9,301,017.56 | 1,638,005.03 | 11,071,292.42 | 1,881,581.86 |
| Lease liabilities | 98,420,478.96 | 17,108,528.02 | 107,881,215.35 | 20,976,523.71 |
| Total | 1,036,877,522.20 | 168,935,524.91 | 937,643,722.34 | 155,039,996.53 |
(2) Deferred tax liabilities without offset
Unit: RMB
| Items | Ending balance | Beginning balance | ||
| Taxable temporary difference | Deferred tax liabilities | Taxable temporary difference | Deferred tax liabilities | |
| Valuation and appreciation of assets of business consolidation under different control | 190,248.74 | 28,537.31 | 412,730.28 | 61,909.54 |
| Book-tax difference of fixed assets depreciation | 69,682,079.01 | 14,235,548.46 | 71,278,660.11 | 14,299,191.58 |
| Book-tax difference of rental income | 6,570,083.32 | 1,642,520.83 | 6,120,608.60 | 1,530,152.15 |
| Changes in fair value of tradable financial assets | 243,585,487.17 | 40,842,306.07 | 248,096,517.73 | 41,833,063.71 |
| Right-of-use assets | 92,493,476.58 | 16,357,054.47 | 102,290,793.51 | 20,006,539.83 |
| Total | 412,521,374.82 | 73,105,967.14 | 428,199,310.23 | 77,730,856.81 |
(3) Deferred tax assets or liabilities listed by net amount after offset
Unit: RMB
| Items | Amount of offset between deferred tax assets and liabilities at the end of the period | Ending balance of deferred tax assets or liabilities after offset | Amount of mutual offset between deferred tax assets and liabilities at the beginning of the period | Beginning balance of deferred tax assets or liabilities after offset |
| Deferred tax assets | 168,935,524.91 | 155,039,996.53 | ||
| Deferred tax liabilities | 73,105,967.14 | 77,730,856.81 |
(4) Details of unrecognized deferred tax assets
Unit: RMB
| Items | Ending balance | Beginning balance |
| Deductible temporary differences | 3,673,067.23 | 13,441,041.61 |
| Deductible loss | 208,169,615.75 | 170,793,360.18 |
| Total | 211,842,682.98 | 184,234,401.79 |
(5) Deductible loss of unrecognized deferred tax assets will mature in the following years
Unit: RMB
| Year | Ending amount | Beginning amount | Remarks |
| 2024 | 796.72 | 796.72 | |
| 2025 | 2,046,917.10 | 2,106,518.93 | |
| 2026 | 13,323,172.03 | 14,899,970.42 | |
| 2027 | 18,850,821.86 | 26,254,597.91 | |
| 2028 | 33,175,698.37 | 27,003,257.68 | |
| 2019 and later | 7,869,309.39 | ||
| No time limit | 132,902,900.28 | 100,528,218.52 | |
| Total | 208,169,615.75 | 170,793,360.18 |
Other descriptionNote: The deductible losses of unrecognized deferred tax assets with no maturity period are recoverable losses ofoverseas subsidiaries, and there are no local policy requirements for deductible periods.
30. Other non-current assets
Unit: RMB
| Items | Ending balance | Beginning balance | ||||
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
| Prepaid long- | 196,364,678.33 | 196,364,678.33 | 120,187,135.05 | 120,187,135.05 | ||
| term assets | ||||||
| Total | 196,364,678.33 | 196,364,678.33 | 120,187,135.05 | 120,187,135.05 |
Other description:
None.
31. Assets with limited ownership or use right
Unit: RMB
| Items | End of period | Beginning of period | ||||||
| Book balance | Book value | Type of restriction | Restriction situation | Book balance | Book value | Type of restriction | Restriction situation | |
| Monetary capital | 28,066,087.56 | 28,066,087.56 | Bonds, frozen by court | Bonds, amount of frozen property | 39,587,800.49 | 39,587,800.49 | Bonds, frozen by court, financial management in subscription period | Bonds, financial management money in subscription period, amount of frozen property |
| Fixed assets | 120,856,655.54 | 118,464,700.90 | Loan in mortgage | Pledge borrowings with buildings | 120,856,655.54 | 119,899,873.68 | Loan in mortgage | Pledge borrowings with buildings |
| Intangible assets | 61,302,043.62 | 58,879,881.53 | Loan in mortgage | Pledge borrowings with land use right | 61,302,043.62 | 59,492,901.97 | Loan in mortgage | Pledge borrowings with land use right |
| Construction in progress | 172,369,153.77 | 172,369,153.77 | Loan in mortgage | Pledge borrowings with construction in progress | 112,992,616.66 | 112,992,616.66 | Loan in mortgage | Pledge borrowings with construction in progress |
| Total | 382,593,940.49 | 377,779,823.76 | 334,739,116.31 | 331,973,192.80 | ||||
Other description:
None.
32. Short-term loans
(1) Classification of short-term loans
Unit: RMB
| Items | Ending balance | Beginning balance |
| Credit loan | 127,061,000.00 | 218,148,750.00 |
| Letter of credit | 200,000,000.00 | 60,000,000.00 |
| Outstanding discounted bills | 1,337,035.22 | 1,200,000.00 |
| Total | 328,398,035.22 | 279,348,750.00 |
Classification of short-term loans:
None.
(2) Overdue short-term loans
None.
33. Tradable financial liabilities
None.
34. Derivative financial liabilities
None.
35. Notes payable
Unit: RMB
| Category | Ending balance | Beginning balance |
| Bank acceptance bill | 1,462,800,767.21 | 927,833,178.70 |
| Total | 1,462,800,767.21 | 927,833,178.70 |
The total amount of notes payable due but unpaid at the end of the current period is RMB 0.00.
36. Accounts payable
(1) Accounts payable listed
Unit: RMB
| Items | Ending balance | Beginning balance |
| Within 1 year | 2,059,358,056.75 | 1,953,706,413.01 |
| 1-2 years | 1,615,622.31 | 2,139,042.19 |
| 2-3 years | 445,650.16 | 598,185.50 |
| 3 years and above | 1,626,526.20 | 1,182,755.64 |
| Total | 2,063,045,855.42 | 1,957,626,396.34 |
(2) Significant accounts payable aged over 1 year or overdue
None.
37. Other accounts payable
Unit: RMB
| Items | Ending balance | Beginning balance |
| Interest payable | 0.00 | 0.00 |
| Dividends payable | 0.00 | 0.00 |
| Other account payable | 268,554,442.45 | 151,341,029.40 |
| Total | 268,554,442.45 | 151,341,029.40 |
(1) Interest payable
None.
(2) Dividends payable
None.
(3) Other payables
1) Other payables listed by fund nature
Unit: RMB
| Items | Ending balance | Beginning balance |
| Equity acquisition payments payable | 115,547,600.00 | |
| Long-term assets | 63,216,848.21 | 60,945,718.78 |
| Expenses | 43,194,219.04 | 23,067,327.79 |
| Current accounts | 30,686,290.11 | 37,115,852.17 |
| Margin, deposit | 8,479,699.64 | 9,559,259.36 |
| Others | 7,429,785.45 | 20,308,975.30 |
| Restricted stock repurchase obligations | 0.00 | 343,896.00 |
| Total | 268,554,442.45 | 151,341,029.40 |
2) Significant other accounts payable aged over 1 year or overdue
None.
38. Advances received
(1) Advances received listed
Unit: RMB
| Items | Ending balance | Beginning balance |
| Within 1 year (inclusive) | 3,527,349.78 | 2,808,227.54 |
| Total | 3,527,349.78 | 2,808,227.54 |
(2) Significant advances received aged over 1 year or overdue
None.
39. Contract liabilities
Unit: RMB
| Items | Ending balance | Beginning balance |
| Advances on sales | 172,851,052.12 | 168,681,571.89 |
| Total | 172,851,052.12 | 168,681,571.89 |
Significant contract liabilities aged over 1 yearNone.Amount of and reasons for significant changes in book value during the reporting periodNone.
40. Employee compensation payable
(1) Presentation of employee pay payable
Unit: RMB
| Items | Beginning balance | Increase in the current period | Decrement in the current period | Ending balance |
| I. Short-term compensation | 243,115,049.48 | 974,036,790.28 | 1,048,317,964.91 | 168,833,874.85 |
| II. Post-employment benefits - defined contribution plan | 152,733.65 | 52,659,053.95 | 52,091,211.56 | 720,576.04 |
| Total | 243,267,783.13 | 1,026,695,844.23 | 1,100,409,176.47 | 169,554,450.89 |
(2) Reporting of short-term remuneration
Unit: RMB
| Items | Beginning balance | Increase in the current period | Decrement in the current period | Ending balance |
| 1. Wages, bonuses, allowances | 238,419,554.35 | 932,079,837.31 | 1,005,819,179.88 | 164,680,211.78 |
| and subsidies | ||||
| 2. Employee benefits | 112,922.58 | 16,269,134.85 | 16,039,049.87 | 343,007.56 |
| 3. Social insurance expense | 1,513,581.33 | 13,211,432.46 | 14,250,091.66 | 474,922.13 |
| Including: medical insurance premiums | 1,509,551.71 | 10,919,422.80 | 11,958,065.00 | 470,909.51 |
| Industrial injury insurance expense | 4,029.62 | 984,851.38 | 984,868.38 | 4,012.62 |
| Maternity insurance expense | 0.00 | 1,307,158.28 | 1,307,158.28 | 0.00 |
| 4. Housing provident fund | 0.00 | 11,676,496.67 | 11,676,496.67 | 0.00 |
| 5. Trade union funds and staff education funds | 489.28 | 279,492.05 | 279,442.23 | 539.10 |
| 6. Others | 3,068,501.94 | 520,396.94 | 253,704.60 | 3,335,194.28 |
| Total | 243,115,049.48 | 974,036,790.28 | 1,048,317,964.91 | 168,833,874.85 |
(3) List of defined contribution plan
Unit: RMB
| Items | Beginning balance | Increase in the current period | Decrement in the current period | Ending balance |
| 1. Basic endowment insurance | 146,223.44 | 50,795,181.00 | 50,235,772.51 | 705,631.93 |
| 2. Unemployment insurance expense | 6,510.21 | 1,863,872.95 | 1,855,439.05 | 14,944.11 |
| Total | 152,733.65 | 52,659,053.95 | 52,091,211.56 | 720,576.04 |
Other descriptionNone.
41. Taxes payable
Unit: RMB
| Items | Ending balance | Beginning balance |
| VAT (value-added tax) | 11,633,980.05 | 38,272,199.07 |
| Corporate income tax | 33,260,417.96 | 27,477,646.56 |
| Individual income tax | 29,531,701.75 | 14,288,257.83 |
| Urban maintenance and construction tax | 83,836.40 | 1,068,455.46 |
| Education surcharge | 59,870.51 | 763,182.49 |
| Property tax | 4,838,295.65 | 8,767,641.43 |
| Land use tax | 461,935.79 | 1,184,938.91 |
| Other taxes | 201,765.16 | 552,283.82 |
| Total | 80,071,803.27 | 92,374,605.57 |
Other descriptionNone.
42. Liabilities held for sale
None.
43. Non-current liabilities due within one year
Unit: RMB
| Items | Ending balance | Beginning balance |
| Long-term loans due within one year | 320,778,490.00 | 326,208,942.16 |
| Lease liabilities due within one year | 40,666,635.35 | 44,414,655.87 |
| Total | 361,445,125.35 | 370,623,598.03 |
Other description:
None.
44. Other current liabilities
Unit: RMB
| Items | Ending balance | Beginning balance |
| Tax amount to be resold | 3,970,501.17 | 3,598,492.74 |
| Notes receivable that have been endorsed but not derecognized | 56,407,120.99 | 28,963,200.29 |
| Total | 60,377,622.16 | 32,561,693.03 |
Changes in increase/decrease of short-term bond payable:
None.
