Zhejiang NHU Company Ltd.2024 Semi-Annual Report
【August 2024】
Section I Important Notes, Contents, and Definitions
The Board of Directors and its members, Board of Supervisors and its members,and senior executives of the Company hereby guarantee that the informationpresented in this semi-annual report is authentic, accurate, complete and free offalse records, misleading statements or material omissions, and they will bearindividual and joint liabilities for such information.胡柏藩 (Hu Baifan), the Company’s legal representative, 石观群 (Shi Guanqun),the officer in charge of accounting, and 何江勇 (He Jiangyong), the head ofaccounting department hereby declare that they guarantee the financialstatements in this semi-annual report are authentic, accurate and complete.All members of the Board of Directors have attended the meeting of the Boardof Directors for deliberation of this semi-annual report.The future plan and other forward-looking information disclosed in this semi-annual report shall not be regarded as a commitment to investors. We kindlyremind investors of all possible risks in investments. The company provides adetailed description of the potential risks and countermeasures that may exist inthe company's operations in X. Risks and countermeasures under Section IIIManagement Discussion and Analysis section of this report. We kindly remindinvestors of all possible risks in investments.The Company will not distribute cash dividend, distribute bonus shares, ordistribute shares from capital reserve during the current reporting period.
This Semi-Annual Report is an English translation of the Chinese Semi-Annual Report. In case the English version doesnot conform to the Chinese version, the Chinese version prevails.
Contents
Section I Important Notes, Contents, and Definitions ...... 1
Section II Company Profile and Key Financial Indicators ...... 5
Section III Management Discussion and Analysis ...... 8
Section IV Corporate Governance ...... 23
Section V Environmental and Social Responsibilities ...... 26
Section VI Significant Events ...... 35
Section VII Movements in Shares and Information about Shareholders ...... 43
Section VIII Preferred Shares ...... 48
Section IX Bonds ...... 49
Section X Financial Report ...... 50
Documents Available for Reference
I. Financial statements signed and sealed by the Company’s legal representative, officer in charge of accounting,and head of accounting department;II. Original copy of all the Company's documents and announcements published on the newspapers designated byCSRC within the reporting periodIII. Other documents for reference.
Definitions
| Abbreviations | Refers to | Contents of definitions |
| The Company, NHU | Refers to | ZHEJIANG NHU CO., LTD. |
| CSRC | Refers to | China Securities Regulatory Commission |
| PPS | Refers to | Polyphenylene Sulfide |
| PPA | Refers to | Poly Phthalamide |
| HA | Refers to | New material project, products including HDI and IPDA |
| HDI | Refers to | Hexamethylene Diisocyanate| |
| IPDA | Refers to | Isophorone Diamine |
| VOC | Refers to | Volatile Organic Compound |
| HSE | Refers to | Health, safety and environment |
| ESG | Refers to | Environmental, social and corporate governance |
| Ecovadis | Refers to | Corporate social responsibility assessment and rating |
| CLA | Refers to | Karon anhydride |
| NBC | Refers to | Azabicycles |
| SA | Refers to | Anisole |
| EJ | Refers to | Nylon material |
| 7S | Refers to | Seiri、Seiton、Seiso、Seiketsu、Shitsuke、Safety and Saving |
| A4 | Refers to | Cystine Project |
Section II Company Profile and Key Financial IndicatorsI. Company profile
| Stock abbreviation | NHU | Stock code | 002001 |
| Stock Exchange | Shenzhen Stock Exchange | ||
| Company Name in Chinese | 浙江新和成股份有限公司 | ||
| Company Abbreviation in Chinese | 新和成 | ||
| Company name in foreign language (if any) | ZHEJIANG NHU COMPANY LTD. | ||
| Company Abbreviation in foreign language (if any) | NHU | ||
| Legal representative | Hu Baifan | ||
II. Contact information
| Items | Board secretary | Securities affairs representative |
| Name | 石观群（Shi Guanqun） | 曾淑颖 (Zeng Shuying) |
| Contact address | No.418 Xinchang Dadao West Road, Xinchang, Zhejiang, P.R.China | No.418 Xinchang Dadao West Road, Xinchang, Zhejiang, P.R.China |
| Tel. | +86 575 86017157 | +86 575 86017157 |
| Fax | +86 575 86125377 | +86 575 86125377 |
| E-mail address | sgq@cnhu.com | 002001@cnhu.com |
III. Other Information
1. Company’s Contact Information
Whether the Company’s registered address, office address, zip code, website and e-mail address has changed during the reportingperiod
□ Applicable √ Not applicable
The Company’s registered address, office address, zip code, website and e-mail address have not changed during the reportingperiod, which can be found in the 2023 Annual Report.
2. Information Disclosure and Location
Whether information disclosure and location has changed during the reporting period
□ Applicable √ Not applicable
The name of the Company’s selected information disclosure newspaper, the URL of the website designated by the CSRC wherethe semi-annual report is posted, and the place where the Company’s semi-annual report is available have not changed during thereporting period, which can be found in the 2023 Annual Report.
3. Other relevant Information
Whether other relecant information has changed during the reporting period
□ Applicable √ Not applicable
IV. Key accounting data and financial indicators
Whether the Company needs to perform retroactive adjustment or restatement on financial data of prior years
□Yes √ No
| Items | The Current Reporting Period | The Same Period of the Previous Year | Increase/ Decrease at the end of the current reporting period compared with the same period of the previous year |
| Operating revenue (yuan) | 9,844,712,214.36 | 7,418,514,576.09 | 32.70% |
| Net profit attributable to shareholders of listed company (yuan) | 2,204,361,642.96 | 1,483,229,236.96 | 48.62% |
| Net profit attributable to shareholders of listed company after deducting non-recurring profit or loss (yuan) | 2,157,462,467.70 | 1,375,218,885.82 | 56.88% |
| Net cash flows from operating activities (yuan) | 2,138,324,059.35 | 1,235,562,621.93 | 73.06% |
| Basic EPS (yuan/share) | 0.71 | 0.48 | 47.92% |
| Diluted EPS (yuan/share) | 0.71 | 0.48 | 47.92% |
| Weighted average ROE | 8.58% | 6.09% | Increased by 2.49 percentage points |
| Items | Jun. 30, 2024 | Dec. 31, 2023 | Increase/Decrease at the end of the current reporting period compared with the end of the previous year |
| Total assets (yuan) | 40,094,294,896.00 | 39,156,246,864.67 | 2.40% |
| Net assets attributable to shareholders of listed company (yuan) | 25,658,295,255.25 | 24,804,662,320.99 | 3.44% |
V. Differences in accounting data under Chinese accounting standards and overseasaccounting standards
1. Difference in net profit and net assets in financial statements disclosed respectively under IFRS Standards and Chineseaccounting standards
□ Applicable √ Not Applicable
The Company has no difference in net profit or net assets in financial statements disclosed respectively under IFRS Standards andChinese accounting standards.
2. Difference in net profit and net assets in financial statements disclosed respectively under overseas accounting standardsand Chinese accounting standards
□ Applicable √ Not Applicable
The Company has no difference in net profit or net assets in financial statements disclosed respectively under overseas accountingstandards and Chinese accounting standards.
VI. Non-recurring profit or loss
√ Applicable □ Not Applicable
Unit: RMB Yuan
| Items | Amount | Remarks |
| Gains or losses on disposal of non-current assets, including write-off of provision for impairment | -1,128,442.54 | |
| Government grants included in profit or loss (excluding those closely related to operating activities of the Company, satisfying government policies and regulations, and continuously enjoyed with certain quantity or quota based on certain standards) | 59,818,451.66 | |
| Gains or losses on changes in fair value of held-for-trading financial assets and held-for-trading financial liabilities, and investment income from disposal of held-for-trading financial assets and held-for-trading financial liabilities, excluding those arising from hedging business related to operating activities | -4,445,860.49 | |
| Gains or losses on assets consigned to the third party for investment or management | 808,128.72 | |
| Other non-operating revenue or expenditures | -203,096.63 | |
| Less: Enterprise income tax affected | 7,854,767.77 | |
| Non-controlling interest affected (after tax) | 95,237.69 | |
| Total | 46,899,175.26 |
Remarks on other profit or loss satisfying the definition of non-recurring profit or loss:
□ Applicable √ Not Applicable
The Company has no other profit or loss satisfying the definition of non-recurring profit or loss.Remarks on defining non-recurring profit or loss listed in the “Interpretation Pronouncement on Information Disclosure Criteria forPublic Companies No. 1 – Non-Recurring Profit or Loss” as recurring profit or loss.
□ Applicable √ Not Applicable
The Company has no situation of defining non-recurring profit or loss listed in the “Interpretation Pronouncement on InformationDisclosure Criteria for Public Companies No. 1 – Non-Recurring Profit or Loss” as recurring profit or loss.
Section III Management Discussion and Analysis
I. The main business of the Company during the reporting periodThe Company is a national high-tech company mainly engaged in the production and sales of nutrition, aroma chemicals,new polymer materials, and APIs. It focuses on fine chemicals, adheres to the concept of innovation-led developmentand competition-driven growth, and continuously develops various functional chemicals based on the two coreplatforms of chemical and biology, providing value-added services and solutions to customers in more than 100countries and regions around the world. It continuously improves the quality of human life with high-quality, healthyand green products, and creates sustainable value for stakeholders. With leading technology, scientific management andsincere service, the Company has become one of the top 100 national fine chemical companies, one of the top 10companies in China’s light of industry fragrance and a well-known special engineering plastics manufacturer.
1. Main products and applications
Nutrition: The current products mainly cover vitamins, amino acids and pigments, etc. Specific products include vitamin E, vitaminA, vitamin C, methionine, vitamin D3, biotin, coenzyme Q10, carotenoids, vitamin B5, vitamin B6, vitamin B12, taurine, serine, etc.They are mainly used in feed additives and nutrition supplements of food, beverages, health food, etc. The Company activelyimplements the serialized and differentiated development of nutrition, and continuously improves the competitiveness of its productsby optimizing the processing line and tackling key issues. In addition, through internal integration and external cooperation, itembraces the ideology of open cooperation. It actively deploys cutting-edge biotechnology, and builds the Company’s “Bio+”platform.Aroma Chemicals: At present, our main fragrance products include linalool, citral, and cis-3-hexenol series, and methyldihydrojasmonate, raspberry ketone and ligustral, which are widely used in personal care, cosmetic and food fields. From theperspective of competitiveness and market share, NHU becomes an important supplier in the global aroma chemicals industry. TheCompany continuously enriches the varieties of fragrance products to meet the changing market demands.Polymer materials: The company focuses on the development of high-performance polymers and key intermediates, moderatedevelopment of downstream applications of materials, the main products include polyphenyl sulfide (PPS), high temperature nylon(PPA), HDI, IPDA, downstream applications include automotive, electronic appliances, environmental protection, industrialapplications and other fields. At present, the company has created a whole industry chain of PPS from basic raw materials to highpolymer, then to modified processing, to special fibers, becoming the only domestic enterprise that can stably produce fiber grade,injection grade, extrusion grade, coating grade PPS, and is developing new material projects in the whole industry chain.APIs: The main products are concentrated in the series of vitamins and antibiotics. The main products include moxifloxacinhydrochloride, vitamin A, vitamin D3, etc., which are mainly used as active pharmaceutical ingredients for processing and producingpharmaceutical preparations.
2. Main business models
(1) Procurement model
The company has always adhered to the procurement principle of “fairness, transparency and optimal cost”, adopted the dual strategyof long-term strategic cooperation and open competitive procurement, deepened the market trend and market analysis, and ensured
the steady supply of strategic materials. Pay attention to source procurement, reduce intermediate links, reduce procurement costs.Promote sunshine procurement, establish an information system, and make the procurement process transparent, standardized andefficient. Select suppliers with good reputation and quality products, and sign quality assurance agreements to ensure stable andreliable performance of purchased items. We will give priority to environmentally friendly, energy-saving and sustainable productsand services, encourage suppliers to achieve green production and operation, and gradually promote carbon emission reduction andcarbon neutrality plans. Select suppliers with a good sense of social responsibility, pay attention to their social responsibilityperformance, establish long-term cooperative relations, and achieve sustainable development of procurement activities.
(2) Production model
The Company has always been adhering to the production strategy based on the principle of “production and sales coordination,efficient operation, excellent quality, and cost leadership”. The Company maintained a balance between production and salesthrough analysis of changes in market demands, effective response to repeated epidemic waves and dual-control power cuts, andreasonable production plans. In addition, the Company keeps innovating the production model, digging out internal potentials, andoptimizing the production process, in order to promote safe, green, standardized and efficient production, and continuously improvethe competitiveness of its products.
(3) Sales model
The Company has always been adhering to the “customer-centric, market-oriented” sales strategy. It divides business lines by productapplication fields, and establishes a sales model that suits market needs according to market characteristics and industry practices.Most of the Company’s sales are achieved through direct sales. By doing so, it establishes long-term and stable strategic cooperativerelationships with end customers to create greater value for them. Meanwhile, it also selects excellent agents or distributors fordistribution. By doing so, it services customers indirectly based on market and customer features. At the same time, through measuressuch as holding customer service months, strengthening customer strategic cooperation, establishing customer evaluation models,and optimizing customer classification management, we will continue to expand market areas, increase new large-scale customers,and enhance brand influence.
3. Key performance drivers
The Company has built four modern industrial bases across the country. It adheres to the development strategy of integration,serialization and synergy, and insists on innovation-driven. Relying on the solid foundation of fine chemical industry, it focuses on“chemical+” and “biology+” to form NHU featured R&D models with industrial clusters, and technology and industry platformsinterdependent. Not only can its products connect basic chemical raw materials in the upstream, but also extend to specialintermediates, nutrition, aroma chemicals, new polymer materials, and APIs in the downstream. It has formed a product networkstructure to resist risks and respond to market emergencies.During the reporting period, the development and construction of new projects and new products were carried out in an orderlymanner. In the nutrition sector, the production capacity of the methionine project released, achieving normal production and sales of300,000 tons/year of products, and enhancing market competitiveness. The 180,000 tons/year liquid methionine (conversion) projectof the company and China Petroleum & Chemical Corporation was put into construction; 4,000 tons/year cystine project was instable production operation, the pilot project of glufosinate-ammonium project went smoothly . In the aroma chemicals sector,theseries of aldehyde projects, SA projects, and the first phase project of the spice industrial park were steadily promoted. In the newpolymer materials sector, the development of PPS new field applications was smooth, continuous detail optimization of EJ projectand promotion of large-scale production approval, the HA project products were smoothly produced and sold.During the reporting period, the company's main product market prices were restored, and the company took multiple measures toexpand market share, accelerate the market development of new products and applications, strengthen sales team building, optimizecustomer service, strengthen brand building, and achieve steady growth in the sales volume of its main products. At the same time,
the company achieved stable growth in performance by continuously innovating to reduce costs and increase efficiency, optimizingproduction processes, resource allocation, energy consumption, and reasonably reducing operating costs.During the reporting period, the Company’s main business and its business model remained unchanged.
II. Core competitiveness analysisSince its establishment, the Company has focused on fine chemicals, and adhered to innovation-driven development. Throughdecades of development, it has gradually formed an industrial system with nutrition, aroma chemicals, new polymer materials andAPIs as its main business. The market share of its main products is among the top tier in the world market. The Company’s corecompetitiveness lies in its cooperate culture, R&D, management, talent and brand.
1. Corporate culture
Adhering to the enterprise objective of “creating wealth, employees’ success, and benefit the society”, core values of “new, harmony,union”, business philosophy of “create wealth, balanced and sustainable”, and enterprise spirit of “realism, innovation, high-qualityand efficiency”, the Company innovates its operation, and continuously improves management, to ensure the steady development.Under the guidance of the “teacher culture”, the Company pursues high-quality and sustainable development, creates spiritual wealthand material wealth, provides a platform and opportunity for employees to develop and realize life value, and contributes to socialinnovation development, green development, and shared development. During the reporting period, the Company deepened culturalpublicity and implementation, organized corporate culture lectures, strengthened the integration of corporate culture andmanagement,promoting the improvement of management capabilities.
2. R&D
The company adheres to the research and development concept of "demand-oriented, internal and external integration", and hasinvested more than 5% of its operating income in research and development for many consecutive years. Through the establishmentof an innovative organizational structure at three levels of science, technology and application, the company has formed a three-levelinnovative research and development system of scientific research, technology transformation and technology application, andformed a research and development model with the General research Institute as the core, research branches, four production bases,NHU-Zhejiang University joint research and development center, and external scientific research cooperation institutions. Thecompany cooperates closely with well-known research institutes and universities at home and abroad, such as Zhejiang University,Chinese Academy of Sciences, Jiangnan University, China Agricultural University, Zhejiang University of Technology, and CysBioBiotechnology Co., LTD., organizing and utilizing global basic science research resources to jointly carry out prospective and appliedresearch in chemistry. As the core of enterprise technology innovation, the research institute of the company has set up biomedicallaboratory, supercritical reaction laboratory, engineering equipment research center and other laboratories, equipped with 600M ultra-low temperature probe nuclear magnetic resonance instrument and other world advanced scientific research equipment, master thesupercritical reaction, high vacuum distillation, high pressure hydrogenation continuous, peroxide and continuous crystallization andother leading technologies at home and abroad. It has been rated as a national enterprise technology center, a national postdoctoralresearch workstation, and a national model academician expert workstation.
3. Production management
The Company has always been adhering to the production strategy based on the principle of “production and sales coordination,efficient operation, excellent quality, and cost leadership” and the HSE guideline of “safety first, green development, fullparticipation, and continuous improvement”. The Company takes planning as the goal, cost management as the main line, andmaximizing company benefits as the principle for the allocation of resources. Through oriented management and the cyclic operationof planning, organization, implementation and control of the operation process, the Company continuously strengthens the level of
cost control. Meanwhile, it also improves the level of digitalization and intelligence. Through process reform, efficient management,and intelligent operation, it promotes the continuous improvement of management efficiency. In addition, the Company is committedto the development of green chemicals, vigorously promotes clean production, recyclable economy and 7S on-site management, andadopts an environmental governance model that focuses on source control and final disposal. It is determined to take the road ofsustainable development.
4. Process and equipment
The Company values highly the effective combination of process and equipment. It has a process and equipment research institute,and cooperates with famous engineering companies and scientific research institutes at home and abroad. Through joint innovationand other methods, the Company improves the overall level of its process and equipment. The Company is dedicated to the R&D ofprocess and equipment towards larger scale, better airtightness, greater continuity, and higher level of automation, aiming to saveenergy and reduce emissions, to improve productivity and product quality, to increase the intrinsic safety of production process, tolower production costs, and to improve the level of automation. Currently, the Company has developed various efficient reaction andseparation platforms including continuous reaction, high vacuum distillation, continuous extraction, continuous crystallization,efficient filtration, simulated moving bed separation, microchannel and micro-interface reaction with respect to specific processes,and remarkable results have been achieved in continuous transformation of reaction, vapor-liquid-solid heterogeneous reaction, andseparation of air sensitive and heat sensitive materials through continuous improvement of large-size equipment.
5. Talent
The company has always adhered to the management concept of "standardized and efficient" and the employment concept of "bothvirtue and talent, people and posts matching", and has shaped a pioneering and innovative, pragmatic, and efficient talent team and along-term stable and excellent management team with a high sense of responsibility, to promote the sustainable, healthy and rapiddevelopment of the company. The company continues to strengthen the construction of talent supply chain, constantly improve thetalent training system, strengthen the training of "management talents, skilled talents, international talents, core technical talents, andleadership talents", systematically train and reserve college students, introduce various professional talents, continue to promote thetraining of reserve cadres such as the sailing class and the departure class, and promote the cross-sequence rotation training of thefont type. Promote the improvement of management and professional ability, and build a balanced talent structure.
6. Brand
The company adheres to the "integrity-based", and has always adhered to serving customers and creating industry value withcustomers as the goal pursued by enterprises over the years. Through technological innovation, the company continues to providecustomers with safe and high-quality products and efficient and satisfactory services. After years of development and accumulation,the company has won many honorary titles in the global fine chemical industry, such as one of China's top ten feed additive brands,one of the country's large vitamin feed additive enterprises, and won the list of China's top 500 petroleum and chemical enterprises(comprehensive) and China's top 100 basic chemical raw material manufacturing enterprises. Good market reputation has laid asolid foundation for the healthy and long-term development of the company. In addition, the company has repeatedly won the top30 best internal control in Zhejiang Province, the mainstream media listed companies "Best Investor relations Award", "Best Boardof Directors award" and other awards, widely favored by the market and investors. During the reporting period,the company wasrated as "Zhejiang Export Famous Brand", "Top 100 Private Enterprises in Shaoxing City 2024", and won the "15th Tianma Awardfor Investor Relations of Chinese Listed Companies Tianma Award for Shareholder Return" and "Top 30 Zhejiang ListedCompanies Best Internal Control Award in 2023".
7. Globalization
Globally oriented, the company has set up overseas sales companies in Hong Kong, Singapore, Germany, Mexico, Brazil and otherregions or countries, and built overseas research institutes in Singapore to connect global innovation resources, providing
comprehensive solutions in the fields of nutrition and health, daily care, transportation, environmental protection, energy, and otherfields for customers in more than 100 countries and regions around the world. We will strive to optimize the allocation of resources athome and abroad, help expand overseas markets and provide localized services, and continue to move toward "Global NHU".
8. Intelligent Manufacturing
The company establishes the "one headquarters and multiple bases" management and control mode, builds a large-middle desktechnical route with new and successful characteristics, and strengthens the awareness of data management and the managementplatform support system by building the business center, data center and technology center, so as to realize the smoothmanagement process of the headquarters and production base, the same source of business data, and supports the efficient businessdecision-making of enterprises. The company constantly promotes automation, informatization and digitalization, strives to createa new and characteristic intelligent manufacturing system, build smart factories, promote intelligent operation management,achieve efficient, flexible, punctual, lean production of high-quality products, better meet and serve customers, and shape newadvantages of industrial competition.III. Main Business AnalysisOverviewRefer to “I. The Main Business of the Company during the Reporting Period”Year-on-year changes in key financial data
Unit: RMB Yuan
| Item | The Current Reporting Period | The Same Period of the Previous Year | YoY growth rate | Reasons for Changes |
| Operating revenue | 9,844,712,214.36 | 7,418,514,576.09 | 32.70% | It was mainly due to the increase in volume and price of methionine and vitamins during the reporting period. |
| Operating Cost | 6,191,379,061.37 | 4,989,533,832.95 | 24.09% | It was mainly due to the increase in sales of major products during the reporting period. |
| Sales Expenses | 74,869,581.39 | 66,941,370.80 | 11.84% | It was mainly due to the increase in remuneration of sales staff during the reporting period. |
| Administration Expenses | 295,567,957.53 | 244,646,451.17 | 20.81% | It was mainly due to the increase in personnel remuneration and loss on work stoppage of CLA and NBC projects during the reporting period. |
| R&D Expense | 480,961,724.14 | 416,575,391.59 | 15.46% | It was mainly due to the increase in direct material inputs in research and development projects during the reporting period. |
| Financial Expenses | 71,051,340.26 | -37,162,425.39 | 291.19% | It was mainly due to the decrease in interest income and foreign exchange gains during the reporting period. |
| Income Tax Expense | 482,498,449.43 | 251,283,197.83 | 92.01% | It was mainly due to the increase in total profit during the reporting period. |
| Net Cash Flows from Operating Activities | 2,138,324,059.35 | 1,235,562,621.93 | 73.06% | It was mainly due to the increase in revenue and the rise in payment for goods during the reporting period.. |
| Net Cash Flows from Investing Activities | -745,685,689.42 | -2,089,507,038.68 | 64.31% | It was mainly due to t lower expenditure on acquisition of fixed assets during the reporting period |
| Item | The Current Reporting Period | The Same Period of the Previous Year | YoY growth rate | Reasons for Changes |
| Net Cash Flows from Financing Activities | -1,070,263,034.77 | -865,319,516.45 | -23.68% | It was mainly due to the decrease in bank loans during the reporting period. |
| Net Increase in Cash and Cash Equivalents | 383,746,932.62 | -1,643,950,329.76 | 123.34% | It was mainly due to the increase in payment for goods and the decrease in expenditure on the purchase and construction of fixed assets during the reporting period. |
Significant changes in the composition of the Company’s profit or sources of profit during the reporting period
□ Applicable √ Not applicable
No significant changes in the composition of the Company’s profit or sources of profit during the reporting period.Operating Income Structure
Unit: RMB Yuan
| Items | The Current Reporting Period | The Same Period of the Previous Year | YoY growth rate | ||
| Amount | % to total | Amount | % to total | ||
| Total | 9,844,712,214.36 | 100% | 7,418,514,576.09 | 100% | 32.70% |
| By industry | |||||
| Pharmaceutical chemicals | 9,076,866,530.54 | 92.20% | 6,771,211,341.41 | 91.27% | 34.05% |
| Others | 767,845,683.82 | 7.80% | 647,303,234.68 | 8.73% | 18.62% |
| By product | |||||
| Nutrition | 6,680,260,846.33 | 67.86% | 4,830,212,886.75 | 65.10% | 38.30% |
| Aroma Chemicals | 1,924,696,068.19 | 19.55% | 1,631,864,728.45 | 22.00% | 17.94% |
| New polymer materials | 722,250,116.77 | 7.34% | 578,308,624.04 | 7.80% | 24.89% |
| Others | 517,505,183.07 | 5.25% | 378,128,336.85 | 5.10% | 36.86% |
| By region | |||||
| Domestic sales | 4,404,308,500.06 | 44.74% | 3,557,426,385.63 | 47.95% | 23.81% |
| Overseas sales | 5,440,403,714.30 | 55.26% | 3,861,088,190.46 | 52.05% | 40.90% |
| By sales model | |||||
| Direct sales | 7,519,499,621.91 | 76.38% | 5,896,114,550.44 | 79.48% | 27.53% |
| Agent sales | 2,325,212,592.45 | 23.62% | 1,522,400,025.65 | 20.52% | 52.73% |
Industry, product, or regions accounting for more than 10% of the Company’s operating revenue or profit
√ Applicable □ Not applicable
Unit: RMB Yuan
| Items | Operating revenue | Operating cost | Gross rate | Growth rate of operating revenue | Growth rate of operating cost | Growth rate of gross rate |
| By industry | ||||||
| Pharmaceutical chemicals | 9,076,866,530.54 | 5,615,207,021.00 | 38.14% | 34.05% | 23.86% | Increased by 5.09 percentage points |
| By product | ||||||
| Nutrition | 6,680,260,846.33 | 4,284,597,858.42 | 35.86% | 38.30% | 24.73% | Increased by |
| Items | Operating revenue | Operating cost | Gross rate | Growth rate of operating revenue | Growth rate of operating cost | Growth rate of gross rate |
| 6.98 percentage points | ||||||
| Aroma Chemicals | 1,924,696,068.19 | 968,275,425.04 | 49.69% | 17.94% | 22.29% | Decreased by 1.79percentage points |
| By region | ||||||
| Domestic sales | 4,404,308,500.06 | 2,828,623,386.54 | 35.78% | 23.81% | 8.66% | Increased by 8.96 percentage points |
| Overseas sales | 5,440,403,714.30 | 3,362,755,674.83 | 38.19% | 40.90% | 40.92% | stay level |
When the statistical caliber of the Company’s main business data is adjusted in the reporting period, the Company’s main businessdata in the most recent period should be subject to the one after the statistical caliber adjusted at the end of the reporting period.
□ Applicable √ Not applicable
IV. Non-main business analysis
√ Applicable □ Not Applicable
Unit: RMB Yuan
| Items | Amount | % to total profit before tax | Reason for balance | Whether has continuity |
| Investment income | 47,554,398.65 | 1.76% | It was mainly due to the transfer of equity interests in subsidiaries and profits realized by associates during the reporting period. | No |
| Gains on changes in fair value (Losses are shown with a "- " sign) | -4,445,860.49 | -0.16% | It was mainly due to changes in the fair value of forward exchange products during the reporting period. | No |
| Other income | 130,215,288.28 | 4.82% | It was mainly due to the receipt of government grants during the reporting period. | No |
| Credit impairment loss (Losses are shown with a "-" sign) | -98,041,802.36 | -3.63% | It was mainly due to the increase in credit impairment losses as a result of the increase in accounts receivable as a result of the increase in revenue during the reporting period. | No |
| Impairment losses on assets (Losses are shown with a "-" sign) | -10,175,642.76 | -0.38% | It was mainly due to due to the impairment of losses arising from the provision for decline in value of inventories during the reporting period. | No |
| Non-operating revenue | 2,373,545.46 | 0.09% | It is mainly due to income from claims. | No |
| Non-operating expenditures | 3,797,633.81 | 0.14% | This was mainly due to losses on assets scrapped during the reporting period. | No |
V. Assets and liabilities analysis
1. Significant changes in asset composition
Unit: RMB Yuan
| Items | Jun. 30, 2024 | Dec. 31, 2023 | Percentage of change | Remarks on significant changes | ||
| % to total | Amount | % to total | % to total | |||
| Cash and bank balances | 4,901,773,897.05 | 12.23% | 4,543,361,146.98 | 11.60% | Increased by 0.63 percentage points | |
| Accounts receivable | 3,246,276,963.34 | 8.10% | 2,483,266,952.88 | 6.34% | Increased by 1.76 percentage points | |
| Inventories | 4,289,303,730.42 | 10.70% | 4,318,878,875.34 | 11.03% | Decreased by 0.33 percentage points | |
| Long-term equity investments | 862,008,342.50 | 2.15% | 697,145,200.08 | 1.78% | Increased by 0.37 percentage points | |
| Fixed assets | 22,034,912,795.44 | 54.96% | 21,860,082,637.13 | 55.83% | Decreased by 0.87 percentage points | |
| Construction in progress | 912,349,768.88 | 2.28% | 1,621,882,507.56 | 4.14% | Decreased by 1.86 percentage points | |
| Right-of-use assets | 5,658,877.20 | 0.01% | 6,603,631.56 | 0.02% | Decreased by 0.01 percentage points | |
| Short-term borrowings | 1,576,838,512.31 | 3.93% | 1,235,688,062.90 | 3.16% | Increased by 0.77 percentage points | |
| Contract liabilities | 174,322,469.67 | 0.43% | 251,008,240.97 | 0.64% | Decreased by 0.21 percentage points | |
| Long-term borrowings | 6,551,494,021.20 | 16.34% | 6,821,643,194.58 | 17.42% | Decreased by 1.08 percentage points | |
| Lease liabilities | 4,299,247.61 | 0.01% | 5,240,136.43 | 0.01% | stay level | |
2. Major overseas assets
□ Applicable √ Not applicable
3. Assets and liabilities at fair value
√ Applicable □ Not Applicable
Unit: RMB Yuan
| Items | Opening balance | Gains on changes in fair value | Accumulated changes in fair value included in equity | Provision for impairment made in the current period | Amount purchased during the reporting period | Amount sold during the reporting period | Other changes | Closing balance |
| Financial assets | ||||||||
| 1. Held-for-trading financial assets (derivative financial assets excluded) | 145,000,000.00 | 145,000,000.00 | 0.00 | |||||
| Items | Opening balance | Gains on changes in fair value | Accumulated changes in fair value included in equity | Provision for impairment made in the current period | Amount purchased during the reporting period | Amount sold during the reporting period | Other changes | Closing balance |
| 2. Derivative financial assets | 28,056,050.95 | -19,314,954.56 | 8,741,096.39 | |||||
| Subtotal of financial assets | 173,056,050.95 | -19,314,954.56 | 145,000,000.00 | 8,741,096.39 | ||||
| Total | 173,056,050.95 | -19,314,954.56 | 145,000,000.00 | 8,741,096.39 | ||||
| Financial liabilities | 0.00 | 0.00 | 0.00 | 0.00 |
Whether the Company has significant changes in measurement attributes of main assets during the reporting period
□ Yes √ No
4. Restrictions on assets as of the end of the reporting period
Unit: RMB Yuan
| Items | Book balance | Carrying amount | Type of restriction | Restrictions |
| Cash and bank balances | 55,388,324.90 | 55,388,324.90 | pledged | Banker's acceptance deposit |
| 1,641,394.48 | 1,641,394.48 | pledged | Letter of Credit Deposit | |
| 3,830,850.00 | 3,830,850.00 | pledged | customs Deposit | |
| 872,914.81 | 872,914.81 | pledged | Safety Construction deposit | |
| 854,083.87 | 854,083.87 | pledged | Project works labor wage deposit | |
| 661,888.24 | 661,888.24 | pledged | Water deposit | |
| 8,183,592.83 | 8,183,592.83 | pledged | Letter of Guarantee Deposit | |
| 23,500.00 | 23,500.00 | pledged | ETC Deposit | |
| Notes receivable | 32,594,214.73 | 32,594,214.73 | pledged | Opening a pledge of banker's acceptances |
| Receivables financing | 174,672,943.58 | 174,672,943.58 | pledged | Opening a pledge of banker's acceptances |
| Fixed assets | 94,874,505.48 | 77,901,231.39 | mortgaged | Mortgage to a bank for the purpose of obtaining a loan |
| Intangible assets | 10,042,866.95 | 10,042,866.95 | mortgaged | Mortgage to a bank for the purpose of obtaining a loan |
| Total | 383,641,079.87 | 366,667,805.78 |
VI. Investment status analysis
1. Overall information
√ Applicable □ Not Applicable
| Investments during the reporting period (yuan) | Investments of the preceding period (yuan) | Percentage of change |
| 848,541,432.20 | 2,011,618,396.22 | -57.82% |
2. Significant equity investments made during the reporting period
□ Applicable √ Not Applicable
3. Significant non-equity investments in progress during the reporting period
□ Applicable √ Not Applicable
4. Investments in financial assets
(1) investments in securities
□ Applicable √ Not Applicable
There is no investment in securities during the reporting period.
(2) Investments in derivatives
√ Applicable □ Not Applicable
1） Derivative investments for hedging purposes during the reporting period
√ Applicable □ Not Applicable
Unit: RMB 0,000 yuan
| Types of Derivatives Investments | Initial Investment Amount | Opening amount | Gains or losses on changes in fair value for the period | Accumulated fair value changes recorded in equity | Amount purchased during the reporting period | Amount sold during the reporting period | End of period amount | Investment amount at the end of the period as a percentage of the company's net assets at the end of the reporting period |
| Forward contracts | 195,647.20 | 195,647.20 | -744.44 | 288,974.90 | 381,173.30 | 103,448.80 | 4.03% | |
| Structured Forward Contracts | 0 | 0 | 299.85 | 85,443.50 | 26,536.50 | 58,907.00 | 2.30% | |
| Total | 195,647.20 | 195,647.20 | -444.59 | 374,418.40 | 407,709.80 | 162,355.80 | 6.33% | |
| description of the accounting policies and specific principles of accounting for hedging operations during the reporting period, and whether there have been any significant changes compared to the previous reporting period | The Company accounts for the hedging business conducted in accordance with the relevant provisions of the Ministry of Finance's AS 22 - Recognition and AS 23 - Transfer of Financial Assets and AS 37 - Presentation of Financial Instruments and its guidance. There were no significant changes in accounting policies and specific principles of accounting compared with the previous reporting period. | |||||||
| Description of actual profit or loss for the reporting period | In order to reduce the impact of exchange rate fluctuations on the Company's operating results, the Company carried out foreign exchange hedging business in accordance with a certain percentage of its export business, with business varieties mainly including forward exchange settlement and other foreign exchange derivative products, all of which were within the expected scale of sales business, and the actual gain on derivatives at the end of the reporting period was 7.55 million yuan. | |||||||
| Description of the hedging effect | The Company carries out foreign exchange hedging business based on the principle of exchange rate risk neutrality. By carrying out foreign exchange hedging business, the Company reduces the impact of exchange rate | |||||||
| fluctuation on the Company's operation and effectively controls the operation risk. | |
| Derivatives Investment Funding | Self-funded. |
| Risk analysis and description of control measures for derivative positions during the reporting period (including but not limited to market risk, liquidity risk, credit risk, operational risk, legal risk, etc.) | In order to prevent exchange rate risk, the Company and its subsidiaries have carried out derivative business and the Company and its subsidiaries have strictly implemented the "Foreign Exchange Hedging Business Management Regulations". |
| Changes in market prices or product fair values of invested derivatives during the reporting period, and the analysis of the fair value of derivatives should disclose the specific methods used and the setting of relevant assumptions and parameters | The floating loss on fair value of derivatives during the reporting period was 4.45 million Yuan. Changes in fair value are determined at the end of each month based on quoted market prices from external financial institutions. |
| Litigation involved (if applicable) | No |
| Date of disclosure of board announcement for approval of derivative investments (if any) | April 23, 2024 |
2） Investments in derivatives for speculative purposes during the reporting period
□ Applicable √ Not Applicable
The Company had no derivative investments for speculative purposes during the reporting period.
5. Use of raised funds
√ Applicable □ Not Applicable
(1) Overall use of raised funds
√ Applicable □ Not Applicable
Unit: RMB 0,000 yuan
| Year of fund-raising | Way of fund-raising | Total amount raised | Net amount raised | Amount used in the current period | Accumulated amount of raised funds used | Total raised funds with changes in uses during the reporting period | Accumulated amount of raised funds with changes in uses during the reporting period | Proportion of raised funds with changes in uses to total raised funds | Total raised funds not yet used | Purposes of raised funds not yet used and the whereabouts | Raised funds being idle for over two years |
| Year 2017 | Private placement of shares | 486,707.55 | 486,707.55 | 16,001.17 | 527,880.92 | 0 | 0 | 0.00% | 34,323.48 | Transfer out of permanent supplementary working capital | 0 |
| Total | -- | 486,707.55 | 486,707.55 | 16,001.17 | 527,880.92 | 0 | 0 | 0.00% | 34,323.48 | -- | 0 |
| Remarks on overall use of raised funds | |||||||||||
| The Company’s raised funds used in previous years amounted to5,118.80 million yuan, the net amount of interest on cash in bank received in previous years less handling charges amounted to 105.69 million yuan, gains on financial products and structured deposits received in previous years amounted to 644.29 million yuan, and the net expenditure on financial products and structured deposits purchased in previous years amounted to 145.00 million yuan; the raised funds actually used in 2024 amounted to 160.01 million yuan, the net amount of interest on cash in bank received in 2024 less handling charges amounted to 4.12 million yuan, gains on financial products and structured deposits received in 2024 amounted to 0.86 million yuan, and the net recovery from financial products and structured deposits purchased in 2024 amounted to 145.00 million yuan; the accumulated amount of the raised funds used | |||||||||||
amounted to 5,278.81 million yuan, the accumulated net amount of interest on cash in bank received less handling charges amounted to 109.81 millionyuan, the accumulated amount of gains on financial products and structured deposits received amounted to 645.16 million yuan, and net expenditure onfinancial products and structured deposits purchased amounted to 0 yuan, supplementary liquidity transfer out of 343.23 million yuan. As of June 30,2024, the balance of raised funds was 0.00 yuan.The Company held the Third Meeting of the Ninth Session of the Board of Directors and the Third Meeting of the Ninth Session of the Board ofSupervisors on 19 April 2024 and considered and passed the ''Proposal on the Closing of Fund Raising Investment Project and PermanentSupplementation of Current Funds with Surplus Fund Raising'', and agreed to close the project and permanently supplement the current funds withsurplus fund raising investment project ''Project of 250,000 Tons of Methionine Per Annum'' for the purpose of enhancing the efficiency of the use ofsurplus fund raising. 250,000 tonnes of methionine project" and permanently replenish the working capital with the surplus proceeds. As at 23 May 2024,the balance of the special account for fund-raising of the Company has been transferred to the general settlement account of the Company, and therelevant procedures for cancellation of the special account for fund-raising have been completed.
(2) Committed projects with raised funds
√ Applicable □ Not Applicable
Unit: RMB 0,000 yuan
| Committed investment projects and over-raised funds whereabouts | Whether changed (including partial changed) | Total committed investment in raised funds | Total amount after adjustment (1) | Input during the reporting period | Accumulated input as of the period end (2) | Investment progress as of the period end (3)=(2)/(1) | Date of reaching designed usable conditions | Benefit realized in the reporting period | Whether the expected benefit is reached | Whether there was significant changes in feasibility of the project |
| Committed investment projects | ||||||||||
| Methionine project with annual output of 0.25 million tons | No | 486,707.55 | 486,707.55 | 16,001.17 | 527,880.92 | 108.46% | December 31, 2023 | 93,119.92 | Yes | No |
| Subtotal | -- | 486,707.55 | 486,707.55 | 16,001.17 | 527,880.92 | -- | -- | 93,119.92 | -- | -- |
| Over-raised funds whereabouts | ||||||||||
| No | 0 | 0 | 0 | 0 | 0.00% | 0 | ||||
| Total | -- | 486,707.55 | 486,707.55 | 16,001.17 | 527,880.92 | -- | -- | 93,119.92 | -- | -- |
| Conditions of and reasons for not meeting the planned schedule or estimated revenue (by specific project) | Pursuant to the results deliberated and approved by the eighth meeting of the eighth session of Board of Directors and the seventh meeting of the eighth session of the Board of Supervisors dated October 27, 2021, the Company intended to adjust the date when the methionine project with annual output of 0.25 million tons reaches the designed usable conditions from the originally planned December 2021 to June 2023, with other contents remaining unchanged. Main reasons: Due to the impact of the macro economy, the construction progress of the project’s infrastructure has been delayed, the procurement and delivery time of some equipment and materials has been extended, the installation and commissioning of equipment has been delayed, and the overall progress of the investment projects with raised funds has slowed down, which jointly resulted in the postponement of delivery of the projects. Currently, The project's 0.25million tons production line is now operating normally . | |||||||||
| Remarks on significant changes in feasibility of projects | None. | |||||||||
| Amount, purposes and progress of use of over-raised funds | Not Applicable | |||||||||
| Changes in implementation locations of investment projects with raised funds | Not Applicable | |||||||||
| Adjustment on the implementation method of investment projects with raised funds | Not Applicable | |||||||||
| Preliminary investment and replacement of investment projects with raised funds | Applicable | |||||||||
| Preliminary investment amounted to 36.06 million yuan, and the replacement of raised funds is completed. | ||||||||||
| Temporary replenishment of working capital with idle raised funds | Not Applicable |
| Amount of and reasons for the balance of raised funds in the implementation of projects | Not Applicable |
| Uses and whereabouts of unused raised funds | Completed and put into production of the fund-raising projects to close and use the savings of the fund-raising funds to permanently replenish the working capital, the fund-raising projects to close and use the savings of the fund-raising funds to permanently replenish the working capital of the matter has been considered and approved by the Ninth Session of the Board of Directors of the Company at its Third Meeting and the Ninth Supervisory Committee of the Company at its Third Meeting. |
| Problems or other situations in the use and disclosure of raised funds | None. |
(3) Change of projects with raised funds
□ Applicable √ Not Applicable
There is no change of projects with raised funds during the reporting period.VII. Sale of major assets and equities
1. Sale of major assets
□ Applicable √ Not Applicable
There is no sale of major assets during the reporting period.
2. Significant sale of equities
□ Applicable √ Not Applicable
VIII. Major entities controlled or invested by the Company
√ Applicable □ Not Applicable
Major subsidiaries and investees with influence on net profit of the Company over 10% (inclusive)
Unit: RMB 0,000 yuan
| Entities | Categories | Major businesses | Registered capital | Total assets | Net assets | Operating revenue | Operating profit | Net profit |
| Shandong NHU Pharmaceutical Co., Ltd. | Subsidiary | Production and sales of fragrances | 590 million yuan | 429,313.45 | 349,110.74 | 208,580.99 | 77,328.68 | 66,686.44 |
| Shandong NHU Amino-acids Co., Ltd. | Subsidiary | Production and sales of methionine | 1,100 million yuan | 1,092,450.99 | 964,066.91 | 320,550.76 | 139,781.76 | 118,095.83 |
| Shandong NHU Vitamins Co., Ltd. | Subsidiary | Production and sales of feed additives | 500 million yuan | 436,062.15 | 356,683.60 | 162,306.85 | 66,464.23 | 57,134.74 |
Details of acquisition and disposal of subsidiaries during the reporting period
√ Applicable □ Not Applicable
| Subsidiaries | Method for acquisition and disposal of subsidiaries during the reporting period | Effect on the overall production, operation and performance |
| Qionghai Boao Lidu Real Estate Co., Ltd. | shareholding transfer | None. |
| Tianjin NHU Materials Technology Co., Ltd. | investment establishment | Initial no significant impact . |
IX. Structured entities controlled by the Company
□ Applicable √ Not Applicable
X. Risks and countermeasures
(1) Macroeconomic risks
The global economy is facing numerous uncertainties due to international trade frictions and possible intensification of geopoliticalconflicts. The company will accelerate the pace of globalization, speed up the global strategic layout, continuously improve theconstruction of global innovation, sales, and information centers, establish a diversified innovation chain, supply chain, and customerbase, to promote the company's steady development.
