Zhejiang Sanhua Intelligent Controls Co., Ltd.
2024 Semi-Annual Report
August 2024
Section I Important Notes, Contents and Definitions
The Board of Directors, Board of Supervisors, Directors, Supervisors and Senior Managementof Zhejiang Sanhua Intelligent Controls Co., Ltd. (hereinafter referred to as the “Company”) herebyguarantee that the information presented in this report shall be authentic, accurate, complete and freefrom material misstatement whether due to false record, misleading statement or significant omission,and they will bear both individual and joint legal liabilities.
Zhang Yabo, the Company's legal representative, Yu Yingkui, the person in charge of theaccounting work, and Li Zhimi, the person in charge of accounting department (Accounting Officer)hereby declare and warrant that the financial statements in this report are authentic, accurate andcomplete.
All directors attended the board meeting to review this report.
The forward-looking descriptions of future plans, development strategies and other forward-looking statements contained in this report do not constitute substantial commitments by theCompany to investors, and investors are advised to be aware of the investment risks.
The Company describes in detail concerning the possible risks and countermeasures in SectionX "Risks and Countermeasures of the Company" under Section III "Management’s Discussion andAnalysis of Operations". Please pay particular attention to relevant contents.
The profit distribution proposal of the Company considered and approved by the Board ofDirectors is as follows: on the basis of 3,731,414,614, the cash dividend of RMB1.00 (tax inclusive)will be distributed to all shareholders for every 10 shares, 0 bonus shares will be given out (taxinclusive), and there will be no transfer of capital to share capital from the provident fund.
Note: the Company’s share capital is 3,732,615,535 shares, the number of shares repurchased is1,200,921 shares. In accordance with “the Company Law”, shares of the Company held by the listedcompany through special account for share buyback shall not be entitled to participate in thedistribution of profits and capitalisation of capital reserve.
If the total share capital of the Company changes due to conversion of convertible bonds, sharerepurchase, exercise of share incentives, listing of additional shares for refinancing, etc. prior to theimplementation of the distribution plan, the total amount of distribution will be adjusted accordinglyon the basis of the principle of unchanged distribution ratio.
CONTENTS
Section I Important Notes, Contents and Definitions ...... 2
Section II Corporate Profile and Key Financial Indicators ...... 6
Section III Management’s Discussion and Analysis of Operations ...... 10
Section IV Corporate Governance ...... 30
Section V Environmental and Social Responsibility ...... 34
Section VI Significant Events ...... 40
Section VII Changes in Shares and Information about Shareholders ...... 66
Section VIII Information of Preferred Shares ...... 77
Section IX Bonds ...... 78
Section X Financial Report ...... 79
List of Documents Available for Inspection
1. The 2024 Semi-Annual Report signed by the chairman of the board
2. The financial report signed and sealed by the Company's legal representative, chief finance officer andperson in charge of accounting department
3. The Company’s articles of association
4. Original copy of all the Company's documents and announcements published on the newspapers designatedby CSRC within the reporting period
5. Other documents available for inspection
Definitions
| Items | Refers to | Definition |
| The Company, Company | Refers to | Zhejiang Sanhua Intelligent Controls Co., Ltd. |
| The Articles of Association | Refers to | Articles of Association for Zhejiang Sanhua Intelligent Controls Co., Ltd. |
| The CSRC | Refers to | China Securities Regulatory Commission |
| SZSE | Refers to | Shenzhen Stock Exchange |
| Zhejiang Securities Regulatory Bureau | Refers to | Zhejiang Securities Regulatory Bureau of China Securities Regulatory Commission |
| General Meeting | Refers to | General Meeting of Zhejiang Sanhua Intelligent Controls Co., Ltd. |
| The Board of Directors | Refers to | The Board of Directors of Zhejiang Sanhua Intelligent Controls Co., Ltd. |
| The Board of Supervisors | Refers to | The Board of Supervisors of Zhejiang Sanhua Intelligent Controls Co., Ltd. |
| Yuan | Refers to | RMB |
Section II Corporate Profile and Key Financial IndicatorsI. Corporate Information
| Stock abbreviation | Sanhua Intelligent Controls | Stock code | 002050 |
| Former stock abbreviation (if any) | Sanhua Co., | ||
| Stock Exchange where the shares of the Company are listed | Shenzhen Stock Exchange | ||
| Name of the Company in Chinese | 浙江三花智能控制股份有限公司 | ||
| Abbr. of the Company name in Chinese (if any) | 三花智控 | ||
| Name of the Company in English (if any) | ZHEJIANG SANHUA INTELLIGENT CONTROLS CO., LTD. | ||
| Abbr. of the Company name in English (if any) | SANHUA | ||
| Legal representative | Zhang Yabo | ||
II. Contacts and Contact Information
| Board Secretary | Securities Affairs Representative | |
| Name | Hu Kaicheng | Wang Yutong |
| Address | Office building in Sanhua Industrial Park, No. 289 12th Baiyang Street, Qiantang New District, Hangzhou, Zhejiang | Office Building in Sanhua Industrial Park No. 219 Woxi Avenue, Chengtan Street, Xinchang, Shaoxing, Zhejiang |
| Tel. | 0571-28020008 | 0575-86255360 |
| Fax | 0571-28876605 | 0575-86563888-8288 |
| shc@zjshc.com | shc@zjshc.com |
III. Other Relevant Information
1. Company’s contact information
Whether there is any change in the Company’s registered address, office address, zip code, website or emailaddress during the reporting period.
