Shenzhen Textile (Holdings) Co., Ltd.
2024 Semi-annual Financial Report
August 2024
1. Audit Report
Whether the semi-annual report has been audited
□ Yes √ No?
The Company's semi-annual financial report is unaudited.
2. Financial statements
The unit of the financial statements in the notes is RMB
1. Consolidated Balance Sheet
Prepared by: Shenzhen Textile (Holdings) Co., Ltd.
June 30,2024
In RMB
| Items | Ending balance | Opening balance |
| Current asset： | ||
| Monetary fund | 225,910,430.39 | 472,274,448.00 |
| Deposit reservation for balance | ||
| Lending funds | ||
| Transaction financial assets | 958,694,300.63 | 821,946,114.68 |
| Derivative financial assets | ||
| Note receivable | 36,077,741.23 | 50,963,943.01 |
| Accounts receivable | 989,669,064.26 | 820,134,833.95 |
| Financing of receivables | 1,764,753.26 | 22,839,459.13 |
| Prepayments | 19,440,071.68 | 19,499,886.80 |
| Premiums receivable | ||
| Cession premiums receivable | ||
| Provision of cession receivable | ||
| Other account receivable | 2,869,233.51 | 3,220,285.42 |
| Including：Interest receivable | 0.00 | 0.00 |
| Dividend receivable | 0.00 | 0.00 |
| Redemptory monetary capital for sale | ||
| Inventories | 846,922,170.06 | 736,392,172.27 |
| Including: Data resources | ||
| Contract assets | ||
| Assets held for sale | ||
| Non-current assets due within one year | ||
| Other current asset | 48,163,125.23 | 60,773,457.39 |
| Total of current assets | 3,129,510,890.25 | 3,008,044,600.65 |
| Non-current assets： | ||
| Loans and advances offered |
| Debt investment | ||
| Other debt investment | ||
| Long-term receivables | ||
| Long-term equity investment | 121,622,822.15 | 127,682,020.70 |
| Other equity instruments investment | 145,988,900.00 | 145,988,900.00 |
| Other non-current financial assets | ||
| Investment real estate | 120,798,298.63 | 125,603,207.18 |
| Fixed assets | 1,956,105,719.74 | 2,066,006,237.73 |
| Construction in process | 35,178,323.03 | 31,307,060.74 |
| Productive biological assets | ||
| Oil and gas assets | ||
| Use right assets | 15,681,910.23 | 11,999,466.57 |
| Intangible assets | 37,363,216.15 | 39,564,422.80 |
| Including: Data resources | ||
| Development expenditures | ||
| Including: Data resources | ||
| Goodwill | 0.00 | 0.00 |
| Long-term expenses to be amortized | 4,571,279.35 | 3,503,660.94 |
| Deferred income tax asset | 54,006,722.74 | 60,605,365.42 |
| Other non-current asset | 27,721,656.15 | 29,517,420.71 |
| Total of non-current assets | 2,519,038,848.17 | 2,641,777,762.79 |
| Total of assets | 5,648,549,738.42 | 5,649,822,363.44 |
| Current liabilities： | ||
| Short-term borrowing | 0.00 | 8,000,000.00 |
| Borrowing from the central bank | ||
| Borrowed funds | ||
| Trading financial liabilities | ||
| Derivative financial liabilities | ||
| Notes payable | 10,743,421.84 | 31,049,291.49 |
| Account payable | 474,563,073.82 | 408,548,136.24 |
| Advance receipts | 1,384,783.04 | 1,450,096.30 |
| Contract liabilities | 11,015,753.50 | 1,436,943.34 |
| Financial assets sold for repurchase | ||
| Deposits from customers and interbank | ||
| Receivings from vicariously traded securities | ||
| Funds received as stock underwrite | ||
| Employees’ wage payable | 48,445,066.44 | 56,437,162.09 |
| Tax payable | 6,775,687.17 | 4,340,895.14 |
| Other payable | 180,013,733.22 | 184,528,344.55 |
| Including：Interest payable | 0.00 | 0.00 |
| Dividend payable | 0.00 | 0.00 |
| Service charges and commissions payable | ||
| Cession premiums payable | ||
| Liabilities held for sale | ||
| Non-current liability due within 1 year | 109,541,121.89 | 108,102,752.99 |
| Other current liability | 58,881,472.16 | 80,082,477.22 |
| Total of current liability | 901,364,113.08 | 883,976,099.36 |
| Non-current liabilities： | ||
| Insurance contract reserve | ||
| Long-term borrowing | 454,656,644.56 | 505,578,314.56 |
| Bonds payable | ||
| Including: preferred stock | ||
| Perpetual bonds | ||
| Lease liabilities | 10,179,476.70 | 6,687,317.22 |
| Long-term payables | ||
| Long-term employee benefits payable | ||
| 27. Estimated liabilities | ||
| Deferred income | 92,717,923.24 | 97,485,986.89 |
| Deferred income tax liability | 43,951,002.93 | 44,177,287.45 |
| Other non-current liabilities | ||
| Total non-current liabilities | 601,505,047.43 | 653,928,906.12 |
| Total of liability | 1,502,869,160.51 | 1,537,905,005.48 |
| Owner's equity: | ||
| Share capital | 506,521,849.00 | 506,521,849.00 |
| Other equity instruments | ||
| Including: preferred stock | ||
| Perpetual bonds | ||
| Capital reserves | 1,961,599,824.63 | 1,961,599,824.63 |
| Less: treasury stock | ||
| Other comprehensive income | 93,491,555.75 | 93,607,380.81 |
| Special reserve | ||
| Special reserve | 104,262,315.64 | 104,262,315.64 |
| General risk provisions | ||
| Retained profit | 227,131,054.65 | 216,160,896.14 |
| Total equity attributable to the owner of the parent company | 2,893,006,599.67 | 2,882,152,266.22 |
| Minority shareholders’ equity | 1,252,673,978.24 | 1,229,765,091.74 |
| Total owner's equity | 4,145,680,577.91 | 4,111,917,357.96 |
| Total liabilities and owner's equity | 5,648,549,738.42 | 5,649,822,363.44 |
Legal representative: Yin Kefei Principal in charge of accounting: Liu Yu Principal of accounting agency: HuangMin
2. Balance Sheet of parent company
In RMB
| Items | Ending balance | Opening balance |
| Current asset： | ||
| Monetary fund | 18,669,477.61 | 9,125,800.27 |
| Transaction financial assets | 707,161,943.00 | 741,243,309.42 |
| Derivative financial assets | ||
| Note receivable | ||
| Accounts receivable | 12,513,509.31 | 12,671,623.65 |
| Financing of receivables | ||
| Prepayments | 9,239.29 | 0.00 |
| Other account receivable | 26,806,548.49 | 14,013,552.95 |
| Including：Interest receivable | 0.00 | 0.00 |
| Dividend receivable | 0.00 | 0.00 |
| Inventories | 36,079.05 | 32,814.05 |
| Including: Data resources | ||
| Contract assets | ||
| Assets held for sale | ||
| Non-current assets due within one year | ||
| Other current asset | ||
| Total of current assets | 765,196,796.75 | 777,087,100.34 |
| Non-current assets： | ||
| Debt investment | ||
| Other debt investment | ||
| Long-term receivables | ||
| Long-term equity investment | 2,081,473,612.24 | 2,087,532,810.79 |
| Other equity instruments investment | 131,185,500.00 | 131,185,500.00 |
| Other non-current financial assets | ||
| Investment real estate | 98,602,072.25 | 102,430,682.27 |
| Fixed assets | 2,294,808.14 | 2,522,229.44 |
| Construction in process | ||
| Productive biological assets | ||
| Oil and gas assets | ||
| Use right assets | ||
| Intangible assets | 134,652.30 | 191,875.56 |
| Including: Data resources | ||
| Development expenditures | ||
| Including: Data resources | ||
| Goodwill | 0.00 | 0.00 |
| Long-term expenses to be | 2,136,988.39 | 0.00 |
| amortized | ||
| Deferred income tax asset | 0.00 | 0.00 |
| Other non-current asset | 26,911,346.35 | 27,823,005.45 |
| Total of non-current assets | 2,342,738,979.67 | 2,351,686,103.51 |
| Total of assets | 3,107,935,776.42 | 3,128,773,203.85 |
| Current liabilities： | ||
| Short-term borrowing | ||
| Trading financial liabilities | ||
| Derivative financial liabilities | ||
| Notes payable | ||
| Account payable | 411,743.57 | 411,743.57 |
| Advance receipts | 540,673.07 | 540,673.07 |
| Contract liabilities | ||
| Employees’ wage payable | 13,036,827.06 | 15,810,919.71 |
| Tax payable | 3,613,447.07 | 3,115,369.56 |
| Other payable | 107,742,753.21 | 106,722,393.87 |
| Including：Interest payable | ||
| Dividend payable | 0.00 | 0.00 |
| Liabilities held for sale | ||
| Non-current liability due within 1 year | ||
| Other current liability | ||
| Total of current liability | 125,345,443.98 | 126,601,099.78 |
| Non-current liabilities： | ||
| Long-term borrowing | ||
| Bonds payable | ||
| Including: preferred stock | ||
| Perpetual bonds | ||
| Lease liabilities | ||
| Long-term payables | ||
| Long-term employee benefits payable | ||
| 27. Estimated liabilities | ||
| Deferred income | 150,000.00 | 200,000.00 |
| Deferred income tax liability | 40,628,383.59 | 40,855,186.12 |
| Other non-current liabilities | ||
| Total non-current liabilities | 40,778,383.59 | 41,055,186.12 |
| Total of liability | 166,123,827.57 | 167,656,285.90 |
| Owner's equity: | ||
| Share capital | 506,521,849.00 | 506,521,849.00 |
| Other equity instruments | ||
| Including: preferred stock | ||
| Perpetual bonds | ||
| Capital reserves | 1,577,392,975.96 | 1,577,392,975.96 |
| Less: treasury stock |
| Other comprehensive income | 83,514,005.75 | 83,629,830.81 |
| Special reserve | ||
| Special reserve | 104,262,315.64 | 104,262,315.64 |
| Retained profit | 670,120,802.50 | 689,309,946.54 |
| Total owner's equity | 2,941,811,948.85 | 2,961,116,917.95 |
| Total liabilities and owner's equity | 3,107,935,776.42 | 3,128,773,203.85 |
3. Consolidated income statement
In RMB
| Items | Semi-annual 2024 | Semi-annual 2023 |
| I. Total operating income | 1,623,384,151.90 | 1,490,095,669.55 |
| Including: Operating income | 1,623,384,151.90 | 1,490,095,669.55 |
| Interest income | ||
| Premiums earned | ||
| Income from service charges and commissions | ||
| II. Total operating cost | 1,509,523,068.26 | 1,412,490,369.86 |
| Including: Operating costs | 1,389,606,053.06 | 1,286,170,472.71 |
| Interest expenses | ||
| Expenditures of service charges and commissions | ||
| Surrender value | ||
| Net payments for insurance claims | ||
| Withdrawal of net provision for insurance contracts | ||
| Expenditure of policy dividend | ||
| Reinsurance costs | ||
| Business tax and surcharge | 4,614,482.79 | 4,397,329.78 |
| Sale expenses | 18,259,030.20 | 16,439,473.30 |
| Administrative expenses | 59,979,111.15 | 65,299,409.82 |
| R & D expenses | 47,870,863.46 | 36,004,188.62 |
| Financial expenses | -10,806,472.40 | 4,179,495.63 |
| Including：Interest expense | 11,411,878.99 | 13,965,081.41 |
| Interest income | 4,864,600.64 | 5,318,571.16 |
| Add: Other income | 18,891,082.37 | 19,369,307.55 |
| Investment income ("-" for losses) | 3,206,756.62 | 7,743,354.69 |
| Including: income from investment in associates and joint ventures | -4,247,734.12 | -2,111,260.03 |
| Financial assets measured at amortized cost cease to be recognized as income |
| Foreign exchange gains ("-" for losses) | ||
| Net exposure hedging income ("-" for losses) | ||
| Gains from changes in fair value ("-" for losses) | 1,283,637.11 | 0.00 |
| Credit impairment losses ("-" for losses) | -8,275,241.40 | -8,669,369.85 |
| Asset impairment losses ("-" for losses) | -48,933,632.55 | -35,512,897.29 |
| Asset disposal income ("-" for losses) | 0.00 | 321.08 |
| 3. Operating profits ("-" for losses) | 80,033,685.79 | 60,536,015.87 |
| Add：Non-Operating income | 162,935.79 | 401,387.79 |
| Less：Non-Operating expenses | 2,311,469.51 | 3,037,581.05 |
| 4. Total profits ("-" for total losses) | 77,885,152.07 | 57,899,822.61 |
| Less：Income tax expenses | 11,082,190.34 | 5,713,017.38 |
| 5. Net profits ("-" for net losses) | 66,802,961.73 | 52,186,805.23 |
| (I) Classified by operating sustainability | ||
| 1. Net profit from continuing operations ("-" for net losses) | 66,802,961.73 | 52,186,805.23 |
| 2. Net profit from discontinued operations ("-" for net losses) | ||
| (II) Classified by attribution of the ownership | ||
| 1. Net profit attributable to shareholders of the parent company ("-" for net losses) | 43,894,075.23 | 36,307,162.97 |
| 2. Minority interest income ("-" for net losses) | 22,908,886.50 | 15,879,642.26 |
| VI. Net of tax from other comprehensive income | -115,825.06 | 352,684.20 |
| OCI attributable to owners of the parent company | -115,825.06 | 233,590.80 |
| (I) Other comprehensive incomes that cannot be reclassified into profit and loss | 0.00 | 0.00 |
| 1. Changes in re-measurement of the defined benefit plan | 0.00 | 0.00 |
| 2. Other comprehensive income that cannot be transferred to profit or loss under the equity method | 0.00 | 0.00 |
| 3. Changes in the fair value of investments in other equity instruments | 0.00 | 0.00 |
| 4. Changes in the fair value of the company’s credit risks | 0.00 | 0.00 |
| 5. Other | 0.00 | 0.00 |
| (II) Other comprehensive income that can be re-classified into profit and loss | -115,825.06 | 233,590.80 |
| 1.Other comprehensive income under the equity method investee can be reclassified into profit or loss. | 0.00 | 0.00 |
| 2. Changes in the fair value of investments in other debt obligations | 0.00 | 178,640.10 |
| 3. Other comprehensive income arising from the reclassification of financial assets | ||
| 4. Credit impairment reserves of other debt investment | ||
| 5. Cash flow hedge reserve | 0.00 | 0.00 |
| 6. Translation difference of foreign currency financial statements | -115,825.06 | 54,950.70 |
| 7.Other | 0.00 | 0.00 |
| Net of profit of other comprehensive income attributable to Minority shareholders’ equity | 0.00 | 119,093.40 |
| VII. Total comprehensive income | 66,687,136.67 | 52,539,489.43 |
| Total comprehensive income attributable to owners of the parent company | 43,778,250.17 | 36,540,753.77 |
| Total comprehensive income attributable minority shareholders | 22,908,886.50 | 15,998,735.66 |
| VIII. Earnings per share: | ||
| (I) Basic earnings per share | 0.0867 | 0.0717 |
| (II) Diluted earnings per share | 0.0867 | 0.0717 |
In the current period, for business combinations under common control, the net profit realized by the entity beingmerged before the combination was: RMB 0.00, and the net profit realized by the entity being merged in the previousperiod was: RMB 0.00.Legal representative: Yin Kefei Principal in charge of accounting: Liu Yu Principal of accounting agency: HuangMin
4. Profit Statement of Parent Company
In RMB
| Items | Semi-annual 2024 | Semi-annual 2023 |
| 1. Operating income | 37,598,506.94 | 39,239,619.43 |
| Less: Operating cost | 4,849,806.55 | 4,156,707.01 |
| Business tax and surcharge | 1,557,197.01 | 1,518,980.53 |
| Sale expenses | 28,576.00 | 103,182.40 |
| Administrative expenses | 18,630,597.44 | 24,244,619.96 |
| R & D expenses | 0.00 | 0.00 |
| Financial expenses | -1,041,915.34 | -1,137,285.05 |
| Including：Interest expense | 5,709.68 | 10,480.78 |
| Interest income | 1,142,495.37 | 1,206,551.01 |
| Add: Other income | 114,150.75 | 103,012.52 |
| Investment income ("-" for losses) | 4,103,395.00 | 7,701,351.64 |
| Including: income from investment in associates and joint ventures | -4,247,734.12 | -2,111,260.03 |
| Gains from derecognition of financial assets measured at amortized cost ("-" for losses) | ||
| Net exposure hedging income ("-" for losses) | ||
| Gains from changes in fair value ("-" for losses) | 257,446.36 | 0.00 |
| Credit impairment losses ("-" for losses) | -11,329.80 | -38,616.99 |
| Asset impairment losses ("-" for losses) | 0.00 | 0.00 |
| Asset disposal income ("-" for losses) | 0.00 | 0.00 |
| 2. Operating profits ("-" for losses) | 18,037,907.59 | 18,119,161.75 |
| Add：Non-Operating income | 0.00 | 0.00 |
| Less：Non-Operating expenses | 18,097.45 | 263.13 |
| 3. Total profits ("-" for total losses) | 18,019,810.14 | 18,118,898.62 |
| Less：Income tax expenses | 4,285,037.46 | 4,446,788.74 |
| 4. Net profits ("-" for net losses) | 13,734,772.68 | 13,672,109.88 |
| (1) Net profit from continuing operations ("-" for net losses) | 13,734,772.68 | 13,672,109.88 |
| (2) Net profit from discontinued operations ("-" for net losses) | ||
| V. Net after-tax of other comprehensive income | -115,825.06 | 54,950.70 |
| (I) Other comprehensive incomes that cannot be reclassified into profit and loss | 0.00 | 0.00 |
| 1. Changes in re-measurement of the defined benefit plan | ||
| 2. Other comprehensive income that cannot be transferred to profit or loss under the equity method | ||
| 3. Changes in the fair value of investments in other equity instruments | ||
| 4. Changes in the fair value of the company’s credit risks | ||
| 5. Other | ||
| (II) Other comprehensive income that can be re-classified into profit and loss | -115,825.06 | 54,950.70 |
| 1.Other comprehensive income under the equity method investee can be reclassified into profit or loss. | 0.00 | 0.00 |
| 2. Changes in the fair value of investments in other debt obligations | 0.00 | 0.00 |
| 3. Other comprehensive income arising from the reclassification of financial assets | ||
| 4. Credit impairment reserves |
| of other debt investment | ||
| 5. Cash flow hedge reserve | 0.00 | 0.00 |
| 6. Translation difference of foreign currency financial statements | -115,825.06 | 54,950.70 |
| 7.Other | 0.00 | 0.00 |
| VI. Total comprehensive income | 13,618,947.62 | 13,727,060.58 |
| VII. Earnings per share: | ||
| (I) Basic earnings per share | ||
| (II) Diluted earnings per share |
5. Consolidated Cash Flow Statement
In RMB
| Items | Semi-annual 2024 | Semi-annual 2023 |
| I.Cash flows from operating activities | ||
| Cash received from sales of goods or rending of services | 1,485,990,801.73 | 1,289,316,287.70 |
| Net increase in deposits from customers and interbank | ||
| Net increase in borrowings from the central bank | ||
| Net increase in funds borrowed from other financial institutions | ||
| Cash received for premiums under the original insurance contract | ||
| Net cash received from reinsurance business | ||
| Net increase in deposits from the insured and investment funds | ||
| Cash received for interest, service charges and commissions | ||
| Net increase in borrowed funds | ||
| Net increase in funds of repurchasing business | ||
| Net cash received from vicariously traded securities | ||
| Tax returned | 6,793,213.50 | 2,508,619.13 |
| Other cash received from business operation | 56,983,404.25 | 77,994,829.70 |
| Subtotal of cash inflow received from operation activities | 1,549,767,419.48 | 1,369,819,736.53 |
| Cash paid for purchasing of merchandise and services | 1,347,905,854.18 | 1,119,566,064.13 |
| Net increase in loans and advances to customers | ||
| Net increase in deposits in the central bank and deposits from interbank | ||
| Cash paid for the compensation under the original insurance contract | ||
| Net increase in lending funds | ||
| Cash paid for interest, service |
| charges and commissions | ||
| Cash paid for policy dividends | ||
| Cash paid to staffs or paid for staffs | 124,223,211.21 | 132,029,182.07 |
| Taxes paid | 15,045,793.07 | 25,728,838.24 |
| Other cash paid for business activities | 50,757,711.08 | 78,092,678.49 |
| Subtotal of cash outflow received from operation activities | 1,537,932,569.54 | 1,355,416,762.93 |
| Net cash flow arising from operating activities | 11,834,849.94 | 14,402,973.60 |
| II. Cash flow generated by investing | ||
| Cash received from investment retrieving | 0.00 | 0.00 |
| Cash received as investment gains | 7,303,767.71 | 1,456,000.00 |
| Net cash retrieved from disposal of fixed assets, intangible assets, and other long-term assets | 0.00 | 7,050.00 |
| Net cash received from disposal of subsidiaries or other operational units | 0.00 | 0.00 |
| Other investment-related cash received | 965,100,513.30 | 195,000,000.00 |
| Subtotal of cash inflow received from investing activities | 972,404,281.01 | 196,463,050.00 |
| Cash paid to acquire and construct fixed assets, intangible assets and other long-term assets | 6,988,462.82 | 13,286,475.07 |
| Cash paid as investment | 0.00 | 0.00 |
| Net increase in pledged loans | 0.00 | 0.00 |
| Net cash received from subsidiaries and other operational units | 0.00 | 0.00 |
| Other cash paid for investment activities | 1,099,000,000.00 | 631,537,000.00 |
| Subtotal of cash outflow for investment activities | 1,105,988,462.82 | 644,823,475.07 |
| Net cash flow arising from investment activities | -133,584,181.81 | -448,360,425.07 |
| III.Cash flow generated by financing | ||
| Cash received as investment | 0.00 | 0.00 |
| Including: Cash received as investment from minor shareholders | 0.00 | 0.00 |
| Cash received as loans | 257,600.00 | 3,000,000.00 |
| Other financing –related cash received | 0.00 | 0.00 |
| Subtotal cash inflow received from financing activities | 257,600.00 | 3,000,000.00 |
| Cash to repay debts | 58,921,670.00 | 49,284,364.34 |
| Cash paid as dividend, profit, or interests | 44,157,958.67 | 44,088,760.65 |
| Including: Dividends and profits paid by subsidiaries to minority shareholders | 0.00 | 0.00 |
| Other cash paid for financing activities | 6,463,136.37 | 4,141,770.57 |
| Subtotal cash outflow for financing | 109,542,765.04 | 97,514,895.56 |
| activities | ||
| Net cash flow arising from financing activities | -109,285,165.04 | -94,514,895.56 |
| IV. Influence of exchange rate alternation on cash and cash equivalents | -6,440,394.95 | -318,751.44 |
| V. Net increase in cash and cash equivalents | -237,474,891.86 | -528,791,098.47 |
| Add: opening balance of cash and cash equivalents | 461,420,457.33 | 874,474,834.46 |
| VI. Closing balance of cash and cash equivalents | 223,945,565.47 | 345,683,735.99 |
6. Cash Flow Statement of Parent Company
In RMB
| Items | Semi-annual 2024 | Semi-annual 2023 |
| I.Cash flows from operating activities | ||
| Cash received from sales of goods or rending of services | 40,534,005.59 | 39,612,023.57 |
| Tax returned | 67,999.80 | 1,636,664.57 |
| Other cash received from business operation | 4,967,943.81 | 1,679,622.51 |
| Subtotal of cash inflow received from operation activities | 45,569,949.20 | 42,928,310.65 |
| Cash paid for purchasing of merchandise and services | 1,110,239.45 | 6,111,142.09 |
| Cash paid to staffs or paid for staffs | 19,875,978.31 | 22,248,006.25 |
| Taxes paid | 8,337,487.47 | 12,755,344.10 |
| Other cash paid for business activities | 18,437,225.42 | 3,654,514.20 |
| Subtotal of cash outflow received from operation activities | 47,760,930.65 | 44,769,006.64 |
| Net cash flow arising from operating activities | -2,190,981.45 | -1,840,695.99 |
| II. Cash flow generated by investing | ||
| Cash received from investment retrieving | 0.00 | 0.00 |
| Cash received as investment gains | 9,003,767.71 | 1,456,000.00 |
| Net cash retrieved from disposal of fixed assets, intangible assets, and other long-term assets | 0.00 | 0.00 |
| Net cash received from disposal of subsidiaries or other operational units | 0.00 | 0.00 |
| Other investment-related cash received | 885,100,513.30 | 135,000,000.00 |
| Subtotal of cash inflow received from investing activities | 894,104,281.01 | 136,456,000.00 |
| Cash paid to acquire and construct fixed assets, intangible assets and other long-term assets | 1,288,821.77 | 512,293.90 |
| Cash paid as investment | ||
| Net cash received from subsidiaries and other operational units |
| Other cash paid for investment activities | 850,000,000.00 | 401,537,000.00 |
| Subtotal of cash outflow for investment activities | 851,288,821.77 | 402,049,293.90 |
| Net cash flow arising from investment activities | 42,815,459.24 | -265,593,293.90 |
| III.Cash flow generated by financing | ||
| Cash received as investment | ||
| Cash received as loans | 257,600.00 | 0.00 |
| Other financing –related cash received | 1,585,151.73 | 0.00 |
| Subtotal cash inflow received from financing activities | 1,842,751.73 | 0.00 |
| Cash to repay debts | 0.00 | 0.00 |
| Cash paid as dividend, profit, or interests | 32,923,916.72 | 30,406,699.21 |
| Other cash paid for financing activities | 0.00 | 0.00 |
| Subtotal cash outflow for financing activities | 32,923,916.72 | 30,406,699.21 |
| Net cash flow arising from financing activities | -31,081,164.99 | -30,406,699.21 |
| IV. Influence of exchange rate alternation on cash and cash equivalents | 364.54 | -27,939.81 |
| V. Net increase in cash and cash equivalents | 9,543,677.34 | -297,868,628.91 |
| Add: opening balance of cash and cash equivalents | 9,125,800.27 | 310,322,528.19 |
| VI. Closing balance of cash and cash equivalents | 18,669,477.61 | 12,453,899.28 |
7. Consolidated Statement of Changes in Owner’s Equity
Amount in current period
In RMB
| Items | Semi-annual 2024 | ||||||||||||||
| Equity attributable to owners of the parent company | Minority shareholders’ equity | Total owner's equity | |||||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: treasury stock | Other comprehensive income | Special reserve | Special reserve | General risk provisions | Retained profit | Other | Subtotal | |||||
| Preferred stock | Perpetual bonds | Other | |||||||||||||
| 1. Balance at the end of the previous year | 506,521,849.00 | 1,961,599,824.63 | 93,607,380.81 | 104,262,315.64 | 216,160,896.14 | 2,882,152,266.22 | 1,229,765,091.74 | 4,111,917,357.96 | |||||||
| Add: Change of | 0.00 | 0.00 | 0.00 | ||||||||||||
| accounting policy | |||||||||||||||
| Correcting of previous errors | 0.00 | 0.00 | 0.00 | ||||||||||||
| Other | 0.00 | 0.00 | 0.00 | ||||||||||||
| 2. Balance at the beginning of the current year | 506,521,849.00 | 0.00 | 0.00 | 0.00 | 1,961,599,824.63 | 0.00 | 93,607,380.81 | 0.00 | 104,262,315.64 | 0.00 | 216,160,896.14 | 0.00 | 2,882,152,266.22 | 1,229,765,091.74 | 4,111,917,357.96 |
| 3. Changes in increase/decrease in the current period ("-" for decrease) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -115,825.06 | 0.00 | 0.00 | 0.00 | 10,970,158.51 | 0.00 | 10,854,333.45 | 22,908,886.50 | 33,763,219.95 |
| (I) Total comprehensive income | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -115,825.06 | 0.00 | 0.00 | 0.00 | 43,894,075.23 | 0.00 | 43,778,250.17 | 22,908,886.50 | 66,687,136.67 |
| (II) Contribution and withdrawal of capital by owners | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 1. Common stock contributed by owners | 0.00 | 0.00 | 0.00 | ||||||||||||
| 2. Capital invested by holders of other equity instruments | 0.00 | 0.00 | |||||||||||||
| 3. Share-based payment recognized in owners' equity | 0.00 | 0.00 | |||||||||||||
| 4. Others | 0.00 | 0.00 | |||||||||||||
| (III) Profit distribution | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -32,923,916.7 | 0.00 | -32,923,916.7 | 0.00 | -32,923,916.7 |
| 2 | 2 | 2 | |||||||||||||
| 1. Withdrawal of surplus reserve | 0.00 | 0.00 | |||||||||||||
| 2. Withdrawal of general risk reserves | 0.00 | 0.00 | |||||||||||||
| 3. Distribution to owners (or shareholders) | -32,923,916.72 | -32,923,916.72 | -32,923,916.72 | ||||||||||||
| 4. Others | 0.00 | 0.00 | |||||||||||||
| (4) Internal carry-forward of owners' equity | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 1. Capital reserve transferred to paid-in capital (or share capital) | 0.00 | 0.00 | |||||||||||||
| 2. Surplus reserve transferred to paid-in capital (or share capital) | 0.00 | 0.00 | |||||||||||||
| 3．Making up losses by surplus reserves. | 0.00 | 0.00 | |||||||||||||
| 4. Changes in defined benefit plans carried forward to retained earnings | 0.00 | 0.00 | |||||||||||||
| 5. Other comprehensive income transferred to retained | 0.00 | 0.00 |
| earnings | |||||||||||||||
| 6. Others | 0.00 | 0.00 | |||||||||||||
| (V) Special reserves | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 1. Withdrawal in the current period | 0.00 | 0.00 | 0.00 | ||||||||||||
| 2. Utilization in the current period | 0.00 | 0.00 | 0.00 | ||||||||||||
| (VI) Others | 0.00 | 0.00 | 0.00 | 0.00 | |||||||||||
| 4. Balance at the end of the current period | 506,521,849.00 | 0.00 | 0.00 | 0.00 | 1,961,599,824.63 | 0.00 | 93,491,555.75 | 0.00 | 104,262,315.64 | 0.00 | 227,131,054.65 | 0.00 | 2,893,006,599.67 | 1,252,673,978.24 | 4,145,680,577.91 |
Year 2023
In RMB
| Items | Semi-annual 2023 | ||||||||||||||
| Equity attributable to owners of the parent company | Minority shareholders’ equity | Total owner's equity | |||||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: treasury stock | Other comprehensive income | Special reserve | Special reserve | General risk provisions | Retained profit | Other | Subtotal | |||||
| Preferred stock | Perpetual bonds | Other | |||||||||||||
| 1. Balance at the end of the previous year | 506,521,849.00 | 0.00 | 0.00 | 0.00 | 1,961,599,824.63 | 0.00 | 109,596,609.31 | 0.00 | 100,909,661.32 | 0.00 | 170,636,610.95 | 0.00 | 2,849,264,555.21 | 1,181,777,770.21 | 4,031,042,325.42 |
| Add: Change of accounting policy | 0.00 | 0.00 | 0.00 | ||||||||||||
| Correcting of previous errors | 0.00 | 0.00 | 0.00 | ||||||||||||
| Other | 0.00 | 0.00 | 0.00 | ||||||||||||
| 2. Balance at the beginning of | 506,521,8 | 0.00 | 0.00 | 0.00 | 1,961,599 | 0.00 | 109,596,6 | 0.00 | 100,909,6 | 0.00 | 170,636,6 | 0.00 | 2,849,264 | 1,181,777 | 4,031,042 |
| the current year | 49.00 | ,824.63 | 09.31 | 61.32 | 10.95 | ,555.21 | ,770.21 | ,325.42 | |||||||
| 3. Changes in increase/decrease in the current period ("-" for decrease) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 233,590.80 | 0.00 | 0.00 | 0.00 | 5,915,852.03 | 0.00 | 6,149,442.83 | 15,998,735.66 | 22,148,178.49 |
| (I) Total comprehensive income | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 233,590.80 | 0.00 | 0.00 | 0.00 | 36,307,162.97 | 0.00 | 36,540,753.77 | 15,998,735.66 | 52,539,489.43 |
| (II) Contribution and withdrawal of capital by owners | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 1. Common stock contributed by owners | 0.00 | 0.00 | 0.00 | ||||||||||||
| 2. Capital invested by holders of other equity instruments | 0.00 | 0.00 | |||||||||||||
| 3. Share-based payment recognized in owners' equity | 0.00 | 0.00 | |||||||||||||
| 4. Others | 0.00 | 0.00 | |||||||||||||
| (III) Profit distribution | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -30,391,310.94 | 0.00 | -30,391,310.94 | 0.00 | -30,391,310.94 |
| 1. Withdrawal of surplus reserve | 0.00 | 0.00 | |||||||||||||
| 2. Withdrawal of general risk reserves | 0.00 | 0.00 | |||||||||||||
| 3. | - | - | - |
| Distribution to owners (or shareholders) | 30,391,310.94 | 30,391,310.94 | 30,391,310.94 | ||||||||||||
| 4. Others | 0.00 | 0.00 | |||||||||||||
| (4) Internal carry-forward of owners' equity | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 1. Capital reserve transferred to paid-in capital (or share capital) | 0.00 | 0.00 | |||||||||||||
| 2. Surplus reserve transferred to paid-in capital (or share capital) | 0.00 | 0.00 | |||||||||||||
| 3．Making up losses by surplus reserves. | 0.00 | 0.00 | |||||||||||||
| 4. Changes in defined benefit plans carried forward to retained earnings | 0.00 | 0.00 | |||||||||||||
| 5. Other comprehensive income transferred to retained earnings | 0.00 | 0.00 | |||||||||||||
| 6. Others | 0.00 | 0.00 | |||||||||||||
| (V) Special reserves | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 1. Withdrawal in the current period | 0.00 | 0.00 | 0.00 | ||||||||||||
| 2. Utilization | 0.00 | 0.00 | 0.00 |
| in the current period | |||||||||||||||
| (VI) Others | 0.00 | 0.00 | 0.00 | ||||||||||||
| 4. Balance at the end of the current period | 506,521,849.00 | 0.00 | 0.00 | 0.00 | 1,961,599,824.63 | 0.00 | 109,830,200.11 | 0.00 | 100,909,661.32 | 0.00 | 176,552,462.98 | 0.00 | 2,855,413,998.04 | 1,197,776,505.87 | 4,053,190,503.91 |
8. Variation of equity attributable to owners of the parent company
Amount in current period
In RMB
| Items | Semi-annual 2024 | |||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: treasury stock | Other comprehensive income | Special reserve | Special reserve | Retained profit | Other | Total owner's equity | |||
| Preferred stock | Perpetual bonds | Other | ||||||||||
| 1. Balance at the end of the previous year | 506,521,849.00 | 0.00 | 0.00 | 0.00 | 1,577,392,975.96 | 0.00 | 83,629,830.81 | 0.00 | 104,262,315.64 | 689,309,946.54 | 2,961,116,917.95 | |
| Add: Change of accounting policy | 0.00 | |||||||||||
| Correcting of previous errors | 0.00 | |||||||||||
| Other | 0.00 | |||||||||||
| 2. Balance at the beginning of the current year | 506,521,849.00 | 0.00 | 0.00 | 0.00 | 1,577,392,975.96 | 0.00 | 83,629,830.81 | 0.00 | 104,262,315.64 | 689,309,946.54 | 0.00 | 2,961,116,917.95 |
| 3. Changes in increase/decrease in the current period ("-" for decrease) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -115,825.06 | 0.00 | 0.00 | -19,189,144.04 | 0.00 | -19,304,969.10 |
| (I) Total | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -115,8 | 0.00 | 0.00 | 13,734,772 | 0.00 | 13,618,947 |
| comprehensive income | 25.06 | .68 | .62 | |||||||||
| (II) Contribution and withdrawal of capital by owners | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 1. Common stock contributed by owners | 0.00 | |||||||||||
| 2. Capital invested by holders of other equity instruments | 0.00 | |||||||||||
| 3. Share-based payment recognized in owners' equity | 0.00 | |||||||||||
| 4. Others | 0.00 | |||||||||||
| (III) Profit distribution | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -32,923,916.72 | 0.00 | -32,923,916.72 |
| 1. Withdrawal of surplus reserve | 0.00 | |||||||||||
| 2. Distribution to owners (or shareholders) | -32,923,916.72 | -32,923,916.72 | ||||||||||
| 3．Other | 0.00 | |||||||||||
| (4) Internal carry-forward of owners' equity | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 1. Capital reserve transferred to paid-in capital (or share capital) | 0.00 | |||||||||||
| 2. Surplus reserve transferred | 0.00 |
| to paid-in capital (or share capital) | ||||||||||||
| 3．Making up losses by surplus reserves. | 0.00 | |||||||||||
| 4. Changes in defined benefit plans carried forward to retained earnings | 0.00 | |||||||||||
| 5. Other comprehensive income transferred to retained earnings | 0.00 | |||||||||||
| 6. Others | 0.00 | |||||||||||
| (V) Special reserves | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 1. Withdrawal in the current period | 0.00 | |||||||||||
| 2. Utilization in the current period | 0.00 | |||||||||||
| (VI) Others | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 4. Balance at the end of the current period | 506,521,849.00 | 0.00 | 0.00 | 0.00 | 1,577,392,975.96 | 0.00 | 83,514,005.75 | 0.00 | 104,262,315.64 | 670,120,802.50 | 0.00 | 2,941,811,948.85 |
Year 2023
In RMB
| Items | Semi-annual 2023 | |||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: treasury stock | Other comprehensive income | Special reserve | Special reserve | Retained profit | Other | Total owner's equity | |||
| Preferred stock | Perpetual bonds | Other | ||||||||||
| 1. Balance at the end of the | 506,521,849.00 | 0.00 | 0.00 | 0.00 | 1,577,392,975.9 | 0.00 | 98,855,668.75 | 0.00 | 100,909,661.32 | 689,527,368.58 | 2,973,207,523.6 | |
| previous year | 6 | 1 | ||||||||||
| Add: Change of accounting policy | 0.00 | |||||||||||
| Correcting of previous errors | 0.00 | |||||||||||
| Other | 0.00 | |||||||||||
| 2. Balance at the beginning of the current year | 506,521,849.00 | 0.00 | 0.00 | 0.00 | 1,577,392,975.96 | 0.00 | 98,855,668.75 | 0.00 | 100,909,661.32 | 689,527,368.58 | 0.00 | 2,973,207,523.61 |
| 3. Changes in increase/decrease in the current period ("-" for decrease) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 54,950.70 | 0.00 | 0.00 | -16,719,201.06 | 0.00 | -16,664,250.36 |
| (I) Total comprehensive income | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 54,950.70 | 0.00 | 0.00 | 13,672,109.88 | 0.00 | 13,727,060.58 |
| (II) Contribution and withdrawal of capital by owners | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 1. Common stock contributed by owners | 0.00 | |||||||||||
| 2. Capital invested by holders of other equity instruments | 0.00 | |||||||||||
| 3. Share-based payment recognized in owners' equity | 0.00 | |||||||||||
| 4. Others | 0.00 | |||||||||||
| (III) Profit distribution | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -30,391,310.94 | 0.00 | -30,391,310.94 |
| 1. Withdrawal of surplus reserve | 0.00 | |||||||||||
| 2. Distribution to owners (or shareholders) | -30,391,310.94 | -30,391,310.94 | ||||||||||
| 3．Other | 0.00 | |||||||||||
| (4) Internal carry-forward of owners' equity | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 1. Capital reserve transferred to paid-in capital (or share capital) | 0.00 | |||||||||||
| 2. Surplus reserve transferred to paid-in capital (or share capital) | 0.00 | |||||||||||
| 3．Making up losses by surplus reserves. | 0.00 | |||||||||||
| 4. Changes in defined benefit plans carried forward to retained earnings | 0.00 | |||||||||||
| 5. Other comprehensive income transferred to retained earnings | 0.00 | |||||||||||
| 6. Others | 0.00 | |||||||||||
| (V) Special reserves | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 1. Withdrawal in the | 0.00 |
| current period | ||||||||||||
| 2. Utilization in the current period | 0.00 | |||||||||||
| (VI) Others | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 4. Balance at the end of the current period | 506,521,849.00 | 0.00 | 0.00 | 0.00 | 1,577,392,975.96 | 0.00 | 98,910,619.45 | 0.00 | 100,909,661.32 | 672,808,167.52 | 0.00 | 2,956,543,273.25 |
3. Company profile
Shenzhen Textile (Holdings) Co., Ltd (hereinafter referred to as "the Company") is a company limited by sharesregistered in Guangdong Province, formerly known as Shenzhen Textile Industry Company and established in 1984.The Company was listed on the Shenzhen Stock Exchange in August 1994. The Company publicly issued RMBordinary shares (A shares) and domestic listed foreign capital shares (B shares) to the domestic and foreign publicrespectively and listed them for trading.Headquartered in Shenzhen, Guangdong Province, the main business of the Company and its subsidiaries(hereinafter referred to as "the Group") includes the research and development, production and marketing of polarizersfor liquid crystal display, as well as property management business mainly located in the prosperous commercial areaof Shenzhen and textile and garment business.