45. Long-term loans
(1) Classification of long-term loans
Unit: RMB
| Items | Ending balance | Beginning balance |
| Pledge borrowings | 70,500,000.00 | 500,000.00 |
| Credit loan | 280,499,999.98 | 345,679,999.99 |
| Pledge + guaranteed borrowings | 154,888,984.88 | 91,567,877.48 |
| Total | 505,888,984.86 | 437,747,877.47 |
Classification of long-term loans:
None.Additional notes, including interest rate ranges:
None.
46. Bonds payable
None.
47. Lease liabilities
Unit: RMB
| Items | Ending balance | Beginning balance |
| Lease payment | 61,848,683.74 | 69,176,893.60 |
| Unrecognized financing cost | -5,851,886.81 | -7,747,082.57 |
| Total | 55,996,796.93 | 61,429,811.03 |
Other description:
None.
48. Long-term payables
None.
49. Long-term employee compensation payable
None.
50. Estimated liabilities
None.
51. Deferred income
Unit: RMB
| Items | Beginning balance | Increase in the current period | Decrement in the current period | Ending balance | Reasons of formation |
| Governmental subsidies | 11,146,292.42 | 500,000.00 | 2,295,274.86 | 9,351,017.56 | Governmental subsidies related to assets |
| Total | 11,146,292.42 | 500,000.00 | 2,295,274.86 | 9,351,017.56 |
Other description:
None.
52. Other non-current liabilities
None.
53. Share capital
Unit: RMB
| Beginning balance | Increase/decrease of change this time (+, -) | Ending balance | |||||
| Issuance of new shares | Stock dividend | Conversion of accumulation fund into shares | Others | Subtotal | |||
| Total number of shares | 1,246,834,988.00 | 1,246,834,988.00 | |||||
Other description:
None.
54. Other equity instruments
None.
55. Capital reserve
Unit: RMB
| Items | Beginning balance | Increase in the current period | Decrement in the current period | Ending balance |
| Capital premium (share premium) | 2,056,248,939.03 | 79,998,327.85 | 1,976,250,611.18 | |
| Other capital reserves | 156,380,980.48 | 156,380,980.48 | ||
| Total | 2,212,629,919.51 | 79,998,327.85 | 2,132,631,591.66 |
Additional descriptions, including the changes in increase/decrease in the current period and the reasons for changes:
Note: The capital premium (share premium) was decreased by 79,998,327.85 due to acquisition of the equity of theminority shareholder of YAKO Automation.
56. Treasury shares
Unit: RMB
| Items | Beginning balance | Increase in the current period | Decrement in the current period | Ending balance |
| Repurchase of the Company's shares by auction trading | 112,426,101.24 | 82,354,021.60 | 194,780,122.84 | |
| Total | 112,426,101.24 | 82,354,021.60 | 194,780,122.84 |
Additional descriptions, including the changes in increase/decrease in the current period and the reasons for changes:
None.
57. Other comprehensive income
Unit: RMB
| Items | Beginning balance | Amount incurred in the current period | Ending balance | |||||
| Amount of pre-income tax incurred in the current period | Minus: profits and losses included in other comprehensive income previously and transferred in the current period | Minus: current retained earnings included in other comprehensive income in the previous period | Minus: income tax expense | Attributable to parent company after tax | Attributable to minority shareholders after tax | |||
| II. Other comprehensive income that is reclassified into profits and losses | 11,932,029.41 | -33,937,857.88 | -33,937,857.88 | -22,005,828.47 | ||||
| Difference in translation of foreign currency financial statements | 11,932,029.41 | -33,937,857.88 | -33,937,857.88 | -22,005,828.47 | ||||
| Total amount of other comprehensive income | 11,932,029.41 | -33,937,857.88 | -33,937,857.88 | -22,005,828.47 | ||||
Additional note, including the adjustment to the effective portion of the profits and losses of cash flow hedgingtransferred to the amount initially recognized for the hedged item:
None.
58. Special reserve
None.
59. Surplus reserves
Unit: RMB
| Items | Beginning balance | Increase in the current period | Decrement in the current period | Ending balance |
| Statutory surplus reserve | 219,446,936.59 | 219,446,936.59 | ||
| Total | 219,446,936.59 | 219,446,936.59 |
Note for surplus reserve, including changes in increase/decrease in the current period, cause of the changes:
None.
60. Retained earnings
Unit: RMB
| Items | Current period | Previous period |
| Retained earnings at the end of the previous period before adjustment | 2,706,499,696.23 | 2,271,529,693.82 |
| Total retained earnings at the beginning of the period (+ for increase, - for decrease) | 0.00 | 0.00 |
| Retained earnings at the beginning of last period after adjustment | 2,706,499,696.23 | 2,271,529,693.82 |
| Plus: net profit attributable to owners of parent company in current year | 388,828,515.18 | 515,513,995.18 |
| Minus: accrual of statutory surplus reserves | 4,682,742.45 | |
| Common stock dividends payable | 73,502,693.28 | 75,861,250.32 |
| Retained earnings at the end of the period | 3,021,825,518.13 | 2,706,499,696.23 |
Details of adjustments to beginning retained earnings:
1). Due to the retroactive adjustments made according to the Accounting Standards for Business Enterprises andrelevant new provisions therein, RMB 0.00 of the beginning/closing retained earnings was affected.
2). Due to changes to the accounting policies, RMB 0.00 of the beginning/closing retained earnings was affected.
3). Due to corrections of material accounting errors, RMB 0.00 of the beginning/closing retained earnings wasaffected.
4). Due to changes to the contract scope as a result of the same control, RMB 0.00 of the beginning/closing retainedearnings was affected.
5). Due to other adjustments, RMB 0.00 of the beginning/closing retained earnings was affected in total.
61. Operating income and operating costs
Unit: RMB
| Items | Amount incurred in the current period | Amount incurred in prior period | ||
| Income | Cost | Income | Cost | |
| Main business | 5,005,642,038.82 | 3,811,892,079.31 | 4,245,380,855.39 | 3,332,427,372.30 |
| Other business | 10,143,126.77 | 5,318,922.34 | 10,740,298.33 | 5,399,460.85 |
| Total | 5,015,785,165.59 | 3,817,211,001.65 | 4,256,121,153.72 | 3,337,826,833.15 |
Breakdown of operating incomes and operating costs:
□ Applicable ? Not applicable
Information related to performance obligations:
□ Applicable ? Not applicable
Other description
None.Information related to the transaction price allocated to the remaining performance obligations:
At the end of the reporting period, the amount of income corresponding to performance obligations under the signedcontracts but not yet performed or not fully performed is RMB 0.00, including RMB 0.00 expected to be recognizedas income in Year ( ), RMB 0.00 expected to be recognized as income in Year ( ) and RMB 0.00 expected to berecognized as income in Year ( ).Information about variable consideration in contracts:
None.Significant changes to contract or significant adjustments to transaction priceNone.
62. Taxes and surcharges
Unit: RMB
| Items | Amount incurred in the current period | Amount incurred in prior period |
| Urban maintenance and construction tax | 12,005,978.29 | 8,735,223.48 |
| Education surcharge | 8,577,082.19 | 6,339,213.38 |
| Property tax | 5,191,428.79 | 5,088,912.36 |
| Land use tax | 780,357.23 | 650,764.25 |
| Stamp duty | 3,303,662.35 | 3,189,645.46 |
| Others | 6,865.42 | 28,626.66 |
| Total | 29,865,374.27 | 24,032,385.59 |
Other description:
None.
63. Management expenses
Unit: RMB
| Items | Amount incurred in the current period | Amount incurred in prior period |
| Employee compensation | 122,566,301.05 | 114,187,392.52 |
| Depreciation and amortization | 33,240,964.57 | 35,033,783.00 |
| Intermediary service expenses | 7,423,354.12 | 9,399,249.84 |
| Office and traveling expenses | 7,276,860.24 | 6,997,968.78 |
| Rent and utility fees | 6,473,096.51 | 10,120,081.51 |
| Property insurance expenses | 1,649,400.64 | 2,052,153.88 |
| Others | 11,957,661.49 | 16,175,892.29 |
| Equity incentive expenses | 7,508,043.78 |
| Total | 190,587,638.62 | 201,474,565.60 |
Other descriptionNone.
64. Selling expenses
Unit: RMB
| Items | Amount incurred in the current period | Amount incurred in prior period |
| Employee compensation | 97,956,934.31 | 81,107,869.20 |
| Business entertainment fees and traveling expenses | 28,473,653.46 | 18,480,497.11 |
| Intermediary service expenses | 13,639,586.77 | 9,341,011.65 |
| Material costs | 11,641,993.77 | 8,184,375.87 |
| Low-value consumables | 9,398,566.87 | 4,016,987.34 |
| Advertising and exhibition fees | 7,009,515.84 | 4,731,322.60 |
| Others | 12,667,880.45 | 10,598,513.79 |
| Equity incentive expenses | 6,573,868.05 | |
| Total | 180,788,131.47 | 143,034,445.61 |
Other description:
None.
65. R&D expenses
Unit: RMB
| Items | Amount incurred in the current period | Amount incurred in prior period |
| Employee compensation | 230,923,453.91 | 187,631,470.05 |
| Depreciation and amortization | 78,330,098.77 | 53,316,811.19 |
| Material and mould costs | 38,258,046.94 | 31,214,349.49 |
| Intermediary service expenses | 6,255,916.91 | 3,290,664.70 |
| Rent and utilities | 9,829,472.60 | 6,440,176.21 |
| Low-value consumables | 5,072,914.74 | 3,829,519.60 |
| Traveling expenses | 4,614,366.71 | 2,884,334.59 |
| Others | 15,256,627.42 | 14,826,583.48 |
| Equity incentive expenses | 13,856,640.80 | |
| Total | 388,540,898.00 | 317,290,550.11 |
Other descriptionNone.
66. Finance expenses
Unit: RMB
| Items | Amount incurred in the current period | Amount incurred in prior period |
| Interest expense | 28,863,971.32 | 19,596,648.04 |
| Minus: interest income | 15,326,718.58 | 15,720,869.63 |
| Profits and losses on exchange | -43,037,714.77 | -55,962,757.24 |
| Others | 718,877.88 | 1,094,503.59 |
| Total | -28,781,584.15 | -50,992,475.24 |
Other descriptionNone.
67. Other revenues
Unit: RMB
| Source for other revenues | Amount incurred in the current period | Amount incurred in prior period |
| Governmental subsidies | 15,418,390.00 | 13,429,284.92 |
| Return of individual income tax service charge | 1,125,817.55 | 1,169,120.09 |
| Tax reduction and exemption | 404,450.00 | 196,389.92 |
| VAT refund upon collection | 1,910,980.21 | 2,399,764.36 |
| Input tax plus tax reduction | 2,555,337.33 | |
| Total | 21,414,975.09 | 17,194,559.29 |
68. Net gain from exposure hedges
None.
69. Gain from fair-value changes
Unit: RMB
| Sources of gain from fair-value changes | Amount incurred in the current period | Amount incurred in prior period |
| Financial liabilities held for trading | -6,041,282.00 | |
| Total | -6,041,282.00 |
Other description:
None.
70. Investment income
Unit: RMB
| Items | Amount incurred in the current period | Amount incurred in prior period |
| Long-term equity investment income | -133,536.05 | -941,734.97 |
| accounted by the cost method | ||
| Investment income from disposal of long-term equity investments | -2,928,835.90 | |
| Investment income from disposal of tradable financial assets | 2,004,081.40 | 248,584.66 |
| Profits and losses of foreign exchange derivatives after settlement | 155,182.00 | 377,800.00 |
| Total | 2,025,727.35 | -3,244,186.21 |
Other descriptionNone.