□Applicable √Not applicable
During the reporting period, there were no changes in the Company's registered address, the address of theCompany's office and its postal code, the Company's website or e-mail address. Please refer to the 2023 Annual
Report for details.
2. Information disclosure and place of the report
Whether there is any change in information disclosure and place of the report during the reporting period.
□Applicable √Not applicable
During the reporting period, there were no changes in the stock exchange website, media and website for disclosingthe semi-annual report, as well as the location of the Company's semi-annual report. Please refer to the 2023 AnnualReport for details.
3. Other relevant information
Whether other relevant information has changed during the reporting period
□Applicable √Not applicable
IV. Key Accounting Information and Financial Indicators
Whether the Company performed a retrospective adjustment or restatement of previous accounting data
□Yes √No
| Current Reporting Period | Corresponding Period of Last Year | YoY Change (%) | |
| Total Revenue (RMB) | 13,676,072,161.08 | 12,528,920,625.59 | 9.16% |
| Net Profit Attributable to Shareholders of the Listed Company (RMB) | 1,514,515,444.75 | 1,394,760,848.85 | 8.59% |
| Net Profit Attributable to Shareholders of the Listed Company after Deducting Non-recurring Gains and Losses (RMB) | 1,526,827,093.52 | 1,467,390,266.69 | 4.05% |
| Net Cash Flow Generated from Operational Activities (RMB) | 1,161,629,876.17 | 1,718,673,593.61 | -32.41% |
| Basic Earnings per Share (RMB/Share) | 0.40 | 0.39 | 2.56% |
| Diluted Earnings per Share (RMB/Share) | 0.40 | 0.39 | 2.56% |
| Weighted Average ROE | 8.32% | 10.17% | -1.85% |
| At the End of the Current Reporting Period | At the End of Last Year | YoY Change (%) | |
| Total Assets (RMB) | 33,100,790,488.42 | 31,890,584,773.41 | 3.79% |
| Net Assets Attributable to Shareholders of the Listed Company (RMB) | 18,042,163,085.12 | 17,894,403,984.79 | 0.83% |
V. Differences in Accounting Data between Domestic and Overseas Accounting Standards
1. Difference in net profits and net assets of this financial report between International Financial Reporting
Standards and China Accounting Standards
□ Applicable √ Not applicable
There is no difference in net profits and net assets of this financial report between International FinancialReporting Standards (IFRS) and China Accounting Standards in the reporting period.
2. Difference in net profits and net assets of this financial report between Overseas Accounting Standards
and China Accounting Standards
□ Applicable √ Not applicable
There is no difference in net profits and net assets of this financial report between Overseas Accounting Standardsand China Accounting Standards in the reporting period.VI. Items and Amounts of Non-recurring Gains and Losses
√ Applicable □ Not applicable
Unit: RMB
| Items | Amount | Note |
| Gains or Losses from Disposal of Non-current Assets (Including the Write-off for the Accrued Impairment of Assets) | -6,146,341.57 | |
| Government grants recognised in the current period's profit or loss (except for government grants that are closely related to the Company's normal business operations, in line with national policies and in accordance with defined criteria, and have a continuing impact on the Company's profit or loss) | 51,359,679.62 | |
| Gains and losses from changes in fair value of financial assets and liabilities held by non-financial corporations and gains and losses from the disposal of financial assets and liabilities, except for effective hedging operations related to the Company's normal business operations | -62,865,867.03 | In order to avoid raw material price risk and prevent exchange rate risk, the Company and its subsidiaries carried out derivatives business, including futures contracts and foreign exchange forward contracts, etc. From January to June 2024, futures gained RMB 13.1419 million and forward loss was RMB 76.0077 million, and from January to June 2023, futures gained RMB 4.3452 million and forward loss was RMB 137.708 million. Therefore, the amount of non-recurring profit and loss items in the first half of the two years generated large fluctuations. Meanwhile, the exchange gain from January to June 2024 was RMB42.0242 million, and the exchange gain from January to June 2023 was RMB194.1929 million. According to "Interpretative |
| Announcement No. 1 on Information Disclosure of Companies Issuing Public Securities - Non-recurring Gains and Losses", exchange gains and losses are recurring profit and loss items, and futures, forward gains and losses are non-recurring profit and loss items. | ||
| Non-operating Revenue and Expenditures Other Than the Above | 1,932,406.50 | |
| Other Gains and Losses Items that Fit in the Definition of Non-recurring Gains and Losses | 1,520,214.66 | |
| Less: Impact of Income Tax | -3,260,821.02 | |
| Impact of Minority Equity (after tax) | 1,372,561.97 | |
| Total | -12,311,648.77 |
Details of other gains and losses items that meet the definition of non-recurring gains and losses:
□Applicable √ Not applicable
The Company has no circumstances of other gains and losses items that meet the definition of non-recurring gainsand losses.The reasons for the non-recurring gains and losses items defined or listed in the Explanatory Announcement No. 1of Information Disclosure of Listed Companies – Non-recurring Gains and Losses are defined as recurring gainsand losses items.