(2) Industry and market competition risks
The Company is facing peer competition in both domestic and international markets. The development of new technologies by itscompetitors will not only impact the market, but also challenge the Company’s market position in the industry. In the future, theCompany will continuously enhance its R&D and innovation capabilities, improve its technology, strengthen cost control, andimprove the competitiveness in the industry.
(3) Risks of raw material price fluctuation
As cost of raw materials accounts for a relatively high proportion of the total cost, the price fluctuations caused by the supply-demand imbalance of raw material will have an impact on the Company’s profit. In the future, the Company will reduce the adverseimpact of raw material price fluctuations through market research and judgment, establishing strategic partnership with suppliers, andimproving the utilization rate of raw materials.
(4) Exchange rate and trade risks
The company provides products and services to customers in more than 100 countries and regions around the world. Political risks,trade obstacles and exchange rate fluctuations caused by Sino-US trade frictions, international political and economic instability willhave a certain impact on the company's sales revenue and profitability. In the future, the company will take targeted measures toactively respond to changes in the international market, strive to stabilize its international market position and actively explore neweconomic growth points to maintain the steady growth of the company's performance.
(5) Risks of changes in environmental protection policies
With the increased social awareness of environmental protection, the promotion of the ecological civilization construction of the CPCCentral Committee, and the strategic goal of “carbon emission peak and carbon neutrality”, the requirements for energy conservation,emission reduction, safety, and environmental protection in the chemical and pharmaceutical manufacturing industry in which theCompany operates are stricter than before. The Company will operate with higher standards and explore more environmentallyfriendly ways of production to achieve sustainable development.XI. Implementation of the "Quality-Return dual improvement" action planWhether the company disclosed the "quality-return dual improvement" action plan.
√Yes □ No
In order to implement the guiding ideology of "to activate the capital market and boost investor confidence" proposed by thePolitical Bureau meeting of the CPC Central Committee and "to vigorously improve the quality and investment value of listed
companies, to take more effective and effective measures to stabilize the market and stabilize confidence", safeguard the rights andinterests of all shareholders, enhance investor confidence, and promote the long-term sustainable development of the company.The Company published the "Announcement on the Action Plan of" Double Improvement of Quality and Return "(2024-002) ondesignated information disclosure media and http://www.cninfo.com.cn on March 9, 2024, The main content of the action planincludes four aspects: "Innovation-driven development, excellence and specialization", "Contributor-based sharing of thecompany's development results", "deepening corporate governance and improving the standard operation level", and "complianceinformation disclosure and sincere two-way communication".During the reporting period, the company continued to actively return shareholders with relatively stable profit distributionpolicies and cash dividend programs, allowing investors to share the results of the company's business development. In addition, inorder to boost market confidence, the controlling shareholder NHU Holding Group Co., Ltd. proposed the plan to increase itsholdings in 2023, with the amount for increasing the shares not less than 200 million yuan and not more than 300 million yuan,and the implementation was completed in March 2024, with the purchase amount of 300 million yuan. During the reporting period,the Company implemented the 2023 annual equity distribution based on 3,073,421,680 shares of the Company's existing totalshare capital excluding 17,485,676 shares that have been repurchased, and distributed RMB4.50 in cash to all shareholders forevery 10 shares, totaling RMB1,383,039,756.00 (tax included).The company will continue to develop functional chemicals through technology development and product innovation, enrich theproduct line of the fine "chemical +" and "biological +" platform, do the best and specialize in the main fine chemical industry,constantly improve the core competitiveness, and achieve steady and sustainable development of enterprises. In the future, underthe premise of ensuring normal operation, the company insists on providing investors with continuous and stable cash dividends,and combines the company's operating status and business development goals to bring long-term investment returns toshareholders. At the same time, the company continues to deepen corporate governance, improve the standard operation level, takethe initiative to convey value concepts to investors, understand investors' views and suggestions on the company's operation anddevelopment, guide investors to take the initiative to pay attention to the company's announcement, news and other officialchannel information, and constantly improve the two-way communication mechanism between the company and investors.
Section IV Corporate Governance
I. Annual general meeting and extraordinary general meetings held during the reporting period
1. General meeting of shareholders
| Session | Type of meetings | Proportion of participating investors | Meeting date | Disclosure date | Resolutions |
| General meeting of shareholders of 2023 | Annual general meeting of shareholders | 60.20% | May 15, 2024 | May 16, 2024 | 19 proposals including the Annual Work Report of the Board of Directors of 2023 were deliberated and approved. Please refer to Announcement No. 2024-022 disclosed on http://www.cninfo.com.cn for details. |
2. Preference shareholders with restored voting rights request to convene an extraordinary general meeting
□ Applicable √ Not applicable
II. Changes of directors, supervisors and senior executives
□ Applicable √ Not applicable
The Company’s directors, supervisors and senior executives remains unchanged during the current reporting period,please refer to the 2023 Annual Report for details.
III. Profit distribution and conversion of capital reserve into share capital
□ Applicable √ Not applicable
The Company will not distribute cash dividend, distribute bonus shares, or distribute shares from capital reserveduring the current reporting period.IV. Implementation of equity incentive plans, employee stock ownership plans or otheremployee incentive programs
√ Applicable □ Not applicable
1. Equity incentive
Not applicable.
2. Implementation of employee stock ownership plans
√ Applicable □ Not applicable
All active employee stock ownership plans during the reporting period
| Scope of employees | Number of employees | Total shares held | Changes | Proportion to total share capital of the Company | Sources of fund to implement the plan |
| The forth phase of employee stock ownership plan: directors, | 627 | 29,528,181 | N/A | 0.96% | Legal remuneration of |
| Scope of employees | Number of employees | Total shares held | Changes | Proportion to total share capital of the Company | Sources of fund to implement the plan |
| supervisors, senior executives of the Company, and regular employees of the Company and its holding subsidiaries or wholly-owned subsidiaries who meet the criteria | the employees, self-raised funds and other methods permitted by laws and administrative regulations |
Shareholdings of directors, supervisors and senior executives in the employee stock ownership plan during thereporting period
| Name | Position | Number of shares held at the beginning of the reporting period | Number of shares held at the end of the reporting period | Proportion to total share capital of the Company |
| The fourth phase of employee stock ownership plan:Hu Baifan, Hu Baishan, Shi Guanqun, Wang Xuewen, Wang Zhengjiang, Zhou Guiyang, Shi Fangbin, Lyu Guofeng, Yu Hongwei, Yan Hongyue, Chen Zhaofeng, Wang Xiaobi, Li Huafeng, Zhang Liying | Directors, supervisors and senior executives | 8,664,835 | 8,664,835 | 0.28% |
Changes in asset management agency during the reporting period
□ Applicable √ Not applicable
Changes in equity during the reporting period due to disposal of shares by holders
□ Applicable √ Not applicable
Exercise of shareholders’ rights during the reporting periodPursuant to the Forth Phase of Employee Stock Ownership Plan (Draft), such plan voluntarily waives the votingrights of holding shares in the general meeting of the Company, while shares acquired through the employee stockownership plan carry no voting rights in the general meeting. During the reporting period, the employee stockownership plan did not exercise the voting rights of holding shares in the general meeting, but still enjoyed the rightto profit distribution.Other relevant situations and remarks of the employee stock ownership plan during the reporting period
□ Applicable √ Not applicable
Change in membership of the management committee of employee stock ownership plan
□ Applicable √ Not applicable
Financial impact of employee stock ownership plan on the Company in the reporting period and related accountingtreatments
□ Applicable √ Not applicable
Termination of employee stock ownership plan during the reporting period
□ Applicable √ Not applicable
Other remarksThe number of shares held by directors, supervisors and senior managers in the employee stock ownership plan iscalculated according to the proportion of the holder's share in the total share of the employee stock ownership plan..Other employee incentive programs
□ Applicable √ Not applicable
Section V Environmental and Social Responsibilities
I. Major environmental issuesWhether the Company and its subsidiaries belong to the key pollutant discharging units announced bydepartments of environmental protection administration
√ Yes □ No
Environmental protection-related policies and industry standardsInterim Regulations on the Administration of Carbon Emission Trading (Decree No. 775 of the State Council of the People'sRepublic of China)Action Programme for Energy Conservation and Carbon Reduction 2024-2025 (Guo Fa [2024] No. 12)Announcement on the publication of the Catalogue of Solid Waste Classification and Codes (Ministry of Ecology andEnvironment No. 4 of 2024)Nomenclature for Environmental Management of Chemical Substances (Ministry of Ecology and Environment 2024, No. 10)Measures for the Administration of Sewage Discharge Permits (Decree No. 32 of the Ministry of Ecology and Environment)Implementation Programme on the Establishment of Carbon Footprint Management System (Ministry of Ecology andEnvironment, Environmental Climate [2024] No. 30)Administrative permits for environmental protection
On 12 April 2024, Zhejiang NHU Pharmaceutical Co., Ltd. completed the re-application for the sewage discharge permit, andcompleted the change on 1 July 2024, with the validity period until 11 April 2029.On 17 May 2024, Zhejiang NHU Special Materials Co., Ltd. completed the re-application of sewage discharge permit, which isvalid until 13 May 2029.On 28 May 2024, Shandong NHU Amino Acid Co., Ltd. completed the re-application for the sewage discharge permit, which isvalid until 27 May 2029.On 18 June 2024, Heilongjiang NHU Bio-Technology Co., Ltd. completed the change of emission permit, which is valid until 17May 2028.On 22 June 2024, Shandong NHU Pharmaceutical Co., Ltd. completed the re-application for the sewage discharge permit, whichis valid until 20 June 2029.
Industry emission standards and the specific circumstances of pollutant emissions involved in productionand operation activities
| Name | Types of major and characteristic pollutants | Name of main pollutants and pollutant characteristics1 | Discharge method | Number of discharge outlets | Distribution of discharge outlets | Discharge concentration | Executive pollutant discharge standard | Total amount of discharge | Total verified amount of discharge | Excessive discharge or not |
| The Company | water pollution | COD | Sewer connection | 1 | Plant area | 155mg/L | 500mg/L | 17.35t | ≤189.5t/a | No |
| The Company | water pollution | NH3-N | Sewer connection | 1 | Plant area | 0.9mg/L | 35mg/L | 0.11t | ≤13.28t/a | No |
| The Company | Atmospheric pollutants | SO? | Filtered discharge | 1 | Plant area | 19mg/m? | 50mg/m? | 0.49t | ≤8.612 t/a | No |
| The Company | Atmospheric pollutants | NOx | Filtered discharge | 1 | Plant area | 33mg/m? | 50mg/m? | 0.33t | ≤28t/a | No |
| Shangyu NHU Bio-Chem Co., Ltd. | water pollution | COD | Sewer connection | 1 | Plant area | 226.466mg/L | 500mg/L | 242.995t | ≤999.65t/a | No |
| Shangyu NHU Bio-Chem Co., Ltd. | water pollution | NH3-N | Sewer connection | 1 | Plant area | 6.634 mg/L | 35mg/L | 7.118t | ≤69.976 t/a | No |
| Shangyu NHU Bio-Chem Co., Ltd. | water pollution | TN | Sewer connection | 1 | Plant area | 18.348 mg/L | 70mg/L | 19.687t | ≤139.951 t/a | No |
| Shangyu NHU Bio-Chem Co., Ltd. | Atmospheric pollutants | VOC | Filtered discharge | 1 | Plant area | 5.739 mg/m? | 100mg/m? | 0.525t | ≤57.6 t/a | No |
| Shangyu NHU Bio-Chem Co., Ltd. | Atmospheric pollutants | VOC | Filtered discharge | 1 | Plant area | 8.987 mg/m? | 100mg/m? | 0.379t | ≤43.2 t/a | No |
| Zhejiang NHU Pharmaceutical Co., Ltd. | Atmospheric pollutants | VOC | Filtered discharge | 1 | Plant area | 2.918 mg/m? | 100mg/m? | 0.135t | ≤120.7t | No |
| Zhejiang NHU Pharmaceutical Co., Ltd. | Atmospheric pollutants | VOC | Filtered discharge | 1 | Plant area | 2.812 mg/m? | 100mg/m? | 0.475t | ≤1.98t | No |
| Zhejiang NHU Pharmaceutical Co., Ltd. | Atmospheric pollutants | VOC | Filtered discharge | 1 | Plant area | 0.7 mg/m? | 100mg/m? | 0.007t | ≤0.288t | No |
| Zhejiang NHU Pharmaceutical Co., Ltd. | Atmospheric pollutants | VOC | Filtered discharge | 1 | Plant area | 1mg/m? | 100mg/m? | 0.002t | ≤0.01t | No |
| Zhejiang NHU Pharmaceutical Co., Ltd. | Atmospheric pollutants | VOC | Filtered discharge | 1 | Plant area | 0.387 mg/m? | 100mg/m? | 0.001t | ≤0.032t | No |
| Zhejiang NHU Pharmaceutical Co., Ltd. | Atmospheric pollutants | NOx | Filtered discharge | 1 | Plant area | 5.233 mg/m? | 200mg/m? | 0.242t | ≤19.8t | No |
| Zhejiang NHU Pharmaceutical | Atmospheric pollutants | NOx | Filtered discharge | 1 | Plant area | 125.11 mg/m? | 300mg/m? | 21.112t | ≤28.08t | No |
COD, NH3-N, SO? , NOx, TN, VOC, PM and TP stand for chemical oxygen demand, ammonia nitrogen, sulfur dioxide, nitrogenoxides, total nitrogen, volatile organic compound, particulate matter and total phosphorus, respectively.
| Name | Types of major and characteristic pollutants | Name of main pollutants and pollutant characteristics1 | Discharge method | Number of discharge outlets | Distribution of discharge outlets | Discharge concentration | Executive pollutant discharge standard | Total amount of discharge | Total verified amount of discharge | Excessive discharge or not |
| Co., Ltd. | ||||||||||
| Zhejiang NHU Pharmaceutical Co., Ltd. | Atmospheric pollutants | NOx | Filtered discharge | 1 | Plant area | 14.949 mg/m? | 150mg/m? | 0.389t | ≤8.44t | No |
| Zhejiang NHU Pharmaceutical Co., Ltd. | Atmospheric pollutants | SO? | Filtered discharge | 1 | Plant area | 3.44 mg/m? | 100mg/m? | 0.159t | ≤9.295t | No |
| Zhejiang NHU Pharmaceutical Co., Ltd. | Atmospheric pollutants | SO? | Filtered discharge | 1 | Plant area | 14.62 mg/m? | 100mg/m? | 2.467t | ≤37.94t | No |
| Zhejiang NHU Pharmaceutical Co., Ltd. | Atmospheric pollutants | SO? | Filtered discharge | 1 | Plant area | 4.927 mg/m? | 50mg/m? | 0.128t | ≤10.905t | No |
| Zhejiang NHU Pharmaceutical Co., Ltd. | Atmospheric pollutants | PM | Filtered discharge | 1 | Plant area | 5.175 mg/m? | 20mg/m? | 0.239t | ≤5.164t | No |
| Zhejiang NHU Pharmaceutical Co., Ltd. | Atmospheric pollutants | PM | Filtered discharge | 1 | Plant area | 3.375 mg/m? | 30mg/m? | 0.569t | ≤8.42t | No |
| Zhejiang NHU Pharmaceutical Co., Ltd. | Atmospheric pollutants | PM | Filtered discharge | 1 | Plant area | 5.839 mg/m? | 20mg/m? | 0.152t | ≤5.626t | No |
| Zhejiang NHU Special Materials Co., Ltd. | Atmospheric pollutants | PM | Filtered discharge | 1 | Plant area | 1.35mg/m? | 5 mg/m? | 0.149t | ≤17.73 t/a | No |
| Zhejiang NHU Special Materials Co., Ltd. | Atmospheric pollutants | PM | Filtered discharge | 1 | Plant area | 0.5mg/m? | 20 mg/m? | 0.108t | ≤17.73 t/a | No |
| Zhejiang NHU Special Materials Co., Ltd. | Atmospheric pollutants | PM | Filtered discharge | 1 | Plant area | 2.8mg/m? | 20 mg/m? | 0.031t | ≤17.73 t/a | No |
| Zhejiang NHU Special Materials Co., Ltd. | Atmospheric pollutants | SO? | Filtered discharge | 1 | Plant area | 4.62mg/m? | 35 mg/m? | 0.486t | ≤67.92t/a | No |
| Zhejiang NHU Special Materials Co., Ltd. | Atmospheric pollutants | SO? | Filtered discharge | 1 | Plant area | 2 mg/m? | 50 mg/m? | 0.278t | ≤67.92t/a | No |
| Zhejiang NHU Special Materials Co., Ltd. | Atmospheric pollutants | SO? | Filtered discharge | 1 | Plant area | 3 mg/m? | 50 mg/m? | 0.038t | ≤67.92t/a | No |
| Zhejiang NHU Special | Atmospheric pollutants | NOx | Filtered discharge | 1 | Plant area | 23.44 mg/m? | 50 mg/m? | 3.192t | ≤83.28 t/a | No |
| Name | Types of major and characteristic pollutants | Name of main pollutants and pollutant characteristics1 | Discharge method | Number of discharge outlets | Distribution of discharge outlets | Discharge concentration | Executive pollutant discharge standard | Total amount of discharge | Total verified amount of discharge | Excessive discharge or not |
| Materials Co., Ltd. | ||||||||||
| Zhejiang NHU Special Materials Co., Ltd. | Atmospheric pollutants | NOx | Filtered discharge | 1 | Plant area | 13mg/m? | 100 mg/m? | 2.25t | ≤83.28 t/a | No |
| Zhejiang NHU Special Materials Co., Ltd. | Atmospheric pollutants | NOx | Filtered discharge | 1 | Plant area | 32mg/m? | 150 mg/m? | 0.27t | ≤83.28 t/a | No |
| Zhejiang NHU Special Materials Co., Ltd. | Atmospheric pollutants | VOC | Filtered discharge | 2 | Plant area | 4.56 mg/m? | 60 mg/m? | 0.2304t | ≤69.72 t/a | No |
| Shandong NHU Pharmaceutical Co., Ltd. | Atmospheric pollutants | PM | Filtered discharge | 5 | Plant area | 1.21 mg/m? | 10 mg/m? | 0.29t | ≤14.366t/a | No |
| Shandong NHU Pharmaceutical Co., Ltd. | Atmospheric pollutants | SO? | Filtered discharge | 4 | Plant area | 2.70 mg/m? | 50 mg/m? | 0.41t | ≤4.006t/a | No |
| Shandong NHU Pharmaceutical Co., Ltd. | Atmospheric pollutants | NOx | Filtered discharge | 5 | Plant area | 48.35 mg/m? | 100 mg/m? | 8.46t | ≤76.458t/a | No |
| Shandong NHU Pharmaceutical Co., Ltd. | Atmospheric pollutants | VOC | Filtered discharge | 3 | Plant area | 10.33 mg/m? | 60 mg/m? | 9.81t | ≤154.36t/a | No |
| Shandong NHU Pharmaceutical Co., Ltd. | water pollution | COD | Sewer connection | 1 | Plant area | 436.94 mg/L | 1000mg/L | 46.6t | ≤719.42t/a | No |
| Shandong NHU Pharmaceutical Co., Ltd. | water pollution | NH3-N | Sewer connection | 1 | Plant area | 6.47 mg/L | 100mg/L | 0.69t | ≤71.94t/a | No |
| Shandong NHU Pharmaceutical Co., Ltd. | water pollution | TN | Sewer connection | 1 | Plant area | 34.86 mg//L | 120mg/L | 3.63t | ≤86.33 t/a | No |
| Shandong NHU Amino-acids Co., Ltd. | Atmospheric pollutants | SO? | Filtered discharge | 7 | Plant area | 11.23 mg/m? | 50 mg/m? | 10.83t | ≤162.472 t/a | No |
| Shandong NHU Amino-acids Co., Ltd. | Atmospheric pollutants | NOx | Filtered discharge | 9 | Plant area | 35.4 mg/m? | 100 mg/m? | 69.69t | ≤415.75 t/a | No |
| Shandong NHU Amino-acids Co., Ltd. | Atmospheric pollutants | PM | Filtered discharge | 12 | Plant area | 1.16 mg/m? | 10 mg/m? | 4.32t | ≤29.314 t/a | No |
| Shandong NHU Amino-acids Co., Ltd. | Atmospheric pollutants | VOC | Filtered discharge | 6 | Plant area | 16.58 mg/m? | 60mg/m? | 25.57t | ≤381.846 t/a | No |
| Shandong NHU Amino-acids | water pollution | COD | Sewer connection | 1 | Plant area | 715 mg/L | 1000 mg/L | 204.55t | ≤1073.97 t/a | No |
| Name | Types of major and characteristic pollutants | Name of main pollutants and pollutant characteristics1 | Discharge method | Number of discharge outlets | Distribution of discharge outlets | Discharge concentration | Executive pollutant discharge standard | Total amount of discharge | Total verified amount of discharge | Excessive discharge or not |
| Co., Ltd. | ||||||||||
| Shandong NHU Amino-acids Co., Ltd. | water pollution | NH3-N | Sewer connection | 1 | Plant area | 8.83 mg/L | 100 mg/L | 2.71t | ≤107.397 t/a | No |
| Shandong NHU Amino-acids Co., Ltd. | water pollution | TN | Sewer connection | 1 | Plant area | 68.8 mg/L | 120 mg/L | 13.21t | ≤128.874 t/a | No |
| Shandong NHU Vitamins Co., Ltd. | Atmospheric pollutants | VOC | Filtered discharge | 4 | Plant area | 8.66 mg/m? | 60 mg/m? | 2.69t | ≤85.67 t/a | No |
| Shandong NHU Vitamins Co., Ltd. | Atmospheric pollutants | SO? | Filtered discharge | 3 | Plant area | 5.19 mg/m? | 50 mg/m? | 1.52t | ≤21.14 t/a | No |
| Shandong NHU Vitamins Co., Ltd. | Atmospheric pollutants | NOx | Filtered discharge | 4 | Plant area | 52mg/m? | 100 mg/ m? | 24.98t | ≤65.27 t/a | No |
| Shandong NHU Vitamins Co., Ltd. | Atmospheric pollutants | PM | Filtered discharge | 5 | Plant area | 3.54 mg/m? | 10 mg/m? | 0.73t | ≤4.8 t/a | No |
| Shandong NHU Vitamins Co., Ltd. | water pollution | COD | Sewer connection | 1 | Plant area | 226mg/L | 2000 mg/L | 18.23t | ≤1376.56t/a | No |
| Shandong NHU Vitamins Co., Ltd. | water pollution | NH3-N | Sewer connection | 1 | Plant area | 3.44mg/L | 100 mg/L | 0.23t | ≤68.61 t/a | No |
| Shandong NHU Vitamins Co., Ltd. | water pollution | TN | Sewer connection | 1 | Plant area | 56.1mg/L | 120 mg/L | 2.18t | ≤93.21 t/a | No |
| Shandong NHU Fine ChemicalScience and Technology Co. | Atmospheric pollutants | VOC | Filtered discharge | 2 | Plant area | 17mg/m? | 60 mg/m? | 0.98t | ≤18.031 t/a | No |
| Shandong NHU Fine ChemicalScience and Technology Co. | Atmospheric pollutants | NOx | Filtered discharge | 2 | Plant area | 31mg/m? | 100 mg/m? | 3.19t | ≤37.61 t/a | No |
| Shandong NHU Fine ChemicalScience and Technology Co. | Atmospheric pollutants | PM | Filtered discharge | 1 | Plant area | 3.2mg/m? | 10 mg/m? | 0.296t | ≤5.544 t/a | No |
| Heilongjiang NHU Biotechnology Co., Ltd. | Atmospheric pollutants | PM | Filtered discharge | 1 | Plant area | 14.39mg/m? | 30 mg/m? | 3.26t | ≤19.224t | No |
| Heilongjiang | Atmospheric | PM | Filtered | 1 | Plant | 11.53mg/m? | 30 | 0.00480 | ≤.68t | No |
| Name | Types of major and characteristic pollutants | Name of main pollutants and pollutant characteristics1 | Discharge method | Number of discharge outlets | Distribution of discharge outlets | Discharge concentration | Executive pollutant discharge standard | Total amount of discharge | Total verified amount of discharge | Excessive discharge or not |
| NHU Biotechnology Co., Ltd. | pollutants | discharge | area | mg/m? | 7t | |||||
| Heilongjiang NHU Biotechnology Co., Ltd. | Atmospheric pollutants | PM | Filtered discharge | 1 | Plant area | 13.14 mg/m? | 30 mg/m? | 0.018366t | ≤0.55t/a | No |
| Heilongjiang NHU Biotechnology Co., Ltd. | Atmospheric pollutants | PM | Filtered discharge | 1 | Plant area | 7.06 mg/m? | 30 mg/m? | 0.177t | ≤3.6t/a | No |
| Heilongjiang NHU Biotechnology Co., Ltd. | Atmospheric pollutants | NOx | Filtered discharge | 1 | Plant area | 50.44 mg/m? | 200 mg/m? | 12.08t | ≤128.16 t/a | No |
| Heilongjiang NHU Biotechnology Co., Ltd. | Atmospheric pollutants | SO? | Filtered discharge | 1 | Plant area | 84.22 mg/m? | 200 mg/m? | 18.4t | ≤128.16 t/a | No |
| Heilongjiang NHU Biotechnology Co., Ltd. | Atmospheric pollutants | VOC | Filtered discharge | 1 | Plant area | 10.5 mg/m? | 150 mg/m? | 2.43t | ≤96.12 t/a | No |
| Heilongjiang NHU Biotechnology Co., Ltd. | Atmospheric pollutants | VOC | Filtered discharge | 1 | Plant area | 15.98 mg/m? | 150 mg/m? | 0.007579t | ≤3.38t/a | No |
| Heilongjiang NHU Biotechnology Co., Ltd. | Atmospheric pollutants | VOC | Filtered discharge | 1 | Plant area | 14.51 mg/m? | 150 mg/m? | 0.024881t | ≤2.77t/a | No |
| Heilongjiang NHU Biotechnology Co., Ltd. | Atmospheric pollutants | VOC | Filtered discharge | 1 | Plant area | 9.7 mg/m? | 150 mg/m? | 0.024881t | ≤2.80t/a | No |
| Heilongjiang NHU Biotechnology Co., Ltd. | Atmospheric pollutants | VOC | Filtered discharge | 1 | Plant area | 13.56 mg/m? | 150 mg/m? | 0.339t | ≤17.98 t/a | No |
| Heilongjiang NHU Biotechnology Co., Ltd. | water pollution | COD | Sewer connection | 1 | Plant area | 116.51mg/L | 300mg/L | 303.69t | ≤2089.8 t/a | No |
| Heilongjiang NHU Biotechnology Co., Ltd. | water pollution | NH3-N | Sewer connection | 1 | Plant area | 1.95mg/L | 35mg/L | 4.26t | ≤243.81 t/a | No |
Construction and operation of pollution prevention and control facilitiesThe Company has established the environmental protection concept of green development: 1. Introducing the concept of greenchemistry, developing and producing products that are more environment-friendly. 2. Transferring from support-orientation toresponsibility-orientation, to conduct source reduction, process control and end-of-pipe treatment properly. 3. Pursuing reduction,recycling and harmlessness to create ecological factories, and realize the harmonious development of man and nature.Wastewater treatment: The company has a perfect sewage treatment system; there are production sewage, domestic sewage, initialrainwater, accident water and other wastewater collection system, so as to achieve clean sewage diversion, rain and sewagediversion. The waste water pool is sealed with a cover, and all the waste gases are effectively collected and finally incinerated,which effectively reduces the emission of waste gases.Exhaust gas treatment: The company adopts self-developed nitrogen sealing system to effectively reduce the exhaust gas emission;according to the composition and nature of different exhaust gases, it adopts different pre-treatment technologies; meanwhile, thecompany introduces foreign advanced exhaust gas treatment devices to strengthen the capacity of exhaust gas treatment. Exhaustgas leakage detection and repair (LDAR) is carried out regularly every year; the company continues to implement the constructionof odourless factories, comprehensively carry out exhaust gas treatment, and solve the problem of odour at the factory boundary;in 2024, it will comprehensively investigate the point of unorganised leakage and incorporate it into the management and control,and carry out comprehensive supervision and emission reduction of unorganised exhaust gases.Solid Waste Disposal: The company has a standardised hazardous waste storage warehouse and hazardous waste incinerationdevice, and the company basically disposes of hazardous waste on its own. The company basically disposes of hazardous wastesby itself. The outsourced hazardous wastes are transferred in strict accordance with the requirements of ‘Management Measuresfor the Transfer of Hazardous Wastes’, and entrusted to qualified units.Noise prevention and control: low-noise equipment is selected, and the noise reduction measures of foundation damping areadopted for the equipment that does not need to be fixed; in addition to foundation damping for the air compressor, blower andvarious pumps, a sound insulation cover is also added around the noise source for sound insulation.Emergency management: installing exhaust gas online monitor around the plant boundary, real-time monitoring of the plantenvironment; introducing VOC online monitor, real-time monitoring of the emission of exhaust gas data, test data uploaded to themonitoring platform; wastewater, one enterprise, one pipe online monitoring of wastewater emission indexes real-time monitoring,normal uploading to the Environmental Protection Bureau; the introduction of first-class pressure leakage plugging technology inChina, will be the pipelines, valves, flanges, tanks appearing abnormal The introduction of domestic first-class pressure leakageplugging technology reduces the abnormal leakage of pipelines, valves, flanges and tanks to the lowest amount, thus reducing theimpact on the environment due to massive leakage.
Environmental emergency response plan
On 8 April 2024, The Company re-filed the emergency response plan for environmental emergencies.On 1 February 2024, Shandong NHU Pharmaceutical Co., Ltd. re-filed the emergency response plan for environmentalemergencies.
Investment in environmental treatment and protection and payment of environmental protectiontax
The Company's environmental protection treatment and investment in the first half of 2024 amounted to RMB 281.29 millionand paid environmental protection tax of RMB 1.01 million.
Environmental self-monitoring programThe company has good pollutant emission monitoring and management ability and can timely inform the environmental protectionadministrative department and the public of the monitoring information. The company has developed relevant self-test plans,which cover the indicators of the company's organized waste gas, unorganized waste gas and groundwater. At the same time, athird-party testing company is entrusted to carry out regular monitoring.The company implements environmental information disclosure in strict accordance with the national, provincial, municipal andcounty requirements on enterprise environmental information disclosure. Each subsidiary has made enterprise environmentalprotection information public on platforms such as the environmental information management system of provincial and municipalkey pollutant discharge units.Administrative penalties for environmental problems during the reporting period
| Name | Reasons for punishment | Violations | Results of punishment | Impact on the production and operation of the Company | Rectification measures of the Company |
| N/A | N/A | N/A | N/A | N/A | N/A |
Other environmental information that should be disclosedNone.Measures taken to reduce carbon dioxide emissions during the reporting period and their effects
√ Applicable □ Not applicable
In the research and development of new products, the carbon emission of 10,000 yuan output value is taken as an importantindicator for the process route and environmental feasibility assessment of new products. The green development technology isapplied in the research and development of new products to improve the atomic utilization rate and reduce the carbon emissiongenerated by the consumption of raw materials from the source. （The photovoltaic power generation project of Shandong NHUVitamins Co., Ltd.）
Other information related to environmental protectionNone.
II. Social responsibilitiesNHU has always adhered to long-termism, focusing on the strategic main channels of "Chemistry +" and"Biology +", strengthening innovation leadership, practicing green development, and continuously taking onresponsibility. The company continues to exert efforts in the research and development of innovative greenproducts, promoting green bio-manufacturing, and the layout of renewable energy. The company has increasedits attention to ESG issues, initiated ESG research, and continuously improved ESG performance, winning thesilver medal in the Ecovadis assessment, highlighting the company's outstanding performance in actively takingresponsibility for the environment, society, and stakeholders. The company has always integrated the concept ofsustainable development into the entire process of production operations and daily management, focusing on thecoordination between the industrial chain and the circular use of resources, to meet the human desire for a betterlife and the needs of social sustainable development in high-quality development.
We continuously deepen research on energy conservation and carbon reduction, improve the energymanagement system, promote process optimization and production line upgrades, and transitions towards large-scale, automated, and continuous production. This has led to an increase in the energy efficiency of productsand equipment, with a reduction in energy consumption per ten thousand yuan of output value by 7% in the firsthalf of the year. The company has accelerated the layout of renewable energy, achieved the first green certificate
transaction, and promoted the development and utilization of renewable energy. The company has completedthe environmental carbon footprint accounting for three products: Vitamin C, Vitamin E, and Astaxanthin,taking substantial steps in carbon reduction efforts.We will continue to focus on key business areas such as production and operation, and HSE (Health, Safety,and Environment), building a dual intelligent system of smart operations and smart factories. This system willbe based on the automation of processes and production to gradually improve operational efficiency. Theintelligent amino acid factory in Shandong has been fully built, achieving full process integration fromproduction to supply, sales, and finance, and creating a model workshop for large-scale chemical industry. TheHSE digital platform has been fully promoted and constructed in various bases, effectively realizing riskidentification, monitoring, and early warning. The construction of the smart operation system and the middleplatform is progressing steadily and orderly. By empowering with digital technology, the company continues toenhance its refined management capabilities, achieving a deep integration of digitalization, intelligence, andgreening, and empowering the enterprise's green and low-carbon development.We earnestly practice the corporate mission of "benefiting society". While promoting the development ofthe enterprise, we actively assume social responsibility as a corporate citizen and actively carries out publicwelfare projects such as blood donation, poverty alleviation, and educational funding. The company hasestablished an industry cooperation and communication platform, hosting the 2024 NHU Human NutritionHigh-Quality Development Forum and special seminars on aquaculture and poultry nutrition, to jointly exploreinnovative technologies and the path to sustainable development in the field of nutrition and health. During thereporting period, the company was awarded the first place on the "Independent Innovation" list of Chinesebrand value, one of the top 100 leading enterprises in Zhejiang Province for private enterprise socialresponsibility, and the Tianma Award for investor relations and shareholder reporting, among other honors.
Section VI Significant EventsI. Commitment performance fulfilled during the reporting period and not fulfilled as of theend of the reporting period by parties related to commitments including the actual controllerof the Company, shareholders, related parties, acquirers and the Company
√ Applicable □ Not Applicable
| Commitments | Parties making commitments | Types of commitments | Content of commitments | Time of commitment | Term of commitment | Performance |
| Commitments to shares reform | None | None | None | None | None | None |
| Commitments made in reports on acquisition and changes in equity | None | None | None | None | None | None |
| Commitments made in asset restructuring | None | None | None | None | None | None |
| Commitments made in IPO or refinancing | NHU Holding Group Co., Ltd. and Zhang Pingyi, Shi Cheng, Yuan Yizhong, Hu Baishan, Shi Guanqun, Wang Xuewen, Cui Xinrong, Wang Xulin | Commitments on horizontal competition, related party transactions and occupation of funds | The signing of “Commitment on No Engagement in Horizontal Competition” and commitments on no engagement in business activities result in horizontal competition with operations of the Company after listing | June 25, 2004 | Long-term | Strictly performed |
| Hu Baifan; Hu Baishan; Guanqun; Wang Xuewen; Cui Xinrong; Wang Zhengjiang; Zhou Guiyang | The Company’s directors, senior executives committed to perform their duties faithfully and diligently to safeguard the legitimate rights and interests of the Company and shareholders, and make the following commitments in accordance with the relevant provisions of the CSRC for the full performance of measures on filling immediate returns: 1. not to transfer benefits to other entities or individuals without compensation or on unfair terms, and not to use other means to harm benefits of the Company; 2. to impose restrictions on duty consumption of member of the Board of Directors and senior executives; 3. not to use assets of the Company to engage in investment or consumption activities not related to duty performance; 4. to link remuneration system formulated by the Board of Directors or remuneration committee to the implementation of measures on filling immediate returns; 5. to link vesting conditions of equity incentive to be published in the | January 12, 2017 | Long-term | Strictly performed |
II. Non-operating occupation of funds over listed companies by controlling shareholders andother related parties
□ Applicable √ Not Applicable
There is no non-operating occupation of funds over listed companies by controlling shareholders and other relatedparties during the reporting period.III. Illegal external guarantees
□ Applicable √ Not Applicable
There is no illegal external guarantee during the reporting period.IV、Engagement and dismissal of accounting firms
Whether the semi-annual report has been audited or not
□ Yes √ No
The semi-annual report has not been audited.V. Statements by the Board of Directors, the Board of Supervisors on the “Modified Auditor’sReport” issued by the accounting firm during the reporting period
□ Applicable √ Not Applicable
| future to the implementation of measures on filling immediate returns. | ||||||
| Hu Baifan; NHU Holding Group Co., Ltd. | Not to interfere in the Company’s business and management activities in excess of authority; not to encroach on benefits of the Company; to perform measures on filling immediate returns in a practical way. | January 12, 2017 | Long-term | Strictly performed | ||
| Commitments to equity incentive | None | None | None | None | None | None |
| Other commitments to small and medium-sized shareholders of the Company | None | None | None | None | None | None |
| Other commitments | NHU Holding Group Co., Ltd. | Share increase commitment | During the period of increasing the shares of the company and within the legal period, NHU Holding Group Co., Ltd. will not reduce the shares of the company and will complete the increase plan within the above implementation period. | October 27, 2023 | 6 months | Fulfillment completed |
| Whether commitments are performed on time | Yes | |||||
| If commitment performance is not fulfilled on time, please explain detailed reasons for it and the next work plans. | Not applicable | |||||
VI. Explanations by the Board of Directors on the “Modified Auditor’s Report” issued by theaccounting firm last year
□ Applicable √ Not Applicable
VII. Matters related to bankruptcy and restructuring
□ Applicable √ Not Applicable
There are no matters related to bankruptcy and restructuring during the reporting period.
VIII. LawsuitsSignificant lawsuits and arbitration
□ Applicable √ Not Applicable
There is no significant lawsuit and arbitration during the reporting period.Other lawsuits
□ Applicable √ Not Applicable
IX. Penalties and rectification
□ Applicable √ Not Applicable
There is no penalties and rectification during the reporting period.X. Integrity of the Company, its controlling shareholders and the actual controller
□ Applicable √ Not Applicable
XI. Significant related party transactions
1. Related party transactions relevant to daily operations
□ Applicable √ Not Applicable
There is no related party transaction relevant to daily operations during the reporting period.
2. Related party transactions in purchase or sale of assets or equities
□ Applicable √ Not Applicable
There is no related party transaction in purchase or sale of assets or equities during the reporting period.
3. Related party transactions in joint external investments
□ Applicable √ Not Applicable
There is no related party transaction in joint external investments during the reporting period.
4. Related party creditor’s rights and debts
□ Applicable √ Not Applicable
There is no related creditor’s rights or debts during the reporting period.
5. Transactions with related financial companies
□ Applicable √ Not Applicable
There is no business of deposits, loans, credit granting or other financial businesses between the Company and itsrelated financial companies.
6. Transactions between financial companies controlled by the Company and the Company’s relatedparties
□ Applicable √ Not Applicable
There is no business of deposits, loans, credit granting or other financial businesses between financial companiescontrolled by the Company and the Company’s related parties.
7. Other significant related party transactions
□ Applicable √ Not Applicable
There is no other material connected transactions during the reporting period.
XV. Significant contracts and performance
1. Matters of trusteeship, contracting and leases
(1) Trusteeship
□ Applicable √ Not Applicable
There is no trusteeship during the reporting period.
(2) Contracting
□ Applicable √ Not Applicable
There is no contracting during the reporting period.
(3) Leases
□ Applicable √ Not Applicable
There is no lease during the reporting period.
2. Significant guarantees
√ Applicable □ Not Applicable
Unit: RMB 0,000 yuan
| External guarantees by the Company and its subsidiaries to third parties (guarantees to subsidiaries are excluded) | ||||||||||
| Guaranteed parties | Announcement date of disclosure of amount guaranteed | Amount guaranteed | Actual commencement date | Actual amount guaranteed | Types of guarantees | Collaterals (if any) | Counter guarantees (if any) | Period of guarantee | Whether the guarantee is mature | Whether guarantee for related parties |
| No | ||||||||||
| Total amount of guarantees approved during the reporting period (A1) | 0 | Total amount actually guaranteed during the reporting period (A2) | 0 | |||||||
| Total amount of guarantees approved at the end of the reporting period (A3) | 0 | Total amount actually guaranteed at the end of the reporting period (A4) | 0 | |||||||
| The Company’s guarantees to subsidiaries | ||||||||||
| Guaranteed parties | Announcement date of disclosure of amount guaranteed | Amount guaranteed | Actual commencement date | Actual amount guaranteed | Types of guarantees | Collaterals (if any) | Counter guarantees (if any) | Period of guarantee | Whether the guarantee is mature | Whether guarantee for related parties |
| Shandong NHU Fine ChemicalScience and Technology Co. | 5/22/2020 | 50,000 | 3/24/2021 | 50,000 | Joint and several liability guarantee | 3/24/2021 - 12/25/2025 | No | No | ||
| Heilongjiang NHU Biotechnology Co., Ltd. | 4/22/2021 | 40,000 | 8/26/2021 | 37,000 | Joint and several liability guarantee | 8/26/2021 - 12/21/2025 | No | No | ||
| Zhejiang NHU Imports & Exports Co., Ltd. | 5/20/2023 | 25,000 | 6/16/2023 | 10,000 | Joint and several liability guarantee | 12/16/2021 - 6/15/2024 | Yes | No | ||
| Xinchang NHU Vitamins Co. | 4/22/2021 | 40,000 | 12/16/2021 | 29,000 | Joint and several liability guarantee | 12/16/2021- 12/25/2026 | No | No | ||
| NHU (Hong Kong) Trading Co., Ltd. | 5/20/2023 | 100,000 | 6/12/2023 | 15.97 | Joint and several liability guarantee | 6/12/2023 - 3/1/2024 | Yes | No | ||
| NHU (Hong Kong) Trading Co., Ltd. | 5/20/2023 | 100,000 | 8/4/2023 | 97.92 | Joint and several liability guarantee | 8/4/2023 - 5/1/2024 | Yes | No | ||
| NHU (Hong Kong) Trading Co., Ltd. | 5/20/2023 | 100,000 | 9/26/2023 | 26.85 | Joint and several liability guarantee | 9/26/2023 - 6/1/2024 | Yes | No | ||
| NHU (Hong Kong) Trading Co., Ltd. | 5/20/2023 | 100,000 | 12/5/2023 | 4.03 | Joint and several liability guarantee | 12/5/2023 - 9/1/2024 | No | No | ||
| NHU (Hong Kong) Trading Co., Ltd. | 5/20/2023 | 100,000 | 3/12/2024 | 130.68 | Joint and several liability guarantee | 3/12/2024 - 12/1/2024 | No | No | ||
| NHU (Hong Kong) Trading Co., Ltd. | 5/16/2024 | 50,000 | 6/5/2024 | 105.48 | Joint and several liability guarantee | 6/5/2024- 2/20/2025 | No | No | ||
| Zhejiang NHU Pharmaceutical Co., Ltd | 5/11/2022 | 60,000 | 6/24/2022 | 55,000 | Joint and several liability guarantee | 6/24/2022 - 6/23/2027 | No | No | ||
| Xinchang NHU Vitamins Co. | 5/11/2022 | 20,000 | 10/14/2022 | 18,000 | Joint and several liability guarantee | 10/14/2022- 10/14/2027 | No | No | ||
| NHU (Hong Kong) | 5/20/2023 | 100,000 | 6/12/2023 | 7,839.48 | Joint and | 6/12/2023 | Yes | No | ||
| Trading Co., Ltd. | several liability guarantee | - 6/12/2024 | ||||||||
| NHU (Hong Kong) Trading Co., Ltd. | 5/16/2024 | 50,000 | 6/12/2024 | 7,839.48 | Joint and several liability guarantee | 6/12/2024 - 6/12/2025 | No | No | ||
| Shandong NHU Fine ChemicalScience and Technology Co. | 5/20/2023 | 58,600 | 6/6/2023 | 58,600 | Joint and several liability guarantee | 6/6/2023 - 3/29/2028 | No | No | ||
| NHU (Hong Kong) Trading Co., Ltd. | 5/20/2023 | 100,000 | 11/20/2023 | 57,014.40 | Joint and several liability guarantee | 11/8/2023 - 11/8/2026 | No | No | ||
| Zhejiang NHU Imports & Exports Co., Ltd. | 5/16/2024 | 25,000 | 6/24/2024 | 15,000 | Joint and several liability guarantee | 6/24/2024 - 6/23/2025 | No | No | ||
| Total amount of guarantees approved for subsidiaries during the reporting period (B1) | 175,000 | Total amount actually guaranteed for subsidiaries during the reporting period (B2) | 23,075.64 | |||||||
| Total amount of guarantees approved for subsidiaries at the end of the reporting period (B3) | 479,749.11 | Total amount actually guaranteed for subsidiaries at the end of the reporting period (B4) | 327,694.07 | |||||||
| Guarantees by subsidiaries to subsidiaries | ||||||||||
| Guaranteed parties | Announcement date of disclosure of amount guaranteed | Amount guaranteed | Actual commencement date | Amount actually guaranteed | Types of guarantees | Collaterals (if any) | Counter guarantee (if any) | Period of guarantee | Whether the guarantee is mature | Whether guarantee for related parties |
| No | ||||||||||
| Total amount of guarantees approved for subsidiaries during the reporting period (C1) | 0 | Total amount actually guaranteed for sub-sidiaries during the reporting period (C2) | 0 | |||||||
| Total amount of guarantees approved for subsidiaries at the end of the reporting period (C3) | 0 | Total amount actually guaranteed for subsidiaries at the end of the reporting period (C4) | 0 | |||||||
| Total amount guaranteed by the Company (namely sum of the above three items) | ||||||||||
| Total amount of guarantees approved during the reporting period (A1+B1+C1) | 175,000 | Total amount actually guaranteed during the reporting period (A2+B2+C2) | 23,075.64 | |||||||
| Total amount of guarantees approved at the end of the reporting period (A3+B3+C3) | 479,749.11 | Total amount actually guaranteed at the end of the reporting period (A4+B4+C4) | 327,694.07 | |||||||
| Proportion of the amount actually guaranteed (A4+B4+C4) to net assets of the Company | 12.77% | |||||||||
| Including: | ||||||||||
| Balance of guarantees for shareholders, the actual controller and its related parties (D) | 272,694.07 | |||||||||
| Balance of debt guarantee directly or indirectly for guaranteed parties with debt to asset ratio exceeding 70% (E) | 272,694.07 | |||||||||
| The amount of the total amount guaranteed exceeding 50% of net assets (F) | None | |||||||||
| Total amount guaranteed of three items above (D+E+F) | None | |||||||||
Specific description of the use of composite guarantees:
None
3. Entrusted financing
√ Applicable □ Not Applicable
Unit: RMB 0,000 yuan
| Types | Source of entrusted funds | Entrusted amount | Unexpired balance | Overdue and not recovered amount | Impairment amount accrued for financial products overdue and not recovered |
| Bank financial products | Raised funds | 14,500.00 | 0.00 | 0.00 | 0.00 |
| Total | 14,500.00 | 0.00 | 0.00 | 0.00 | |
High-risk entrusted financial products with individual significant amount or low security and poor liquidity
□ Applicable √ Not Applicable
When the principal of entrusted financial products is expected to be irrevocable or there are other conditions result in impairment ofentrusted financial products
□ Applicable √ Not Applicable
4. Other significant contracts
□ Applicable √ Not Applicable
There is no other significant contract during the reporting period.