71. Credit impairment loss
Unit: RMB
| Items | Amount incurred in the current period | Amount incurred in prior period |
| Loss of bad debt of notes receivable | -30,475.73 | 185,610.25 |
| Bad debt loss of accounts receivable | -5,638,039.01 | -712,252.82 |
| Bad debt loss of other receivables | -748,938.87 | -1,063,126.85 |
| Loss from bad debt of receivable financing | -764,000.36 | -787,139.10 |
| Total | -7,181,453.97 | -2,376,908.52 |
Other descriptionNone.
72. Asset impairment loss
Unit: RMB
| Items | Amount incurred in the current period | Amount incurred in prior period |
| I. Impairment loss on inventories and on contract performance costs | -21,090,974.63 | -23,666,214.06 |
| Total | -21,090,974.63 | -23,666,214.06 |
Other descriptionNone.
73. Assets disposal revenue
Unit: RMB
| Source of assets disposal revenue | Amount incurred in the current period | Amount incurred in prior period |
| Non-current assets disposal revenue | -2,580,837.22 | -1,279,902.83 |
| Total | -2,580,837.22 | -1,279,902.83 |
74. Non-operating income
Unit: RMB
| Items | Amount incurred in the current period | Amount incurred in prior period | Amount included in the current non-recurring profit and loss |
| Non-current assets disposal revenue | 41,884.93 | 523,039.11 | 41,884.93 |
| Others | 1,697,418.41 | 4,068,291.96 | 1,697,418.41 |
| Total | 1,739,303.34 | 4,591,331.07 | 1,739,303.34 |
Other description:
None.
75. Non-operating expenses
Unit: RMB
| Items | Amount incurred in the current period | Amount incurred in prior period | Amount included in the current non-recurring profit and loss |
| Losses on scrapping of non-current assets | 557,666.76 | 2,530,330.52 | 557,666.76 |
| Customer quality deduction expenses | 4,019,824.31 | 1,024,170.82 | 4,019,824.31 |
| Others | 986,395.93 | 696,257.35 | 986,395.93 |
| Total | 5,563,887.00 | 4,250,758.69 | 5,563,887.00 |
Other description:
None.
76. Income tax expenses
(1) Table of income tax expenses
Unit: RMB
| Items | Amount incurred in the current period | Amount incurred in prior period |
| Current income tax expenses | 55,408,628.96 | 13,309,352.18 |
| Deferred tax expense | -18,630,055.15 | -7,265,622.74 |
| Total | 36,778,573.81 | 6,043,729.44 |
(2) Adjustment process of accounting profits and income tax expenses
Unit: RMB
| Items | Amount incurred in the current period |
| Total profit | 426,336,558.69 |
| Income tax expenses calculated at statutory/applicable tax rates | 63,950,483.80 |
| Influence of different tax rates applicable to subsidiary | 8,430,548.71 |
| Effect of income tax adjustment in previous period | 1,752,590.09 |
| Impact of non-taxable income | -768,549.54 |
| Impact of non-deductible cost, expense and loss | 1,238,956.08 |
| Impact of deductible loss of unrecognized deferred tax assets in previous period | -2,647,397.76 |
| Impact of deductible temporary differences or deductible losses of unrecognized deferred tax assets in the current period | 16,413,282.10 |
| Impact of additional deductible expenses | -24,551,103.91 |
| Influence of preferential tax policy for the sub-subsidiary in Vietnam | -17,975,445.05 |
| The impact of changes in tax rates on the initial balance of deferred tax | 805,605.52 |
| Other adjustments | -9,870,396.23 |
| Income tax expenses | 36,778,573.81 |
Other descriptionNone
77. Other comprehensive income
Refer to Note VII. 57 for details.
78. Items of cash flow statement
(1) Cash related to operating activities
Other cash received related to operating activities
Unit: RMB
| Items | Amount incurred in the current period | Amount incurred in prior period |
| Interest income | 31,716,998.12 | 10,914,934.74 |
| Governmental subsidies | 17,690,558.27 | 15,871,269.60 |
| Current accounts | 19,012,136.34 | 36,602,276.24 |
| Others | 3,550,121.17 | 4,104,276.19 |
| Total | 71,969,813.90 | 67,492,756.77 |
Explanation of other cash received related to operating activities:
None.Other cash paid related to operating activities
Unit: RMB
| Items | Amount incurred in the current period | Amount incurred in prior period |
| Service charge | 1,872,495.39 | 913,661.81 |
| Out-of-pocket expenses | 174,203,813.59 | 149,586,149.20 |
| Margin and deposit expenses | 5,922,397.40 | 4,309,067.57 |
| Employee loans | 6,752,625.17 | 4,501,875.40 |
| Others | 18,234,322.12 | 16,019,796.16 |
| Total | 206,985,653.67 | 175,330,550.14 |
Explanation of other cash paid related to operating activities:
None.
(2) Cash related to investment activities
Other cash received related to investment activities
Unit: RMB
| Items | Amount incurred in the current period | Amount incurred in prior period |
| Recovery of foreign exchange deposit | 2,235,246.36 | |
| Total | 2,235,246.36 |
Significant cash received related to investment activitiesNone.Other cash paid related to investment activities
Unit: RMB
| Items | Amount incurred in the current period | Amount incurred in prior period |
| Foreign exchange deposit | 7,268,000.00 | |
| Total | 7,268,000.00 |
Significant cash paid related to investment activitiesNone.
(3) Cash related to financing activities
Other cash received related to financing activities
Unit: RMB
| Items | Amount incurred in the current period | Amount incurred in prior period |
| Bill discount | 5,021,283.53 | 3,101,583.74 |
| Total | 5,021,283.53 | 3,101,583.74 |
Explanation of other cash received related to financing activities:
None.Other cash paid related to financing activities
Unit: RMB
| Items | Amount incurred in the current period | Amount incurred in prior period |
| Note margin |
| Share repurchase | 82,697,917.60 | 6,199,099.20 |
| Payment for lease liabilities | 25,026,658.23 | 16,010,724.01 |
| Takeover of minority equity | 29,761,025.80 | 7,800,000.00 |
| Total | 137,485,601.63 | 30,009,823.21 |
Explanation of other cash paid related to financing activities:
None.Changes in liabilities from financing activities
□ Applicable ? Not applicable
(4) Explanation of cash flows presented in net value
| Items | Information of relevant facts | Basis for presentation in net value | Financial impact |
| Cash paid for investment | Cash flows from purchasing and redeeming financial management products | Cash inflows and outflows of projects with quick turnover, large amount and short period | The net value listed for "Cash flow from payments for investments" is RMB 130,000,000.00. |
| Cash received from investment recovery | Cash flows from purchasing and redeeming financial management products | Cash inflows and outflows of projects with quick turnover, large amount and short period | The net value listed for "Cash flow of cash receipts from withdraw of investments" is RMB 318,000,000.00. |
(5) Major activities not involving cash receipts and payments in the current period but influencing thefinancial position of enterprise or may influence the cash flow of enterprise in the future, and their financialinfluenceNone.
79. Supplementary information of cash flow statement
(1) Supplementary materials of cash flow statement
Unit: RMB
| Supplementary information | Amount in the current period | Amount in the previous period |
| 1.Adjusting net profit to cash flow from operating activities: | ||
| Net profit | 389,557,984.88 | 258,337,757.51 |
| Plus: Provision for impairment of assets | 28,272,428.60 | 26,043,122.58 |
| Depreciation of fixed assets, depletion of oil and gas assets, depreciation of productive biological assets | 91,631,640.46 | 83,492,575.76 |
| Depreciation of right-of-use assets | 23,320,687.24 | 21,919,558.35 |
| Amortization of intangible assets | 72,879,203.48 | 50,804,303.17 |
| Amortization of long-term deferred expenses | 33,648,040.06 | 21,427,228.65 |
| Loss from disposal of fixed assets, intangible assets and other long-term assets | 2,580,837.22 | -1,279,902.83 |
| (income marked with "-") | ||
| Losses on scrapping of fixed assets (income marked with "-") | 557,666.76 | 2,007,291.41 |
| Loss from changes in fair value (income marked "-") | 0.00 | 6,041,282.00 |
| Finance expenses (income marked with "-") | 14,586,264.55 | -44,158,884.67 |
| Investment loss (income marked with "-") | -2,025,727.35 | 3,244,186.21 |
| Decrease in deferred tax assets (increase marked with "-") | -13,895,528.38 | -10,498,339.47 |
| Increase in deferred tax liabilities (decrease marked with "-") | -4,624,889.67 | 3,097,914.16 |
| Decrease in inventory (increase marked with "-") | -214,623,893.85 | 216,980,327.68 |
| Decrease in operating receivables (increase marked with "-") | -408,247,566.47 | 82,527,391.45 |
| Increase in operating payables (decrease marked with "-") | 454,405,998.28 | -222,491,229.78 |
| Others | 2,291,028.86 | 30,347,889.00 |
| Net cash flow from operating activities | 470,314,174.67 | 527,842,471.18 |
| 2Major investment and financing activities not involving cash receipts and payments: | ||
| Conversion of debt into capital | ||
| Convertible bonds due within one year | ||
| Fixed assets acquired under finance leases | ||
| 3.Net change in cash and cash equivalents: | ||
| Ending balance of cash | 1,573,697,119.28 | 1,732,898,730.97 |
| Minus: beginning balance of cash | 1,494,743,705.76 | 1,374,281,693.23 |
| Plus: ending balance of cash equivalents | ||
| Minus: beginning balance of cash equivalents | ||
| Net increase in cash and cash equivalents | 78,953,413.52 | 358,617,037.74 |
(2) Net cash paid for obtaining subsidiaries in the current period
None.
(3) Net cash received for disposal of subsidiaries in the current period
None.
(4) Composition of cash and cash equivalents
Unit: RMB
| Items | Ending balance | Beginning balance |
| I. Cash | 1,573,697,119.28 | 1,494,743,705.76 |
| Including: cash in stock | 942,476.08 | 1,069,045.22 |
| Bank deposit available for payment at any time | 1,549,267,936.90 | 1,333,111,676.06 |
| Other monetary capital for payment at any time | 23,486,706.30 | 160,562,984.48 |
| III. Balance of cash and cash equivalents at the end of the period | 1,573,697,119.28 | 1,494,743,705.76 |
(5) Information listed with limited scope of use but still pertaining to cash and cash equivalentsNone.
(6) Monetary capitals not falling under cash and cash equivalents
Unit: RMB
| Items | Amount in the current period | Amount in the previous period | Reason for not falling under cash and cash equivalents |
| Bank deposit | 4,501,565.37 | 19,498,565.37 | Financial management products, freezing by court, etc. in subscription period |
| Other monetary capital | 23,564,522.19 | 36,208,618.69 | Bonds and accrued but not received interests at the end of period |
| Total | 28,066,087.56 | 55,707,184.06 |
Other description:
None.
(7) Explanation of other major activities
None.
80. Notes to items in change statement of owner's equity
Provide the description of the "Other" item for adjusting the closing balance of previous year, the adjusted amount,etc.:
None.