□Applicable √ Not applicable
In the reporting period, the Company did not define any non-recurring gains and losses items, defined and listed inthe Explanatory Announcement No. 1 of Information Disclosure of Listed Companies – Non-recurring Gains andLosses, as recurring gains and losses items.
Section III Management’s Discussion and Analysis of OperationsI. The Principal Business of the Company during the Reporting Period
1. Main business operations
The Company adheres to the "Dedication and Leadership, Innovation and Surpassing" business path, take theresearch and application of heat pump technology and thermal management system products as the core, focuses onthe development of environmental thermal management solutions for heat and cold conversion and intelligenttemperature control, commits to specialized operations in the fields of building HVAC, electrical equipment andthermal management of NEVs. According to the different stages and characteristics of strategic and mature businessdevelopment, the Company's business is mainly divided into refrigeration and air conditioning electricalcomponents business and automotive components business. Refrigeration and air conditioning electricalcomponents business is committed to building HVAC, electrical equipment specialized operation, the main productsinclude Four-way Reversing Valve, Electronic Expansion Valve, Solenoid Valve, Microchannel Heat Exchanger,Omega Pumps, etc., which widely used in air conditioning, refrigerators, cold chain logistics, dishwashers and otherfields; Automotive components business focuses on in depth research in the field of automotive thermalmanagement, the main products include Thermal Expansion Valve, Electronic Expansion Valve, Electronic WaterPump, New Energy Vehicle Thermal Management Integrated Modules, etc., widely used in both NEVs and ICVs.There were no changes in the Company's principal business and business model during the reporting period.
2. Industry development
(1) Refrigeration and air conditioning electrical components industry
With the global trend of environmental protection and carbon reduction, the proposal of China's "dual carbon"goals, and the improvement of intelligent refrigeration and air conditioning equipment and energy efficiencystandards, there is a new demand for the refrigeration and air conditioning electrical components industry aroundthe world, bringing new market space and value increment. As the leader in refrigeration and air conditioning controlcomponents, the Company, with years of manufacturing experience, leading technology, and extensive and deepcooperation with customers, will adapt to market changes, seize opportunities, and develop steadily.
(2) Automotive components industry
In recent years, the development of NEVs worldwide has continued to grow rapidly, becoming an unstoppabletrend. NEVs from different technical approaches have put forward new requirements for automotive thermalmanagement products, which are becoming more technology intensive and capital intensive. The Company hasbeen in the fieldof automotive thermal management since its early years, with profound technical accumulation and widespreadcustomer recognition. It has entered subsystems and components from automotive thermal management components,and has now become an important partner for customers such as BYD, Volvo, Geely, Valeo, Mahler, Volkswagen,Mercedes Benz, BMW, Toyota, General Motors, Li Auto, NIO, etc.
3. Industry status
The Company is the world's largest manufacturer of refrigeration control components and the world's leading
manufacturer of automotive thermal management system control components. "Sanhua" refrigeration intelligentcontrol components have become a world-famous brand, and a strategic partner of many automobile enterprises andair-conditioning refrigeration appliance manufacturers in the world. The Company takes improving energyefficiency level of various end products as its responsibility, leading the global transformation of energy-saving andenvironmental protection products. After more than 30 years of development, the Company has established a leadingposition in the global market of refrigeration and automotive thermal management. The market share of theCompany's Electronic Expansion Valve, Four-way Reversing Valve, Solenoid Valve, Microchannel HeatExchanger, Automotive Electric Expansion Valve, Thermal Management Integrated Module for new energy vehicle,Omega Pump ranks first globally. The market share of the Company's Service Valve, Automotive ThermalExpansion Valve and Receiver Drier is in the leading position in the world.II. Core Competitiveness Analysis
1. Clear strategic layout
The Company adheres to the "Dedication and Leadership, Innovation and Surpassing" business path, takes theresearch and application of heat pump technology and thermal management system products as the core, firmlygrasps the development theme of energy conservation, environmental protection and intelligent control, upgradesfrom "mechanical parts development" to "system control technology solution development of electronic controlintegration". The Company’s products series are expanded from household A/C and refrigerator components to thefield of commercial A/C and commercial refrigeration, and extending to the direction of inverter control technologyand system integration and upgrading. Meanwhile, after the injection of automotive components business, it givesfull play to the synergy effect with the original business, continues to deepen the research and development of newenergy vehicle thermal management system components, and actively explores the deeper application of thermalmanagement components and subsystems in the automotive field, so as to provide global customers withcompetitive environmental intelligent control solutions.
2. Technology leading, customer oriented
As a national high-tech enterprise, the Company has always adhered to the technological route of independentdevelopment and innovation. For decades, it has focused on the field of intelligent control and vigorously cultivatedcore technologies with independent intellectual property rights. It has been authorized with 3,966 patents bothdomestic and abroad, including 1,975 invention patents. The Company has established a comprehensive multi-disciplinary R&D team for product development and technical research, and established a matrix R&Dorganizational structure. Utilizing the model of product development driven by technological research, we canpromote innovation. Meanwhile, a technical expert committee has been established to guide and managetechnological development. All products, services and quality of the Company take meeting the needs of customersas the first priority.