XIII. Other significant events
√ Applicable □ Not Applicable
I Progress of Investment Project with Raised Funds
With the approval of [2017] No. 1684 document of China Securities Regulatory Commission, the company's lead underwriter,CSC Securities Co., Ltd., privately issued 175 million common shares (A shares) to specific objects at an issue price of RMB
28.00/share, raising a total of RMB 4,900 million. After deducting the underwriting and recommendation fees of RMB 30 millionyuan (including tax), the raised funds amounted to RMB 4,870 million, which was remitted to the raised funds supervision accountof the company by the lead underwriter, CSC Securities Co., Ltd. on December 7, 2017. In addition, after deducting lawyer fees,audit fees, capital verification fees and other issuance expenses of RMB 4.62 million (excluding tax), and considering thedeductible VAT input tax of RMB 1.70 million of underwriting fees and recommendation fees deducted by the lead underwriter,the net amount of funds raised was RMB 4,867.08 million. The availability of the above raised funds has been verified by TianjianCertified Public Accountants (special general partnership), who issued the capital verification report ([2017] No. 503).The company convened the third meeting of the ninth board of directors and the third meeting of the ninth supervisory board onApril 19, 2024. The "Proposal on the Completion of the Fundraising Investment Project and the Permanent Supplement of theSurplus Raised Funds to Working Capital" was reviewed and approved. In order to improve the efficiency of the use of surplusraised funds, it was agreed to terminate the "Annual Production of 250,000 Tons of Methionine Project," which was funded by thenon-public issuance of shares in 2017 and to permanently supplement working capital with the surplus raised funds. During thereporting period, the balance of the company's raised funds special account has been transferred to the company's generalsettlement account, and the relevant cancellation procedures of the raised funds special account have been completed. The relevant
fund raising supervision agreements signed by the Company and its subsidiaries with the sponsor institutions and the commercialbanks depositing the raised funds shall terminate accordingly. For details, please refer to Announcement on the Completion of theCancellation of the Special Account for raised funds (2024-024) published by the Company on designated information disclosuremedia and http://www.cninfo.com.cn.II Progress of the controlling shareholder in increasing the company's shares
Based on the confidence of the company's future sustainable development, and the recognition of the company's value, to enhanceinvestor confidence, the company's controlling shareholder NHU Holding Group Co., Ltd. plans to increase its shares of theCompany in the next six months from October 26, 2023, through the means permitted by the trading system of Shenzhen StockExchange (including but not limited to centralized bidding, block trading, etc.). The amount of shares to be increased shall not beless than RMB 200 million and shall not exceed RMB 300 million. There is no price range for this plan, and the plan will begradually implemented according to the volatility of the company's stock price and the overall trend of the capital market. As ofMarch 15, 2024, NHU Holding Company has accumulated 17,869,906 shares of the Company, accounting for 0.58% of the totalshare capital of the Company, and accumulated additional holdings of 299,656,526.16 yuan (excluding transaction fees). Fordetails, please refer to Announcement on the results of the implementation of the controlling shareholder's plan to increase thecompany's shares (2024-003) published by the Company on designated information disclosure media andhttp://www.cninfo.com.cn.
XIV. Significant events of subsidiaries of the Company
√ Applicable □ Not Applicable
In order to further optimise the Company's assets, improve the industrial structure, focus on the main business of fine chemicals,and improve the profit level and asset quality. The Company sold 100% equity interest of its wholly-owned subsidiary, QionghaiBoao Lido Real Estate Co., Ltd. to Xinhecheng Holding Group Limited at a price of RMB82.791 million. For details, please referto the Announcement on Disposal of Assets and Connected Transaction (2024-026) published on the designated informationdisclosure media and Juchao Information Website (http://www.cninfo.com.cn) on June 19,2024.
Section VII Movements in Shares and Information about
ShareholdersI. Movements in shares
1. Details
Unit: Share
| Items | Before | Movements（+/-） | After | ||||||
| Quantity | % to total | Issue of new shares | Bonus shares | Reserve transferred to shares | Others | Subtotal | Quantity | % to total | |
| I. Restricted shares | 36,409,752 | 1.18% | 36,409,752 | 1.18% | |||||
| 1. Held by other domestic parties | 36,409,752 | 1.18% | 36,409,752 | 1.18% | |||||
| Including: Held by domestic natural persons | 36,409,752 | 1.18% | 36,409,752 | 1.18% | |||||
| II. Unrestricted shares | 3,054,497,604 | 98.82% | 3,054,497,604 | 98.82% | |||||
| 1. RMB ordinary shares | 3,054,497,604 | 98.82% | 3,054,497,604 | 98.82% | |||||
| III. Total | 3,090,907,356 | 100.00% | 3,090,907,356 | 100.00% | |||||
Reason for movements
□ Applicable √ Not Applicable
Approval on movements in shares
□ Applicable √ Not Applicable
Transfer of shares
□ Applicable √ Not Applicable
Progress of the Share Repurchase Plan
□ Applicable √ Not Applicable
Implementation progress of shareholding reduction for shares repurchased through centralized bidding
□ Applicable √ Not applicable
Effect of movements in shares on financial indicators of preceding year and preceding period such as basic EPS anddiluted EPS, net assets per share attributable to shareholders of ordinary shares
□ Applicable √ Not applicable
Other contents the Company considered as necessary or securities regulatory institutions required disclosure
□ Applicable √ Not applicable
2. Movement in restricted shares
□ Applicable √ Not applicable
II. Issuance and listing of securities
□ Applicable √ Not Applicable
III.Number of shareholders of the Company and their shareholding conditions
Unit: Share
| Total shareholders of ordinary shares at the end of the reporting period | 86,381 | Total shareholders of preferred shares with voting rights restored at the end of the reporting period | 0 | |||||
| Shareholders with holding proportion over 5% or the top 10 shareholders with largest holding proportions (Excluding lending shares through refinancing) | ||||||||
| Shareholders | Nature of shareholders | Holding proportion | Quantity of ordinary shares at the end of the reporting period | Movements during the reporting period | Quantity of restricted shares | Quantity of unrestricted shares | Shares pledged, marked or frozen | |
| Condition | Quantity | |||||||
| NHU Holding Group Co., Ltd. | Domestic non-state-owned legal person | 49.80% | 1,539,232,431 | 2,823,080 | 0 | 1,539,232,431 | N/A | 0 |
| Hong Kong Securities Clearing Company Limited | Overseas legal person | 4.19% | 129,400,780 | 29,917,783 | 0 | 129,400,780 | N/A | 0 |
| Shanghai Chongyang Strategic Investment Co., Ltd. － Chongyang Strategic Huizhi Fund | Others | 1.75% | 54,072,200 | 0 | 0 | 54,072,200 | N/A | 0 |
| National Social Security Fund No.503Portfolio | Others | 1.33% | 41,000,091 | -9 | 0 | 41,000,091 | N/A | 0 |
| The Company－Employee stock ownership plan phase IV | Others | 0.96% | 29,528,181 | 0 | 0 | 29,528,181 | N/A | 0 |
| China Construction Bank Corporation -E Fund Shanghai and Shenzhen 300 Medical and Health Trading Open-end Index Fund | Others | 0.90% | 27,971,477 | 4,971,800 | 0 | 27,971,477 | N/A | 0 |
| China Industrial and Commercial Bank Corporation- Huatai-Burry CSI 300 exchange-traded index Securities Investment Fund | Others | 0.70% | 21,707,021 | 10,124,862 | 0 | 21,707,021 | N/A | 0 |
| Shanghai Chongyang Strategic Investment Co., Ltd. － Chongyang Strategic | Others | 0.53% | 16,248,559 | 0 | 0 | 16,248,559 | N/A | 0 |
| Yingzhi Fund | |||||||||
| National Social Security Fund No.117 Portfolio | Others | 0.52% | 16,019,748 | -2,000,000 | 0 | 16,019,748 | N/A | 0 | |
| China Construction Bank Corporation - E Fund Shanghai and Shenzhen 300 Medical and Health Trading Open-end Index Fund | Others | 0.47% | 14,639,831 | 10,344,600 | 0 | 14,639,831 | N/A | 0 | |
| Strategic investors or ordinary legal persons that became one of the top 10 shareholders due to the allotment of new shares | Shanghai Chongyang Strategic Investment Co., Ltd. － Chongyang Strategic Huizhi Fund became one of the top 10 shareholders with largest holding proportions due to its participation in private placement of shares in 2017. | ||||||||
| Remarks on relationships or concerted action between the top 10 shareholders with largest holding proportions | The Company does not know whether other shareholders have relationships and whether they are persons acting in concert as defined in Administration of the Takeover of Listed Companies Procedures. | ||||||||
| Remarks on proxy voting and waiver of voting right of the above shareholders | None | ||||||||
| Special remarks on top 10 shareholders with special repurchase accounts | The Company’s special securities account for repurchase is attributable to the top 10 shareholders, who however did not participate in the presentation of such balances. | ||||||||
| Top 10 shareholders with unrestricted shares (Excluding shares lent through refinancing and executive lock up shares) | |||||||||
| Shareholders | Quantity of unrestricted shares at the end of the reporting period | Category of shares | |||||||
| Category | Quantity | ||||||||
| NHU Holding Group Co., Ltd. | 1,539,232,431 | RMB ordinary shares | 1,539,232,431 | ||||||
| Hong Kong Securities Clearing Company Limited | 129,400,780 | RMB ordinary shares | 129,400,780 | ||||||
| Shanghai Chongyang Strategic Investment Co., Ltd. － Chongyang Strategic Huizhi Fund | 54,072,200 | RMB ordinary shares | 54,072,200 | ||||||
| National Social Security Fund No.503Portfolio | 41,000,091 | RMB ordinary shares | 41,000,091 | ||||||
| The Company－Employee stock ownership plan phase IV | 29,528,181 | RMB ordinary shares | 29,528,181 | ||||||
| China Construction Bank Corporation -E Fund Shanghai and Shenzhen 300 Medical and Health Trading Open-end Index Fund | 27,971,477 | RMB ordinary shares | 27,971,477 | ||||||
| China Industrial and Commercial Bank Corporation- Huatai-Burry CSI 300 exchange-traded index Securities Investment Fund | 21,707,021 | RMB ordinary shares | 21,707,021 | ||||||
| Shanghai Chongyang Strategic Investment Co., Ltd. － Chongyang Strategic Yingzhi Fund | 16,248,559 | RMB ordinary shares | 16,248,559 | ||||||
| National Social Security Fund No.117 Portfolio | 16,019,748 | RMB ordinary shares | 16,019,748 | ||||||
| China Construction Bank Corporation - E Fund Shanghai and Shenzhen 300 Medical and Health Trading Open-end Index Fund | 14,639,831 | RMB ordinary shares | 14,639,831 | ||||||
| Remarks on relationships or concerted action between the top 10 shareholders with unrestricted shares, and between the top 10 shareholders with unrestricted shares and top 10 shareholders with largest holding proportions. | The Company does not know whether other shareholders have relationships and whether they are persons acting in concert as defined in Administration of the Takeover of Listed Companies Procedures. | ||||||||
| Remarks on top 10 shareholders of ordinary shares participating in securities margin trading | Shanghai Chongyang Strategic Investment Co., Ltd. － Chongyang Strategic Huizhi Fund holds 54,072,127 shares through client account of collateral securities for margin trading of Guotai Junan Securities Co., Ltd.; Shanghai Chongyang Strategic Investment Co., Ltd. － Chongyang Strategic Yingzhi Fund holds 16,248,559 shares through client account of collateral securities for margin trading of Citic Securities Co., Ltd. | ||||||||
Note: The Company’s special securities account for repurchase is attributable to the top 10 shareholders withunrestricted shares, who however did not participate in the presentation of such balances.
Shareholders holding more than 5% of shares, top 10 shareholders and top 10 shareholders with unlimited shares in circulationparticipating in the lending of shares in the transfer and financing business.
√Applicable □Not applicable
Unit: Share
| Shareholders with holding proportion over 5% , the top 10 shareholders and the top 10 shareholders' participation in securities lending and borrowing transactions | ||||||||
| Shareholder name (full name) | Holdings in ordinary account and credit account at the beginning of the period | Shares borrowed for securities lending at the beginning of the period and have not yet been returned | Holdings in ordinary account and credit account at the end of the period | Shares borrowed for securities lending at the end of the period and have not yet been returned | ||||
| Total quantity | Ratio to total share capital | Total quantity | Ratio to total share capital | Total quantity | Ratio to total share capital | Total quantity | Ratio to total share capital | |
| China Construction Bank Corporation -E Fund Shanghai and Shenzhen 300 Medical and Health Trading Open-end Index Fund | 22,999,677 | 0.74% | 252,800 | 0.01% | 27,971,477 | 0.90% | 0 | 0.00% |
| China Industrial and Commercial Bank Corporation- Huatai-Burry CSI 300 exchange-traded index Securities Investment Fund | 11,582,159 | 0.37% | 35,600 | 0.00% | 21,707,021 | 0.70% | 0 | 0.00% |
The top 10 shareholders and the top 10 holders of unlimited shares have experienced changes due to participating inthe lending of shares in the transfer and financing business compared to the previous period.
□ Applicable √Not applicable
Did the top 10 shareholders of ordinary shares and the top 10 shareholders of unrestricted ordinary shares performagreed repurchase transaction during the reporting period?
□ Yes √ No
The top 10 shareholders of ordinary shares and the top 10 shareholders of unrestricted ordinary shares did not performagreed repurchase transaction during the reporting period.
IV. Movement in shares of directors, supervisors and senior executives
□ Applicable √ Not applicable
The shares of the company’s directors, supervisors and senior executives remains unchanged during the currentreporting period, please refer to the 2023 Annual Report for details.V. Changes of holding shareholders or controlling shareholders
Changes of holding shareholders during the reporting period
□ Applicable √ Not applicable
The Company has no changes of holding shareholders during the reporting period.Changes of actual controller within the reporting period
□ Applicable √ Not applicable
The Company has no changes in actual controller within the reporting period.
Section VIII Preferred Shares
□ Applicable √ Not applicable
The Company has no preferred shares during the reporting period.
Section IX Bonds
□ Applicable √ Not applicable
Section X Financial Report
I. Audit Reports
Has the semi-annual report been audited
□ Yes √ No
The Company’s semi-annual report has not been audited.II. Financial Statements
The monetary unit of the financial statements is Renminbi (RMB) Yuan.
1. Consolidated balance sheet
Prepared by Zhejiang NHU Co., Ltd.
June 30, 2024
Unit: RMB Yuan
| Items | June 30, 2024 | January 1, 2024 |
| Current assets: | ||
| Cash and bank balances | 4,901,773,897.05 | 4,543,361,146.98 |
| Settlement funds | ||
| Loans to other banks | ||
| Held-for-trading financial assets | 8,741,096.39 | 173,056,050.95 |
| Derivative financial assets | ||
| Notes receivable | 190,699,104.28 | 116,125,267.70 |
| Accounts receivable | 3,246,276,963.34 | 2,483,266,952.88 |
| Receivables financing | 537,845,382.40 | 331,634,090.61 |
| Advances paid | 167,536,465.65 | 209,274,602.05 |
| Premiums receivable | ||
| Reinsurance accounts receivable | ||
| Reinsurance reserve receivable | ||
| Other receivables | 184,691,433.46 | 142,060,705.67 |
| Including: Interest receivable | ||
| Dividend receivable | ||
| Financial assets under reverse repo | ||
| Inventories | 4,289,303,730.42 | 4,318,878,875.34 |
| Including: Data resources | ||
| Contract assets | ||
| Assets held for sale | ||
| Non-current assets due within one year |
| Items | June 30, 2024 | January 1, 2024 |
| Other current assets | 18,335,275.71 | 68,232,745.03 |
| Total current assets | 13,545,203,348.70 | 12,385,890,437.21 |
| Non-current assets: | ||
| Loans and advances | ||
| Debt investments | ||
| Other debt investments | ||
| Long-term receivables | ||
| Long-term equity investments | 862,008,342.50 | 697,145,200.08 |
| Other equity instrument investments | 21,998,147.55 | 22,998,147.55 |
| Other non-current financial assets | ||
| Investment property | ||
| Fixed assets | 22,034,912,795.44 | 21,860,082,637.13 |
| Construction in progress | 912,349,768.88 | 1,621,882,507.56 |
| Productive biological assets | ||
| Oil & gas assets | ||
| Right-of-use assets | 5,658,877.20 | 6,603,631.56 |
| Intangible assets | 2,521,574,569.05 | 2,407,560,753.82 |
| Including: Data resources | ||
| Development expenditures | ||
| Including: Data resources | ||
| Goodwill | 3,622,704.97 | 3,622,704.97 |
| Long-term prepayments | 11,228,786.75 | 11,697,961.72 |
| Deferred tax assets | 4,843,514.77 | 650,079.18 |
| Other non-current assets | 170,894,040.19 | 138,112,803.89 |
| Total non-current assets | 26,549,091,547.30 | 26,770,356,427.46 |
| Total assets | 40,094,294,896.00 | 39,156,246,864.67 |
| Current liabilities: | ||
| Short-term borrowings | 1,576,838,512.31 | 1,235,688,062.90 |
| Central bank loans | ||
| Loans from other banks | ||
| Held-for-trading financial liabilities | ||
| Derivative financial liabilities | ||
| Notes payable | 307,717,300.33 | 349,347,472.36 |
| Accounts payable | 1,746,004,140.97 | 1,930,958,598.05 |
| Advances received | ||
| Contract liabilities | 174,322,469.67 | 251,008,240.97 |
| Financial liabilities under repo | ||
| Absorbing deposit and interbank deposit |
| Items | June 30, 2024 | January 1, 2024 |
| Deposit for agency security transaction | ||
| Deposit for agency security underwriting | ||
| Employee benefits payable | 284,307,639.90 | 418,273,203.88 |
| Taxes and rates payable | 339,696,046.49 | 301,794,080.40 |
| Other payables | 167,570,834.36 | 53,671,773.90 |
| Including: Interest payable | ||
| Dividend payable | ||
| Handling fee and commission payable | ||
| Reinsurance accounts payable | ||
| Liabilities held for sale | ||
| Non-current liabilities due within one year | 1,850,286,515.25 | 1,564,392,458.67 |
| Other current liabilities | 18,929,551.34 | 17,260,124.76 |
| Total current liabilities | 6,465,673,010.62 | 6,122,394,015.89 |
| Non-current liabilities: | ||
| Insurance policy reserve | ||
| Long-term borrowings | 6,551,494,021.20 | 6,821,643,194.58 |
| Bonds payable | ||
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Lease liabilities | 4,299,247.61 | 5,240,136.43 |
| Long-term payables | ||
| Long-term employee benefits payable | ||
| Provisions | ||
| Deferred income | 1,048,201,721.31 | 1,065,586,274.49 |
| Deferred tax liabilities | 241,604,864.92 | 221,675,090.41 |
| Other non-current liabilities | ||
| Total non-current liabilities | 7,845,599,855.04 | 8,114,144,695.91 |
| Total liabilities | 14,311,272,865.66 | 14,236,538,711.80 |
| Equity: | ||
| Share capital | 3,090,907,356.00 | 3,090,907,356.00 |
| Other equity instruments | ||
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Capital reserve | 3,613,345,485.13 | 3,613,345,485.13 |
| Less: Treasury shares | 500,059,711.25 | 500,059,711.25 |
| Other comprehensive income | 106,065,011.81 | 103,920,732.85 |
| Items | June 30, 2024 | January 1, 2024 |
| Special reserve | 91,027,587.10 | 60,860,818.76 |
| Surplus reserve | 1,545,453,678.00 | 1,545,453,678.00 |
| General risk reserve | ||
| Undistributed profit | 17,711,555,848.46 | 16,890,233,961.50 |
| Total equity attributable to the parent company | 25,658,295,255.25 | 24,804,662,320.99 |
| Non-controlling interest | 124,726,775.09 | 115,045,831.88 |
| Total equity | 25,783,022,030.34 | 24,919,708,152.87 |
| Total liabilities & equity | 40,094,294,896.00 | 39,156,246,864.67 |
Legal representative: Hu Baifan Officer in charge of accounting: Shi Guanqun Head of accounting department: He Jiangyong
2. Parent company balance sheet
Unit: RMB Yuan
| Items | June 30, 2024 | January 1, 2024 |
| Current assets: | ||
| Cash and bank balances | 3,074,454,540.77 | 2,944,073,209.24 |
| Held-for-trading financial assets | ||
| Derivative financial assets | ||
| Notes receivable | 188,647,102.48 | 116,657,645.60 |
| Accounts receivable | 709,940,277.16 | 626,644,050.39 |
| Receivables financing | ||
| Advances paid | 6,560,737.51 | 4,143,777.83 |
| Other receivables | 2,077,641,921.09 | 2,908,050,463.81 |
| Including: Interest receivable | ||
| Dividend receivable | ||
| Inventories | 342,337,638.09 | 295,102,427.23 |
| Including: Data resources | ||
| Contract assets | ||
| Assets held for sale | ||
| Non-current assets due within one year | ||
| Other current assets | 4,009,196.74 | 1,925,459.39 |
| Total current assets | 6,403,591,413.84 | 6,896,597,033.49 |
| Non-current assets: | ||
| Debt investments | ||
| Other debt investments | ||
| Long-term receivables | ||
| Long-term equity investments | 11,392,951,139.09 | 10,678,236,147.42 |
| Other equity instrument investments | 71,998,147.55 | 72,998,147.55 |
| Other non-current financial assets |
| Items | June 30, 2024 | January 1, 2024 |
| Investment property | ||
| Fixed assets | 576,306,595.49 | 612,700,666.98 |
| Construction in progress | 112,955,029.44 | 71,331,975.01 |
| Productive biological assets | ||
| Oil & gas assets | ||
| Right-of-use assets | 2,550,257.08 | 2,630,791.48 |
| Intangible assets | 277,028,936.86 | 145,613,180.34 |
| Including: Data resources | ||
| Development expenditures | ||
| Including: Data resources | ||
| Goodwill | ||
| Long-term prepayments | 716,686.40 | 1,165,411.93 |
| Deferred tax assets | 6,933,439.73 | 10,794,527.34 |
| Other non-current assets | 29,178,888.64 | 29,165,952.28 |
| Total non-current assets | 12,470,619,120.28 | 11,624,636,800.33 |
| Total assets | 18,874,210,534.12 | 18,521,233,833.82 |
| Current liabilities: | ||
| Short-term borrowings | 452,458,527.77 | 496,760,409.72 |
| Held-for-trading financial liabilities | ||
| Derivative financial liabilities | ||
| Notes payable | 122,822,203.69 | 109,519,196.45 |
| Accounts payable | 99,773,414.34 | 115,590,089.62 |
| Advances received | ||
| Contract liabilities | 4,332,288.12 | 3,836,737.57 |
| Employee benefits payable | 44,039,075.11 | 74,330,678.60 |
| Taxes and rates payable | 2,209,257.45 | 13,608,334.34 |
| Other payables | 129,075,526.83 | 16,876,789.87 |
| Including: Interest payable | ||
| Dividend payable | ||
| Liabilities held for sale | ||
| Non-current liabilities due within one year | 1,242,203,001.42 | 687,277,786.06 |
| Other current liabilities | 545,953.63 | 494,804.24 |
| Total current liabilities | 2,097,459,248.36 | 1,518,294,826.47 |
| Non-current liabilities: | ||
| Long-term borrowings | 3,914,123,266.66 | 4,350,488,292.95 |
| Bonds payable | ||
| Including: Preferred shares | ||
| Perpetual bonds |
| Items | June 30, 2024 | January 1, 2024 |
| Lease liabilities | 2,542,661.88 | 2,715,619.54 |
| Long-term payables | ||
| Long-term employee benefits payable | ||
| Provisions | ||
| Deferred income | 13,711,087.08 | 11,067,751.34 |
| Deferred tax liabilities | ||
| Other non-current liabilities | ||
| Total non-current liabilities | 3,930,377,015.62 | 4,364,271,663.83 |
| Total liabilities | 6,027,836,263.98 | 5,882,566,490.30 |
| Equity: | ||
| Share capital | 3,090,907,356.00 | 3,090,907,356.00 |
| Other equity instruments | ||
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Capital reserve | 3,353,675,803.74 | 3,353,675,803.74 |
| Less: Treasury shares | 500,059,711.25 | 500,059,711.25 |
| Other comprehensive income | 506,954.43 | 506,954.43 |
| Special reserve | 15,010,114.75 | 10,583,344.97 |
| Surplus reserve | 1,545,453,678.00 | 1,545,453,678.00 |
| Undistributed profit | 5,340,880,074.47 | 5,137,599,917.63 |
| Total equity | 12,846,374,270.14 | 12,638,667,343.52 |
| Total liabilities & equity | 18,874,210,534.12 | 18,521,233,833.82 |
Legal representative: Hu Baifan Officer in charge of accounting: Shi Guanqun Head of accounting department: He Jiangyong
3. Consolidated income statement
Unit: RMB Yuan
| Items | 2024 Semi-Annual | 2023 Semi-Annual |
| I. Total operating revenue | 9,844,712,214.36 | 7,418,514,576.09 |
| Including: Operating revenue | 9,844,712,214.36 | 7,418,514,576.09 |
| Interest income | ||
| Premiums earned | ||
| Revenue from handling charges and commission | ||
| II. Total operating cost | 7,207,812,239.51 | 5,746,931,719.68 |
| Including: Operating cost | 6,191,379,061.37 | 4,989,533,832.95 |
| Interest expenses | ||
| Handling charges and commission expenditures | ||
| Surrender value | ||
| Net payment of insurance claims |
| Items | 2024 Semi-Annual | 2023 Semi-Annual |
| Net provision of insurance policy reserve | ||
| Premium bonus expenditures | ||
| Reinsurance expenses | ||
| Taxes and surcharges | 93,982,574.82 | 66,397,098.56 |
| Selling expenses | 74,869,581.39 | 66,941,370.80 |
| Administrative expenses | 295,567,957.53 | 244,646,451.17 |
| R&D expenses | 480,961,724.14 | 416,575,391.59 |
| Financial expenses | 71,051,340.26 | -37,162,425.39 |
| Including: Interest expenses | 143,713,361.26 | 163,988,612.81 |
| Interest income | 67,461,973.58 | 78,203,398.06 |
| Add: Other income | 130,215,288.28 | 102,847,223.45 |
| Investment income (or less: losses) | 47,554,398.65 | 43,899,900.63 |
| Including: Investment income from associates and joint ventures | 25,496,597.50 | 34,855,314.27 |
| Gains from derecognition of financial assets at amortized cost | ||
| Gains on foreign exchange (or less: losses) | ||
| Gains on net exposure to hedging risk (or less: losses) | ||
| Gains on changes in fair value (or less: losses) | -4,445,860.49 | -11,268,469.70 |
| Credit impairment loss | -98,041,802.36 | 6,389,579.21 |
| Assets impairment loss | -10,175,642.76 | -81,296,758.10 |
| Gains on asset disposal (or less: losses) | -1,128,442.54 | 13,545,778.16 |
| III. Operating profit (or less: losses) | 2,700,877,913.63 | 1,745,700,110.06 |
| Add: Non-operating revenue | 2,373,545.46 | 3,576,842.57 |
| Less: Non-operating expenditures | 3,797,633.81 | 1,619,001.38 |
| IV. Profit before tax (or less: total loss) | 2,699,453,825.28 | 1,747,657,951.25 |
| Less: Income tax | 482,498,449.43 | 251,283,197.83 |
| V. Net profit (or less: net loss) | 2,216,955,375.85 | 1,496,374,753.42 |
| (I) Categorized by the continuity of operations | ||
| 1. Net profit from continuing operations (or less: net loss) | 2,216,955,375.85 | 1,496,374,753.42 |
| 2. Net profit from discontinued operations (or less: net loss) | ||
| (II) Categorized by the portion of equity ownership | ||
| 1. Net profit attributable to owners of parent company | 2,204,361,642.96 | 1,483,229,236.96 |
| 2. Net profit attributable to non-controlling shareholders | 12,593,732.89 | 13,145,516.46 |
| VI. Other comprehensive income after tax | -768,510.72 | 36,723,815.69 |
| Items attributable to the owners of the parent company | 2,144,278.96 | 29,652,134.01 |
| (I) Not to be reclassified subsequently to profit or loss | ||
| 1. Changes in remeasurement on the net defined |
| Items | 2024 Semi-Annual | 2023 Semi-Annual |
| benefit plan | ||
| 2. Items under equity method that will not be reclassified to profit or loss | ||
| 3. Changes in fair value of other equity instrument investments | ||
| 4. Changes in fair value of own credit risk | ||
| 5. Others | ||
| (II) To be reclassified subsequently to profit or loss | 2,144,278.96 | 29,652,134.01 |
| 1. Items under equity method that may be reclassified to profit or loss | ||
| 2. Changes in fair value of other debt investments | ||
| 3. Profit or loss from reclassification of financial assets into other comprehensive income | ||
| 4. Provision for credit impairment of other debt investments | ||
| 5. Cash flow hedging reserve | ||
| 6. Translation reserve | 2,144,278.96 | 29,652,134.01 |
| 7. Others | ||
| Items attributable to non-controlling shareholders | -2,912,789.68 | 7,071,681.68 |
| VII. Total comprehensive income | 2,216,186,865.13 | 1,533,098,569.11 |
| Items attributable to the owners of the parent company | 2,206,505,921.92 | 1,512,881,370.97 |
| Items attributable to non-controlling shareholders | 9,680,943.21 | 20,217,198.14 |
| VIII. Earnings per share (EPS): | ||
| (I) Basic EPS (yuan per share) | 0.71 | 0.48 |
| (II) Diluted EPS (yuan per share) | 0.71 | 0.48 |
Net profit realized by the combined party in business combination under common control before the business combination in thecurrent period was 0.00 yuan, and net profit realized by the combined party in the previous period was 0.00 yuan.Legal representative: Hu Baifan Officer in charge of accounting: Shi Guanqun Head of accounting department: He Jiangyong
4. Parent company income statement
Unit: RMB Yuan
| Items | 2024 Semi-Annual | 2023 Semi-Annual |
| I. Operating revenue | 1,678,611,503.49 | 1,467,649,891.79 |
| Less: Operating cost | 1,478,674,881.01 | 1,286,663,766.90 |
| Taxes and surcharges | 1,801,342.29 | 5,272,107.65 |
| Selling expenses | 17,887,398.02 | 14,547,584.98 |
| Administrative expenses | 86,384,680.36 | 71,695,788.38 |
| R&D expenses | 104,631,263.58 | 105,896,011.00 |
| Financial expenses | 36,830,555.80 | 26,721,645.73 |
| Including: Interest expenses | 82,789,341.19 | 82,410,752.78 |
| Interest income | 47,586,057.68 | 55,944,010.36 |
| Add: Other income | 18,076,084.86 | 20,950,696.09 |
| Items | 2024 Semi-Annual | 2023 Semi-Annual |
| Investment income (or less: losses) | 1,586,250,480.59 | 1,460,083,688.60 |
| Including: Investment income from associates and joint ventures | 13,076,861.11 | 17,189,195.23 |
| Gains from derecognition of financial assets at amortized cost | ||
| Gains on net exposure to hedging risk (or less: losses) | ||
| Gains on changes in fair value (or less: losses) | ||
| Credit impairment loss | 39,523,400.83 | -76,822,623.15 |
| Assets impairment loss | -5,439,745.02 | -1,816,889.00 |
| Gains on asset disposal (or less: losses) | -451,622.70 | 12,144,624.20 |
| II. Operating profit (or less: losses) | 1,590,359,980.99 | 1,371,392,483.89 |
| Add: Non-operating revenue | 555,050.49 | 1,629,246.59 |
| Less: Non-operating expenditures | 733,814.28 | 70,000.00 |
| III. Profit before tax (or less: total loss) | 1,590,181,217.20 | 1,372,951,730.48 |
| Less: Income tax | 3,861,304.36 | -9,060,433.16 |
| IV. Net profit (or less: net loss) | 1,586,319,912.84 | 1,382,012,163.64 |
| (I) Net profit from continuing operations (or less: net loss) | 1,586,319,912.84 | 1,382,012,163.64 |
| (II) Net profit from discontinued operations (or less: net loss) | ||
| V. Other comprehensive income after tax | ||
| (I) Not to be reclassified subsequently to profit or loss | ||
| 1. Changes in remeasurement on the net defined benefit plan | ||
| 2. Items under equity method that will not be reclassified to profit or loss | ||
| 3. Changes in fair value of other equity instrument investments | ||
| 4. Changes in fair value of own credit risk | ||
| 5. Others | ||
| (II) To be reclassified subsequently to profit or loss | ||
| 1. Items under equity method that may be reclassified to profit or loss | ||
| 2. Changes in fair value of other debt investments | ||
| 3. Profit or loss from reclassification of financial assets into other comprehensive income | ||
| 4. Provision for credit impairment of other debt investments | ||
| 5. Cash flow hedging reserve | ||
| 6. Translation reserve | ||
| 7. Others | ||
| VI. Total comprehensive income | 1,586,319,912.84 | 1,382,012,163.64 |
| Items | 2024 Semi-Annual | 2023 Semi-Annual |
| VII. Earnings per share (EPS): | ||
| (I) Basic EPS (yuan per share) | ||
| (II) Diluted EPS (yuan per share) |
Legal representative: Hu Baifan Officer in charge of accounting: Shi Guanqun Head of accounting department: He Jiangyong
5. Consolidated cash flow statement
Unit: RMB Yuan
| Items | 2024 Semi-Annual | 2023 Semi-Annual |
| I. Cash flows from operating activities: | ||
| Cash receipts from sale of goods or rendering of services | 8,604,890,987.69 | 7,691,504,205.43 |
| Net increase of client deposit and interbank deposit | ||
| Net increase of central bank loans | ||
| Net increase of loans from other financial institutions | ||
| Cash receipts from original insurance contract premium | ||
| Net cash receipts from reinsurance | ||
| Net increase of policy-holder deposit and investment | ||
| Cash receipts from interest, handling charges and commission | ||
| Net increase of loans from others | ||
| Net increase of repurchase | ||
| Net cash receipts from agency security transaction | ||
| Receipts of tax refund | 366,540,460.23 | 623,052,104.04 |
| Other cash receipts related to operating activities | 153,666,344.64 | 211,777,249.15 |
| Subtotal of cash inflows from operating activities | 9,125,097,792.56 | 8,526,333,558.62 |
| Cash payments for goods purchased and services received | 4,967,376,966.76 | 5,567,275,176.60 |
| Net increase of loans and advances to clients | ||
| Net increase of central bank deposit and interbank deposit | ||
| Cash payments for insurance indemnities of original insurance contracts | ||
| Net increase of loans to others | ||
| Cash payments for interest, handling charges and commission | ||
| Cash payments for policy bonus | ||
| Cash paid to and on behalf of employees | 1,135,778,052.77 | 1,092,533,915.84 |
| Items | 2024 Semi-Annual | 2023 Semi-Annual |
| Cash payments for taxes and rates | 682,887,168.82 | 447,327,818.25 |
| Other cash payments related to operating activities | 200,731,544.86 | 183,634,026.00 |
| Subtotal of cash outflows from operating activities | 6,986,773,733.21 | 7,290,770,936.69 |
| Net cash flows from operating activities | 2,138,324,059.35 | 1,235,562,621.93 |
| II. Cash flows from investing activities: | ||
| Cash receipts from withdrawal of investments | 1,000,000.00 | |
| Cash receipts from investment income | 16,184,824.86 | 30,163,695.90 |
| Net cash receipts from the disposal of fixed assets, intangible assets and other long-term assets | 160,774.19 | 140,680.08 |
| Net cash receipts from the disposal of subsidiaries & other business units | 80,930,328.36 | |
| Other cash receipts related to investing activities | 145,000,000.00 | 740,938,810.13 |
| Subtotal of cash inflows from investing activities | 243,275,927.41 | 771,243,186.11 |
| Cash payments for the acquisition of fixed assets, intangible assets and other long-term assets | 833,286,216.66 | 2,373,242,224.79 |
| Cash payments for investments | 155,675,400.17 | 237,508,000.00 |
| Net increase of pledged borrowings | ||
| Net cash payments for the acquisition of subsidiaries & other business units | ||
| Other cash payments related to investing activities | 250,000,000.00 | |
| Subtotal of cash outflows from investing activities | 988,961,616.83 | 2,860,750,224.79 |
| Net cash flows from investing activities | -745,685,689.42 | -2,089,507,038.68 |
| III. Cash flows from financing activities: | ||
| Cash receipts from absorbing investments | 1,927,407.95 | |
| Including: Cash received by subsidiaries from non-controlling shareholders as investments | 1,927,407.95 | |
| Cash receipts from borrowings | 2,383,504,630.93 | 3,618,534,438.57 |
| Other cash receipts related to financing activities | ||
| Subtotal of cash inflows from financing activities | 2,385,432,038.88 | 3,618,534,438.57 |
| Cash payments for the repayment of borrowings | 1,931,710,157.62 | 2,772,078,719.75 |
| Cash payments for distribution of dividends or profits and for interest expenses | 1,523,177,553.77 | 1,710,367,614.94 |
| Including: Cash paid by subsidiaries to non-controlling shareholders as dividend or profit | ||
| Other cash payments related to | 807,362.26 | 1,407,620.33 |
| Items | 2024 Semi-Annual | 2023 Semi-Annual |
| financing activities | ||
| Subtotal of cash outflows from financing activities | 3,455,695,073.65 | 4,483,853,955.02 |
| Net cash flows from financing activities | -1,070,263,034.77 | -865,319,516.45 |
| IV. Effect of foreign exchange rate changes on cash & cash equivalents | 61,371,597.46 | 75,313,603.44 |
| V. Net increase in cash and cash equivalents | 383,746,932.62 | -1,643,950,329.76 |
| Add: Opening balance of cash and cash equivalents | 4,446,570,415.30 | 5,151,841,931.86 |
| VI. Closing balance of cash and cash equivalents | 4,830,317,347.92 | 3,507,891,602.10 |
Legal representative: Hu Baifan Officer in charge of accounting: Shi Guanqun Head of accounting department: He Jiangyong
6. Parent company cash flow statement
Unit: RMB Yuan
| Items | 2024 Semi-Annual | 2023 Semi-Annual |
| I. Cash flows from operating activities: | ||
| Cash receipts from sale of goods and rendering of services | 1,562,609,239.27 | 1,621,333,193.57 |
| Receipts of tax refund | 52,439,904.66 | 52,307,259.26 |
| Other cash receipts related to operating activities | 70,576,046.68 | 82,446,555.85 |
| Subtotal of cash inflows from operating activities | 1,685,625,190.61 | 1,756,087,008.68 |
| Cash payments for goods purchased and services received | 1,542,197,500.63 | 1,423,009,942.09 |
| Cash paid to and on behalf of employees | 215,665,834.99 | 199,303,567.32 |
| Cash payments for taxes and rates | 10,889,249.62 | 10,958,178.21 |
| Other cash payments related to operating activities | 86,102,146.54 | 62,126,529.37 |
| Subtotal of cash outflows from operating activities | 1,854,854,731.78 | 1,695,398,216.99 |
| Net cash flows from operating activities | -169,229,541.17 | 60,688,791.69 |
| II. Cash flows from investing activities: | ||
| Cash receipts from withdrawal of investments | 83,791,000.00 | |
| Cash receipts from investment income | 1,530,581,043.13 | 1,438,665,904.66 |
| Net cash receipts from the disposal of fixed assets, intangible assets and other long-term assets | ||
| Net cash receipts from the disposal of subsidiaries & other business units | ||
| Other cash receipts related to investing activities | 2,613,000,000.00 | 2,152,600,000.00 |
| Subtotal of cash inflows from investing activities | 4,227,372,043.13 | 3,591,265,904.66 |
| Cash payments for the acquisition of fixed assets, intangible assets and other long-term assets | 56,124,869.55 | 12,931,959.73 |
| Items | 2024 Semi-Annual | 2023 Semi-Annual |
| Cash payments for investments | 755,672,000.00 | 1,187,508,000.00 |
| Net cash payments for the acquisition of subsidiaries & other business units | ||
| Other cash payments related to investing activities | 1,720,830,000.00 | 3,352,754,775.00 |
| Subtotal of cash outflows from investing activities | 2,532,626,869.55 | 4,553,194,734.73 |
| Net cash flows from investing activities | 1,694,745,173.58 | -961,928,830.07 |
| III. Cash flows from financing activities: | ||
| Cash receipts from absorbing investments | ||
| Cash receipts from borrowings | 750,000,000.00 | 1,850,000,000.00 |
| Other cash receipts related to financing activities | ||
| Subtotal of cash inflows from financing activities | 750,000,000.00 | 1,850,000,000.00 |
| Cash payments for the repayment of borrowings | 676,000,000.00 | 1,603,000,000.00 |
| Cash payments for distribution of dividends or profits and for interest expenses | 1,465,505,652.48 | 1,619,589,051.11 |
| Other cash payments related to financing activities | 460,205.73 | 1,126,850.43 |
| Subtotal of cash outflows from financing activities | 2,141,965,858.21 | 3,223,715,901.54 |
| Net cash flows from financing activities | -1,391,965,858.21 | -1,373,715,901.54 |
| IV. Effect of foreign exchange rate changes on cash and cash equivalents | -70,342.71 | 969,709.78 |
| V. Net increase in cash and cash equivalents | 133,479,431.49 | -2,273,986,230.14 |
| Add: Opening balance of cash and cash equivalents | 2,903,317,341.85 | 4,054,348,356.27 |
| VI. Closing balance of cash and cash equivalents | 3,036,796,773.34 | 1,780,362,126.13 |
Legal representative: Hu Baifan Officer in charge of accounting: Shi Guanqun Head of accounting department: He Jiangyong
7. Consolidated statement of changes in equity
Current period cumulative
Unit: RMB Yuan
| Items | 2024 Semi-Annual | ||||||||||||||
| Equity attributable to parent company | Non-controlling interest | Total equity | |||||||||||||
| Share capital | Other equity instruments | Capital reserve | Less: Treasury shares | Other comprehensive income | Special reserve | Surplus reserve | General risk reserve | Undistributed profit | Others | Subtotal | |||||
| Preferred shares | Perpetual bonds | Others | |||||||||||||
| I. Balance at the end of prior year | 3,090,907,356.00 | 3,613,345,485.13 | 500,059,711.25 | 103,920,732.85 | 60,860,818.76 | 1,545,453,678.00 | 16,890,233,961.50 | 24,804,662,320.99 | 115,045,831.88 | 24,919,708,152.87 | |||||
| Add: Cumulative changes of accounting policies | |||||||||||||||
| Error correction of prior period | |||||||||||||||
| Others | |||||||||||||||
| II. Balance at the beginning of current year | 3,090,907,356.00 | 3,613,345,485.13 | 500,059,711.25 | 103,920,732.85 | 60,860,818.76 | 1,545,453,678.00 | 16,890,233,961.50 | 24,804,662,320.99 | 115,045,831.88 | 24,919,708,152.87 | |||||
| III. Current period increase (or less: decrease) | 2,144,278.96 | 30,166,768.34 | 821,321,886.96 | 853,632,934.26 | 9,680,943.21 | 863,313,877.47 | |||||||||
| (I) Total comprehensive income | 2,144,278.96 | 2,204,361,642.96 | 2,206,505,921.92 | 9,680,943.21 | 2,216,186,865.13 | ||||||||||
| (II) Capital contributed or withdrawn by owners | |||||||||||||||
| 1. Ordinary shares contributed by owners | |||||||||||||||
| 2. Capital contributed by holders of other equity instruments | |||||||||||||||
| 3. Amount of share-based payment included in equity | |||||||||||||||
| 4. Others | |||||||||||||||
| (III) Profit distribution | -1,383,039,756.00 | -1,383,039,756.00 | -1,383,039,756.00 | ||||||||||||
| 1. Appropriation of surplus reserve | |||||||||||||||
| 2. Appropriation of general risk reserve | |||||||||||||||
| 3. Appropriation of profit to owners | -1,383,039,756.00 | -1,383,039,756.00 | -1,383,039,756.00 | ||||||||||||
| 4. Others | |||||||||||||||
| Items | 2024 Semi-Annual | ||||||||||||||
| Equity attributable to parent company | Non-controlling interest | Total equity | |||||||||||||
| Share capital | Other equity instruments | Capital reserve | Less: Treasury shares | Other comprehensive income | Special reserve | Surplus reserve | General risk reserve | Undistributed profit | Others | Subtotal | |||||
| Preferred shares | Perpetual bonds | Others | |||||||||||||
| (IV) Internal carry-over within equity | |||||||||||||||
| 1. Transfer of capital reserve to capital | |||||||||||||||
| 2. Transfer of surplus reserve to capital | |||||||||||||||
| 3. Surplus reserve to cover losses | |||||||||||||||
| 4. Changes in defined benefit plan carried over to retained earnings | |||||||||||||||
| 5. Other comprehensive income carried over to retained earnings | |||||||||||||||
| 6. Others | |||||||||||||||
| (V) Special reserve | 30,166,768.34 | 30,166,768.34 | 30,166,768.34 | ||||||||||||
| 1. Appropriation of current period | 41,724,799.37 | 41,724,799.37 | 41,724,799.37 | ||||||||||||
| 2. Application of current period | -11,558,031.03 | -11,558,031.03 | -11,558,031.03 | ||||||||||||
| (VI) Others | |||||||||||||||
| IV. Balance at the end of current period | 3,090,907,356.00 | 3,613,345,485.13 | 500,059,711.25 | 106,065,011.81 | 91,027,587.10 | 1,545,453,678.00 | 17,711,555,848.46 | 25,658,295,255.25 | 124,726,775.09 | 25,783,022,030.34 | |||||
Preceding period comparative
Unit: RMB Yuan
| Items | 2023 Semi-Annual | ||||||||||||||
| Equity attributable to parent company | Non-controlling interest | Total equity | |||||||||||||
| Share capital | Other equity instruments | Capital reserve | Less: Treasury shares | Other comprehensive income | Special reserve | Surplus reserve | General risk reserve | Undistributed profit | Others | Subtotal | |||||
| Preferred shares | Perpetual bonds | Others | |||||||||||||
| I. Balance at the end of prior year | 3,090,907,356.00 | 3,613,097,510.81 | 500,059,711.25 | 76,577,564.17 | 26,196,894.55 | 1,444,413,940.89 | 15,823,725,913.44 | 23,574,859,468.61 | 87,289,766.85 | 23,662,149,235.46 | |||||
| Items | 2023 Semi-Annual | ||||||||||||||
| Equity attributable to parent company | Non-controlling interest | Total equity | |||||||||||||
| Share capital | Other equity instruments | Capital reserve | Less: Treasury shares | Other comprehensive income | Special reserve | Surplus reserve | General risk reserve | Undistributed profit | Others | Subtotal | |||||
| Preferred shares | Perpetual bonds | Others | |||||||||||||
| Add: Cumulative changes of accounting policies | 19,857.63 | 19,857.63 | 19,857.63 | ||||||||||||
| Error correction of prior period | |||||||||||||||
| Others | |||||||||||||||
| II. Balance at the beginning of current year | 3,090,907,356.00 | 3,613,097,510.81 | 500,059,711.25 | 76,577,564.17 | 26,196,894.55 | 1,444,413,940.89 | 15,823,745,771.07 | 23,574,879,326.24 | 87,289,766.85 | 23,662,169,093.09 | |||||
| III. Current period increase (or less: decrease) | 29,652,134.01 | 17,629,528.47 | -53,481,603.04 | -6,199,940.56 | 20,217,198.14 | 14,017,257.58 | |||||||||
| (I) Total comprehensive income | 29,652,134.01 | 1,483,229,236.96 | 1,512,881,370.97 | 20,217,198.14 | 1,533,098,569.11 | ||||||||||
| (II) Capital contributed or withdrawn by owners | |||||||||||||||
| 1. Ordinary shares contributed by owners | |||||||||||||||
| 2. Capital contributed by holders of other equity instruments | |||||||||||||||
| 3. Amount of share-based payment included in equity | |||||||||||||||
| 4. Others | |||||||||||||||
| (III) Profit distribution | -1,536,710,840.00 | -1,536,710,840.00 | -1,536,710,840.00 | ||||||||||||
| 1. Appropriation of surplus reserve | |||||||||||||||
| 2. Appropriation of | |||||||||||||||
| Items | 2023 Semi-Annual | ||||||||||||||
| Equity attributable to parent company | Non-controlling interest | Total equity | |||||||||||||
| Share capital | Other equity instruments | Capital reserve | Less: Treasury shares | Other comprehensive income | Special reserve | Surplus reserve | General risk reserve | Undistributed profit | Others | Subtotal | |||||
| Preferred shares | Perpetual bonds | Others | |||||||||||||
| general risk reserve | |||||||||||||||
| 3. Appropriation of profit to owners | -1,536,710,840.00 | -1,536,710,840.00 | -1,536,710,840.00 | ||||||||||||
| 4. Others | |||||||||||||||
| (IV) Internal carry-over within equity | |||||||||||||||
| 1. Transfer of capital reserve to capital | |||||||||||||||
| 2. Transfer of surplus reserve to capital | |||||||||||||||
| 3. Surplus reserve to cover losses | |||||||||||||||
| 4. Changes in defined benefit plan carried over to retained earnings | |||||||||||||||
| 5. Other comprehensive income carried over to retained earnings | |||||||||||||||
| 6. Others | |||||||||||||||
| (V) Special reserve | 17,629,528.47 | 17,629,528.47 | 17,629,528.47 | ||||||||||||
| 1. Appropriation of current period | 26,153,211.92 | 26,153,211.92 | 26,153,211.92 | ||||||||||||
| 2. Application of current period | -8,523,683.45 | -8,523,683.45 | -8,523,683.45 | ||||||||||||
| (VI) Others | |||||||||||||||