81. Foreign currency monetary items
(1) Foreign currency monetary items
Unit: RMB
| Items | Foreign currency balance at the end of the period | Exchange rate for conversion | Balance converted into RMB at the end of the period |
| Monetary capital | 581,698,506.49 | ||
| Including: US dollars | 53,899,767.64 | 7.1268 | 384,132,864.02 |
| Euros | 2,811,858.91 | 7.6617 | 21,543,619.41 |
| Hong Kong dollars | 1,889,217.75 | 0.9127 | 1,724,251.26 |
| Indian Rupee | 1,166,065,700.48 | 0.0854 | 99,556,952.07 |
| Vietnamese Dong | 224,546,057,579.00 | 0.0003 | 62,861,668.82 |
| Japanese Yen | 92,578,411.00 | 0.0447 | 4,141,772.95 |
| Romanian Leu | 964,186.86 | 1.5306 | 1,475,756.91 |
| Mexican Peso | 16,230,866.42 | 0.3857 | 6,260,942.13 |
| South African Rand | 1,754.74 | 0.3869 | 678.92 |
| Accounts receivable | 1,388,701,169.47 | ||
| Including: US dollars | 171,419,313.93 | 7.1268 | 1,221,671,166.52 |
| Euros | |||
| Hong Kong dollars | |||
| Indian Rupee | 1,212,685,727.34 | 0.0854 | 103,537,295.19 |
| Vietnamese Dong | 203,685,909,356.00 | 0.0003 | 57,021,653.30 |
| Japanese Yen | 144,643,356.00 | 0.0447 | 6,471,054.46 |
| Long-term loans | |||
| Including: US dollars | |||
| Euros | |||
| Hong Kong dollars | |||
| Receivables financing | 140,195,237.46 | ||
| Including: US dollars | 19,671,554.90 | 7.1268 | 140,195,237.46 |
| Accounts payable | - | 54,330,219.46 | |
| Including: US dollars | 3,112,628.79 | 7.1268 | 22,183,082.86 |
| Euro | 6,622.53 | 7.6617 | 50,739.84 |
| Indian Rupee | 107,728,532.53 | 0.0854 | 9,197,701.12 |
| Vietnamese Dong | 60,989,120,871.00 | 0.0003 | 17,073,839.40 |
| Japanese Yen | 99,048,613.00 | 0.0447 | 4,431,236.85 |
| Mexican Peso | 3,612,818.90 | 0.3857 | 1,393,619.39 |
| Other accounts receivable | - | 8,132,136.07 | |
| Including: US dollars | 850,050.71 | 7.1268 | 6,058,141.40 |
| Euro | 7,885.83 | 7.6617 | 60,418.86 |
| Indian Rupee | 16,722,881.53 | 0.0854 | 1,427,774.63 |
| Vietnamese Dong | 1,446,404,003.00 | 0.0003 | 404,919.26 |
| Japanese Yen | 4,043,138.00 | 0.0447 | 180,881.91 |
| Other accounts payable | - | 7,169,802.90 | |
| Including: US dollars | 369,495.47 | 7.1268 | 2,633,320.32 |
| Euro | 1,035.72 | 7.6617 | 7,935.38 |
| Vietnamese Dong | 16,176,333,083.00 | 0.0003 | 4,528,547.21 |
Other description:
None.
(2) Explanation of overseas business entities, including for important overseas business entities, disclosure ofmain overseas business locations, recording currency and selection basis as well as disclosure of reasons forchanges in recording currency.? Applicable □ Not applicable
1. Topband India Private Limited, a subsidiary of the Company, is mainly located in Pune City, Maharashtra,India, with Indian Rupee as the recording currency;
2. TOPBAND SMART DONG NAI (VIETNAM) Co., Ltd, a sub-subsidiary of the Company, is located inDong Nai, Vietnam, with Vietnamese Dong as the recording currency;
3. Topband Germany GmbH, a sub-subsidiary of the Company, is located in Unterf?hring, Germany, withEuro as the recording currency;
4. TOPBAND JAPAN Co., Ltd., a sub-subsidiary of the Company, is located in Nagoya, Japan, with JapaneseYen as the recording currency;
5. Q.B.PTE.LTD, a sub-subsidiary of the Company, is located in Singapore, with Singapore dollar as therecording currency;
6. TOPBAND SMART EUROPE COMPANY LIMITED S.R.L., a sub-subsidiary of the Company, is locatedin Timisoara, Romania, with Lei as the recording currency;
7. TOPBAND MEXICO, S.DER.L.DEC.V, a sub-subsidiary of the Company, is located in Monterrey, Mexico,with Peso as the recording currency.
82. Lease
(1) The Company as the lessee
? Applicable □ Not applicableVariable lease payments not included in the measurement of lease liabilities
□ Applicable ? Not applicable
Rent of simply treated short-term leases or low-value assets? Applicable □ Not applicableThe rents of simply treated short-term leases credited to relevant asset costs or current profits and losses of thecurrent year is RMB 704,585.31.Information involving sale and leaseback transactionsNone.
(2) The Company as the lessor
Operating lease by lessor? Applicable □ Not applicable
Unit: RMB
| Items | Rental income | Including: incomes related to variable lease payments not credited to rental receipts |
| Rental income | 11,495,486.59 | 0.00 |
| Total | 11,495,486.59 | 0.00 |
Financing lease by lessor
□ Applicable ? Not applicable
Undiscounted rental receipts for each of the next five years
□ Applicable ? Not applicable
Reconciliation statement of undiscounted rental receipts and net lease investmentNone.
(3) Profits and losses on finance lease/sales recognized by manufacturer or distributor
□ Applicable ? Not applicable
83. Data resources
None.
84. Others
None.VIII. R&D costs
Unit: RMB
| Items | Amount incurred in the current period | Amount incurred in prior period |
| Employee compensation | 289,007,969.63 | 247,893,618.50 |
| Depreciation and amortization | 79,398,391.61 | 54,667,719.99 |
| Material and mould costs | 42,359,538.83 | 38,967,345.91 |
| Intermediary service expenses | 8,037,357.06 | 4,469,525.83 |
| Rent and utilities | 9,980,960.92 | 6,920,851.94 |
| Low-value consumables | 5,371,208.09 | 4,789,230.16 |
| Traveling expenses | 5,099,031.15 | 3,984,021.65 |
| Others | 16,143,359.85 | 13,386,188.53 |
| Equity incentive expenses | 13,856,640.80 | |
| Total | 455,397,817.14 | 388,935,143.31 |
| Including: expensed R&D costs | 388,540,898.00 | 317,290,550.11 |
| Capitalized R&D costs | 66,856,919.14 | 71,644,593.20 |
1. R&D items satisfying the capitalization conditions
Unit: RMB
| Items | Beginning balance | Increase in the current period | Decrease amount in the current period | Ending balance | ||||
| Internal development expenditure | Others | Recognized as intangible assets | Transferred to current profit and loss | |||||
| Intelligent controller project | 87,956,121.45 | 28,988,740.68 | 76,292,043.57 | 40,652,818.56 | ||||
| Lithium battery project | 40,719,362.86 | 31,927,745.85 | 41,848,258.33 | 30,798,850.38 | ||||
| Motor and control system project | 5,516,130.58 | 5,940,432.61 | 0.00 | 11,456,563.19 | ||||
| Total | 134,191,614.89 | 66,856,919.14 | 118,140,301.90 | 82,908,232.13 | ||||
Major capitalized R&D items
□ Applicable ? Not applicable
Provision for impairment of development costs
□ Applicable ? Not applicable
2. Major outsourced projects under development
Other description:
None.
IX. Changes in the scope of consolidation
□ Applicable ? Not applicable
X. Interests in other entities
1. Equities in subsidiaries
(1) Composition of enterprise group
Unit: RMB
| Name of subsidiary | Registered capital | Principal place of business | Registered place | Nature of business | Proportion of shareholding | Acquisition method | |
| Direct | Indirect | ||||||
| Shenzhen Topband Software Technology Co., Ltd. | 1,000,000.00 | Shenzhen | Shenzhen | Production and sales | 100.00% | Establishment | |
| Shenzhen Topband Automation Technology Co., Ltd. | 35,000,000.00 | Shenzhen | Shenzhen | Production and sales | 100.00% | Establishment | |
| Shenzhen Topband Battery Co., Ltd. | 50,000,000.00 | Shenzhen | Shenzhen | Production and sales | 100.00% | Establishment | |
| Chongqing Topband Industrial Co., Ltd. | 50,000,000.00 | Chongqing | Chongqing | Production and sales | 100.00% | Establishment | |
| Topband (Hong Kong) Co., Ltd. | HKD 155 million | Hong Kong | Hong Kong | Investor: | 100.00% | Establishment | |
| Huizhou Topband Electrical Technology Co., Ltd. | 300,000,000.00 | Huizhou | Huizhou | Production and sales | 100.00% | Establishment | |
| TOPBAND INDIA PRIVATE LIMITED | INR 1.96 billion | India | India | Production and sales | 100.00% | Establishment | |
| Shenzhen YAKO Automation Technology Co., Ltd. | 60,000,000.00 | Shenzhen | Shenzhen | Production and sales | 100.00% | Consolidation under different control | |
| Shenzhen Allied Control System Co., Ltd. | 55,999,998.00 | Shenzhen | Shenzhen | Production and sales | 100.00% | Consolidation under different control | |
| Huizhou Topband Battery Co., Ltd. | 50,000,000.00 | Huizhou | Huizhou | Production and sales | 100.00% | Establishment | |
| Ningbo Topband Intelligent Control Co., Ltd. | 300,000,000.00 | Ningbo | Ningbo | Production and sales | 100.00% | Establishment | |
| Shenzhen Meanstone Intelligent Technology Co., Ltd. | 7,600,000.00 | Shenzhen | Shenzhen | Production and sales | 77.25% | Consolidation under different control | |
| Shenzhen Yansheng Software Co., Ltd. | 1,500,000.00 | Shenzhen | Shenzhen | Production and sales | 100.00% | Consolidation under different control | |
| Hangzhou Zhidong Motor Technology Co., Ltd. | 1,500,000.00 | Hangzhou | Hangzhou | Production and sales | 75.00% | Consolidation under different control | |
| TOPBAND SMART DONGNAI (VIETNAM) COMPANY LIMITED | USD 33.5 million | Vietnam | Vietnam | Production and sales | 100.00% | Establishment | |
| Topband Germany GmbH | Euro 25,000 | Germany | Germany | Sales | 100.00% | Establishment | |
| TOPBAND JAPAN Co., Ltd | Yen 30 million | Japan | Japan | Sales | 100.00% | Establishment | |
| Shenzhen Topband Supply Chain Services Co., Ltd. | 5,000,000.00 | Shenzhen | Shenzhen | Sales | 100.00% | Establishment | |
| Shenzhen Topband Investment Co., Ltd. | 50,000,000.00 | Shenzhen | Shenzhen | Sales | 100.00% | Establishment | |
| Shenzhen Spark IOT Technology Co., Ltd. | 10,000,000.00 | Shenzhen | Shenzhen | Sales | 100.00% | Establishment | |
| Shenzhen Tunnu Innovation Co., Ltd. | 10,000,000.00 | Shenzhen | Shenzhen | Sales | 100.00% | Establishment | |
| Shenzhen Senxuan Technology Co., Ltd. | 10,000,000.00 | Shenzhen | Shenzhen | Sales | 100.00% | Establishment | |
| Topband (Qingdao) Intelligent Control Co., Ltd. | 10,000,000.00 | Qingdao | Qingdao | Production and sales | 100.00% | Establishment | |
| Shenzhen Tengyi Industrial Co., Ltd. | 1,000,000.00 | Shenzhen | Shenzhen | Sales | 100.00% | Establishment | |
| Taixing Ninghui Lithium Battery Co., Ltd. | 105,000,000.00 | Taixing | Taixing | Production and sales | 100.00% | Consolidation under different control | |
| Shenzhen Topband Automotive Electronics Co., Ltd. | 10,000,000.00 | Shenzhen | Shenzhen | Sales | 100.00% | Establishment | |
| Q.B.PTE.LTD | SGD 10,000 | Singapore | Singapore | Sales | 100.00% | Establishment | |
| TOPBAND MEXICO,S.DE R.L.DEC.V. | MXN 20 million | Mexico | Mexico | Production and sales | 100.00% | Establishment | |
| Tunnu Innovation (Hong Kong) Limited | 10,000,000.00 | Hong Kong | Hong Kong | Sales | 100.00% | Establishment | |
| TOPBAND SMART EUROPE COMPANY LIMITED S.R.L. | ROL 20.1816 million | Romania | Romania | Sales | 100.00% | Establishment | |
| Huizhou YAKO Automation Technology Co., Ltd. | 50,000,000.00 | Shenzhen | Shenzhen | Production and sales | 100.00% | Establishment | |
| Shenzhen Zhongli Consulting Co., Ltd. | 2,000,000.00 | Shenzhen | Shenzhen | Sales | 100.00% | Establishment | |
| TUNNU INNOVATION,INC | USD 10,000 | The United States | The United States | Sales | 100.00% | Establishment | |
| Nantong Topband Youneng Technology Co., Ltd. | 100,000,000.00 | Nantong | Nantong | Production and sales | 100.00% | Establishment | |
| Shenzhen Topband Motor Co., Ltd. | 10,000,000.00 | Shenzhen | Shenzhen | Production and sales | 100.00% | Establishment | |
| Shenzhen Yueshang Robot Co., Ltd. | 10,000,000.00 | Shenzhen | Shenzhen | Production and sales | 100.00% | Establishment | |
| Shenzhen Jingfei Investment Co., Ltd. | 10,000,000.00 | Shenzhen | Shenzhen | Sales | 100.00% | Establishment | |
| Huizhou Chiding Technology Co., Ltd. | 5,000,000.00 | Huizhou | Huizhou | Production and sales | 100.00% | Establishment | |
| Yolaness Technology (HK) Co., Limited | USD 500,000 | Hong Kong | Hong Kong | Sales | 100.00% | Establishment | |
| Huizhou Jiuwan Lvyuan Agriculture Co., Ltd. | 5,000,000.00 | Huizhou | Huizhou | Production and sales | 100.00% | Establishment |
| YOLANESS AFRICA (PTY) LTD | South Africa | South Africa | Sales | 100.00% | Establishment |
Explanation of the shareholding ratio in the subsidiary being different from the voting rights ratio:
None.Basis for holding half or less of the voting rights but still controlling the investee, and holding more than half of thevoting rights but not controlling the investee:
None.For important structured entities included in the scope of consolidation, the basis for control:
None.Basis for determining whether the Company is an agent or a principal:
None.Other description:
None.