3. Quality assurance, scale economy effect
The Company's products cover refrigeration A/C electrical components and automotive components industry. Themarket share of the Company's Electronic Expansion Valve, Four-way Reversing Valve, Solenoid Valve,Microchannel Heat Exchanger, Automotive Electric Expansion Valve, Thermal Management Integrated Module fornew energy vehicle, Omega Pump ranks first globally. The market share of Service Valve, Automotive ThermalExpansion Valve and Receiver Drier is in the leading position in the world. The Company has established a completeand strict quality assurance system, achieved ISO9001, IATF16949, QC080000 quality system certification. The
Company won the National Quality Award, Zhejiang Quality Award, National Technological InnovationDemonstration Enterprise and won the high comments from JCI, Daikin, Carrier, Midea, Gree, Haier, Toyota, Benz,Volkswagen, Valeo and other well-known enterprises at home and abroad.
4. Advantages of global marketing network and production base
Since the 1990s, the Company has focused on expanding the international market, and has established overseassubsidiaries in Japan, South Korea, Singapore, the United States, Mexico, Germany and other places to build aglobal marketing network. At the same time, it has established overseas production bases in the United States,Poland, Mexico, Vietnam, Thanland India and other places. And in practice, we have trained a number ofmanagement talents who can meet the needs of business development in different countries and regions.
III. Main Business Analysis
OverviewIn the first half of 2024, the world faced challenges such as high interest rates and geopolitical conflicts, buteconomic growth stabilised, growth indicators in major economies such as the U.S. and Europe are picking up;China's economy operated steadily, domestic demand continued to recover, and economic fundamentals werepositive in the long term. At the company level, refrigeration and air conditioning electrical components businessbenefited from the consumer goods trade-in policy and global warming and other favourable support, the globalmarket share has been further consolidated and enhanced,and there is a steady growth in performance; Automotivecomponents business benefited from the trade-in subsidies, auto finance policy relaxation, etc., with thedevelopment of the NEVs, the orders continue to release, empowering the performance of faster growth.During the reporting period, the company achieved revenue of 13.676 billion yuan, up 9.16% year-on-year; netprofit attributable to shareholders of listed company 1.515 billion yuan, up 8.59% year-on-year. According toproducts, the revenue of refrigeration and air conditioning electrical components business was RMB 8.279 billion,up 7.43% year-on-year; the revenue of automotive components business was 5.397 billion yuan, up 11.91% year-on-year.
1. Continuously update and expand the business layout with a view to improving the quality of the business
(1) Refrigeration and air conditioning electrical components business
In the first half of 2024, in addition to maintaining the market share of the leading products, the Company iscommitted to increasing the market share of high technical requirements, iterative product, the new-generationproducts and promoting the industrialisation of new products to create incremental business. In terms of customerexpansion, the company consolidates the orders of core customers while expanding the layout of new regionalcustomers. In terms of technology development, the company grows together with the market, to improve the qualityand strengthen the cost control, and increase R&D in less copper, copper-free products. In terms of patentconstruction, the company focuses on key product patents, and takes patent protection as the backing of productinnovation. In terms of operation management, the company promotes the self-research of key manufacturingequipment, lean production, digital transformation and other activities to reduce costs and increase efficiency. Inaddition, the company continues to increase the globalisation of manufacturing, R&D layout and talent teambuilding in Vietnam, Mexico and Thailand factories to strengthen the company's global competitiveness.
(2) Automotive components business
The competition in the NEVs market has been intensifying, the company consolidates the market position throughnew customer expansion, technology development, and refined operation to achieve the leadership of technology
and cost. In terms of customer development, the Company has increased the development of new projects andbusiness opportunities based on the demonstration effect of benchmark customers. In terms of technologydevelopment, the company established the product power model to continuously improve product power, especiallyin the promotion of intelligent, standardised and modular design of integrated components. In terms of operationmanagement, further promoted information technology, established the global cockpit for automotive componentsbusiness's operations, and conducted data management with visual reports. In terms of global layout, the Companyhas continued to build plants in Mexico and Poland, and plants in Zhongshan, Shenyang, Tianjin, and ShaoxingBinhai, China, as well as new production capacity, to implement the global supply map.
(3) Strategic Emerging Business
The development of artificial intelligence is rising, and the biomimetic robot industry is changing rapidly, which isexpected to become a revolutionary industry after computers, smartphones, and NEVs, with greater developmentpotential and wider application prospects. In the field of biomimetic robots, the company focuses onelectromechanical actuators, and cooperates with customers to carry out the full range of product research anddevelopment, trial production, and iteration, and delivery of samples, and has been highly evaluated by customers.
In terms of energy storage, the company closely tracked the development trend of energy storage system technology,focusing on the main models, recognizing by the head customers; focusing on the medium and long-termdevelopment potential of the energy storage industry and the matching of the company's core technology, laying thefoundations for the subsequent development of technically superior products.