| IV. Balance at the end of current period | 3,090,907,356.00 | 3,613,097,510.81 | 500,059,711.25 | 106,229,698.18 | 43,826,423.02 | 1,444,413,940.89 | 15,770,264,168.03 | 23,568,679,385.68 | 107,506,964.99 | 23,676,186,350.67 | |||||
8. Parent company statements of changes in equity
Current period cumulative
Unit: RMB Yuan
| Items | 2024 Semi-Annual | |||||||||||
| Share capital | Other equity instruments | Capital reserve | Less: Treasury shares | Other comprehensive income | Special reserve | Surplus reserve | Undistributed profit | Others | Total equity | |||
| Preferred shares | Perpetual bonds | Others | ||||||||||
| I. Balance at the end of prior year | 3,090,907,356.00 | 3,353,675,803.74 | 500,059,711.25 | 506,954.43 | 10,583,344.97 | 1,545,453,678.00 | 5,137,599,917.63 | 12,638,667,343.52 | ||||
| Add: Cumulative changes of accounting policies | ||||||||||||
| Error correction of prior period | ||||||||||||
| Others | ||||||||||||
| II. Balance at the beginning of current year | 3,090,907,356.00 | 3,353,675,803.74 | 500,059,711.25 | 506,954.43 | 10,583,344.97 | 1,545,453,678.00 | 5,137,599,917.63 | 12,638,667,343.52 | ||||
| III. Current period increase (or less: decrease) | 4,426,769.78 | 203,280,156.84 | 207,706,926.62 | |||||||||
| (I) Total comprehensive income | 1,586,319,912.84 | 1,586,319,912.84 | ||||||||||
| (II) Capital contributed or withdrawn by owners | ||||||||||||
| 1. Ordinary shares contributed by owners | ||||||||||||
| 2. Capital contributed by holders of other equity instruments | ||||||||||||
| 3. Amount of share-based payment included in equity | ||||||||||||
| 4. Others | ||||||||||||
| (III) Profit distribution | -1,383,039,756.00 | -1,383,039,756.00 | ||||||||||
| 1. Appropriation of surplus reserve | ||||||||||||
| 2. Appropriation of profit to owners | -1,383,039,756.00 | -1,383,039,756.00 | ||||||||||
| 3. Others | ||||||||||||
| (IV) Internal carry-over within equity | ||||||||||||
| 1. Transfer of capital reserve to capital | ||||||||||||
| Items | 2024 Semi-Annual | |||||||||||
| Share capital | Other equity instruments | Capital reserve | Less: Treasury shares | Other comprehensive income | Special reserve | Surplus reserve | Undistributed profit | Others | Total equity | |||
| Preferred shares | Perpetual bonds | Others | ||||||||||
| 2. Transfer of surplus reserve to capital | ||||||||||||
| 3. Surplus reserve to cover losses | ||||||||||||
| 4. Changes in defined benefit plan carried over to retained earnings | ||||||||||||
| 5. Other comprehensive income carried over to retained earnings | ||||||||||||
| 6. Others | ||||||||||||
| (V) Special reserve | 4,426,769.78 | 4,426,769.78 | ||||||||||
| 1. Appropriation of current period | 5,513,474.04 | 5,513,474.04 | ||||||||||
| 2. Application of current period | -1,086,704.26 | -1,086,704.26 | ||||||||||
| (VI) Others | ||||||||||||
| IV. Balance at the end of current period | 3,090,907,356.00 | 3,353,675,803.74 | 500,059,711.25 | 506,954.43 | 15,010,114.75 | 1,545,453,678.00 | 5,340,880,074.47 | 12,846,374,270.14 | ||||
Preceding period comparative
Unit: RMB Yuan
| Items | 2023 Semi-Annual | |||||||||||
| Share capital | Other equity instruments | Capital reserve | Less: Treasury shares | Other comprehensive income | Special reserve | Surplus reserve | Undistributed profit | Others | Total equity | |||
| Preferred shares | Perpetual bonds | Others | ||||||||||
| I. Balance at the end of prior year | 3,090,907,356.00 | 3,353,427,829.42 | 500,059,711.25 | 506,954.43 | 1,444,413,940.89 | 5,489,904,970.92 | 12,879,101,340.41 | |||||
| Add: Cumulative changes of accounting policies | 19,857.63 | 19,857.63 | ||||||||||
| Error correction of prior period | ||||||||||||
| Others | ||||||||||||
| II. Balance at the beginning of current | 3,090,907,356.00 | 3,353,427,829.42 | 500,059,711.25 | 506,954.43 | 1,444,413,940.89 | 5,489,924,828.55 | 12,879,121,198.04 | |||||
| Items | 2023 Semi-Annual | |||||||||||
| Share capital | Other equity instruments | Capital reserve | Less: Treasury shares | Other comprehensive income | Special reserve | Surplus reserve | Undistributed profit | Others | Total equity | |||
| Preferred shares | Perpetual bonds | Others | ||||||||||
| year | ||||||||||||
| III. Current period increase (or less: decrease) | -154,698,676.36 | -154,698,676.36 | ||||||||||
| (I) Total comprehensive income | 1,382,012,163.64 | 1,382,012,163.64 | ||||||||||
| (II) Capital contributed or withdrawn by owners | ||||||||||||
| 1. Ordinary shares contributed by owners | ||||||||||||
| 2. Capital contributed by holders of other equity instruments | ||||||||||||
| 3. Amount of share-based payment included in equity | ||||||||||||
| 4. Others | ||||||||||||
| (III) Profit distribution | -1,536,710,840.00 | -1,536,710,840.00 | ||||||||||
| 1. Appropriation of surplus reserve | ||||||||||||
| 2. Appropriation of profit to owners | -1,536,710,840.00 | -1,536,710,840.00 | ||||||||||
| 3. Others | ||||||||||||
| (IV) Internal carry-over within equity | ||||||||||||
| 1. Transfer of capital reserve to capital | ||||||||||||
| 2. Transfer of surplus reserve to capital | ||||||||||||
| 3. Surplus reserve to cover losses | ||||||||||||
| 4. Changes in defined benefit plan carried over to retained earnings | ||||||||||||
| 5. Other comprehensive income carried over to retained earnings | ||||||||||||
| Items | 2023 Semi-Annual | |||||||||||
| Share capital | Other equity instruments | Capital reserve | Less: Treasury shares | Other comprehensive income | Special reserve | Surplus reserve | Undistributed profit | Others | Total equity | |||
| Preferred shares | Perpetual bonds | Others | ||||||||||
| 6. Others | ||||||||||||
| (V) Special reserve | ||||||||||||
| 1. Appropriation of current period | ||||||||||||
| 2. Application of current period | ||||||||||||
| (VI) Others | ||||||||||||
| IV. Balance at the end of current period | 3,090,907,356.00 | 3,353,427,829.42 | 500,059,711.25 | 506,954.43 | 1,444,413,940.89 | 5,335,226,152.19 | 12,724,422,521.68 | |||||
III. Company profileZhejiang NHU Co., Ltd. (the “Company”) was jointly established by Xinchang County Synthetic Chemical Plant, renamed asNHU Holding Group Co., Ltd. on November 17, 2009) and 9 natural persons including Zhang Pingyi, Yuan Yizhong, Shi Cheng,Hu Baishan, Shi Guanqun, Wang Xuewen, Shi Sanfu, Cui Xinrong, and Wang Xulin under the document of approval numberedZhe Zheng Wei [1999] 9 issued by the former Securities Commission of the People’s Government of Zhejiang Province.Headquartered in Shaoxing City, Zhejiang Province, the Company was registered at Zhejiang Administration for Industry andCommerce on April 5, 1999. Currently, the Company holds a business license with unified social credit code of91330000712560575G, with registered capital of 3,090,907,356.00 yuan, total share of 3,090,907,356 shares (each with par valueof one yuan), of which, 36,409,752 shares are restricted outstanding shares, and 3,054,497,604 shares are unrestricted outstandingshares. The Company’s shares were listed on Shenzhen Stock Exchange on June 25, 2004.The Company belongs to pharmaceutical manufacturing industry and is mainly engaged in manufacturing and sales of nutrition,Aroma Chemicals, and new polymer materials. The Company’s main products are nutrition, Aroma Chemicals, and new polymermaterials.These financial statements were approved for external reporting by the Company at the seventh meeting of the Ninth Board ofDirectors on August 21, 2024.IV. Preparation basis of the financial statements
1. Preparation basis
The financial statements have been prepared on the basis of going concern.
2. The ability to continue as a going concern
The Company has no events or conditions that may cast significant doubts upon the Company’s ability to continue as a going concernwithin the 12 months after the balance sheet date.
V. Significant accounting policies and estimatesNote to specific accounting policies and estimates: The Company has set up accounting policies and estimates on transactions orevents such as impairment of financial instruments, depreciation of fixed assets, depreciation of right-of-use assets, amortization ofintangible assets, and revenue recognition, etc. based on the Company’s actual production and operation features.
1. Statement of compliance
The financial statements have been prepared in accordance with the requirements of China Accounting Standards for BusinessEnterprises (CASBEs), and present truly and completely the financial position, results of operations and cash flows of the Company.
2. Accounting period
The accounting year of the Company runs from January 1 to December 31 under the Gregorian calendar.
3. Operating cycle
Except for the real estate industry, the Company has a relatively short operating cycle for its business, an asset or a liability is
classified as current if it is expected to be realized or due within 12 months. The operating cycle for real estate industry starts fromthe development of property and ends at sales, which normally extends over 12 months and is subject to specific projects, therefore,an asset or a liability is classified as current if it is expected to be realized or due within such operating cycle.
4. Functional currency
The functional currency of the Company and its domestic subsidiaries is Renminbi (RMB) Yuan, while the functional currency ofsubsidiaries engaged in overseas operations including NHU (Hong Kong) Trading Co., Ltd., NHU Europe GmbH and NHUSingapore PTE. LTD. , NHU/CHR. OLESEN LATIN AMERICA A/S is the currency of the primary economic environment in whichthey operate.
5. Methodology for determining materiality criteria and basis for selection
√applicable □Not applicable
| Items | Importance Criteria |
| Significant write-offs of receivables | 0.5% of total assets |
| Significant prepayments aged over 1 year | 0.5% of total assets |
| Significant construction projects in progress | 0.5% of total assets |
| Significant accounts payable aged over 1 year | 0.5% of total assets |
| Significant other accounts payable aged over 1 year | 0.5% of total assets |
| Significant contractual liabilities older than 1 year | 0.5% of total assets |
| Significant cash flows from investing activities | 10.00% of total assets |
| Significant offshore operating entities | The Company identifies overseas operating entities whose total assets/total revenues/total profits exceed 15% of the Group's total assets/total revenues/total profits as significant overseas operating entities |
| Significant capitalized R&D projects, outsourced R&D projects | 0.5% of total assets |
| Significant subsidiaries, non-wholly owned subsidiaries | The Company identifies subsidiaries with total assets/total revenues/total profits exceeding 15% of the Group's total assets/total revenues/total profits as important subsidiaries, important non-wholly owned subsidiaries |
| Significant Joint Ventures, Associates, Co-Operations | The company identifies joint ventures, associates, and joint operations whose total assets/total revenues/total profits exceed 15% of the group's total assets/total revenues/total profits as significant joint ventures, associates, and joint operations |
6、Accounting treatments of business combination under and not under common control
1. Accounting treatment of business combination under common control
Assets and liabilities arising from business combination are measured at carrying amount of the combined party included in theconsolidated financial statements of the ultimate controlling party at the combination date. Difference between carrying amount ofthe equity of the combined party included in the consolidated financial statements of the ultimate controlling party and that of thecombination consideration or total par value of shares issued is adjusted to capital reserve, if the balance of capital reserve isinsufficient to offset, any excess is adjusted to retained earnings.
2. Accounting treatment of business combination not under common control
When combination cost is in excess of the fair value of identifiable net assets obtained from the acquiree at the acquisition date, theexcess is recognized as goodwill; otherwise, the fair value of identifiable assets, liabilities and contingent liabilities, and themeasurement of the combination cost are reviewed, then the difference is recognized in profit or loss.
7. Criteria for judging control and preparation of consolidated financial statements
1. Controlled judgment
A parent company is recognized as controlling if it has power over the investee, enjoys variable returns through participation in theinvestee's relevant activities, and has the ability to use its power over the investee to affect the amount of its variable returns.
2. Compilation method of consolidated financial statements
The parent company brings all its controlled subsidiaries into the consolidation scope. The consolidated financial statements arecompiled by the parent company according to “CASBE 33 – Consolidated Financial Statements”, based on relevant informationand the financial statements of the parent company and its subsidiaries.
8. Classification of joint venture arrangements and accounting treatment of joint operations
1. Joint arrangements are categorized as joint operations and joint ventures.
2. When the company is a joint venture partner in a joint operation, the following items related to the share of interest in the jointoperation are recognized:
(1) Recognize assets held separately and assets held jointly in proportion to the share held;
(2) Recognize liabilities assumed individually, and liabilities assumed jointly in proportion to the share held;
(3) Recognize revenues from the sale of the company's share of joint operating outputs;
(4) Recognize income from joint operations arising from the sale of assets based on the company's share of ownership;
(5) Recognition of expenses incurred individually, as well as expenses incurred by the joint operation based on the company'sshare of ownership.
9. Recognition criteria of cash and cash equivalents
Cash as presented in cash flow statement refers to cash on hand and deposit on demand for payment. Cash equivalents refer toshort-term, highly liquid investments that can be readily converted to cash and that are subject to an insignificant risk of changes invalue.
10. Foreign currency translation
1. Translation of transactions denominated in foreign currency
Transactions denominated in foreign currency are translated into RMB yuan at the approximate exchange rate similar to the spotexchange rate at the transaction date at initial recognition. At the balance sheet date, monetary items denominated in foreigncurrency are translated at the spot exchange rate at the balance sheet date with difference, except for those arising from theprincipal and interest of exclusive borrowings eligible for capitalization, included in profit or loss; non-cash items carried athistorical costs are translated at the approximate exchange rate similar to the spot exchange rate at the transaction date, with the
RMB amounts unchanged; non-cash items carried at fair value in foreign currency are translated at the spot exchange rate at thedate when the fair value was determined, with difference included in profit or loss or other comprehensive income.
2. Translation of financial statements measured in foreign currency
The assets and liabilities in the balance sheet are translated into RMB at the spot rate at the balance sheet date; the equity items,other than undistributed profit, are translated at the spot rate at the transaction date; the revenues and expenses in the incomestatement are translated into RMB at the approximate exchange rate similar to the spot exchange rate at the transaction date. Thedifference arising from the aforementioned foreign currency translation is included in other comprehensive income.
11. Financial instruments
1. Classification of financial assets and financial liabilities
Financial assets are classified into the following three categories when initially recognized: (1) financial assets at amortized cost;
(2) financial assets at fair value through other comprehensive income; (3) financial assets at fair value through profit or loss.Financial liabilities are classified into the following four categories when initially recognized: (1) financial liabilities at fair valuethrough profit or loss; (2) financial liabilities that arise when a transfer of a financial asset does not qualify for derecognition orwhen the continuing involvement approach applies; (3) financial guarantee contracts not fall within the above categories (1) and
(2), and commitments to provide a loan at a below-market interest rate, which do not fall within the above category (1); (4)financial liabilities at amortized cost.
2. Recognition criteria, measurement method and derecognition condition of financial assets and financial liabilities
(1) Recognition criteria and measurement method of financial assets and financial liabilities
When the Company becomes a party to a financial instrument, it is recognized as a financial asset or financial liability. Thefinancial assets and financial liabilities initially recognized by the Company are measured at fair value; for the financial assets andliabilities at fair value through profit or loss, the transaction expenses thereof are directly included in profit or loss; for othercategories of financial assets and financial liabilities, the transaction expenses thereof are included into the initially recognizedamount. However, at initial recognition, for accounts receivable that do not contain a significant financing component or incircumstances where the Company does not consider the financing components in contracts within one year, the Companymeasures the transaction price in accordance with “CASBE 14 – Revenues”.
(2) Subsequent measurement of financial assets
1) Financial assets measured at amortized cost
The Company measures its financial assets at the amortized costs using effective interest method. Gains or losses on financialassets that are measured at amortized cost and are not part of hedging relationships shall be included into profit or loss when thefinancial assets are derecognized, reclassified, amortized using effective interest method or recognized with impairment loss.
2) Debt instrument investments at fair value through other comprehensive income
The Company measures its debt instrument investments at fair value. Interests, impairment gains or losses, and gains and losses onforeign exchange that calculated using effective interest method shall be included into profit or loss, while other gains or losses are
included into other comprehensive income. Accumulated gains or losses that initially recognized as other comprehensive incomeshould be transferred out into profit or loss when the financial assets are derecognized.
3) Equity instrument investments at fair value through other comprehensive income
The Company measures its equity instrument investments at fair value. Dividends obtained (other than those as part of investmentcost recovery) shall be included into profit or loss, while other gains or losses are included into other comprehensive income.Accumulated gains or losses that initially recognized as other comprehensive income should be transferred out into retainedearnings when the financial assets are derecognized.
4) Financial assets at fair value through profit or loss
The Company measures its financial assets at fair value. Gains or losses arising from changes in fair value (including interests anddividends) shall be included into profit or loss, except for financial assets that are part of hedging relationships.
(3) Subsequent measurement of financial liabilities
1) Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include held-for-trading financial liabilities (including derivatives that areliabilities) and financial liabilities designated as at fair value through profit or loss. The Company measures such kind of liabilitiesat fair value. The amount of changes in the fair value of the financial liabilities that are attributable to changes in the Company’sown credit risk shall be included into other comprehensive income, unless such treatment would create or enlarge accountingmismatches in profit or loss. Other gains or losses on those financial liabilities (including interests, changes in fair value that areattributable to reasons other than changes in the Company’s own credit risk) shall be included into profit or loss, except forfinancial liabilities that are part of hedging relationships. Accumulated gains or losses that originally recognized as othercomprehensive income should be transferred out into retained earnings when the financial liabilities are derecognized.
2) Financial liabilities that arise when a transfer of a financial asset does not qualify for derecognition or when the continuinginvolvement approach appliesThe Company measures its financial liabilities in accordance with “CASBE 23 – Transfer of Financial Assets”.
3) Financial guarantee contracts not fall within the above categories 1) and 2), and commitments to provide a loan at a below-market interest rate, which do not fall within the above category 1)The Company measures its financial liabilities at the higher of: a. the amount of loss allowances in accordance with impairmentrequirements of financial instruments; b. the amount initially recognized less the amount of accumulated amortization recognizedin accordance with “CASBE 14 – Revenues”.
4) Financial liabilities at amortized cost
The Company measures its financial liabilities at amortized cost using effective interest method. Gains or losses on financialliabilities that are measured at amortized cost and are not part of hedging relationships shall be included into profit or loss whenthe financial liabilities are derecognized and amortized using effective interest method.
(4) Derecognition of financial assets and financial liabilities
1) Financial assets are derecognized when:
a. the contractual rights to the cash flows from the financial assets expire; orb. the financial assets have been transferred and the transfer qualifies for derecognition in accordance with “CASBE 23 – Transferof Financial Assets”.
2) Only when the underlying present obligations of a financial liability are relieved totally or partly may the financial liability bederecognized accordingly.
3. Recognition criteria and measurement method of financial assets transfer
Where the Company has transferred substantially all of the risks and rewards related to the ownership of the financial asset, itderecognizes the financial asset, and any right or liability arising from such transfer is recognized independently as an asset or aliability. If it retained substantially all of the risks and rewards related to the ownership of the financial asset, it continuesrecognizing the financial asset. Where the Company does not transfer or retain substantially all of the risks and rewards related tothe ownership of a financial asset, it is dealt with according to the circumstances as follows respectively: (1) if the Company doesnot retain its control over the financial asset, it derecognizes the financial asset, and any right or liability arising from such transferis recognized independently as an asset or a liability; (2) if the Company retains its control over the financial asset, according tothe extent of its continuing involvement in the transferred financial asset, it recognizes the related financial asset and recognizesthe relevant liability accordingly.If the transfer of an entire financial asset satisfies the conditions for derecognition, the difference between the amounts of thefollowing two items is included in profit or loss: (1) the carrying amount of the transferred financial asset as of the date ofderecognition; (2) the sum of consideration received from the transfer of the financial asset, and the accumulative amount of thechanges of the fair value originally included in other comprehensive income proportionate to the transferred financial asset(financial assets transferred refer to debt instrument investments at fair value through other comprehensive income). If the transferof financial asset partially satisfies the conditions to derecognition, the entire carrying amount of the transferred financial asset is,between the portion which is derecognized and the portion which is not, apportioned according to their respective relative fairvalue, and the difference between the amounts of the following two items is included into profit or loss: (1) the carrying amount ofthe portion which is derecognized; (2) the sum of consideration of the portion which is derecognized, and the portion of theaccumulative amount of the changes in the fair value originally included in other comprehensive income which is corresponding tothe portion which is derecognized (financial assets transferred refer to debt instrument investments at fair value through othercomprehensive income).
4. Fair value determination method of financial assets and liabilities
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data and information areavailable to measure fair value. The inputs to valuation techniques used to measure fair value are arranged in the followinghierarchy and used accordingly:
(1) Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Company can access atthe measurement date.
(2) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, eitherdirectly or indirectly. Level 2 inputs include: quoted prices for similar assets or liabilities in active markets; quoted prices foridentical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for theasset or liability, for example, interest rates and yield curves observable at commonly quoted intervals; market-corroborated inputs;
(3) Level 3 inputs are unobservable inputs for the asset or liability. Level 3 inputs include interest rate that is not observable andcannot be corroborated by observable market data at commonly quoted intervals, historical volatility, future cash flows to be paidto fulfill the disposal obligation assumed in business combination, financial forecast developed using the Company’s own data, etc.
5. Impairment of financial instruments
(1) Measurement and accounting treatment
The Company, on the basis of expected credit loss, recognizes loss allowances of financial assets at amortized cost, debtinstrument investments at fair value through other comprehensive income, contract assets, leases receivable, loan commitmentsother than financial liabilities at fair value through profit or loss, financial guarantee contracts not belong to financial liabilities atfair value through profit or loss or financial liabilities that arise when a transfer of a financial asset does not qualify forderecognition or when the continuing involvement approach applies.Expected credit losses refer to the weighted average of credit losses with the respective risks of a default occurring as the weights.Credit loss refers to the difference between all contractual cash flows that are due to the Company in accordance with the contractand all the cash flows that the Company expects to receive (i.e. all cash shortfalls), discounted at the original effective interest rate.Among which, purchased or originated credit-impaired financial assets are discounted at the credit-adjusted effective interest rate.At the balance sheet date, the Company shall only recognize the cumulative changes in the lifetime expected credit losses sinceinitial recognition as a loss allowance for purchased or originated credit-impaired financial assets.For leases receivable, and accounts receivable and contract assets resulting from transactions regulated in “CASBE 14 –Revenues”, the Company chooses simplified approach to measure the loss allowance at an amount equal to lifetime expectedcredit losses.For financial assets other than the above, on each balance sheet date, the Company shall assess whether the credit risk on thefinancial instrument has increased significantly since initial recognition. The Company shall measure the loss allowance for thefinancial instrument at an amount equal to the lifetime expected credit losses if the credit risk on that financial instrument hasincreased significantly since initial recognition; otherwise, the Company shall measure the loss allowance for that financialinstrument at an amount equal to 12-month expected credit loss.Considering reasonable and supportable forward-looking information, the Company compares the risk of a default occurring onthe financial instrument as at the balance sheet date with the risk of a default occurring on the financial instrument as at the date ofinitial recognition, so as to assess whether the credit risk on the financial instrument has increased significantly since initialrecognition.
The Company may assume that the credit risk on a financial instrument has not increased significantly since initial recognition ifthe financial instrument is determined to have relatively low credit risk at the balance sheet date.The Company shall estimate expected credit risk and measure expected credit losses on an individual or a collective basis. Whenthe Company adopts the collective basis, financial instruments are grouped with similar credit risk features.The Company shall remeasure expected credit loss on each balance sheet date, and increased or reversed amounts of lossallowance arising therefrom shall be included into profit or loss as impairment losses or gains. For a financial asset measured atamortized cost, the loss allowance reduces the carrying amount of such financial asset presented in the balance sheet; for a debtinvestment measured at fair value through other comprehensive income, the loss allowance shall be recognized in othercomprehensive income and shall not reduce the carrying amount of such financial asset.
6. Offsetting of financial assets and financial liabilities
Financial assets and financial liabilities are presented separately in the balance sheet and are not offset against each other.However, the company presents them in the balance sheet at the net amount after offsetting each other if the following conditionsare simultaneously met: (1) the company has a legal right to offset the recognized amount and such legal right is currentlyenforceable; (2) the company plans to settle the net amount, or to realize the financial asset and settle the financial liability at thesame time.For transfers of financial assets that do not meet the conditions for derecognition, the company does not offset the transferredfinancial assets and related liabilities.
12．Criteria for recognizing and providing for expected credit losses on receivables
1. Receivables with expected credit losses based on a combination of credit risk characteristics
| Portfolio Type | Basis for determining the portfolio | Methodology for measuring expected credit losses |
| Bankers' acceptances receivable | Type of notes | Expected credit losses are calculated by reference to historical credit loss experience, taking into account current conditions and projections of future economic conditions, through default exposures and expected credit loss rates over the entire duration |
| Commercial acceptances receivable | ||
| Accounts receivable – Portfolio grouped with ages | Age of accounts | Prepare a table of accounts receivable aging versus expected credit loss rates to calculate expected credit losses, taking into account historical credit loss experience, current conditions and projections of future economic conditions |
| Other receivables - export tax refund receivable portfolio | Nature of receivables | Expected credit losses are calculated by reference to historical credit loss experience, taking into account current conditions as well as projections of future economic conditions, through default exposures and expected credit loss rates within the next 12 months or over the entire life span |
| Other receivables - VAT refund receivable portfolio | ||
| Other receivables - land bond receivable portfolio | ||
| Other receivables - portfolio of security deposits receivable from customs and tax authorities | ||
| Other receivables - ageing portfolio | Age of accounts | Calculate expected credit losses by reference to historical credit loss experience and by preparing a table of the ageing of other receivables against the expected credit loss rate, taking into account current conditions and projections of future economic conditions |
2. Accounts receivable – comparison table of ages and lifetime expected credit loss rate of portfolio grouped with ages
| Ages | Accounts Receivable Expected credit loss ratio (%) | Other receivables Expected credit loss ratio (%) |
| Within 1 year (inclusive, the same hereinafter) | 5.00 | 5.00 |
| 1-2 years | 20.00 | 20.00 |
| 2-3 years | 80.00 | 80.00 |
| Over 3 years | 100.00 | 100.00 |
The ageing of accounts receivable/other receivables is calculated from the month in which the amounts are actually incurred.
3. Criteria for identifying receivables for which expected credit losses are provided on an individual basisFor receivables and contract assets with credit risk significantly different from that of the portfolio, the Company accruesexpected credit losses on an individual basis.13．Inventories
1. Classification of inventories
Inventories include finished goods or goods held for sale in the ordinary course of business, work in process in the process ofproduction, materials or supplies, etc. to be consumed in the production process or in the rendering of services.
2. Accounting method for dispatching inventories:
(1) Inventories other than development products are issued using the month-end lump-sum weighted-average method.
(2) When a project is developed, the land used for development is included in the development cost of the project by calculatingthe apportionment based on the floor area of the development products.
(3) Issuance of similar development products is accounted for by the average floor area method.
(4) If the public ancillary facilities are completed earlier than the relevant development products, after the public ancillary facilitiesare completed and finalized, they are allocated to the development costs of the relevant development projects according to thebudgeted costs of the relevant development projects; if the public ancillary facilities are completed later than the relevantdevelopment products, the public ancillary facilities fees are first withheld from the relevant development products, and thenadjusted according to the difference between the actual number of fees incurred and the number of fees withdrawn after thecompletion and finalization of the public ancillary facilities. If the public facilities are later than the completion of the relevantdevelopment products, the public facilities fees will be withheld by the relevant development products first, and the differencebetween the actual amount incurred and the amount withheld will be adjusted according to the final account after the completionof the public facilities.
3. Inventory system
Perpetual inventory method is adopted.
4. Amortization method of low-value consumables and packages
(1) Low-value consumables
Low-value consumables are amortized with one-off method.
(2) Packages
Packages are amortized with one-off method.
5. Criteria for recognizing and providing for provision for decline in value of inventories
At the balance sheet date, inventories are measured at the lower of cost or net realizable value, and provision for decline invalue of inventories is made for the difference between cost and net realizable value. The net realizable value of inventories useddirectly for sale is determined in the normal course of production and operation by the estimated selling price of the inventoriesless estimated selling expenses and related taxes; the net realizable value of inventories requiring processing is determined in thenormal course of production and operation by the estimated selling price of the finished goods produced less estimated costs to beincurred up to the time of completion, estimated selling expenses and related taxes; At the balance sheet date, if there is a contractprice agreed for one part of the same inventory and no contract price exists for the other part, the net realizable value is determinedseparately and compared with its corresponding cost, and the amount of provision or reversal of allowance for decline in value ofinventories is determined separately.14 .Long-term equity investments
1. Judgment of joint control and significant influence
Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevantactivities require the unanimous consent of the parties sharing control. Significant influence is the power to participate in thefinancial and operating policy decisions of the investee but is not control or joint control of these policies.
2. Determination of investment cost
(1) For business combination under common control, if the consideration of the combining party is that it makes payment in cash,transfers non-cash assets, assumes its liabilities or issues equity securities, on the date of combination, it regards the share of thecarrying amount of the equity of the combined party included in the consolidated financial statements of the ultimate controllingparty as the initial cost of the investment. The difference between the initial cost of the long-term equity investments and thecarrying amount of the combination consideration paid or the par value of shares issued offsets capital reserve; if the balance ofcapital reserve is insufficient to offset, any excess is adjusted to retained earnings.When long-term equity investments are obtained through business combination under common control achieved in stages, theCompany determines whether it is a “bundled transaction”. If it is a “bundled transaction”, stages as a whole are considered as onetransaction in accounting treatment. If it is not a “bundled transaction”, on the date of combination, investment cost is initiallyrecognized at the share of the carrying amount of net assets of the combined party included the consolidated financial statementsof the ultimate controlling party. The difference between the initial investment cost of long-term equity investments at theacquisition date and the carrying amount of the previously held long-term equity investments plus the carrying amount of theconsideration paid for the newly acquired equity is adjusted to capital reserve; if the balance of capital reserve is insufficient tooffset, any excess is adjusted to retained earnings.
(2) For business combination not under common control, investment cost is initially recognized at the acquisition-date fair value ofconsiderations paid.When long-term equity investments are obtained through business combination not under common control achieved in stages, theCompany determined whether they are stand-alone financial statements or consolidated financial statements in accountingtreatment:
1) In the case of stand-alone financial statements, investment cost is initially recognized at the carrying amount of the previouslyheld long-term equity investments plus the carrying amount of the consideration paid for the newly acquired equity.
2) In the case of consolidated financial statements, the Company determines whether it is a “bundled transaction”. If it is a“bundled transaction”, stages as a whole are considered as one transaction in accounting treatment. If it is not a “bundledtransaction”, the carrying amount of the acquirer’s previously held equity interest in the acquiree is remeasured at the acquisition-date fair value, and the difference between the fair value and the carrying amount is recognized in investment income; when theacquirer’s previously held equity interest in the acquiree involves other comprehensive income under equity method, the relatedother comprehensive income is reclassified as income for the acquisition period, excluding other comprehensive income arisingfrom changes in net liabilities or assets from remeasurement of defined benefit plan of the acquiree.
(3) Long-term equity investments obtained through ways other than business combination: the initial cost of a long-term equityinvestment obtained by making payment in cash is the purchase cost which is actually paid; that obtained on the basis of issuingequity securities is the fair value of the equity securities issued; that obtained through debt restructuring is determined according to“CASBE 12 – Debt Restructuring”; and that obtained through non-cash assets exchange is determined according to “CASBE 7 –Non-cash Assets Exchange”
3. Subsequent measurement and recognition method of profit or loss
For long-term equity investments with control relationship, it is accounted for with cost method; for long-term equity investmentswith joint control or significant influence relationship, it is accounted for with equity method.
4. Disposal of a subsidiary in stages resulting in the Company’s loss of control
(1) Principles for determining whether or not a transaction is a "package deal"
In the case of a step-by-step disposal of equity investments in subsidiaries through multiple transactions until loss of control, theCompany determines whether a step-by-step transaction is a "package deal" by taking into account the terms and conditions of thetransaction agreement for each step of the step-by-step transaction, the respective disposal consideration, the target of the disposal,the method of disposal, and the point of time of the disposal, among other information. If the terms, conditions and economicimpacts of each transaction meet one or more of the following conditions, it is generally recognized that multiple transactions are"package deals":
1) The transactions are entered into at the same time or in consideration of the effects of each other;
2) The transactions as a whole achieve a complete business result;
3) the occurrence of one transaction is dependent on the occurrence of at least one other transaction;
4) a transaction is uneconomic when viewed in isolation, but is economic when considered in conjunction with other transactions.
(2) Accounting treatment for transactions that are not "package deals"
1) Individual financial statements
For equity interests disposed of, the difference between the book value and the actual acquisition price is recognized in profit orloss for the current period. For the remaining equity interest, if it still has significant influence over the investee unit or exercisesjoint control with other parties, it is transferred to the equity method of accounting; if it can no longer exercise control, jointcontrol or significant influence over the investee unit, it is accounted for in accordance with the relevant provisions of "AccountingStandard for Business Enterprises (ASBE) No. 22 - Recognition and Measurement of Financial Instruments".
2) Consolidated financial statements
Prior to the loss of control, the difference between the disposal price and the disposal long-term equity investment's correspondingshare of the subsidiary's net assets calculated on a continuous basis from the date of purchase or the date of consolidation isadjusted to capital surplus (capital premium), and if capital premium is not sufficient to be eliminated, it is eliminated to retainedearnings.Upon loss of control over Atomics, the remaining equity interest is remeasured at its fair value at the date of loss of control. Thedifference between the sum of the consideration obtained from the disposal of the equity interest and the fair value of theremaining equity interest, less the share of the original subsidiary's net assets continuously measured from the date of purchase orthe date of consolidation based on the original shareholding ratio, is recognized as investment income in the period in whichcontrol is lost, and goodwill is also eliminated. Other comprehensive income, such as other comprehensive income related toequity investments in the original subsidiaries, should be transferred to investment income in the current period when control islost.。
(3) Accounting treatment of "package transactions
1) Individual financial statements
Each transaction is accounted for as a disposal of a subsidiary and loss of control. However, the difference between the disposalprice and the carrying value of the long-term equity investment corresponding to the disposal of the investment in each case beforethe loss of control is recognized as other comprehensive income in the individual financial statements and transferred to profit orloss in the period of the loss of control when the loss of control occurs.
2) Consolidated financial statements
Each transaction is accounted for as a disposal of a subsidiary and loss of control. However, the difference between the disposalprice and the share of the net assets of the subsidiary corresponding to the disposal of the investment in each case before the loss ofcontrol is recognized as other comprehensive income in the consolidated financial statements and transferred to profit or loss in theperiod of loss of control when the control is lost.
15. Fixed assets
(1) Recognition principles
Fixed assets are tangible assets held for use in the production of goods or rendering of services, for rental to others, or foradministrative purposes, and expected to be used during more than one accounting year. Fixed assets are recognized if, and only if, itis probable that future economic benefits associated with the assets will flow to the Company and the cost of the assets can bemeasured reliably.
(2) Depreciation method
| Categories | Depreciation method | Useful life (years) | Residual value proportion (%) | Annual depreciation rate (%) |
| Buildings and structures | Straight-line method | 7-70 | 5 | 13.57-1.36 |
| General equipment | Straight-line method | 5-10 | 5 | 19.00-9.50 |
| Special equipment | Straight-line method | 5-15 | 5 | 19.00-6.33 |
| Transport facilities | Straight-line method | 5-7 | 5 | 19.00-13.57 |
16. Construction in progress
1. Construction in progress is recognized if, and only if, it is probable that future economic benefits associated with the item willflow to the Company, and the cost of the item can be measured reliably. Construction in progress is measured at the actual costincurred to reach its designed usable conditions.
2. Construction in progress is transferred into fixed assets at its actual cost when it reaches the designed usable conditions. Whenthe auditing of the construction in progress was not finished while reaching the designed usable conditions, it is transferred tofixed assets using estimated value first, and then adjusted accordingly when the actual cost is settled, but the accumulateddepreciation is not to be adjusted retrospectively.
| Categories | Standards and timing for transferring construction in progress to fixed assets |
| Buildings and structures | Construction works reach the state of intended use from the date of reaching the state of intended use |
| General equipment | After installation and commissioning to meet the design requirements or contractual standards |
| Special equipment | After installation and commissioning to meet the design requirements or contractual standards |
17、Borrowing costs
1. Recognition principle of borrowing costs capitalization
Where the borrowing costs incurred to the Company can be directly attributable to the acquisition and construction or productionof assets eligible for capitalization, it is capitalized and included in the costs of relevant assets; other borrowing costs arerecognized as expenses on the basis of the actual amount incurred, and are included in profit or loss.