(2) Important non-wholly-owned subsidiaries
None.
(3) Major financial information of important non-wholly-owned subsidiaries
None.
(4) Significant restrictions on the use of enterprise group assets and the liquidation of enterprise group debts
None.
(5) Financial support or other support provided to structured entities included in the scope of the consolidated financialstatements
None.Other description:
None.
2. Transactions causing the owner's equity share change but still controlling the subsidiary
(1) Explanation of changes in owner's equity component in a subsidiary
On May 29, 2024, the Company entered into an Equity Transfer Agreement with Mr. Zhu Juzhong, ashareholder of YAKO Automation, Yanxun Investment and Yanyun Investment for the acquisition of 28.46% equityof YAKO Automation. After completion of the transaction, the Company will hold 100% equity of YAKOAutomation.
(2) Impact of transaction on minority equity and interests attributable to parent company
Unit: RMB
| Purchase cost/disposal consideration | |
| -- Cash | 165,068,000.00 |
| -- Fair value of non-cash assets | |
| Total of purchase costs/disposal considerations | 165,068,000.00 |
| Minus: share of subsidiary net assets calculated in proportion to equity acquired/disposed of | 85,069,672.15 |
| Difference | 79,998,327.85 |
| Including: adjusted capital reserve | 79,998,327.85 |
| Adjusted surplus reserves | |
| Adjusted retained profit |
3. Interests in joint venture arrangements or associated enterprises
(1) Important joint ventures or associated enterprises
□ Applicable ? Not applicable
(2) Major financial information of important joint ventures
□ Applicable ? Not applicable
(3) Major financial information of important associated enterprises
□ Applicable ? Not applicable
(4) Summarized financial information of unimportant joint ventures and associated enterprises
Unit: RMB
| Ending balance/amount incurred in the current period | Beginning balance/amount incurred in the previous period |
| Joint venture: | ||
| Sum of the following items calculated according to the shareholding ratio | ||
| Associated enterprises: | ||
| Total book value of investment | 37,614,643.25 | 35,680,088.03 |
| Sum of the following items calculated according to the shareholding ratio | ||
| -- Net profit | -133,536.05 | -941,734.98 |
| -- Total comprehensive income | -133,536.05 | -941,734.98 |
(5) Statement that there is a material limitation on the ability of the joint venture or associated enterprise totransfer funds to the CompanyNone.
(6) Excess losses incurred by the joint ventures or associated enterprises
None.
(7) Unconfirmed commitments related to the investment of joint ventures
None.
(8) Contingent liabilities related to the investment of joint ventures or associated enterprisesNone.
4. Important joint operation
□ Applicable ? Not applicable
5. Rights and interests in structured entities not included in the scope of the consolidated financial statementsExplanation for structured subject not included in the scope of consolidated financial statements
6. Others
None.XI. Government subsidies
1. Government subsidies recognized as receivables at the end of the reporting period
□ Applicable ? Not applicable
Reason for failure to receive a government subsidy with expected amount at the expected time point
□ Applicable ? Not applicable
2. Liability items involving government subsidies
? Applicable □ Not applicable
Unit: RMB
| Accounting title | Beginning balance | Newly increased subsidy in the current period | Amount accounted into non-operating income in the current period | Transferred to the amount of other incomes in the current period | Other changes in the current period | Ending balance | Related to assets/incomes |
| Deferred income | 11,146,292.42 | 500,000.00 | 2,295,274.86 | 9,351,017.56 | Governmental subsidies related to assets | ||
| Total | 11,146,292.42 | 500,000.00 | 2,295,274.86 | 9,351,017.56 | / |
3. Government subsidies included in current profits and losses
? Applicable □ Not applicable
Unit: RMB
| Accounting title | Amount incurred in the current period | Amount incurred in prior period |
| Other income | 15,418,390.00 | 13,429,284.92 |
Other description:
None.XII. Risks related to financial instruments
1. Various risks from financial instruments
The main financial instruments of the Company include equity investment, debt investment, borrowings,accounts receivable, accounts payable, convertible bonds, etc. For details of each financial instrument, please referto the relevant items in Note VI. The risks associated with these financial instruments and the risk managementpolicies adopted by the Company to mitigate these risks are described below. In order to ensure all the above risksto be controlled within a limited scope, the management of the Company has controlled and supervised the riskexposure.
Sensitivity analysis technique is used for analyzing reasonableness of risk variable and possible impacts fromits variation on current profits and losses or shareholders' equity. Since any risk variable rarely changes in isolation,and the correlation between the variables will have a significant effect on the final amount affected by a change ina risk variable, the following contents are based on the assumption that changes in each variable are made in isolation.The main risks arising from the Company's financial instruments include the credit risk, liquidity risk and marketrisk.(I) Risk management objective and policyThe risk management of the Company is intended to achieve an appropriate balance between risks and returns,mitigate the negative impact of risks on the Company's business performance to minimum, and maximize theinterests of shareholders and other equity investors. Based on this risk management objective, the basic riskmanagement strategy of the Company is to determine and analyze various risks faced by it, establish an appropriaterisk bearing bottom line and carry out risk management, and conduct timely and reliable supervision of various risksto control risks within the limited scope.
1. Market risk
(1) Foreign exchange risk
Foreign exchange risk refers to the risk of loss due to exchange rate fluctuations. The Company's exposure toforeign exchange risks is mainly related to US dollars and Hong Kong dollars. Except for the Company and itssubsidiary Topband (Hong Kong) Co., Ltd. that purchase and sell some materials and products in US dollars, Eurosand Hong Kong dollars, its subsidiary TOPBAND INDIA PRIVATE LIMITED that uses Indian Rupee, its sub-subsidiary TOPBAND SMART DONG NAI (VIETNAM) Co., Ltd that use Vietnamese Dong, its sub-subsidiaryTopband Germany GmbH that uses Euros, its sub-subsidiary TOPBAND JAPAN Co., Ltd. that uses Japanese Yen,its sub-subsidiary Q.B.PTE.LTD that uses Singapore dollars, its sub-subsidiary TOPBAND MEXICO,S.DER.L.DEC.V. that uses Mexican Peso, its sub-subsidiary TOPBAND SMART EUROPE COMPANY LIMITEDS.R.L. that uses Romanian Leu, its sub-subsidiary Tunnu Innovation (Hong Kong) Limited that uses Hong Kongdollars, its sub-subsidiary TUNNU INNOVATION, INC that uses US dollars, and its sub-subsidiary YOLANESSAFRICA (PTY) LTD that uses Rand as the settlement currency, other major business activities of the Company aresettled in Chinese Yuan. As of June 30, 2024, the balances of assets and liabilities of the Company are in ChineseYuan, except the balances of assets or liabilities stated in VII. (81) foreign currency monetary items are in US dollars,Hong Kong dollars, Euros, Vietnamese Dong, Japanese Yen, Indian Rupee, Romanian Leu, Mexican Peso, Rand
and Canadian dollars. The foreign exchange risks arising from the assets and liabilities of such foreign currencybalances may have an impact on the Company's operating results.The Company pays close attention to the impact of exchange rate fluctuations on the Company's foreignexchange risks. The Company currently takes no measures to avoid foreign exchange risks.
(2) Other price risks
Investments held by the Company and classified as tradable financial assets are measured at fair value on thebalance sheet date. Therefore, the Company is exposed to the risk of changes in the securities market.
2. Credit risk
As of June 30, 2024, the maximum credit risk exposure that may cause financial losses to the Company wasmainly due to a failure of the other party to fulfill obligations, which led to financial asset losses to the Company,and financial guarantee undertaken by the Company, including recognized carrying amounts of financial assets inconsolidated balance sheets; for financial instruments measured at the fair value, the carrying value only reflects itsrisk exposure, rather than the maximum risk exposure that varies with the fair value in the future.
In order to reduce credit risks, the Company has arranged special positions responsible for determining creditlimits, conducting credit review and approval, and implementing other monitoring procedures to ensure thatnecessary measures are taken to recover overdue claims. In addition, the Company reviews the recovery of eachindividual receivable on each balance sheet date to ensure that adequate provision is made for uncollectible amounts.As a result, the Management of the Company believes that the credit risk assumed by the Company has beensignificantly reduced.
The Company's working capital is deposited in a bank with a high credit rating, so the credit risk of workingcapital is low.
The Company has adopted necessary policies to ensure that all sales customers have good credit records. TheCompany has no other major credit concentration risk.
3. Flow risk
When managing liquidity risk, the Company maintains sufficient cash and cash equivalents as deemed by themanagement and monitors them to meet the Company's operational needs and reduce the impact of cash flowfluctuations. The management of the Company monitors the use of bank loans and ensures compliance with loanagreements.
2. Hedging
(1) The Company carries out hedging business for risk management
□ Applicable ? Not applicable
(2) The Company carries out hedging business that meets the conditions, and applies hedge accounting
□ Applicable ? Not applicable
(3) The Company carries out hedging business for risk management and is expected to realize the risk management objects,but does not apply hedge accounting
□ Applicable ? Not applicable
3. Financial assets
(1) Classification of transfer methods
□ Applicable ? Not applicable
(2) Derecognized financial assets due to transfer
□ Applicable ? Not applicable
(3) Transfer of financial assets with assets in continuing involvement
□ Applicable ? Not applicable
Other description:
None.