2. Sound corporate governance and incentivising core staff
The Company has implemented the 2024 Restricted Share Incentive Plan and the 2024 Stock Appreciation RightIncentive Plan to encourage core talents to continuously improve their performance level and output and empowerthe Company's performance growth. At the same time, the Company continued to strengthen and improve theconstruction of internal control system, standardise the operation of the three meetings, and communicate withinvestors through the Interactive Ease platform, investor call answering, on-site reception and other diversified ways.
3. Help Carbon Neutral, Establish Clean and Low Carbon Energy System
In terms of optimising energy structure, the company has accelerated the application of photovoltaic and energystorage in the industrial park to reduce carbon emissions. In terms of low-carbon product design and development,the company measures and evaluates the environmental impact of products at all stages of their life cycle, andpromotes the design of environmentally friendly products.
4. Proposed issuance of Global Depositary Receipts (GDRs) and listing on the Swiss Stock ExchangeIn order to further promote the globalization strategy, the Company continue to promote the GDR project. Theraised funds are intended to expand the Company's global business map, strengthen the ability of the productionand manufacturing of refrigeration control components, new energy thermal management and robotelectromechanical actuator businesses, improve the Company's R&D investment and technological innovation, andenhance the Company's intelligent manufacturing, digitization, and informatization level.
Changes in key financial data over the corresponding period of last year
Unit: RMB
| Current Reporting Period | Corresponding Period of Last Year | YoY Change (%) | Note of Change |
| Total Revenue | 13,676,072,161.08 | 12,528,920,625.59 | 9.16% | Mainly due to the increase of the market share of the refrigeration and air-conditioning control components, the development of automotive components industry, to promote the solidly development of the company's sales. |
| Cost of sales | 9,920,390,318.93 | 9,308,660,916.27 | 6.57% | Mainly due to the sales growth drives cost increases |
| Selling Expenses | 297,002,465.74 | 264,131,730.27 | 12.44% | |
| Administrative Expenses | 887,999,303.50 | 619,856,574.65 | 43.26% | Mainly due to the increase in staff salary and intermediary service fees during the period. |
| Financial Expenses | -51,781,709.55 | -151,660,370.01 | 65.86% | Mainly due to lower foreign exchange gains during the period |
| Income Tax Expenses | 332,296,145.99 | 263,470,197.45 | 26.12% | Mainly due to higher income tax expense as a result of higher profits |
| R&D Investments | 632,611,907.96 | 580,269,632.04 | 9.02% | |
| Net Cash Flows from Operating Activities | 1,161,629,876.17 | 1,718,673,593.61 | -32.41% | Mainly due to the increase in staff salary and cash paid for taxes during the period. |
| Net Cash Flows from Investment Activities | -1,427,543,077.19 | -990,771,136.32 | -44.08% | Mainly due to the receipt of 546 million yuan in compensation for the land storage in Xialiquan in the same period last year. |
| Net Cash Flows from Financing Activities | -738,938,657.56 | -877,206,246.29 | 15.76% | Mainly due to the increase in cash paid for dividend distribution during the period |
| Net Increase in Cash and Cash Equivalents | -1,049,395,331.86 | 271,578.55 |
Whether there is significant change in Company’s profit structure or profit source during the reportingperiod
□ Applicable √ Not applicable
There is no such case during the reporting period
Revenue structure
Unit: RMB
| Current Reporting Period | Corresponding Period of Last Year | YoY Change (%) | |||
| Amount | Proportion to total revenue | Amount | Proportion to total revenue | ||
| Total Revenue | 13,676,072,161.08 | 100% | 12,528,920,625.59 | 100% | 9.16% |
| Classified by Industry | |||||
| General Equipment Manufacturing Industry | 13,676,072,161.08 | 100.00% | 12,528,920,625.59 | 100.00% | 9.16% |
| Classified by Product | |||||
| Refrigeration A/C Electrical Components | 8,278,700,304.27 | 60.53% | 7,706,021,104.32 | 61.51% | 7.43% |
| Automotive Components | 5,397,371,856.81 | 39.47% | 4,822,899,521.27 | 38.49% | 11.91% |
| Classified by Region | |||||
| Domestic Sales | 7,826,338,533.84 | 57.23% | 6,776,150,179.62 | 54.08% | 15.50% |
| Overseas Sales | 5,849,733,627.24 | 42.77% | 5,752,770,445.97 | 45.92% | 1.69% |
Industries, products or regions accounting for more than 10% of the Company’s operating revenue oroperating profit
√ Applicable □ Not applicable
Unit: RMB
| Revenue | Cost of sales | Gross margin | YoY Change (%) of operating revenue | YoY Change (%) of Cost of sales | YoY Change (%) of gross margin | |
| Classified by industry | ||||||
| General Equipment Manufacturing Industry | 13,676,072,161.08 | 9,920,390,318.93 | 27.46% | 9.16% | 6.57% | 1.76% |
| Classified by product | ||||||
| Refrigeration A/C Electrical Components | 8,278,700,304.27 | 5,997,251,947.03 | 27.56% | 7.43% | 4.76% | 1.85% |
| Automotive Components | 5,397,371,856.81 | 3,923,138,371.90 | 27.31% | 11.91% | 9.47% | 1.62% |
| Classified by region | ||||||
| Domestic Sales | 7,826,338,533.84 | 5,750,715,247.13 | 26.52% | 15.50% | 12.84% | 1.73% |
| Overseas Sales | 5,849,733,627.24 | 4,169,675,071.80 | 28.72% | 1.69% | -1.02% | 1.95% |