2. Borrowing costs capitalization period
(1) The borrowing costs are not capitalized unless the following requirements are all met: 1) the asset disbursements have alreadyincurred; 2) the borrowing costs have already incurred; and 3) the acquisition and construction or production activities which arenecessary to prepare the asset for its intended use or sale have already started.
(2) Suspension of capitalization: where the acquisition and construction or production of a qualified asset is interrupted abnormallyand the interruption period lasts for more than 3 months, the capitalization of the borrowing costs is suspended; the borrowingcosts incurred during such period are recognized as expenses, and are included in profit or loss, till the acquisition and constructionor production of the asset restarts.
(3) Ceasing of capitalization: when the qualified asset under acquisition and construction or production is ready for the intendeduse or sale, the capitalization of the borrowing costs is ceased.
3. Capitalization rate and capitalized amount of borrowing costs
For borrowings exclusively for the acquisition and construction or production of assets eligible for capitalization, the to-be-capitalized amount of interests is determined in light of the actual interest expenses incurred (including amortization of premiumor discount based on effective interest method) of the special borrowings in the current period less the interest income on theunused borrowings as a deposit in the bank or as a temporary investment; where a general borrowing is used for the acquisitionand construction or production of assets eligible for capitalization, the Company calculates and determines the to-be-capitalized
amount of interests on the general borrowing by multiplying the weighted average asset disbursement of the part of theaccumulative asset disbursements less the general borrowing by the capitalization rate of the general borrowing used.
18. Intangible assets
(1) Measurement method, useful lives and impairment test
1. Intangible assets include land use right, patent right, non-patented technology, etc. The initial measurement of intangible assets isbased on its cost.
2. For intangible assets with finite useful lives, their amortization amounts are amortized within their useful lives systematically andreasonably, if it is unable to determine the expected realization pattern reliably, intangible assets are amortized by the straight-linemethod with details as follows:
| Items | Useful life and the basis for its determination | Amortization method |
| Land use right | 50,70,(Based on the number of years contained in the warrants) | linear method |
| Software | 10,(Based on projected years of benefit) | linear method |
| Patent right | 10, (Based on projected years of benefit) | linear method |
| Non-patented technology | 15, (Based on projected years of benefit) | linear method |
(2) Accounting policies on internal R&D expenditures
(1) Personnel labor costs
Personnel labor costs include salaries and wages, basic pension insurance premiums, basic medical insurance premiums,unemployment insurance premiums, work-related injury insurance premiums, maternity insurance premiums and housing fund ofthe Company's research and development personnel, as well as labor costs of external research and development personnel.Where research and development personnel serve on multiple research and development projects at the same time, the recognitionof labor costs is based on the records of hours worked by the research and development personnel of each research anddevelopment project provided by the management of the Company, which are allocated proportionately among the differentresearch and development projects.Where personnel directly engaged in research and development activities and external research and development personnel aresimultaneously engaged in non-research and development activities, the Company allocates the personnel labor costs actuallyincurred by the research and development personnel between research and development expenses and production and operatingexpenses based on the records of their working hours in different positions, in accordance with the proportion of their actualworking hours and other reasonable methods.
(2) Direct input costs
Direct input costs refer to the relevant expenditures actually incurred by the Company for the implementation of research anddevelopment activities. It includes: 1) directly consumed materials, fuel and power costs; 2) the development and manufacturingcosts of molds and process equipment used for intermediate tests and product trial production, the purchase costs of samples,prototypes and general testing means that do not constitute fixed assets, and the inspection costs of trial products; and 3) the costs
of operating and maintaining, adjusting, inspecting, testing and repairing instruments and equipment used for research anddevelopment activities.
(3) Depreciation expense and long-term amortization expense
Depreciation expense refers to the depreciation of instruments, equipment and buildings in use used in research and developmentactivities.If instruments, equipment and buildings in use are used for research and development activities and are also used for non-researchand development activities, necessary records are kept of the use of such instruments, equipment and buildings in use, and thedepreciation expense actually incurred is allocated between research and development expenses and production and operatingexpenses using a reasonable method based on factors such as actual man-hours worked and square footage of space utilized.Long-term amortized expenses are long-term amortized expenses incurred in the course of alteration, modification, renovation andrepair of research and development facilities, which are summarized on the basis of actual expenditures and amortized equallyover a specified period of time.
(4) Amortization expense of intangible assets
Amortization expense of intangible assets is the amortization expense of software, intellectual property, and non-patentedtechnologies (know-how, licenses, designs and calculation methods, etc.) used in research and development activities.
(5) Design costs
Design expenses are expenses incurred for the conception, development and manufacture of new products and processes, design ofprocesses, technical specifications, formulation of protocols, operational characteristics, etc., including expenses related to creativedesign activities for obtaining innovative, creative and breakthrough products.
(6) Equipment debugging costs and test costs
Equipment debugging costs are costs incurred for research and development activities in the process of preparing workpieces,including costs incurred for activities such as the development of special, specialized production machines, changes in productionand quality control procedures, or the development of new methods and standards.Costs incurred for routine tooling preparation and industrial engineering for mass production and commercialization are notincluded in the scope of collection.
(7) Commissioned external research and development costs
Entrusted external research and development expenses are expenses incurred by the Company for research and developmentactivities entrusted to other organizations or individuals inside or outside the country (the results of the research and developmentactivities are owned by the Company and are closely related to the Company's main business operations).
(8) Other expenses
Other expenses refer to expenses other than those mentioned above that are directly related to research and development activities,including technical library and data fees, data translation fees, expert consultation fees, insurance fees for high-tech research and
development, search, demonstration, evaluation, appraisal and acceptance fees for research and development results, applicationfees, registration fees and agency fees for intellectual property rights, meeting fees, travel fees and communication fees.
4. Expenditures on the research phase of an internal project are recognized as profit or loss when they are incurred. An intangibleasset arising from the development phase of an internal project is recognized if the Company can demonstrate all of the followings:
(1) the technical feasibility of completing the intangible asset so that it will be available for use or sale; (2) its intention tocomplete the intangible asset and use or sell it; (3) how the intangible asset will generate probable future economic benefits,among other things, the Company can demonstrate the existence of a market for the output of the intangible asset or the intangibleasset itself or, if it is to be used internally, the usefulness of the intangible asset; (4) the availability of adequate technical, financialand other resources to complete the development and to use or sell the intangible asset; and (5) its ability to measure reliably theexpenditure attributable to the intangible asset during its development.
19. Impairment of part of long-term assets
For long-term assets such as long-term equity investments, fixed assets, construction in progress, right-of-use assets, intangibleassets with finite useful lives, etc., if at the balance sheet date there is indication of impairment, the recoverable amount is to beestimated. For goodwill recognized in business combination and intangible assets with indefinite useful lives, no matter whetherthere is indication of impairment, impairment test is performed annually. Impairment test on goodwill is performed on related assetgroup or asset group portfolio.When the recoverable amount of such long-term assets is lower than their carrying amount, the difference is recognized asprovision for assets impairment through profit or loss.
20. Long-term prepayments
Long-term prepayments are expenses that have been recognized but with amortization period over one year (excluding one year).They are recorded with actual cost, and evenly amortized within the beneficiary period or stipulated period. If items of long-termprepayments fail to be beneficial to the following accounting periods, residual values of such items are included in profit or loss.
21. Employee benefits
(1) Short-term employee benefits
The Company recognizes, in the accounting period in which an employee provides service, short-term employee benefits actuallyincurred as liabilities, with a corresponding charge to profit or loss or the cost of a relevant asset.
(2) Post-employment benefits
The Company classifies post-employment benefit plans as either defined contribution plans or defined benefit plans.
(1) The Company recognizes in the accounting period in which an employee provides service the contribution payable to a definedcontribution plan as a liability, with a corresponding charge to profit or loss or the cost of a relevant asset.
(2) Accounting treatment by the Company for defined benefit plan usually involves the following steps:
1) In accordance with the projected unit credit method, using unbiased and mutually compatible actuarial assumptions to estimaterelated demographic variables and financial variables, measure the obligations under the defined benefit plan, and determine the
periods to which the obligations are attributed. Meanwhile, the Company discounts obligations under the defined benefit plan todetermine the present value of the defined benefit plan obligations and the current service cost;
2) When a defined benefit plan has assets, the Company recognizes the deficit or surplus by deducting the fair value of definedbenefit plan assets from the present value of the defined benefit plan obligation as a net defined benefit plan liability or net definedbenefit plan asset. When a defined benefit plan has a surplus, the Company measures the net defined benefit plan asset at the lower ofthe surplus in the defined benefit plan and the asset ceiling;
3) At the end of the period, the Company recognizes the following components of employee benefits cost arising from definedbenefit plan: a. service cost; b. net interest on the net defined benefit plan liability (asset); and c. changes as a result ofremeasurement of the net defined benefit liability (asset). Item a and item b are recognized in profit or loss or the cost of a relevantasset. Item c is recognized in other comprehensive income and is not to be reclassified subsequently to profit or loss. However, theCompany may transfer those amounts recognized in other comprehensive income within equity.
(3) Termination benefits
Termination benefits provided to employees are recognized as an employee benefit liability for termination benefits, with acorresponding charge to profit or loss at the earlier of the following dates: a. when the Company cannot unilaterally withdraw theoffer of termination benefits because of an employment termination plan or a curtailment proposal; or b. when the Companyrecognizes cost or expenses related to a restructuring that involves the payment of termination benefits.
(4) Other long-term employee benefits
When other long-term employee benefits provided to the employees satisfied the conditions for classifying as a defined contributionplan, those benefits are accounted for in accordance with the requirements relating to defined contribution plan, while other benefitsare accounted for in accordance with the requirements relating to defined benefit plan. The Company recognizes the cost of employeebenefits arising from other long-term employee benefits as the followings: a. service cost; b. net interest on the net liability or netassets of other long-term employee benefits; and c. changes as a result of remeasurement of the net liability or net assets of otherlong-term employee benefits. As a practical expedient, the net total of the aforesaid amounts is recognized in profit or loss orincluded in the cost of a relevant asset.
22. projected liability
1. When an obligation arising from contingencies such as guarantees given to others, litigation matters, product quality assurance,loss contracts, etc. becomes a present obligation of the company, and it is probable that the performance of the obligation willresult in an outflow of economic benefits to the company and the amount of the obligation can be measured reliably, the companyrecognizes the obligation as a projected liability.
2. The company initially measures a projected liability on the basis of the best estimate of the expenditure required to settle therelevant present obligation and reviews the carrying amount of the projected liability at the balance sheet date.
23. Revenue
Accounting policies on revenue recognition and measurement
1. Revenue recognition principles
At contract inception, the Company shall assess the contracts and shall identify each performance obligation in the contracts, anddetermine whether the performance obligation should be satisfied over time or at a point in time.The Company satisfies a performance obligation over time if one of the following criteria is met, otherwise, the performance
obligation is satisfied at a point in time: (1) the customer simultaneously receives and consumes the economic benefits provided bythe Company’s performance as the Company performs; (2) the customer can control goods as they are created by the Company’sperformance; (3) goods created during the Company’s performance have irreplaceable uses and the Company has an enforceableright to the payments for performance completed to date during the whole contract period.For each performance obligation satisfied over time, the Company shall recognize revenue over time by measuring the progresstowards complete satisfaction of that performance obligation. In the circumstance that the progress cannot be measured reasonably,but the costs incurred in satisfying the performance obligation are expected to be recovered, the Company shall recognize revenueonly to the extent of the costs incurred until it can reasonably measure the progress. For each performance obligation satisfied at apoint in time, the Company shall recognize revenue at the time point that the customer obtains control of relevant goods or services.To determine whether the customer has obtained control of goods, the Company shall consider the following indications: (1) theCompany has a present right to payment for the goods, i.e., the customer is presently obliged to pay for the goods; (2) the Companyhas transferred the legal title of the goods to the customer, i.e., the customer has legal title to the goods; (3) the Company hastransferred physical possession of the goods to the customer, i.e., the customer has physically possessed the goods; (4) the Companyhas transferred significant risks and rewards of ownership of the goods to the customer, i.e., the customer has obtained significantrisks and rewards of ownership of the goods; (5) the customer has accepted the goods; (6) other evidence indicating the customer hasobtained control over the goods.
2. Revenue measurement principle
(1) Revenue is measured at the amount of the transaction price that is allocated to each performance obligation. The transaction priceis the amount of consideration to which the Company expects to be entitled in exchange for transferring goods or services to acustomer, excluding amounts collected on behalf of third parties and those expected to be refunded to the customer.
(2) If the consideration promised in a contract includes a variable amount, the Company shall confirm the best estimate of variableconsideration at expected value or the most likely amount. However, the transaction price that includes the amount of variableconsideration only to the extent that it is high probable that a significant reversal in the amount of cumulative revenue recognizedwill not occur when the uncertainty associated with the variable consideration is subsequently resolved.
(3) In the circumstance that the contract contains a significant financing component, the Company shall determine the transactionprice based on the price that a customer would have paid for if the customer had paid cash for obtaining control over those goods orservices. The difference between the transaction price and the amount of promised consideration is amortized under effective interestmethod over contractual period. The effects of a significant financing component shall not be considered if the Company expects, atthe contract inception, that the period between when the customer obtains control over goods or services and when the customer paysconsideration will be one year or less.
(4) For contracts containing two or more performance obligations, the Company shall determine the stand-alone selling price atcontract inception of the distinct good underlying each performance obligation and allocate the transaction price to each performanceobligation on a relative stand-alone selling price basis.
3. Revenue recognition method
(1) Revenue from sales of products
The Company’s main products are nutrition, Aroma Chemicals, new polymer materials, etc. Sales of products are performanceobligations satisfied at a point in time. Revenue from domestic sales is recognized when the Company has delivered goods to thecustomer as agreed by contract and has obtained delivery note signed by the customer, and the Company has collected the paymentsor has obtained the right to the payments, and related economic benefits are highly probable to flow to the Company. Revenue fromoverseas sales is recognized when the Company has declared goods to the customs based on contractual agreements and has obtaineda bill of lading, and the Company has collected the payments or has obtained the right to the payments, and related economic benefitsare highly probable to flow to the Company.
(2) Revenue from real estate sales
Real estate sales are performance obligations satisfied at a point in time. Revenue from real estate sales is recognized when theCompany has delivered properties to the customer as agreed by contract and has obtained the client acceptance receipts signed by thecustomer, and the Company has collected the payments or has obtained the right to the payments, and related economic benefits arehighly probable to flow to the Company.
24. Contract assets, contract liabilities
The Company presents contract assets or contract liabilities in the balance sheet based on the relationship between its performanceobligations and customers’ payments. Contract assets and contract liabilities under the same contract shall offset each other and bepresented on a net basis.The Company presents an unconditional right to consideration (i.e., only the passage of time is required before the consideration isdue) as a receivable, and presents a right to consideration in exchange for goods that it has transferred to a customer (which isconditional on something other than the passage of time) as a contract asset.The Company presents an obligation to transfer goods to a customer for which the Company has received consideration (or theamount is due) from the customer as a contract liability.25．Government grants
1. Government grants shall be recognized if, and only if, the following conditions are all met: (1) the Company will comply with theconditions attaching to the grants; (2) the grants will be received. Monetary government grants are measured at the amount receivedor receivable. Non-monetary government grants are measured at fair value, and can be measured at nominal amount in thecircumstance that fair value cannot be assessed.
2. Government grants related to assets
Government grants related to assets are government grants with which the Company constructs or otherwise acquires long-termassets under requirements of government. In the circumstances that there is no specific government requirement, the Company shalldetermine based on the primary condition to acquire the grants, and government grants related to assets are government grants whoseprimary condition is to construct or otherwise acquire long-term assets. They offset carrying amount of relevant assets, or they arerecognized as deferred income. If recognized as deferred income, they are included in profit or loss on a systematic basis over theuseful lives of the relevant assets. Those measured at notional amount are directly included into profit or loss. For assets sold,transferred, disposed or damaged within the useful lives, balance of unamortized deferred income is transferred into profit or loss ofthe period in which the disposal occurred.
3. Government grants related to income
Government grants related to income are government grants other than those related to assets. For government grants that containboth parts related to assets and parts related to income, in which those two parts are blurred, they are thus collectively classified asgovernment grants related to income. For government grants related to income used for compensating the related future cost,expenses or losses, they are recognized as deferred income and included in profit or loss or used to offset relevant cost during theperiod in which the relevant cost, expenses or losses are recognized; for government grants related to income used for compensatingthe related cost, expenses or losses incurred to the Company, they are directly included in profit or loss or used to offset relevant cost.
4. Government grants related to the ordinary course of business shall be included into other income or used to offset relevant cost
based on business nature, while those not related to the ordinary course of business shall be included into non-operating revenue orexpenditures.
5. Policy interest subvention
(1) In the circumstance that government appropriates interest subvention to lending bank, who provides loans for the Company witha policy subsidised interest rate, borrowings are carried at the amount received, with relevant borrowings cost computed based on theprincipal and the policy subsidised interest rate.
(2) In the circumstance that government directly appropriates interest subvention to the Company, the subsidised interest shall offsetrelevant borrowing cost.
26. Deferred tax assets/Deferred tax liabilities
1. Deferred tax assets or deferred tax liabilities are calculated and recognized based on the difference between the carrying amountand tax base of assets and liabilities (and the difference of the carrying amount and tax base of items not recognized as assets andliabilities but with their tax base being able to be determined according to tax laws) and in accordance with the tax rate applicable tothe period during which the assets are expected to be recovered or the liabilities are expected to be settled.
2. A deferred tax asset is recognized to the extent of the amount of the taxable income, which is most likely to obtain and which canbe deducted from the deductible temporary difference. At the balance sheet date, if there is any exact evidence that it is probable thatfuture taxable income will be available against which deductible temporary differences can be utilized, the deferred tax assetsunrecognized in prior periods are recognized.
3. At the balance sheet date, the carrying amount of deferred tax assets is reviewed. The carrying amount of a deferred tax asset isreduced to the extent that it is no longer probable that sufficient taxable income will be available to allow the benefit of the deferredtax asset to be utilized. Such reduction is subsequently reversed to the extent that it becomes probable that sufficient taxable incomewill be available.
4. The income tax and deferred tax for the period are treated as income tax expenses or income through profit or loss, excluding thosearising from the following circumstances: (1) business combination; and (2) the transactions or items directly recognized in equity.
5. Deferred income tax assets and deferred income tax liabilities are stated at net amounts after offsetting when the followingconditions are simultaneously met: (1) there is a legal right to settle current income tax assets and current income tax liabilities on anet basis; (2) the deferred income tax assets and deferred income tax liabilities relate to income taxes levied by the same tax authorityon the same taxpaying entity, or relate to different taxpaying entities but are not realized or settled during each significant futureperiod in which the deferred income tax assets and deferred income tax liabilities are reversed. each future period in which thedeferred income tax assets and deferred income tax liabilities are reversed to the extent that the taxable entity involved intends toeither settle the current income tax assets and current income tax liabilities on a net basis or to acquire the assets and settle theliabilities at the same time.
27. Leases
（1）Operating lease
1. Accounting treatment of leases as les see
At the commencement date, the Company recognizes a lease that has a lease term of 12 months or less as a short-term lease, whichshall not contain a purchase option; the Company recognizes a lease as a lease of a low-value asset if the underlying asset is of lowvalue when it is new. If the Company subleases an asset, or expects to sublease an asset, the head lease does not qualify as a lease of
a low-value asset.For all short-term leases and leases of low-value assets, lease payments are recognized as cost or profit or loss with straight-linemethod/unit-of-production method over the lease term.Apart from the above-mentioned short-term leases and leases of low-value assets with simplified approach, the Company recognizesright-of-use assets and lease liabilities at the commencement date.
1) Right-of-use assets
The right-of-use asset is measured at cost and the cost shall comprise: 1) the amount of the initial measurement of the lease liability;
2) any lease payments made at or before the commencement date, less any lease incentives received; 3) any initial direct costsincurred by the lessee; and 4) an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset,restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of thelease.The Company depreciates the right-of-use asset using the straight-line method/unit-of-production method. If it is reasonable to becertain that the ownership of the underlying asset can be acquired by the end of the lease term, the Company depreciates the right-of-use asset from the commencement date to the end of the useful life of the underlying asset. Otherwise, the Company depreciates theright-of-use asset from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of thelease term.
2) Lease liability
At the commencement date, the Company measures the lease liability at the present value of the lease payments that are not paid atthat date, discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, the Company’s incrementalborrowing rate shall be used. Unrecognized financing expenses, calculated at the difference between the lease payment and itspresent value, are recognized as interest expenses over the lease term using the discount rate which has been used to determine thepresent value of lease payment and included in profit or loss. Variable lease payments not included in the measurement of leaseliabilities are included in profit or loss in the periods in which they are incurred.After the commencement date, if there is a change in the following items: a. actual fixed payments; b. amounts expected to bepayable under residual value guarantees; c. an index or a rate used to determine lease payments; d. assessment result or exercise ofpurchase option, extension option or termination option., the Company remeasures the lease liability based on the present value oflease payments after changes, and adjusts the carrying amount of the right-of-use asset accordingly. If the carrying amount of theright-of-use asset is reduced to zero but there shall be a further reduction in the lease liability, the remaining amount shall berecognized into profit or loss.
（2） Accounting for leases as lessor
At the inception date of a lease, the Company classifies leases that transfer substantially all the risks and rewards associated withownership of the leased asset as finance leases, and all other leases as operating leases.
1) Operating leases
The Company recognizes lease receipts as rental income on a straight-line basis in each period of the lease term. Initial direct costsincurred are capitalized and amortized on the same basis as rental income and recognized in profit or loss in the current period.Variable lease payments related to operating leases that are not recognized as lease receipts are recognized in profit or loss whenthey are actually incurred.
2) Finance leases
At the commencement date of the lease term, the Company recognizes a finance lease receivable based on the net investment inthe lease (the sum of the unguaranteed residual value and the present value of the lease receipts not yet received at thecommencement date of the lease term discounted at the interest rate embedded in the lease) and derecognizes the asset under afinance lease. During each period of the lease term, the Company calculates and recognizes interest income based on the interestrate embedded in the lease.Variable lease payments acquired by the Company that are not included in the measurement of the net investment in the lease arerecognized in profit or loss when they are actually incurred.
（3） Sale and leaseback
1) Company as lessee
The Company evaluates to determine whether the transfer of assets in a sale and leaseback transaction is a sale in accordance withthe provisions of ASBE No. 14, "Revenue".If the transfer of an asset in a sale and leaseback transaction is a sale, the Company measures the right-of-use asset resulting fromthe sale and leaseback at the portion of the original asset's carrying value that relates to the right-of-use acquired by leasing it backand recognizes the related gain or loss only on the transfer of the right to the lessor.If the transfer of an asset in a sale-leaseback transaction is not a sale, the Company continues to recognize the transferred asset,and at the same time recognizes a financial liability equal to the amount of the transfer proceeds and accounts for the financialliability in accordance with Accounting Standard for Business Enterprises (ASBE) No. 22, "Recognition and Measurement ofFinancial Instruments".
2) The Company as Lessor
The Company evaluates to determine whether the transfer of assets in a sale-and-leaseback transaction is a sale in accordance withASBE No. 14, "Revenue".If the transfer of assets in a sale-leaseback transaction is a sale, the Company accounts for the purchase of assets in accordancewith other applicable corporate accounting standards and for the lease of assets in accordance with ASBE No. 21 - Leasing.If the transfer of assets in a sale-leaseback transaction is not a sale, the company does not recognize the transferred assets, butrecognizes a financial asset equal to the transfer proceeds and accounts for the financial asset in accordance with ASBE No. 22,"Recognition and Measurement of Financial Instruments".
28. Work safety fund
Safety production fees extracted by the Company in accordance with the Administrative Measures for the Extraction and Use ofEnterprise Production Safety Expenses (Cai Zi [2022] No. 136) issued by the Ministry of Finance and the Ministry of EmergencyResponse are included in the cost of the relevant products or in current profit or loss, and are also recorded in the account of"special reserve". When the safety production fee is used, if it is an expense, it is directly deducted from the special reserve. If afixed asset is formed, the expenditure incurred is summarized under the "construction in progress" account and recognized as afixed asset when the safety project is completed and reaches the intended state of use; at the same time, the special reserve is
deducted in accordance with the cost of forming the fixed asset and accumulated depreciation of the same amount is recognized,and no depreciation will be provided for the fixed asset in the subsequent period.
29. Segment reporting
Operating segments are determined based on the structure of the Company’s internal organization, management requirements andinternal reporting system. An operating segment is a component of the Company:
1. that engages in business activities from which it may earn revenues and incur expenses;
2. whose financial performance is regularly reviewed by the Management to make decisions about resource to be allocated to thesegment and to assess its performance; and
3. for which accounting information regarding financial position, financial performance and cash flows is available throughanalysis.
30.Accounting treatment related to share repurchase
When the Company repurchases its shares for the purpose of reducing its registered capital or rewarding its employees, if thepurchased shares are to be kept as treasury shares, the treasury shares are recorded at the cash distributed to existing shareholdersfor repurchase; if the purchased shares are to be retired, the difference between the total par value of shares retired and the cashdistributed to existing shareholders for repurchase is to reduce capital reserve, or retained earnings when the capital reserve is notenough to reduce. If the Company repurchases vested equity instruments in equity-settled share-based payment transactions withemployees, cost of treasury shares granted to employees and capital reserve (other capital reserve) accumulated within the vestingperiod are to be written off on the payment made to employees, with a corresponding adjustment in capital reserve (sharepremium).
31.Significant changes in accounting policies and estimates
(1) Significant changes in accounting policies
□ Applicable √ Not Applicable
(2) Significant changes in accounting estimates
□ Applicable √ Not Applicable
（3）Adjustments to items related to financial statements at the beginning of the year of first-timeimplementation of new accounting standards from 2024onwards
□ Applicable √ Not Applicable
VI. Taxes
1. Main taxes and tax rates
| Taxes | Tax bases | Tax rates |
| Value-added tax (VAT) | The output tax calculated based on the revenue from sales of goods or rendering of services in accordance with the tax law, net of the input tax that is allowed to be deducted in the current period | 13%, 9%, 8%, 6%, 5% and 19%; export goods enjoy the “exemption, credit and refund” policy and the refund rate ranges from 0% to 13%; the subsidiary Zhejiang NHU Import & Export Co., Ltd. enjoys the “refund upon collection” policy and the refund rate ranges from 0% to 13%. |
| Urban maintenance and construction tax | Turnover tax actually paid | 5%, 7% |
| Enterprise income tax | Taxable income | 15%、16.5%、17%、20%、22%、25%、25.5%、34% |
| Land appreciation tax | The incremental amount arising from the transfer of state-owned land use right and the buildings and structures that are constructed on the land | A four-grade progressive tax system is adopted. The rates are: 30% for appreciated value not over 50% of total deductible amount; 40% for appreciated value over 50% but not over 100% of total deductible amount; 50% for appreciated value over 100% but not over 200% of total deductible amount; and 60% for appreciated value over 200% of total deductible amount. |
| Housing property tax | For housing property levied on the basis of price, housing property tax is levied at the rate of 1.2% of the balance after deducting 30% of the cost; for housing property levied on the basis of rent, housing property tax is levied at the rate of 12% of rent revenue. | 1.2%、12% |
| Education surcharge | Turnover tax actually paid | 3% |
| Local education surcharge | Turnover tax actually paid | 2% |
| Solidarity surcharge [Note] | Income tax payable | 5.5% |
| Trade tax [Note] | Taxable income | 13.3% |
Note: The subsidiaries NHU EUROPE GmbH, NHU PERFORMANCE MATERIALS GMBH and Bardoterminal GmbH are subjectto these rates.Different enterprise income tax rates applicable to different taxpayers:
| Taxpayers | Income tax rate |
| The Company | 15% |
| Shangyu NHU Bio-Chem Co., Ltd. | 15% |
| Shandong NHU Pharmaceutical Co., Ltd. | 15% |
| Shandong NHU Vitamins Co., Ltd. | 15% |
| Shandong NHU Amino-acids Co., Ltd. | 15% |
| Zhejiang NHU Special Materials Co., Ltd. | 15% |
| Heilongjiang NHU Biotechnology Co., Ltd. | 15% |
| Zhejiang NHU Pharmaceutical Co., Ltd | 15% |
| Shandong NHU Fine Chemical Science and Technology Co. | 15% |
| NHU (Hong Kong) Trading Co., Ltd. | Adoption of the territorial source principle of taxation, with |
| Taxpayers | Income tax rate |
| profits tax rate of 8.25% for the first HK$2 million of Hong Kong-sourced profits and 16.5% for the subsequent Hong Kong-sourced profits, while profits sourced elsewhere are not subject to Hong Kong profits tax | |
| NHU EUROPE GmbH | 15% |
| NHU PERFORMANCE MATERIALS GMBH | 15% |
| Bardoterminal GmbH | 15% |
| NHU Singapore PTE. LTD. | 17% |
| Shandong New Shuang'an Biotechnology Co., Ltd | 20% |
| NHU/CHR.OLESEN LATIN AMERICA A/S | 22% |
| NHU CHR.OLESEN MEXICO S.A.P.I. DE C.V. | 25.5% |
| NHU/CHR.OLESEN BRASIL LTDA | 34% |
| Other tax paying entities other than the above | 25% |
2. Tax preferential policies
1. Enterprise income tax
(1) Tax incentives for high-tech enterprises
1) According to the Hi-Tech Enterprise Certificate (GR202333009429) issued by Zhejiang Provincial Department of Scienceand Technology, Zhejiang Provincial Department of Finance and Zhejiang Provincial Tax Service, State Taxation Administration(STA), the Company is accredited as a hi-tech enterprise and entitled to enjoy the tax preferential policy from 2023 to 2025. It issubject to the rate of 15% for enterprise income tax in 2024.
2) According to the Hi-Tech Enterprise Certificate (GR202233002530) issued by Zhejiang Provincial Department of Scienceand Technology, Zhejiang Provincial Department of Finance and Zhejiang Provincial Tax Service, STA, the subsidiary ShangyuNHU Bio-Chem Co., Ltd. is accredited as a hi-tech enterprise and entitled to enjoy the tax preferential policy from 2022 to 2024. Itis subject to the rate of 15% for enterprise income tax in 2024.
3) According to the Hi-Tech Enterprise Certificate (GR202337003609) issued by Department of Science and Technology ofShandong Province, Shandong Provincial Department of Finance and Shandong Provincial Tax Service, STA, the subsidiaryShandong NHU Pharmaceutical Co., Ltd. is accredited as a hi-tech enterprise and entitled to enjoy the tax preferential policy from2023 to 2025. It is subject to the rate of 15% for enterprise income tax in 2024.
4) According to the Hi-Tech Enterprise Certificate (GR202337002254) issued by Department of Science and Technology ofShandong Province, Shandong Provincial Department of Finance and Shandong Provincial Tax Service, STA, the grandsonShandong NHU Vitamins Co., Ltd. is accredited as a hi-tech enterprise and entitled to enjoy the tax preferential policy from 2023to 2025. It is subject to the rate of 15% for enterprise income tax in 2024.
5) According to the Hi-Tech Enterprise Certificate (GR202137000086) issued by Department of Science and Technology ofShandong Province, Shandong Provincial Department of Finance and Shandong Provincial Tax Service, STA, the subsidiaryShandong NHU Amino Acid Co., Ltd. is accredited as a hi-tech enterprise and entitled to enjoy the tax preferential policy from2021 to 2023. It is subject to the rate of 15% for enterprise income tax in 2024.
6) According to the Hi-Tech Enterprise Certificate (GR202133008939) issued by Zhejiang Provincial Department of Scienceand Technology, Zhejiang Provincial Department of Finance and Zhejiang Provincial Tax Service, STA, the subsidiary Zhejiang
NHU Special Materials Co., Ltd. is accredited as a hi-tech enterprise and entitled to enjoy the tax preferential policy from 2021 to2023. It is subject to the rate of 15% for enterprise income tax in 2024.
7) According to the Hi-Tech Enterprise Certificate (GR202123000560) issued by Heilongjiang Provincial Department ofScience and Technology, Heilongjiang Provincial Department of Finance and Heilongjiang Provincial Tax Service, STA, thesubsidiary Heilongjiang NHU Biotechnology Co., Ltd. is accredited as a hi-tech enterprise and entitled to enjoy the tax preferentialpolicy from 2021 to 2023. It is subject to the rate of 15% for enterprise income tax in 2024.
8) According to the Hi-Tech Enterprise Certificate (GR202233004365) issued by Zhejiang Provincial Department ofScience and Technology, Zhejiang Provincial Department of Finance and Zhejiang Provincial Tax Service, STA, the subsidiaryZhejiang NHU Pharmaceutical Co., Ltd. is accredited as a hi-tech enterprise and entitled to enjoy the tax preferential policy from2022 to 2024. It is subject to the rate of 15% for enterprise income tax in 2024.
9) According to the Hi-Tech Enterprise Certificate (GR202237005690) issued by Department of Science and Technology ofShandong Province, Shandong Provincial Department of Finance and Shandong Provincial Tax Service, STA, the subsidiaryShandong NHU Fine ChemicalScience and Technology Co. is accredited as a hi-tech enterprise and entitled to enjoy the taxpreferential policy from 2022 to 2024. It is subject to the rate of 15% for enterprise income tax in 2024.
(2) Tax incentives for micro and small enterprises
According to the Announcement of the Ministry of Finance and the State Administration of Taxation on Preferential Policieson Income Tax for Small and Micro Enterprises and Individual Entrepreneurs (Announcement of the Ministry of Finance and theState Administration of Taxation No. 6 of 2023) and the Announcement on Further Implementation of Preferential Policies on theIncome Tax for Small and Micro Enterprises (Announcement of the Ministry of Finance and the State Administration of TaxationNo. 13 of 2022), from 1 January 2023 to 31 December 2024, small and micro enterprises are entitled to a reduction of 25% of theirannual taxable income and a tax rate of 20%. taxable income of small micro-profit enterprises not exceeding 1 million yuan shallbe reduced by 25% of the taxable income and subject to enterprise income tax at a rate of 20%. From January 1, 2022 to December31, 2024, the portion of the annual taxable income of small micro-profit enterprises exceeding 1 million yuan but not exceeding 3million yuan shall be reduced by 25% of the taxable income and subject to enterprise income tax at a rate of 20%. The grandsoncompany, Shandong New Shuang'an Biotechnology Co., Ltd is subject to enterprise income tax at the corresponding preferentialtax rate.
(3) Tax Benefits for Foreign Enterprises
According to Section 14 of the Inland Revenue Ordinance, Chapter 112 of the Laws of Hong Kong, Hong Kong adopts theterritorial source principle of taxation, i.e. only profits derived from Hong Kong are subject to Hong Kong tax, whereas profitsderived from elsewhere are not subject to Hong Kong profits tax. The subsidiary, Sun Woo Shing (Hong Kong) Trading CompanyLimited, is subject to enterprise income tax at the corresponding preferential tax rate.
2. VAT
(According to the Announcement of the Ministry of Finance and the State Administration of Taxation on the Policy of Value-added Tax Credits for Enterprises in the Advanced Manufacturing Industry (Announcement of the Ministry of Finance and theState Administration of Taxation No. 43 of 2023), from 1 January 2023 to 31 December 2027, enterprises in the advancedmanufacturing industry are allowed to offset the payable value-added tax by adding 5% to the current period's creditable input taxamount. Subsidiaries Shangyu NHU Bio-Chem Co., Ltd., Shandong NHU Pharmaceutical Co., Ltd., Ltd.and Zhejiang NHUSpecial Materials Co., Ltd., and grandson Shandong NHU Vitamins Co., Ltd., enjoy the preferential policy of adding 5% to theinput tax credits.
VII. Notes to items of consolidated financial statements
1. Cash and bank balances
Unit: RMB Yuan
| Items | Closing balance | Opening balance |
| Cash on hand | 25,690.31 | 21,747.98 |
| Cash in bank | 4,830,283,255.54 | 4,445,046,788.85 |
| Other cash and bank balances | 71,464,951.20 | 97,192,582.33 |
| Digital Currency - RMB | 1,100,027.82 | |
| Total | 4,901,773,897.05 | 4,543,361,146.98 |
| Including: Deposited overseas | 97,689,798.21 | 89,207,212.60 |
Other remarksOther cash and bank balances
Unit: RMB Yuan
| Items | Closing balance | Opening balance |
| Deposit for bank acceptance | 55,388,324.90 | 77,905,369.24 |
| Deposit for letters of credit | 1,641,394.48 | 12,048,779.84 |
| Customs Margin | 3,830,850.00 | 3,929,600.00 |
| Deposit for construction safety | 872,914.81 | 870,050.56 |
| Deposit for engineering labor costs | 854,083.87 | 853,216.21 |
| Deposit for water fees | 661,888.24 | 661,215.83 |
| Letter of Guarantee Deposit | 8,183,592.83 | 500,000.00 |
| Deposited investment fund | 1.00 | 393,449.58 |
| Deposit for ETC | 23,500.00 | 22,500.00 |
| Alipay balance | 8,401.07 | 8,401.07 |
| Total | 71,464,951.20 | 97,192,582.33 |
2. Held-for-trading financial assets
Unit: RMB Yuan
| Items | Closing balance | Opening balance |
| Financial assets at fair value through profit or loss | 8,741,096.39 | 173,056,050.95 |
| Including: | ||
| Financial products with guaranteed principal and floating income | 145,000,000.00 | |
| Derivative financial assets | 8,741,096.39 | 28,056,050.95 |
| Total | 8,741,096.39 | 173,056,050.95 |
3. Notes receivable
(1) Details on categories
Unit: RMB Yuan
| Items | Closing balance | Opening balance |
| Bank acceptance | 181,217,154.28 | 116,125,267.70 |
| Commercial Acceptance | 9,481,950.00 | |
| Total | 190,699,104.28 | 116,125,267.70 |
(2) Classified disclosure by bad debt provision method
Unit: RMB Yuan
| Categories | Closing balance | ||||
| Book balance | Provision for bad debts | Carrying amount | |||
| Amount | % to total | Amount | Provision proportion | ||
| Notes receivable with provision for bad debts made on a collective basis | 191,198,154.28 | 100.00% | 499,050.00 | 0.26% | 190,699,104.28 |
| Including: | |||||
| Bank acceptance | 181,217,154.28 | 94.78% | 181,217,154.28 | ||
| Commercial Acceptance | 9,981,000.00 | 5.22% | 499,050.00 | 5.00% | 9,481,950.00 |
| Total | 191,198,154.28 | 100.00% | 499,050.00 | 0.26% | 190,699,104.28 |
(Continued)
| Categories | Opening balance | ||||
| Book balance | Provision for bad debts | Carrying amount | |||
| Amount | % to total | Amount | Provision proportion | ||
| Notes receivable with provision for bad debts made on a collective basis | 116,125,267.70 | 100.00% | 116,125,267.70 | ||
| Including: | |||||
| Bank acceptance | 116,125,267.70 | 100.00% | 116,125,267.70 | ||
| Commercial acceptance | |||||
| Total | 116,125,267.70 | 100.00% | 116,125,267.70 | ||
Provision for bad debts by portfolio Category name: Bank/commercial acceptances portfolio
Unit: RMB Yuan
| Categories | Closing balance | ||
| Book balance | Provision for bad debts | Provision proportion | |
| Bank acceptance | 181,217,154.28 | ||
| Commercial acceptance | 9,981,000.00 | 499,050.00 | 5.00% |
| Total | 191,198,154.28 | 499,050.00 | |
If the allowance for bad debts on notes receivable is based on a general model of expected credit losses:
□ Applicable √ Not Applicable
(3) Provision for bad debts made, recovered or reversed during the period
Provision for bad debts in the current period:
Unit: RMB Yuan
| Categories | Opening balance | Increase/Decrease | Closing balance | |||
| Accrual | Recovery/ Reversal | Write-off | Others | |||
| Provision made on a collective basis | 499,050.00 | 499,050.00 | ||||
| Total | 499,050.00 | 499,050.00 | ||||
Of which the amount of bad debt provision recovered or reversed during the period is significant:
□ Applicable √ Not Applicable
(4) Pledged notes at the balance sheet date
Unit: RMB Yuan
| Items | Closing balance of pledged notes |
| Bank acceptance | 32,594,214.73 |
| Total | 32,594,214.73 |
(5) Endorsed or discounted but undue notes at the balance sheet date
Unit: RMB Yuan
| Items | Closing balance derecognized | Closing balance not yet derecognized |
| Bank acceptance | 394,216,061.95 | |
| Total | 394,216,061.95 |
（6）Other remarks
The acceptors of these bankers' acceptances are commercial banks with high creditworthiness, and the probability of non-payment ofbankers' acceptances accepted by them at maturity is relatively low, therefore, the Company will derecognize these bankers'acceptances that have been endorsed or discounted. However, if the notes are not paid when due, the Company will still be jointlyand severally liable to the bearer in accordance with the provisions of the Bills of Exchange Act.
4. Accounts receivable
（1） Age analysis
Unit: RMB Yuan
| Ages | Closing balance | Opening balance |
| Within 1 year (inclusive) | 3,380,909,745.18 | 2,540,372,908.81 |
| 1-2 years | 22,452,142.58 | 87,390,861.85 |
| 2-3 years | 82,254,956.50 | |
| Over 3 years | 2,106,280.80 | 2,106,280.80 |
| Ages | Closing balance | Opening balance |
| 3-4 years | 57,000.00 | 57,000.00 |
| 4-5 years | 203,200.00 | |
| Over 5 years | 2,049,280.80 | 1,846,080.80 |
| Total | 3,487,723,125.06 | 2,629,870,051.46 |
（2） Details on categories
Unit: RMB Yuan
| Categories | Closing balance | ||||
| Book balance | Provision for bad debts | Carrying amount | |||
| Amount | % to total | Amount | Provision proportion | ||
| Including: | |||||
| Accounts receivable with provision for bad debts made on a collective basis | 3,487,723,125.06 | 100.00% | 241,446,161.72 | 6.92% | 3,246,276,963.34 |
| Total | 3,487,723,125.06 | 100.00% | 241,446,161.72 | 6.92% | 3,246,276,963.34 |
(Continued)
| Categories | Opening balance | ||||
| Book balance | Provision for bad debts | Carrying amount | |||
| Amount | % to total | Amount | Provision proportion | ||
| Including: | |||||
| Accounts receivable with provision for bad debts made on a collective basis | 2,629,870,051.46 | 100.00% | 146,603,098.58 | 5.57% | 2,483,266,952.88 |
| Total | 2,629,870,051.46 | 100.00% | 146,603,098.58 | 5.57% | 2,483,266,952.88 |
Provision for bad debts by portfolio Category name: Accounts receivable for which provision for bad debts is made using ageingportfolios
Unit: RMB Yuan
| Ages | 期末余额 | ||
| Closing balance | Closing balance of provision for bad debts | Proportion to the total balance of receivables | |
| Within 1 year (inclusive) | 3,380,909,745.18 | 169,045,487.18 | 5.00% |
| 1-2 years | 22,452,142.58 | 4,490,428.53 | 20.00% |
| 2-3 years | 82,254,956.50 | 65,803,965.21 | 80.00% |
| Over 3 years | 2,106,280.80 | 2,106,280.80 | 100.00% |
| Total | 3,487,723,125.06 | 241,446,161.72 | |
A description of the basis for determining the portfolio:
Provision for bad debts using an ageing portfolioIf the allowance for bad debts for accounts receivable is based on the general model of expected credit losses:
□ Applicable √ Not Applicable
（3） Provisions made, collected or reversed in the current period
Provisions made in the current period:
Unit: RMB Yuan
| Categories | Opening balance | Increase/Decrease | Closing balance | |||
| Accrual | Recovery/ Reversal | Write-off | Others | |||
| Provision made on a collective basis | 146,603,098.58 | 94,843,063.14 | 241,446,161.72 | |||
| Total | 146,603,098.58 | 94,843,063.14 | 241,446,161.72 | |||
（4）Details of the top 5 debtors with largest balances
Unit: RMB Yuan
| Debtors | Closing balance | Proportion to the total balance of receivables | Closing balance of provision for bad debts |
| Client A | 366,824,260.14 | 10.52% | 18,341,213.01 |
| Client B | 279,142,788.47 | 8.00% | 16,910,777.69 |
| Client C | 93,786,644.46 | 2.69% | 66,370,253.57 |
| Client D | 60,510,394.73 | 1.73% | 3,025,519.74 |
| Client E | 59,929,667.43 | 1.72% | 2,996,483.37 |
| Total | 860,193,755.23 | 24.66% | 107,644,247.38 |
5. Receivables financing
（1） Presentation of receivable financing classifications
Unit: RMB Yuan
| Items | Closing balance | Opening balance |
| Bank acceptance | 537,845,382.40 | 331,634,090.61 |
| Total | 537,845,382.40 | 331,634,090.61 |
（2） Pledged notes at the balance sheet date
Unit: RMB Yuan
| Items | Closing balance of pledged notes |
| Bank acceptance | 174,672,943.58 |
| Subtotal | 174,672,943.58 |
（3） Endorsed or discounted but undue notes at the balance sheet date
Unit: RMB Yuan
| Items | Closing balance derecognized | Closing balance not yet derecognized |
| Bank acceptance | 701,104,911.77 | |
| Total | 701,104,911.77 |
（4） Other remarks:
Due to the fact that the acceptor of bank acceptance is commercial bank, which is of high credit level, there is very little possibilityof failure in recoverability when it is due. Based on this fact, the Company derecognized the endorsed or discounted bankacceptance. However, if any bank acceptance is not recoverable when it is due, the Company still holds joint liability on suchacceptance, according to the China Commercial Instrument Law.