The consolidated and parent company financial statements have been approved by the Board of Directors of theCompany on August 21, 2024.
4. Preparation Basis of Financial Statements
1. Basis of preparation
The Group implements the accounting standards for enterprises and related regulations promulgated by theMinistry of Finance. In addition, the Group also discloses relevant financial information in accordance with the No. 15Compilation Rules for Disclosure of Information by Companies ofIssuing Securities to the Public-General Provisionsfor Financial Reporting (2023 Revision).
2. Going concern
The Group evaluated its ability to continue as a going concern for the 12 months from June 30, 2024 and found nomatters or circumstances that raised significant doubts about its ability to continue as a going concern. Accordingly,the present financial reporthas been prepared on the basis of going concern assumptions.
5. Important accounting policies and estimates
Tips on specific accounting policies and accounting estimates:
The Group's accounting is based on the accrual basis. Except for certain financial instruments-which aremeasured at fair value, the financial reportusesthe historical cost as the measurement basis. If the asset is impaired,the corresponding impairment provision will be made in accordance with the relevant regulations.Under historical cost measurement, an asset is measured at the fair value of the amount of cash or cashequivalents paid or the consideration paidat the time of acquisition. Liabilities are measured by the amount of moneyor assets actually received as a result of the present obligation is assumed, or the contractual amount of the presentobligation is incurred, or the amount of cash or cash equivalents expected to be paid in the ordinary course of life torepay the liability.Fair value is the price that market participants shall have to receive for the sale of an asset or shall to pay for atransfer of a liability in an orderly transaction that occurs on the measurement date. Whether the fair value isobservable or estimated using valuation techniques, the fair value measured and disclosed in this financial report isdetermined on that basis.For financial assets that use the transaction price as the fair value at the time of initial recognition, and a valuationtechnique involving unobservable inputs is used in subsequent measures of fair value, the valuation technique iscorrected during the valuation process so that the initial recognition result determined by the valuation technique isequal to the transaction price.
Fair value measurement is divided into three levels as to the observability of fair value inputs, and the importanceof such inputs to fair value measurement as a value inputs, and the importance of such inputs to fair valuemeasurement as a whole:
The first level of input is the unadjusted quotation of the same asset or liability in an active market that can beobtained at the measurement date.
The second-level input value is the input value that is directly or indirectly observable for the underlying asset orliability in addition to the first-level input.
The third level input value is the unobservable input value of the underlying asset or liability.
1. Statement of Compliance with Accounting Standard for Business Enterprises
The financial report prepared by the Company complies with the requirements of the Accounting Standards forBusiness Enterprises and truly and completely reflects the consolidated and parent financial position of the Companyas of June 30, 2024 and the consolidated and parent operating results, the consolidated and parent shareholders'equity changes and the consolidated and parent cash flows for 2024 semi-year.
2. Accounting period
The fiscal year of the Company is the Gregorian calendar year, i.e. from January 1 to December 31 of each year.
3. Operating cycle
The operating cycle is the period from the time an enterprise purchases an asset for processing to the realizationof cash or cash equivalents. The Company's business cycle is 12 months.
4. Functional currency
RMB is the currency in the main economic environment in which the Company and its domestic subsidiariesoperate, and the Company and its domestic subsidiaries use RMB as the base accounting currency. The overseas
subsidiaries of the Company determine RMB as their base accounting currency according to the currency of the maineconomic environment in which they operate. The currency used by the Company in the preparation of this financialreport is RMB.
5. Determination method and selection basis of materiality criteria
?√Applicable □Not applicable
| Items | Material criteria |
| Receivables for a significant single provision for bad debts | The proportion of individual item exceeds 0.5% of total assets |
| Important accounts receivable for the recovery or reversal of bad debt reserves |
The amount of single recovery or reversal accounts formore than 10% of the total amount of recovery or reversalof bad debt reserves of corresponding receivables, andthe amount exceeds RMB 10 million
| Significant prepayments that are more than 1 year old | The proportion of individual item exceeds 0.5% of total assets |
| Important accounts payable, account collected in advance, contract liabilities, and other payables that are over one year old | The proportion of individual item exceeds 0.5% of total assets |
| Cash received in connection with significant investment activities | Amount exceeding RMB 50 million |
| Payments of cash in connection with significant investment activities | Amount exceeding RMB 50 million |
| Significant non-wholly owned subsidiary | More than 10% of total assets, or total revenues or total profits |
| Significant joint ventures or associates | Net assets account for more than 5% |
6. Accounting treatment methods of business merger under the common control and notunder the common control
Business combinations are divided into business combinations under common control and business combinationsunder non-common control.
6.1 Business combinations under common control
The enterprises participating in the merger are ultimately controlled by the same party or multiple parties beforeand after the merger, and the control is not temporary, therefore it is a business combination under the commoncontrol.
Assets and liabilities acquired in a business combination are measured at their carrying value on the consolidatedparty at the date of consolidation. The difference between the carrying amount of net assets acquired by the mergingparty and the carrying amount of the merger consideration paid is adjusted for the equity premium in the capitalreserve or for retained earnings if the equity premium is insufficient to be offset.
Direct expenses incurred in connection with the business combination are recognized in profit or loss for theperiod when incurred.
6.2 Business combinations and goodwill under non-common control
The enterprises participating in a merger are not ultimately controlled by the same party or multiple parties beforeand after the merger, therefore it is a business combination under non-common control.Consolidation cost is the fair value of assets paid, liabilities incurred or assumed and equity instruments issued togain control of the acquired partyby the purchaser. Intermediary fees such as auditing, legal services, valuationconsulting and other related management expenses incurred by the purchaser for the business combination arerecognized in the profit or loss of the period when incurred.The identifiable assets, liabilities and contingent liabilities of the acquiree that are eligible for recognition acquiredby the purchaser in the merger are measured at fair value at the date of purchase.The excess of the cost of the combination over the fair value of the acquirer's share of the identifiable net assetsacquired is recognized, as an asset, as goodwill and initially measured at cost. If the cost of the merger is less than thefair value share of the acquiree's identifiable net assets acquired in the merger, the fair value of the acquiredacquiree's identifiable assets, liabilities and contingent liabilities and the measurement of the cost of the merger arefirst reviewed, and if the consolidated cost after review is still less than the fair value share of the acquiree's identifiablenet assets share acquired in the merger, which shall be included in profit or loss for the periodoccurred.Goodwill resulting from business combinations is presented separately in the consolidated financial statement andmeasured at cost less accumulated impairment provisions.
7. Control criteria and preparation method of consolidated financial statements
7.1 Criteria for control judgment
Control means that the investor has the power over the investee, enjoys variable returns by participating in therelated activities of the investee, and has the ability to influence the amount of returns by using the power over theinvestee. The Group will reassess the relevant elements involved in the above definition of controls as a result ofchanges in the relevant facts and circumstances.
7.2. Methodology for the preparation of consolidated financial statement
The consolidated scope of the consolidated financial statement is determined on a control basis.
The merger of subsidiaries begins when the Group acquires control of the subsidiary and terminates when theGroup loses control of the subsidiary.
For subsidiaries disposed of by the Group, the results of operations and cash flows prior to the date of disposal(the date of loss of control) have been duly included in the consolidated statement of income and the consolidatedstatement of cash flows.
For subsidiaries acquired through a business combination under non-common control, the results of operationsand cash flows from the date of purchase (the date of acquisition of control) have been appropriately included in theconsolidated statement of income and the consolidated statement of cash flows.
For subsidiaries acquired through a business combination under common control, regardless of when thebusiness combination takes place in any point of the reporting period, the subsidiary shall be deemed to be included inthe scope of the Group's consolidation on the date on which the subsidiary is under the control of the ultimatecontrolling party, the results of operations and cash flows from the beginning of the earliest period of the reportingperiod are duly included in the consolidated income statement and the consolidated statement of cash flows.The principal accounting policies and the accounting periods adopted by the subsidiaries are determined inaccordance with the accounting policies and accounting periods uniformly prescribed by the Company.The impact of the Company's internal transactions with its subsidiaries and between subsidiaries on theconsolidated financial statement is offset at the time of consolidation.The shares of the subsidiary's ownership interest that are not part of the parent company are shown as minorityinterests under the item "minority interests" under the item on shareholders' equity in the consolidated balance sheet.The shares of the subsidiary's net profit or loss for the period that belongs to minority interests is shown under the item"minority profit and loss" under the net profit item in the consolidated statement of income.The minority shareholders’ share of the subsidiary's losses exceeds the minority shareholders’ share ofownership interest enjoyed in the beginning of the period, and its balance is still offset by the minority shareholders’equity.
For transactions that purchase minority stakes in a subsidiary or dispose of part of the equity investment withoutlosing control of the subsidiary, it’s accounted as equity transactions, and the carrying amount of the owner's interestand minority interest attributable to the parent company is adjusted to reflect their change in the relevant interest in thesubsidiary. The difference between the adjustment of minority interests and the fair value of the considerationpaid/received is adjusted to the capital reserve, and if the capital reserve is insufficient to offset it, then it’s adjustedto the retained earnings.
8. Classification of joint venture arrangements and accounting treatment of joint operations
Joint arrangements are divided into commonly-operated ventures and jointly-operated ventures, which aredetermined in accordance with the rights and obligations of the joint venture parties in the joint venture arrangement bytaking into account factors such as the structure, legal form and contractual terms of the arrangement. Commonly-operated refers to a joint arrangement in which the joint venture parties enjoy the assets related to the arrangementand bear the liabilities related to the arrangement. The jointly-operated is a joint arrangement in which the joint ventureparty has rights only to the net assets of the joint arrangement.
The Group's investments in joint ventures are accounted by using the equity method. Please see Note "Long-termequity investments".
9. Recognition criteria for cash and cash equivalents
Cash refers to cash on hand and deposits that can be used to pay at any time. Cash equivalents refer toinvestments held by the Group for a short period (generally within three months from the date of purchase), highlyliquid, easily convertible into a known amount of cash, and with little risk of change in value.
10. Foreign currency transactions and conversion of foreign currency financial statements
10.1 Foreign currency transactions
Foreign currency transactions are initially recognized at an exchange rate similar to the spot exchange rate on thedate of the transaction, and the exchange rate similar to the spot rate on the date of the transaction is determined in asystematic and reasonable manner.
At the balance sheet date, foreign currency monetary items are converted into RMB using the spot exchange rateon that date, and the exchange difference arising from the difference between the spot exchange rate on that date andthe spot exchange rate at the time of initial recognition or the day preceding the balance sheet date, except: (1) theexchange difference of foreign currency special borrowings eligible for capitalization is capitalized during thecapitalization period and included in the cost of the underlying asset; (2) The exchange difference of hedginginstruments for hedging in order to avoid foreign exchange risk is treated according to the hedge accounting method;
(3) The exchange difference results from changes in other carrying balances other than amortized cost for monetaryitems classified as measured at fair value and changes in which are included in other comprehensive income, it shallbe recognized as profit or loss for the period.
Where the preparation of the consolidated financial statement involves overseas operations, if there are foreigncurrency monetary items that substantially constitute net investment in overseas operations, the exchange differencearising from exchange rate changes is included in the "foreign currency statement translation difference" item includedin other comprehensive income; When disposing of overseas operations, it is included in the profit or loss of the periodof disposal.
Foreign currency non-monetary items measured at historical cost are still measured at the base currency amounttranslated at the spot exchange rate on the date of the transaction. Foreign currency non-monetary items measured atfair value are converted at the spot exchange rate of the fair value determination date. The difference between theconverted amount in the functional currency and the original recorded amount in the functional currency is treated as afair value change (including changes of exchange rate), and is recognized in the current profit or loss or as othercomprehensive income.
10.2 Translation of foreign currency financial statements
For the purpose of preparing consolidated financial statement, foreign currency financial statements for overseasoperations are converted into RMB statements in the following manner: all assets and liabilities in the balance sheetare converted at the spot exchange rate at the balance sheet date; Shareholders' equity items are converted at thespot exchange rate at the time of incurrence; All items in the income statement and items reflecting the amount ofprofit distribution are converted at an exchange rate similar to the spot exchange rate on the date of the transaction;The difference between the converted asset items and the total of liability items and shareholders' equity items isrecognized as other comprehensive income and included in shareholders' equity.
Foreign currency cash flows and cash flows of overseas subsidiaries are translated using exchange rates similarto the spot exchange rate on the occurrence date of cash flow, and the impact amount of exchange rate changes oncash and cash equivalents is used as a reconciliation item and is shown separately in the statement of cash flows as"Impact of exchange rate changes on cash and cash equivalents".
The prior-year year-end amounts and the prior-year actual are presented on the basis of the amounts convertedfrom the prior-year financial statement.
Where the Group losses control of overseas operations due to disposing of all the ownership interests in overseasoperations or the disposal of part of the equity investment or other reasons, the difference in the translation of theforeign currency statements in the ownership interests attributable to the parent company related to the overseasoperations shown below the items of shareholders' equity in the balance sheet shall be transferred to the profit or lossof the period of disposal.
Where the proportion of equity interests held in overseas operations decreases due to the disposal of part of theequity investment or other reasons without lost the control of the overseas operations, the difference in the translationof foreign currency statements related to the disposal part of the overseas operations shall be attributed to the minorityshareholders' interests and shall not be transferred to the profit or loss of the period. When disposing of a portion ofequity in overseas operations that are joint ventures or associates, the foreign currency translation differences relatedto the overseas operations are transferred to the disposal period's profit or loss in proportion to the disposal scale.
11. Financial instruments
The Group recognizes a financial asset or financial liability when it becomes a party to a financial instrumentcontract.
In the case of the purchase or sale of financial assets in the usual manner, it shall recognize the assets to bereceived and the liabilities to be incurred on the transaction date, or derecognize the assets sold on the transactiondate.
Financial assets and financial liabilities are measured at fair value at initial recognition (For the method ofdetermining the fair value of financial assets and financial liabilities, please refer to the relevant disclosure of"Accounting Basis and Pricing Principles" in Note (II)). For financial assets and financial liabilities measured at fairvalue and changes in which are recorded in profit or loss for the period, the related transaction costs are recognizeddirectly in profit or loss for the period; For other categories of financial assets and financial liabilities, the relatedtransaction costs are included in the initial recognition amount. Where the Group initially recognizes accountsreceivable that do not contain a material financing component or do not take into account the financing component in acontract not older than one year in accordance with No. 14Accounting Standard for Business Enterprises-Revenue(the "Revenue Standard"), the initial measurement is made at the transaction price as defined by the revenue standard.
The effective interest rate method refers to the method of calculating the amortized cost of financial assets orfinancial liabilities and apportioning interest income or interest expense into each accounting period.
The effective interest rate is the interest rate used to discount the estimated future cash flows of a financial assetor financial liability over the expected life of the financial asset to the carrying balance of the financial asset or theamortized cost of the financial liability. In determining the effective interest rate, the expected cash flow is estimatedtaking into account all contractual terms of the financial asset or financial liability (such as early repayment, rollover,call option or other similar option, etc.), without taking into account the expected credit loss.
The amortized cost of a financial asset or financial liability is the amount initially recognized less the principalrepaid, plus or minus the accumulated amortization resulting from the amortization of the difference between the initialrecognition amount and the amount due date using the effective interest rate method, and then deduct theaccumulated provision for losses (for financial assets only).
11.1 Classification, recognition and measurement of financial assets
After initial recognition, the Group conducts subsequent measurements of different classes of financial assets atamortized cost, measured at fair value and changes in which are recognized in other comprehensive income, ormeasured at fair value and changes in which are recorded in profit or loss for the period.
The contractual clauses of a financial asset provide that the cash flows generated on a given date are only thepayment of principal and interest based on the outstanding principal amount, and the Group's business model is aimedfor managing the financial asset is to collect contractual cash flows, then the Group classifies the financial asset as afinancial asset measured at amortized cost. Such financial assets mainly include monetary funds, notes receivable,accounts receivable and other receivables.
If the contractual terms of a financial asset stipulate that the cash flows generated on a specific date are solelypayments of principal and interest on the outstanding principal amount, and the Group's business model for managingthe financial asset is both to collect contractual cash flows and to sell the financial asset, then the financial asset isclassified as measured at fair value through other comprehensive income. Such financial assets with a maturity ofmore than one year from the date of acquisition are listed as other debt investments, and if they mature within oneyear (inclusive) from the balance sheet date, they are shown as non-current assets maturing within one year; Accountsreceivable and notes receivable classified as measured at fair value and changes in which are recognized in othercomprehensive income at the time of acquisition are shown in receivables financing, and the other acquired with amaturity of one year (inclusive) are shown in other current assets.
At initial recognition, the Group may irrevocably designate investments in non-tradable equity instruments otherthan contingent consideration recognized in business combinations that are under non-common control as financialassets measured at fair value and changes in which are recognized in other comprehensive income on a singlefinancial asset basis. Such financial assets are listed as investments in other equity instruments.
Where a financial asset meets any of the following conditions, it indicates that the Group's purpose in holding thefinancial asset is transactional:
The purpose of acquiring the underlying financial asset is primarily for the purpose of the recent sale.
The underlying financial assets were part of a centrally managed portfolio of identifiable financial instruments atthe time of initial recognition and there was objective evidence of an actual pattern of short-term profits in the recent.
The related financial asset is a derivative instrument. Except for derivatives that meet the definition of financialguarantee contract and derivatives that are designated as effective hedging instruments.
Financial assets measured at fair value and changes in which are recorded in profit or loss for the period includefinancial assets classified as measured at fair value and changes in which are recorded in profit or loss for the period
and financial assets designated as measured at fair value and changes in which are recorded in profit or loss for theperiod:
Financial assets that do not qualify as financial assets measured at amortized cost and financial assets measuredat fair value and changes in which are included in other comprehensive income are classified as financial assetsmeasured at fair value and changes in which are recorded in profit or loss for the period.
At the time of initial recognition, in order to eliminate or significantly reduce accounting mismatches, the Groupmay irrevocably designate financial assets as financial assets measured at fair value and changes in which arerecorded in profit or loss for the period.
Financial assets measured at fair value through the current profit or loss are presented as trading financial assets.Financial assets that are due to mature (or have no fixed maturity) more than one year from the Balance Sheet dateand are expected to be held for more than one year are presented as other non-current financial assets.
11.1.1 Financial assets measured at amortized cost
Financial assets measured at amortized cost are subsequently measured at amortized cost using the effectiveinterest rate method, and the gains or losses arising from impairment or derecognition are included in profit or loss forthe period.
The Group recognizes interest income on financial assets measured at amortized cost in accordance with theeffective interest rate method. For financial assets purchased or derived that have incurred credit impairment, theGroup determines interest income based on the amortized cost of the financial asset and the credit-adjusted effectiveinterest rate from the initial recognition. In addition, the Group determines interest income based on the carryingbalance of financial assets multiplied by the effective interest rate.
11.1.2 Financial assets measured at fair value and changes in which are recorded in other comprehensive income
Impairment losses or gains and interest income calculated using the effective interest rate methodrelated tofinancial assets classified as measured at fair value and changes in which are included in other comprehensiveincome are recognized in profit or loss for the period, and except that, changes in the fair value of such financial assetsare recognized in other comprehensive income. The amount of the financial asset recognized in profit or loss for eachperiod is equal to the amount that is recognized in profit or loss for each period as if it had been measured atamortized cost. When the financial asset is derecognized, the accumulated gain or loss previously recognized in othercomprehensive income is transferred from other comprehensive income and recognized in profit or loss for the period.
Changes in fair value in investments in non-traded equity instruments designated as measured at fair value andthe change in which are recognized in other comprehensive income are recognized in other comprehensive income,and when the financial asset is derecognized, the accumulated gain or loss previously recognized in othercomprehensive income is transferred from other comprehensive income to retained earnings. During the period duringwhich the Group holds the investment in the non-tradable equity instrument, the dividend income is recognized andrecorded in profit or loss for the period when the Group's right to receive dividends has been established, theeconomic benefits associated with the dividends are likely to flow into the Group and the amount of the dividends canbe reliably measured.
11.1.3 Financial assets measured at fair value and changes in which are recorded in profit or loss for the periodFinancial assets measured at fair value and changes in which are recorded in profit or loss for the period aresubsequently measured at fair value, and gains or losses resulting from changes in fair value and dividends andinterest income related to the financial asset are recorded in profit or loss for the period. 11.2 Impairment of FinancialInstruments
11.2 Impairment of financial instruments
The Group performs impairment accounting and recognizes loss provisions for financial assets measured atamortized cost, financial assets classified as measured at fair value and changes in which are recognized in othercomprehensive income, and lease receivables based on expected credit losses.The Group measures the loss provision at an amount equivalent to the expected credit loss over the life of notesreceivable and accounts receivable formed by transactions regulated by revenue standards that do not contain amaterial financing element or do not take into account the financing component of contracts not exceeding one year,as well as operating leases receivable arising from transactions regulated by No. 21Accounting Standard for BusinessEnterprises -Leases.For other financial instruments, the Group assesses the change in the credit risk of the relevant financialinstruments since initial recognition at each balance sheet date, except for financial assets purchased or derived thathave incurred credit impairment. If the credit risk of the Financial Instrument has increased significantly since the initialrecognition, the Group measures its loss provision by an amount equivalent to the expected credit loss over the life ofthe financial instrument; If the credit risk of the financial instrument does not increase significantly since the initialrecognition, the Group measures its loss provision by an amount equivalent to the expected credit loss of the financialinstrument in the next 12 months. Increases or reversals of credit loss provisions are recognized as impairment lossesor gains in profit or loss for the period, except for financial assets classified as measured at fair value and changes inwhich are recognized in other comprehensive income. For financial assets classified as measured at fair value and thechange thereof is recorded in other comprehensive income, the Group recognizes a credit loss provision in othercomprehensive income and includes impairment losses or gains in profit or loss for the period without reducing thecarrying amount of the financial asset as shown in the balance sheet.
Where the Group has measured a loss provision in the preceding accounting period by an amount equivalent tothe expected credit loss over the life of the financial instrument, but the financial instrument is no longer subject to asignificant increase in credit risk since the initial recognition at the period balance sheet date, the Group measures theloss provision for the financial instrument at the period balance sheet date by an amount equivalent to the expectedcredit loss in the next 12 months, and the resulting reversal amount for loss provision is recognized as an impairmentgain in profit or loss for the period.
11.2.1 Significant increase in credit risk
Using reasonably and evidence-based forward-looking information available, the Group compares the risk ofdefault on financial instruments at the balance sheet date with the risk of default on the initial recognition date todetermine whether the credit risk of financial instruments has increased significantly since initial recognition.
In assessing whether credit risk has increased significantly, the Group will consider the following factors:
(1) Whether the internal price indicators have changed significantly due to changes in credit risk.