XIII. Disclosure of fair value
1. Ending fair value of assets and liabilities measured at fair value
Unit: RMB
| Items | Ending fair value | |||
| The first level of fair value | The second-level fair value | The third level of fair value measurement | Total | |
| measurement | measurement | |||
| I. Continuous fair value measurement | -- | -- | -- | -- |
| (I) Tradable financial assets | 705,951,354.57 | 705,951,354.57 | ||
| 1. Financial asset at fair value and changes through current profits and losses | 705,951,354.57 | 705,951,354.57 | ||
| (1) Debt instrument investment | 357,118,885.97 | 357,118,885.97 | ||
| (2) Equity instrument investment | 348,832,468.60 | 348,832,468.60 | ||
| (II) Other equity instrument investments | 41,192,950.00 | 41,192,950.00 | ||
| (III) Receivables financing | 302,159,864.75 | 302,159,864.75 | ||
| II. Non-continuous fair value measurement | -- | -- | -- | -- |
2. The basis for determining the market price of continuous and non-continuous first-level fair valuemeasurement itemsNone.
3. Continuous and non-continuous second-level fair value measurement items, valuation techniques adoptedand qualitative and quantitative information of important parametersNone.
4. Continuous and non-continuous third-level fair value measurement items, valuation techniques adoptedand qualitative and quantitative information of important parametersNone.
5. Continuous third-level fair value measurement items, adjustment information between beginning andending book value and sensitivity analysis of unobservable parametersNone.
6. For continuous fair value measurement items, if the conversion occurs among different levels in the currentperiod, the reasons for the conversion and the policies for determining the conversion time pointNone.
7. Technical changes in valuation during the current period and the reasons for such changesNone.
8. Fair value of financial assets and financial liabilities not measured at fair valueNone.
9. Others
None.
XIV. Related parties and related party transactions
1. Profile of parent company of the Company
| Name of parent company | Registered place | Nature of business | Registered capital | Shareholding ratio of parent company to the Company | Proportion of the parent company's voting rights in the Company |
| Wu Yongqiang | Shenzhen | 17.00% | 17.00% |
Information of parent company of the CompanyNone.The ultimate controller of the Company is Wu Yongqiang.Other description:
None.
2. Profile of subsidiaries of the Company
See Note X. 1 for information about our subsidiaries.
3. Information on the joint ventures and associated enterprises of the CompanySee Note X. 3 for the key joint ventures or associated enterprises of the Company.
4. Other related parties
| Names of other related parties | Relationship between other related parties and the Company |
| Shenzhen Jizhiguang Electronics Co., Ltd. | A company substantially controlled by the relative of the Company's legal representative |
| Shenzhen Lianghui Technology Co., Ltd. | Shareholding companies of the Company |
| Shenzhen ORVIBO Technology Co., Ltd. | Shareholding companies of the Company |
| Shenzhen HANSC Intelligent Technology Co., Ltd. | Shareholding companies of the Company |
| Guangdong Zhongchuang Zhijia Scientific Research Co., Ltd. | Shareholding companies of the Company |
| Guangdong Huixin Semiconductor Co., Ltd. | Shareholding companies of the Company |
| Fujian Mini Dolphin New Energy Technology Co., Ltd. | Shareholding companies of the Company |
| Chengdu Senwei Technology Co., Ltd. | Shareholding companies of the Company |
| Shenzhen Youbi Technology Co., Ltd. | Shareholding companies of the Company |
| Shanghai Yidong Power Technology Co., Ltd. | Shareholding companies of the Company |
| Jiangsu Donghai Semiconductor Co., Ltd. | Shareholding companies of the Company |
| Jiangxi Sarui Microelectronics Technology Co., Ltd. | Shareholding companies of the Company |
| Shanghai Xinggan Semiconductor Co., Ltd. | Shareholding companies of the Company |
| Shenzhen Jizhi Laser Technology Co., Ltd. | Shareholding companies of the Company |
| Dongguan Jujin Plastic Technology Co., Ltd. | Shareholding companies of the Company |
Other descriptionNone.
5. Related party transaction
(1) Related transactions involving the purchase and sale of goods and the provision and acceptance ofservicesList of goods purchased/services received
Unit: RMB
| Related party | Related transaction content | Amount incurred in the current period | Approved transaction limit | Is the transaction limit exceeded | Amount incurred in prior period |
| Shenzhen Jizhiguang Electronics Co., Ltd. | Purchase of raw materials | 6,723,361.25 | 34,000,000.00 | No | 6,213,891.11 |
| Shenzhen ORVIBO Technology Co., Ltd. | Purchase of raw materials | No | 5,534.37 | ||
| Jiangsu Donghai Semiconductor Co., Ltd. | Purchase of raw materials | 15,125.00 | No | 49,179.00 | |
| Dongguan Jujin Plastic Technology Co., Ltd. | Purchase of raw materials | 14,204,210.67 | No | 6,775,522.76 | |
| Jiangxi Sarui Microelectronics Technology Co., Ltd. | Purchase of raw materials | 1,915.00 | No |
List of goods sold/services provided
Unit: RMB
| Related party | Related transaction content | Amount incurred in the current period | Amount incurred in prior period |
| Shenzhen ORVIBO Technology Co., Ltd. | LED product | 5,010,688.23 | 7,332,764.07 |
Related transactions involving the purchase and sale of goods and the provision and acceptance of servicesNone.
(2) Relevant entrusted management/contracting and entrusted management/outsourcingNone.
(3) Related lease
□ Applicable ? Not applicable
(4) Related party guarantee situation
□ Applicable ? Not applicable
(5) Interbank lending of related parties
□ Applicable ? Not applicable
(6) Asset transfer and debt restructuring of related parties
□ Applicable ? Not applicable
(7) Remuneration of key management personnel
Unit: RMB
| Items | Amount incurred in the current period | Amount incurred in prior period |
| Remuneration of key management personnel | 3,841,100.00 | 3,266,000.00 |
(8) Other related transactions
None.
6. Receivables and payables due to related parties
(1) Item receivable
Unit: RMB
| Project name | Related party | Ending balance | Beginning balance | ||
| Book balance | Provision for bad debts | Book balance | Provision for bad debts | ||
| Accounts receivable | Shenzhen ORVIBO Technology Co., Ltd. | 1,843,588.12 | 57,151.23 | 3,747,603.20 | 116,175.70 |
| Prepayment | Shenzhen ORVIBO Technology Co., Ltd. | 3,037.05 | |||
(2) Payables
Unit: RMB
| Project name | Related party | Book balance at the end of the period | Book balance at the beginning of the period |
| Accounts payable | Shenzhen Jizhiguang Electronics Co., Ltd. | 2,185,143.57 | 866,888.49 |
| Accounts payable | Jiangsu Donghai Semiconductor Co., Ltd. | 6,215.01 | 51,217.50 |
| Accounts payable | Guangdong Huixin Semiconductor Co., Ltd. | 2,180.53 | 311.50 |
| Accounts payable | Jiangxi Sarui Microelectronics Technology Co., Ltd. | 2,113.67 | 100,087.00 |
| Accounts payable | Dongguan Jujin Plastic Technology Co., Ltd. | 13,483,054.08 | 8,514,044.84 |
| Other account payable | Dongguan Jujin Plastic Technology Co., Ltd. | 39,000.00 |
7. Commitment of related parties
None.
8. Others
None.XV. Share-based payment
1. General situation of share-based payments
□ Applicable ? Not applicable
2. Equity-settled share-based payments
□ Applicable ? Not applicable
3. Cash-settled share-based payments
□ Applicable ? Not applicable
4. Share-based payments in the current period
□ Applicable ? Not applicable
5. Modification and termination of share-based payments
None.
6. Others
None.XVI. Commitments and contingencies
1. Important commitments
Important commitments that existed on the balance sheet dateNone.
2. Contingencies
(1) Significant contingencies on the balance sheet date
None.
(2) The important contingencies not required to be disclosed shall be explained as wellNo signification contingencies need to be disclosed by the Company.
3. Others
None.
XVII. Events after the balance sheet date
None.
XVIII. Other important matters
None.
XIX. Notes to main items of financial statements of the parent company
1. Accounts receivable
(1) Disclosure by aging
Unit: RMB
| Aging | Book balance at the end of the period | Book balance at the beginning of the period |
| Within 1 year (including 1 year) | 1,402,570,972.20 | 1,287,212,115.69 |
| 1-2 years | 2,212,939.85 | 5,268,760.84 |
| 2-3 years | 504,549.02 | 791,447.31 |
| Above 3 years | 2,108,422.46 | 2,078,206.45 |
| 3-4 years | 127,257.51 | 97,063.40 |
| 4-5 years | 646,390.97 | 648,578.33 |
| Above 5 years | 1,334,773.98 | 1,332,564.72 |
| Total | 1,407,396,883.53 | 1,295,350,530.29 |
(2) Disclosure based on accrual methods of bad-debt provision
Unit: RMB
| Type | Ending balance | Beginning balance | ||||||||
| Book balance | Provision for bad debts | Book value | Book balance | Provision for bad debts | Book value | |||||
| Amount | Proportion | Amount | Proportion of provision | Amount | Proportion | Amount | Proportion of provision | |||
| Accounts receivable with single provision for bad debts | 164,229,607.00 | 11.67% | 2,994,574.69 | 1.82% | 161,235,032.31 | 120,945,555.34 | 9.34% | 2,994,574.69 | 2.48% | 117,950,980.65 |
| Including: | ||||||||||
| Accounts receivable with a single significant amount and single bad debt provision | 163,165,846.62 | 11.59% | 1,930,814.31 | 1.18% | 161,235,032.31 | 119,881,794.96 | 9.26% | 1,930,814.31 | 1.61% | 117,950,980.65 |
| Accounts receivable with insignificant single amount but separate bad debt provision | 1,063,760.38 | 0.08% | 1,063,760.38 | 100.00% | 1,063,760.38 | 0.08% | 1,063,760.38 | 100.00% | 0.00 | |
| Accounts receivable with provision for bad debts by portfolio | 1,243,167,276.53 | 88.33% | 38,764,092.85 | 3.12% | 1,204,403,183.68 | 1,174,404,974.95 | 90.66% | 36,854,741.91 | 3.14% | 1,137,550,233.04 |
| Including: | ||||||||||
| Accounts receivable with provision for bad debts by combination (aging analysis method) | 1,243,167,276.53 | 88.33% | 38,764,092.85 | 3.12% | 1,204,403,183.68 | 1,174,404,975.00 | 90.66% | 36,854,741.91 | 3.14% | 1,137,550,233.04 |
| Total | 1,407,396,883.53 | 100.00% | 41,758,667.54 | 2.97% | 1,365,638,215.99 | 1,295,350,530.29 | 100.00% | 39,849,316.60 | 3.08% | 1,255,501,213.69 |
Description of bad-debt provisions on individual basis: Provision for impairment of individual accounts receivablewith material balance, and provision for impairment of individual accounts receivable with non-material balance
Unit: RMB
| Name | Beginning balance | Ending balance | ||||
| Book balance | Provision for bad debts | Book balance | Provision for bad debts | Proportion of provision | Reasons for provision | |
| Accounts receivable with a single significant amount and single bad debt provision | 119,881,794.96 | 1,930,814.31 | 163,165,846.62 | 1,930,814.31 | 1.18% | It is difficult to recover |
| Accounts receivable with insignificant single amount but separate bad debt provision | 1,063,760.38 | 1,063,760.38 | 1,063,760.38 | 1,063,760.38 | 100.00% | It is difficult to recover |
| Total | 120,945,555.34 | 2,994,574.69 | 164,229,607.00 | 2,994,574.69 | ||
Description of bad-debt provision on individual basis:
□ Applicable ? Not applicable
Description of bad-debt provision on combined basis: Provision for impairment of combined accounts receivable(by aging analysis)
Unit: RMB
| Name | Ending balance | ||
| Book balance | Provision for bad debts | Proportion of provision | |
| Accounts receivable with provision for bad debts by combination (aging analysis method) | 1,243,167,276.53 | 38,764,092.85 | 3.12% |
| Total | 1,243,167,276.53 | 38,764,092.85 | |
Explanation of the basis for determining the portfolio:
None.In case of provision for bad debts on accounts receivable based on the general model of expected credit loss:
□ Applicable ? Not applicable
(3) Provision for bad debts accrued, recovered or reversed in the current periodProvision for bad debts in the current period:
Unit: RMB
| Type | Beginning balance | Amount changed in the current period | Ending balance | |||
| Provision | Recover or reversal | Write-off | Others | |||
| Provision for bad debts | 39,849,316.60 | 1,909,350.94 | 41,758,667.54 | |||
| Total | 39,849,316.60 | 1,909,350.94 | 41,758,667.54 | |||
Of which the amount of provision for bad debts recovered or reversed in the current period is significant:
None.