6. Other receivables
Unit: RMB Yuan
| Items | Closing balance | Opening balance |
| Other receivables | 184,691,433.46 | 142,060,705.67 |
| Total | 184,691,433.46 | 142,060,705.67 |
（1） Dividend receivable
1） Categorized by nature
Unit: RMB Yuan
| Nature of receivables | Closing book balance | Opening book balance |
| Export tax refund | 96,004,673.38 | 59,999,917.27 |
| Security deposits | 24,090,926.26 | 26,223,295.23 |
| Refundable VAT | 42,110,754.72 | 49,708,056.90 |
| Employee petty cash | 17,871,621.36 | 5,892,932.02 |
| Temporary advance payment receivable | 4,884,395.25 | 5,105,463.95 |
| Others | 6,781,993.55 | 2,290,423.97 |
| Total | 191,744,364.52 | 149,220,089.34 |
2） Ages analysis
Unit: RMB Yuan
| Ages | Closing book balance | Opening book balance |
| Within 1 year (inclusive) | 169,631,451.69 | 121,257,098.80 |
| 1-2 years | 4,410,671.00 | 4,774,411.02 |
| 2-3 years | 1,454,853.23 | 5,220,071.25 |
| Over 3 years | 16,247,388.60 | 17,968,508.27 |
| 3-4 years | 2,356,106.18 | 1,111,491.23 |
| 4-5 years | 504,362.31 | 3,390,964.34 |
| Over 5 years | 13,386,920.11 | 13,466,052.70 |
| Total | 191,744,364.52 | 149,220,089.34 |
3） Classified disclosure by bad debt provision method
√ Applicable □ Not Applicable
Unit: RMB Yuan
| Categories | Closing balance | ||||
| Book balance | Provision for bad debts | Carrying amount | |||
| Amount | % to total | Amount | Provision proportion | ||
| Including: | |||||
| Provision for bad debts by portfolio | 191,744,364.52 | 100.00% | 7,052,931.06 | 3.68% | 184,691,433.46 |
| Total | 191,744,364.52 | 100.00% | 7,052,931.06 | 3.68% | 184,691,433.46 |
(Continued)
| Categories | Opening balance | ||||
| Book balance | Provision for bad debts | Carrying amount | |||
| Amount | % to total | Amount | Provision proportion | ||
| Including: | |||||
| Provision for bad debts by portfolio | 149,220,089.34 | 100.00% | 7,159,383.67 | 4.80% | 142,060,705.67 |
| Total | 149,220,089.34 | 100.00% | 7,159,383.67 | 4.80% | 142,060,705.67 |
Provision for Bad Debts by Portfolio Category Name:
Unit: RMB Yuan
| Categories | Closing balance | ||
| Amount | Carrying amount | % to total | |
| Export tax refund receivable portfolio | 96,004,673.38 | ||
| VAT refund receivable portfolio | 42,110,754.72 | ||
| Land bond receivable portfolio | 17,354,493.50 | ||
| Portfolio of deposits receivable from customs and tax authorities | 1,114,528.35 | ||
| Ages | 35,159,914.57 | 7,052,931.06 | 20.06% |
| Within 1 year (inclusive) | 25,565,764.24 | 1,278,288.25 | 5.00% |
| 1-2 years | 4,410,671.00 | 882,134.13 | 20.00% |
| 2-3 years | 1,454,853.23 | 1,163,882.58 | 80.00% |
| Over 3 years | 3,728,626.10 | 3,728,626.10 | 100.00% |
| Total | 191,744,364.52 | 7,052,931.06 | |
Provision for bad debts is made on the basis of a general model of expected credit losses:
Unit: RMB Yuan
| Provision for bad debts | Phase I | Phase II | Phase III | Total |
| 12?month expected credit losses | Lifetime expected credit losses (credit not impaired) | Lifetime expected credit losses (credit impaired) | ||
| Opening balance | 603,066.99 | 799,098.71 | 5,757,217.97 | 7,159,383.67 |
| Opening balance in the current period |
| Provision for bad debts | Phase I | Phase II | Phase III | Total |
| 12?month expected credit losses | Lifetime expected credit losses (credit not impaired) | Lifetime expected credit losses (credit impaired) | ||
| --Transferred to phase II | -220,533.55 | 220,533.55 | ||
| --Transferred to phase III | -290,970.65 | 290,970.65 | ||
| Provision made in the current period | 895,754.81 | 153,472.52 | -1,155,679.94 | -106,452.61 |
| Closing balance | 1,278,288.25 | 882,134.13 | 4,892,508.68 | 7,052,931.06 |
Classification of stages and bad debt provisioning ratioThe basis of classification by stages: Accounts aged less than one year are classified as stage I, accounts aged 1 to 2 years areclassified as stage II, and accounts aged more than 2 years are classified as stage III.Changes in carrying amounts for which the amount of change in the provision for losses during the period is material.
□Applicable √ Not applicable
4） Provisions made, collected or reversed in the current period
Provisions made in the current period:
Unit: RMB Yuan
| Categories | Opening balance | Increase/Decrease | Closing balance | |||
| Accrual | Recovery/Reversal | Write-off | Others | |||
| Provision made on a collective basis | 7,159,383.67 | -106,452.61 | 7,052,931.06 | |||
| Total | 7,159,383.67 | -106,452.61 | 7,052,931.06 | |||
5） Details of the top 5 debtors with largest balances
Unit: RMB Yuan
| Debtors | Nature of receivables | Book balance | Ages | Proportion to the total balance of other receivables | Provision for bad debts |
| National Revenue Service (export tax refunds receivable) | Export tax refund | 96,004,673.38 | Within 1 year (inclusive) | 50.07% | |
| Servicio de Administración Tributaria | Refundable VAT | 21,033,746.39 | Within 1 year (inclusive) | 10.97% | |
| Weifang Municipal Bureau of Land and Resource, Binhai District Branch | Security deposits | 4,835,731.00 | 2-3 years | 2.52% | |
| Security deposits | 12,518,762.50 | Over 3 years | 6.53% | ||
| Bundeskasse | Refundable VAT | 15,021,190.45 | Within 1 year (inclusive) | 7.83% | |
| Secretaria da Fazenda do Estado | Refundable VAT | 5,480,141.18 | Within 1 year (inclusive) | 2.86% | |
| 合计 | 154,894,244.90 | 80.78% |
7. Advances paid
(1) Age analysis
Unit: RMB Yuan
| Ages | Closing balance | Opening balance | ||
| Amount | % to total | Amount | % to total | |
| Within 1 year | 166,506,680.76 | 99.39% | 206,538,373.94 | 98.69% |
| 1-2 years | 108,272.82 | 0.06% | 2,623,068.38 | 1.25% |
| 2-3 years | 839,596.86 | 0.50% | 97,159.73 | 0.05% |
| Over 3 years | 81,915.21 | 0.05% | 16,000.00 | 0.01% |
| Total | 167,536,465.65 | 209,274,602.05 | ||
Explanation of the reasons for untimely settlement of prepayments aged over 1 year and of significant amount: None
(2) Details of the top 5 debtors with largest balances
Unit: RMB Yuan
| Debtors | Book balance | Proportion to the total balance of advances paid (%) |
| Supplier A | 26,475,446.78 | 15.80% |
| Supplier B | 21,825,705.94 | 13.03% |
| Supplier C | 13,540,925.74 | 8.08% |
| Supplier D | 10,546,547.97 | 6.30% |
| Supplier E | 10,075,183.74 | 6.01% |
| Subtotal | 82,463,810.17 | 49.22% |
8. Inventories
Is the company subject to disclosure requirements for the real estate industryNo
(1) Inventory classification
Unit: RMB Yuan
| Items | Closing balance | Opening balance | ||||
| Book balance | Provision for inventory write-down/ Provision for impairment of cost to fulfill a contract | Carrying amount | Book balance | Provision for inventory write-down/ Provision for impairment of cost to fulfill a contract | Carrying amount | |
| Raw materials | 481,956,305.79 | 6,293,242.29 | 475,663,063.50 | 527,624,081.09 | 6,293,242.29 | 521,330,838.80 |
| Work in process | 1,243,703,289.24 | 6,519,042.73 | 1,237,184,246.51 | 1,178,294,229.77 | 6,519,042.73 | 1,171,775,187.04 |
| Goods on hand | 2,529,309,730.55 | 143,316,807.37 | 2,385,992,923.18 | 2,417,138,791.32 | 216,472,992.13 | 2,200,665,799.19 |
| Goods dispatched | 109,009,048.46 | 0.00 | 109,009,048.46 | 108,180,564.86 | 108,180,564.86 | |
| Development cost | 54,960,480.22 | 0.00 | 54,960,480.22 | 98,068,949.58 | 98,068,949.58 | |
| Items | Closing balance | Opening balance | ||||
| Book balance | Provision for inventory write-down/ Provision for impairment of cost to fulfill a contract | Carrying amount | Book balance | Provision for inventory write-down/ Provision for impairment of cost to fulfill a contract | Carrying amount | |
| Developed products | 122,563,022.12 | 122,563,022.12 | ||||
| Materials on consignment for further processing | 5,397,665.27 | 0.00 | 5,397,665.27 | 5,430,259.53 | 5,430,259.53 | |
| Packages | 19,451,169.29 | 0.00 | 19,451,169.29 | 17,397,177.94 | 17,397,177.94 | |
| Low-value consumables | 1,645,133.99 | 0.00 | 1,645,133.99 | 73,467,076.28 | 73,467,076.28 | |
| Total | 4,445,432,822.81 | 156,129,092.39 | 4,289,303,730.42 | 4,548,164,152.49 | 229,285,277.15 | 4,318,878,875.34 |
(2) Inventories – Development cost
Unit: RMB Yuan
| Items | Estimated total investment | Opening balance | Closing balance |
| Weifang NHU Town Phase II | 398 million | 54,960,480.22 | 54,960,480.22 |
| Boao NHU Resort[Note] | 550 million | 43,108,469.36 | |
| Subtotal | 98,068,949.58 | 54,960,480.22 |
[Note] Qionghai Boao Lidu Real Estate Co., Ltd. was sold in June 2024 for transfer and assignment.
(3) Inventories – Developed products
Unit: RMB Yuan
| Items | Date of completion | Opening balance | Increase | Decrease | Closing balance |
| Boao NHU Resort Center[Note] | December 2014 | 122,563,022.12 | 122,563,022.12 | ||
| Subtotal | 122,563,022.12 | 122,563,022.12 |
[Note] Qionghai Boao Lidu Real Estate Co., Ltd. was sold in June 2024 for transfer and assignment.
(4)Provision for inventory write-down and provision for impairment of cost to fulfill acontract
Unit: RMB Yuan
| Items | Opening balance | Increase | Decrease | Closing balance | ||
| Accrual | Others | Recovery/ Reversal | Others | |||
| Raw materials | 6,293,242.29 | 6,293,242.29 | ||||
| Work in process | 6,519,042.73 | 6,519,042.73 | ||||
| Goods on hand | 216,472,992.13 | 10,175,642.76 | 83,331,827.52 | 143,316,807.37 | ||
| Total | 229,285,277.15 | 10,175,642.76 | 83,331,827.52 | 156,129,092.39 | ||
| Items | Determination basis of net realizable value | Reasons for write-off of provision for inventory write-down | Reasons for reversal of provision for decline in value of inventories |
| Raw materials | Net realizable value is determined as the estimated selling price of the relevant finished goods, less costs estimated to be incurred to completion, estimated selling expenses and related taxes. | Increase in net realizable value of inventories for which provision for decline in value of inventories was made in prior periods | Consumption of inventories for which provision for decline in value of inventories has been made during the period |
| Work in process | Net realizable value is determined as the estimated selling price of the relevant finished goods, less costs estimated to be incurred to completion, estimated selling expenses and related taxes. | Increase in net realizable value of inventories for which provision for decline in value of inventories was made in prior periods | Inventories for which provision for inventory write-downs was made at the beginning of the period were depleted during the period. |
| Goods on hand | Net realizable value is determined as the estimated selling price of the relevant finished goods, less estimated selling expenses and related taxes. | Increase in net realizable value of inventories for which provision for decline in value of inventories was made in prior periods | Inventories for which provision for decline in value of inventories was made at the beginning of the period were sold during the period |
9. Other current assets
Unit: RMB Yuan
| Items | Closing balance | Opening balance |
| Prepaid VAT or input VAT to be credited | 10,642,974.64 | 47,538,826.76 |
| Prepaid enterprise income tax | 5,070,275.22 | |
| Prepaid insurance premiums | 5,363,109.87 | 4,738,519.69 |
| Prepaid rental costs | 1,870,678.68 | |
| Prepaid urban maintenance and construction tax | 13,194.85 | |
| Prepaid education surcharge | 7,916.74 | |
| Prepaid local education surcharge | 5,278.11 | |
| Amortized catalyst costs | 458,512.52 | 10,858,733.66 |
| Total | 18,335,275.71 | 68,232,745.03 |
10、Other equity instrument investments
Unit: RMB Yuan
| Items | Opening balance | Closing balance | Profit recognized in other comprehensive income for the period | Loss for the period charged to other comprehensive income | Profit accumulated in other comprehensive income at the end of the period | Losses accumulated in other comprehensive income at the end of the period | Dividend income recognized during the period | Reasons for designation as at fair value through other comprehensive income |
| Zhejiang Second Pharma Co., Ltd. | 7,790,147.55 | 7,790,147.55 | ||||||
| Shanghai NewMargin Yongjin Eqiuty Enterprise (LP) | 15,208,000.00 | 14,208,000.00 | 1,500,000.00 | |||||
| Total | 22,998,147.55 | 21,998,147.55 | 1,500,000.00 |
Other remarks: During the reporting period, RMB1,000,000.00 was recovered from the investment in Shanghai LianchuangYongjin Equity Investment Enterprise (Limited Partnership) and RMB1,500,000.00 was received as dividend from ShanghaiLianchuang Yongjin Equity Investment Enterprise (Limited Partnership).
11. Long-term equity investments
Unit: RMB Yuan
| Investees | Opening carrying amount | Closing carrying amount | Increase/Decrease | Closing carrying amount | Closing balance of provision for impairment | |||||||
| Investments increased | Investments decreased | Investment income/losses recognized under equity method | Adjustment in other comprehensive income | Changes in other equity | Cash dividend/ Profit declared for distribution | Provision for impairment | Others | |||||
| I. Joint ventures | ||||||||||||
| Ningbo ZRCC NHU Biotechnology Co., Ltd. | 216,166,978.49 | 155,672,000.00 | -15,649,565.41 | 356,189,413.08 | ||||||||
| Subtotal | 216,166,978.49 | 155,672,000.00 | -15,649,565.41 | 356,189,413.08 | ||||||||
| II. Associates | ||||||||||||
| Zhejiang Chunhui Environmental Protection Energy Co., Ltd. | 281,395,724.54 | 28,351,365.91 | -13,377.44 | 309,733,713.01 | ||||||||
| Zhejiang sanbo polymer Co., Ltd | ||||||||||||
| Envalior NHU Engineering Materials (Zhejiang) Co.,Ltd. | 27,298,340.00 | 7,637,695.80 | -2,296,983.17 | 32,639,052.63 | ||||||||
| Zhejiang Saiya Chemical Materials Co., Ltd. | 131,603,201.04 | 7,537,514.10 | 14,700,000.00 | 517,607.75 | 124,958,322.89 | |||||||
| CysBio ApS | 31,028,778.21 | -1,932,131.62 | 187,297.78 | 29,283,944.37 | ||||||||
| Shandong Bin’an Vocational Training School Co., Ltd. [Note1]] | 5,057,575.53 | -823,341.89 | 4,234,233.64 | |||||||||
| Anhui Innovation Technology Co., Ltd | 4,594,602.27 | 375,060.61 | 4,969,662.88 | |||||||||
| Subtotal | 480,978,221.59 | 41,146,162.91 | 187,297.78 | 14,700,000.00 | -1,792,752.86 | 505,818,929.42 | ||||||
| Total | 697,145,200.08 | 155,672,000.00 | 25,496,597.50 | 187,297.78 | 14,700,000.00 | -1,792,752.86 | 862,008,342.50 | |||||
[Note1] The Company received cash dividends of RMB 14,700,000.00 yuan in the current periodRecoverable amount determined as fair value less costs of disposal, net
□Applicable √ Not applicable
Recoverable amount is determined as the present value of the expected future cash flows
□Applicable √ Not applicable
12. Fixed assets
Unit: RMB Yuan
| Items | Closing balance | Opening balance |
| Fixed assets | 22,034,912,795.44 | 21,860,082,637.13 |
| Total | 22,034,912,795.44 | 21,860,082,637.13 |
(1) Details
Unit: RMB Yuan
| Items | Buildings and structures | Generali equipment | Special equipment | Transport facilities | Total |
| I. Cost: | |||||
| 1. Opening balance | 8,220,153,443.34 | 246,508,090.08 | 21,354,530,121.42 | 31,963,168.08 | 29,853,154,822.92 |
| 2. Increase | 91,732,463.86 | 12,778,563.96 | 1,150,301,170.54 | 890,268.63 | 1,255,702,466.99 |
| (1) Acquisition | 26,140,070.12 | 2,864,396.21 | 167,460,910.59 | 890,268.63 | 197,355,645.55 |
| (2) Transferred in from construction in progress | 65,592,393.74 | 9,914,167.75 | 982,840,259.95 | 1,058,346,821.44 | |
| 3. Decrease | 799,266.52 | 1,663,480.47 | 77,941,247.87 | 4,629,750.09 | 85,033,744.95 |
| (1) Disposal/ Scrapping | 799,266.52 | 1,663,480.47 | 77,941,247.87 | 4,629,750.09 | 85,033,744.95 |
| 4. Closing balance | 8,311,086,640.68 | 257,623,173.57 | 22,426,890,044.09 | 28,223,686.62 | 31,023,823,544.96 |
| II. Accumulated depreciation | |||||
| 1. Opening balance | 1,071,234,328.09 | 156,415,458.02 | 6,719,751,917.92 | 16,912,727.74 | 7,964,314,431.77 |
| 2. Increase | 116,720,929.89 | 15,885,054.98 | 924,244,498.45 | 1,466,380.18 | 1,058,316,863.50 |
| (1) Accrual | 116,720,929.89 | 15,885,054.98 | 924,244,498.45 | 1,466,380.18 | 1,058,316,863.50 |
| 3. Decrease | 2,559,062.65 | 1,433,555.27 | 54,038,256.98 | 4,419,255.16 | 62,450,130.06 |
| (1) Disposal/ Scrapping | 2,559,062.65 | 1,433,555.27 | 54,038,256.98 | 4,419,255.16 | 62,450,130.06 |
| 4. Closing balance | 1,185,396,195.33 | 170,866,957.73 | 7,589,958,159.39 | 13,959,852.76 | 8,960,181,165.21 |
| III. Provision for impairment | |||||
| 1. Opening balance | 20,980,481.81 | 7,112.74 | 7,770,159.47 | 28,757,754.02 | |
| 2. Increase | |||||
| 3. Decrease | 28,169.71 | 28,169.71 | |||
| (1) Disposal/ Scrapping | 28,169.71 | 28,169.71 | |||
| 4. Closing balance | 20,980,481.81 | 7,112.74 | 7,741,989.76 | 28,729,584.31 | |
| IV. Carrying amount | |||||
| 1. Closing balance | 7,104,709,963.54 | 86,749,103.10 | 14,829,189,894.94 | 14,263,833.86 | 22,034,912,795.44 |
| 2. Opening balance | 7,127,938,633.44 | 90,085,519.32 | 14,627,008,044.03 | 15,050,440.34 | 21,860,082,637.13 |
(2) Fixed assets temporarily idle
Unit: RMB Yuan
| Items | Cost | Accumulated depreciation | Provision for impairment | Carrying amount | Remarks |
| Buildings and structures | 194,194,911.61 | 52,617,330.83 | 20,975,435.81 | 120,602,144.97 | |
| General equipment | 45,557.02 | 35,565.46 | 1,916.23 | 8,075.33 | |
| Special equipment | 469,001,238.81 | 375,143,971.34 | 3,408,235.85 | 90,449,031.62 | |
| Subtotal | 663,241,707.44 | 427,796,867.63 | 24,385,587.89 | 211,059,251.92 |
(3) Fixed assets leased out under operating leases
Unit: RMB Yuan
| Items | Closing carrying amount |
| Buildings and structures | 32,365,638.71 |
| Subtotal | 32,365,638.71 |
(4) Fixed assets with certificate of titles being unsettled
Unit: RMB Yuan
| Items | Carrying amount | Reasons for unsettlement |
| Buildings and structures | 783,482,254.92 | Relevant procedures have not yet been completed. |
| Subtotal | 783,482,254.92 |
(5)Impairment testing of fixed assets
□Applicable √Not applicable
13. Construction in progress
Unit: RMB Yuan
| Items | Closing balance | Opening balance |
| Construction in progress | 912,349,768.88 | 1,621,882,507.56 |
| Total | 912,349,768.88 | 1,621,882,507.56 |
(1) Details
Unit: RMB Yuan
| Items | Closing balance | Opening balance | ||||
| Book balance | Provision for impairment | Carrying amount | Book balance | Provision for impairment | Carrying amount | |
| Shandong Industrial Park HA Project | 601,552,381.89 | 601,552,381.89 | ||||
| Daming Life and Health Industry Project | 54,993,665.48 | 54,993,665.48 | 180,316,245.04 | 180,316,245.04 | ||
| Items | Closing balance | Opening balance | ||||
| Book balance | Provision for impairment | Carrying amount | Book balance | Provision for impairment | Carrying amount | |
| Workshop 617 West Project | 40,846,076.50 | 40,846,076.50 | ||||
| Series Aldehyde Switching Production Project of 1500 tons in Workshop 615 | 62,897,287.60 | 62,897,287.60 | 41,051,446.96 | 41,051,446.96 | ||
| Project A4 | 303,813,822.78 | 303,813,822.78 | 232,798,676.59 | 232,798,676.59 | ||
| Annual production capacity of 300 tons of ketone technology reform and production expansion project | 30,141,232.47 | 30,141,232.47 | ||||
| Process and legitimacy project with annual production capacity of 0.02 million of glufosinate ammonium chloride | 43,907,037.16 | 43,907,037.16 | 29,410,485.13 | 29,410,485.13 | ||
| 311 Workshop Phase II VA Expansion Project | 25,128,612.00 | 25,128,612.00 | 21,645,004.53 | 21,645,004.53 | ||
| Public Multifunctional Productive Services Integrated Platform Construction Project | 59,797,642.57 | 59,797,642.57 | 37,345,453.89 | 37,345,453.89 | ||
| Project with an annual production capacity of 30 tons of Apolyester | 43,287,282.66 | 43,287,282.66 | ||||
| Multi-functional production workshop construction project | 78,277,973.72 | 78,277,973.72 | 65,875,103.23 | 65,875,103.23 | ||
| Other piecemeal projects | 283,533,727.57 | 283,533,727.57 | 297,613,118.67 | 297,613,118.67 | ||
| Total | 912,349,768.88 | 912,349,768.88 | 1,621,882,507.56 | 1,621,882,507.56 | ||
(2) Changes in significant projects
Unit: RMB Yuan
| Projects | Budgets RMB 0000 Yuan | Opening balance | Increase | Transferred to fixed assets | Other decrease | Closing balance | Accumulated input to budget（%） | Completion percentage（%） | Accumulated amount of borrowing cost capitalization | Including: Amount of borrowing cost capitalization in current period | Annual capitalization rate | Fund source |
| Shandong Industrial Park HA Project | 97,991.14 | 601,552,381.89 | 79,608,221.98 | 681,160,603.87 | 78.50 | 100 | Others | |||||
| Daming Life and Health Industry | 76,203.56 | 180,316,245.04 | 17,192,132.85 | 142,514,712.41 | 54,993,665.48 | 82.91 | 98 | 4,394,033.27 | Others |
| Projects | Budgets RMB 0000 Yuan | Opening balance | Increase | Transferred to fixed assets | Other decrease | Closing balance | Accumulated input to budget（%） | Completion percentage（%） | Accumulated amount of borrowing cost capitalization | Including: Amount of borrowing cost capitalization in current period | Annual capitalization rate | Fund source |
| Project | ||||||||||||
| Project A4 | 40,067.95 | 232,798,676.59 | 71,015,146.19 | 303,813,822.78 | 75.82 | 100 | Others | |||||
| 合计 | 214,262.65 | 1,014,667,303.52 | 167,815,501.02 | 823,675,316.28 | 358,807,488.26 | 4,394,033.27 |
(3) Impairment testing of construction in progress
□Applicable √Not applicable
14. Right-of-use assets
(1) Details
Unit: RMB Yuan
| Items | Buildings and structures | Total |
| I. Cost | ||
| 1.Opening balance | 8,430,844.79 | 8,430,844.79 |
| 2. Increase | 19,122.61 | 19,122.61 |
| (1) Leased in | 19,122.61 | 19,122.61 |
| 3. Decrease | ||
| 4.Closing balance | 8,449,967.40 | 8,449,967.40 |
| II. Accumulated depreciation | ||
| 1. Opening balance | 1,827,213.23 | 1,827,213.23 |
| 2. Increase | 963,876.97 | 963,876.97 |
| (1) Accrual | 963,876.97 | 963,876.97 |
| 3. Decrease | ||
| (1) Disposal | ||
| 4.Closing balance | 2,791,090.20 | 2,791,090.20 |
| III. Carrying amount | ||
| 1. Closing balance | 5,658,877.20 | 5,658,877.20 |
| 2. Opening balance | 6,603,631.56 | 6,603,631.56 |
(2) Impairment testing of right-of-use assets
□Applicable √Not applicable
15. Intangible assets
(1) Details
Unit: RMB Yuan
| Items | Land use right | Patent right | Non-patented technology | Software | Total |
| I. Cost | |||||
| 1. Opening balance | 2,539,212,600.22 | 37,310,535.25 | 65,368,458.25 | 69,814,952.59 | 2,711,706,546.31 |
| 2. Increase | 68,967.97 | 144,800,267.08 | 1,827,068.67 | 146,696,303.72 | |
| (1) Acquisition | 68,967.97 | 144,800,267.08 | 1,827,068.67 | 146,696,303.72 | |
| 3. Closing balance | 73,463.97 | 14,812.50 | 5,611.37 | 93,887.84 | |
| (1) Disposal | 73,463.97 | 14,812.50 | 5,611.37 | 93,887.84 | |
| 4.Closing balance | 2,539,208,104.22 | 37,295,722.75 | 210,168,725.33 | 71,636,409.89 | 2,858,308,962.19 |
| II. Accumulated amortization | |||||
| 1. Opening balance | 265,286,407.60 | 8,156,816.64 | 6,299,039.16 | 24,403,529.09 | 304,145,792.49 |
| 2. Increase | 25,158,939.14 | 1,488,231.21 | 2,934,242.34 | 3,007,187.96 | 32,588,600.65 |
| (1) Accrual | 25,158,939.14 | 1,488,231.21 | 2,934,242.34 | 3,007,187.96 | 32,588,600.65 |
| 3. Decrease | |||||
| (1) Disposal/ Scrapping | |||||
| 4. Closing balance | 290,445,346.74 | 9,645,047.85 | 9,233,281.50 | 27,410,717.05 | 336,734,393.14 |
| IV. Carrying amount | |||||
| 1. Closing balance | 2,248,762,757.48 | 27,650,674.90 | 200,935,443.83 | 44,225,692.84 | 2,521,574,569.05 |
| 2. Opening balance | 2,273,926,192.62 | 29,153,718.61 | 59,069,419.09 | 45,411,423.50 | 2,407,560,753.82 |
At the balance sheet date, intangible assets formed through internal research and development account for 0.00% of total intangibleassets.
16. Goodwill
(1) Cost
Unit: RMB Yuan
| Investees or events resulting in goodwill | Opening balance | Increase | Decrease | Closing balance | ||
| Business combination | Translation reserve | Disposal | Translation reserve | |||
| Bardoterminal GmbH | 2,259,627.83 | 2,259,627.83 | ||||
| NHU/CHR.OLESEN LATIN AMERICA A/S | 3,622,704.97 | 3,622,704.97 | ||||
| Total | 5,882,332.80 | 5,882,332.80 | ||||
(2) Provision for impairment
Unit: RMB Yuan
| Investees or events resulting in goodwill | Opening balance | Increase | Decrease | Closing balance | ||
| Business combination | Translation reserve | Disposal | Translation reserve | |||
| Bardoterminal GmbH | 2,259,627.83 | 2,259,627.83 | ||||
| Total | 2,259,627.83 | 2,259,627.83 | ||||
(3) Information about the asset group or combination of asset groups in which goodwill is located
| Categories | Composition and basis of the asset group or portfolio to which it belongs | Operating segments and basis | Consistency with prior years |
| Bardoterminal GmbH | Offshore self-accounting warehousing and logistics companies, which management recognises as an asset group in its entirety from the point of acquisition | Independent warehousing and logistics company | Yes |
| NHU/CHR.OLESEN LATIN AMERICA A/S | Foreign self-accounting sales entities, which management identifies as an asset group in its entirety from the point of acquisition | Independent sales agents | Yes |
(4) Specific determination of recoverable amount
The recoverable amount is determined as fair value less costs of disposal.
□Applicable √Not applicable
Recoverable amount is determined as the present value of the expected future cash flows
√Applicable □Not applicable
Unit: RMB Yuan
| Items | Amount | recoverable amount | Impairment amount | Years of the projection period | Key parameters for the forecast period | Key parameters for the stabilisation period | Basis for determining key parameters for the stabilisation period |
| Bardoterminal GmbH | 3,167,484.69 | 114,007,846.23 | Projections of expected future cash flows are based on financial projections for the most recent five years approved by management. The stabilisation period is based on 20 years. | Bardoterminal GmbH was acquired in 2017 and the company's business is gradually maturing in size over the period 2017 to 2022, with an annual business growth rate of 0 per cent from the forecast period to the stabilisation period, a gross margin of 35 per cent and an expense ratio of 22.5 per cent. | 5%，The discount rate is commensurate with the corresponding macro, industry, geographic, market-specific and market-entity-specific risk factors, and is consistent with future net cash flows on a pre-tax basis. | ||
| NHU/CHR.OLESEN LATIN AMERICA A/S | 47,096,504.75 | 285,866,835.72 | NHU/CHR.OLESEN LATIN AMERICA A/S was acquired in 2022, the company's business is gradually maturing in size between 2022 and 2028, with revenue growth rates of 15% in 2024, 19% in 2025-2026, and 5% in 2027-2028; the stabilised revenue growth rate is 0%, and the company's Gross profit margin of 4.5 per cent, expense ratio of 2.5 per cent. | 13%，The discount rate is commensurate with the corresponding macro, industry, geographic, market-specific and market-entity-specific risk factors, and is consistent with future net cash flows on a pre-tax basis. | |||
| Total | 50,263,989.44 | 399,874,681.95 | |||||
(5) Completion of performance commitments and corresponding impairment of goodwill
Performance commitments existed at the time goodwill was formed and the reporting period or the previous period of thereporting period was within the performance commitment period
□Applicable √Not applicable
17. Long-term prepayments
Unit: RMB Yuan
| Items | Opening balance | Increase | Amortization | Other decrease | Closing balance |
| Decoration fees | 6,343,215.51 | 1,955,235.25 | 4,387,980.26 | ||
| Catalysts | 5,354,746.21 | 2,500,000.00 | 3,724,542.80 | 4,130,203.41 | |
| Institute fees | 2,710,603.08 | 2,710,603.08 | |||
| Total | 11,697,961.72 | 5,210,603.08 | 5,679,778.05 | 11,228,786.75 |
18. Deferred tax assets and deferred tax liabilities
(1) Deferred tax assets before offset
Unit: RMB Yuan
| Items | Closing balance | Opening balance | ||
| Deductible temporary difference | Deferred tax assets | Deductible temporary difference | Deferred tax assets | |
| Provision for impairment of assets | 80,637,611.91 | 13,134,329.96 | 71,881,471.48 | 11,135,696.68 |
| Unrealized profit from internal transactions | 121,173,945.85 | 20,656,497.00 | 71,231,525.39 | 10,684,728.85 |
| Deferred income | 172,206,171.83 | 25,830,925.78 | 193,224,271.51 | 28,983,640.72 |
| Difference in depreciation of fixed assets | -832,892.27 | -124,933.84 | 287,023.76 | 43,053.56 |
| Lease liabilities | 2,658,626.07 | 398,793.91 | 2,822,404.05 | 423,360.61 |
| Total | 375,843,463.39 | 59,895,612.81 | 339,446,696.19 | 51,270,480.42 |
(2) Deferred tax liabilities before offset
Unit: RMB Yuan
| Items | Closing balance | Opening balance | ||
| Taxable temporary difference | Deferred tax liabilities | Taxable temporary difference | Deferred tax liabilities | |
| Difference due to one-off pre-tax deduction of fixed assets | 1,627,262,408.99 | 261,686,219.79 | 1,575,781,538.31 | 247,043,712.25 |
| Profit before tax of NHU (Hong Kong) Trading Co., Ltd. | 229,024,007.07 | 34,353,601.06 | 164,156,999.23 | 24,623,549.88 |
| usufructuary assets | 2,556,875.40 | 383,531.31 | 2,630,791.48 | 394,618.72 |
| Items | Closing balance | Opening balance | ||
| Changes in fair value of trading financial instruments, derivative financial instruments | 934,443.21 | 233,610.80 | 934,443.21 | 233,610.80 |
| Total | 1,859,777,734.67 | 296,656,962.96 | 1,743,503,772.23 | 272,295,491.65 |
(3) Deferred tax assets or liabilities after offset
Unit: RMB Yuan
| Items | Closing balance of deferred tax assets offset by deferred tax liabilities | Closing balance of deferred tax assets/ liabilities after offset | Opening balance of deferred tax assets offset by deferred tax liabilities | Opening balance of deferred tax assets/ liabilities after offset |
| Deferred tax assets | 55,052,098.04 | 4,843,514.77 | 50,620,401.24 | 650,079.18 |
| Deferred tax liabilities | 55,052,098.04 | 241,604,864.92 | 50,620,401.24 | 221,675,090.41 |
(4) Details of unrecognized deferred tax assets
Unit: RMB Yuan
| Items | Closing balance | Opening balance |
| Deductible temporary difference | 156,818,216.64 | 436,744,796.84 |
| Deductible losses | 2,874,857,029.72 | 3,044,096,175.08 |
| Total | 3,031,675,246.36 | 3,480,840,971.92 |
(5) Maturity years of deductible losses of unrecognized deferred tax assets
Unit: RMB Yuan
| Maturity years | Closing balance | Opening balance | Remarks |
| Year 2027 | 4,380,243.82 | ||
| Year 2028 | 560,199,090.37 | 34,126,279.57 | |
| Year 2029 | 502,457,474.51 | 68,271,533.21 | |
| Year 2030 | 189,818,992.65 | 232,539,024.92 | |
| Year 2031 | 233,378,345.64 | 284,461,823.88 | |
| Year 2032 | 159,969,062.01 | 1,081,974,270.06 | |
| Year 2033 | 603,379,732.81 | 1,338,342,999.62 | |
| Year 2034 | 625,654,331.73 | ||
| Total | 2,874,857,029.72 | 3,044,096,175.08 |
19. Other non-current assets
Unit: RMB Yuan
| Items | Closing balance | Opening balance | ||||
| Book balance | Provision for impairment | Carrying amount | Book balance | Provision for impairment | Carrying amount | |
| Pollution emission trading fees | 13,851,533.98 | 13,851,533.98 | 15,360,572.70 | 15,360,572.70 | ||
| Payments for coal quota | 77,696,000.00 | 77,696,000.00 | 78,962,800.00 | 78,962,800.00 | ||
| Prepayments for long-term assets | 79,346,506.21 | 79,346,506.21 | 43,789,431.19 | 43,789,431.19 | ||
| Total | 170,894,040.19 | 170,894,040.19 | 138,112,803.89 | 138,112,803.89 | ||
20. Restrictions on assets as of the end of the reporting period
Unit: RMB Yuan
| Items | Closing balance | Opening balance | ||||||
| Book balance | Carrying amount | Type of restriction | Restrictions | Book balance | Carrying amount | Type of restriction | Restrictions | |
| Cash and bank balances | 71,456,549.13 | 71,456,549.13 | pledges | Banker's acceptance deposit | 96,790,731.68 | 96,790,731.68 | pledges | Banker's acceptance deposit |
| Notes receivable | 32,594,214.73 | 32,594,214.73 | pledges | Opening a pledge of banker's acceptances | 94,097,743.14 | 94,097,743.14 | pledges | Opening a pledge of banker's acceptances |
| Fixed assets | 94,874,505.48 | 77,901,231.39 | collateral | Mortgage to a bank for the purpose of obtaining a loan | 97,257,595.52 | 81,371,634.23 | collateral | Mortgage to a bank for the purpose of obtaining a loan |
| Intangible assets | 10,042,866.95 | 10,042,866.95 | collateral | Mortgage to a bank for the purpose of obtaining a loan | 10,301,747.64 | 10,301,747.64 | collateral | Mortgage to a bank for the purpose of obtaining a loan |
| Receivables financing | 174,672,943.58 | 174,672,943.58 | pledges | Opening a pledge of banker's acceptances | 143,872,489.15 | 143,872,489.15 | pledges | Opening a pledge of banker's acceptances |
| Total | 383,641,079.87 | 366,667,805.78 | 442,320,307.13 | 426,434,345.84 | ||||
21. Short-term borrowings
(1) Details on categories
Unit: RMB Yuan
| Items | Closing balance | Opening balance |
| Guaranteed borrowings | 45,750,198.04 | 12,686,706.84 |
| Credit borrowings | 1,531,088,314.27 | 1,223,001,356.06 |
| Total | 1,576,838,512.31 | 1,235,688,062.90 |
22. Notes payable
Unit: RMB Yuan
| Categories | Closing balance | Opening balance |
| Bank acceptance | 307,717,300.33 | 349,347,472.36 |
| Total | 307,717,300.33 | 349,347,472.36 |
23. Accounts payable
(1) Details
Unit: RMB Yuan
| Items | Closing balance | Opening balance |
| Materials and labor costs | 950,985,900.65 | 692,476,954.09 |
| Payments for engineering and equipment | 795,018,240.32 | 1,238,481,643.96 |
| Total | 1,746,004,140.97 | 1,930,958,598.05 |
24. Other payables
Unit: RMB Yuan
| Items | Closing balance | Opening balance |
| Other payables | 167,570,834.36 | 53,671,773.90 |
| Total | 167,570,834.36 | 53,671,773.90 |
1) Categorized by nature
Unit: RMB Yuan
| Items | Closing balance | Opening balance |
| Security deposits | 17,545,965.92 | 22,235,033.12 |
| Unpaid expenses payable | 6,399,080.24 | 12,568,235.33 |
| Temporary receipts payable | 4,830,313.96 | 13,765,955.47 |
| Earnest money for housing purchase (Boao NHU Resort Center) | 600,000.00 | |
| Call loans | 8,536,895.76 | |
| Others | 130,258,578.48 | 4,502,549.98 |
| Total | 167,570,834.36 | 53,671,773.90 |
25. Contract liabilities
Unit: RMB Yuan
| Items | Closing balance | Opening balance |
| Payments for goods received in advance | 174,322,469.67 | 251,008,240.97 |
| Total | 174,322,469.67 | 251,008,240.97 |
26. Employee benefits payable
(1) Details
Unit: RMB Yuan
| Items | Opening balance | Increase | Decrease | Closing balance |
| I. Short-term employee benefits | 418,273,203.88 | 1,010,136,491.17 | 1,144,102,055.15 | 284,307,639.90 |
| II. Post-employment benefits – defined contribution plan | 65,071,491.46 | 65,071,491.46 | ||
| Total | 418,273,203.88 | 1,075,207,982.63 | 1,209,173,546.61 | 284,307,639.90 |
(2) Details of short-term employee benefits
Unit: RMB Yuan
| Items | Opening balance | Increase | Decrease | Closing balance |
| 1. Wage, bonus, allowance and subsidy | 393,259,909.40 | 883,502,285.82 | 1,016,690,832.88 | 260,071,362.34 |
| 2. Employee welfare fund | 55,762,488.65 | 55,762,488.65 | ||
| 3. Social insurance premium | 33,963,886.10 | 33,963,886.10 | ||
| Including: Medicare premium | 29,373,359.63 | 29,373,359.63 | ||
| Occupational injuries premium | 4,256,297.16 | 4,256,297.16 | ||
| Maternity premium | 334,229.31 | 334,229.31 | ||
| 4. Housing provident fund | 31,858,031.18 | 31,858,031.18 | ||
| 5. Trade union fund and employee education fund | 25,013,294.48 | 5,049,799.42 | 5,826,816.34 | 24,236,277.56 |
| Total | 418,273,203.88 | 1,010,136,491.17 | 1,144,102,055.15 | 284,307,639.90 |
(3) Details of defined contribution plan
Unit: RMB Yuan
| Items | Opening balance | Increase | Decrease | Closing balance |
| 1. Basic endowment insurance premium | 62,772,606.11 | 62,772,606.11 | ||
| 2. Unemployment insurance premium | 2,298,885.35 | 2,298,885.35 | ||
| Total | 65,071,491.46 | 65,071,491.46 |
27. Taxes and rates payable
Unit: RMB Yuan
| Items | Closing balance | Opening balance |
| VAT | 36,985,031.54 | 25,412,719.25 |
| Enterprise income tax | 276,012,168.64 | 205,149,607.58 |
| Individual income tax withheld for tax | 3,441,658.62 | 12,600,229.27 |
| Items | Closing balance | Opening balance |
| authorities | ||
| Urban maintenance and construction tax | 5,799,066.50 | 2,768,413.70 |
| Land appreciation tax | 4,185,749.32 | 2,052,563.31 |
| Housing property tax | 7,702,107.10 | 19,557,360.54 |
| Land use tax | 5,570,264.77 | 18,825,864.81 |
| Education surcharge (local education surcharge) | 15,427,321.94 | |
| Total | 339,696,046.49 | 301,794,080.40 |
28. Non-current liabilities due within one year
Unit: RMB Yuan
| Items | Closing balance | Opening balance |
| Long-term borrowings due within one year | 1,848,725,931.41 | 1,562,730,340.48 |
| Lease liabilities due within one year | 1,560,583.84 | 1,662,118.19 |
| Total | 1,850,286,515.25 | 1,564,392,458.67 |
29. Other current liabilities
Unit: RMB Yuan
| Items | Closing balance | Opening balance |
| Output VAT to be recognized | 18,929,551.34 | 17,260,124.76 |
| Total | 18,929,551.34 | 17,260,124.76 |
30. Long-term borrowings
(1) Categories
Unit: RMB Yuan
| Items | Closing balance | Opening balance |
| Mortgaged borrowings | 21,874,475.29 | 26,217,293.08 |
| Guaranteed borrowings | 628,607,666.66 | 748,822,433.32 |
| Credit borrowings | 5,901,011,879.25 | 6,046,603,468.18 |
| Total | 6,551,494,021.20 | 6,821,643,194.58 |
31. Lease liabilities
Unit: RMB Yuan
| Items | Closing balance | Opening balance |
| Unpaid lease payments | 5,379,712.29 | 6,464,449.62 |
| Add: Unrealized financing expenses | -1,080,464.68 | -1,224,313.19 |
| Total | 4,299,247.61 | 5,240,136.43 |
32. Deferred income
Unit: RMB Yuan
| Items | Opening balance | Increase | Decrease | Closing balance | Reasons for balance |
| Government grants | 1,065,586,274.49 | 50,570,300.00 | 67,954,853.18 | 1,048,201,721.31 | The Company received government grants related to assets, which were amortized based on the depreciation progress of corresponding assets. |
| Total | 1,065,586,274.49 | 50,570,300.00 | 67,954,853.18 | 1,048,201,721.31 |
33. Share capital
Unit: RMB Yuan
| Items | Opening balance | Movements（+、-） | Closing balance | ||||
| Issue of new shares | Bonus shares | Reserve transferred to shares | Others | Subtotal | |||
| Total shares | 3,090,907,356.00 | 3,090,907,356.00 | |||||
34. Capital reserve
Unit: RMB Yuan
| Items | Opening balance | Increase | Decrease | Closing balance |
| Share/capital premium | 3,334,992,617.92 | 3,334,992,617.92 | ||
| Other capital reserve | 278,352,867.21 | 278,352,867.21 | ||
| Total | 3,613,345,485.13 | 3,613,345,485.13 |
35. Treasury shares
Unit: RMB Yuan
| Items | Opening balance | Increase | Decrease | Closing balance |
| Treasury shares | 500,059,711.25 | 500,059,711.25 | ||
| Total | 500,059,711.25 | 500,059,711.25 |
36.Other comprehensive income (OCI)
Unit: RMB Yuan
| Items | Opening balance | Current period cumulative | Closing balance | |||||
| Current period cumulative before income tax | Less: OCI previously recognized but transferred to profit or loss in current period | Less: OCI previously recognized but transferred to retained earnings in current period | Less: Income tax | Attributable to parent company | Attributable to non-controlling shareholders | |||
| Items not to be reclassified subsequently to profit or loss | 103,920,732.85 | -768,510.72 | 2,144,278.96 | -2,912,789.68 | 106,065,011.81 | |||
| Items | Opening balance | Current period cumulative | Closing balance | |||||
| Current period cumulative before income tax | Less: OCI previously recognized but transferred to profit or loss in current period | Less: OCI previously recognized but transferred to retained earnings in current period | Less: Income tax | Attributable to parent company | Attributable to non-controlling shareholders | |||
| Including: Other comprehensive income to be transferred to profit or loss under equity method | 506,954.43 | 506,954.43 | ||||||
| Translation reserves | 103,413,778.42 | -768,510.72 | 2,144,278.96 | -2,912,789.68 | 105,558,057.38 | |||
| Total | 103,920,732.85 | -768,510.72 | 2,144,278.96 | -2,912,789.68 | 106,065,011.81 | |||
37. Special reserve
Unit: RMB Yuan
| Items | Opening balance | Increase | Decrease | Closing balance |
| Work safety fund | 60,860,818.76 | 41,724,799.37 | 11,558,031.03 | 91,027,587.10 |
| Total | 60,860,818.76 | 41,724,799.37 | 11,558,031.03 | 91,027,587.10 |
Other remarks, including remarks on current movements and reasons for movements:
According to the "enterprise safety production costs and the use of management practices," the production and storage of dangerousgoods enterprises based on the actual business income of the previous year, the adoption of the regressive approach to the averagemonthly withdrawal in accordance with the following standards: 1) operating income of up to 10 million yuan, in accordance with
4.5%; 2) operating income of more than 10 million yuan to 100 million yuan, in accordance with 2.25% extraction; 3) operatingincome of more 100 million to 1 billion yuan, in accordance with 0.55% extraction; 4) 0.2% for the part of business incomeexceeding RMB 1 billion.According to the " Electricity production and supply enterprises," the production and storage of dangerous goods enterprises basedon the actual business income of the previous year, the adoption of the regressive approach to the average monthly withdrawal inaccordance with the following standards: 1) operating income of up to 10 million yuan, in accordance with 3%; 2) operating incomeof more than 10 million yuan to 100 million yuan, in accordance with 1.5% extraction; 3) 0.8% for the part of business incomeexceeding 100 million to 1 billion; 4) 0.6% for the part of business income exceeding RMB 1 billion.