(2) Whether the interest rate or other terms of an existing financial instrument have changed significantly (e.g.,stricter contractual terms, additional collateral or higher yields) if the existing financial instrument is derived or issuedas a new financial instrument at the balance sheet date.
(3) Whether there has been a significant change in the external market indicators of the credit risk of the samefinancial instrument or similar financial instruments with the same estimated duration. These indicators include: creditspreads, credit default swap prices for borrowers, the length and extent to which the fair value of financial assets isless than their amortized cost, and other market information relevant to borrowers (such as changes in the price ofborrowers' debt or equity instruments).
(4) Whether there has been a significant change in the external credit rating of the financial instrument in fact orexpectation.
(5) Whether the actual or expected internal credit rating of the debtor has been downgraded.
(6) Whether there has been an adverse change in business, financial or economic circumstances that is expectedto result in a significant change in the debtor's ability to meet its debt servicing obligations.
(7) Whether there has been a significant change in the debtor's operational results, either actual or expected.
(8) Whether the credit risk of other financial instruments issued by the same debtor has increased significantly.
(9) Whether there has been a significant adverse change in the regulatory, economic or technical environment inwhich the debtor is located.
(10) Whether there has been a significant change in the value of the collateral used as collateral for the debt or inthe quality of the guarantee or credit enhancement provided by a third party. These changes are expected to reducethe economic incentive for the debtor to repay the loan within the term specified in the contract or affect the probabilityof default.
(11) Whether there has been a significant change in the economic incentive expected to reduce the borrower'srepayment within the term agreed in the contract.
(12) Whether there has been a change in the expectations of the loan contract, including the waiver oramendment of contractual obligations that may result from the anticipated breach of the contract, the granting ofinterest-free periods, interest rate jumps, requests for additional collateral or guarantees, or other changes to thecontractual framework of financial instruments.
(13) Whether there has been a significant change in the debtor's expected performance and repayment behavior.
(14) Whether the Group's credit management methods for financial instruments have changed.
Regardless of whether the credit risk has increased significantly after the above assessment, when the paymentof a financial instrument contract has been overdue for more than (inclusive) 30 days, it indicates that the credit risk ofthe financial instrument has increased significantly.At the balance sheet date, if the Group determines that a financial instrument has only a low credit risk, the Groupassumes that the credit risk of the financial instrument has not increased significantly since its initial recognition. Afinancial instrument is considered to have a low credit risk if it has a low risk of default, the borrower's ability to meet itscontractual cash flow obligations in the short term is strong, and even if there are adverse changes in the economicsituation and operating environment over a longer period of time that do not necessarily reduce the borrower'sperformance of its contractual cash obligations.
11.2.2 Financial assets that have undergone credit impairment
Where one or more events occur in which the Group expects to adversely affect the future cash flows of afinancial asset, the financial asset becomes a financial asset that has experienced credit impairment. Evidence thatcredit impairment of financial assets has occurred includes the following observable information:
Significant financial difficulties of the issuer or debtor;
Breach of contract by the debtor, such as default or delay in payment of interest or principal;
The creditor gives the debtor concessions under economic or contractual considerations relating to the debtor'sfinancial difficulties that would not have been made under any other circumstances;
The debtor is likely to go bankrupt or undergo other financial restructuring;
The financial difficulties of the issuer or debtor that result in the disappearance of an active market for thatfinancial asset;
Purchase or derive a financial asset at a substantial discount that reflects the fact that a credit loss has occurred.
Based on the Group's internal credit risk management, the Group considers an event of default to have occurredwhen the internally advised or externally obtained information indicates that the debtor of the financial instrumentcannot fully pay creditors including the Group (without regard to any security obtained by the Group).
Notwithstanding the above assessment, if a contract payment for a financial instrument is overdue for more than90 days(inclusive), the Group presumes that the financial instrument has defaulted.
11.2.3 Determination of expected credit loss
For financial assets and lease receivables, the expected credit loss is the present value of the difference betweenthe contractual cash flows due to the Group and the cash flows expected to be collected.
The reflection factors of the Group's methodology for measuring expected credit losses on financial instrumentsinclude: an unbiased probability-weighted average amount determined by evaluating a range of possible outcomes;the time value of money; reasonable and well-founded information about past events, current conditions, and
projections of future economic conditions that can be obtained at the balance sheet date without unnecessaryadditional costs or efforts.
11.2.4 Write-down of Financial Assets
Where the Group no longer reasonably expects that the contractual cash flows of financial assets will berecovered in whole or in part, the carrying balance of the financial assets will be written down directly. Such write-downs constitute derecognition of the underlying financial assets.
11.3 Transfer of Financial Assets
Financial assets that meet one of the following conditions are derecognized: (1) the contractual right to receivecash flows from the financial asset is terminated; (2) the financial asset has been transferred and substantially all ofthe risks and rewards in the ownership of the financial asset have been transferred to the transferring party; (3) thefinancial asset has been transferred, and although the Group has neither transferred nor retained substantially all ofthe risks and rewards in the ownership of the financial asset, it has not retained control over the financial asset.
Where the Group neither transfers nor retains substantially all of the risks and rewards in ownership of a financialasset, and retains control of the financial asset, it will continue to recognize the transferred financial asset to the extentthat it continues to be involved in the transferred financial asset and recognize the relevant liabilities accordingly. TheGroup measures the related liabilities as follows:
For transferred financial assets measured at amortized cost, the carrying amount of the related liability equals thecarrying amount of the continuing involvement in the transferred financial assets minus the amortized cost of any rightsretained by the Group (if the Group retained any rights due to the transfer of financial assets) plus the amortized costof any obligations assumed by the Group (if the Group has assumed any obligations due to the transfer of financialassets), and the related liabilities are not designated as financial liabilities at fair value through current profit or loss.
Where the transferred financial assets are measured at fair value, the carrying amount of the relevant liabilities isequal to the carrying amount of the financial assets that continue to be involved in the transferred financial assets lessthe fair value of the rights retained by the Group (if the Group retains the relevant rights as a result of the transfer offinancial assets) plus the fair value of the obligations assumed by the Group (if the Group has assumed suchobligations as a result of the transfer of financial assets), the fair value of such rights and obligations is the fair valuewhen measured on an independent basis.
If the overall transfer of financial assets satisfies the conditions for derecognition, the difference between thecarrying amount of the transferred financial assets at the derecognition date and the consideration received as a resultof the transfer of the financial and the sum of the amount corresponding to the derecognition portion of theaccumulated fair value change originally included in other comprehensive income is included in profit or loss for theperiod. If the Group transfers financial assets that are investments in non-traded equity instruments designated asmeasured at fair value and changes in which are recognized in other comprehensive income, the accrued gains orlosses previously recognized in other comprehensive income are transferred from other comprehensive income andrecorded in retained earnings.
If a partial transfer of financial assets satisfies the conditions for derecognition, the carrying amount of the financialassets as a whole before the transfer is apportioned between the derecognized portion and the continuing recognitionportion at the respective relative fair value on the transfer date, and the difference between the sum of the amount ofthe consideration received in the derecognized portion and the amount corresponding to the derecognized portion ofthe accumulated fair value change originally included in other comprehensive income and the carrying amount of thederecognized portion at the derecognition date is included in profit or loss for the current period. If the Group transfersfinancial assets that are investments in non-traded equity instruments designated as measured at fair value andchanges in which are recognized in other comprehensive income, the accrued gains or losses previously recognized inother comprehensive income are transferred from other comprehensive income and recorded in retained earnings.
If the conditions for derecognition are not met for the overall transfer of financial assets, the Group continues torecognize the transferred financial assets as a whole and recognizes the consideration received as a liability.
11.4 Classification of financial liabilities and equity instruments
The Group classifies the financial instruments or their components as financial liabilities or equity instruments atinitial recognition according to the contract terms of the financial instruments issued and their economic essence, notjust in legal form, combined with the definitions of financial liabilities and equity instruments.
11.4.1 Classification, recognition and measurement of financial liabilities
Financial liabilities are classified into financial liabilities measured at fair value through profit or loss and otherfinancial liabilities at initial recognition.
11.4.1.1 Financial liabilities measured at fair value through current profit or loss
Financial liabilities measured at fair value and whose changes are included in current profits and losses includetransactional financial liabilities (including derivatives belonging to financial liabilities) and financial liabilities designatedas measured at fair value and whose changes are included in current profits and losses. Except for derivative financialliabilities which are listed separately, financial liabilities measured at fair value and whose changes are included incurrent profits and losses are listed as transactional financial liabilities.
Financial liabilities that meet one of the following conditions, indicate that the purpose of the Group's financialliabilities is transactional:
The purpose of undertaking relevant financial liabilities is mainly to repurchase in the near future.
The relevant financial liabilities are part of the identifiable financial instrument portfolio under centralizedmanagement at the initial recognition, and there is objective evidence to show the actual short-term profit model in thenear future.
Related financial liabilities are derivatives. Except for derivatives that meet the definition of financial guaranteecontract and derivatives that are designated as effective hedging instruments.
The Group can designate financial liabilities that meet one of the following conditions as financial liabilitiesmeasured at fair value and whose changes are included in current profits and losses at initial recognition: (1) The
designation can eliminate or significantly reduce accounting mismatch; (2) According to the risk management orinvestment strategy stated in the formal written documents of the Group, the financial liability portfolio or the portfolio offinancial assets and financial liabilities are managed and evaluated on the basis of fair value, and reported to keymanagement personnel within the Group on this basis; (3) Qualified mixed contracts containing embedded derivatives.Transactional financial liabilities are subsequently measured at fair value, and gains or losses caused by changesin fair value and dividends or interest expenses related to these financial liabilities are included in current profits andlosses.
For financial liabilities designated as being measured at fair value and whose changes are included in the currentprofits and losses, the changes in fair value of the financial liabilities caused by changes in the Group's own credit riskare included in other comprehensive income, and other changes in fair value are included in the current profits andlosses. When the financial liabilities are derecognized, the accumulated change of its fair value caused by the changeof their own credit risk previously included in other comprehensive income is carried forward to retained income.Dividends or interest expenses related to these financial liabilities are included in the current profits and losses. If theaccounting mismatch in profit and loss will be caused or enlarged by handling the impact of the changes in credit riskof these financial liabilities in the above way, the Group will include all the gains or losses of the financial liabilities(including the amount affected by the changes in credit risk) in the current profits and losses.
11.4.1.2 Other financial liabilities
Other financial liabilities, except those caused by the transfer of financial assets that do not meet the conditionsfor derecognition or continue to be involved in the transferred financial assets, are classified as financial liabilitiesmeasured in amortized cost and subsequently measured in amortized cost. The gains or losses arising fromderecognition or amortization are included in the current profits and losses.
If the modification or renegotiation of the contract between the Group and the counterparty does not result in thetermination of the recognition of the financial liabilities that are subsequently measured according to amortized cost,but the cash flow of the contract changes, the Group recalculates the book value of the financial liabilities and recordsthe relevant gains or losses into the current profits and losses. The recalculated book value of such financial liabilitiesis determined by the Group according to the present value of discounted contract cash flow that will be renegotiated ormodified according to the original actual interest rate of the financial liabilities. For all costs or expenses arising fromthe modification or renegotiation of the contract, the Group adjusts the book value of the modified financial liabilitiesand amortizes them within the remaining term of the modified financial liabilities.
11.4.2 Derecognition of financial liabilities
If all or part of the current obligations of financial liabilities have been discharged, the recognition of financialliabilities or part thereof shall be terminated. If the Group (the Borrower) and the Lender will sign an agreement toreplace the original financial liabilities by undertaking new financial liabilities, and the contract terms of the newfinancial liabilities are substantially different from those of the original financial liabilities, the Group will derecognize theoriginal financial liabilities and recognize the new financial liabilities at the same time.
If all or part of the financial liabilities are derecognized, the difference between the book value of the derecognizedpart and the consideration paid (including the transferred non-cash assets or the new financial liabilities undertaken)will be included in the current profits and losses.
11.4.3 Equity instruments
Equity instruments refer to contracts that can prove that the Group has residual interests in assets after deductingall liabilities. The issuance (including refinancing), repurchase, sale or cancellation of equity instruments by the Groupare treated as changes in equity. The Group does not recognize changes in the fair value of equity instruments.Transaction costs related to equity transactions are deducted from equity.
The distribution of equity instrument holders by the Group is treated as profit distribution, and the stock dividendspaid do not affect the total shareholders' equity.
11.5 Offset of financial assets and financial liabilities
When the Group has the legal right to offset the recognized financial assets and financialliabilities, and this legalright is currently enforceable, and the Group plans to settle the financial assets on a net basis or realize the financialassets and pay off the financial liabilities at the same time, the financial assets and financial liabilities are listed in thebalance sheet at the amount after offsetting each other. In addition, financial assets and financial liabilities shall bepresented separately in the balance sheet and shall not be offset against each other.
12. Notes receivable
12.1 Methods for determining and accounting treatment for expected credit lossesof notes receivable
The Group individually assesses notes receivable for which there has been a significant increase in credit risk todetermine credit losses, including notes receivable that are overdue without being accepted, or where there is clearevidence that the acceptor is likely unable to fulfill its acceptance obligations. Other notes receivable are assessed forcredit losses based on their credit risk characteristics on a portfolio basis.
The increase or reversal of the provision for expected credit losses of notes receivable shall be recognized inprofit or loss for the current period as credit impairment losses or gains.
12.2 Portfolio types and basis for determining credit loss provisions based on credit risk characteristics
Except for the notes receivable that assess the credit risk individually, the rest of the notes receivable are dividedinto different portfolios based on their credit risk characteristics:
| Portfolio Category | Determining basis |
| Portfolio 1 | Bank acceptance |
| Portfolio 2 | Trade acceptance |
13. Accounts receivable
13.1 Methods for determining expected credit losses and accounting treatment of accounts receivableThe Group uses an impairment matrix to determine the credit losses of accounts receivable on a portfolio basis.The increase or reversal of the provision for expected credit losses of accounts receivable shall be recognized in profitor loss for the current period as credit impairment losses or gains.
13.2 The type of portfolio and the basis for determining the provision for credit losses based on the credit riskcharacteristics of the portfolio.
The Group classifies accounts receivable into portfolio 1 and 2 based on credit risk characteristics ofcounterparties in different businesses. Portfolio 1 is the accounts receivable generated from polarizer business income,and the credit loss reserve is accrued according to the overdue aging of credit period; Portfolio 2 is the accountsreceivable generated from property leasing and other business income, and the credit loss reserve is accruedaccording to natural aging.
13.3 Calculation method of aging for credit risk characteristics portfolio recognized by aging
The Group uses the aging of accounts receivable as a credit risk characteristic and uses an impairment matrix todetermine its credit losses. Aging is calculated from the date of its initial recognition. If the terms and conditions of theaccounts receivable are modified but do not result in the derecognition of the accounts receivable, the aging shall becalculated consecutively.
13.4 Determining standard of individual provision according to individual provision for bad debts
The Group assesses credit risk of accounts receivable individually due to its significant differences in credit riskwith evidence demonstrated greater credit risk.
14. Receivables financing
14.1 Determination method and accounting treatment method for expected credit loss of accounts receivablefinancing
The Group determines credit losses for receivables financing based on individual assets. The Group recognizescredit loss provisions for accounts receivable financing in other comprehensive income and includes credit impairmentlosses or gains in the current period's profit and loss, without reducing the carrying amount of accounts receivablefinancing presented in the balance sheet.
14.2 Judgment criteria for individual provision of credit loss reserves based on individual provision
The Group evaluates the financing of corresponding receivables based on the acceptance bank credit status ofbank acceptance bills and makes provisions for credit losses.
15. Other receivables
Determination method and accounting treatment method of expected credit loss of other receivables
15.1 Methods for determining expected credit losses and accounting treatment of other receivablesThe Group determines the credit losses on other receivables on a portfolio basis. The increase or reversal of theprovision for expected credit losses of other accounts receivable shall be recognized in profit or loss for the currentperiod as credit impairment losses or gains.
15.2 Portfolio types and basis for determining credit loss provisions based on credit risk characteristicsThe Group classifies other receivables into different categories based on common credit risk characteristics. Thecommon credit risk characteristics adopted by the Group include initial recognition date, remaining contract term, andoverdue time, etc.
15.2 Calculation method of aging for credit risk characteristics portfolio recognized by agingAging is calculated from the date of its initial recognition. If the terms and conditions of other receivables aremodified but do not result in the derecognition of other receivables, the aging shall be calculated consecutively.
16. Contract assets
No
17. Inventories
17.1 Inventory Category, Goods Out Pricing Method, Inventory System, Amortization Method for Low-ValueConsumables and Packaging
17.1.1 Inventory Category
The Group's inventory mainly includes raw materials, products in process, finished products and materialsentrusted for processing. Inventory is initially measured at cost, which includes purchasing cost, processing cost andother expenses incurred to make inventory reach the current place and use state.
17.1.2 Inventory issuance valuation method
When the inventory is issued, the actual cost of the issued inventory is determined by the weighted mean method.
17.1.3 Inventory system
The inventory system is perpetual inventory system.
17.1.4 Amortization method of low-value consumables and packaging materials
Turnover materials and low-value consumables are amortized by straight-line method or one-time write-offmethod.
17.2 Recognition criteria and accrual method of provision for inventory falling price loss
On the balance sheet date, inventories are measured according to the lower of cost and net realizable value.When the net realizable value is lower than the cost, the inventory depreciation provision is withdrawn.
Net realizable value refers to the estimated selling price of inventory minus the estimated cost, estimated salesexpenses and related taxes and fees at the time of completion in daily activities. When determining the net realizablevalue of inventory, it is based on the conclusive evidence obtained, and the purpose of holding inventory and theinfluence of events after the balance sheet date are also considered.
After the inventory depreciation provision is withdrawn, if the influencing factors of previous write-down ofinventory value have disappeared, resulting in the net realizable value of inventory being higher than its book value, itwill be reversed within the original amount of inventory depreciation provision, and the reversed amount will beincluded in the current profits and losses.
Inventory depreciation provision is generally provisioned for on an individual inventory item basis.
18. Assets held for sale
No
19. Debt investment
No
20. Other debt investment
21. Long-term receivables
No
22. Long-term equity investments
22.1 Criteria for joint control and important influence
Control means that the investor has the power over the investee, enjoys variable returns by participating in therelated activities of the investee, and has the ability to influence the amount of returns by using the power over theinvestee. Joint control refers to the common control of an arrangement according to the relevant agreement, and thatthe related activities of the arrangement must be unanimously agreed by the participants who share the control rightsbefore making decisions. Significant influence refers to the power to participate in decision-making on the financial andoperating policies of the investee, but it cannot control or jointly control the formulation of these policies with otherparties. When determining whether the investee can be controlled or exert significant influence, the potential voting
rights factors such as convertible corporate bonds and current executable warrants of the investee held by investorsand other parties have been considered.
22.2 Determination of initial investment cost
For the long-term equity investment obtained by business merger under the same control, the initial investmentcost of the long-term equity investment shall be the share of the book value of the owners' equity of the merged partyin the consolidated financial statements of the final controlling party on the merger date. The capital reserve shall beadjusted for the difference between the initial investment cost of long-term equity investment and the book value ofcash paid, non-cash assets transferred and debts undertaken; If the capital reserve is insufficient to be offset, theretained income shall be adjusted. If equity securities are issued as the merger consideration, the initial investmentcost of long-term equity investment shall be the share of the book value of the owners' equity of the merged party inthe consolidated financial statements of the final controlling party on the merger date, the share capital shall be thetotal face value of issued shares, and the capital reserve shall be adjusted according to the difference between theinitial investment cost of long-term equity investment and the total face value of the issued shares; If the capitalreserve is insufficient to be offset, the retained income shall be adjusted.For the long-term equity investment obtained from the business merger not under the same control, the initialinvestment cost of the long-term equity investment shall be the merger cost on the purchase date.Intermediary expenses such as audit, legal services, evaluation and consultation and other related managementexpenses incurred by the merging party or the purchaser for business merger are included in the current profits andlosses when incurred.Long-term equity investment obtained by other means except the long-term equity investment formed by businessmerger shall be initially measured at cost. If the additional investment can exert a significant influence or implementjoint control which however does not constitute control on the investee, the long-term equity investment cost is the sumof the fair value of the original equity investment determined in accordance with the Accounting Standards forBusiness Enterprises No.22-Recognition and Measurement of Financial Instruments plus the new investment cost.
22.3 Subsequent measurement and profit and loss recognition method
22.3.1 Long-term equity investment calculated by cost method
The parent company's financial statements use the cost method to calculate the long-term equity investment insubsidiaries. Subsidiaries refer to the invested entities over which the Group can exercise control.
Long-term equity investment accounted by cost method is measured at the initial investment cost. Add or recoverinvestment to adjust the cost of long-term equity investment. The current investment income is recognized accordingto the cash dividend or profit declared by the investee.
22.3.2 Long-term equity investment calculated by equity method
The Group's investment in associated enterprises and joint ventures is accounted for by the equity method. Anassociated enterprise refers to the investee over which the Group can exert significant influence, and a joint venturerefers to a joint venture arrangement in which the Group has rights only over the net assets of the arrangement.
When accounting using the equity method, if the initial investment cost of a long-term equity investment is greaterthan the share of the fair value of identifiable net assets of the invested entity at the time of investment, the initialinvestment cost of the long-term equity investment is not adjusted; If the initial investment cost is less than the fairvalue share of the identifiable net assets of the investee, the difference shall be included in the current profits andlosses, and the cost of long-term equity investment shall be adjusted.When accounting by the equity method, the investment income and other comprehensive income are recognizedrespectively according to the share of the net profit and loss and other comprehensive income realized by the investee,and the book value of long-term equity investment is adjusted; The share is calculated according to the profit or cashdividend declared by the investee, and the book value of long-term equity investment is reduced accordingly; For otherchanges in the owners' equity of the investee except the net profit and loss, other comprehensive income and profitdistribution, the book value of the long-term equity investment shall be adjusted and included in the capital reserve.When recognizing the share of the net profit and loss of the investee, the net profit of the investee shall be adjustedand recognized based on the fair value of the identifiable assets of the investee at the time of investment. If theaccounting policies and accounting periods adopted by the investee are inconsistent with those of the Company, thefinancial statements of the investee shall be adjusted according to the accounting policies and accounting periods ofthe Company, so as to recognize the investment income and other comprehensive income. For the transactionsbetween the Group and the associated enterprises and joint ventures, if the assets invested or sold do not constitutebusiness, the unrealized internal transaction gains and losses shall be offset by the portion belonging to the Groupaccording to the proportion enjoyed, and the investment gains and losses shall be recognized on this basis. However,the unrealized internal transaction losses between the Group and the investee belong to the impairment losses of thetransferred assets and shall not be offset.When recognizing the share of the net loss of the investee, the book value of the long-term equity investment andother long-term rights and interests that substantially constitute the net investment of the investee shall be writtendown to zero. In addition, if the Group is obligated to bear additional losses to the investee, the estimated liabilities willbe recognized according to the expected obligations and included in the current investment losses. If the investeerealizes the net profit in the future, the Group will resume the recognition of the income share after the income sharemakes up for the unrecognized loss share.
22.4 Disposal of long-term equity investment
When disposing of long-term equity investment, the difference between its book value and the actual purchaseprice is included in the current profits and losses. For the long-term equity investment accounted by the equity method,if the remaining equity after disposal is still accounted by the equity method, other comprehensive income originallyaccounted by the equity method shall be accounted for on the same basis as the direct disposal of related assets orliabilities by the investee; Owners' equity recognized by changes in other owners' equity of the investee except netprofit and loss, other comprehensive income and profit distribution shall be carried forward to current profits and lossesin proportion. If the long-term equity investment accounted for by the cost method is still accounted for by the costmethod after disposal, the other comprehensive income recognized by the equity method accounting or the recognitionof financial instruments and accounting standards before gaining control of the investee shall be accounted for on thesame basis as the direct disposal of related assets or liabilities by the investee; Changes in owners' equity other thannet profit and loss, other comprehensive income and profit distribution in the net assets of the investee recognized byusing the equity method are carried forward to the current profits and losses in proportion.
If the Group loses the control over the investee due to disposal of part of equity investments, in the preparation ofindividual financial statements, the remaining equity after disposal that can exercise joint control or significant influenceover the investee shall be subject to accounting treatment under the equity method, and the remaining equity shall bedeemed to have been adjusted under the equity method since acquisition. If the remaining equity after disposal cannotbe jointly controlled or exert significant influence on the investee, it shall be accounted for according to the relevantprovisions of the standards for the recognition and measurement of financial instruments, and the difference betweenits fair value and book value on the date of control loss shall be included in the current profits and losses. For othercomprehensive income recognized by the Group before it gains control of the investee, when it loses control of theinvestee, it shall be treated on the same basis as the direct disposal of related assets or liabilities by the investee.Changes in owners' equity in the net assets of the investee, except net profit and loss, other comprehensive incomeand profit distribution, shall be carried forward to current profits and losses when it loses control of the investee. If theremaining equity after disposal is accounted by the equity method, other comprehensive income and other owners'equity will be carried forward in proportion; If the remaining equity after disposal is changed to accounting treatmentaccording to the recognition and measurement standards of financial instruments, all other comprehensive income andother owners' equity will be carried forward.
If the Group loses joint control or significant influence on the investee due to the disposal of some equityinvestments, the remaining equity after disposal shall be accounted for according to the recognition and measurementstandards of financial instruments, and the difference between its fair value and book value on the date of joint controlloss or significant influence shall be included in the current profits and losses. Other comprehensive incomerecognized by the original equity investment due to accounting by the equity method shall be accounted for on thesame basis as the direct disposal of relevant assets or liabilities by the investee when the equity method is terminated.All the owners' equity recognized by the investee due to changes in other owners' equity except net profit and loss,other comprehensive income and profit distribution shall be carried forward to the current investment income when theequity method is terminated.
The Group disposes of the equity investment in its subsidiaries step by step through multiple transactions until itloses control. If the above transactions belong to a package transaction, each transaction will be treated as atransaction that disposes of the equity investment in its subsidiaries and loses control. Before losing control, thedifference between the price of each disposal and the book value of the long-term equity investment corresponding tothe disposed equity will be recognized as other comprehensive income, and then carried forward to the current profitsand losses when it loses control. Provision forinventory falling price loss is generally made on the basis of a singleinventory item.
23. Investment properties
Measurement model of investment propertyMeasured under cost methodDepreciation or amortization method
Investment real estate refers to real estate held to earn rent or capital appreciation, or both, including rentedhouses and buildings.
Investment real estate is initially measured at cost. Subsequent expenditures related to investment real estate areincluded in the cost of investment real estate if the economic benefits related to the asset are likely to flow in and the
cost can be measured reliably. Other subsequent expenditures are included in the current profits and losses whenincurred.
The Group adopts a cost model for subsequent measurement of investment properties, and adopts the averagelife method to provide depreciation over the useful life. The depreciation methods, depreciation periods, estimatedresidual value rates and annual depreciation rates for various types of investment real estate are as follows:
| Category | Depreciation method | Depreciation period (years) | Residual value rate (%) | Annual Depreciation Rate (%) |
| Houses, buildings | Average life method | 10-40 | 0.00-4.00 | 2.40-10.00 |
When the investment real estate is disposed of, or permanently withdrawn from use, and it is not expected toobtain economic benefits from its disposal, the recognition of the investment real estate will be terminated.
The difference between the disposal income from the sale, transfer, scrapping or damage of investment realestate after deducting its book value and related taxes is included in the current profits and losses.
24. Fixed assets
(1) Recognition conditions
Fixed assets refer to tangible assets held for producing goods, providing services, leasing or management, with aservice life of more than one fiscal year. Fixed assets are recognized only when the economic benefits related to themare likely to flow into the Group and their costs can be measured reliably. Fixed assets are initially measured at cost.
Subsequent expenditures related to fixed assets shall be included in the cost of fixed assets if the economicbenefits related to the fixed assets are likely to flow in and the cost can be measured reliably, and the book value ofthe replaced part shall be derecognized. Other subsequent expenditures are included in the current profits and losseswhen incurred.
(2) Depreciation methods
| Category | Depreciation method | Depreciation period | Residual value rate | Annual depreciation rate |
| Houses & buildings | Average life method | 10-40 | 0.00%-4.00% | 2.40%-10.00% |
| Machinery equipment | Average life method | 10-14 | 4.00% | 6.86%-9.60% |
| Transportation equipment | Average life method | 8 | 4.00% | 12.00% |
| Electronic equipment and others | Average life method | 5 | 4.00% | 19.20% |
Fixed assets shall be depreciated within their service life by using the life-average method from the monthfollowing the scheduled serviceable state. The depreciation methods, depreciation periods, estimated residual valuerates and annual depreciation rates for various types of fixed assets are as above.
Estimated net salvage refers to the amount that the Group currently obtains from the disposal of fixed assets afterdeducting the estimated disposal expenses, assuming that the expected service life of the fixed assets has expiredand is in the expected state at the end of the service life.When the fixed assets are disposed of or it is expected that no economic benefits can be generated through theuse or disposal, the fixed assets is derecognized. The difference between the disposal income from the sale, transfer,scrapping or damage of fix assets after deducting its book value and related taxes is included in the current profits andlosses.
At least at the end of the year, the Group will review the service life, estimated net salvage and depreciationmethod of fixed assets, and if there is any change, it will be treated as a change in accounting estimate.
25. Construction in progress
The construction in progress is measured according to the actual cost, which includes various projectexpenditures incurred during the construction period, capitalized borrowing costs before the project reaches thescheduled serviceable state and other related expenses. No depreciation is allowed for construction in progress.
Construction in progress is carried forward as a fixed asset when it reaches the intended usable state. Thestandards and timing points for the carry-forward of various types of projects under construction into fixed assets areas follows:
| Category | The criteria for carrying forward to fixed assets | The time point at which it is carried forward to a fixed asset |
| Installation of machinery and equipment | The equipment has been accepted by asset management personnel and user personnel and meets one or more of the following conditions according to the actual situation: (1) Relevant equipment and other supporting facilities have been installed; (2) The equipment can maintain normal and stable operation for a period of time after debugging; (3) The production equipment can stably produce qualified products for a period of time. | It has reached the intended usable state |
26. Borrowing costs
Borrowing costs that can be directly attributed to the purchase, construction or production of assets that meet thecapitalization conditions will be capitalized when the asset expenditure has occurred, the borrowing costs haveoccurred, and the necessary purchase, construction or production activities to make the assets reach thepredetermined serviceable or saleable state have begun; Capitalization shall stop when the assets that meet thecapitalization conditions purchased, constructed or produced reach the predetermined serviceable state or saleablestate. The remaining borrowing costs are recognized as expenses in the current period.
27. Biological assets
No
28. Oil and gas assets
No
29. Intangible assets
(1) Service life and its determination basis, estimation, amortization method or reviewprocedureIntangible assets include land use rights, software and patent rights.Intangible assets are initially measured at cost. Intangible assets with limited service life shall be amortized bystraight-line method in equal installments within their expected service life from the time they are available for use.Intangible assets with uncertain service life shall not be amortized. The amortization method, service life and estimatednet salvage of various intangible assets are as follows:
| Category | Amortization method | Service life (year) and determination basis | Residual value rate (%) |
| Land use right | Straight-line method | 50(Legal Right to Use) | - |
| Software | Straight-line method | 5 (The useful life is determined by the period of time that is expected to bring economic benefits to the Company) | - |
| Patent | Straight-line method | 15 (The useful life is determined by the period of time that is expected to bring economic benefits to the Company) | - |
At the end of the period, the service life and amortization method of intangible assets with limited service life shallbe reviewed and adjusted if necessary.
(2) Collection scope of R&D expenses and related accounting treatment methods
Expenditure in the research stage is included in the current profits and losses when incurred.