(4) Accounts receivable actually written off in the current period
□ Applicable ? Not applicable
(5) Accounts receivables with top five ending balances grouped by debtors, and contract assets
Unit: RMB
| Name of unit | Ending balance of accounts receivable | Ending balance of contract assets | Ending balance of accounts receivables and contract assets | Percentage in total ending balance of accounts receivables and contract assets | Ending balance of provision for impairment of accounts receivables and contract assets |
| No. 1 | 323,155,473.00 | 323,155,473.00 | 22.96% | 10,017,819.67 | |
| No. 2 | 62,930,587.27 | 62,930,587.27 | 4.47% | ||
| No. 3 | 60,451,212.75 | 60,451,212.75 | 4.30% | 1,873,987.60 | |
| No. 4 | 51,165,729.71 | 51,165,729.71 | 3.64% | ||
| No. 5 | 38,722,194.36 | 38,722,194.36 | 2.75% | 1,200,388.03 | |
| Total | 536,425,197.09 | 536,425,197.09 | 38.12% | 13,092,195.30 |
2. Other receivables
Unit: RMB
| Items | Ending balance | Beginning balance |
| Interest receivable | 0.00 | 0.00 |
| Dividends receivable | 0.00 | 0.00 |
| Other receivables | 345,934,589.72 | 359,906,911.54 |
| Total | 345,934,589.72 | 359,906,911.54 |
(1) Interest receivable
□ Applicable ? Not applicable
(2) Dividends receivable
□ Applicable ? Not applicable
(3) Other receivables
1) Classification of other receivables by nature of amount
Unit: RMB
| Nature of payment | Book balance at the end of the period | Book balance at the beginning of the period |
| Other receivables | 350,687,107.19 | 363,928,704.37 |
| Total | 350,687,107.19 | 363,928,704.37 |
2) Disclosure by aging
Unit: RMB
| Aging | Book balance at the end of the period | Book balance at the beginning of the period |
| Within 1 year (including 1 year) | 343,578,118.20 | 357,493,959.23 |
| Within 1 year (inclusive), subtotal | 343,578,118.20 | 357,493,959.23 |
| 1-2 years | 1,795,356.92 | 1,691,269.55 |
| 2-3 years | 1,011,302.65 | 547,927.64 |
| Above 3 years | 4,302,329.42 | 4,195,547.95 |
| 3-4 years | 228,279.20 | 556,684.11 |
| 4-5 years | 1,219,964.00 | 2,458,782.00 |
| Above 5 years | 2,854,086.22 | 1,180,081.84 |
| Total | 350,687,107.19 | 363,928,704.37 |
3) Disclosure based on accrual methods of bad-debt provision
Unit: RMB
| Type | Ending balance | Beginning balance | ||||||||
| Book balance | Provision for bad debts | Book value | Book balance | Provision for bad debts | Book value | |||||
| Amount | Proportion | Amount | Proportion of provision | Amount | Proportion | Amount | Proportion of provision | |||
| Bad debt provision on individual basis | 337,070,238.89 | 96.12% | 0.00% | 337,070,238.89 | 352,237,197.66 | 96.79% | 0.00% | 352,237,197.66 | ||
| Bad debt provision on combined basis | 13,616,868.30 | 3.88% | 4,752,517.47 | 34.90% | 8,864,350.83 | 11,691,506.71 | 3.21% | 4,021,792.83 | 34.40% | 7,669,713.88 |
| Total | 350,687,107.19 | 100.00% | 4,752,517.47 | 1.36% | 345,934,589.72 | 363,928,704.37 | 100.00% | 4,021,792.83 | 1.11% | 359,906,911.54 |
Description of bad-debt provision on individual basis:
None.Description of bad-debt provision on combined basis:
None.Explanation of the basis for determining the portfolio:
None.
Provision for bad debts based on the general model of expected credit loss:
Unit: RMB
| Provision for bad debts | First stage | Second stage | Third stage | Total |
| Expected credit loss in the next 12 months | Expected credit loss for the entire duration (no credit impairment) | Expected credit loss for the entire duration (credit impairment occurred) | ||
| Balance as of January 1, 2024 | 4,021,792.83 | 4,021,792.83 | ||
| Balance as of January 1, 2024 in the current period | ||||
| Accrual in the current period | 730,724.64 | 730,724.64 | ||
| Balance as of June 30, 2024 | 4,752,517.47 | 4,752,517.47 |
Basis of phasing and percentage of provision for impairment
□ Applicable ? Not applicable
Changes in book balance with significant changes in loss reserves in the current period
□ Applicable ? Not applicable
4) Provision for bad debts accrued, recovered or reversed in the current period
Provision for bad debts in the current period:
Unit: RMB
| Type | Beginning balance | Amount changed in the current period | Ending balance | |||
| Provision | Recover or reversal | Transfer or write-off | Others | |||
| Provision for bad debts | 4,021,792.83 | 730,724.64 | 4,752,517.47 | |||
| Total | 4,021,792.83 | 730,724.64 | 4,752,517.47 | |||
None.Of which the amount of provision for bad debts recovered or reversed in the current period is significant:
None.
5) Other accounts receivable actually written off in the current period
□ Applicable ? Not applicable
6) Other accounts receivable of the top five debtors in respect of the ending balances
Unit: RMB
| Name of unit | Nature of payment | Ending balance | Aging | Proportion to total ending balances of other receivables | Ending balance of provision for bad debts |
| No. 1 | Transactions with related parties | 142,861,510.36 | Within 1 year | 40.74% | 0.00 |
| No. 2 | Transactions with related parties | 68,968,536.00 | Within 1 year | 19.67% | 0.00 |
| No. 3 | Transactions with related parties | 68,000,000.00 | Within 1 year | 19.39% | 0.00 |
| No. 4 | Transactions with related parties | 11,940,509.87 | Within 1 year | 3.40% | 0.00 |
| No. 5 | Transactions with related parties | 10,500,000.00 | Within 1 year | 2.99% | 0.00 |
| Total | 302,270,556.23 | 86.19% | 0.00 |
7) Included in other accounts receivables due to centralized management of funds
□ Applicable ? Not applicable
3. Long-term equity investment
Unit: RMB
| Items | Ending balance | Beginning balance | ||||
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
| Investment in subsidiaries | 4,148,631,889.88 | 4,148,631,889.88 | 3,981,563,889.88 | 3,981,563,889.88 | ||
| Investment in associated enterprises and joint ventures | 18,263,630.50 | 12,433,655.05 | 5,829,975.45 | 18,272,947.90 | 12,433,655.05 | 5,839,292.85 |
| Total | 4,166,895,520.38 | 12,433,655.05 | 4,154,461,865.33 | 3,999,836,837.78 | 12,433,655.05 | 3,987,403,182.73 |
(1) Investment in subsidiaries
Unit: RMB
| Investee | Beginning balance (book value) | Opening balance of provision for impairment | Changes in increase/decrease in the current period | Ending balance (book value) | Ending balance of provision for impairment | |||
| Additional investment | Decrease in investment | Provision for impairment | Others | |||||
| Shenzhen Topband Software Technology Co., Ltd. | 26,150,537.86 | 26,150,537.86 | ||||||
| Shenzhen Topband Battery Co., Ltd. | 628,362,316.54 | 628,362,316.54 | ||||||
| Shenzhen Topband Automation Technology Co., Ltd. | 36,511,327.16 | 36,511,327.16 | ||||||
| Chongqing Topband Industrial Co., Ltd. | 211,708,311.75 | 211,708,311.75 | ||||||
| Topband (Hong Kong) Co., Ltd. | 528,408,500.00 | 528,408,500.00 | ||||||
| Huizhou Topband Electrical Technology Co., Ltd. | 1,035,280,971.92 | 1,035,280,971.92 | ||||||
| Ningbo Topband Intelligent Control Co., Ltd. | 671,193,958.69 | 671,193,958.69 | ||||||
| Shenzhen Allied Control System Co., Ltd. | 128,405,047.58 | 128,405,047.58 | ||||||
| Shenzhen Meanstone Intelligent Technology Co., Ltd. | 10,000,000.00 | 10,000,000.00 | ||||||
| TOPBANDINDIAPRIVATELIMITED | 195,026,748.97 | 195,026,748.97 | ||||||
| Shenzhen YAKO Automation Technology Co., Ltd. | 350,014,659.96 | 165,068,000.00 | 515,082,659.96 | |||||
| Shenzhen Topband Investment Co., Ltd. | 99,314,771.98 | 99,314,771.98 | ||||||
| Shenzhen Topband Supply Chain Services Co., Ltd. | 5,000,000.00 | 5,000,000.00 | ||||||
| Shenzhen Senxuan Technology Co., Ltd. | 8,035,325.03 | 2,000,000.00 | 10,035,325.03 | |||||
| Topband (Qingdao) Intelligent Control Co., Ltd. | 30,000,000.00 | 30,000,000.00 | ||||||
| Shenzhen Topband Motor Co., Ltd. | 12,151,412.44 | 12,151,412.44 | ||||||
| Huizhou Chiding Technology Co., Ltd. | 5,000,000.00 | 5,000,000.00 | ||||||
| Shenzhen Jingfei Investment Co., Ltd. | 1,000,000.00 | 1,000,000.00 | ||||||
| Total | 3,981,563,889.88 | 167,068,000.00 | 4,148,631,889.88 |
(2) Investment in associated enterprises and joint ventures
Unit: RMB
| Investment unit | Beginning balance (book value) | Opening balance of provision for impairment | Changes in increase/decrease in the current period | Ending balance (book value) | Ending balance of provision for impairment | |||||||
| Additional investment | Decrease in investment | Profits and losses on investment recognized under equity method | Adjustment to other comprehensive income | Other changes in equity | Declaration of distribution for cash dividends or profits | Provision for impairment | Others | |||||
| I. Joint venture | ||||||||||||
| II. Associated enterprises | ||||||||||||
| Shenzhen Daka Optoelectronics Co., Ltd. | 5,839,292.85 | -9,317.40 | 5,829,975.45 | |||||||||
| Tai'an Yuchengxin Power Technology Co., Ltd. | 12,433,655.05 | 12,433,655.05 | ||||||||||
| Subtotal | 5,839,292.85 | 12,433,655.05 | -9,317.40 | 5,829,975.45 | 12,433,655.05 | |||||||
| Total | 5,839,292.85 | 12,433,655.05 | -9,317.40 | 5,829,975.45 | 12,433,655.05 | |||||||
Determination of net amount of recoverable amount at fair value less disposal expense
□ Applicable ? Not applicable
Determination of net amount of recoverable amount at present value of estimated future cash flows
□ Applicable ? Not applicable
Cause for significant discrepancy between abovementioned information and information used in the previous year's impairment test or external information
None.Cause for significant discrepancy between information used in the previous year's impairment test of the Company and actual information in current yearNone.