In the case that the Company's main business data statistics are adjusted during the reporting period, theCompany's main business data of the latest reporting period were adjusted according to the statistics at theend of the last reporting period
□ Applicable √ Not applicable
IV. Non-Main Business Analysis
√Applicable □Not applicable
Unit: RMB
| Amount | Proportion to net profit | Note of Change | Sustainability | |
| Investment Income | -11,680,068.63 | -0.63% | Floating gains/losses on futures derivatives, floating gains/losses on exchange rate derivatives, gains on bank financial products, etc. | No |
| Gains and Losses from Change of Fair Value | -43,077,568.28 | -2.32% | Floating gains/losses on exchange rate derivatives, floating gains/losses on futures derivatives, floating gains/losses on bank financial products, etc. | No |
| Non-operating Revenue | 4,559,030.63 | 0.25% | No requirement payment, profit on compensation and liquidated damages, profit on retirement of fixed assets, etc. | No |
| Non-operating Expenditures | 8,527,704.42 | 0.46% | Fixed asset retirement losses, compensation and liquidated damages, donations, etc. | No |
| Credit Impairment Loss | -76,800,982.89 | -4.14% | Bad debt losses | No |
| Assets Impairment Loss | -44,434,103.33 | -2.40% | Loss on provision for inventory decline, impairment loss on goodwill, etc. | No |
| Gains on Disposal of Properties | -245,261.28 | -0.01% | Gain on disposal of fixed assets | No |
| Other Gains | 128,552,012.14 | 6.93% | Government subsidies, VAT refund for "placement of disabled persons in employment", VAT refund for software | "Employment of persons with disabilities" VAT refund, VAT refund for software products in excess of the tax |
| products in excess of the tax burden, VAT credits, etc. | burden, and VAT credit are sustainable, but the rest are not sustainable |
V. Analysis of Assets and Liabilities
1. Material changes of assets
Unit: RMB
| At the End of Current Reporting Period | At the End of Last Year | YoY Change (%) | Note of significant change | |||
| Amount | Percentage of total assets | Amount | Percentage of total assets | |||
| Cash and bank balance | 5,222,883,432.16 | 15.78% | 6,584,684,683.93 | 20.65% | -4.87% | |
| Accounts receivable | 7,152,843,602.65 | 21.61% | 5,773,991,481.22 | 18.11% | 3.50% | |
| Inventories | 4,509,575,295.73 | 13.62% | 4,600,729,378.19 | 14.43% | -0.81% | |
| Real estate held for investment | 7,588,431.93 | 0.02% | 8,165,805.31 | 0.03% | -0.01% | |
| Long-term equity investment | 37,094,293.30 | 0.11% | 37,924,431.29 | 0.12% | -0.01% | |
| Fixed assets | 8,018,985,493.67 | 24.23% | 7,730,363,778.82 | 24.24% | -0.01% | |
| Construction in progress | 2,746,629,632.47 | 8.30% | 2,036,326,757.72 | 6.39% | 1.91% | |
| Assets with right of use | 273,457,356.51 | 0.83% | 313,254,745.53 | 0.98% | -0.15% | |
| Short-term borrowings | 1,398,200,202.82 | 4.22% | 1,212,150,378.85 | 3.80% | 0.42% | |
| Contractual liabilities | 62,714,790.24 | 0.19% | 51,788,802.03 | 0.16% | 0.03% | |
| Long-term borrowings | 2,220,000,000.00 | 6.71% | 1,030,801,111.13 | 3.23% | 3.48% | |
| Lease liabilities | 198,342,644.46 | 0.60% | 221,295,481.86 | 0.69% | -0.09% | |
| Notes receivable | 2,675,326,003.36 | 8.08% | 2,476,839,413.89 | 7.77% | 0.31% | |
| Notes payable | 3,520,145,951.34 | 10.63% | 3,416,711,594.64 | 10.71% | -0.08% | |
| Accounts payable | 5,033,866,555.98 | 15.21% | 4,449,940,359.81 | 13.95% | 1.26% | |
| Non-current liabilities due within one year | 292,569,239.45 | 0.88% | 1,440,093,253.93 | 4.52% | -3.64% | |
2. Main overseas assets
√Applicable □ Not applicable
| Content of Assets | Formation | Assets Scale (RMB) | Location | Operation Mode | Control measures to ensure asset safety | Income (RMB) | Proportion of overseas assets in net assets of the Company | Whether there is significant impairment risk |
| Sanhua International, Inc. (the U.S.) (consolidated) | Equity investment | 3,179,021,585.48 | The U.S. | R&D, manufacturing, sales and investment management | Financial monitoring, commissioning of external audits | 104,773,573.44 | No | |
| Sanhua International Singapore Pte Ltd (consolidated) | Equity investment | 4,853,870,493.24 | Singapore | Manufacturing, sales, investment management | Financial monitoring, commissioning of external audits | -82,001,316.76 | No |
3. Assets and liabilities measured at fair value
√ Applicable □ Not applicable
Unit: RMB
| Items | Opening balance | Profit and loss of fair value change in the current period | Cumulative changes in fair value included in equity | Impairment accrued in the current period | Current purchase amount | Current sale amount | Other changes | Closing balance |
| Financial Assets | ||||||||
| 1. Held-for-trading financial assets (Excluding Derivative Financial Assets) | 625,000,000.00 | 525,000,000.00 | 100,000,000.00 | |||||
| 2.Derivative Financial Assets | 22,636,112.68 | -16,754,348.24 | 5,050,000.00 | 10,931,764.44 | ||||
| Financial Assets Subtotal | 22,636,112.68 | -16,754,348.24 | 625,000,000.00 | 525,000,000.00 | 5,050,000.00 | 110,931,764.44 | ||
| Total | 22,636,112.68 | -16,754,348.24 | 625,000,000.00 | 525,000,000.00 | 5,050,000.00 | 110,931,764.44 | ||
| Financial Liabilities | 14,219,110.02 | 26,184,260.29 | -3,500,000.00 | 36,903,370.31 | ||||
Other changes
1. Other changes in financial assets represent the purchase of options and the recognition of option expense of
5.05 million yuan.