Expenditures in the development stage are recognized as intangible assets if they meet the following conditions atthe same time. Expenditures in the development stage that cannot meet the following conditions are included in thecurrent profits and losses:
(1) It is technically feasible to complete the intangible assets so that they can be used or sold;
(2) Having the intention to complete the intangible assets and use or sell them;
(3) The ways in which intangible assets generate economic benefits, including the ability to prove that theproducts produced by using the intangible assets exist in the market or the intangible assets themselves exist in themarket, and the intangible assets will be used internally, which can prove their usefulness;
(4) Having sufficient technical, financial and other resources to support the development of the intangible assets,and having the ability to use or sell the intangible assets;
(5) Expenditure attributable to the development stage of the intangible assets can be reliably measured.If it is impossible to distinguish between research stage expenditure and development stage expenditure, all theR&D expenditures incurred shall be included in the current profits and losses. The cost of intangible assets formed byinternal development activities only includes the total expenditure from the time when the capitalization conditions aremet to the time when the intangible assets reach the intended use, and the expenditure that has been expensed intoprofit and loss before the capitalization conditions are met in the development process will not be adjusted.The scope of R&D expenditure collection includes wages and welfare expenses of personnel directly engaged inR&D activities, and materials, fuel, and power costs directly consumed in R&D activities, etc.
30. Long-term assets impairment
On each balance sheet date, the Group checks whether there are signs that long-term equity investment,investment real estate measured by cost method, fixed assets, construction in progress, right-to-use assets andintangible assets with definite service life may be impaired. If these assets show signs of impairment, the recoverableamount is estimated. Intangible assets with uncertain service life and intangible assets that have not yet reached theserviceable state are tested for impairment every year, regardless of whether with signs of impairment.Estimating the recoverable amount of an asset is based on a single asset. If it is difficult to estimate therecoverable amount of a single asset, the recoverable amount of the asset group is determined based on the assetgroup to which the asset belongs. The recoverable amount is the higher of the net amount of the fair value of the assetor asset group minus the disposal expenses or the present value of its expected future cash flow.If the recoverable amount of an asset is lower than its book value, the asset impairment provision shall be accruedaccording to the difference and included in the current profits and losses.Goodwill shall be tested for impairment at least at the end of each year. When testing the impairment of goodwill,it shall be conducted in combination with the related asset group or asset group portfolio. That is, from the purchasedate, the book value of goodwill is allocated to the asset group or asset group portfolio that can benefit from thesynergistic effect of business merger in a reasonable way. If the recoverable amount of the asset group or asset groupportfolio containing the allocated goodwill is lower than its book value, the corresponding impairment loss will berecognized. The amount of impairment loss will firstly deduct the book value of goodwill allocated to the asset group orasset group portfolio, and then deduct the book value of other assets according to the proportion of the book value ofassets other than goodwill in the asset group or asset group portfolio.Once the above-mentioned asset impairment losses are recognized, they will not be reversed in future accountingperiods.
31. Long-term deferred expenses
Long-term deferred expenses refer to the expenses that have occurred but should be borne by the current periodand subsequent periods with an amortization period of more than one year. Long-term deferred expenses shall beamortized evenly by stages during the expected benefit period.
32. Contract liabilities
Contractual liabilities refer to the obligation of the Group to transfer goods or services to customers forconsideration received or receivable from customers. Contract assets and liabilities under the same contract are listedon a net basis.
33. Employee compensation
(1) Accounting treatment methods for short-term compensation
During the accounting period when employees provide services for the Group, the Group recognizes the actualshort-term remuneration as a liability, and records it into the current profits and losses or related asset costs. Theemployee welfare expenses incurred by the Group are included in the current profits and losses or related asset costsaccording to the actual amount when actually incurred. If employee welfare expenses are non-monetary benefits, theyshall be measured at fair value.
The social insurance premiums such as medical insurance premium, work injury insurance premium andmaternity insurance premium and housing provident fund paid by the Group for employees, as well as the trade unionfunds and employee education funds withdrawn by the Group according to regulations, shall be calculated accordingto the stipulated accrual basis and accrual ratio during the accounting period when employees provide services for theGroup to determine the employee compensation amount, and recognize the corresponding liabilities, and be includedin the current profits and losses or related asset costs.
(2) Accounting treatment method for post employment benefits
Post-employment benefits are all defined contribution plans.
During the accounting period when employees provide services for the Group, the amount payable calculatedaccording to the set deposit plan is recognized as a liability, and included in the current profits and losses or relatedasset costs.
(3) Accounting treatment method for dismissal benefits
If the Group provides dismissal benefits to employees, the employee compensation liabilities arising from thedismissal benefits shall be recognized at the earlier of the following two dates, and included in the current profits andlosses: when the Group cannot unilaterally withdraw the dismissal benefits provided by the plan to terminate laborrelations or the proposal to cut back; When the Group recognizes the costs or expenses related to the reorganizationinvolving the payment of dismissal benefits.
(4) Accounting treatment of other long-term employee benefits
No
34. Estimated liabilities
When the obligation related to contingencies such as customer return are the current obligations undertaken bythe Group, and the fulfillment of this obligation is likely to lead to the outflow of economic benefits, and the amount ofthis obligation can be measured reliably, it is recognized as estimated liabilities.On the balance sheet date, considering the risk, uncertainty and time value of money related to contingencies, theestimated liabilities are measured according to the best estimate of the expenditure required to fulfill the relevantcurrent obligations. If the time value of money is significant, the best estimate is determined by the discounted amountof expected future cash outflow.
35. Share-based payment
No
36. Other financial instruments like preferred shares and perpetual bondsNo
37. Revenue
Disclosure of accounting policies adopted for recognition and measurement of revenue by business type
37.1 Accounting policy used for measurement and revenue recognition disclosure according to type of business
The Group has fulfilled its contractual obligation, that is, when the customer obtains the control right of therelevant goods or services, the income will be recognized according to the transaction price allocated to theperformance obligation. Performance obligation refers to the commitment of the Group to transfer clearlydistinguishable goods or services to customers in the contract.
The Group evaluates the contract on the start date of the contract, identifies the individual performanceobligations contained in the contract, and determines whether each individual performance obligation is performedwithin a certain period of time or at a certain point of time. If one of the following conditions is met, it belongs to theperformance obligation within a certain period of time, and the Group recognizes the income within a certain period oftime according to the performance progress: (1) The customer obtains and consumes the economic benefits broughtby the performance of the Group; (2) The customer can control the goods under construction during the performanceof the Group; (3) The goods produced by the Group during the performance of the contract have no alternative use,and the Group has the right to collect payment for the performance completed to date throughout the contract period.Otherwise, the Group recognizes revenue at the point in time when the customer obtains control of the related goodsor services.
For goods sold to customers, the Group recognizes income when the control of the goods is transferred, that is,when the goods are delivered to the designated place of the other party and signed by the other party. The Grouprecognizes income in the process of providing property and leasing services.
Transaction price refers to the amount of consideration that the Group expects to be entitled to receive as a resultof the transfer of goods or services to the customer, but does not include payments received on behalf of a third partyand amounts expected to be refunded to the customers by the Group. In determining the transaction price, the Grouptakes into account the impact of factors such as variable consideration, significant financing elements in the contract,non-cash consideration, consideration payable to customers, etc.If the contract contains two or more performance obligations, the Group will allocate the transaction price to eachindividual performance obligation on the contract start date according to the relative proportion of the separate sellingprice of the goods or services promised by each individual performance obligation. However, if there is conclusiveevidence that the contract discount or variable consideration is only related to one or more (but not all) performanceobligations in the contract, the Group will allocate the contract discount or variable consideration to one or morerelated performance obligations. Separate selling price refers to the price at which the Group sells goods or services tocustomers separately. If the separate selling price cannot be directly observed, the Group comprehensively considersall relevant information that can be reasonably obtained, and estimates the separate selling price by using observableinput values to the maximum extent.For sales with return clauses, when the customer obtains the control right of the relevant goods, the Grouprecognizes the income according to the amount of consideration expected to be charged due to the transfer of goodsto the customer (that is, excluding the amount expected to be refunded due to sales return), and recognizes theliabilities according to the amount expected to be refunded due to sales return; At the same time, according to thebook value of the expected returned goods at the time of transfer, the balance after deducting the expected cost ofrecovering the goods (including the loss of the value of the returned goods) is recognized as an asset, and the netcarry-over cost of the above assets is deducted according to the book value of the transferred goods at the time oftransfer.For sales with quality assurance clauses, if the quality assurance provides a separate service in addition toassuring customers that the goods or services sold meet the established standards, the quality assurance constitutesa single performance obligation. Otherwise, the Group shall handle the quality assurance responsibility in accordancewith the Accounting Standards for Business Enterprises No.13-Contingencies.According to whether the Group has control over the goods or services before transferring them to customers, theGroup judges whether it is the main responsible person or the agent when engaging in transactions. If the Group cancontrol the goods or services before transferring them to customers, the Group is the main responsible person, and theincome is recognized according to the total consideration received or receivable; Otherwise, the Group, as an agent,recognizes income according to the expected amount of commission or handling fee, which is determined according tothe net amount of the total consideration received or receivable after deducting the price payable to other interestedparties.
If the Group receives the payment for the sale of goods or services from customers in advance, it will firstrecognize the payment as a liability, and then change it to income when the relevant performance obligations arefulfilled. When the advance payment of the Group does not need to be returned, and the customer may give up all orpart of its contractual rights, if the Group is expected to be entitled to the amount related to the contractual rights givenup by the customer, the above amount will be recognized as income in proportion according to the mode of thecustomer's exercise of contractual rights; Otherwise, the Group will only convert the relevant balance of the above
liabilities into income when it is extremely unlikely that the customer will demand to perform the remaining performanceobligations.Different revenue recognition and measurement methods involved in different business models adopted by the sametype of businessNo
38. Contract costs
No
39. Government subsidies
Government subsidies refer to the monetary assets and non-monetary assets obtained by the Group from thegovernment free of charge. Government subsidies are recognized when they can meet the conditions attached togovernment subsidies and can be received.If government subsidies are monetary assets, they shall be measured according to the amount received orreceivable.
39.1 Judgment basis and accounting treatment method of government subsidies related to assets
As long-term assets can be formed in the production line subsidies and equipment subsidies of the Group'sgovernment subsidies, these government subsidies are government subsidies related to assets.
Government subsidies related to assets are recognized as deferred income, and are included in the current profitsand losses in installments according to the straight-line method within the service life of the related assets.
39.2 Judgment basis and accounting treatment method of government subsidies related to income
As the Group's government subsidies, such as industry development support funds, enterprise developmentsupport funds and tax subsidies, cannot form long-term assets, these government subsidies are government subsidiesrelated to income.
Government subsidies related to income, if used to compensate related costs and losses in future periods, will berecognized as deferred income, and are included in the current profits and losses during the period when related costsor expenses are recognized; if used to compensate the related costs and losses that have occurred, will be directlyincluded in the current profits and losses.
Government subsidies related to the daily activities of the Group are included in other income according to thenature of economic business. Government subsidies unrelated to the daily activities of the Group are included in non-operating income.
When the confirmed government subsidy needs to be returned, if there is a relevant deferred revenue balance,the relevant deferred income book balance will be offset, and the excess will be included in the current profits andlosses; If there is no relevant deferred income, it will be directly included in the current profits and losses.
40. Deferred tax assets and deferred tax liabilities
Income tax expenses include current income tax and deferred income tax.
40.1 Current income tax
On the balance sheet date, the current income tax liabilities (or assets) formed in the current and previous periodsshall be measured by the expected income tax payable (or refunded) calculated in accordance with the provisions ofthe tax law.
40.2 Deferred income tax assets and deferred income tax liabilities
For the difference between the book values of some assets and liabilities and their tax basis, and the temporarydifference between the book values of items that are not recognized as assets and liabilities but can be determined intax basis according to the provisions of the tax law and tax basis, the balance sheet liability method is adopted torecognize deferred income tax assets and deferred income tax liabilities.
In general, all temporary differences are recognized as related deferred income tax. However, for deductibletemporary differences, the Group recognizes related deferred income tax assets to the extent that it is likely to obtaintaxable income to offset the deductible temporary differences. In addition, for the temporary differences related to theinitial recognition of goodwill and the initial recognition of assets or liabilities arising from transactions that are neitherbusiness merger nor affect accounting profits and taxable income (or deductible losses), the relevant deferred incometax assets or liabilities are not recognized.
For deductible losses and tax deductions that can be carried forward to future years, the corresponding deferredincome tax assets are recognized to the extent that it is likely to obtain future taxable income for deducting deductiblelosses and tax deductions.
The Group recognizes deferred income tax liabilities arising from taxable temporary differences related toinvestments in subsidiaries, associated enterprises and joint ventures, unless the Group can control the time when thetemporary differences are reversed, and the temporary differences are unlikely to be reversed in the foreseeable future.For deductible temporary differences related to the investments of subsidiaries, associated enterprises and jointventures, the Group recognizes the deferred income tax assets only when the temporary differences are likely to bereversed in the foreseeable future and the taxable income used to offset the deductible temporary differences is likelyto be obtained in the future.
On the balance sheet date, deferred income tax assets and deferred income tax liabilities shall be measuredaccording to the applicable tax rate during the expected recovery of related assets or settlement of related liabilities.
Except that the current income tax and deferred income tax related to transactions and events directly included inother comprehensive income or shareholders' equity are included in other comprehensive income or shareholders'equity, and the deferred income tax arising from business merger adjusts the book value of goodwill, the remaining
current income tax and deferred income tax expenses or gains are included in the current profits and losses. On thebalance sheet date, the book value of deferred income tax assets shall be rechecked.
On the balance sheet date, the book value of deferred tax assets shall be reexamined. If it is unlikely to obtainsufficient taxable income to offset the benefit of the deferred tax assets, the book value of the deferred income taxassets shall be written down. When it is likely to earn sufficient taxable income, the write-down amount shall bereversed.
40.3 Offset of income tax
When the Group has the legal right to settle on a net basis and intends to settle on a net basis or acquire assetsand pay off liabilities at the same time, the Group's current income tax assets and current income tax liabilities arepresented on an offset net basis.
When the taxpayer has the legal right to settle the current income tax assets and liabilities on a net basis, and thedeferred income tax assets and liabilities are related to the income tax levied by the same tax collection department onthe same taxpayer or to different taxpayers, but in the future, the taxpayers involved intend to settle the current incometax assets and liabilities on a net basis, or acquire assets and pay off liabilities at the same time, the Group's deferredincome tax assets and liabilities are presented on an offset net basis.
41. Leasing
(1) Accounting treatment method of leasing as a lessee
Lease refers to a contract in which the lessor transfers the right to use assets to the lessee for considerationwithin a certain period of time.
On the commencement date of the contract, the Group evaluates whether the contract is a lease or contains alease. Unless the terms and conditions of the contract change, the Group will not re-evaluate whether the contract is alease or contains a lease.
41.1 The Group as the lessee
41.1.1 Split of lease
If the contract contains one or more leased and non-leased parts at the same time, the Group will split eachseparate leased and non-leased part and allocate the contract consideration according to the relative proportion of thesum of the separate prices of each leased part and the non-leased part.
41.1.2 Right-to-use assets
Except for short-term leases, the Group recognizes the right-to-use assets on the start date of lease term. Thestart date of lease term refers to the start date when the lessor provides the leased assets for the use of the Group.The right-to-use assets is initially measured according to the cost. The cost includes:
Initial measurement amount of lease liabilities;
For the lease payment paid on or before the start date of the lease term, if there are lease incentives, deduct theamount related to the lease incentives enjoyed;Initial direct expenses incurred by the Group;The estimated costs incurred by the Group for dismantling and removing the leased assets, restoring thepremises where the leased assets are located or restoring the leased assets to the state agreed in the lease clauses.The Group refers to the depreciation provisions in Accounting Standards for Business Enterprises No.4-FixedAssets, and accrues depreciation for right-to-use assets. If the Group can reasonably determine that it has acquiredthe ownership of the leased assets at the expiration of the lease term, the right-to-use assets will be depreciated withinthe remaining service life of the leased assets. If it cannot be reasonably determined that the ownership of the leasedassets can be obtained at the expiration of the lease term, depreciation shall be accrued during the lease term or theremaining service life of the leased assets, whichever is shorter.According to the Accounting Standards for Business Enterprises No.8-Impairment of Assets, the Groupdetermines whether the right-to-use assets have been impaired, and carries out accounting treatment for the identifiedimpairment losses.
41.1.3 Lease liabilities
Except for short-term leases, the Group initially measures the lease liabilities on the start date of lease termaccording to the present value of the unpaid lease payment on that date. When calculating the present value of thelease payment, the Group uses the lease interest rate as the discount rate. When the lease interest rate cannot bedetermined, incremental borrowing rate is used as discount rate.
Lease payments refer to payments made by the Group to the lessor related to the right to use the leased assetduring the lease term, including:
Fixed payment amount and substantial fixed payment amount. If there is lease incentive, the relevant amount oflease incentive shall be deducted;
Variable lease payment amount depending on index or ratio;
The exercise price of the option reasonably determined by the Group to be exercised;
The amount to be paid to terminate the lease when the lease term reflects that the Group will exercise the option;
The amount expected to be paid according to the residual value of the guarantee provided by the Group.
After the start of the lease term, the Group calculates the interest expense of the lease liabilities in each period ofthe lease term at a fixed periodic interest rate, and includes it in the current profits and losses or related asset costs.
After the commencement of the lease term, if the following circumstances occur, the Group will re-measure thelease liabilities and adjust the corresponding right-to-use assets. If the book value of the right-to-use assets has been
reduced to zero, but the lease liabilities still need to be further reduced, the Group will include the difference in thecurrent profits and losses:
If the lease term changes or the evaluation result of the purchase option changes, the Group will re-measure thelease liabilities according to the present value calculated by the changed lease payment amount and the reviseddiscount rate;If the estimated payable amount according to the guarantee residual value or the index or proportion used todetermine the lease payment changes, the Group will re-measure the lease liabilities according to the present valuecalculated by the changed lease payment amount and the original discount rate.
41.1.4 As the judgment basis and accounting treatment method for the lessee to simplify the treatment of theshort-term lease
For the short-term lease of some factories and some rented warehouses, the Group chooses not to recognize theright-to-use assets and lease liabilities. Short-term lease refers to the lease that does not exceed 12 months and doesnot include the option to purchase on the start date of the lease term. The Group will charge the lease payment forshort-term lease to the current profits and losses or related asset costs in accordance with the straight-line method ineach period of the lease term.
41.1.5 Lease change
If the lease changes and the following conditions are met at the same time, the Group will carry out accountingtreatment on the lease change as a separate lease:
The lease change expands the lease scope by increasing the right to use one or more leased assets;
The increased consideration is equivalent to the individual price of the expanded part of the lease scope adjustedaccording to the contract situation.
If a lease modification is not accounted for as a separate lease, at the effective date of the lease modification, theGroup reapportions the consideration of the modified contract, re-determines the lease term and re-measures thelease liability based on the present value of the modified lease payments and a revised discount rate.
If the lease scope is reduced or the lease term is shortened due to lease change, the Group shall correspondinglyreduce the book value of the right-to-use assets, and include the related gains or losses of partial or full termination oflease in the current profits and losses. If other lease changes lead to the re-measurement of lease liabilities, the Groupwill adjust the book value of the right-to-use assets accordingly.
(2) Accounting treatment method of leasing as a lessor
41.2 The Group as the lessor
41.2.1 Split of lease
If the contract contains both leased and non-leased parts, the Group will allocate the contract considerationaccording to the provisions of the Accounting Standards for Business Enterprises Revenues on transaction priceallocation, and the basis of allocation is the separate prices of the leased part and the non-leased part.
41.2.2 Classification and accounting treatment for rental housing leases
A lease that essentially transfers almost all the risks and rewards related to the ownership of the leased assets isa financial lease. Other leases except financing lease are operating leases.
41.2.2.1 The Group as a lessor records the operating lease business
During each period of the lease term, the Group adopts the straight-line method to recognize the lease receiptsfrom operating lease as rental income. The initial direct expenses incurred by the Group in connection with operatingleases are capitalized when incurred, apportioned on the same basis as rental income recognition during the leaseterm, and included in current profits and losses in installments.
The variable lease receipts related to operating leases obtained by the Group, which are not included in the leasereceipts, are included in the current profits and losses when actually incurred.
41.2.3 Lease change
If there is a change in an operating lease, the Group accounts for it as a new lease from the effective date of thechange, and the amount of lease receipts received in advance or receivable relating to the lease prior to the change isdeemed to be the amount received under the new lease.
42. Other significant accounting policies and accounting estimates
The Group had no significant changes in accounting policies during the current year.
43. Changes in significant accounting policies and estimates
(1) Changes in significant accounting policies
□ Applicable√ Not applicable?
(2) Changes in significant accounting estimates
□ Applicable√ Not applicable?
(3) Adjustment of items related to the financial statements at the beginning of the year when the newaccounting standards are implemented for the first time since 2024
□ Applicable√ Not applicable?
44. Others
No
6. Taxes
1. Main taxes and tax rates
| Tax category | Tax basis | Tax rate |
| VAT | The balance after deducting the deductible input tax from the output tax; The tax calculation method of "exemption, offset and refund" is applied to sales of export products | The output tax for domestic sales is calculated according to 13%, 9%, 6% and 5% of the sales amount calculated according to relevant tax regulations, and the tax rebate rate for export products is 13% |
| Urban maintenance and construction tax | Payable turnover tax | 7% |
| Business income tax | Payable turnover tax | 25%, 20%, 15%, 8.25% |
| Surcharge for education | Payable turnover tax | 3% |
| Local education surcharge | Payable turnover tax | 2% |
| Property tax | Residual value or rental income after deducting 30% from the original value of property at one time | 1.2% |
Disclosure of information about taxpayers with different enterprise income tax rates
| Name of taxpayer | Income tax rate |
| Shenzhen Textile (Holdings) Co., Ltd | 25% |
| Shenzhen Shenfang Real Estate Management Co., Ltd. | 25% |
| Shenzhen Beauty Century Garment Co., Ltd. | 20% (Note 1) |
| Shenzhen Lisi Industrial Co., Ltd. | 20% (Note 1) |
| Shenzhen Shenfang Sungang Real Estate Management Co., Ltd. | 20% (Note 1) |
| Shenzhen Huaqiang Hotel Co., Ltd | 20% (Note 1) |
| Shengtou (HK) Co., Ltd. | 8.25% ( Note 2) |
| Shenzhen SAPO Photoelectric Co., Ltd. | 15% (Note 3) |
2. Tax preference
(1) In 2022, SAPO Photoelectric, a subsidiary of the Company, was jointly recognized as a high-tech enterprise byShenzhen Science and Technology Innovation Committee, Shenzhen Finance Bureau and Shenzhen Tax Service,State Taxation Administration, respectively, with a certification period of 3 years, and the certificate numbers ofGR202244204504 respectively. It shall apply the preferential tax policies for high-tech enterprises within three yearsafter it is recognized as a high-tech enterprise, and pay enterprise income tax at the rate of 15% after being filed by thecompetent tax bureau.
(2) The Company's subsidiaries Shenzhen Beauty Century Garment Co., Ltd., Shenzhen Huaqiang Hotel Co., Ltd.,Shenzhen Lisi Industrial Development Co., Ltd. and Shenzhen Shenfang Sungang Property Management Co., Ltd. arequalified small and low-profit enterprises, and according to the Announcement of the State Taxation Administrationand the Ministry of Finance on Further Supporting the Preferential Income Tax Policies for Small and MicroEnterprises and Individual Industrial and Commercial Households (No. 12 of 2023), for small and low-profit enterprises,the taxable income will be reduced by 20%, and the enterprise income tax policy will be paid at the rate of 20%, whichwill continue to be implemented until December 31, 2027.
(3) In accordance with the relevant provisions of the Notice of the State Administration of Taxation of the GeneralAdministration of Customs of Ministry of Finance on Import Tax Policies for Supporting the Development of the NewDisplay Device Industry (No. 19[2021]Cai Guan Shui), SAPO Photoelectric , a subsidiary of the Company, meets the
relevant conditions and enjoys the policy of exemption from import duties for related products from January 1, 2021 toDecember 31, 2030.
(4) In accordance with the Announcement on the Advanced Manufacturing Enterprise VAT Super-DeductionPolicy (Ministry of Finance and State Taxation Administration Announcement [2023] No. 43), the subsidiary SAPOPhotoelectric meets the relevant conditions and is allowed to deduct an additional 5% of the deductible input VAT fromthe payable VAT amount from January 1, 2023, to December 31, 2027.
(5) The Company's subsidiaries Shenzhen Beauty Century Garment Co., Ltd., Shenzhen Huaqiang Hotel Co., Ltd.,Shenzhen Lisi Industrial Development Co., Ltd. and Shenzhen Shenfang Sungang Property Management Co., Ltd. arequalified small and low-profit enterprises, and according to the Announcement of the State Taxation Administrationand the Ministry of Finance on Further Supporting the Preferential Income Tax Policies for Small and MicroEnterprises and Individual Industrial and Commercial Households (No. 12 of 2023), from January 1, 2023, toDecember 31, 2027, the resource tax (excluding water resource tax), urban maintenance and construction tax,property tax, urban land use tax, stamp duty (excluding securities transaction stamp duty), farmland occupation tax,education surcharge, and local education surcharge for VAT small-scale taxpayers, small and micro-profit enterprises,and individual industrial and commercial households are halved.
(6) According to the Announcement on Further Supporting Key Groups in Entrepreneurship and EmploymentRelated Tax Policies of Ministry of Finance, State Taxation Administration, Ministry of Human Resources and SocialSecurity, and Ministry of Agriculture and Rural Affairs (No. 15 of 2023), the subsidiary SAPO Photoelectric meets therelevant conditions. From January 1, 2023 to December 31, 2027, enterprises that employ people lifted out of poverty,as well as those registered with the public employment service agencies of the Ministry of Human Resources andSocial Security for more than six months and holding the Employment and Entrepreneurship Certificate orEmployment Unemployment Registration Certificate (indicating "Enterprise Absorption Tax Policy"), and sign laborcontracts with them for a period of more than one year and legally pay social insurance premiums, will receive a fixedamount deduction of VAT, urban maintenance and construction tax, education surcharge, local education surcharge,and corporate income tax benefits based on the actual number of people employed, for up to 3 years from the monthof signing the labor contract and paying social insurance premiums. The fixed amount standard is RMB 6,000 perperson per year.
3. Others
Note 1: See Notes (VI), 2(2) for details.
Note 2: According to the Tax Ordinance of Hong Kong, Hong Kong companies applied the two-tier system ofprofits tax , and the first profit of HK$ 2 million will be calculated and paid at 8.25%, and the profits generatedthereafter will be calculated at 16.5%.
Note 3: See Notes (VI), 2(1) for details.
7. Notes to items in the consolidated financial statements
1. Monetary funds
In RMB
| Items | Ending balance | Opening balance |
| Cash on hand | 1,710.83 | 1,710.40 |
| Cash in bank | 224,263,719.56 | 462,967,619.54 |
| Other monetary funds | 1,645,000.00 | 9,305,118.06 |
| Total | 225,910,430.39 | 472,274,448.00 |
| Including : The total amount of deposit abroad | 0.00 | 0.00 |
Other notes
Note 1: Bank deposits include demand deposits and seven-day notice deposit interest totaling RMB 319,864.92.Note 2: As of June 30, 2024, the Company's other monetary funds include a foreign exchange contract margin ofRMB 1,645,000.00.
2. Trading financial assets
In RMB
| Items | Ending balance | Opening balance |
| Financial assets measured at fair value and whose changes are included in the current profits and losses | 958,694,300.63 | 821,946,114.68 |
| Including： | ||
| Monetary funds, structured deposits, and wealth management products | 959,498,109.87 | 821,946,114.68 |
| Foreign Exchange Derivative Products | -803,809.24 | 0.00 |
| Designated financial assets measured at fair value with changes recognized in the current period's profit or loss. | 0.00 | 0.00 |
| Including： | ||
| Total | 958,694,300.63 | 821,946,114.68 |
Other notes: Foreign exchange derivative products are forward foreign exchange contracts designated as hedginginstruments that do not meet the conditions for the application of hedge accounting methods held by the company atthe end of the reporting period. To cope with the risk of exchange rate fluctuations, the company selectively carries outforeign exchange derivative transactions for proper foreign exchange risk management; for those foreign exchangederivative products that do not meet the requirements of hedge accounting standards, the gains or losses arising fromchanges in their fair value are directly recognized in the current period's profit or loss.
3. Derivative financial assets
No
4. Notes receivable
(1) Classified presentation of notes receivable
In RMB
| Items | Ending balance | Opening balance |
| Bank acceptance | 36,077,741.23 | 50,963,943.01 |
| Total | 36,077,741.23 | 50,963,943.01 |
(2) Disclosure under the methods of provision for bad debts by category
In RMB
| Category | Ending balance | Opening balance | ||||||||
| Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
| Amount | Proportion | Amount | Accrual proportion | Amount | Proportion | Amount | Accrual proportion | |||
| Including： | ||||||||||
| Notes receivable with provision for bad debts by combination | 36,077,741.23 | 100.00% | 0.00 | 0.00% | 36,077,741.23 | 50,963,943.01 | 100.00% | 0.00 | 0.00% | 50,963,943.01 |
| Including： | ||||||||||
| Bank acceptance | 36,077,741.23 | 100.00% | 0.00 | 0.00% | 36,077,741.23 | 50,963,943.01 | 100.00% | 0.00 | 0.00% | 50,963,943.01 |
| Total | 36,077,741.23 | 100.00% | 0.00 | 0.00% | 36,077,741.23 | 50,963,943.01 | 100.00% | 0.00 | 0.00% | 50,963,943.01 |
If the provision for bad debts of notes receivable is made according to the general expected credit loss model:
□ Applicable√ Not applicable?
(3) Status of bad debt provision, recovery, or reversal for the periodProvision for bad debts for the current period: NoneWhere accounts receivable with significant from provision for bad debts or recovered in the current period
□ Applicable√ Not applicable?
(4) Notes receivable pledged by the Company at the end of the periodNo
(5) Receivables notes or discounted at period-end not yet due on the Company's balancesheet date
In RMB
| Items | Termination confirmation amount at period-end | Unconfirmed amount at period-end |
| Bank acceptance | 0.00 | 34,511,748.51 |
| Total | 0.00 | 34,511,748.51 |
(6) Situation of notes receivable actually written off in the current periodExplanation of notes receivable write-off:
No actual write-off of notes receivable occurred during the Company's reporting period.