(3) Other descriptions
None.
4. Operating income and operating cost
Unit: RMB
| Items | Amount incurred in the current period | Amount incurred in prior period | ||
| Income | Cost | Income | Cost | |
| Main business | 2,335,186,489.30 | 1,887,021,091.59 | 2,168,888,404.03 | 1,828,400,603.03 |
| Other business | 73,149,986.55 | 63,317,817.95 | 83,107,729.82 | 78,139,272.60 |
| Total | 2,408,336,475.85 | 1,950,338,909.54 | 2,251,996,133.85 | 1,906,539,875.63 |
Breakdown of operating incomes and operating costs:
□ Applicable ? Not applicable
Information related to performance obligations:
None.Information related to the transaction price allocated to the remaining performance obligations:
None.
5. Investment income
Unit: RMB
| Items | Amount incurred in the current period | Amount incurred in prior period |
| Long-term equity investment income accounted by the cost method | -9,317.40 | -40,895.18 |
| Investment income from disposal of tradable financial assets | 507,252.49 | |
| Interest income from other debt investments in holding period | -182,700.00 | |
| Profits and losses of foreign exchange derivatives after settlement | 155,182.00 | 377,800.00 |
| Total | 470,417.09 | 336,904.82 |
6. Others
None.
XX. Supplementary Information
1. Schedule of current non-recurring profit and loss
? Applicable □ Not applicable
Unit: RMB
| Items | Amount | Description |
| Profits and losses on disposal of non-current assets | -3,096,619.05 | |
| Government grants credited to income statement (except for government grants that are closely related to the normal operation of the Company, comply with national policies and regulations, enjoy in accordance with determined criteria, and have a continuous impact on the profit and loss of the Company) | 15,418,390.00 | |
| Profit/loss arising from changes in fair value of financial assets and liabilities held by non-financial enterprises, and profits and losses on disposal of financial assets and liabilities, except for the effective hedging business related to the normal operation of the Company, | 2,159,263.40 | |
| Reversal of impairment of receivables individually tested for impairment | 3,369,846.80 | |
| Other non-operating income and expenses other than those mentioned above | 776,803.05 | |
| Minus: amount affected by income tax | 2,854,659.99 | |
| Amount affected by minority shareholders' equity (after tax) | 101,285.29 | |
| Total | 15,671,738.92 | -- |
Details of other items of profits and losses that conform to the definition of non-recurring profit and loss:
□ Applicable ? Not applicable
None.Explanation of defining the non-recurring profit and loss items listed in the Explanatory Announcement No. 1 onInformation Disclosure for Companies Offering Their Securities to the Public - Non-recurring Profit and Loss asrecurring profit and loss items
□ Applicable ? Not applicable
2. Return on equity and earnings per share
| Profits of the reporting period | Weighted return on average equity | Earnings per share | |
| Basic earnings per share (RMB/share) | Diluted earnings per share (RMB/share) | ||
| Net profit attributable to the ordinary shareholders of the Company | 6.10% | 0.31 | 0.31 |
| Net profit attributable to the ordinary shareholders of the Company after deduction of non-recurring profit and loss | 5.85% | 0.30 | 0.30 |
3. Differences in accounting data under domestic and foreign accounting standards
(1) Differences in net profit and net assets between financial reports disclosed in accordance withInternational Accounting Standards and those disclosed in accordance with Chinese Accounting Standardsat the same time
□ Applicable ? Not applicable
(2) Difference between the net profit and net assets in the financial reports disclosed in accordance with bothOverseas Accounting Standards and Chinese Accounting Standards at the same time
□ Applicable ? Not applicable
(3) Reasons for differences in accounting data under domestic and overseas accounting standards. If the dataaudited by an overseas audit institution is adjusted for differences, the name of the overseas audit institutionshall be indicated
4. Others
None.
Section XI Other Reported Data
I. Other Major Social Security IssuesWhether the listed company and its subsidiaries have other major social security issues
□ Yes □ No ? Not applicable
Whether any administrative punishment was imposed during the reporting period
□ Yes □ No ? Not applicable
II. Registration form of reception, investigation, communication, interview and other activitiesduring the reporting period? Applicable □ Not applicable
| Time of reception | Location of reception | Method of reception | Type of reception object | Reception object | Main contents of interview and materials provided | Basic Information index for investigation |
| 2024/1/9 2024/1/10 2024/1/11 | Conference room of the Company | Field survey | Organizations | Harvest Fund, Kaiyuan Securities, Aegon-Industrial Fund, J.P. Morgan Asset Management, Bopu Fund, China Asset Management, China Everwin Asset, CICC Asset Management, China Securities, PICC Pension, Horizon Fund, Future Vessel Capital, Rongtong Fund, and Chongyang Investment | Learn about the operation of the Company; no information provided. | http://www.cninfo.com.cn |
| 2024/2/22 2024/2/23 | Conference room of the Company | Field survey | Organizations | HSBC Jintrust Fund Management, TF Securities, Bosera Funds, Changjiang Securities, FORTUNE & Royal Asset, Huamei Investment | Learn about the operation of the Company; no information provided. | http://www.cninfo.com.cn |
| 2024/3/27 | Conference room of the Company | Telephone communication | Organizations | TF Securities, Regents Capital, Guotai Asset Management, Western Securities, Taiping Asset Management, Shengang Securities, Invesco Great Wall, Value Partners Limited, China Merchants Securities, Shanghai Everbest Investment Managers, Jianshun Investment, Loyal Valley Capital, Ruiyi Investment, Chengluo Investment, Ever Fortune, Hwabao WP Fund, Xingyin Fund, Great Abundance Year Asset, Zhengyuan Investment, Truvalue Asset Management, Yuanlesheng Assets, Springs Capital, Zhongtai Securities, Bosera Fund Management, Union Asset, Panjing Investment, Bin Yuan Capital, Fortune Capital, Hong Ding Wealth Management, Beijing Ding Investment, Century Securities, Changjiang Securities, Harvest Fund, BOC International, Zhihe Assets, Kaiyuan Securities, Gowin AMC, BOC Investment Management, Tourmaline Asset Management, Boyan Ruixuan Venture Capital, Fengpei CAPITAL LLC, China Post Life Insurance, New Thinking Investment, Industrial Securities, Pictet Asset Management, Amundi BOC Wealth Management, Congrong Fund, Shinian Investment, Beijing Eastern Smart Rock Asset | Learn about the operation of the Company; no information provided. | http://www.cninfo.com.cn |
| Management, China International Capital, Jumi Capital, Haoyuan Investment, Western Leadbank FMC, Zhonghai Fund, Qingdao Xingyuan Investment, Pacific Securities, YuanCheng Private Fund, CIB Wealth Management, Long Hang Assets, Beijing Zhenke Fund, DIB Asset Management, Zhejiang Rice Bank Asset Management, Zhongrong International Trust, Honghua Capital, CITIC Prudential Fund, Purekind Fund | ||||||
| 2024/4/12 | Conference room of the Company | On-line communication on network platforms | Others | On-line investor | Learn about the operation of the Company; no information provided. | http://www.cninfo.com.cn |
| 2024/4/23 | Conference room of the Company | Telephone communication | Organizations | TF Securities, China Securities, Invesco Great Wall, Huajin Securities, Shenwan Hongyuan Securities, Rabbit Fund, Shifeng Asset, China Post Life Insurance, Taikang Funds, China Merchants Securities, Huachuang Securities, Macrotrends Fund, Regents Capital, China International Capital, CPIC Fund, Caitong Securities, Zhongtai Securities, Boyan Ruixuan Venture Capital, Perseverance Asset Management, Soochou Asset Management, Guotai Asset Management, Xunyuan Asset, HSBC Jintrust Fund Management, Wanjia Asset, Loyal Valley Capital, Yude Capital, New Thinking, New China Fund, Dongxing Asset Management, Xingyuan Investment, SINO LIFE ASSET, CIB Wealth Management, Tianlang Assets Management, Caixin Economics, CITIC Securities AM, China Universal Asset Management, Pacific Securities, Founder Securities Asset Management, Beijing Longrising Asset Management, Rongtong Fund, CPE Fund, Generali China, Union Asset, Heng An Life, Yinhua Fund, PICTET, Xingheng Fund, Yingda Insurance, Bosera Fund Management, Century Securities, Rongtong Fund, Shanxi Securities, Shanghai Life, BOC Investment Management, Heyong Investment, Gemboom Investment, Xuanyuan Investment, Knight Investment, Mingyu Assets, Truvalue Asset Management, HENGJIAN INTERNATIONAL INVESTMENT HOLDING (HONG KONG), Q.M. Fortune, Hanxiang Investment, Hezhong Yisheng, Shenzhen Hong Ding Wealth Management, Soochow Securities, Changsheng Fund, Ren Bridge Fund, Fortune Capital, BNB Wealth Management, Jt Asset Management, Milestone Assets, Qianhai Jumpstart, Southern Asset Management, G Fund, Orient Securities, BOC Wealth Management, Rongtong Fund, Harvest Fund, New China Asset, Chengluo Investment, Asia-Pacific P&C, HFT Investment Management, CITIC Prudential Fund, Intewise Capital, China Life AMP Asset Management, Orient Securities, Lead Wolf Assets, Current VC, Zhengyuan Investment, Lead Wolf Assets, Guanghuiyuan Assets, China Securities, Truvalue Asset Management, Huatai-Pinebridge Fund Management, PH Capital, Guotai Junan Securities, Zinggo Fund, Jinghe Assets, Ping An Asset Management, Chuanghua Investment, Penghua Fund, Horizon Fund, Shanghai Chongyun, Changjiang Pension, BNB Wealth Management, CCB Principal Asset Management, PICC Asset Management, Changan Fund Management, Jianshun Investment, Ren Bridge Fund, Jianghai Securities, dealers of Sealand Securities, Heyong Investment, Rosefinch Fund | Learn about the operation of the Company; no information provided. | http://www.cninfo.com.cn |
| 2024/4/30 2024/5/6 | Conference room of the Company | Field survey | Organizations | Tianhong Asset Management, TF Securities, Changjiang Pension, Changjiang Securities, Zhonggeng Fund | Learn about the operation of the Company; no information provided. | http://www.cninfo.com.cn |
| 2024/5/27 2024/5/28 2024/5/29 2024/5/30 | Conference room of the Company | Field survey | Organizations | Origin Asset Management, Jinding Capital, Regent Capital, Mondrian, Jefferies Securities, CICC Securities, Bosera Fund Management, Current VC, Hourunde Fund, GF Fund Management, China Securities, | Learn about the operation of the Company; no information provided. | http://www.cninfo.com.cn |
| 2024/6/19 | Conference room of the Company | Field survey | Organizations | TF Securities, Harvest Fund, CITIC Securities, China Post AMC, Yingda Securities, Beijing Ding Investment, BNB Wealth Management, Guotai Junan Assets Management, Truvalue Asset Management, China Universal Asset Management, Baichuan Asset Management | Learn about the operation of the Company; no information provided. | http://www.cninfo.com.cn |
III. Fund transfers between the Company & controlling shareholders and related parties
□ Applicable ? Not applicable
Shenzhen Topband Co., Ltd.
July 31, 2024