2. Other changes in financial liabilities relate to the fulfillment of performance commitments by minority
shareholders of subsidiaries, amounting to 3.5 million yuan.
Whether there were any material changes on the measurement attributes of major assets of the Companyduring the reporting period:
□ Yes √ No
4. Limitation of asset rights as of the end of reporting period
| Items | Book balance | Book value | Reason for restriction |
| Currency funds | 50,256,461.32 | 50,256,461.32 | Margin deposits |
| Notes receivable | 1,866,025,559.72 | 1,862,419,818.56 | Pledge financing |
| Accounts Receivable | 62,493,748.40 | 59,369,060.98 | Electronic debt instruments that have been transferred for payment or factored for financing but not yet matured |
| Total | 1,978,775,769.44 | 1,972,045,340.86 |
VI. Analysis of Investments
1. Overview
√Applicable □ Not applicable
| Investment during the Reporting Period (RMB) | Investment over the Corresponding Period of Last Year (RMB) | Fluctuation Rate (%) |
| 267,922,553.15 | 145,114,207.25 | 84.63% |
2. Significant equity investment during the reporting period
□Applicable √Not applicable
3. Significant non-equity investment during the reporting period
□Applicable √ Not applicable
4. Financial asset investment
（1）Securities Investments
□ Applicable √ Not applicable
No securities investments during this reporting period.
（2）Derivatives Investments
√Applicable □ Not applicable
1）Derivative investments for hedging purposes during the reporting period
√Applicable □ Not applicable
Unit: RMB in 10 thousand
| Type of derivatives investment | Opening amount | Gains and losses from changes in fair value in the current period | Accumulated fair value changes recognized in equity | Purchase amount during the reporting period | Sales amount during the reporting period | Closing amount | Ratio of closing amount to the company's net assets at the end of the reporting period |
| Futures contracts, foreign exchange contracts | |||||||
| Total | |||||||
| Accounting policies and specific accounting principles for hedging business during the reporting period, as well as explanations on whether there have been significant changes compared to the previous reporting period | No | ||||||
| Explanation of actual gains and losses during the reporting period | |||||||
| Explanation of hedging effectiveness | |||||||
| Capital source of | Own funds | ||||||
| derivatives investment | |
| Risk analysis and control measures (including but not limited to, market risk, liquidity risk, credit risk, operational risk, legal risk, etc.) of holding derivatives during the reporting period | In order to prevent raw material price risks and exchange rate risks, the Company and its subsidiaries conducted derivative instruments business, including futures instruments and foreign exchange instruments. The Company and its subsidiaries have strictly implemented the relevant provisions of the Measures for the Operation and Management of Futures Hedging Business and the Management System for Foreign Exchange Hedging Business. |
| Change of market price or fair value of invested derivatives during the reporting period; specific methods, related assumptions and parameter setting of the derivatives’ fair value analysis should be disclosed | |
| Litigation (if applicable) | N/A |
2) Derivatives investments for speculative purposes during the reporting period
□ Applicable √ Not applicable
No derivative investments for speculative purposes during this reporting period.