5. Accounts receivable
(1) Disclosure by aging
In RMB
| Aging | Book balance at period end | Beginning book balance |
| Within 1 year (including 1 year) | 1,027,346,527.54 | 848,526,236.04 |
| 1-2 years | 33,704.93 | 1,640,043.18 |
| 2-3 years | 606,936.92 | 618,907.34 |
| Over 3 years | 13,530,118.63 | 12,911,211.29 |
| 3-4 years | 618,907.34 | 0.00 |
| 4 to 5 years | 454,035.81 | 454,035.81 |
| Over 5 years | 12,457,175.48 | 12,457,175.48 |
| Total | 1,041,517,288.02 | 863,696,397.85 |
(2) Disclosure under the methods of provision for bad debts by category
In RMB
| Category | Ending balance | Opening balance | ||||||||
| Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
| Amount | Proportion | Amount | Accrual proportion | Amount | Proportion | Amount | Accrual proportion | |||
| Accounts receivable with provision for bad debts by individual | 53,287,891.34 | 5.12% | 21,498,029.24 | 40.34% | 31,789,862.10 | 71,687,951.26 | 8.30% | 27,464,002.48 | 38.31% | 44,223,948.78 |
| Including： | ||||||||||
| Accounts receivable with provision for bad | 988,229,396.68 | 94.88% | 30,350,194.52 | 3.07% | 957,879,202.16 | 792,008,446.59 | 91.70% | 16,097,561.42 | 2.03% | 775,910,885.17 |
| debts by combination | ||||||||||
| Including： | ||||||||||
| Portfolio 1 | 976,596,693.97 | 93.77% | 30,154,543.62 | 3.09% | 946,442,150.35 | 779,372,185.30 | 90.24% | 15,882,600.54 | 2.04% | 763,489,584.76 |
| Portfolio 2 | 11,632,702.71 | 1.11% | 195,650.90 | 1.68% | 11,437,051.81 | 12,636,261.29 | 1.46% | 214,960.88 | 1.70% | 12,421,300.41 |
| Total | 1,041,517,288.02 | 100.00% | 51,848,223.76 | 4.98% | 989,669,064.26 | 863,696,397.85 | 100.00% | 43,561,563.90 | 5.04% | 820,134,833.95 |
Provision for bad debts by individual item category name: RMB 21,498,029.24
In RMB
| Name | Opening balance | Ending balance | ||||
| Book balance | Bad debt provision | Book balance | Bad debt provision | Accrual proportion | Provision Reason | |
| Customer A | 25,768,718.27 | 5,153,743.65 | 19,626,409.15 | 3,925,281.83 | 20.00% | Total |
| Customer B | 11,106,091.92 | 2,221,218.38 | 7,414,294.75 | 1,482,858.95 | 20.00% | Total |
| Customer C | 11,086,378.19 | 2,217,275.64 | 10,114,193.60 | 2,022,838.72 | 20.00% | Total |
| Customer D | 2,797,016.81 | 2,797,016.81 | 2,797,016.81 | 2,797,016.81 | 100.00% | Impairment loss incurred |
| Customer E | 1,694,849.81 | 1,694,849.81 | 1,694,849.81 | 1,694,849.81 | 100.00% | Impairment loss incurred |
| Other | 19,234,896.26 | 13,379,898.19 | 11,641,127.22 | 9,575,183.12 | 82.25% | Total |
| Total | 71,687,951.26 | 27,464,002.48 | 53,287,891.34 | 21,498,029.24 | ||
Provision for bad debt by combination category name: RMB 30,154,543.62
In RMB
| Name | Ending balance | ||
| Book balance | Bad debt provision | Accrual proportion | |
| During the credit period | 976,596,693.97 | 30,154,543.62 | 3.09% |
| Total | 976,596,693.97 | 30,154,543.62 | |
Description of the basis for determining the combination:
Based on the industry nature and credit status of customers, different credit risk levels are associated with varyingoverdue days, so different credit loss rates are applied to customers with different overdue periods.Provision for bad debt by combination category name: RMB 195,650.90
In RMB
| Name | Ending balance | ||
| Book balance | Bad debt provision | Accrual proportion | |
| Within one year | 11,565,452.71 | 175,475.90 | 1.52% |
| 2-3 years | 67,250.00 | 20,175.00 | 30.00% |
| Total | 11,632,702.71 | 195,650.90 | |
Description of the basis for determining the combination:
For group customers other than SAPO Photoelectric, primarily leasing customers, credit impairment is provisionedbased on the aging method combination.If the provision for bad debts of accounts receivable is made according to the general expected credit loss model:
□ Applicable√ Not applicable?
(3) Status of bad debt provision, recovery, or reversal for the periodProvision for bad debts in the current period:
In RMB
| Category | Opening balance | Amount of change for the period | Ending balance | |||
| Accrual | Recovery or reversal | Write-off | Other | |||
| Bad debt provision | 43,561,563.90 | 38,180,731.92 | -29,894,072.06 | 0.00 | 0.00 | 51,848,223.76 |
| Total | 43,561,563.90 | 38,180,731.92 | -29,894,072.06 | 0.00 | 0.00 | 51,848,223.76 |
Where accounts receivable with significant from provision for bad debts or recovered in the current periodNo significant recovery or reversal of bad debt provision occurred during the Company'sreporting period.
(4) Situation of accounts receivable actually written off in the current period
Explanation of account receivable write-off:
No actual write-off of account receivable occurred during the Company's reportingperiod.
(5) Accounts receivable and contractual assets collected from the debtors which rank the firstfive at the end of period
In RMB
| Name | Accounts receivable balance at the end of period | Ending balance of contractual assets | Ending balance of accounts receivable and contractual assets | Proportion in the total ending balance of accounts receivable and contractual assets | Ending balance of provision for bad debts of accounts receivable and provision for impairment of contractual assets |
| Customer A | 237,062,399.19 | 0.00 | 237,062,399.19 | 22.76% | 7,325,228.13 |
| Customer B | 119,594,837.94 | 0.00 | 119,594,837.94 | 11.48% | 3,695,480.49 |
| Customer C | 116,851,911.97 | 0.00 | 116,851,911.97 | 11.22% | 3,610,724.08 |
| Customer D | 93,726,121.24 | 0.00 | 93,726,121.24 | 9.00% | 2,896,137.15 |
| Customer E | 73,980,827.05 | 0.00 | 73,980,827.05 | 7.10% | 2,286,007.56 |
| Total | 641,216,097.39 | 0.00 | 641,216,097.39 | 61.56% | 19,813,577.41 |
6. Contract assets
(1) Contract asset status
No
(2) Significant changes in book value during the reporting period, amounts and reasonsNo
(3) Disclosure under the methods of provision for bad debts by categoryNoProvision for bad debts made according to the general expected credit loss model
□ Applicable√ Not applicable?
(4) Status of bad debt provision, recovery, or reversal for the periodNo
(5) Actual write-offs of contract assets for the current period
No
7. Receivables financing
(1) Presentation of financings receivable classifications
In RMB
| Items | Ending balance | Opening balance |
| Bank acceptance | 1,764,753.26 | 22,839,459.13 |
| Total | 1,764,753.26 | 22,839,459.13 |
(2) Disclosure under the methods of provision for bad debts by category
In RMB
| Category | Ending balance | Opening balance | ||||||||
| Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
| Amount | Proportion | Amount | Accrual proportion | Amount | Proportion | Amount | Accrual proportion | |||
| Including： | ||||||||||
| Withdrawal of bad debt provisio | 1,764,753.26 | 100.00% | 0.00 | 0.00% | 1,764,753.26 | 22,839,459.13 | 100.00% | 0.00 | 0.00% | 22,839,459.13 |
| n by portfolio | ||||||||||
| Including： | ||||||||||
| Bank acceptance | 1,764,753.26 | 100.00% | 0.00 | 0.00% | 1,764,753.26 | 22,839,459.13 | 100.00% | 0.00 | 0.00% | 22,839,459.13 |
| Total | 1,764,753.26 | 100.00% | 0.00 | 0.00% | 1,764,753.26 | 22,839,459.13 | 100.00% | 0.00 | 0.00% | 22,839,459.13 |
Provision for bad debts made according to the general expected credit loss modelNoThe basis for the division of each stage and the ratio of provisions for bad debtsNoExplanation of significant changes in the book balance of accounts receivable financing subject to loss provisionchanges during the current period:
No
(3) Status of bad debt provision, recovery, or reversal for the periodNoOther notes:
The Company considers that the bank acceptance bills held by the Company have a high credit rating and do nothave significant credit risks, thus no provision for bad debts has been made.
(4) The Company's pledged accounts receivable financing at the end of the period
In RMB
| Items | Amount pledged at the end of the period |
| Bank acceptance | 0.00 |
(5) Financing of receivables that have been endorsed or discounted by the Company and havenot expired on the balance sheet date
In RMB
| Items | Termination confirmation amount at period-end | Unconfirmed amount at period-end |
| Bank acceptance | 78,263,227.37 | 0.00 |
| Total | 78,263,227.37 | 0.00 |
(6) Financing of receivables actually written off in the current period
The Company had no actual write-off of receivables financing during the reporting period.
(7) Increase/decrease in the current period and changes in fair value of accounts receivablefinancingNo
(8) Other notes
There was no pledged accounts receivable financing during the reporting period.
8. Other receivables
In RMB
| Items | Ending balance | Opening balance |
| Interest receivable | 0.00 | 0.00 |
| Dividend receivable | 0.00 | 0.00 |
| Other account receivable | 2,869,233.51 | 3,220,285.42 |
| Total | 2,869,233.51 | 3,220,285.42 |
(1) Interest receivable
1) Classification of interest receivable
No
2) Significant overdue interest
There was no significant overdue interest during the reporting period.
3) Disclosure under the methods of provision for bad debts by category
□ Applicable√ Not applicable?
4) Status of bad debt provision, recovery, or reversal for the period
No
5) Situation of interest receivable actually written off in the current period
No
(2) Dividends receivable
1) Classification of dividends receivable
In RMB
| Project (or investee) | Ending balance | Opening balance |
| Total | 0.00 | 0.00 |
2) Important dividends receivable with aging over 1 year
No
3) Disclosure under the methods of provision for bad debts by category
□ Applicable√ Not applicable?
4) Status of bad debt provision, recovery, or reversal for the period
No
5) Situation of dividends receivable actually written off in the current period
No
(3) Other receivables
1) Classification of other receivables by nature
In RMB
| Payment nature | Book balance at period end | Beginning book balance |
| Deposit and security deposit | 2,079,463.78 | 2,000,722.80 |
| Transactions with non-related parties | 15,787,006.48 | 15,350,589.97 |
| Export rebate | 709,028.48 | 710,026.13 |
| Reserve funds and employee loans | 832,393.94 | 577,183.94 |
| Other | 1,444,853.16 | 2,576,693.37 |
| Total | 20,852,745.84 | 21,215,216.21 |
2) Disclosure by aging
In RMB
| Aging | Book balance at period end | Beginning book balance |
| Within 1 year (including 1 year) | 1,810,258.02 | 1,860,613.92 |
| 1-2 years | 367,403.83 | 548,779.55 |
| 2-3 years | 303,664.18 | 690,301.34 |
| Over 3 years | 18,371,419.81 | 18,115,521.40 |
| 3-4 years | 557,920.96 | 320,903.45 |
| 4 to 5 years | 19,830.90 | 234,916.25 |
| Over 5 years | 17,793,667.95 | 17,559,701.70 |
| Total | 20,852,745.84 | 21,215,216.21 |
3) Disclosure under the methods of provision for bad debts by category
?√Applicable □Not applicable
In RMB
| Category | Ending balance | Opening balance | ||||||||
| Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
| Amount | Proportion | Amount | Accrual proportion | Amount | Proportion | Amount | Accrual proportion | |||
| Including： | ||||||||||
| Withdrawal of bad debt provision by portfolio | 20,852,745.84 | 100.00% | 17,983,512.33 | 86.24% | 2,869,233.51 | 21,215,216.21 | 100.00% | 17,994,930.79 | 84.82% | 3,220,285.42 |
| Including： | ||||||||||
| Other receivables for which provision for credit losses is made based on the credit risk characteristics portfolio | 20,852,745.84 | 100.00% | 17,983,512.33 | 86.24% | 2,869,233.51 | 21,215,216.21 | 100.00% | 17,994,930.79 | 84.82% | 3,220,285.42 |
| Total | 20,852,745.84 | 100.00% | 17,983,512.33 | 86.24% | 2,869,233.51 | 21,215,216.21 | 100.00% | 17,994,930.79 | 84.82% | 3,220,285.42 |
Provision for doubtful debts by combination category name:
In RMB
| Name | Ending balance | ||
| Book balance | Bad debt provision | Accrual proportion | |
| Other receivables for which provision for credit losses is made based on the credit risk characteristics portfolio | 20,852,745.84 | 17,983,512.33 | 86.24% |
| Total | 20,852,745.84 | 17,983,512.33 | |
Description of the basis for determining the combination:
Determined based on aging and customer credit risk.Provision for bad debts made according to the general expected credit loss model:
In RMB
| Bad debt provision | Phase I | Phase II | Phase III | Total |
| Expected credit losses over the next | Expected credit loss throughout the | Expected credit loss throughout the |
| 12 months | duration (no credit impairment) | duration (credit impairment has occurred) | ||
| Balance as of Jan. 1, 2024 | 73,918.97 | 268,296.26 | 17,652,715.56 | 17,994,930.79 |
| Balance on Jan. 1, 2024 in the current period | ||||
| - Transfer to phase II | -3,805.21 | 3,805.21 | 0.00 | 0.00 |
| - Transfer to phase III | 0.00 | -173,051.14 | 173,051.14 | 0.00 |
| Provision in the current period | 61,370.85 | 18,063.49 | 114,443.70 | 193,878.04 |
| Reversal in the current period | -57,344.07 | 0.00 | -147,952.43 | -205,296.50 |
| Balance as of June 30, 2024 | 74,140.54 | 117,113.82 | 17,792,257.97 | 17,983,512.33 |
The basis for the division of each stage and the ratio of provisions for bad debtsChanges in book balance with significant amount of loss provision in the current period
□ Applicable√ Not applicable?
4) Status of bad debt provision, recovery, or reversal for the current period
Provision for bad debts in the current period:
In RMB
| Category | Opening balance | Amount of change for the period | Ending balance | |||
| Accrual | Recovery or reversal | Write-off or cancellation | Other | |||
| Credit impairment losses during existence | 17,994,930.79 | 193,878.04 | -205,296.50 | 17,983,512.33 | ||
| Total | 17,994,930.79 | 193,878.04 | -205,296.50 | 17,983,512.33 | ||
Where the bad debt provision amount recovered or reversed this period is important:
No significant recovery or reversal of bad debt provision during the Company's reporting period.
5) Situation of other accounts receivable actually written off in the current periodNo actual write-off of other receivables during the Company's reporting period.
6) Other receivables collected from the debtors which rank the first five at the end of period
In RMB
| Name | The nature of the amount | Ending balance | Aging | Proportion in the total ending balance of other | End-of-period balance of provision for bad |
| receivables | debt | ||||
| The total amount of other receivables with the top five balances at the end of the year | Account current receivables of external units | 15,896,829.51 | Over 3 years | 76.23% | 15,896,829.51 |
| Total | 15,896,829.51 | 76.23% | 15,896,829.51 |
7) Presented in other receivables due to centralized management of funds
In RMBOther notes:
No presentation in other receivables due to centralized management of funds during the Company's reporting period.
9. Prepayments
(1) Prepayments are presented by aging
In RMB
| Aging | Ending balance | Opening balance | ||
| Amount | Proportion | Amount | Proportion | |
| Within 1 year | 16,829,734.85 | 86.57% | 16,927,119.84 | 86.81% |
| 1-2 years | 36,217.55 | 0.19% | 969,677.39 | 4.97% |
| 2-3 years | 971,029.71 | 4.99% | 1,603,089.57 | 8.22% |
| Over 3 years | 1,603,089.57 | 8.25% | 0.00 | |
| Total | 19,440,071.68 | 19,499,886.80 | ||
Reasons for not timely settlement of prepayments with aging over 1 year and significant amount:
No prepayments with aging over 1 year and significant amount during the Company's reportingperiod.
(2) Top five of advances to suppliers in terms of the ending balance presented by advancereceivers
The total amount of the top five prepayments by payee at the end of the current year is RMB 18,730,187.24,accounting for 96.35% of the scale of the year-end prepayments balance.Other notes:
10. Inventories
Whether the Company needs to comply with the disclosure requirements of the real estate industryNo
(1) Classification of inventory
In RMB
| Items | Ending balance | Opening balance | ||||
| Book balance | Provision for impairment of inventory or contract performance costs | Book value | Book balance | Provision for impairment of inventory or contract performance costs | Book value | |
| Raw materials | 460,776,051.42 | 22,277,155.00 | 438,498,896.42 | 403,031,948.06 | 7,506,047.48 | 395,525,900.58 |
| Processing products | 351,314,969.03 | 34,956,736.49 | 316,358,232.54 | 309,068,674.96 | 64,610,590.25 | 244,458,084.71 |
| Merchandise inventory | 127,084,217.44 | 35,056,533.93 | 92,027,683.51 | 137,596,740.37 | 43,501,540.31 | 94,095,200.06 |
| Commissioned materials | 96,547.07 | 59,189.48 | 37,357.59 | 2,406,793.65 | 93,806.73 | 2,312,986.92 |
| Total | 939,271,784.96 | 92,349,614.90 | 846,922,170.06 | 852,104,157.04 | 115,711,984.77 | 736,392,172.27 |
(2) Data resources recognized as inventory
No
(3) Provision for impairment of inventory or contract performance costs
In RMB
| Items | Opening balance | Increase for the current period | Decrease amount in the current period | Ending balance | |||||
| Accrual | Other | Write-off | Other | ||||||
| Raw materials | 7,506,047.48 | 15,933,192.60 | 1,162,085.08 | 22,277,155.00 | |||||
| Processing products | 64,610,590.25 | 26,421,240.67 | 56,075,094.43 | 34,956,736.49 | |||||
| Merchandise inventory | 43,501,540.31 | 47,364,094.61 | 55,809,100.99 | 35,056,533.93 | |||||
| Commissioned materials | 93,806.73 | 0.00 | 0.00 | 34,617.25 | 0.00 | 59,189.48 | |||
| Total | 115,711,984.77 | 89,718,527.88 | 0.00 | 113,080,897.75 | 0.00 | 92,349,614.90 | |||
| Items | The specific basis for determining the net realizable value | The reason for the reversal or resale of the provision for inventory price decline in the current year | |||||||
| Raw materials, work-in-progress product, and consignment materials | The net realizable value is determined by the estimated selling price of the relevant finished product, less the estimated costs to be incurred at completion, and less the estimated selling expenses and the relevant taxes | Get used or sold in the year | |||||||
| Semi-finished | |||||||||
The net realizable value of the inventory isdetermined by the estimated selling price minusthe estimated selling expenses and relatedtaxes
Sold in the year
The provision for inventory depreciation by combinationNo
Provision criteria for provision of inventory depreciation reserve by combinationNo
(4) Notes to the ending balance of inventories including the capitalization amount ofborrowing costsAs of June 30, 2024, there was no amount in the inventory balance for guarantee and no amount for capitalization ofborrowing costs.
(5) Notes to the amortization amount of contract performance costs in the current periodNo
11. Assets held for sale
No
12. Non-current assets due within one year
No
(1) Debt investments due within one year
□ Applicable√ Not applicable?
(2) Other debt investments due within one year
□ Applicable√ Not applicable?
13. Other current assets
In RMB
| Items | Ending balance | Opening balance |
| Receivable return cost | 21,704,328.56 | 33,326,525.34 |
| VAT to be deducted and input tax to be certified | 26,411,762.08 | 27,399,897.46 |
| Advance payment of income tax | 47,034.59 | 47,034.59 |
| Total | 48,163,125.23 | 60,773,457.39 |
Other notes:
14. Debt investments
(1) Debt investments situation
No
(2) Important debt investments at the end of the period
Significant debt investmentNo
(3) Provision for impairment
No
(4) Situation of debt investments actually written off in the current period
NoDebt investment write-off explanation:
Changes in book balance with significant amount of loss provision in the current period
□ Applicable√ Not applicable?
15. Other debt investments
(1) Other debt investments situation
No
(2) Other important debt investments at the end of the period
No
(3) Provision for impairment
No
(4) Situation of other debt investments actually written off in the current periodNoOther debt investment write-off explanation:
Changes in book balance with significant amount of loss provision in the current period
□ Applicable√ Not applicable?
Other notes:
16. Investment in other equity instruments
In RMB
| Name | Opening balance | Gains recognized in other | Losses recognized in other | Cumulative gains recognize | Cumulative losses recognize | Dividend income recognize | Ending balance | Reasons for designatin |
| comprehensive income for the period | comprehensive income for the period | d in other comprehensive income at period end | d in other comprehensive income at period end | d in the period | g at fair value through other comprehensive income | |||
| Union Development Co., Ltd. | 110,457,700.00 | 107,857,700.00 | 208,000.00 | 110,457,700.00 | Planned to be held by the Group for a long time. | |||
| Shenzhen Dailishi Underwear Co., Ltd. | 17,741,900.00 | 15,182,043.74 | 550,000.00 | 17,741,900.00 | Planned to be held by the Group for a long time. | |||
| Shenzhen South Textile Co., Ltd. | 14,803,400.00 | 13,303,400.00 | 14,803,400.00 | Planned to be held by the Group for a long time. | ||||
| Shenzhen Xinfang Knitting Co., Ltd. | 2,985,900.00 | 2,461,900.00 | 200,000.00 | 2,985,900.00 | Planned to be held by the Group for a long time. | |||
| Jintian Industry (Group) Co., Ltd. | 0.00 | -14,831,681.50 | 0.00 | Planned to be held by the Group for a long time. | ||||
| Total | 145,988,900.00 | 138,805,043.74 | -14,831,681.50 | 958,000.00 | 145,988,900.00 |
De-recognition in the periodNoSegmented disclosure of non-trading equity instrument investments in current periodOther notes:
The Company has no derecognition of investments in other equity instrumentsduring the reporting period.
17. Long-term receivables
(1) Long-term receivables
No
(2) Disclosure under the methods of provision for bad debts by categoryNo
(3) Status of bad debt provision, recovery, or reversal for the periodNo
(4) Situation of accounts receivable actually written off in the current periodNo
18. Long-term equity investments
In RMB
| Investees | Beginning balance (book value) | Beginning balance of provision for impairment | Increase or decrease in the current period | Ending balance (book value) | End-of-period balance of provision for impairment | |||||||
| investment | Profits and losses on investments | Equity method affirmative profit and loss on investments | Adjustment of other comprehensive income | Other equity changes | Cash dividends or profits declared to be distributed | Withdrawal of impairment provision | Other | |||||
| I. Joint ventures | ||||||||||||
| Shenzhen Guanhua Printing & Dyeing Co., Ltd. | 122,370,494.08 | 0.00 | 0.00 | 0.00 | -4,224,706.30 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 118,145,787.78 | 0.00 |
| Subtotal | 122,370,494.08 | 0.00 | 0.00 | 0.00 | -4,224,706.30 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 118,145,787.78 | 0.00 |
| 2. Affiliated company | ||||||||||||
| Shenzhen Changlianfa Printing & dyeing Company | 3,358,117.09 | 0.00 | 0.00 | 0.00 | 124,432.13 | 0.00 | 0.00 | -346,150.00 | 0.00 | 0.00 | 3,136,399.22 | 0.00 |
| Hongkong Yehui International Co., Ltd. | 1,953,409.53 | 0.00 | 0.00 | -1,349,489.37 | -147,459.95 | -115,825.06 | 0.00 | 0.00 | 0.00 | 0.00 | 340,635.15 | 0.00 |
| Subtotal | 5,311,526.62 | 0.00 | -1,349,489.37 | -23,027.82 | -115,825.06 | 0.00 | -346,150.00 | 0.00 | 0.00 | 3,477,034.37 | 0.00 | |
| Total | 127,682,020.70 | 0.00 | -1,349,489.37 | -4,247,734.12 | -115,825.06 | 0.00 | -346,150.00 | 0.00 | 0.00 | 121,622,822.15 | 0.00 |
The recoverable amount is determined by the net amount of the fair value less the disposal expenses
□ Applicable√ Not applicable?
The recoverable amount is determined at the present value of the expected future cash flows
□ Applicable√ Not applicable?
Reasons for the difference between the aforementioned information and the information used in the impairment test ofprevious years or external informationNoReasons for the difference between the information used in the Company's impairment test in previous years and theactual situation in the current yearNoOther notesNo
19. Other non-current financial assets
No
20. Investment properties
(1) Investment property measured at cost
?√Applicable □Not applicable
In RMB
| Items | Houses, buildings | Land use right | Construction in process | Total |
| I. Original price | ||||
| 1. Beginning balance | 350,367,442.40 | 350,367,442.40 | ||
| 2. Increase for | 0.00 | 0.00 |
| the current period | ||||
| (1) Outsourcing | 0.00 | 0.00 | ||
| (2) Transfers from inventories\fixed assets\construction in progress | 0.00 | 0.00 | ||
| (3) Increase from business combinations | 0.00 | 0.00 | ||
| 3. Decrease for the current period | 0.00 | 0.00 | ||
| (1) Disposal | 0.00 | 0.00 | ||
| (2) Other transfers out | 0.00 | 0.00 | ||
| 4. Ending balance | 350,367,442.40 | 350,367,442.40 | ||
| II.Accumulated amortization | ||||
| 1. Beginning balance | 224,764,235.22 | 224,764,235.22 | ||
| 2. Increase for the current period | 4,804,908.55 | 4,804,908.55 | ||
| (1) Provision or amortization | 4,804,908.55 | 4,804,908.55 | ||
| 3. Decrease for the current period | 0.00 | 0.00 | ||
| (1) Disposal | 0.00 | 0.00 | ||
| (2) Other transfers out | 0.00 | 0.00 | ||
| 4. Ending balance | 229,569,143.77 | 229,569,143.77 | ||
| III. Impairment provision | ||||
| 1. Beginning balance | 0.00 | 0.00 | ||
| 2. Increase for the current period | 0.00 | 0.00 | ||
| (1) Provision | 0.00 | 0.00 | ||
| 3. Decrease for the current period | 0.00 | 0.00 | ||
| (1) Disposal | 0.00 | 0.00 |
| (2) Other transfers out | 0.00 | 0.00 | ||
| 4. Ending balance | 0.00 | 0.00 | ||
| IV. Book value | ||||
| 1. Ending book value | 120,798,298.63 | 120,798,298.63 | ||
| 2. Beginning book value | 125,603,207.18 | 125,603,207.18 |
The recoverable amount is determined by the net amount of the fair value less the disposal expenses
□ Applicable√ Not applicable?
The recoverable amount is determined at the present value of the expected future cash flows
□ Applicable√ Not applicable?
Reasons for the difference between the aforementioned information and the information used in the impairment test ofprevious years or external informationNoReasons for the difference between the information used in the Company's impairment test in previous years and theactual situation in the current yearOther notes:
(2) Investment property measured at fair value
□ Applicable√ Not applicable?
(3) Convert to investment property and measure at fair value
No
(4) Investment property without certificate of title
In RMB
| Items | Book value | Reason |
| Houses and Building | 12,172,717.76 | Unable to apply for warrants due to historical reasons |
Other notes
21. Fixed assets
In RMB
| Items | Ending balance | Opening balance |
| Fixed assets | 1,956,105,719.74 | 2,066,006,237.73 |
| Total | 1,956,105,719.74 | 2,066,006,237.73 |
(1) Status of fixed assets
In RMB
| Items | Houses & buildings | Machinery equipment | Transportation equipment | Electronic equipment and Other | Total |
| I. Original price | |||||
| 1. Beginning balance | 727,679,833.94 | 2,711,433,903.98 | 17,090,895.87 | 44,539,622.55 | 3,500,744,256.34 |
| 2. Increase for the current period | 0.00 | 3,177,076.51 | 124,424.77 | 660,609.47 | 3,962,110.75 |
| (1) Acquisitions | 0.00 | 3,177,076.51 | 124,424.77 | 660,609.47 | 3,962,110.75 |
| (2) Transfer from construction in progress | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| (3) Increase from business combinations | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3. Decrease for the current period | 0.00 | 0.00 | 0.00 | 564,935.61 | 564,935.61 |
| (1) Disposal or scrapping | 0.00 | 0.00 | 0.00 | 564,935.61 | 564,935.61 |
| 4. Ending balance | 727,679,833.94 | 2,714,610,980.49 | 17,215,320.64 | 44,635,296.41 | 3,504,141,431.48 |
| II. Accumulated depreciation | |||||
| 1. Beginning balance | 189,420,295.28 | 1,179,132,635.63 | 7,869,614.58 | 33,092,767.56 | 1,409,515,313.05 |
| 2. Increase for the current period | 11,566,705.73 | 99,124,552.68 | 1,021,614.91 | 2,120,640.37 | 113,833,513.69 |
| (1) Provision | 11,566,705.73 | 99,124,552.68 | 1,021,614.91 | 2,120,640.37 | 113,833,513.69 |
| 3. Decrease for the current period | 0.00 | 0.00 | 0.00 | 535,820.56 | 535,820.56 |
| (1) Disposal or scrapping | 0.00 | 0.00 | 0.00 | 535,820.56 | 535,820.56 |
| 4. Ending balance | 200,987,001.01 | 1,278,257,188.31 | 8,891,229.49 | 34,677,587.37 | 1,522,813,006.18 |
| III. Impairment provision | |||||
| 1. Beginning balance | 9,820,261.26 | 15,149,037.18 | 6,126.41 | 247,280.71 | 25,222,705.56 |
| 2. Increase for the current period | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| (1) Provision | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3. Decrease for the current period | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| (1) Disposal or scrapping | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 4. Ending balance | 9,820,261.26 | 15,149,037.18 | 6,126.41 | 247,280.71 | 25,222,705.56 |
| IV. Book value | |||||
| 1. Ending book value | 516,872,571.67 | 1,421,204,755.00 | 8,317,964.74 | 9,710,428.33 | 1,956,105,719.74 |
| 2. Beginning book value | 528,439,277.40 | 1,517,152,231.17 | 9,215,154.88 | 11,199,574.28 | 2,066,006,237.73 |
(2) Temporarily idle fixed assets
No
(3) Fixed assets leased out through operating leases
No
(4) Fixed assets without certificates of title
In RMB
| Items | Book value | Reasons for not completing the certificate of title |
| Houses and Building | 11,004,437.57 | Unable to apply for warrants due to historical reasons |
Other notesFor fixed assets mortgaged for bank loans during the reporting period, refer to notes "31. Assets with restrictedownership or use rights".
(5) Impairment test of fixed assets
□ Applicable√ Not applicable?
(6) Liquidation of fixed assets
No
22. Construction in progress
In RMB
| Items | Ending balance | Opening balance |
| Construction in process | 35,178,323.03 | 31,307,060.74 |
| Total | 35,178,323.03 | 31,307,060.74 |
(1) Status of construction in progress
In RMB
| Items | Ending balance | Opening balance | ||||
| Book balance | Closing balance of impairment provision | Book value | Book balance | Closing balance of impairment provision | Book value | |
| Installation of machinery and equipment | 35,178,323.03 | 0.00 | 35,178,323.03 | 31,307,060.74 | 0.00 | 31,307,060.74 |
| Total | 35,178,323.03 | 0.00 | 35,178,323.03 | 31,307,060.74 | 0.00 | 31,307,060.74 |
(2) Changes in important construction in progress in the current periodNo
(3) Status of impairment of construction in progress in the current periodNo
(4) Status of impairment test of construction in progress
□ Applicable√ Not applicable?
(5) Project materials
No
23. Productive biological assets
(1) Productive biological assets measured at cost
□ Applicable√ Not applicable?
(2) Impairment test of productive biological assets measured at cost
□ Applicable√ Not applicable?
(3) Productive biological assets measured at fair value
□ Applicable√ Not applicable?
24. Oil and gas assets
□ Applicable√ Not applicable?
25. Right-of-use assets
(1) Right-of-use assets situation
In RMB
| Items | Houses & buildings | Machinery equipment | Total |
| I. Original price | |||
| 1. Beginning balance | 33,450,802.23 | 33,450,802.23 | |
| 2. Increase for the current period | 6,422,357.96 | 2,044,236.48 | 8,466,594.44 |
| (1) Newly increased | 6,422,357.96 | 2,044,236.48 | 8,466,594.44 |
| 3. Decrease for the current period | |||
| 4. Ending balance | 39,873,160.19 | 2,044,236.48 | 41,917,396.67 |
| II. Accumulated depreciation | |||
| 1. Beginning balance | 21,451,335.66 | 0.00 | 21,451,335.66 |
| 2. Increase for the current period | 4,113,325.52 | 670,825.26 | 4,784,150.78 |
| (1) Provision | 4,113,325.52 | 670,825.26 | 4,784,150.78 |
| 3. Decrease for the current period | |||
| (1) Disposal | |||
| 4. Ending balance | 25,564,661.18 | 670,825.26 | 26,235,486.44 |
| III. Impairment provision | |||
| 1. Beginning balance | |||
| 2. Increase for the current period | |||
| (1) Provision | |||
| 3. Decrease for the current period | |||
| (1) Disposal |
| 4. Ending balance | |||
| IV. Book value | |||
| 1. Ending book value | 14,308,499.01 | 1,373,411.22 | 15,681,910.23 |
| 2. Beginning book value | 11,999,466.57 | 0.00 | 11,999,466.57 |
(2) Impairment test of right-of-use assets
□ Applicable√ Not applicable?