38. Surplus reserve
Unit: RMB Yuan
| Items | Opening balance | Increase | Decrease | Closing balance |
| Statutory surplus reserve | 1,545,453,678.00 | 1,545,453,678.00 | ||
| Total | 1,545,453,678.00 | 1,545,453,678.00 |
39. Undistributed profit
Unit: RMB Yuan
| Items | Current period cumulative | Preceding period comparative |
| Unallocated earnings at the end of the previous period before adjustment | 16,890,233,961.50 | 15,823,725,913.44 |
| Adjustments to total unappropriated earnings at the beginning of the period (increase +, | 18,898.47 |
| Items | Current period cumulative | Preceding period comparative |
| decrease -) | ||
| Adjustment to unappropriated earnings at the beginning of the period | 16,890,233,961.50 | 15,823,744,811.91 |
| Add: Net profit attributable to owners of the parent company | 2,204,361,642.96 | 2,704,238,767.54 |
| Less: Appropriation of statutory surplus reserve | 101,038,777.95 | |
| Dividend payable on ordinary shares | 1,383,039,756.00 | 1,536,710,840.00 |
| Closing balance | 17,711,555,848.46 | 16,890,233,961.50 |
According to the profit distribution plan for the year 2023 resolved at the annual general meeting of the Company for the year2023, based on the total share capital of 3,090,907,356 excluding the repurchased shares of 17,485,676 shares, 3,073,421,680shares, a cash dividend of RMB4.50 (tax included) per 10 shares will be paid to all shareholders, making a total ofRMB1,383,039,756.00 yuan.
40. Operating revenue/Operating cost
Unit: RMB Yuan
| Items | Current period cumulative | Preceding period comparative | ||
| Revenue | Cost | Revenue | Cost | |
| Main operations | 9,724,806,954.17 | 6,107,204,399.47 | 7,320,741,964.94 | 4,925,581,429.30 |
| Other operations | 119,905,260.19 | 84,174,661.90 | 97,772,611.15 | 63,952,403.65 |
| Total | 9,844,712,214.36 | 6,191,379,061.37 | 7,418,514,576.09 | 4,989,533,832.95 |
| Including: Revenue from contracts with customers | 9,840,985,911.28 | 6,191,168,443.70 | 7,416,241,598.70 | 4,989,358,403.24 |
Details of revenue:
Unit: RMB Yuan
| Categories of contracts | Revenue | Cost |
| By product | ||
| Including: | ||
| Nutrition | 6,680,260,846.33 | 4,284,597,858.42 |
| Aroma Chemicals | 1,924,696,068.19 | 968,275,425.04 |
| New materials | 722,250,116.77 | 519,394,694.87 |
| Others | 513,778,879.99 | 418,900,465.37 |
| Subtotal | 9,840,985,911.28 | 6,191,168,443.70 |
| By operating region | ||
| Including: | ||
| Domestic | 4,400,582,196.98 | 2,828,412,768.87 |
| Overseas | 5,440,403,714.30 | 3,362,755,674.83 |
| Categories of contracts | Revenue | Cost |
| Subtotal | 9,840,985,911.28 | 6,191,168,443.70 |
| By revenue recognition time | ||
| Including: | ||
| Goods (transferred at a point in time) | 9,840,985,911.28 | 6,191,168,443.70 |
| Subtotal | 9,840,985,911.28 | 6,191,168,443.70 |
| By sales channel | ||
| Including: | ||
| Direct sales | 7,515,773,318.83 | 4,671,712,548.49 |
| Agent sales | 2,325,212,592.45 | 1,519,455,895.21 |
| Subtotal | 9,840,985,911.28 | 6,191,168,443.70 |
Information related to transaction price allocated to the remaining performance obligations:
As of June 30, 2024 revenue corresponding to performance obligations for which the Company has entered into contracts but notyet performed or fulfilled amounted to 2,051.31 million yuan, of which, 2,051.31 million yuan is expected to be recognized asrevenue in 2024.
41. Taxes and surcharges
Unit: RMB Yuan
| Items | Current period cumulative | Preceding period comparative |
| Urban maintenance and construction tax | 27,950,701.13 | 16,139,986.76 |
| Education surcharge (local education surcharge) | 21,044,886.66 | 12,568,962.34 |
| Housing property tax | 17,957,390.24 | 16,543,479.78 |
| Land use tax | 19,771,525.43 | 13,595,984.53 |
| Vehicle and vessel use tax | 27,613.13 | 31,354.61 |
| non-residential property | 6,121,701.84 | 6,523,091.10 |
| Environmental protection tax | 1,010,089.72 | 994,239.44 |
| Land appreciation tax | 98,666.67 | |
| Total | 93,982,574.82 | 66,397,098.56 |
42. Administrative expenses
Unit: RMB Yuan
| Items | Current period cumulative | Preceding period comparative |
| Employee benefits | 147,795,992.48 | 134,360,487.91 |
| Depreciation, amortization of intangible assets | 57,880,982.28 | 55,032,882.01 |
| Office expenses, business traveling expenses | 14,857,158.93 | 18,001,839.38 |
| Business entertainment expenses | 10,334,287.75 | 10,453,876.07 |
| consultancy fee | 8,965,176.43 | 9,344,412.68 |
| Insurance premiums | 8,250,263.26 | 7,863,383.20 |
| Long-term stoppage losses | 18,229,044.65 | |
| Others | 29,255,051.75 | 9,589,569.92 |
| Total | 295,567,957.53 | 244,646,451.17 |
43. Selling expenses
Unit: RMB Yuan
| Items | Current period cumulative | Preceding period comparative |
| Employee benefits | 39,905,704.51 | 30,266,930.02 |
| Sales commission and customs declaration charges | 10,294,553.22 | 16,644,358.83 |
| Office expenses, business traveling expenses | 10,531,658.41 | 9,598,115.80 |
| Advertising and promotion expenses, business entertainment expenses | 7,467,376.85 | 5,805,395.37 |
| Others | 6,670,288.40 | 4,626,570.78 |
| Total | 74,869,581.39 | 66,941,370.80 |
44. R&D expenses
Unit: RMB Yuan
| Items | Current period cumulative | Preceding period comparative |
| Employee benefits | 212,938,383.40 | 199,709,646.94 |
| Direct input | 198,007,999.74 | 150,730,396.75 |
| Depreciation, amortization of intangible assets | 43,345,244.55 | 38,536,030.81 |
| Outsourcing expenses | 6,414,946.81 | 3,267,672.12 |
| Office expenses, business traveling expenses | 4,938,593.21 | 4,840,225.31 |
| Others | 15,316,556.43 | 19,491,419.66 |
| Total | 480,961,724.14 | 416,575,391.59 |
45. Financial expenses
Unit: RMB Yuan
| Items | Current period cumulative | Preceding period comparative |
| Interest expenses | 143,713,361.26 | 163,988,612.81 |
| Less: Interest income | 67,461,973.58 | 78,203,398.06 |
| Losses on foreign exchange (or less: gains) | -18,026,719.38 | -132,095,878.10 |
| Others | 12,826,671.96 | 9,148,237.96 |
| Total | 71,051,340.26 | -37,162,425.39 |
46. Other income
Unit: RMB Yuan
| Items | Current period cumulative | Preceding period comparative |
| Government grants related to assets | 67,954,853.18 | 63,691,888.18 |
| Government grants related to income | 61,039,443.38 | 37,629,789.92 |
| Refund of handling fees for withholding individual income tax | 1,220,991.72 | 1,525,545.35 |
| Total | 130,215,288.28 | 102,847,223.45 |
47. Gains on changes in fair value
Unit: RMB Yuan
| Items | Current period cumulative | Preceding period comparative |
| Held-for-trading financial assets | 11,140,363.10 | 1,735,988.41 |
| Including: Gains on changes in fair value arising from financial assets classified as at fair value through profit or loss | 11,140,363.10 | 1,735,988.41 |
| Held-for-trading financial liabilities | -15,586,223.59 | -13,004,458.11 |
| Including: Gains on changes in fair value arising from financial liabilities classified as at fair value through profit or loss | -15,586,223.59 | -13,004,458.11 |
| Total | -4,445,860.49 | -11,268,469.70 |
48. Investment income
Unit: RMB Yuan
| Items | Current period cumulative | Preceding period comparative |
| Investment income from long-term equity investments under equity method | 25,496,597.50 | 34,855,314.27 |
| Investment income from disposal of long-term equity investments | 27,067,307.36 | |
| Investment income from disposal of financial instruments | -7,317,634.93 | -30,080.26 |
| Including: Financial assets classified as at fair value through profit or loss | -5,489,429.09 | 996,763.92 |
| Financial liabilities classified as at fair value through profit or loss | -1,828,205.84 | -1,026,844.18 |
| Investment income from bank financial products and structured deposits | 808,128.72 | 8,894,052.73 |
| Interest income from split loans | 180,613.89 | |
| Dividend income earned on investments in other equity instruments during the holding period | 1,500,000.00 | |
| Total | 47,554,398.65 | 43,899,900.63 |
49. Credit impairment loss
Unit: RMB Yuan
| Items | Current period cumulative | Preceding period comparative |
| Bad debts | -98,041,802.36 | 6,389,579.21 |
| Total | -98,041,802.36 | 6,389,579.21 |
50. Assets impairment loss
Unit: RMB Yuan
| Items | Current period cumulative | Preceding period comparative |
| Inventory write-down loss | -10,175,642.76 | -81,296,758.10 |
| Total | -10,175,642.76 | -81,296,758.10 |
51. Gains on asset disposal
Unit: RMB Yuan
| Items | Current period cumulative | Preceding period comparative |
| Gains on disposal of non-current assets | -1,128,442.54 | 13,545,778.16 |
| Total | -1,128,442.54 | 13,545,778.16 |
52. Non-operating revenue
Unit: RMB Yuan
| Items | Current period cumulative | Preceding period comparative | Amount included in non-recurring profit or loss |
| Indemnity income | 2,205,585.34 | 3,394,701.03 | 2,205,585.34 |
| Others | 167,960.12 | 182,141.54 | 167,960.12 |
| Total | 2,373,545.46 | 3,576,842.57 | 2,373,545.46 |
53. Non-operating expenditures
Unit: RMB Yuan
| Items | Current period cumulative | Preceding period comparative | Amount included in non-recurring profit or loss |
| Donation expenditures | 290,144.43 | 591,259.90 | 290,144.43 |
| Others | 3,507,489.38 | 1,027,741.48 | 3,507,489.38 |
| Total | 3,797,633.81 | 1,619,001.38 | 3,797,633.81 |
54. Income tax expenses
(1) Schedule of income tax expense
Unit: RMB Yuan
| Items | Current period cumulative | Preceding period comparative |
| Current period income tax expenses | 466,762,110.51 | 273,369,295.58 |
| Deferred income tax expenses | 15,736,338.92 | -22,086,097.75 |
| Total | 482,498,449.43 | 251,283,197.83 |
(2) Reconciliation of accounting profit to income tax expenses
Unit: RMB Yuan
| Items | Current period cumulative |
| Profit before tax | 2,699,453,825.28 |
| Income tax expenses based on statutory/applicable tax rate | 404,918,073.79 |
| Effect of different tax rate applicable to subsidiaries | 5,416,833.10 |
| Effect of prior income tax reconciliation | 12,171,153.76 |
| Effect of non-taxable income | -1,954,918.97 |
| Effect of non-deductible costs, expenses and losses | 3,975,997.51 |
| Effect of utilization of deductible losses not previously recognized as deferred tax assets | 130,486,731.81 |
| Effect of extra deduction of R&D expenses | -72,515,421.57 |
| Income tax expenses | 482,498,449.43 |
55. Other comprehensive income
Please refer to item VII 36 of this section for details.
56. Notes to items of the cash flow statement
(1) Cash related to operating activities
Other cash receipts related to operating activities
Unit: RMB Yuan
| Items | Current period cumulative | Preceding period comparative |
| Interest income from cash in bank | 67,372,735.75 | 77,998,992.00 |
| Receipt of government grants | 79,176,571.17 | 127,517,191.82 |
| Recovery of temporary borrowings and security deposits | 500.00 | 1,665,000.00 |
| Other receipts and net current accounts | 7,116,537.72 | 4,596,065.33 |
| Total | 153,666,344.64 | 211,777,249.15 |
Other cash payments related to operating activities
Unit: RMB Yuan
| Items | Current period cumulative | Preceding period comparative |
| R&D expenditures in the form of cash | 7,704,883.00 | 28,971,437.79 |
| Office expenses and business traveling expenses | 51,265,858.74 | 24,331,184.10 |
| Advertising and promotion expenses, business entertainment expenses | 14,130,735.80 | 13,968,143.32 |
| Sales commission and customs declaration charges | 8,404,749.45 | 16,317,917.34 |
| Insurance expenses | 1,140,556.20 | 2,686,385.45 |
| Other payments and net current accounts | 118,084,761.67 | 97,358,958.00 |
| Total | 200,731,544.86 | 183,634,026.00 |
(2) Cash related to investing activities
Other cash receipts related to investing activities
Unit: RMB Yuan
| Items | Current period cumulative | Preceding period comparative |
| Redemption of financial products | 145,000,000.00 | 720,000,000.00 |
| Receipt of demobilized loans and interest | 20,938,810.13 | |
| Total | 145,000,000.00 | 740,938,810.13 |
Other cash payments related to investing activities
Unit: RMB Yuan
| Items | Current period cumulative | Preceding period comparative |
| Payments for purchase of financial products and structured deposits | 250,000,000.00 | |
| Total | 250,000,000.00 |
(3) Cash related to financing activities
Other cash payments related to financing activities
Unit: RMB Yuan
| Items | Current period cumulative | Preceding period comparative |
| Payments for bank financing handling charges | 807,362.26 | 1,206,719.90 |
| Payments of handling charges for issuing letters of guarantee for borrowings | 200,900.43 | |
| Total | 807,362.26 | 1,407,620.33 |
Changes in liabilities related to financing activities
√Applicable □ Not applicable
Unit: RMB Yuan
| Items | Opening balance | Increase | Decrease | Closing balance | ||
| Cash movements | Non-cash changes | Cash movements | Non-cash changes | |||
| Short-term borrowings | 1,235,688,062.90 | 1,020,762,913.11 | 15,252,929.95 | 694,865,393.65 | 1,576,838,512.31 | |
| Long-term borrowings(including long-term loans due within one year) | 8,384,373,535.06 | 1,261,000,000.00 | 122,672,559.21 | 1,367,826,141.66 | 8,400,219,952.61 | |
| Lease liabilities(including lease liabilities due within one year) | 6,902,254.62 | 1,042,423.17 | 5,859,831.45 | |||
| dividend payable | 1,383,039,756.00 | 1,383,039,756.00 | ||||
| Other accounts payable | 14,858,932.78 | 103,669,125.77 | 8,921,359.16 | 96,239,489.67 | 13,367,209.72 | |
| Total | 9,641,822,785.36 | 2,385,432,038.88 | 1,520,965,245.16 | 3,455,695,073.64 | 96,239,489.67 | 9,996,285,506.09 |
(4) Net presentation of cash flows
| Items | Basis for net presentation | Financial impact |
| Other cash receipts related to investing activities | The cash flows related to the Company's investment business are the cash inflows and outflows of fast-turnover, large-amount and short-term projects, and the presentation of the above cash flows on a net basis is more indicative of their impact on the Company's ability to pay and solvency, and is more useful for evaluating the Company's ability to pay and solvency, and analysing the Company's future cash flows, therefore the Company has presented the cash flows related to the above business on a net basis. | 145,000,000.00 |
57. Supplement information to the cash flow statement
(1) Supplement information to the cash flow statement
Unit: RMB Yuan
| Supplement information | Current period cumulative | Preceding period comparative |
| 1. Reconciliation of net profit to cash flows from operating activities: | ||
| Net profit | 2,216,955,375.85 | 1,496,374,753.42 |
| Add: Provision for assets impairment loss | 108,217,445.12 | 74,907,178.89 |
| Depreciation of fixed assets, oil and gas assets, productive biological assets | 1,058,316,863.50 | 803,970,477.86 |
| Depreciation of right-of-use assets | 963,876.97 | 360,873.71 |
| Amortization of intangible assets | 32,588,600.65 | 26,371,053.50 |
| Amortization of long-term prepayments | 5,679,778.05 | 3,834,293.78 |
| Losses on disposal of fixed assets, intangible assets and other long-term assets (Less: gains) | 1,128,442.54 | -13,545,778.16 |
| Fixed assets retirement loss (Less: gains) | ||
| Losses on changes in fair value (Less: gains) | 4,445,860.49 | 11,268,469.70 |
| Financial expenses (Less: gains) | 74,353,659.15 | -36,396,626.05 |
| Investment losses (Less: gains) | -47,554,398.65 | -43,899,900.63 |
| Decrease of deferred tax assets (Less: increase) | -4,193,435.59 | -7,849,564.21 |
| Increase of deferred tax liabilities (Less: decrease) | 19,929,774.51 | -14,236,533.54 |
| Decrease of inventories (Less: increase) | 102,731,329.68 | -433,678,248.93 |
| Decrease of operating receivables (Less: increase) | -961,441,855.30 | 351,542,987.52 |
| Increase of operating payables (Less: decrease) | -473,797,257.62 | -983,460,814.93 |
| Others | ||
| Net cash flows from operating activities | 2,138,324,059.35 | 1,235,562,621.93 |
| 2. Significant investing and financing activities not related to cash receipts and payments: | ||
| Conversion of debt into capital | ||
| Convertible bonds due within one year |
| Supplement information | Current period cumulative | Preceding period comparative |
| Fixed assets leased in under finance leases | ||
| 3. Net changes in cash and cash equivalents: | ||
| Cash at the end of the period | 4,830,317,347.92 | 3,507,891,602.10 |
| Less: Cash at the beginning of the period | 4,446,570,415.30 | 5,151,841,931.86 |
| Add: Cash equivalents at the end of the period | ||
| Less: Cash equivalents at the beginning of the period | ||
| Net increase of cash and cash equivalents | 383,746,932.62 | -1,643,950,329.76 |
(2) Net cash received for disposal of subsidiaries during the period
Unit: RMB Yuan
| Items | amounts |
| Cash or cash equivalents received in the period from disposal of subsidiaries during the period | 82,791,000.00 |
| Net cash received on disposal of subsidiaries | 82,791,000.00 |
(3) Composition of cash and cash equivalents
Unit: RMB Yuan
| Items | Closing balance | Opening balance |
| I. Cash | 4,830,317,347.92 | 4,446,570,415.30 |
| Including: Cash on hand | 25,690.31 | 21,747.98 |
| Cash in bank on demand for payment | 4,830,283,255.54 | 4,445,046,788.85 |
| Other cash and bank balances on demand for payment | 8,402.07 | 1,501,878.47 |
| II. Cash and cash equivalents at the end of the period | 4,830,317,347.92 | 4,446,570,415.30 |
(4) Restricted use but still cash and cash equivalents
Unit: RMB Yuan
| Items | Current period cumulative | Preceding period comparative | Reasons for remaining cash and cash equivalents |
| Cash and bank balances | 97,689,798.21 | 89,207,212.60 | Deposited overseas |
| 0.00 | 353,268,853.53 | Raised funds | |
| Total | 97,689,798.21 | 442,476,066.13 |
(5) Monetary funds other than cash and cash equivalents
Unit: RMB Yuan
| Items | Current period cumulative | Preceding period comparative | Reasons for not being cash and cash equivalents |
| Cash and bank balances | 55,388,324.90 | 77,905,369.24 | Banker's acceptance deposit |
| 1,641,394.48 | 12,048,779.84 | Letter of Credit Deposit | |
| 3,830,850.00 | 3,929,600.00 | customs Deposit |
| Items | Current period cumulative | Preceding period comparative | Reasons for not being cash and cash equivalents |
| 854,083.87 | 853,216.21 | Project works labor wage deposit | |
| 872,914.81 | 870,050.56 | Safety Construction deposit | |
| 661,888.24 | 661,215.83 | Water deposit | |
| 8,183,592.83 | 500,000.00 | Letter of Guarantee Deposit | |
| 23,500.00 | 22,500.00 | ETC Deposit | |
| Total | 71,456,549.13 | 96,790,731.68 |
58. Monetary items in foreign currencies
(1) Details
Unit: RMB Yuan
| Items | Closing balance in foreign currencies | Exchange rate | RMB equivalent at the end of the period |
| Cash and bank balances | 382,105,443.26 | ||
| Including: USD | 25,308,374.48 | 7.1268 | 180,367,723.24 |
| EUR | 22,600,141.86 | 7.6617 | 173,155,506.92 |
| HKD | 3,110,968.51 | 0.9127 | 2,839,318.74 |
| JPY | 186,470,611.00 | 0.0447 | 8,342,323.23 |
| GBP | 342,999.39 | 9.0430 | 3,101,743.48 |
| SGD | 477,979.67 | 5.2790 | 2,523,254.68 |
| BRL | 8,362,499.66 | 1.3005 | 10,875,152.96 |
| MXN | 2,044,970.46 | 0.3857 | 788,832.92 |
| PLN | 63,083.53 | 1.7689 | 111,587.09 |
| Accounts receivable | 2,819,288,005.50 | ||
| Including: USD | 330,993,185.00 | 7.1268 | 2,358,922,230.86 |
| EUR | 45,267,427.49 | 7.6617 | 346,825,449.27 |
| GBP | 529,959.34 | 9.0430 | 4,792,422.31 |
| BRL | 83,622,000.55 | 1.3005 | 108,747,903.06 |
| Other receivables | 50,824,998.98 | ||
| Including: USD | 10,265.00 | 7.1268 | 73,156.60 |
| EUR | 2,961,749.26 | 7.6617 | 22,692,034.31 |
| HKD | 31,700.00 | 0.9127 | 28,932.59 |
| BRL | 4,507,120.57 | 1.3005 | 5,861,510.30 |
| MXN | 56,431,009.55 | 0.3857 | 21,765,440.38 |
| SGD | 76,515.40 | 5.2790 | 403,924.80 |
| Long-term borrowings | 45,580,633.21 | ||
| Including: USD | 4,628,121.54 | 7.1268 | 32,983,696.59 |
| EUR | 732,662.73 | 7.6617 | 5,613,442.04 |
| DKK | 6,825,818.18 | 1.0231 | 6,983,494.58 |
| Accounts payable | 514,728,062.82 |
| Items | Closing balance in foreign currencies | Exchange rate | RMB equivalent at the end of the period |
| Including: USD | 47,621,384.86 | 7.1268 | 339,388,085.62 |
| EUR | 10,813,262.17 | 7.6617 | 82,847,970.78 |
| BRL | 70,881,476.17 | 1.3005 | 92,181,359.76 |
| MXN | 805,320.41 | 0.3857 | 310,646.66 |
| Other payables | 21,236,113.30 | ||
| Including: USD | 2,451,765.95 | 7.1268 | 17,473,245.57 |
| EUR | 465,110.36 | 7.6617 | 3,563,536.05 |
| HKD | 33,870.00 | 0.9127 | 30,912.47 |
| SGD | 31,903.62 | 5.2790 | 168,419.21 |
| Non-current liabilities due within one year | 7,367,965.75 | ||
| Including: EUR | 961,662.00 | 7.6617 | 7,367,965.75 |
| Long-term borrowings | 21,874,475.29 | ||
| Including: EUR | 2,855,042.00 | 7.6617 | 21,874,475.29 |
| Lease liabilities | 442,221.78 | ||
| Including: HKD | 106,492.90 | 0.9127 | 97,193.94 |
| BRL | 265,310.77 | 1.3005 | 345,027.84 |
(2) Remarks on overseas operations. For significant overseas operating entities, their main operating places,functional currencies and adoption basis shall be disclosed. Reasons for any changes in functional currencyshall also be disclosed.
√ Applicable □ Not applicable
NHU EUROPE GmbH is a holding subsidiary of the subsidiary NHU (Hong Kong) Trading Co., Ltd. with the holding proportionof 51%; Change of shareholding in NHU Performance Materials GmbH：from a wholly owned subsidiary of NHU (Hong Kong)Trading Ltd. to a subsidiary of NHU Singapore PTE. LTD. with the holding proportion of 85%, Bardoterminal GmbH is a wholly-owned subsidiary of NHU EUROPE GmbH. The above three entities are all located in Luneburg, Germany, with EUR asfunctional currency. NHU Singapore PTE. LTD. is a wholly-owned subsidiary of the Company. It is located in Singapore, withSGD as functional currencyNHU/Chr.Olesen Latin America A/S, with a shareholding ratio of 51%, located in Gentovt, Denmark, and the functional currencyis EUR; NHU/CHR.OLESEN BRASIL LTDA..is a wholly-owned subsidiary of NHU/Chr.Olesen Latin America A/S , located inSao Paulo, Brazil, and its functional currency is BRL; CHR. Olesen Mexico SAPI DE CV is a holding subsidiary of NHU/OlesenLatin America A/S, with a shareholding ratio of 87%. It is located in Cretaro, Mexico, and its functional currency is MXN.NHU Singapore PTE. LTD. is a wholly-owned subsidiary of the Company. It is located in Singapore, with SGD as functionalcurrency.
59. Leasing
(1) The Company as a les see
√ Applicable □ Not applicable
Variable lease payments not included in the measurement of lease liabilities
□Applicable √ Not applicable
Lease costs for short-term leases or low-value assets with simplified treatment
√ Applicable □ Not applicable
1) Information on right-to-use assets Please refer to item VII 14 of this section for details
2) The Company's accounting policies for short-term leases and leases of low-value assets Please refer to item V 27 of thissection for details. The amounts of short-term lease charges and lease charges for low-value assets recognized in profit or loss areas follows:
Unit: RMB Yuan
| Items | Current period Increase | Preceding period Decrease |
| Short-term rental costs | 8,166,223.97 | 3,538,563.64 |
| Total | 8,166,223.97 | 3,538,563.64 |
3) Current profit or loss and cash flows related to leases
Unit: RMB Yuan
| Items | Current period Increase | Preceding period Decrease |
| Interest expense on lease liabilities | 67,698.96 | 70,141.71 |
| Total cash outflows related to leases | 8,736,731.81 | 3,831,411.86 |
4) The maturity analysis of lease liabilities and the corresponding liquidity risk management Please refer to item XII 1 of thissection for details.
(2) The Company as lessor
Operating leases as lessor
√ Applicable □ Not applicable
Unit: RMB Yuan
| Items | Rental income | Of which: Income related to variable lease payments not included in lease receipts |
| Rental income | 3,726,303.08 | |
| Total | 3,726,303.08 |
Financial leases as lessor
□Applicable √ Not applicable
Undiscounted lease receipts for each of the next five years
□Applicable √ Not applicable
Operating lease assetsOperating lease inventory Please refer to item VII 13 of this section for details.
Fixed assets under operating leasesPlease refer to item VII 15 of this section for details.Future undiscounted lease receipts to be received under non-cancellable leases based on lease contracts with lessees
Unit: RMB Yuan
| Remaining term | Closing balance | Opening balance |
| First year | 127,522.95 | 349,330.00 |
| second year | 41,520.00 | |
| Total | 127,522.95 | 390,850.00 |
(3) Recognition of gains and losses on sales under finance leases as a manufacturer or distributor
□Applicable √ Not applicable
VIII. R&D expenses
Unit: RMB Yuan
| Items | Current period Increase | Preceding period Decrease |
| Employee benefits | 212,938,383.40 | 199,709,646.94 |
| Direct input | 198,007,999.74 | 150,730,396.75 |
| Depreciation, amortization of intangible assets | 43,345,244.55 | 38,536,030.81 |
| Outsourcing expenses | 6,414,946.81 | 3,267,672.12 |
| Office expenses, business traveling expenses | 4,938,593.21 | 4,840,225.31 |
| Others | 15,316,556.43 | 19,491,419.66 |
| Total | 480,961,724.14 | 416,575,391.59 |
| Of which: Expensed research and development expenditure | 480,961,724.14 | 416,575,391.59 |
IX. Changes in the scope of consolidation
1. Disposal of subsidiaries
Whether there were any transactions or events during the period in which control of subsidiaries was lost
√ Applicable □ Not applicable
Unit: RMB Yuan
| Name of Subsidiary | Disposal price at point of loss of control | Percentage of disposals at point of loss of control | Disposal at the point of loss of control | Point of loss of control | Basis for determining the point of loss of control | Difference between the disposal price and the share of net assets of the subsidiary at the level of the consolidated financial statements corresponding to the disposal of the investment | Percentage of remaining equity at date of loss of control | Carrying value of the remaining equity interest at the level of the consolidated financial statements at the date of loss of control | Fair value of the remaining equity interest at the level of the consolidated financial statements at the date of loss of control | Gains or losses arising from the remeasurement of the remaining equity at fair value | Method of determining the fair value of the remaining equity interest at the level of the consolidated financial statements at the date of loss of control and key assumptions | Amount of other comprehensive income related to equity investments in atomic companies transferred to investment profit or loss or retained earnings |
| Qionghai Boao Lidu Real Estate Co., Ltd. | 82,791,000.00 | 100.00% | offer for sale | 19 June ,2024 | Equity transfer agreement signed and in force | 28,770,508.00 | 0.00% | 54,020,492.00 | 82,791,000.00 | 28,770,508.00 | None | 0.00 |
Whether there is a step-by-step disposal of investments in subsidiaries through multiple transactions and loss of control during the period
□Applicable √ Not applicable
2. Changes in the scope of consolidation for other reasons
| Company names | Mode of acquisition of equity | Point of acquisition of equity |
| Tianjin NHU Materials Technology Co., Ltd. | investment establishment | June 7 , 2024 |
X. Interest in other entities
1. Interest in subsidiaries
(1) Composition of the group
Unit: RMB Yuan
| Subsidiaries | registered capital | Main operating place | Place of registration | Business nature | Holding proportion (%) | Acquisition method | |
| Direct | Indirect | ||||||
| NHU (Hong Kong) Trading Co., Ltd. | USD2.40millions | Hong Kong, China | Hong Kong, China | Commerce | 100.00% | Establishment | |
| Shandong NHU Amino-acids Co., Ltd. | 1,100million(yuan) | Weifang, Shandong | Weifang, Shandong | Manufacturing | 100.00% | Establishment | |
| Shandong NHU Pharmaceutical Co., Ltd. | 590million(yuan) | Weifang, Shandong | Weifang, Shandong | Manufacturing | 100.00% | Establishment | |
| Heilongjiang NHU Biotechnology Co., Ltd. | 1,000millions(yuan) | Suihua, Heilongjiang | Suihua, Heilongjiang | Manufacturing | 100.00% | Establishment | |
| Shandong NHU Vitamins Co., Ltd. [Note] | 500millions(yuan) | Suihua, Heilongjiang | Suihua, Heilongjiang | Manufacturing | 100.00% | Establishment | |
The percentage of shareholding in subsidiaries is different from the description of the percentage of voting rights:
[Note] The Company holds shares through Shandong NHU Holdings Co., Ltd.
2. Interests in joint arrangements or associates
(1) Aggregated financial information of insignificant joint ventures and associates
Unit: RMB Yuan
| Item | Closing balance/ Current period cumulative | Opening balance/ Preceding period comparative |
| Joint ventures: | ||
| Total carrying amount of investments | 356,189,413.08 | 216,166,978.49 |
| Total of the following by percentage of shareholding | ||
| -- Net profit | -15,649,565.41 | -3,169,284.18 |
| -- Total comprehensive income | -15,649,565.41 | -3,169,284.18 |
| Associates: | ||
| Total carrying value of investments | 505,818,929.42 | 480,978,221.59 |
| Total of the following by percentage of shareholding | ||
| -- Net profit | 39,911,718.06 | 46,985,604.13 |
| -- Other comprehensive income | 39,911,718.06 | 46,985,604.13 |
XI. Government grants
1. Government grants recognized at the end of the reporting period at the amount receivable
□Applicable √ Not applicable
Reasons for not receiving the projected amount of government grants at the projected point in time
□Applicable √ Not applicable
2. Liability items involving government grants
√ Applicable □ Not applicable
Unit: RMB Yuan
| Item | Opening balance | Increase | non-operating income | Decrease | other | Closing balance | Asset/revenue related |
| Deferred income | 1,065,586,274.49 | 50,570,300.00 | 67,954,853.18 | 1,048,201,721.31 | Asset-related | ||
| Total | 1,065,586,274.49 | 50,570,300.00 | 67,954,853.18 | 1,048,201,721.31 |
3. Government grants related to income
√ Applicable □Not applicable
Unit: RMB Yuan
| Item | Current period Increase | Preceding period Decrease |
| Government grants related to income | 128,994,296.56 | 101,321,678.10 |
XII. Risks related to financial instruments
1. Various types of risks arising from financial instruments
In risk management, the Company aims to seek the appropriate balance between the risks and benefits from its use offinancial instruments and to mitigate the adverse effects that the risks of financial instruments have on the Company’s financialperformance, so as to maximize the profits of shareholders and other equity investors. Based on such risk management objectives,the Company’s risk management policies are established to identify and analyze the risks faced by the Company, to set appropriaterisk limits and controls, and to monitor risks and adherence to limits on a timely and reliable basis.The Company has exposure to the following risks from its use of financial instruments, which mainly include: credit risk,liquidity risk, and market risk. The Management has deliberated and approved policies concerning such risks, and details are:
(I) Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing todischarge an obligation.
1. Credit risk management practice
(1) Evaluation method of credit risk
At each balance sheet date, the Company assesses whether the credit risk on a financial instrument has increasedsignificantly since initial recognition. When assessing whether the credit risk has increased significantly since initial recognition,the Company takes into account reasonable and supportable information, which is available without undue cost or effort, includingqualitative and quantitative analysis based on historical data, external credit risk rating, and forward-looking information. TheCompany determines the changes in default risk of financial instruments during the estimated lifetime through comparison of thedefault risk at the balance sheet date and the initial recognition date, on an individual basis or a collective basis.The Company considers the credit risk on a financial instrument has increased significantly when one or more of thefollowing qualitative and quantitative standards are met:
1) Quantitative standard mainly relates to the scenario in which, at the balance sheet date, the probability of default in theremaining lifetime has risen by more than a certain percentage compared with the initial recognition;
2) Qualitative standard mainly relates to significant adverse changes in the debtor’s operation or financial position, present orexpected changes in technology, market, economy or legal environment that will have significant adverse impact on the debtor’srepayment ability.
(2) Definition of default and credit-impaired assets
A financial instrument is defined as defaulted when one or more following events have occurred, of which the standard isconsistent with that for credit-impairment:
1) significant financial difficulty of the debtor;
2) a breach of binding clause of contract;
3) it is very likely that the debtor will enter bankruptcy or other financial reorganization;
4) the creditor of the debtor, for economic or contractual reasons relating to the debtor’s financial difficulty, having grantedto the debtor a concession(s) that the creditor would not otherwise consider.
2. Measurement of expected credit losses
The key factors in the measurement of expected credit loss include the probability of default, loss rate of default, andexposure to default risk. The Company develops a model of the probability of default, loss rate of default, and exposure to defaultrisk on the basis of quantitative analysis of historical data (e.g. counterparty rating, guarantee measures and collateral type,payment method, etc.) and forward-looking information.
3. Please refer to item VII 3、4、5、 and 7 of this section for details on the reconciliation table of opening balance andclosing balance of provision for losses of financial instrument.
4. Exposure to credit risk and concentration of credit risk
The Company’s credit risk is primarily attributable to cash and bank balances and receivables. In order to control such risks,the Company has taken the following measures:
(1) Cash and bank balances
The Company deposits its bank balances and other cash and bank balances in financial institutions with relatively high creditlevels, hence, its credit risk is relatively low.
(2) Receivables
The Company performs credit assessment on customers using credit settlement on a continuous basis. The Company selectscredible and well-reputed customers based on credit assessment result, and conducts ongoing monitoring on balance of receivables,to avoid significant risks in bad debts.
As the Company only conducts business with credible and well-reputed third parties, collateral is not required fromcustomers. The Company manages credit risk aggregated by customers. As of June 30, 2024, the Company has certainconcentration of credit risk, and 24.66% (December 31, 2023: 22.95%) of the total accounts receivable was due from the fivelargest customers of the Company. The Company held no collateral or other credit enhancement on balance of receivables.The maximum amount of exposure to credit risk of the Company is the carrying amount of each financial asset at the balancesheet.(II) Liquidity risk
Liquidity risk is the risk that the Company may encounter deficiency of funds in meeting obligations associated with cash or otherfinancial assets settlement, which is possibly attributable to failure in selling financial assets at fair value on a timely basis, or failurein collecting liabilities from counterparties of contracts, or early redemption of debts, or failure in achieving estimated cash flows.In order to control such risk, the Company comprehensively utilized financing tools such as notes settlement, bank borrowings, etc.and adopts long-term and short-term financing methods to optimize financing structures, and finally maintains a balance betweenfinancing sustainability and flexibility. The Company has obtained credit limit from several commercial banks to meet workingcapital requirements and expenditures.Financial liabilities classified based on remaining time period till maturity
Unit: RMB Yuan
| Items | June 30, 2024 | ||||
| Carrying amount | Contract amount not yet discounted | Within 1 year | 1-3 years | Over 3 years | |
| Bank borrowings | 9,977,058,464.92 | 10,421,547,524.48 | 3,766,596,651.36 | 6,462,057,074.80 | 192,893,798.32 |
| Notes payable | 307,717,300.33 | 307,717,300.33 | 307,717,300.33 | ||
| Accounts payable | 1,746,004,140.97 | 1,746,004,140.97 | 1,746,004,140.97 | ||
| Other payables | 167,570,834.36 | 167,570,834.36 | 167,570,834.36 | ||
| Lease liabilities | 5,859,831.45 | 7,204,764.08 | 1,825,051.79 | 2,251,236.09 | 3,128,476.20 |
| Subtotal | 12,204,210,572.03 | 12,650,044,564.22 | 5,989,713,978.81 | 6,464,308,310.89 | 196,022,274.52 |
(Continued)
Unit: RMB Yuan
| Items | December 31, 2023 | ||||
| Carrying amount | Contract amount not yet discounted | Within 1 year | 1-3 years | Over 3 years | |
| Bank borrowings | 9,620,061,597.96 | 10,115,809,381.27 | 3,052,860,592.80 | 6,305,307,508.57 | 757,641,279.90 |
| Notes payable | 349,347,472.36 | 349,347,472.36 | 349,347,472.36 | ||
| Accounts payable | 1,930,958,598.05 | 1,930,958,598.05 | 1,930,958,598.05 | ||
| Other payables | 53,671,773.90 | 53,671,773.90 | 53,671,773.90 | ||
| Lease liabilities | 6,902,254.62 | 8,401,587.43 | 1,937,137.81 | 3,097,878.18 | 3,366,571.44 |
| Subtotal | 11,960,941,696.89 | 12,458,188,813.01 | 5,388,775,574.92 | 6,308,405,386.75 | 761,007,851.34 |
(III) Market risk
Market risk is the risk that the Company may encounter fluctuation in fair value or future cash flows of financial instruments due tochanges in market price. Market risk mainly includes interest risk and foreign currency risk.
1. Interest risk
Interest risk is the risk that an enterprise may encounter fluctuation in fair value or future cash flows of financial instruments due tochanges in market interest. The Company’s fair value interest risks arise from fixed-rate financial instruments, while the cash flowinterest risks arise from floating-rate financial instruments. The Company determines the proportion of fixed-rate financialinstruments and floating-rate financial instruments based on the market environment, and maintains a proper financial instrumentsportfolio through regular review and monitoring. The Company’s interest risk in cash flows relates mainly to bank borrowings withfloating interest rate.As of June 30, 2024, balance of borrowings with interest accrued at floating interest rate totaled 9,977.05 million yuan (December 31,2023: 9,620.06 million yuan). If interest rates had been 50 basis points higher/lower and all other variables were held constant, theCompany’s profit before tax and equity will not be significantly affected.
2. Foreign currency risk
Foreign currency risk is the risk arising from changes in fair value or future cash flows of financial instrument resulted from changesin exchange rate. The Company’s foreign currency risk relates mainly to foreign currency monetary assets and liabilities. Whenshort-term imbalance occurred to foreign currency assets and liabilities, the Company may trade foreign currency at market exchangerate when necessary, in order to maintain the net risk exposure within an acceptable level.Please refer to item VII 58 of the notes to the financial statements for details on foreign currency financial assets and liabilities at theend of the period.
2. Hedging
(1) The Company conducts hedging business for risk management.
√ Applicable □Not applicable
1) During the period under review, the Company carried out foreign exchange hedging business, using forward settlement andother derivative contracts as hedging instruments, and some of the expected purchases and sales transactions involving foreignexchange cash flows as hedged items, as a means of hedging the risk of fluctuations in expected future cash flows arising fromexpected purchases and sales borne by the Company as the prices in the foreign exchange market fluctuate.
2) During the period under review, the Company conducted foreign exchange hedging business, using forward settlement andother derivative contracts as hedging instruments and certain foreign exchange deposits as hedged items, as a means of hedging theCompany's exposure to the risk of fluctuations in existing foreign exchange deposits in response to fluctuations in foreignexchange market prices.