Other notes:
26. Intangible assets
(1) Intangible assets
In RMB
| Items | Land use right | Patent | Non-Patent Technology] | Software | Total |
| I. Original price | |||||
| 1. Beginning balance | 48,258,239.00 | 11,825,200.00 | 22,600,069.86 | 82,683,508.86 | |
| 2. Increase for the current period | 0.00 | 0.00 | 117,623.76 | 117,623.76 | |
| (1) Acquisitions | 0.00 | 0.00 | 117,623.76 | 117,623.76 | |
| (2) Internal research and development | 0.00 | 0.00 | 0.00 | 0.00 | |
| (3) Increase from business combinations | 0.00 | 0.00 | 0.00 | 0.00 | |
| 3. Decrease for the current period | 0.00 | 0.00 | 0.00 | 0.00 | |
| (1) Disposal | 0.00 | 0.00 | 0.00 | 0.00 | |
| 4. Ending balance | 48,258,239.00 | 11,825,200.00 | 22,717,693.62 | 82,801,132.62 | |
| II.Accumulated amortization | |||||
| 1. Beginning balance | 16,165,713.67 | 11,825,200.00 | 15,128,172.39 | 43,119,086.06 | |
| 2. Increase for the current | 445,782.66 | 0.00 | 1,873,047.75 | 2,318,830.41 |
| period | |||||
| (1) Provision | 445,782.66 | 0.00 | 1,873,047.75 | 2,318,830.41 | |
| 3. Decrease for the current period | 0.00 | 0.00 | 0.00 | 0.00 | |
| (1) Disposal | 0.00 | 0.00 | 0.00 | 0.00 | |
| 4. Ending balance | 16,611,496.33 | 11,825,200.00 | 17,001,220.14 | 45,437,916.47 | |
| III. Impairment provision | |||||
| 1. Beginning balance | 0.00 | 0.00 | 0.00 | 0.00 | |
| 2. Increase for the current period | 0.00 | 0.00 | 0.00 | 0.00 | |
| (1) Provision | 0.00 | 0.00 | 0.00 | 0.00 | |
| 3. Decrease for the current period | 0.00 | 0.00 | 0.00 | 0.00 | |
| (1) Disposal | 0.00 | 0.00 | 0.00 | 0.00 | |
| 4. Ending balance | 0.00 | 0.00 | 0.00 | 0.00 | |
| IV. Book value | |||||
| 1. Ending book value | 31,646,742.67 | 0.00 | 5,716,473.48 | 37,363,216.15 | |
| 2. Beginning book value | 32,092,525.33 | 0.00 | 7,471,897.47 | 39,564,422.80 |
The proportion of intangible assets formed by the Company's internal research and development at the end of thecurrent period to the balance of intangible assets is 0.00%
(2) Data resources recognized as intangible assets
No
(3) Land use right without certificate of title
NoOther notes
For intangible assets pledged due to bank loans during the reporting period, refer to notes '31. Assets with restrictedownership or use rights'.
(4) Impairment test of intangible assets
□ Applicable√ Not applicable?
27. Goodwill
(1) Original book value of goodwill
In RMB
| Name of the investee or matters that form goodwill | Opening balance | Increase in the current period | Decrease in the current period | Ending balance | ||
| Formed through business combination | Disposal | |||||
| Shenzhen SOPO Photoelectric Co., Ltd. | 9,614,758.55 | 9,614,758.55 | ||||
| Shenzhen Beauty Century Garment Co., Ltd. | 2,167,341.21 | 2,167,341.21 | ||||
| Total | 11,782,099.76 | 11,782,099.76 | ||||
(2) Provision for impairment of goodwill
In RMB
| Name of the investee or matters that form goodwill | Opening balance | Increase in the current period | Decrease in the current period | Ending balance | ||
| Accrual | Disposal | |||||
| Shenzhen SOPO Photoelectric Co., Ltd. | 9,614,758.55 | 9,614,758.55 | ||||
| Shenzhen Beauty Century Garment Co., Ltd. | 2,167,341.21 | 2,167,341.21 | ||||
| Total | 11,782,099.76 | 11,782,099.76 | ||||
(3) Information on the asset group or combination of asset groups where the goodwill islocated
| Name | Composition and basis of the asset group or portfolio | Operating segments and their basis | Consistency with previous years |
Changes in asset group or asset portfolio
| Name | Composition before change | Composition after change | Objective facts and basis for changes |
Other notes
(4) Specific determination method of recoverable amount
The recoverable amount is determined by the net amount of the fair value less the disposal expenses
□ Applicable√ Not applicable?
The recoverable amount is determined at the present value of the expected future cash flows
□ Applicable√ Not applicable?
Reasons for the difference between the aforementioned information and the information used in the impairment test ofprevious years or external informationReasons for the difference between the information used in the Company's impairment test in previous years and theactual situation in the current year
(5) Completion of performance commitments and corresponding impairment of goodwillGoodwill formed with performance commitments during the reporting period or the previous period within theperformance commitment period
□ Applicable√ Not applicable?
Other notes
28. Long-term deferred expenses
In RMB
| Items | Opening balance | Increase for the current period | Amortization amount for the current period | Other reduction amount | Ending balance |
| Decoration and facilities renovation fee | 3,503,660.94 | 2,347,034.33 | 1,279,415.92 | 4,571,279.35 | |
| Total | 3,503,660.94 | 2,347,034.33 | 1,279,415.92 | 4,571,279.35 |
Other notes
29. Deferred tax assets/deferred tax liabilities
(1) Deferred income tax assets without offset
In RMB
| Items | Ending balance | Opening balance | ||
| Deductible temporary difference | Deferred income tax asset | Deductible temporary difference | Deferred income tax asset | |
| Asset impairment provision | 178,026,209.35 | 28,243,972.64 | 192,506,873.67 | 30,414,966.51 |
| Unrealized profit from internal transactions | 2,101,406.20 | 315,210.93 | 2,145,963.47 | 321,894.52 |
| Deductible loss | 101,414,354.40 | 15,212,153.16 | 127,769,387.40 | 19,165,408.11 |
| Deferred income | 92,101,907.70 | 13,815,286.16 | 96,647,256.82 | 14,497,088.52 |
| Changes in fair value of investment in other equity instruments | 14,831,681.50 | 3,707,920.38 | 14,831,681.50 | 3,707,920.38 |
| Employees’ wage payable | 4,173,800.00 | 1,043,450.00 | 4,173,800.00 | 1,043,450.00 |
| Lease liabilities | 17,302,726.46 | 2,595,408.97 | 12,177,572.68 | 1,826,635.90 |
| Total | 409,952,085.61 | 64,933,402.24 | 450,252,535.54 | 70,977,363.94 |
(2) Deferred income tax liabilities without offset
In RMB
| Items | Ending balance | Opening balance | ||
| Deductible temporary difference | Deferred income tax liability | Deductible temporary difference | Deferred income tax liability | |
| Asset appraisal appreciation from business combination not under common control | 62,083,693.36 | 15,520,923.34 | 62,083,693.36 | 15,520,923.34 |
| Changes in fair value of investment in other equity instruments | 138,805,043.74 | 34,701,260.94 | 138,805,043.74 | 34,701,260.94 |
| Rent receivable | 9,212,846.48 | 2,303,211.62 | 10,108,726.81 | 2,527,181.70 |
| Use right assets | 15,681,910.23 | 2,352,286.53 | 11,999,466.57 | 1,799,919.99 |
| Total | 225,783,493.81 | 54,877,682.43 | 222,996,930.48 | 54,549,285.97 |
(3) Deferred tax assets or liabilities presented by net amount after offset
In RMB
| Items | Amount of deferred tax assets and liabilities offset at the end of the period | Ending balance of deferred tax assets or liabilities after offset | Amount of deferred tax assets and liabilities offset at the beginning of the period | Balance of deferred tax assets or liabilities after offset at the beginning of the period |
| Deferred income tax asset | -10,926,679.50 | 54,006,722.74 | -10,371,998.52 | 60,605,365.42 |
| Deferred income tax liability | -10,926,679.50 | 43,951,002.93 | -10,371,998.52 | 44,177,287.45 |
(4) Details of unrecognized deferred tax assets
In RMB
| Items | Ending balance | Opening balance |
| Deductible temporary difference | 3,086,695.01 | 14,740,965.97 |
| Deductible loss | 427,899,981.65 | 442,263,671.30 |
| Total | 430,986,676.66 | 457,004,637.27 |
(5) The deductible losses of the unrecognized deferred tax assets will become due in thefollowing years:
In RMB
| Year | Ending amount | Beginning amount | Remarks |
| 2024 | 67,804,103.36 | 69,053,143.67 | |
| 2025 | |||
| 2026 | 53,989,578.07 | 53,989,578.07 | |
| 2027 | 10,067,397.50 | 10,067,397.50 | |
| 2028 | 39,988,583.76 | 39,988,583.76 | |
| 2029 | 129,732,249.98 | 129,732,249.98 | |
| 2030 | 75,352,814.24 | 75,352,814.24 | |
| 2031 | |||
| 2032 | |||
| 2033 | 50,965,254.74 | 64,079,904.08 | |
| Total | 427,899,981.65 | 442,263,671.30 |
Other notes
30. Other non-current assets
In RMB
| Items | Ending balance | Opening balance | ||||
| Book balance | Closing balance of impairment provision | Book value | Book balance | Closing balance of impairment provision | Book value | |
| Prepayment for engineering and equipment | 1,961,569.88 | 0.00 | 1,961,569.88 | 3,757,334.44 | 0.00 | 3,757,334.44 |
| Investment funds to be liquidated | 25,760,086.27 | 0.00 | 25,760,086.27 | 25,760,086.27 | 0.00 | 25,760,086.27 |
| Total | 27,721,656.15 | 0.00 | 27,721,656.15 | 29,517,420.71 | 0.00 | 29,517,420.71 |
Other notes:
31. Assets with restricted ownership or usage rights
In RMB
| Items | End of period | Beginning of period | ||||||
| Book balance | Book value | Restricted type | Restricted circumstances | Book balance | Book value | Restricted type | Restricted circumstances | |
| Monetary fund | 1,645,000.00 | 1,645,000.00 | Restricted right of use | Deposit | 9,305,118.06 | 9,305,118.06 | Restricted right of use | Account Freezing and Margin |
| Note | 34,511,74 | 34,511,74 | Restricted | The | 42,665,95 | 42,665,95 | Restricted | The |
| receivable | 8.51 | 8.51 | right of use | endorsement of the note is not terminated | 4.11 | 4.11 | right of use | endorsement of the note is not terminated |
| Fixed assets | 572,261,261.14 | 446,366,105.88 | Restricted right of use | Mortgage | 572,261,261.14 | 454,185,881.22 | Restricted right of use | Mortgage |
| Intangible assets | 44,770,083.00 | 31,650,569.11 | Restricted right of use | Mortgage | 44,770,083.00 | 32,092,525.33 | Restricted right of use | Mortgage |
| Total | 653,188,092.65 | 514,173,423.50 | 669,002,416.31 | 538,249,478.72 |
Other notes:
32. Short-term loans
(1) Classification of short-term debts
In RMB
| Items | Ending balance | Opening balance |
| Credit loans | 0.00 | 8,000,000.00 |
| Total | 0.00 | 8,000,000.00 |
Explanation of short-term borrowing classification:
(2) Overdue and outstanding short-term debts
The total amount of overdue outstanding short-term borrowings at the end of the current period is RMB 0.00, amongwhich the significant overdue outstanding short-term borrowings are as follows:
No
33. Trading financial liabilities
No
34. Derivative financial liabilities
No
35. Notes payable
In RMB
| Items | Ending balance | Opening balance |
| Bank acceptance | 10,743,421.84 | 31,049,291.49 |
| Total | 10,743,421.84 | 31,049,291.49 |
The total amount of notes payable due but not paid at the end of the current period is RMB 0.00, with the reason fornon-payment being
36. Accounts payable
(1) Presentation of accounts payable
In RMB
| Items | Ending balance | Opening balance |
| Payment for goods | 435,971,009.55 | 386,767,637.00 |
| Service charge | 35,459,137.27 | 13,817,610.72 |
| Loyalities | 3,132,927.00 | 2,207,166.50 |
| Subcontracting payment | 0.00 | 4,584,423.60 |
| Other | 0.00 | 1,171,298.42 |
| Total | 474,563,073.82 | 408,548,136.24 |
(2) Significant payable aging over 1 year or overdue
The Company had no significant accounts payable aging over 1 year or overdue during the reporting period.
37. Other payables
In RMB
| Items | Ending balance | Opening balance |
| Interest payable | 0.00 | 0.00 |
| Dividend payable | 0.00 | 0.00 |
| Other payable | 180,013,733.22 | 184,528,344.55 |
| Total | 180,013,733.22 | 184,528,344.55 |
(1) Interest payable
No
(2) Dividends payable
No
(3) Other payables
1) Other payable listed by nature
In RMB
| Items | Ending balance | Opening balance |
| Engineering equipment payment | 70,135,840.91 | 67,176,881.34 |
| Current payment | 55,704,466.53 | 56,444,481.12 |
| Deposit and security deposit | 40,023,495.26 | 48,208,919.61 |
| Other | 14,149,930.52 | 12,698,062.48 |
| Total | 180,013,733.22 | 184,528,344.55 |
2) Other significant payable with aging over 1 year or overdue
The Company had no other significant payables aging over 1 year or overdue during the reporting period.
38. Advance receipts
(1) Presentation of advances received
In RMB
| Items | Ending balance | Opening balance |
| Rent and other | 1,384,783.04 | 1,450,096.30 |
| Total | 1,384,783.04 | 1,450,096.30 |
(2) Significant advance receivable with aging over 1 year or overdue
The Company had no significant advance receivable aging over 1 year during the reporting period.
39. Contract liabilities
In RMB
| Items | Ending balance | Opening balance |
| Amount for the disposal of waste iodine solution | 10,594,097.31 | 0.00 |
| Payment for goods | 421,656.19 | 1,436,943.34 |
| Total | 421,656.19 | 1,436,943.34 |
Significant contractual liabilities with aging over 1 yearNoSignificant changes in book value during the reporting period, amounts and reasonsNo
40. Employee compensation
(1) Employee compensation breakdown
In RMB
| Items | Opening balance | Increase in the current period | Decrease in the current period | Ending balance |
| I. Short-term compensations | 53,853,081.65 | 105,149,865.39 | 111,000,206.40 | 48,002,740.64 |
| II. Post-employment benefits - defined contribution plans | 0.00 | 8,555,861.68 | 8,555,861.68 | 0.00 |
| III. Termination benefits | 2,584,080.44 | 2,533,171.54 | 4,674,926.18 | 442,325.80 |
| Total | 56,437,162.09 | 116,238,898.61 | 124,230,994.26 | 48,445,066.44 |
(2) Short-term compensation breakdown
In RMB
| Items | Opening balance | Increase in the current period | Decrease in the current period | Ending balance |
| 1. Wages, bonus, allowance and subsidy | 50,484,811.72 | 92,196,498.99 | 98,327,820.07 | 44,353,490.64 |
| 2. Staff welfare | 0.00 | 4,379,478.21 | 4,379,478.21 | 0.00 |
| 3. Social insurance premium | 0.00 | 2,266,661.37 | 2,266,661.37 | 0.00 |
| Including：Medical insurance | 0.00 | 1,747,840.68 | 1,747,840.68 | 0.00 |
| Work injury insurance | 0.00 | 196,782.08 | 196,782.08 | 0.00 |
| Maternity insurance | 0.00 | 322,038.61 | 322,038.61 | 0.00 |
| 4. Housing provident funds | 0.00 | 3,897,839.72 | 3,897,839.72 | 0.00 |
| 5. Labor Union fee and staff education expenses | 3,368,269.93 | 2,409,387.10 | 2,128,407.03 | 3,649,250.00 |
| Total | 53,853,081.65 | 105,149,865.39 | 111,000,206.40 | 48,002,740.64 |
(3) Defined contribution plan breakdown
In RMB
| Items | Opening balance | Increase in the current period | Decrease in the current period | Ending balance |
| 1. Basic endowment insurance | 0.00 | 7,060,060.83 | 7,060,060.83 | 0.00 |
| 2. Unemployment insurance premium | 0.00 | 330,717.73 | 330,717.73 | 0.00 |
| 3. Enterprise annuity payment | 0.00 | 1,165,083.12 | 1,165,083.12 | 0.00 |
| Total | 0.00 | 8,555,861.68 | 8,555,861.68 | 0.00 |
Other notesThe Company participates in pension insurance and unemployment insurance plans established by governmentagencies according to regulations, and according to the plans, the Company pays fees to these plans according to theprescribed standards. In addition to the above-mentioned monthly deposit fees, the Company will no longer assumefurther payment obligations. The corresponding expenses are included in the current profits and losses or the relatedasset costs when incurred.During the reporting period, the Company contributed RMB 7,060,060.83 and RMB 330,717.73 to the pension andunemployment insurance plans, respectively (for the first half of 2023: RMB 5,633,933.03 and RMB 140,977.99).During the reporting period, the Company fully paid the amounts due for the pension and unemployment insuranceplans.
41. Taxes payable
In RMB
| Items | Ending balance | Opening balance |
| VAT | 595,374.83 | 582,961.29 |
| Business income tax | 1,821,926.28 | 2,080,849.81 |
| Individual Income tax | 378,799.93 | 1,080,628.82 |
| Other | 3,979,586.13 | 596,455.22 |
| Total | 6,775,687.17 | 4,340,895.14 |
Other notes
42. Liabilities held for sale
No
43. Non-current liabilities due within one year
In RMB
| Items | Ending balance | Opening balance |
| Long-term loans maturing within one year | 102,417,872.13 | 102,612,497.53 |
| Lease liabilities due within one year | 7,123,249.76 | 5,490,255.46 |
| Total | 109,541,121.89 | 108,102,752.99 |
Other notes:
44. Other current liabilities
In RMB
| Items | Ending balance | Opening balance |
| Return payable | 24,329,008.76 | 37,244,449.90 |
| Endorsed and unexpired acceptance bill | 34,511,748.51 | 42,665,954.11 |
| To be rescheduled | 40,714.89 | 172,073.21 |
| Total | 58,881,472.16 | 80,082,477.22 |
Changes in short-term bonds payable:
No
45. Long-term loans
(1) Classification of long-term loans
In RMB
| Items | Ending balance | Opening balance |
| Secured loans | 557,074,516.69 | 608,190,812.09 |
| Less: Long-term loans due within one year | -102,417,872.13 | -102,612,497.53 |
| Total | 454,656,644.56 | 505,578,314.56 |
Description of long-term loans classification:
Additional information, including interest rate range:
Note: SAPO Photoelectric, a subsidiary of the Company, mortgaged its real estate rights such as the factorybuilding, and the Company and HMEV provided 60% and 40% joint guarantee for the loan respectively.
46. Bonds payable
(1) Bonds payable
No
(2) Increase/decrease in bonds payable (excluding preferred stock, perpetual bonds and otherfinancial instruments divided into financial liabilities)No
(3) Notes to convertible corporate bonds
No
(4) Description of other financial instruments divided into financial liabilitiesNo
47. Lease liabilities
In RMB
| Items | Ending balance | Opening balance |
| Lease liabilities | 17,302,726.46 | 12,177,572.68 |
| Less: Lease liabilities due within one year | -7,123,249.76 | -5,490,255.46 |
| Total | 10,179,476.70 | 6,687,317.22 |
Other notes:
48. Long-term payable
No
(1) Long-term payable listed by nature
No
(2) Special payable
No
49. Long-term employee compensation payable
(1) Table of long-term employee compensation payable
No
(2) Changes in defined benefit plans
No
50. Estimated liabilities
No
51. Deferred income
In RMB
| Items | Opening balance | Increase in the current period | Decrease in the current period | Ending balance | Reason |
| 29. Government subsidies | 97,485,986.89 | 6,603,095.11 | 11,371,158.76 | 92,717,923.24 | Received the government subsidies |
| Total | 97,485,986.89 | 6,603,095.11 | 11,371,158.76 | 92,717,923.24 |
Other notes:
52. Other non-current liabilities
No
53. Capital stock
In RMB
| Opening balance | Increase/decrease in this change (+, -) | Ending balance | |||||
| Share allotment | Bonus shares | Capitalization of common reserve fund | Other | Subtotal | |||
| Total of capital shares | 506,521,849.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 506,521,849.00 |
Other notes:
54. Other equity instruments
(1) Basic information of preferred stock, perpetual bonds and other financial instruments issued at the end ofthe period
(2) Table of changes in preferred stock, perpetual bonds and other financial instruments issued at the end ofthe periodNo
55. Capital reserve
In RMB
| Items | Opening balance | Increase in the current period | Decrease in the current period | Ending balance |
| Capital premium (equity premium) | 1,826,482,608.54 | 0.00 | 0.00 | 1,826,482,608.54 |
| Other capital reserves | 135,117,216.09 | 0.00 | 0.00 | 135,117,216.09 |
| Total | 1,961,599,824.63 | 0.00 | 0.00 | 1,961,599,824.63 |
Other notes, including the changes in the current period and the reasons for the changes:
56. Treasury stock
No
57. Other comprehensive income
In RMB
| Items | Opening balance | Amount for the current period | Ending balance | |||||
| Amount before income tax for the current period | Less：Amount transferred into profit and loss in the current period that recognized into other comprehensive income in prior period | Less：Prior period included in other composite income transfer to retained income in the current period | Less：Income tax expenses | After-tax attribute to the parent company | After-tax attribute to minority shareholder | |||
| I. Other comprehensive income | 92,317,307.32 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 92,317,307.32 |
| can’t be reclassified into profit or loss | ||||||||
| Changes in fair value of other debt investments | 92,317,307.32 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 92,317,307.32 |
| II. Reclassify other comprehensive income that is to be included in profit or loss. | 1,290,073.49 | -115,825.06 | 0.00 | 0.00 | 0.00 | -115,825.06 | 0.00 | 1,174,248.43 |
| Translation difference of foreign currency financial statements | 1,290,073.49 | -115,825.06 | 0.00 | 0.00 | 0.00 | -115,825.06 | 0.00 | 1,174,248.43 |
| Total of other comprehensive income | 93,607,380.81 | -115,825.06 | 0.00 | 0.00 | 0.00 | -115,825.06 | 0.00 | 93,491,555.75 |
Additional information, including adjustments to the initial recognition amount of the hedged item for the effectiveportion of cash flow hedge gains and losses:
58. Special reserves
No
59. Surplus reserve
In RMB
| Items | Opening balance | Increase in the current period | Decrease in the current period | Ending balance |
| Statutory surplus reserve | 104,262,315.64 | 104,262,315.64 | ||
| Total | 104,262,315.64 | 104,262,315.64 |
Description of surplus reserves, including the changes in the current period and the reasons for the changes:
60. Undistributed profits
In RMB
| Items | Increase for the current | Previous period |
| Undistributed profit at the end of the previous period before adjustment | 216,160,896.14 | 170,636,610.95 |
| Total adjusted undistributed profit at the beginning of the period (increase +, decrease -) | 0.00 | 0.00 |
| Undistributed profit at the beginning of the period after adjustment | 216,160,896.14 | 170,636,610.95 |
| Add: Net profit attributable to owners of the parent company for the current period | 43,894,075.23 | 79,268,250.45 |
| Less: Withdrawal of statutory surplus reserve | 0.00 | 3,352,654.32 |
| Common stock dividends payable | 32,923,916.72 | 30,391,310.94 |
| Undistributed profit at the end of the period | 227,131,054.65 | 216,160,896.14 |
Details of undistributed profit at the beginning of the period after adjustment
1) Due to the retrospective adjustment of the Accounting Standards for Business Enterprises and its relevant newprovisions, the retained profit at the beginning of the period was affected by RMB0.00.
2) Due to the change in accounting policies, the retained profit at the beginning of the period was affected by RMB0.00.
3) Due to the correction of major accounting errors, the retained profit at the beginning of the period was affected byRMB0.00.
4) Due to the change in the scope of consolidation caused by the same control, the retained profit at the beginning ofthe period was affected by RMB0.00.
5) The total impact of other adjustments on the retained profit at the beginning of the period was RMB0.00.
61. Operating income and operating costs
In RMB
| Items | Amount for the current period | Amount for the previous period | ||
| Income | Cost | Income | Cost | |
| Main business | 1,597,753,543.24 | 1,389,109,924.42 | 1,470,203,939.11 | 1,286,170,472.71 |
| Other business | 25,630,608.66 | 496,128.64 | 19,891,730.44 | 0.00 |
| Total | 1,623,384,151.90 | 1,389,606,053.06 | 1,490,095,669.55 | 1,286,170,472.71 |
Breakdown of operating income and operating cost:
In RMB
| Classification of contracts | Total | |
| Operating income | Operation cost | |
| Business type | ||
| Including： | ||
| Polarizer sales | 1,540,330,898.01 | 1,374,275,754.64 |
| Lease of Property and others | 83,053,253.89 | 15,330,298.42 |
| Classified by business area | ||
| Including： | ||
| Domestic | 1,550,122,549.78 | 1,331,504,165.72 |
| Overseas | 73,261,602.12 | 58,101,887.34 |
| Total | 1,623,384,151.90 | 1,389,606,053.06 |
Information related to performance obligations:
NoOther notesThe Company's goods sales are mainly the production and sales of polarizer and textile-related goods. For goodssold to customers, the Group recognizes income when the control of the goods is transferred, that is, when the goodsare delivered to the designated place of the other party and signed by the other party. Since the delivery of goods tocustomers represents the right to unconditionally receive the contract consideration, the maturity of the money onlydepends on the passage of time, so the Group recognizes a receivable when the goods are delivered to professionalcustomers. When the customer prepays the payment, the Group recognizes the transaction amount received as acontractual liability until the goods are delivered to the customer.
The Company provides property and leasing services to customers, which is a performance obligation to befulfilled within a certain period of time. The Company recognizes income in the process of providing property andleasing services.Information related to the transaction price allocated to the remaining performance obligations:
At the end of the reporting period, the revenue amount corresponding to performance obligations that have beencontracted but not yet fulfilled or not yet fully fulfilled is RMB 11,015,753.50, of which RMB 11,015,753.50 is expectedto be recognized as revenue in the fiscal year 2024.Information about variable consideration in the contract:
Changes in major contracts or adjustments to major transaction pricesNo
62. Taxes and surcharges
In RMB
| Items | Amount for the current period | Amount for the previous period |
| Urban maintenance and construction tax | 202,090.93 | 280,887.35 |
| Surcharge for education | 147,375.53 | 204,444.12 |
| Property tax | 3,166,336.07 | 2,918,264.56 |
| Land use tax | 185,756.26 | 188,021.08 |
| Vehicle and vessel usage tax | 1,980.00 | 4,200.00 |
| Stamp duty | 897,237.63 | 794,946.41 |
| Other | 13,706.37 | 6,566.26 |
| Total | 4,614,482.79 | 4,397,329.78 |
Other notes:
63. Administrative expenses
In RMB
| Items | Amount for the current period | Amount for the previous period |
| 26. Employee Remuneration | 41,752,060.58 | 44,414,164.48 |
| Depreciation and amortization costs | 8,054,404.08 | 8,025,284.78 |
| Lease and utilities expenses | 1,216,751.91 | 2,328,829.65 |
| Intermediary agency fees | 2,441,780.86 | 4,330,104.04 |
| Travel expense | 236,009.25 | 224,064.04 |
| Office allowance | 363,280.79 | 449,240.06 |
| Business entertainment | 603,802.23 | 746,448.25 |
| Other | 5,311,021.45 | 4,781,274.52 |
| Total | 59,979,111.15 | 65,299,409.82 |
Other notes
64. Selling expenses
In RMB
| Items | Amount for the current period | Amount for the previous period |
| 26. Employee Remuneration | 7,946,065.86 | 10,230,501.01 |
| Sales service charge | 7,435,247.07 | 3,893,275.02 |
| Other | 1,991,994.74 | 1,443,073.92 |
| Business entertainment | 403,569.45 | 481,984.21 |
| Travel expense | 482,153.08 | 390,639.14 |
| Total | 18,259,030.20 | 16,439,473.30 |
Other notes:
65. Research and development expenses
In RMB
| Items | Amount for the current period | Amount for the previous period |
| 26. Employee Remuneration | 7,295,182.68 | 8,292,440.77 |
| Material consumption | 38,356,905.93 | 25,540,854.61 |
| Depreciation cost | 1,667,334.64 | 1,686,985.39 |
| Other | 551,440.21 | 483,907.85 |
| Total | 47,870,863.46 | 36,004,188.62 |
Other notes
66. Financial expenses
In RMB
| Items | Amount for the current period | Amount for the previous period |
| Interest expense (note) | 11,411,878.99 | 13,965,081.41 |
| Less: capitalized interest expense | 0.00 | 0.00 |
| Less: interest income | -4,864,600.64 | -5,318,571.16 |
| Exchange difference | -20,379,528.28 | -7,582,000.80 |
| Handling fees and others | 3,025,777.53 | 3,114,986.18 |
| Total | -10,806,472.40 | 4,179,495.63 |
Other notes
Note: The interest expense on lease liabilities during the reporting period is RMB351,557.2.