(2) The Company conducts eligible hedging operations and applies hedge accounting
□Applicable √ Not applicable
(3) The Company conducts hedging operations for risk management and expects to achieve its risk management objectives,but does not apply hedge accounting
√ Applicable □Not applicable
| Items | Reasons for not applying hedge accounting | Effect on the financial statements |
| foreign exchange swap (FX) contract | The Company extensively uses foreign exchange forward contracts and other tools for foreign exchange risk management between USD, EUR, CNY, and JPY on a global scale; because there is a certain offsetting relationship between the exchange rate changes between different currencies, which can, to a certain extent, have the same effect as that of hedge accounting, hedge accounting has not been applied. | Derivative financial assets: 8,741,096.39yuan Investment income: -7,317,634.93yuan Gains on changes in fair value: -4,445,860.49yuan |
3. Financial assets
(1) Classification of transfer methods
√ Applicable □Not applicable
Unit: RMB Yuan
| Items | Nature of financial assets transferred | Amount of financial assets transferred | Status of derecognition | Basis for determining derecognition |
| endorsements | Receivables financing | 734,164,568.98 | Full derecognition | The main risks and rewards, such as the related interest rate risk and credit risk, have been transferred to banks and third parties |
| discounted | Receivables financing | 252,523,552.48 | Full derecognition | The main risks and rewards, such as the related interest rate risk and credit risk, have been transferred to banks and third parties |
| total | 986,688,121.46 |
(2) Financial assets derecognized due to transfers
√ Applicable □Not applicable
Unit: RMB Yuan
| Items | Modalities for the transfer of financial assets | Amount of financial assets derecognized | Gains or losses related to derecognition |
| Receivables financing | Endorsements/ discounted | 986,688,121.46 | -1,049,522.31 |
| total | 986,688,121.46 | -1,049,522.31 |
(3) Transfer of financial assets that continue to be involved in the asset
□ Applicable √ Not applicable
XIII. Fair value disclosure
1. Details of fair value of assets and liabilities at fair value at the balance sheet date
Unit: RMB Yuan
| Items | Fair value as at the balance sheet date | |||
| Level 1 fair value measurement | Level 2 fair value measurement | Level 3 fair value measurement | Total | |
| I. Recurring fair value measurement | -- | -- | -- | -- |
| （I）Held-for-trading financial assets and other non-current financial assets | 8,741,096.39 | 8,741,096.39 | ||
| 1. Financial assets at fair value through profit or loss | 8,741,096.39 | 8,741,096.39 | ||
| (1)derivative financial asset | 8,741,096.39 | 8,741,096.39 | ||
| Total liabilities at recurring fair value measurement | 8,741,096.39 | 8,741,096.39 | ||
| II. Discontinued fair value measurements | -- | -- | -- | -- |
2. Qualitative and quantitative information of valuation technique(s) and key input(s) for level 2 fairvalue at recurring and non-recurring fair measurementFair value was determined at forward exchange rate published by Bank of China Limited at the balance sheet date.
3. Qualitative and quantitative information of valuation technique(s) and key input(s) for level 3 fairvalue at recurring and non-recurring fair measurement
1. Fair value of short-term financial products with guaranteed principal and floating income and structured deposits was determinedbased on their par value.
2. Fair value of bank acceptance was determined based on its par value.
3. As there is no significant change in the operating environment, operating condition and financial position of the invested entitiesZhejiang Second Pharma Co., Ltd. and Shanghai NewMargin Yongjin Eqiuty Enterprise (LP), the Company took investment cost asthe reasonable estimation of fair value.XIV Related parties and related party transactions
1. Parent company
| Parent company | Place of registration | Business nature | Registered capital | Holding proportion over the Company | Voting right proportion over the Company |
| NHU Holding Group Co., Ltd. | Xinchang, Zhejiang | Manufacturing | 120.00 million | 49.80% | 49.80% |
Remarks on the parent companyThe Company’s ultimate controlling party is the natural person Hu Baifan.
2. Subsidiaries of the Company
Please refer to item IX 1(1) of the notes to the financial statements for details on the Company’s subsidiaries.
3. Joint ventures and associates of the Company
Please refer to item VII 10 of the notes to the financial statements for details on the Company’s significant joint ventures andassociates.Other joint ventures or associates that had related party transactions with the Company during the current period, or had balancesarising from related party transactions with the Company in prior periods, are as follows:
| Related parties | Relationships with the Company |
| Beijing Foyou Pharma Co., Ltd. | Controlled by NHU Holding Group Co., Ltd. |
| Zhejiang Asen Pharmaceutical Co., Ltd. | Controlled by NHU Holding Group Co., Ltd. |
| Zhejiang Deli Equipment Co., Ltd. | Controlled by NHU Holding Group Co., Ltd. |
| Front Pharmaceutical PLC. | Controlled by NHU Holding Group Co., Ltd. |
| Weifang NHU Real Estate Co., Ltd. | Controlled by NHU Holding Group Co., Ltd. |
| Qionghai Heyue Property Services Co., Ltd. | Controlled by NHU Holding Group Co., Ltd. |
| Qionghai Boao Holliyard Hotel Management Co., Ltd. | Controlled by NHU Holding Group Co., Ltd. |
| Related parties | Relationships with the Company |
| Shaoxing Heyue Property Services Co., Ltd. | Controlled by NHU Holding Group Co., Ltd. |
| Xinchang County NHU Real Estate Co., Ltd. | Controlled by NHU Holding Group Co., Ltd. |
| Zhejiang Jingshi Real Estate Co., Ltd. | Controlled by NHU Holding Group Co., Ltd. |
| Shaoxing Yuexiu Education Development Co., Ltd. | Controlled by NHU Holding Group Co., Ltd. |
| Shaoxing Jinghe Hotel Management Co., Ltd. | Controlled by NHU Holding Group Co., Ltd. |
| Shaoxing Shangyu NHU Real Estate Co., Ltd. | Controlled by NHU Holding Group Co., Ltd. |
| Suihua NHU Real Estate Co., Ltd. | Controlled by NHU Holding Group Co., Ltd. |
| Zhejiang Yuexiu University of Foreign Languages | Controlled by NHU Holding Group Co., Ltd. |
| Heilongjiang Haotian Corn Development Co., Ltd. | Minority Shareholders of Subsidiaries |
| CHR.OLESEN A/S | Minority Shareholders of Subsidiaries |
| Shaoxing Heyue Property Service Co., Ltd. Shangyu Branch | Branch of Xinchang County NHU Real Estate Co., Ltd. |
Other remarks：
As CHR.OLESEN A/S holds 25% equity of NHU Europe GmbH, the holding subsidiary of the Company’s subsidiary NHU(Hong Kong) Trading Co., Ltd., the Company discloses transactions between CHR.OLESEN A/S and NHU Europe GmbH as wellas balances in related party transactions for the sake of prudence.
4. Related party transactions
(1) Purchase and sale of goods, rendering and receiving of services
Purchase of goods and receiving of services
Unit: RMB Yuan
| Related parties | Content of transaction | Current period cumulative | Transaction limit approved | Whether exceeds transaction limit | Preceding period comparative |
| Zhejiang Deli Equipment Co., Ltd. | Purchase of goods | 87,399,810.62 | 164,550,000.00 | No | 83,333,232.99 |
| Zhejiang Chunhui Environmental Protection Energy Co., Ltd. | Purchase of steam | 53,776,671.24 | 60,694,568.26 | ||
| Waste disposal service fees | 330,547.17 | 147,459.89 | |||
| Zhejiang Saiya Chemical Materials Co., Ltd. | Purchase of goods | 129,190,831.15 | 238,940,000.00 | No | 138,488,066.99 |
| Zhejiang Asen Pharmaceutical Co., Ltd. | Purchase of goods | 103,812.56 | 4,290,000.00 | No | 774,003.49 |
| Qionghai Boao Holliyard Hotel Management Co., Ltd. | Catering and accommodation services | 11,565.62 | 234,525.72 | ||
| Shaoxing Jinghe Hotel Management Co., Ltd | Catering and accommodation services | 733,057.43 | 831,053.37 | ||
| Qionghai Heyue Property Services Co., Ltd. | Property management | 108,074.04 | 219,042.13 | ||
| Shaoxing Heyue Property Services Co., Ltd. | Property management | 214,360.00 | 203,704.00 |
| Related parties | Content of transaction | Current period cumulative | Transaction limit approved | Whether exceeds transaction limit | Preceding period comparative |
| Shaoxing Yuexiu Education Development Co., Ltd. | Receiving of services | 496.00 | |||
| Zhejiang Yuexiu University of Foreign Languages | Receiving of services | 4,388.00 | |||
| Zhejiang Jingshi Real Estate Co., Ltd. | Receiving of services | 43,594.01 | |||
| Changbai Mountain Protection and Development Zone Heyue Hotel Management Co., Ltd | Receiving of services | 17,368.50 | |||
| Heilongjiang Haotian Corn Development Co., Ltd. | Purchase of goods | 700,819.04 | 108,479.87 | ||
| Shandong Bin’an Vocational Training School Co., Ltd. | Receiving of services | 2,674.53 | |||
| Subtotal | 272,630,511.38 | 407,780,000.00 | 285,041,695.24 |
Sale of goods and rendering of services
Unit: RMB Yuan
| Related parties | Content of transaction | Current period cumulative | Preceding period comparative |
| Zhejiang Deli Equipment Co., Ltd. | Scrapped materials | 77,876.10 | 92,969.09 |
| Zhejiang Chunhui Environmental Protection Energy Co., Ltd. | Waste and scrap materials | 53,097.35 | |
| Zhejiang Asen Pharmaceutical Co., Ltd. | Pharmaceutical intermediates, test fees | 6,735.85 | |
| Shandong Bin’an Vocational Training School Co., Ltd. | Management Service Fee | 23,372.54 | |
| Front Pharmaceutical PLC. | Pharmaceutical intermediates, testing fees | 353,982.31 | 575,409.92 |
| Envalior NHU Engineering Materials (Zhejiang) Co.,Ltd. | Scrapped materials | 71,388,365.86 | 71,867,299.71 |
| Labor costs, etc. | 12,933.42 | 413,070.59 | |
| Utilities fees | 802,824.33 | ||
| Beijing Winsunny Pharmaceutical Co., Ltd. | Pharmaceutical intermediates | 47,169.81 | |
| Total | 71,833,157.69 | 73,881,949.19 |
(2) Related party leases
The Company as the lessor:
Unit: RMB Yuan
| Lessees | Types of assets leased | Lease income recognized in the current period | Lease income recognized in preceding period |
| Envalior NHU Engineering Materials (Zhejiang) Co.,Ltd. | Land use right and buildings | 422,065.14 | 347,147.50 |
| Qionghai Boao Holliyard Hotel Management Co., Ltd. | Land use right and buildings | 156,000.00 | 240,000.00 |
| Zhejiang Jingshi Real Estate Co., Ltd. | Land use right and buildings | 326,238.53 | 266,666.67 |
| Weifang NHU Real Estate Co., Ltd. | Land use right and buildings | 5,142.86 | 5,142.86 |
| NHU Holding Group Co., Ltd. | Land use right and buildings | 16,513.76 | 16,513.76 |
The Company as the lessee:
Unit: RMB Yuan
| Lessors | Types of assets leased | Rental costs for short-term leases and leases of low-value assets with simplified treatment (if applicable) | |
| Lease expenses recognized in the current period | Lease expenses recognized in preceding period | ||
| Rental costs for short-term leases and leases of low-value assets with simplified treatment (if applicable) | Rental costs for short-term leases and leases of low-value assets with simplified treatment (if applicable) | 847,107.96 | |
(3) Related party guarantees
The Company as a guaranteed party
Unit: RMB Yuan
| Guarantors | Amount guaranteed | Commencement date | Maturity date | Whether the guarantee is mature |
| NHU Holding Group Co., Ltd. | 353,000,000.00 | December 03, 2020 | September 21, 2025 | No |
| 300,000,000.00 | September 19, 2022 | September 18, 2025 | No | |
| 200,000,000.00 | November 17, 2022 | November 14, 2025 | No | |
| Total | 853,000,000.00 |
(4) Key management’s emoluments
Unit: RMB Yuan
| Items | Current period cumulative | Preceding period comparative |
| Key management’s emoluments | 5,926,687.50 | 5,533,632.28 |
(5) Other related party transactions
(1) In the current period, NHU EUROPE GmbH sold products amounting to 97.75 million yuan to Client B. At the end of the period,balance of accounts receivable amounted to 41.22 million yuan.
(2) According to the patent technology licensing agreement and the related equipment sales contract signed between the companyand Ningbo ZRCC NHU Biotechnology Co., Ltd., the Company provides Ningbo ZRCC NHU Biotechnology Co., Ltd. withmature and reliable liquid methionine production technology developed, owned, or controlled by the company, including thetechnical implementation license related to patents and proprietary technologies, and sells related equipment, which is producedand supplied by Zhejiang Deli Equipment Co., Ltd. The total contract amount is agreed to be 442,917,139.59 yuan. As of June 30,2024, the company has received 289,332,233.93 yuan, of which the amount for equipment had been fully recovered.
5. Balance due to or from related parties
(1) Balance due from related parties
Unit: RMB Yuan
| Items | Related parties | Closing balance | Opening balance | ||
| Book balance | Provision for bad debts | Book balance | Provision for bad debts | ||
| Accounts receivable | Envalior NHU Engineering Materials (Zhejiang) Co.,Ltd. | 38,334,572.21 | 1,916,728.61 | 41,837,233.16 | 2,091,861.66 |
| Subtotal | 38,334,572.21 | 1,916,728.61 | 41,837,233.16 | 2,091,861.66 | |
| Advance paid | Zhejiang Deli Equipment Co., Ltd. | 45,926,357.35 | |||
| Subtotal | 45,926,357.35 | ||||
| Other receivables | Shaoxing Heyue Property Services Co., Ltd. | 18,400.00 | 920.00 | 18,400.00 | 920.00 |
| Zhejiang Chunhui Environmental Protection Energy Co., Ltd. | 20,000.00 | 16,000.00 | 20,000.00 | 16,000.00 | |
| Envalior NHU Engineering Materials (Zhejiang) Co.,Ltd. | 1,244,660.08 | 62,233.00 | 711.08 | 35.55 | |
| Subtotal | 1,283,060.08 | 79,153.00 | 39,111.08 | 16,955.55 | |
(2) Balance due to related parties
Unit: RMB Yuan
| Items | Related parties | Closing book balance | Opening book balance |
| Accounts payable | Zhejiang Deli Equipment Co., Ltd. | 22,447,219.98 | 13,573,871.90 |
| Zhejiang Saiya Chemical Materials Co., Ltd. | 75,985,639.17 | 199,699.11 | |
| Zhejiang Second Pharma Co., Ltd. | 6,408.00 | 6,408.00 | |
| Heilongjiang Haotian Corn Development Co., Ltd. | 221,823.07 | 110,873.46 | |
| Zhejiang Chunhui Environmental Protection Energy Co., Ltd. | 8,681,561.70 | 12,040,573.60 | |
| Subtotal | 107,342,651.92 | 25,931,426.07 | |
| Contract liabilities | Zhejiang Deli Equipment Co., Ltd. | 13,009.64 | 13,009.64 |
| Ningbo ZRCC NHU Biotechnology Co., Ltd. | 178,858,243.73 | ||
| Subtotal | 13,009.64 | 178,871,253.37 | |
| Other payables | Zhejiang Deli Equipment Co., Ltd. | 3,500.00 | 3,740.00 |
| Items | Related parties | Closing book balance | Opening book balance |
| Ningbo ZRCC NHU Biotechnology Co., Ltd. | 12,750.00 | ||
| Subtotal | 3,500.00 | 16,490.00 | |
| Other current liabilities | Zhejiang Deli Equipment Co., Ltd. | 1,691.25 | 1,691.25 |
| Ningbo ZRCC NHU Biotechnology Co., Ltd. | 13,180,653.87 | ||
| Subtotal | 1,691.25 | 13,182,345.12 |
XV. Commitments and contingencies
1. Significant commitments
Significant commitments as at the balance sheet date(I) Significant commitments
1. Forward exchange settlement contracts
Pursuant to “ISDA 2002 MASTER AGREEMENT” entered into between the Company and Bank of China (Hong Kong) Limited,“ISDA 2002 MASTER AGREEMENT” entered into with DBS Bank (China) Limited, the GLOBAL CAPITAL MARKETSTRANSACTION and the related transaction application form entered into with HSBC Bank (China) Limited Hangzhou Branch,the NAFMII Master Agreement and Supplemental Agreement (No. Y161136) with the Bank of China Limited, Zhejiang Branch,NAFMII Master Agreement and Supplemental Agreement (No. Y161136), as of June 30, 2024, the details of the Company'sundelivered forward settlement contracts are as follows:
| Currency | Amount | Exchang Rate | Settlement Date |
| USD | 10,000,000.00 | 7.2630 | 2024/7/10 |
| 10,000,000.00 | 7.2605 | 2024/7/16 | |
| 10,000,000.00 | 7.2605 | 2024/7/16 | |
| 10,000,000.00 | 7.2710 | 2024/7/24 | |
| 10,000,000.00 | 7.2910 | 2024/7/3 | |
| 10,000,000.00 | 7.2790 | 2024/7/25 | |
| 10,000,000.00 | 7.2735 | 2024/8/7 | |
| 10,000,000.00 | 7.2705 | 2024/8/14 | |
| 10,000,000.00 | 7.2665 | 2024/8/21 | |
| 10,000,000.00 | 7.2665 | 2024/8/21 | |
| 10,000,000.00 | 7.2625 | 2024/8/28 | |
| 10,000,000.00 | 7.2915 | 2024/7/24 | |
| Subtotal | 120,000,000.00 | ||
| EUR | 10,000,000.00 | 7.8300 | 2024/7/16 |
| 10,000,000.00 | 7.8286 | 2024/7/23 | |
| 10,000,000.00 | 7.8257 | 2024/8/6 | |
| 10,000,000.00 | 7.9070 | 2024/7/5 | |
| 10,000,000.00 | 7.9000 | 2024/8/6 | |
| Subtotal | 50,000,000.00 |
2. Letters of guarantee issued but undue
As of June 30, 2024, the undue letters of credit issued by the Company and its subsidiaries are as follows:
| Issuing banks | Applicants | Type of L/G | Amount | Conditions for issuing |
| Bank of China Limited Xinchang Sub-branch | The Company | Performance guarantee | USD5,660.00 | Occupying credit line |
| Issuing banks | Applicants | Type of L/G | Amount | Conditions for issuing |
| Performance guarantee | USD183,370.00 | Occupying credit line | ||
| Performance guarantee | USD148,000.00 | Occupying credit line | ||
| China Merchants Bank Co., Ltd. Weifang Branch | Shandong NHU Vitamins Co., Ltd. | Financing Guarantee | CNY2,120,000.00 | Occupying credit line |
| Bank of China Limited Weifang Binhai Branch | Shandong NHU Amino-acids Co., Ltd. | Performance guarantee | CNY8,183,592.83 | Deposit of 8,183,592.83 yuan |
3. Letters of credit issued but undue
As of June 30, 2024, the undue letters of credit issued by the Company and its subsidiaries are as follows:
| Issuing banks | Applicants | Balance of L/C | Conditions |
| Bank of China Limited Xinchang Branch | The Company | USD19,622.40 | Occupying credit line |
| USD1,669,836.00 | Occupying credit line | ||
| USD620,224.80 | Occupying credit line | ||
| CNY100,000,000.00 | Occupying credit line | ||
| CNY90,000,000.00 | Occupying credit line | ||
| China Merchants Bank Hangzhou Jiefang Branch | The Company | CNY90,000,000.00 | Occupying credit line |
| CNY160,000,000.00 | Occupying credit line | ||
| CNY50,000,000.00 | Occupying credit line | ||
| CITIC Bank Corporation Hangzhou Branch | The Company | CNY50,000,000.00 | Occupying credit line |
| China Construction Bank Corporation Xinchang Branch | The Company | CNY100,000,000.00 | Occupying credit line |
| Industrial and Commercial Bank of China Limited Xinchang Branch | The Company | CNY85,000,000.00 | Occupying credit line |
| Agricultural Bank of China Limited Xinchang Branch | The Company | CNY100,000,000.00 | Occupying credit line |
| Bank of China Limited Xinchang Branch | Zhejiang NHU Imports & Exports Co., Ltd. | EUR185,500.00 | Deposit of EUR 185,500.00 |
| Bank of China Limited Shangyu Sub-branch | Zhejiang NHU Special Materials Co., Ltd. | JPY4,230,000 | Deposit of 220,000.00 yuan |
| China Merchants Bank Hangzhou Jiefang Branch | Shangyu NHU Bio-Chem Co., Ltd. | CNY 150,000,000.00 | Occupying credit line |
| China Merchants Bank Co., Ltd. Weifang Branch | Shandong NHU Pharmaceutical Co., Ltd. | CNY25,000,000.00 | Occupying credit line |
| CNY26,224,348.26 | Occupying credit line | ||
| CNY20,895,878.61 | Occupying credit line | ||
| CNY21,643,085.00 | Occupying credit line | ||
| China Merchants Bank Co., Ltd. Weifang Branch | Shandong NHU Vitamins Co., Ltd. | CNY9,726,000.00 | Occupying credit line |
4. The “notes pool” business
Pursuant to the “Notes Pool Service Agreement on Yuntong Account of Bank of Communications” entered into between theCompany and Bank of Communications Co., Ltd., the Company pledged and endorsed bank acceptance to the depositary bank,forming a pledged notes pool; the Company also opened a notes pool deposit account to provide guarantee for the credit grantedunder the note pledge and to deposit the pledged bank acceptance for payments. The available credit line for pledge is the sum ofpledged notes and the actual balance of deposit account less pledged notes used. As stipulated in the agreement, the sum ofpledged notes and the balance of deposit account shall not be less than the pledged amount used for issuing notes. Pursuant to the
“Notes Pool Cooperation Agreement” entered into among the Company, its subsidiaries Shangyu NHU Bio-Chem Co., Ltd.,Zhejiang NHU Pharmaceutical Co., Ltd., Zhejiang NHU Special Materials Co., Ltd., Shaoxing Yuchen New Materials Co., Ltd.,Shandong NHU Pharmaceutical Co., Ltd., Shandong NHU Vitamins Co., Ltd., Shandong NHU Amino-acids Co., Ltd.,Heilongjiang NHU Biotechnology Co., Ltd., Shandong NHU Fine Chemical Science and Technology Co., Ltd., HeilongjiangXinhao Thermal Power Co., Ltd., Xinchang NHU Vitamins Co., Ltd., Zhejiang Vityesun Animal Nutrition and Health Co., Ltd,Zhejiang NHU Imports & Exports Co., Ltd.. and China Zheshang Bank Co., Ltd., the Company pledged assets pool or notes poolfor guarantee, and opened a notes deposit account to pay deposits at a certain percentage, with no specific agreement on theamount of deposits. As of June 30, 2024, balance of pledged bank acceptance amounted to 207,267,158.31 yuan, deposits of notespool in China Zheshang Bank Co., Ltd. amounted to 55,388,324.90 yuan.
5. Besides the aforementioned events and assets with title or use right restrictions as stated in this section, the Company has noother significant commitments to be disclosed as of the balance sheet date.
2. Contingencies
(1) There are no material contingencies that the Company is required to disclose, which should also beexplainedThe Company has no material contingencies that require disclosure.XVI. Events after the balance sheet date
1. Description of other events after the balance sheet date
As of the date of approval for issuing the financial statements, the Company has no other significant events after the balance sheetdate to be disclosed.XVII. Other significant events
1. Segment information
(1) Identification basis and accounting policies for reportable segments
Reportable segments are identified according to the structure of the Company’s internal organization, management requirements andinternal reporting system, and based on business segments. Assets and liabilities shared by different segments are allocated amongsegments proportionate to their respective sizes.
(2) Financial information of reportable segments
Unit: RMB Yuan
| Items | Pharmaceutical chemicals | Others | Inter-segment offsetting | Total |
| Operating revenue | 9,756,862,100.44 | 601,767,401.58 | 513,917,287.66 | 9,844,712,214.36 |
| Including: Revenue from contracts with customers | 6,309,180,450.59 | 396,115,898.44 | 513,917,287.66 | 6,191,379,061.37 |
| Operating cost | 37,070,434,414.59 | 3,544,388,315.87 | 520,527,834.46 | 40,094,294,896.00 |
| Total assets | 13,215,121,264.78 | 1,616,679,435.34 | 520,527,834.46 | 14,311,272,865.66 |
XVIII. Notes to the main items of the parent company's financial statements
1. Accounts receivable
(1) Age analysis
Unit: RMB Yuan
| Ages | Closing balance | Opening balance |
| Within 1 year | 747,305,554.92 | 659,625,316.20 |
| Total | 747,305,554.92 | 659,625,316.20 |
(2) Details on categories
Unit: RMB Yuan
| Categories | Closing balance | Opening balance | ||||||||
| Book balance | Provision for bad debts | Carrying amount | Book balance | Provision for bad debts | Carrying amount | |||||
| Amount | % to total | Amount | Provision proportion | Amount | % to total | Amount | Provision proportion | |||
| Including： | ||||||||||
| Receivables with provision made on a collective basis | 747,305,554.92 | 100.00% | 37,365,277.76 | 5.00% | 709,940,277.16 | 659,625,316.20 | 100.00% | 32,981,265.81 | 5.00% | 626,644,050.39 |
| Total | 747,305,554.92 | 100.00% | 37,365,277.76 | 5.00% | 709,940,277.16 | 659,625,316.20 | 100.00% | 32,981,265.81 | 5.00% | 626,644,050.39 |
Provision for bad debts by portfolio Category name: Accounts receivable with bad debt provision by age portfolio
Unit: RMB Yuan
| Items | Closing balance | ||
| Book balance | Provision for bad debts | Provision proportion | |
| Within 1 year | 747,305,554.92 | 37,365,277.76 | 5.00% |
| Total | 747,305,554.92 | 37,365,277.76 | 5.00% |
Provision for bad debts on accounts receivable is made in accordance with the general model of expected credit losses, if any:
□Applicable √ Not applicable
(3) Provisions made, collected or reversed in the current period
Provisions made in the current period:
Unit: RMB Yuan
| Categories | Opening balance | Increase/Decrease | Closing balance | |||
| Accrual | Recovery/Reversal | Write-off | Others | |||
| Provision made on a collective basis | 32,981,265.81 | 4,384,011.95 | 37,365,277.76 | |||
| Total | 32,981,265.81 | 4,384,011.95 | 37,365,277.76 | |||
(4) Details of the top 5 debtors with largest balances
Unit: RMB Yuan
| Debtors | Book balance | Proportion to the total balance of accounts receivable (%) | Provision for bad debts |
| Client 1 | 392,395,238.78 | 52.51% | 19,619,761.94 |
| Client 2 | 89,601,009.88 | 11.99% | 4,480,050.49 |
| Client 3 | 39,596,211.97 | 5.30% | 1,979,810.60 |
| Client 4 | 20,612,744.97 | 2.76% | 1,030,637.25 |
| Client 5 | 15,534,121.08 | 2.08% | 776,706.05 |
| Total | 557,739,326.68 | 74.64% | 27,886,966.33 |
2. Other receivables
Unit: RMB Yuan
| Items | Closing balance | Opening balance |
| Other receivables | 2,077,641,921.09 | 2,908,050,463.81 |
| Total | 2,077,641,921.09 | 2,908,050,463.81 |
(1) Dividend receivable
1) Details on categories
Unit: RMB Yuan
| Items/Investees | Closing balance | Opening balance |
| loan splitting | 2,162,676,254.98 | 3,038,350,000.01 |
| Deposit Guarantee | 13,158,059.00 | 13,376,459.00 |
| Export Tax Refund | 4,381,724.63 | 5,735,604.80 |
| Employee reserve fund | 5,010,000.00 | 2,436,000.00 |
| Other | 1,628,367.96 | 1,336,185.69 |
| Accounts receivable in suspense | 9,687.43 | |
| Total | 2,186,864,094.00 | 3,061,234,249.50 |
2) Age analysis
Unit: RMB Yuan
| Ages | Closing book balance | Opening book balance |
| Within 1 year (inclusive) | 2,173,583,234.06 | 3,047,240,876.60 |
| 1-2 years | 457,610.37 | |
| 2-3 years | 13,280,859.94 | 13,535,762.53 |
| Over 3 years | 25,770.00 | |
| 3-4 years | 12,455.81 | 162,455.81 |
| 4-5 years | 13,268,404.13 | 13,347,536.72 |
| Over 5 years | 2,186,864,094.00 | 3,061,234,249.50 |
3) Disclosure by bad debt accrual method
Unit: RMB Yuan
| Categories | Closing balance | Opening balance | ||||||||
| Book balance | Provision for bad debts | Carrying amount | Book balance | Provision for bad debts | Carrying amount | |||||
| Amount | % to total | Amount | Provision proportion | Amount | % to total | Amount | Provision proportion | |||
| Including： | ||||||||||
| Receivables with provision made on a collective basis | 2,186,864,094.00 | 100.00% | 109,222,172.91 | 5.00% | 2,077,641,921.09 | 3,061,234,249.50 | 100.00% | 153,183,785.69 | 5.00% | 2,908,050,463.81 |
| Total | 2,186,864,094.00 | 100.00% | 109,222,172.91 | 5.00% | 2,077,641,921.09 | 3,061,234,249.50 | 100.00% | 153,183,785.69 | 5.00% | 2,908,050,463.81 |
Provision for bad debts by portfolio Category name: Provision for bad debts by portfolio
Unit: RMB Yuan
| Items | Closing balance | ||
| Book balance | Provision for bad debts | Provision proportion | |
| Land bond receivable portfolio | 12,518,762.50 | ||
| Export tax refund receivable portfolio | 4,381,724.63 | ||
| Ageing portfolio | 2,169,963,606.87 | 109,222,172.91 | 5.03% |
| Including:1-2 years | 2,169,201,509.43 | 108,460,075.47 | 5.00% |
| 2-3 years | 20.00% | ||
| Over 3 years | 762,097.44 | 762,097.44 | 100.00% |
| Total | 2,186,864,094.00 | 109,222,172.91 | |
Provision for bad debts is made on the basis of a general model of expected credit losses:
Unit: RMB Yuan
| Provision for bad debts | Phase I | Phase II | Phase III | Total |
| 12?month expected credit losses | Lifetime expected credit losses (credit not impaired) | Lifetime expected credit losses (credit impaired) | ||
| Opening balance | 152,075,263.59 | 91,522.07 | 1,017,000.03 | 153,183,785.69 |
| Opening balance in the current period | ||||
| Provision made in the current period | -43,615,188.12 | -91,522.07 | -254,902.59 | -43,961,612.78 |
| Closing balance | 108,460,075.47 | 0.00 | 762,097.44 | 109,222,172.91 |
The basis for the classification of each stage and the percentage of provision for bad debts:
Accounts aged less than one year are classified as stage I, those aged 1-2 years are classified as stage II, and those aged more than2 years are classified as stage III.Changes in the carrying amount of the provision for losses that are significant in terms of the amount of change during the period.
□Applicable √Not Applicable
4) Provisions made, collected or reversed in the current period
Provision for bad debts in the current period:
Unit: RMB Yuan
| Categories | Opening balance | Increase/Decrease | Closing balance | |||
| Accrual | Recovery/Reversal | Write-off | Others | |||
| Portfolio grouped by ages | 153,183,785.69 | -43,961,612.78 | 109,222,172.91 | |||
| Total | 153,183,785.69 | -43,961,612.78 | 109,222,172.91 | |||
5) Details of the top 5 debtors with largest balances
Unit: RMB Yuan
| Debtors | Nature of receivables | Book balance | Ages | Proportion to the total balance of other receivables (%) | Provision for bad debts |
| Heilongjiang NHU Biotechnology Co., Ltd. | Call loans | 1,129,437,562.47 | Within 1 year (inclusive) | 51.65% | 56,471,878.12 |
| Shandong NHU Fine Chemical Science and Technology Co., Ltd. | Call loans | 750,685,903.85 | Within 1 year (inclusive) | 34.33% | 37,534,295.19 |
| Xinchang NHU Vitamins Co. | Call loans | 163,761,872.33 | Within 1 year (inclusive) | 7.49% | 8,188,093.62 |
| Shandong NHU Holdings Co., Ltd | Call loans | 49,233,158.10 | Within 1 year (inclusive) | 2.25% | 2,461,657.91 |
| Zhejiang NHU Special Materials Co., Ltd. | Call loans | 45,383,812.49 | Within 1 year (inclusive) | 2.08% | 2,269,190.62 |
| Total | 2,138,502,309.24 | 97.80% | 106,925,115.46 |
3. Long-term equity investments
Unit: RMB Yuan
| Items | Closing balance | Opening balance | ||||
| Book balance | Provision for impairment | Carrying amount | Book balance | Provision for impairment | Carrying amount | |
| Investments in subsidiaries | 10,722,058,350.12 | 10,722,058,350.12 | 10,176,078,842.12 | 10,176,078,842.12 | ||
| Investments in associates and joint ventures | 670,892,788.97 | 670,892,788.97 | 502,157,305.30 | 502,157,305.30 | ||
| Total | 11,392,951,139.09 | 11,392,951,139.09 | 10,678,236,147.42 | 10,678,236,147.42 | ||
(1) Investments in subsidiaries
Unit: RMB Yuan
| Investees | Opening carrying amount | Opening balance of provision for impairment | Increase/Decrease | Closing carrying amount | Closing balance of provision for impairment | |||
| Investments increased | Investments decreased | Provision for impairment | Others | |||||
| Xinchang NHU Vitamins Co., Ltd. | 149,407,990.15 | 149,407,990.15 | ||||||
| Zhejiang NHU Import & Export Co., Ltd. | 13,500,000.00 | 13,500,000.00 | ||||||
| Qionghai Boao Lidu Real Estate Co., Ltd. | 54,020,492.00 | 54,020,492.00 | ||||||
| Zhejiang Vityesun Animal Nutrition and Health Co., Ltd. | 5,000,000.00 | 5,000,000.00 | ||||||
| Shangyu NHU Bio-Chem Co., Ltd. | 414,100,091.44 | 414,100,091.44 | ||||||
| NHU (Hong Kong) Trading Co., Ltd. | 16,406,160.00 | 16,406,160.00 | ||||||
| Zhejiang NHU Pharmaceutical Co., Ltd. | 480,000,000.00 | 480,000,000.00 | ||||||
| Zhejiang NHU Special Materials Co., Ltd. | 554,844,108.53 | 554,844,108.53 | ||||||
| Shandong NHU Amino-acids Co., Ltd. | 5,800,000,000.00 | 5,800,000,000.00 | ||||||
| Shandong NHU Holdings Co., Ltd. | 200,000,000.00 | 200,000,000.00 | ||||||
| Heilongjiang NHU Biotechnology Co., Ltd. | 1,300,000,000.00 | 600,000,000.00 | 1,900,000,000.00 | |||||
| Shandong NHU Pharmaceutical Co., Ltd. | 586,000,000.00 | 586,000,000.00 | ||||||
| Shandong NHU Fine Chemical Science and Technology Co., Ltd. | 590,000,000.00 | 590,000,000.00 | ||||||
| NHU Singapore PTE. LTD. | 12,800,000.00 | 12,800,000.00 | ||||||
| Total | 10,176,078,842.12 | 600,000,000.00 | 54,020,492.00 | 10,722,058,350.12 | ||||
(2) Investments in associates and joint ventures
Unit: RMB Yuan
| Investees | Opening carrying amount | Opening balance of provision for impairment | Increase/Decrease | Closing carrying amount | Closing balance of provision for impairment | |||||||
| Investments increased | Investments decreased | Investment income recognized under equity method | Adjustment in other comprehensive income | Changes in other equity | Cash dividend/ Profit declared for distribution | Provision for impairment | Others | |||||
| I. joint venture | ||||||||||||
| Ningbo Zhenhai Refining and Chemical Xinhecheng Biotechnology Co., Ltd | 216,166,978.49 | 155,672,000.00 | -15,649,565.41 | 356,189,413.08 | ||||||||
| Subtotal | 216,166,978.49 | 155,672,000.00 | -15,649,565.41 | 356,189,413.08 | ||||||||
| II. Associates | ||||||||||||
| Zhejiang Chunhui Environmental Protection Energy Co., Ltd. | 281,395,724.54 | 28,351,365.91 | -13,377.44 | 309,733,713.01 | ||||||||
| Zhejiang Sanbo Polymer Co., Ltd | ||||||||||||
| Anhui Yingna Weixun Technology Co., Ltd | 4,594,602.27 | 375,060.61 | 4,969,662.88 | |||||||||
| Subtotal | 285,990,326.81 | 28,726,426.52 | -13,377.44 | 314,703,375.89 | ||||||||
| Total | 502,157,305.30 | 155,672,000.00 | 13,076,861.11 | -13,377.44 | 670,892,788.97 | |||||||
The recoverable amount is determined as the net of fair value less costs of disposal
□Applicable √Not applicable
Recoverable amount is determined as the present value of the expected future cash flows
□Applicable √Not applicable
4. Operating revenue/Operating cost
Unit: RMB Yuan
| Items | Current period cumulative | Preceding period comparative | ||
| Revenue | Cost | Revenue | Cost | |
| Main operations | 1,648,027,716.97 | 1,455,263,461.14 | 1,438,268,120.92 | 1,261,740,406.31 |
| Other operations | 30,583,786.52 | 23,411,419.87 | 29,381,770.87 | 24,923,360.59 |
| Total | 1,678,611,503.49 | 1,478,674,881.01 | 1,467,649,891.79 | 1,286,663,766.90 |
| Including: Revenue from contracts with customers | 1,676,857,697.21 | 1,478,180,865.14 | 1,465,736,240.87 | 1,286,663,766.90 |
Information on the breakdown of operating revenues and operating costs:：
Unit: RMB Yuan
| Categories of contracts | Revenue | Cost |
| By product | ||
| Including: | ||
| Nutrition | 1,648,027,716.97 | 1,455,263,461.14 |
| Others | 28,829,980.24 | 22,917,404.00 |
| Subtotal | 1,676,857,697.21 | 1,478,180,865.14 |
| By operating region | ||
| Including: | ||
| Domestic | 1,099,410,499.47 | 936,602,333.77 |
| Overseas | 577,447,197.74 | 541,578,531.37 |
| Subtotal | 1,676,857,697.21 | 1,478,180,865.14 |
| By revenue recognition time | ||
| Including: | ||
| Transferred at a point in time | 1,676,857,697.21 | 1,478,180,865.14 |
| Subtotal | 1,676,857,697.21 | 1,478,180,865.14 |
Information related to transaction price allocated to the remaining performance obligations:
As of June 30, 2024, revenue corresponding to performance obligations for which the Company has entered into contracts but notyet performed or fulfilled amounted to 520.78 million yuan, of which, 520.78 million yuan is expected to be recognized as revenuein 2024.
5. Investment income
Unit: RMB Yuan
| Items | Current period cumulative | Preceding period comparative |
| Investment income from long-term equity investments under cost method | 1,501,500,000.00 | 1,390,000,000.00 |
| Investment income from long-term equity investments under equity method | 13,076,861.11 | 17,189,195.23 |
| Investment income from disposal of long-term equity | 28,770,508.00 |
| Items | Current period cumulative | Preceding period comparative |
| investments | ||
| Interest income from call loans | 42,903,111.48 | 50,158,644.31 |
| Returns on Wealth Management Products and Structured Deposits | 2,735,849.06 | |
| Total | 1,586,250,480.59 | 1,460,083,688.60 |
XIX. Supplementary information
1. Schedule of non-recurring profit or loss
√ Applicable □ Not applicable
Unit: RMB Yuan
| Items | Amount | Remarks |
| Gains or losses on disposal of non-current assets, including write-off of provision for impairment | -1,128,442.54 | |
| Government grants included in profit or loss (excluding those closely related to operating activities of the Company, satisfying government policies and regulations, and continuously enjoyed with certain quantity or quota based on certain standards) | 59,818,451.66 | |
| Gains or losses on changes in fair value of held-for-trading financial assets and held-for-trading financial liabilities, and investment income from disposal of held-for-trading financial assets and held-for-trading financial liabilities, excluding those arising from hedging business related to operating activities | -4,445,860.49 | |
| Gains or losses on assets consigned to the third party for investment or management | 808,128.72 | |
| Other non-operating revenue or expenditures | -203,096.63 | |
| Less: Enterprise income tax affected | 7,854,767.77 | |
| Non-controlling interest affected (after tax) | 95,237.69 | |
| Total | 46,899,175.26 |
Remarks on other profit or loss satisfying the definition of non-recurring profit or loss:
□ Applicable √ Not applicable
The Company has no other profit or loss satisfying the definition of non-recurring profit or loss.Remarks on defining non-recurring profit or loss listed in the “Interpretation Pronouncement on Information Disclosure Criteria forPublic Companies No. 1 – Non-Recurring Profit or Loss” as recurring profit or loss
□ Applicable √ Not applicable
2. ROE and EPS
| Profit of the reporting period | Weighted average ROE (%) | EPS (yuan/share) | |
| Basic EPS | Diluted EPS | ||
| Net profit attributable to shareholders of ordinary shares | 8.58% | 0.71 | 0.71 |
| Net profit attributable to shareholders of ordinary shares after deducting non-recurring profit or loss | 8.40% | 0.70 | 0.70 |
3. Differences in accounting data under Chinese accounting standards and overseas accounting standards
(1) Difference in net profit and net assets in financial statements disclosed respectively under IFRSStandards and Chinese accounting standards
□ Applicable √ Not Applicable
(2) Difference in net profit and net assets in financial statements disclosed respectively under overseasaccounting standards and Chinese accounting standards
□ Applicable √ Not Applicable
(3) Explanation of the reasons for differences in accounting data under domestic and foreign accountingstandards. If adjusting for differences in data already audited by overseas auditing institutions, the nameof the overseas institution should be indicated
□ Applicable √ Not Applicable
4. Other
(1) Calculation process for weighted average return on net assets
Unit: RMB Yuan
| Items | Serial number | Current period cumulative | |
| Net profit attributable to shareholders of listed company | A | 2,204,361,642.96 | |
| Non-recurring profit or loss | B | 46,899,175.26 | |
| Net profit attributable to shareholders of listed company after deducting non-recurring profit or loss | C=A-B | 2,157,462,467.70 | |
| Opening net assets attributable to the Company's ordinary shareholders | D | 24,804,662,320.99 | |
| Net assets attributable to ordinary shareholders of the Company arising from the issue of new shares or conversion of debt to equity, etc. | E | ||
| Cumulative number of months from the month following the month in which the net assets were added to the end of the reporting period | F | ||
| Decrease in net assets attributable to the Company's common shareholders as a result of repurchases or cash dividends, etc. | G | 1,383,039,756.00 | |
| Cumulative number of months from the month following the month in which net assets were reduced to the end of the reporting period | H | 1 | |
| other | Translation differences in foreign currency statements | I1 | 2,144,278.96 |
| Cumulative number of months from the month following the month of increase or decrease in net assets to the end of the reporting period | J1 | 3.00 | |
| Special reserve | I2 | 30,166,768.34 | |
| Cumulative number of months from the month following the month of increase or decrease in net assets to the end of the reporting period | J2 | 3.00 | |
| Number of months in the reporting period | K | 6 | |
| Weighted average net assets | L= D+A/2+ E×F/K-G×H/K±I×J/K | 25,692,492,040.12 | |
| Weighted average ROE | M=A/L | 8.58% | |
| Weighted average ROE after extraordinary gains and losses | N=C/L | 8.40% | |
（2） Calculation process of basic earnings per share and diluted earnings per share
1) Basic earnings per share calculation process
Unit: RMB Yuan
| Items | Serial number | Current period cumulative |
| Net profit attributable to shareholders of listed company | A | 2,204,361,642.96 |
| Non-recurring profit or loss | B | 46,899,175.26 |
| Net profit attributable to shareholders of listed company after deducting non-recurring profit or loss | C=A-B | 2,157,462,467.70 |
| Total number of shares at the beginning of the period | D | 3,090,907,356.00 |
| Net profit attributable to shareholders of listed company | E | |
| Increase in the number of shares by issuing new shares or converting debt to equity, etc. | F | |
| Cumulative number of months from the month following the increase in shares to the end of the reporting period | G | |
| Reduction in the number of shares due to buybacks, etc. | H | |
| Cumulative number of months from the month following the reduction of shares to the end of the reporting period | I | |
| Number of drawdowns during the reporting period | J | |
| Number of months in the reporting period | K | 6 |
| Weighted average number of ordinary shares outstanding | L=D+E+F×G/K-H×I/K-J | 3,090,907,356.00 |
| Basic EPS | M=A/L | 0.71 |
| Basic EPS after extraordinary gains and losses | N=C/L | 0.70 |
2) Calculation of diluted earnings per share
The process of calculating diluted earnings per share is the same as that for basic earnings per share.