67. Other income
In RMB
| Sources of other income | Amount for the current period | Amount for the previous period |
| 29. Government subsidies | 11,371,158.76 | 19,190,714.87 |
| 2. Tax preference | 7,355,228.89 | 30,941.62 |
| Other | 164,694.72 | 147,651.06 |
| Total | 18,891,082.37 | 19,369,307.55 |
68. Net exposure hedging income
No
69. Gains from changes in fair value
In RMB
| Sources of income from changes in fair value | Amount for the current period | Amount for the previous period |
| Transaction financial assets | 1,283,637.11 | 0.00 |
| Including: Gains from fair value changes of derivative financial instruments | -803,809.24 | 0.00 |
| Transaction financial liabilities | 0.00 | 0.00 |
| Investment real estate measured at fair value | 0.00 | 0.00 |
| Total | 1,283,637.11 | 0.00 |
Other notes:
70. Investment income
In RMB
| Items | Amount for the current period | Amount for the previous period |
| Long-term equity investment income calculated by equity method | -4,247,734.12 | -2,111,260.03 |
| Investment income of transactional financial assets during the holding period | 6,496,490.74 | 8,948,614.72 |
| Dividend income from other equity instrument investments during the holding period | 958,000.00 | 906,000.00 |
| Total | 3,206,756.62 | 7,743,354.69 |
Other notes
71. Credit impairment losses
In RMB
| Items | Amount for the current period | Amount for the previous period |
| Losses from bad debt in accounts receivable | -8,286,659.86 | -9,052,893.75 |
| Losses from bad debt in accounts receivable | 11,418.46 | 383,523.90 |
| Total | -8,275,241.40 | -8,669,369.85 |
Other notes
72. Asset impairment losses
In RMB
| Items | Amount for the current period | Amount for the previous period |
| 1. Inventory depreciation loss and contract performance cost impairment loss | -48,933,632.55 | -35,512,897.29 |
| Total | -48,933,632.55 | -35,512,897.29 |
Other notes:
73. Income from asset disposals
In RMB
| Source of income from assets disposal | Amount for the current period | Amount for the previous period |
| Gain or loss on disposal of fixed assets | 0.00 | 321.08 |
74. Non-operating income
In RMB
| Items | Amount for the current period | Amount for the previous period | Recorded in the amount of the non-recurring gains and losses |
| Compensation expenses | 87,183.29 | 71,816.74 | 87,183.29 |
| Non-current asset retirement gains | 62,242.48 | 0.00 | 62,242.48 |
| Other | 13,510.02 | 329,571.05 | 13,510.02 |
| Total | 162,935.79 | 401,387.79 | 162,935.79 |
Other notes:
75. Non-operating expenditure
In RMB
| Items | Amount for the current period | Amount for the previous period | Recorded in the amount of the non-recurring gains and losses |
| Compensation expenses | 2,279,213.52 | 3,009,886.86 | 2,279,213.52 |
| Non-current asset Disposition loss | 31,924.07 | 8,807.87 | 31,924.07 |
| Other | 331.92 | 18,886.32 | 331.92 |
| Total | 2,311,469.51 | 3,037,581.05 | 2,311,469.51 |
Other notes:
76. Income tax expense
(1) Table of income tax expense
In RMB
| Items | Amount for the current period | Amount for the previous period |
| Current income tax expense | 4,709,832.18 | 4,063,609.65 |
| Deferred income tax expense | 6,372,358.16 | 1,649,407.73 |
| Total | 11,082,190.34 | 5,713,017.38 |
(2) Accounting profit and income tax expense adjustment process
In RMB
| Items | Amount for the current period |
| Total profits | 77,885,152.07 |
| Current income tax expense accounted by tax and relevant | 19,471,288.02 |
| Influence of different tax rates applied by some subsidiaries | -5,868,605.84 |
| The impact of non-taxable income | -216,629.25 |
| Non-deductible costs, expenses and losses | 530.10 |
| Impact of unrecognized deferred tax assets due to deductible temporary differences or losses in the current period | 4,158,173.88 |
| ax impact of research and development fee plus deduction | -6,462,566.57 |
| Income tax expenses | 11,082,190.34 |
Other notes
77. Other comprehensive income
Refer to notes 57
78. Cash flow statement items
(1) Cash related to operating activities
Cash received from other operating activities
In RMB
| Items | Amount for the current period | Amount for the previous period |
| Letter of Credit Deposit | 23,834,297.67 | 8,087,465.25 |
| Current account | 22,024,376.05 | 59,933,695.82 |
| Government subsidies | 6,113,796.59 | 8,752,204.09 |
| Interest income (excluding financial | 5,010,933.94 | 1,221,464.54 |
| products) | ||
| Total | 56,983,404.25 | 77,994,829.70 |
Notes of cash received from other operating activitiesOther cash payments relating to operating activities
In RMB
| Items | Amount for the current period | Amount for the previous period |
| Current account | 31,939,233.10 | 67,303,982.70 |
| Letter of Credit Deposit | 18,818,477.98 | 10,788,695.79 |
| Total | 50,757,711.08 | 78,092,678.49 |
Notes of cash paid for other operating activities
(2) Cash related to investing activities
Cash received from other investing activities
In RMB
| Items | Amount for the current period | Amount for the previous period |
| Structured deposits, financial products, | 965,100,513.30 | 195,000,000.00 |
| Total | 965,100,513.30 | 195,000,000.00 |
Cash received from significant investing activities
In RMB
| Items | Amount for the current period | Amount for the previous period |
| Structural deposits | 700,000,000.00 | |
| Fixed deposit | 165,100,513.30 | 195,000,000.00 |
| Currency fund and others | 100,000,000.00 | |
| Total | 965,100,513.30 | 195,000,000.00 |
Explanation of other cash received relating to investing activities:
Cash paid for other investing activities
In RMB
| Items | Amount for the current period | Amount for the previous period |
| Structured deposits, financial products, | 1,099,000,000.00 | 631,537,000.00 |
| Total | 1,099,000,000.00 | 631,537,000.00 |
Cash paid for important investing activities
In RMB
| Items | Amount for the current period | Amount for the previous period |
| Structural deposits | 200,000,000.00 | 400,000,000.00 |
| Fixed deposit | 649,000,000.00 | 80,000,000.00 |
| Currency fund and others | 250,000,000.00 | 151,537,000.00 |
| Total | 1,099,000,000.00 | 631,537,000.00 |
Explanation of other cash payments relating to investing activities:
(3) Cash related to financing activities
Cash received from other financing activities
In RMB
| Items | Amount for the current period | Amount for the previous period |
| Total | 0.00 | 0.00 |
Explanation of cash received relating to other financing activities:
Cash paid for other financing activities
In RMB
| Items | Amount for the current period | Amount for the previous period |
| Lease payment | 6,463,136.37 | 4,141,770.57 |
| Total | 6,463,136.37 | 4,141,770.57 |
Notes of cash paid for other financing activities:
Changes in liabilities arising from financing activities?√Applicable □Not applicable
In RMB
| Items | Opening balance | Increase in the current period | Decrease in the current period | Ending balance | ||
| Changes in cash | Non-cash changes | Changes in cash | Non-cash changes | |||
| Short-term borrowing | 8,000,000.00 | 0.00 | 0.00 | 8,000,000.00 | 0.00 | 0.00 |
| Long-term borrowing | 608,190,812.09 | 0.00 | 10,936,255.43 | 62,052,550.83 | 0.00 | 557,074,516.69 |
| Lease liabilities | 12,177,572.68 | 0.00 | 11,588,290.15 | 6,463,136.37 | 0.00 | 17,302,726.46 |
| Total | 628,368,384.77 | 0.00 | 22,524,545.58 | 76,515,687.20 | 0.00 | 574,377,243.15 |
(4) Notes to net presentation of cash flows
No
(5) Major activities and financial impacts that do not involve current cash receipts andpayments but affect the financial position of the enterprise or may affect the cash flows of theenterprise in the future
79. Supplementary information to the cash flow statement
(1) Supplementary information to the cash flow statement
In RMB
| Items | Amount in current period | Amount of previous period |
| 1. Reconciliation of net profit to cash flows from operating activities | ||
| Net Profit | 66,802,961.73 | 52,186,805.23 |
| Add: asset impairment provision | 57,208,873.95 | 44,182,267.14 |
| Depreciation of fixed assets, consumption of oil and gas assets and productive biological assets | 118, 638, 422.24 | 113,129,673.90 |
| Depreciation of right-of-use | 4,784,150.78 | 4,577,501.46 |
| asset | ||
| Amortization of intangible assets | 2,318,830.41 | 2,472,075.72 |
| Amortization of Long-term deferred expenses | 1,279,415.92 | 1,010,991.86 |
| Losses from disposal of fixed assets, intangible assets and other long-term assets (income to be listed with "-") | -321.08 | |
| Losses from discarding of fixed assets (income to be listed with "-") | ||
| Losses from fair value changes (income to be listed with "-") | -1,283,637.11 | 0.00 |
| Financial expenses (income to be listed with "-") | -22,218,351.39 | -9,785,585.78 |
| Investment loss (income to be listed with "-") | -729,654.78 | -7,387,354.69 |
| Decrease in deferred income tax assets (increase to be listed with "-") | 6,598,642.68 | 1,105,321.71 |
| Increase in deferred income tax liabilities (decrease to be listed with "-") | -226,284.52 | 544,086.02 |
| Decrease in inventory (increase to be listed with "-") | -159,463,630.34 | -140,167,792.05 |
| Decrease in operating receivables (increase to be listed with "-") | -133,162,455.63 | -172,947,643.53 |
| Increase in operating payables (decrease to be listed with "-") | 71,287,566.00 | 125,482,947.69 |
| Other | ||
| Net cash flow arising from operating activities | 11,834,849.94 | 14,402,973.60 |
| 2. Significant investing and financing activities not related to cash deposit and withdrawal | ||
| Conversion of debt into capital | ||
| Convertible corporate bonds due within one year | ||
| Fixed assets under financing lease | ||
| 3. Net change in cash and cash equivalents | ||
| Ending balance of cash | 223,945,565.47 | 345,683,735.99 |
| Less: Beginning balance of cash | 461,420,457.33 | 874,474,834.46 |
| Add: Ending balance of cash equivalents | ||
| Less: Beginning balance of cash equivalents |
| Net increase in cash and cash equivalents | -237,474,891.86 | -528,791,098.47 |
(2) Net cash paid for acquisition of subsidiaries in the current periodNo
(3) Net cash received from disposal of subsidiaries in the current periodNo
(4) Composition of cash and cash equivalents
In RMB
| Items | Ending balance | Opening balance |
| I. Cash | 223,945,565.47 | 461,420,457.33 |
| Including：Cash at hand | 1,710.83 | 1,710.40 |
| Demand bank deposit | 223,943,854.64 | 461,418,746.93 |
| III. Closing balance of cash and cash equivalents | 223,945,565.47 | 461,420,457.33 |
| Including: cash and cash equivalents restricted for use by the parent company or subsidiaries within the group | 0.00 | 0.00 |
(5) The situation where the scope of use is limited but still belongs to the presentation of cashand cash equivalentsNo
(6) Cash not belonging to cash and cash equivalents
In RMB
| Items | Amount in current period | Amount of previous period | Reasons not classified as cash and cash equivalents |
| The principal and interest of certificates of deposit maturing more than three months | 0.00 | 265,946,593.76 | Cannot be used for payment at any time |
| Guarantee deposit | 1,645,000.00 | 4,595,637.31 | Cannot be used for payment at any time |
| Interest on demand deposits | 319,864.92 | 16,175.93 | Cannot be used for payment at any time |
| Total | 1,964,864.92 | 270,558,407.00 |
Other notes: None
(7) Description of other major activities
80. Notes to items of the statement of changes in Owners' equity
Details of adjustments to the 'Other' items and amounts for the end-of-previous-year balance:
81. Foreign currency monetary items
(1) Foreign currency monetary items
In RMB
| Items | Foreign currency ending balance | Exchange rate | Balance converted into RMB at the end of the period |
| Monetary fund | 112,609,230.68 | ||
| Including：USD | 10,882,523.89 | 7.1268 | 77,557,571.26 |
| EUR | |||
| HKD | 89,011.01 | 0.9127 | 81,240.35 |
| Yen | 782,335,997.00 | 0.0447 | 34,970,419.07 |
| Accounts receivable | 65,650,654.08 | ||
| Including：USD | 9,176,161.52 | 7.1268 | 65,396,667.92 |
| EUR | |||
| HKD | 278,280.00 | 0.9127 | 253,986.16 |
| Other account receivable | 502,629.12 | ||
| Including：USD | 70,526.62 | 7.1268 | 502,629.12 |
| Account payable | 254,891,043.20 | ||
| Including：USD | 6,414,583.40 | 7.1268 | 45,715,452.98 |
| Yen | 4,677,542,009.00 | 0.0447 | 209,086,127.80 |
| HKD | 98,019.52 | 0.9127 | 89,462.42 |
| Other payable | 4,754,710.89 | ||
| Including：USD | 663,186.00 | 7.1268 | 4,726,393.98 |
| HKD | 31,025.43 | 0.9127 | 28,316.91 |
| Long-term borrowing | |||
| Including：USD | |||
| EUR | |||
| HKD | |||
Other notes:
(2) Description of overseas operating entities, including for important overseas operatingentities, the main overseas business place, functional currency and selection basis shall bedisclosed, and the reasons for changes in functional currency shall also be disclosed.
□ Applicable√ Not applicable?
82. Leasing
(1) The Company as the lessee
?√Applicable □Not applicableVariable lease payments not included in the measurement of lease liabilities
□ Applicable√ Not applicable?
Simplified treatment of short-term leases or leasing fees for low-value assets?√Applicable □Not applicableThe Company has leased a number of assets, including houses and buildings, with lease terms ranging from 1 to 10years. The above-mentioned right-of-use assets cannot be used for the purpose of loan mortgage, guarantee, etc.The Company does not have variable lease payments that are not included in the measurement of lease liabilities.The simplified treatment of short-term lease expenses recognized in the current profit and loss is RMB 676,430.33(previous year: RMB1,097,491.43).The total cash outflow related to leases for the current year is RMB 6,547,136.37 (previous year: RMB 4,218,770.57).Circumstances involving sale and leaseback transactionsNo sale-and-leaseback transactions during the reporting period.
(2) The Company as the lessor
Operating lease as a lessor?√Applicable □Not applicable
In RMB
| Items | Lease income | Thereinto: Income related to variable lease payments that are not included in lease receipts |
| Houses & buildings | 49,398,187.41 | 0.00 |
| Total | 49,398,187.41 | 0.00 |
Financing lease as a lessor
□ Applicable√ Not applicable?
Undiscounted lease receipts for each of the next five years?√Applicable □Not applicable
In RMB
| Items | Undiscounted lease receipts per annum | |
| Ending amount | Beginning amount | |
| First year | 93,303,684.15 | 74,399,477.80 |
| Second year | 54,224,939.16 | 54,475,653.29 |
| Third year | 46,820,127.61 | 44,564,404.34 |
| Fourth year | 23,571,049.27 | 29,708,115.33 |
| Fifth year | 19,527,179.06 | 9,346,233.32 |
| Total undiscounted lease receipts after five years | 17,128,800.00 | 7,327,310.40 |
Reconciliation table of undiscounted lease receipts and net lease investment
(3) Recognize profit or loss on finance lease sales as a manufacturer or distributor
□ Applicable√ Not applicable?
83. Data resources
84. Others
8. R&D expenditure
In RMB
| Items | Amount for the current period | Amount for the previous period |
| 26. Employee Remuneration | 7,295,182.68 | 8,292,440.77 |
| Material consumption | 38,356,905.93 | 25,540,854.61 |
| Depreciation cost | 1,667,334.64 | 1,686,985.39 |
| Other | 551,440.21 | 483,907.85 |
| Total | 47,870,863.46 | 36,004,188.62 |
| Including: Expensed R&D expenditures | 47,870,863.46 | 36,004,188.62 |
| Capitalized R&D expenditures | 0.00 | 0.00 |
1. R&D projects eligible for capitalization
Note: The Group has no R&D project development expenditure that meets the conditionsfor capitalization.
2. Important outsourcing projects under research
The Group has no significant outsourced R&D projects under development.
9. Changes in the scope of consolidation
1. Business combination not under common control
(1) Business combination not under common control occurred in the current periodNo
(2) Combination costs and goodwill
No
(3) Identifiable assets and liabilities of the acquiree on the acquisition date
No
(4) Gains or losses arising from the re-measurement of equity held before the acquisition date at fair valueWhether there is a transaction that achieves the business combination step by step through multiple transactions andobtains the control during the reporting period
□ Yes √ No?
(5) Relevant explanations for the inability to reasonably determine the acquisition consideration or the fairvalue of identifiable assets and liabilities of the acquiree at the acquisition date or the end of the reportingperiod of combination.
(6) Other notes
2. Business combination under common control
(1) Business combination under common control occurred in the current periodNo
(2) Combination cost
No
(3) Book value of the combined party's assets and liabilities on the combination dateNo
3. Reverse acquisition
Basic transaction information, the basis for the transaction constituting a reverse acquisition, assets retained by thelisted company, whether liabilities constitute a business and the basis thereof, determination of the merger cost, andthe amount and calculation of equity adjustments when treated as an equity transaction:
4. Disposal of subsidiaries
Whether there is any transaction or event that results in the loss of control over the subsidiaries in the current period
□ Yes √ No?
Whether there is a situation where the investment in subsidiaries is disposed of through multiple transactions and thecontrol is lost in the current period
□ Yes √ No?
5. Changes in the scope of consolidation for other reasons
Explain changes in the scope of consolidation due to other reasons (e.g., establishment of new subsidiaries,liquidation of subsidiaries) and their relevant circumstances:
There have been no changes in the scope of consolidation for the Group.
6. Others
10. Equity interests in other entities
1. Equity in subsidiaries
(1) Composition of the enterprise group
In RMB
| Subsidiary name | Registered capital | Main place of business | Place of registration | Business nature | Proportion of shares held (%) | Acquisition method | |
| Direct | Indirect | ||||||
| Shenzhen Lisi Industrial Co., Ltd. | 2,360,000.00 | Shenzhen | Shenzhen | Lease of property | 100.00% | Establishment | |
| Shenzhen Huaqiang Hotel Co., Ltd | 10,005,300.00 | Shenzhen | Shenzhen | Lease of property | 100.00% | Establishment | |
| Shenzhen Shenfang Real Estate Management Co., Ltd. | 1,600,400.00 | Shenzhen | Shenzhen | Property management | 100.00% | Establishment | |
| Shenzhen Beauty Century Garment Co., Ltd. | 13,000,000.00 | Shenzhen | Shenzhen | Textile production and sales | 100.00% | Establishment | |
| Shenzhen Shenfang Sungang Real Estate Management Co., Ltd. | 1,000,000.00 | Shenzhen | Shenzhen | Property management | 100.00% | Establishment | |
| Shenzhen SOPO Photoelectric Co., Ltd. | 583,333,333.00 | Shenzhen | Shenzhen | Production and sales of polarizer | 60.00% | Acquisition | |
| Shengtou (HK) Co., Ltd. | HKD10,000.00 | Hongkong | Hongkong | Sales of polarizer | 100.00% | Establishment | |
Description of the shareholding ratio in the subsidiary that is different from the voting rights ratio:
Basis for holding half or less of the voting rights but still controlling the investee, and holding more than half of thevoting rights but not controlling the investee:
For important structured entities included in the scope of consolidation, basis for control:
Basis for determining whether the company is an agent or a principal:
Other notes:
(2) Significant non-wholly-owned subsidiaries
In RMB
| Subsidiary name | Minority shareholding ratio | Profit or loss attributable to minority shareholders for the current period | Dividends declared to minority shareholders for the current period | Balance of minority equity at the end of the period |
| Shenzhen SOPO Photoelectric Co., Ltd. | 40.00% | 22,908,886.50 | 0.00 | 1,252,673,978.24 |
Description of the shareholding ratio in the minority shareholders of subsidiary that is different from the voting rightsratio:
Other notes:
(3) Main financial information of significant non-wholly-owned subsidiaries
In RMB
| Subsidiary name | Ending balance | Opening balance | ||||||||||
| Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total of liability | Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total of liability | |
| Shenzhen SOPO Photoelectric Co., Ltd. | 2,374,836,845.04 | 2,103,139,936.87 | 4,477,976,781.91 | 794,714,542.90 | 556,938,028.96 | 1,351,652,571.86 | 2,224,998,868.32 | 2,215,651,449.74 | 4,440,650,318.06 | 762,685,435.65 | 608,912,888.60 | 1,371,598,324.25 |
In RMB
| Subsidiary name | Amount for the current period | Amount for the previous period | ||||||
| Operating income | Net Profit | Total comprehensive income | Cash flow from operating activities | Operating income | Net Profit | Total comprehensive income | Cash flow from operating activities | |
| Shenzhen SOPO Photoelectric Co., Ltd. | 1,570,484,564.74 | 57,272,216.24 | 0.00 | 2,305,968.09 | 1,417,425,087.50 | 39,699,105.65 | 0.00 | 13,933,905.32 |
Other notes:
(4) Major restrictions on the use of the assets of the enterprise group and the settlement of the debts of theenterprise group
(5) Financial support or other support provided to structured entities included in the scope of consolidatedfinancial statementsOther notes:
2. Transactions of changes in the share of Owners' equity in subsidiaries and still control thesubsidiaries
(1) Description of changes in the share of Owners' equity in subsidiaries
(2) Impact of the transaction on minority equity and equity attributable to shareholdersNo
3. Equity in joint venture arrangements or associates
(1) Important joint ventures or associated enterprises
No
(2) Main financial information of important joint ventures
No
(3) Main financial information of important associated enterprise
No
(4) Summary financial information of insignificant joint ventures and associated enterprise
In RMB
| Ending balance/amount incurred in the current period | Beginning balance/amount incurred in the previous period | |
| Joint ventures Associated enterprise | ||
| Total book value of investment | 118,145,787.78 | 127,314,050.41 |
| Total of the following items calculated by shareholding ratio | ||
| -Net profit | -4,224,706.30 | -2,192,221.35 |
| -Other comprehensive income | 0.00 | 0.00 |
| -Total comprehensive income | -4,224,706.30 | -2,192,221.35 |
| Associated enterprise | ||
| Total book value of investment | 3,477,034.37 | 5,111,476.00 |
| Total of the following items calculated by shareholding ratio | ||
| -Net profit | -23,027.82 | 80,961.32 |
| -Other comprehensive income | -115,825.06 | 54,950.70 |
| -Total comprehensive income | -138,852.88 | 135,912.02 |
Other notes
(5) Explanation on significant restrictions on the ability of joint ventures or associatedenterprises to transfer funds to the Company
(6) Excess losses incurred by joint ventures or associated enterprise
No
(7) Unrecognized commitments related to investment in joint ventures
(8) Contingent liabilities related to investments in joint ventures or associated enterprise
4. Important joint operation
No
5. Equity in structured entities not included in the scope of consolidated financial statementsExplanation related to structured entities not included in the consolidated financial statements:
6. Others
11. Government subsidies
1. Government subsidies recognized as receivable at the end of the reporting period
□ Applicable√ Not applicable?
Reasons for not receiving the anticipated amount of government subsidies at the expected time
□ Applicable√ Not applicable?
2. Liability items involving government subsidies
?√Applicable □Not applicable
In RMB
| Accounting item | Opening balance | Amount of new subsidies in the current period | Amount included in non-operating income in the current period | Amount transferred to other income in the current period | Other changes in the current period | Ending balance | Related to assets/income |
| Deferred income | 97,485,986.89 | 3,500,000.00 | 0.00 | 8,268,063.65 | 0.00 | 92,717,923.24 | Asset-related |
| Deferred income | 0.00 | 3,103,095.11 | 0.00 | 3,103,095.11 | 0.00 | 0.00 | Earnings related |
3. Government subsidies included in the current period's profit and loss
?√Applicable □Not applicable
In RMB
| Accounting item | Amount for the current period | Amount for the previous period |
| Other income | 11,371,158.76 | 19,369,307.55 |
Other notes:
12. Risks related to financial instruments
1. Various risks arising from financial instruments
THE COMPANY'S MAIN FINANCIAL INSTRUMENTS INCLUDE MONETARYFUNDS, TRANSACTIONAL FINANCIAL ASSETS, NOTES RECEIVABLE,ACCOUNTS RECEIVABLE, ACCOUNTS RECEIVABLE FINANCING, OTHERRECEIVABLES, OTHER EQUITY INSTRUMENTS INVESTMENT, SHORT-TERM LOANS, ACCOUNTS PAYABLE, OTHER PAYABLES, OTHER CURRENTLIABILITIES, LONG-TERM LOANS AND LEASE LIABILITIES, ETC. AT THEEND OF THIS REPORTING PERIOD, THE FINANCIAL INSTRUMENTS HELDBY THE COMPANY ARE AS FOLLOWS. THE RISKS ASSOCIATED WITHTHESE FINANCIAL INSTRUMENTS AND THE RISK MANAGEMENT POLICIESADOPTED BY THE COMPANY TO REDUCE THESE RISKS ARE AS FOLLOWS.THE MANAGEMENT OF THE COMPANY MANAGES AND MONITORS THESERISK EXPOSURES TO ENSURE THAT THE ABOVE RISKS ARECONTROLLED WITHIN A LIMITED RANGE.
| Unit: RMB | ||
| Items | Ending balance | Opening balance |
| Financial assets | ||
| Measured at fair value, with its changes included in current profits and losses | ||
| Transaction financial assets | 958,694,300.63 | 821,946,114.68 |
| Measured at fair value, with its changes included in other comprehensive income | ||
| Financing of receivables | 1,764,753.26 | 22,839,459.13 |
| Other equity instruments investment | 145,988,900.00 | 145,988,900.00 |
| Measured in amortized cost | ||
| Monetary fund | 225,910,430.39 | 472,274,448.00 |
| Note receivable | 36,077,741.23 | 50,963,943.01 |
| Accounts receivable | 989,669,064.26 | 820,134,833.95 |
| Other account receivable | 2,869,233.51 | 3,219,287.77 |
| Financial Liability |
| Measured in amortized cost | ||
| Short-term borrowing | - | 8,000,000.00 |
| Notes payable | 10,743,421.84 | 31,049,291.49 |
| Account payable | 474,563,073.82 | 408,548,136.24 |
| Other payable | 180,013,733.22 | 184,528,344.55 |
| Other current liability | 34,511,748.51 | 42,665,954.11 |
| Long-term borrowing | 557,074,516.69 | 608,190,812.09 |
THE COMPANY USES SENSITIVITY ANALYSIS TECHNOLOGY TO ANALYZETHE POSSIBLE IMPACT OF REASONABLE AND POSSIBLE CHANGES INRISK VARIABLES ON CURRENT PROFITS AND LOSSES ANDSHAREHOLDERS' EQUITY. BECAUSE ANY RISK VARIABLE RARELYCHANGES IN ISOLATION, AND THE CORRELATION BETWEEN VARIABLESWILL HAVE A GREAT IMPACT ON THE FINAL AMOUNT OF A RISK VARIABLECHANGE, THE FOLLOWING CONTENTS ARE CARRIED OUT UNDER THEASSUMPTION THAT EACH VARIABLE CHANGE IS INDEPENDENT.
1. Risk management objectives, policies and procedures, and changes
occurred during the year
THE COMPANY'S GOAL IN RISK MANAGEMENT IS TO STRIKE A PROPERBALANCE BETWEEN RISKS AND BENEFITS, REDUCE THE NEGATIVEIMPACT OF RISKS ON THE COMPANY'S OPERATING PERFORMANCE TOTHE LOWEST LEVEL, AND MAXIMIZE THE INTERESTS OF SHAREHOLDERSAND OTHER EQUITY INVESTORS. BASED ON THIS RISK MANAGEMENTGOAL, THE BASIC STRATEGY OF THE COMPANY'S RISK MANAGEMENT ISTO IDENTIFY AND ANALYZE ALL KINDS OF RISKS FACED BY THE GROUP,ESTABLISH AN APPROPRIATE RISK TOLERANCE BOTTOM LINE ANDCONDUCT RISK MANAGEMENT, AND TIMELY AND RELIABLY SUPERVISEALL KINDS OF RISKS TO CONTROL THE RISKS WITHIN A LIMITED RANGE.
1.1 MARKET RISK
1.1.1 FOREIGN EXCHANGE RISK
Foreign exchange risk refers to the risk of losses caused by exchange ratechanges. The Group's foreign exchange risks are mainly related to US dollars,Japanese yen, Hong Kong dollars and euros. Except for some import purchasesand export sales of the Group's companies located in Chinese mainland which aremainly settled in US dollars, Japanese yen, Hong Kong dollars and Euros, othermajor business activities of the Company are settled in RMB.
As of June 30, 2024, the Company's assets and liabilities were all RMB balances,except for the monetary items in foreign currencies mentioned in Notes 81. Theforeign exchange risks arising from the assets and liabilities with foreign currencybalances (converted into RMB) described in the table below may have an impacton the Company's operating results.
| Unit: RMB | ||
| Items | Ending balance | |
| Assets | Liabilities | |
| USD | 143,456,868.30 | 50,441,846.96 |
| Yen | 34,970,419.07 | 209,086,127.80 |
| EUR | - | - |
| HKD | 335,226.51 | 117,779.33 |
| Subtotal | 178,762,513.88 | 259,645,754.09 |
The Company pays close attention to the impact of exchange rate changes on theGroup's foreign exchange risk, and takes any measures to avoid foreignexchange risks based on actual situation.Sensitivity analysis of foreign exchange risk
SENSITIVITY ANALYSIS OF FOREIGN EXCHANGE RISK ASSUMES THATALL NET INVESTMENT HEDGING AND CASH FLOW HEDGING OFOVERSEAS OPERATIONS ARE HIGHLY EFFECTIVE.
ON THE BASIS OF THE ABOVE ASSUMPTIONS, WITH OTHER VARIABLESUNCHANGED, THE PRE-TAX IMPACT OF POSSIBLE REASONABLEEXCHANGE RATE CHANGES ON CURRENT PROFITS AND LOSSES ANDSHAREHOLDERS' EQUITY IS AS FOLLOWS:
| Unit: RMB | |||
| Items | Changes in exchange rate | Amount for the current period | |
| Impact on profits | Impact on shareholders' equity | ||
| All foreign currencies | Appreciation of RMB by 5% | -4,044,162.01 | -4,044,162.01 |
| All foreign currencies | Depreciation of RMB by 5% | 4,044,162.01 | 4,044,162.01 |
1.1.2. Interest rate risk - risk of cash flow change
The Company's risk of cash flow changes of financial instruments caused byinterest rate changes is mainly related to bank loans with floating interest rate.The Company continues to pay close attention to the impact of interest ratechanges on the Company's interest rate risk. The Company's policy is to maintainfloating interest rates on these loans, and there is no interest rate swaparrangement at present.SENSITIVITY ANALYSIS OF INTEREST RATE RISK
WITH OTHER VARIABLES UNCHANGED, THE PRE-TAX IMPACT OFPOSSIBLE REASONABLE INTEREST RATE CHANGES ON CURRENTPROFITS AND LOSSES AND SHAREHOLDERS' EQUITY IS AS FOLLOWS:
| Unit: RMB | |||
| Items | Changes in exchange rate | Amount for the current period | |
| Impact on profits | Impact on shareholders' equity | ||
| Floating-rate loan | Increase by 1% | -5,564,997.85 | -5,564,997.85 |
| Floating-rate loan | Decrease by 1% | 5,564,997.85 | 5,564,997.85 |
1.2. Credit risk
As at June 30, 2024, the largest credit risk exposure that may cause theCompany's financial losses mainly came from the loss of the Group's financialassets caused by the failure of the other party to the contract, including monetaryfunds, transactional financial assets, notes receivable, accounts receivable,receivables financing and other receivables. On the balance sheet date, the bookvalue of the Company's financial assets has represented its maximum credit riskexposure.
In order to reduce the credit risk, the Company arranges special personnel todetermine the credit limit, conduct credit approval and implement other monitoringprocedures to ensure that necessary measures are taken to recover overduedebts. In addition, the Group reviews the recovery of financial assets on eachbalance sheet date to ensure that sufficient credit loss provision has been madefor relevant financial assets. Therefore, the management of the Company believesthat the credit risk assumed by the Group has been greatly reduced.
The Company's monetary funds are deposited in banks with high credit ratings, sothe monetary funds only have low credit risk.
As at June 30, 2024, the balance of accounts receivable of the Group to the topfive customers was RMB 641,216,097.39, accounting for 61.56% of the balanceof accounts receivable of the Group. In addition, the Company has no othersignificant credit risk exposure concentrated in a single financial asset or financialasset portfolio with similar characteristics.
1.3 Liquidity risk
When managing liquidity risk, the Company maintains sufficient cash and cashequivalents as deemed by the management and monitors them to meet theCompany's business needs and reduce the impact of cash flow fluctuations. Themanagement of the Company monitors the use of bank loans and ensurescompliance with the loan agreement.AS OF JUNE 30, 2024, THE COMPANY'S UNUSED COMPREHENSIVE BANKCREDIT LINE WAS RMB 880,030,000.
THE COMPANY'S HELD FINANCIAL LIABILITIES ARE ANALYZED BY THEMATURITY OF THE UNDISCOUNTED REMAINING CONTRACTUALOBLIGATIONS AS FOLLOWS:
| Unit: RMB | ||||
| Items | Within one year | 1-5 years | Over 5 years | Total |
| Short-term borrowing | - | - | ||
| Notes payable | 10,743,421.84 | 10,743,421.84 | ||
| Account payable | 474,563,073.82 | 474,563,073.82 | ||
| Other payable | 180,013,733.22 | 180,013,733.22 | ||
| Other current liability | 34,511,748.51 | 34,511,748.51 | ||
| Long-term borrowing | 118,165,372.13 | 483,539,244.56 | 601,704,616.69 | |
| Lease liabilities | 7,654,102.24 | 7,854,890.47 | 3,770,478.69 | 19,279,471.40 |
2. Hedging
(1) The company carries out hedging business for risk management
□ Applicable√ Not applicable?
(2) The company carries out eligible hedge business and applies hedge accountingNo
(3) The company carries out hedging business for risk management, and is expected to achieve the riskmanagement objectives but has not applied hedge accounting
□ Applicable√ Not applicable?
3. Financial assets
(1) Classification of transfer methods
?√Applicable □Not applicable
In RMB
| Transfer method | The nature of the transferred financial assets | The amount of financial assets transferred | Derecognition information | The basis for determining the situation of derecognition |
| Endorsement transfer | Outstanding banker's acceptance bill that is classified as financings receivable | 78,263,227.37 | Derecognition | The credit risk level of the accepting bank of the banker's acceptance bill transferred by endorsement is relatively high, and the risks and rewards of the financing ownership of the corresponding receivables have almost all been transferred. |
| Endorsement transfer | Unexpired banker's acceptance bill classified as bills receivable | 34,511,748.51 | Non-derecognition | The credit risk level of the accepting bank of the banker's acceptance bill |
| transferred by endorsement is not high, and almost all the risks and rewards of the ownership of the related bills receivable are reserved. | ||||
| Total | 112,774,975.88 |
(2) Financial assets derecognized due to transfer
?√Applicable □Not applicable
In RMB
| Items | Method for the financial assets transferred | The amount of the financial asset derecognized | Gains or losses related to derecognition |
| Financing of receivables | Endorsement transfer | 78,263,227.37 | 0.00 |
| Total | 78,263,227.37 | 0.00 |
(3) Assets transfer financial assets that continue to be involved
?√Applicable □Not applicable
In RMB
| Items | Asset transfer method | Amount of assets resulting from continued involvement | Amount of liability arising from continued involvement |
| Note receivable | Endorsement transfer | 0.00 | 34,511,748.51 |
| Total | 0.00 | 34,511,748.51 |
Other notes
13. Disclosure of fair value
1. Ending fair value of assets and liabilities measured at fair value
In RMB
| Items | Fair value at the end of the period | |||
| Fair value measurement of Level 1 | Fair value measurement of Level 2 | Fair value measurement of Level 3 | Total | |
| I. Ongoing fair value measurement | -- | -- | -- | -- |
| (I) Trading financial assets | 958,694,300.63 | 958,694,300.63 | ||
| 1. Financial assets measured at fair value with changes recognized in the current profit or loss | 958,694,300.63 | 958,694,300.63 | ||
| (III) Other equity | 145,988,900.00 | 145,988,900.00 | ||
| instrument investments | ||||
| (VI) Financing of accounts receivable | 1,764,753.26 | 1,764,753.26 | ||
| Total assets continuously measured at fair value | 958,694,300.63 | 147,753,653.26 | 1,106,447,953.89 | |
| II. Non-recurring fair value measurements | -- | -- | -- | -- |
2. Basis for determining the market price of items measured at fair value of the first level on acontinuous and non-continuous basis
3. Qualitative and quantitative information on valuation techniques and important parametersadopted for continuous and non-continuous Level 2 fair value measurement items
| Unit: RMB | |||
| Items | End of the year | Valuation technique | Input value |
| Fair value | |||
| Transaction financial assets | 958,694,300.63 | Discounted cash flow technique | Expected yield |
4. Qualitative and quantitative information on valuation techniques and important parametersadopted for continuous and non-continuous Level 3 fair value measurement items
| Unit: RMB | |||
| Items | End of the year | Valuation technique | Input value |
| Fair value | |||
| Financing of receivables | 1,764,753.26 | Discounted cash flow technique | Discount rate |
| Other equity instruments investment | 145,988,900.00 | Comparison of listed companies | P/B ratio of similar listed companies |
| Comparable income method | Market price | ||
| Statement adjustment method | Book value |
5. Sensitivity analysis of adjustment information and non-observable parameters betweenopening and closing book value of continuous third-level fair value measurement items
6. For items measured at fair value on a going concern, if there is any transfer betweendifferent levels in the current period, the reason for the transfer and the policy for determiningthe transfer time
7. Changes in valuation techniques in the current period and the reasons for the changes
8. Fair value of financial assets and financial liabilities not measured at fair valueFinancial assets and liabilities not measured at fair value mainly include monetary funds, notes receivable, accountsreceivable, other receivables, short-term loans, accounts payable, other payables, long-term loans and lease liabilities.The management of the Company believes that the book values of financial assets and financial liabilities measured inamortized cost in the financial statements are close to their fair values.
9. Others
14. Related parties and related transactions
1. Parent company information
| Name of parent company | Place of registration | Business nature | Registered capital | Shareholding scale of the parent company in the Company | Voting rights scale of the parent company in the Company |
| Shenzhen Investment Holdings Co., Ltd. | 18/F, Investment Building, Shennan Road, Futian District, Shenzhen | Equity investment, real estate development, etc | 32,686,000,000.00 | 46.21% | 46.21% |
Description of the parent company
The parent company of the Company is a wholly state-owned company approvedand authorized by the Shenzhen Municipal Government, and exercises theinvestor function for the state-owned enterprises within the authorized scopeaccording to law.
During the reporting period, the changes in the registered capital of the parentcompany are as follows:
In RMB 10,000
| Balance as at January 1, 2023 | Increase this year | Decrease this year | December 31,2023 |
| 3,235,900.00 | 32,700.00 | - | 3,268,600.00 |
The ultimate controlling party of the enterprise is the State-owned Assets Regulatory Commission of ShenzhenMunicipal People's Government.Other notes:
2. Subsidiaries of the Company
For details of the subsidiaries of the Company, please refer to notes 10. Equity interests in other entities.
3. Joint ventures and associates of the Company
See notes 10. Equity interests in other entities for details of the important joint ventures or associates of the enterprise.The following joint ventures or associates had transactions with the Company during the current period, or hadbalances formed from transactions in previous periods:
No
4. Other related parties
| Names of other related parties | Relationship between other related parties and the enterprise |
| Shenzhen Xinfang Knitting Co., Ltd. | The Company's shareholding company and the chairman of the company are the employees of the Group |
| Shenzhen Dailishi Underwear Co., Ltd. | The Company's shareholding company and the chairman of the company are the employees of the Group |
| Hengmei Photoelectric Co., Ltd. | Minority shareholder of SAPO Photoelectric , a subsidiary of the Company, one of whose directors is a supervisor of SAPO Photoelectric |
| Shenzhen Shentou Property Development Co.Ltd | A subsidiary of Shenzhen Investment Holdings Limited, the parent company of the Company |
| Shenzhen Investment Building Hotel Co., Ltd | A subsidiary of Shenzhen Investment Holdings Limited, the parent company of the Company |
| Shenzhen Investment Building Property Management Co., Ltd | A subsidiary of Shenzhen Investment Holdings Limited, the parent company of the Company |
| Shenzhen SGE Longyan Energy Technology Co., Ltd. | A subsidiary of Shenzhen Investment Holdings Limited, the parent company of the Company |
| Guoren P&C Co., Ltd. Shenzhen Branch | A subsidiary of Shenzhen Investment Holdings Limited, the parent company of the Company |
| Shenzhen Talent Service Center (Shenzhen Talent Market) | A subsidiary of Shenzhen Investment Holdings Limited, the parent company of the Company |
| Shenzhen Property Management Co., Ltd. | A subsidiary of Shenzhen Investment Holdings Limited, the parent company of the Company |
| Shenzhen Legal Training Centre Co., Ltd. | A subsidiary of Shenzhen Investment Holdings Limited, the parent company of the Company |
Other notes
5. Related party transactions
(1) Related transactions for the purchase and sale of commodities, the provision and receiptof services
Purchase of goods/receipt of labor services
In RMB
| Related party | Content of related party transaction | Amount for the current period | Approved transaction limit | Whether the transaction limit is exceeded | Amount for the previous period |
| Hengmei | Optical film | 2,874.60 | 4,514,981.37 |
| Photoelectric Co., Ltd. | materials and processing | ||||
| Shenzhen SGE Longyan Energy Technology Co., Ltd. | Purchasing electricity | 513,812.22 | 540,788.98 | ||
| Guoren P&C Co., Ltd. Shenzhen Branch | Insurance expenses | 103,331.85 | 0.00 | ||
| Shenzhen Talent Service Center (Shenzhen Talent Market) | Outsourcing service fee | 31,865.09 | 0.00 | ||
| Shenzhen Property Management Co., Ltd. | Property management fee | 21,132.37 | 0.00 | ||
| Shenzhen Legal Training Centre Co., Ltd. | Training fees | 1,485.00 | 0.00 |
Sales of goods/rendering of services
In RMB
| Related party | Content of related party transaction | Amount for the current period | Amount for the previous period |
| Hengmei Photoelectric Co., Ltd. | Polarizer sheet | 0.00 | 4,744,631.12 |
| Shenzhen Shentou Property Development Co.Ltd | Textile | 0.00 | 54,991.15 |
| Shenzhen Investment Building Hotel Co., Ltd. | Textile | 0.00 | 40,614.16 |
| Shenzhen Investment Building Property Management Co., Ltd. | Textile | 0.00 | 26,247.79 |
| Shenzhen Investment Holdings Co., Ltd. | Textile | 0.00 | 15,371.68 |
Description of related transactions for buying and selling goods, and providing and receiving services
(2) Associated trusteeship/contracting and commissioned management/outsourcing situation
Explanation of associated trusteeship/contracting situationsNo associated trusteeship/contracting situations during the reporting period.Explanation of associated management/outsourcing situationsNo associated management/outsourcing situations during the reporting period.
(3) Related leasing
No related leasing situations during the reporting period.
(4) Related guarantees
No related guarantee situations during the reporting period.
(5) Loans from and to related parties
In RMB
| Related party | Borrowing amount | Start date | Due date | Notes |
| Borrowing | ||||
| Shenzhen Guanhua Printing & Dyeing Co., Ltd. | 3,806,454.17 | July 30, 2019 | July 31, 2024 | The annual lending rate is 0.30% |
| Lending | ||||
(6) Assets transfer and debt restructuring of related parties
No
(7) Remuneration of key management personnel
In RMB
| Items | Amount for the current period | Amount for the previous period |
| Rewards for the key management personnel | 2,266,711.24 | 2,653,076.00 |
(8) Other related party transactions
6. Receivables from and payable to related parties
(1) Receivable items
In RMB
| Name | Related party | Ending balance | Opening balance | ||
| Book balance | Bad debt provision | Book balance | Bad debt provision | ||
| Other account receivable | Shenzhen Dailishi Underwear Co., Ltd. | 550,000.00 | 27,500.00 | 1,100,000.00 | 58,850.00 |
| Other account receivable | Shenzhen Guanhua Printing & Dyeing Co., Ltd. | 0.00 | 0.00 | 41,325.00 | 0.00 |
(2) Payable items
In RMB
| Name | Related party | Book balance at period end | Beginning book balance |
| Other payable | Hongkong Yehui | 1,124,656.60 | 1,124,656.60 |
| International Co., Ltd. | |||
| Other payable | Shenzhen Changlianfa Printing & dyeing Company | 2,281,299.95 | 2,023,699.95 |
| Other payable | Shenzhen Guanhua Printing & Dyeing Co., Ltd. | 3,816,981.88 | 3,811,272.20 |
| Other payable | Shenzhen Xinfang Knitting Co., Ltd. | 244,789.85 | 244,789.85 |
| Other payable | Shenzhen Investment Holdings Co., Ltd. | 0.00 | 485,189.00 |
7. Commitments of related parties
No commitments of related parties during the reporting period.
8. Others
15. Share-based payment
1. Overall situation of share-based payment
□ Applicable√ Not applicable?
2. Equity-settled share-based payment
□ Applicable√ Not applicable?
3. Cash-settled share-based payment
□ Applicable√ Not applicable?
4. Share-based payment expenses in the current period
□ Applicable√ Not applicable?
5. Modification and termination of share-based payment
6. Others
16. Commitments and contingencies
1. Important commitments
Significant commitments existing on the Balance Sheet DateUnit: RMB
| Items | Ending amount | Beginning amount |
| Contracted but not recognized in the financial statements | ||
| Commitment to purchase and build long-term | 1,462,417.00 | 2,413,823.52 |
assets
2. Contingencies
(1) Significant contingencies existing on the Balance Sheet Date
No pending litigation, external guarantees and other contingencies that shall bedisclosed during the reporting period.
(2) If the Company has no important contingencies required to be disclosed, it shall also beexplained
There were no significant contingencies required to be disclosed.
3. Others
17. Events after the balance sheet date
1. Important non-adjusting matters
No
2. Profit distribution
No
3. Sales returns
4. Notes to other events after the Balance Sheet Date
18. Other significant events
1. Correction of accounting previous errors
(1) Retrospective restatement method
No
(2) Future applicable law
No
2. Debt restructuring
3. Assets replacement
(1) Exchange of non-monetary assets
(2) Replacement of other assets
4. Annuity plan
5. Discontinued operation
No
6. Segment information
(1) Determination basis and accounting policies for report segments
According to the Company's internal organizational structure, managementrequirements and internal reporting system, the Company's business operationsare divided into three business segments, and the management of the Companyregularly evaluates the operating results of these segments to determine theallocation of resources and evaluate the performance. On the basis of operatingsegments, the Company has identified the following three reporting segments:
polarizer business, property leasing business and textile business.
The information reported by each segment is disclosed according to theaccounting policies and measurement standards adopted by each segment whenreporting to the management, and these measurement bases are consistent withthose used when preparing financial statements
(2) Financial information of report segments
In RMB
| Items | Polarizer sheet | Lease of Property and others | Inter-segment offsets | Total |
| Operating income: | ||||
| External transaction income | 1,565,218,878.94 | 58,165,272.96 | 1,623,384,151.90 | |
| Inter-segment transaction income | 1,353,373.96 | -1,353,373.96 | ||
| Total operating income of segment | 1,565,218,878.94 | 59,518,646.92 | -1,353,373.96 | 1,623,384,151.90 |
| Operating expenses (note) | 1,466,802,290.16 | 44,045,235.30 | -1,324,457.20 | 1,509,523,068.26 |
| Operating profit | 61,588,154.93 | 20,174,447.62 | -1,728,916.76 | 80.033.685.79 |
| Net Profit | 53,484,741.63 | 15,050,465.40 | -1,732,245.30 | 66,802.961.73 |
| Total assets of | 4,430,368,471.46 | 3,246,993,793.77 | -2,028,812,526.81 | 5,648,549,738.42 |
| segment | ||||
| Total liabilities of segment | 1,349,172,802.62 | 214,495,505.66 | -60,799,147.77 | 1,502,869,160.51 |
(3) If the Company has no report segments, or cannot disclose the total assets and totalliabilities of each report segment, it shall explain the reasons
(4) Other notes
Note: This item includes operating costs, taxes and surcharges, management
costs, R&D expenses, sales expenses and financial expenses.
7. Other important transactions and events that affect the decision-making of investors
8. Others
19. Notes to the major items of the parent company's Financial Statements
1. Accounts receivable
(1) Disclosure by aging
In RMB
| Aging | Book balance at period end | Beginning book balance |
| Within 1 year (including 1 year) | 10,071,575.08 | 10,190,859.62 |
| 2-3 years | 2,485,076.00 | |
| Over 3 years | 2,485,076.00 | |
| 3-4 years | 2,485,076.00 | |
| Total | 12,556,651.08 | 12,675,935.62 |
(2). Disclosure under the methods of provision for bad debts by category
In RMB
| Category | Ending balance | Opening balance | ||||||||
| Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
| Amount | Proportion | Amount | Accrual proportion | Amount | Proportion | Amount | Accrual proportion | |||
| Including： | ||||||||||
| Accounts receivable with provision for bad debts | 12,556,651.08 | 100.00% | 43,141.77 | 0.34% | 12,513,509.31 | 12,675,935.62 | 100.00% | 4,311.97 | 0.03% | 12,671,623.65 |
| by combination | ||||||||||
| Including： | ||||||||||
| Total | 12,556,651.08 | 100.00% | 43,141.77 | 0.34% | 12,513,509.31 | 12,675,935.62 | 100.00% | 4,311.97 | 0.03% | 12,671,623.65 |
Category name of provision for bad debts by portfolio: Provision for bad debts by portfolio
In RMB
| Name | Ending balance | ||
| Book balance | Bad debt provision | Accrual proportion | |
| Withdrawal of bad debt provision by portfolio | 12,556,651.08 | 43,141.77 | 0.34% |
| Total | 12,556,651.08 | 43,141.77 | |
Description of the basis for determining the combination:
As of June 30, 2024, the provision for bad debts is made based on the simplifiedmodel of expected credit losses.
If the provision for bad debts of accounts receivable is made according to the general expected credit loss model:
□ Applicable√ Not applicable?
(3) Status of bad debt provision, recovery, or reversal for the period
Provision for bad debts in the current period:
In RMB
| Category | Opening balance | Amount of change for the period | Ending balance | |||
| Accrual | Recovery or reversal | Write-off | Other | |||
| Bad debt provision | 4,311.97 | 113,819.52 | -74,989.72 | 43,141.77 | ||
| Total | 4,311.97 | 113,819.52 | -74,989.72 | 43,141.77 | ||
Where accounts receivable with significant from provision for bad debts or recovered in the current period
No significant recovery or reversal of provision for bad debts occurred in the currentperiod.
(4) Situation of accounts receivable actually written off in the current periodNo actual write-off of account receivable occurred in the current period.
(5) Accounts receivable and contractual assets collected from the debtors which rank the firstfive at the end of period
In RMB
| Name | Accounts | Ending balance | Ending balance | Proportion in the | Ending balance |
| receivable balance at the end of period | of contractual assets | of accounts receivable and contractual assets | total ending balance of accounts receivable and contractual assets | of provision for bad debts of accounts receivable and provision for impairment of contractual assets | |
| Total receivables of the top five balances on June 30, 2024 | 12,315,731.26 | 12,315,731.26 | 98.08% | 30,890.44 | |
| Total | 12,315,731.26 | 12,315,731.26 | 98.08% | 30,890.44 |
2. Other receivables
In RMB
| Items | Ending balance | Opening balance |
| Interest receivable | 0.00 | 0.00 |
| Dividend receivable | 0.00 | 0.00 |
| Other account receivable | 26,806,548.49 | 14,013,552.95 |
| Total | 26,806,548.49 | 14,013,552.95 |
(1) Interest receivable
1) Classification of interest receivable
In RMB
| Items | Ending balance | Opening balance |
| Total | 0.00 | 0.00 |
2) Significant overdue interest
No
3) Disclosure under the methods of provision for bad debts by category
□ Applicable√ Not applicable?
4) Status of bad debt provision, recovery, or reversal for the period
No
5) Situation of interest receivable actually written off in the current period
No
(2) Dividends receivable
1) Classification of dividends receivable
In RMB
| Project (or investee) | Ending balance | Opening balance |
| Total | 0.00 | 0.00 |
2) Important dividends receivable with aging over 1 year
No
3) Disclosure under the methods of provision for bad debts by category
□ Applicable√ Not applicable?
4) Status of bad debt provision, recovery, or reversal for the period
No
5) Situation of dividends receivable actually written off in the current period
No
(3) Other receivables
1) Classification of other receivables by nature
In RMB
| Payment nature | Book balance at period end | Beginning book balance |
| Deposit and security deposit | 10,000.00 | 10,000.00 |
| External unit transactions | 14,799,339.97 | 15,349,339.97 |
| Related party transactions within the consolidation scope | 25,821,695.88 | 12,553,241.09 |
| Reserve funds and employee loans | 65,000.00 | 0.00 |
| Other | 1,346,538.60 | 1,364,497.85 |
| Total | 42,042,574.45 | 29,277,078.91 |
2) Disclosure by aging
In RMB
| Aging | Book balance at period end | Beginning book balance |
| Within 1 year (including 1 year) | 14,322,360.17 | 1,683,810.52 |
| 1-2 years | 253,734.24 | 2,213,073.28 |
| 2-3 years | 7,086,284.93 | 10,100,800.01 |
| Over 3 years | 20,380,195.11 | 15,279,395.10 |
| 3-4 years | 5,100,800.01 | 0.00 |
| 4 to 5 years | 0.00 | 234,716.25 |
| Over 5 years | 15,279,395.10 | 15,044,678.85 |
| Total | 42,042,574.45 | 29,277,078.91 |
3) Disclosure under the methods of provision for bad debts by category
In RMB
| Category | Ending balance | Opening balance | ||||||||
| Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
| Amount | Proportion | Amount | Accrual proportion | Amount | Proportion | Amount | Accrual proportion | |||
| Including： | ||||||||||
| Withdrawal of bad debt provision by portfolio | 42,042,574.45 | 100.00% | 15,236,025.96 | 36.24% | 26,806,548.49 | 29,277,078.91 | 100.00% | 15,263,525.96 | 52.13% | 14,013,552.95 |
| Including： | ||||||||||
| Provision for bad debts based on credit risk characteristics by combination | 42,042,574.45 | 100.00% | 15,236,025.96 | 36.24% | 26,806,548.49 | 29,277,078.91 | 100.00% | 15,263,525.96 | 52.13% | 14,013,552.95 |
| Total | 42,042,574.45 | 100.00% | 15,236,025.96 | 36.24% | 26,806,548.49 | 29,277,078.91 | 100.00% | 15,263,525.96 | 52.13% | 14,013,552.95 |
Category name of provision for bad debts by portfolio:
In RMB
| Name | Ending balance | ||
| Book balance | Bad debt provision | Accrual proportion | |
| Provision for bad debts based on credit risk characteristics by combination | 42,042,574.45 | 15,236,025.96 | 36.24% |
| Total | 42,042,574.45 | 15,236,025.96 | |
Description of the basis for determining the combination:
Based on the aging of accounts, credit risk characteristics are recognized, and other receivables are divided intodifferent groups based on common credit risk characteristics.
Provision for bad debts made according to the general expected credit loss model:
In RMB
| Bad debt provision | Phase I | Phase II | Phase III | Total |
| Expected credit losses over the next 12 months | Expected credit loss throughout the duration (no credit impairment) | Expected credit loss throughout the duration (credit impairment has occurred) | ||
| Balance as of Jan. 1, 2024 | 53,328.60 | 8,991.44 | 15,201,205.92 | 15,263,525.96 |
| Balance on Jan. 1, 2024 in the current period | ||||
| Provision in the current period | 27,500.00 | 27,500.00 | ||
| Reversal in the current period | -55,000.00 | -55,000.00 | ||
| Balance as of June 30, 2024 | 25,828.60 | 8,991.44 | 15,201,205.92 | 15,236,025.96 |
The basis for the division of each stage and the ratio of provisions for bad debtsChanges in book balance with significant amount of loss provision in the current period
□ Applicable√ Not applicable?
4) Status of bad debt provision, recovery, or reversal for the current period
Provision for bad debts in the current period:
In RMB
| Category | Opening balance | Amount of change for the period | Ending balance | |||
| Accrual | Recovery or reversal | Write-off or cancellation | Other | |||
| Bad debt provision | 15,263,525.96 | 27,500.00 | -55,000.00 | 15,236,025.96 | ||
| Total | 15,263,525.96 | 27,500.00 | -55,000.00 | 15,236,025.96 | ||
Where the bad debt provision amount recovered or reversed this period is important:
There is no bad debt provision recovered or reversed with amounts significant during the year.
5) Situation of other accounts receivable actually written off in the current periodNo actual write-off of other receivables occurred during the Company's reporting period.
6) Other receivables collected from the debtors which rank the first five at the end of period
In RMB
| Name | The nature of the amount | Ending balance | Aging | Proportion in the total ending balance of other receivables | End-of-period balance of provision for bad debt |
| Total other receivables of the top five balances on June 30, 2024 | Current payment receivable between companies and internal current payment | 40,621,455.85 | Over 1-5 years | 96.62% | 14,799,759.97 |
| Total | 40,621,455.85 | 96.62% | 14,799,759.97 |
7) Presented in other receivables due to centralized management of funds
No
3. Long-term equity investments
In RMB
| Items | Ending balance | Opening balance | ||||
| Book balance | Closing balance of impairment provision | Book value | Book balance | Closing balance of impairment provision | Book value | |
| Investments in subsidiaries | 1,976,433,419.39 | 16,582,629.30 | 1,959,850,790.09 | 1,976,433,419.39 | 16,582,629.30 | 1,959,850,790.09 |
| Investments in associates and joint ventures | 121,622,822.15 | 0.00 | 121,622,822.15 | 127,682,020.70 | 0.00 | 127,682,020.70 |
| Total | 2,098,056,241.54 | 16,582,629.30 | 2,081,473,612.24 | 2,104,115,440.09 | 16,582,629.30 | 2,087,532,810.79 |
(1) Investment in subsidiaries
In RMB
| Investees | Beginning balance (book value) | Beginning balance of provision for impairment | Increase or decrease in the current period | Ending balance (book value) | End-of-period balance of provision for impairment | |||
| investment | Profits and losses on investments | Withdrawal of impairment provision | Other | |||||
| Shenzhen SOPO Photoelectric Co., Ltd. | 1,910,247,781.94 | 14,415,288.09 | 1,910,247,781.94 | 14,415,288.09 | ||||
| Shenzhen Lisi Industrial Co., Ltd. | 8,073,388.25 | 0.00 | 8,073,388.25 | 0.00 | ||||
| Shenzhen Beauty Century Garment Co., Ltd. | 18,499,458.34 | 2,167,341.21 | 18,499,458.34 | 2,167,341.21 | ||||
| Shenzhen Huaqiang Hotel Co., Ltd | 15,489,351.08 | 0.00 | 15,489,351.08 | 0.00 | ||||
| Shenzhen Shenfang Real Estate Management Co., Ltd. | 1,713,186.55 | 0.00 | 1,713,186.55 | 0.00 | ||||
| Shenzhen Shenfang Sungang Real Estate Management Co., Ltd. | 5,827,623.93 | 0.00 | 5,827,623.93 | 0.00 | ||||
| Total | 1,959,850,790.09 | 16,582,629.30 | 1,959,850,790.09 | 16,582,629.30 |
(2) Investments in associates and joint ventures
In RMB
| Investment unit | Beginning balance (book value) | Beginning balance of provision for impairment | Increase or decrease in the current period | Ending balance (book value) | End-of-period balance of provision for impairment | |||||||
| investment | Profits and losses on investments | Equity method affirmative profit and loss on investments | Adjustment of other comprehensive income | Other equity changes | Cash dividends or profits declared to be distributed | Withdrawal of impairment provision | Other | |||||
| I. Joint ventures | ||||||||||||
| Shenzhen Guanhua Printing & Dyeing Co., Ltd. | 122,370,494.08 | 0.00 | 0.00 | 0.00 | -4,224,706.30 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 118,145,787.78 | 0.00 |
| Subtotal | 122,370,494.08 | 0.00 | 0.00 | 0.00 | -4,224,706.30 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 118,145,787.78 | 0.00 |
| 2. Affiliated company | ||||||||||||
| Shenzhen Chan | 3,358,117.09 | 0.00 | 0.00 | 0.00 | 124,432.13 | 0.00 | 0.00 | -346,150.00 | 0.00 | 0.00 | 3,136,399.22 | 0.00 |
| glianfa Printing & dyeing Company | ||||||||||||
| Hongkong Yehui International Co., Ltd. | 1,953,409.53 | 0.00 | 0.00 | -1,349,489.37 | -147,459.95 | -115,825.06 | 0.00 | 0.00 | 0.00 | 0.00 | 340,635.15 | 0.00 |
| Subtotal | 5,311,526.62 | 0.00 | 0.00 | -1,349,489.37 | -23,027.82 | -115,825.06 | 0.00 | -346,150.00 | 0.00 | 0.00 | 3,477,034.37 | 0.00 |
| Total | 127,682,020.70 | 0.00 | 0.00 | -1,349,489.37 | -4,247,734.12 | -115,825.06 | 0.00 | -346,150.00 | 0.00 | 0.00 | 121,622,822.15 | 0.00 |
The recoverable amount is determined by the net amount of the fair value less the disposal expenses
□ Applicable√ Not applicable?
The recoverable amount is determined at the present value of the expected future cash flows
□ Applicable√ Not applicable?
Reasons for the difference between the aforementioned information and the information used in the impairment test ofprevious years or external informationReasons for the difference between the information used in the Company's impairment test in previous years and theactual situation in the current year
(3) Other notes
4. Operating income and operating costs
In RMB
| Items | Amount for the current period | Amount for the previous period | ||
| Income | Cost | Income | Cost | |
| Main business | 37,598,506.94 | 4,849,806.55 | 39,239,619.43 | 4,156,707.01 |
| Total | 37,598,506.94 | 4,849,806.55 | 39,239,619.43 | 4,156,707.01 |
Breakdown of operating income and operating cost:
In RMB
| Classification of contracts | Total | |
| Operating income | Operation cost | |
| Business type | 37,598,506.94 | 4,849,806.55 |
| Including： | ||
| Lease of property | 37,598,506.94 | 4,849,806.55 |
| Classified by business area | ||
| Including： | ||
| Domestic | 37,598,506.94 | 4,849,806.55 |
| Total | 37,598,506.94 | 4,849,806.55 |
Information related to performance obligations:
NoInformation related to the transaction price allocated to the remaining performance obligations:
At the end of the reporting period, the revenue amount corresponding to performance obligations that have beencontracted but not yet fulfilled or not yet fully fulfilled is RMB 0.00, of which RMB 0.00 is expected to be recognized asrevenue in the fiscal year 2024.Changes in major contracts or adjustments to major transaction pricesNo
5. Investment income
In RMB
| Items | Amount for the current period | Amount for the previous period |
| Income from long-term equity investment measured by adopting the cost method | 1,700,000.00 | |
| Long-term equity investment income calculated by equity method | -4,247,734.12 | -2,111,260.03 |
| Investment income of transactional financial assets during the holding period | 5,693,129.12 | 8,906,611.67 |
| Dividend income from other equity instrument investments during the holding period | 958,000.00 | 906,000.00 |
| Total | 4,103,395.00 | 7,701,351.64 |
6. Others
No
20. Additional information
1. Breakdown of current non-recurring profit and loss
?√Applicable □Not applicable
In RMB
| Items | Amount | Notes |
| Government subsidies recognized in the current profit or loss (excluding those closely related to the Company's normal operations, compliant with national policy, | 3,540,504.40 | Mainly for the government subsidies. |
| entitled according to set standards, and with a sustained impact on the Company's profit or loss) | ||
| Except for effective hedging business related to the normal operation of the Company, the fair value gains and losses arising from the holding of financial assets and financial liabilities by non-financial enterprises, as well as the gains and losses arising from the disposal of financial assets and financial liabilities | 1,283,637.11 | Mainly for the gains or losses on the change in fair value of financial assets held by the company. |
| Reversal of the provision for impairment of accounts receivable undergoing impairment test individually | 13,878,342.02 | |
| Other non-business income and expenditures other than the above | -2,148,533.72 | Mainly for quality compensation expenses. |
| Less: Influenced amount of income tax | 2,487,233.14 | |
| Influenced amount of minor shareholders’ equity (after tax) | 5,430,398.23 | |
| Total | 8,636,318.44 | -- |
Details of other profit and loss items that meet the non-recurring profit and loss definition
□ Applicable√ Not applicable?
The Company does not have details of other profit and loss items that meet the non-recurring profit and loss definition.Non-recurring gain /loss items recognized as recurring gain /loss items as defined in the Explanatory AnnouncementNo.1 on Information Disclosure for Companies Offering their Securities to the Public - Non-recurring Gains and Losses
□ Applicable√ Not applicable?
2. Return on equity and Earnings per share
| Profit of report period | Weighted average ROE(%) | Earnings per share | |
| Basic earning per share (Yuan/Share) | Diluted gains per share (Yuan/Share) | ||
| Net profit attributable to the Common stock shareholders of Company. | 1.52% | 0.0867 | 0.0867 |
| Net profit attributable to the Common stock shareholders of Company after deducting of non-recurring gain/loss. | 1.22% | 0.0696 | 0.0696 |
3. Differences in accounting data under domestic and overseas accounting standards
(1) Differences in net profit and net assets in the financial reports disclosed in accordancewith international accounting standards and Chinese accounting standards
□ Applicable√ Not applicable?
(2) Differences in net profit and net assets in the financial reports disclosed in accordancewith overseas accounting standards and Chinese accounting standards
□ Applicable√ Not applicable?
(3) Explanation of the reasons for the differences in accounting data under domestic andoverseas accounting standards. If the data has been audited by an overseas audit institutionfor difference adjustment, the name of the overseas institution shall be indicated
4. Others