5. Use of raised funds
√ Applicable □ Not applicable
（1） Overall use of raised funds
√ Applicable □ Not applicable
Unit: RMB in 10 thousand
| Year | Method | Total amount of raised funds | Net amount of raised funds | Total amount of raised funds invested in the report period | Accumulated amount of raised funds invested | Total amount of raised funds with use alteration during the reporting period | Accumulated amount of raised funds with use alteration | Proportion of accumulated amount of raised funds with use alteration to the total amount of raised funds | Total amount of unused raised funds | Raised funds has not been used | Raised funds has not been used for two years |
| 2021 | Public offering | 300,000 | 298,753.1 | 11,542.58 | 230,218.31 | 73,970.8 | Deposited in the special account for fund-raising | ||||
| Total | -- | 300,000 | 298,753.1 | 11,542.58 | 230,218.31 | 73,970.8 | -- | ||||
| Description of Overall Usage of Raised Funds | |||||||||||
| (1) Actual amount of funds raised and time of fund arrival Pursuant to the approval of the China Securities Regulatory Commission by way of Securities Regulatory Permit [2021] No. 168, the Company made a public offering of 30 million convertible corporate bonds (the "Sanhua Convertible Bonds") with the nominal value of RMB100 each and the total issuance amount of 3 billion yuan, raising the total of 3 billion yuan, and the net proceeds of RMB2,987,531,008.41 after deduction of the issuance costs of RMB12,468,991.59 in 2021 June. The aforesaid arrival of the proceeds has been verified by Tianjian Accounting Firm, which has issued the Verification Report (Tianjian Verification [2021] No. 277). As one of the subjects for the implementation of the investment project is Zhejiang Sanhua Commercial Refrigeration Co.(hereinafter referred to as Sanhua Commercial), the Company has allocated RMB1,487 million of the proceeds to Sanhua Commercial by way of capital increase. (2) Use and balance of issue proceeds | |||||||||||
（2） Promised fund-raising projects
√ Applicable □ Not applicable
Unit: RMB in 10 thousand
| Committed investment projects and allocation of over-raised funds | Whether project has been (or partially) altered | Total committed investment of raised funds | Total investment after alteration (1) | Investment in the current year | Accumulative investment at the end of the period (2) | Investment progress at the end of the period (%) (3)=(2)/(1) | Date of asset ready for intended use | Benefits achieved in the current year | Whether expected benefits have been achieved | Whether feasibility of project has changed significantly |
| Committed investment projects | ||||||||||
| Construction project of commercial refrigeration and air conditioning intelligent control components with an annual output of | No | 148,700 | 148,700 | 7,336.78 | 116,664.93 | 78.46% | May 31, 2025 | N/A | No | |
| 65 million sets | ||||||||||
| Technical transformation project of high-efficiency and energy-saving refrigeration and air conditioning control components with an annual output of 50.5 million sets | Yes | 69,800 | 69,800 | 4,205.8 | 32,279.98 | 46.25% | May 31, 2025 | N/A | No | |
| Supplementary of working capital | No | 81,500 | 81,500 | 81,273.4 | 99.72% | N/A | No | |||
| Subtotal of committed investment projects | -- | 300,000 | 300,000 | 11,542.58 | 230,218.31 | -- | -- | -- | -- | |
| Ultra-purchase funds invested | ||||||||||
| No | ||||||||||
| Total | -- | 300,000 | 300,000 | 11,542.58 | 230,218.31 | -- | -- | -- | -- | |
| Circumstances and reasons for not reaching the planned progress or expected income by specific project | （1）The "Annual Production Capacity of 50.5 Million Sets of Energy-Efficient Refrigeration and Air Conditioning Control Components Technology Reform Project" is a technology reform and upgrading project, which is directly implemented by the Company and included in the integrated management and unified accounting. The actual benefits of the investment project are not expected to be separately accounted for. According to the feasibility study report of the project, the project is expected to achieve sales revenue (including tax) of RMB1,980 million in a normal year after the project reaches production, which will better enhance the operating results of the "energy-efficient refrigeration control components business". "Supplementary working capital" does not directly generate economic benefits and cannot be the subject of independent economic analyses, the estimated benefits have not been measured and the actual benefits cannot be separately accounted. (2)As approved by the Board of Directors of the Company on August 28, 2024, the date on which the "50.5 million sets of high-efficiency energy-saving refrigeration and air-conditioning control components technical transformation project" will reach its intended state of use will be postponed from August 2024 to May 2025. Other elements of the project remaining unchanged. The specific reasons for the extension of the project are as follows: At present, the new production capacity of "50.5 million sets of high-efficiency energy-saving refrigeration and air-conditioning control components technical transformation project" has been gradually released during the construction period, and the project construction work in progress has been gradually solidified. The Company combined with the existing product structure and market trends, the fund-raising funds were adopt to prudent use of reasonable investment strategy. The Company | |||||||||
| in some of the gold processing equipment, some parts of the equipment purchase, commissioning and other aspects of the process has been delayed to a certain extent, so do not have the conditions for the completion of the project. Considering the actual construction progress of the current project and the subsequent need to carry out equipment debugging, commissioning and equipment acceptance work. For the principle of prudent investment, the Company will extend the fund-raising project to reach the intended state of use date to May 2025. | |
| Significant changes in the feasibility of projects | No |
| Amount, usage and use progress of over-raised Funds | N/A |
| Change in implementation location of investment projects of Raised Funds | N/A |
| Adjustment to implementation method of investment projects of Raised Funds | N/A |
| Advance investment and substitution of projects invested with raised funds | In 2021, the Company substituted the initial investment amount of 179.3857 million yuan with raised funds |
| Temporary supplem | N/A |
| ent of working capital with idle raised funds | |
| The amount and reasons of the balance of raised funds in the project implementation | N/A |
| Applications of unused raised funds | Deposited in the special account for raised funds and the subscription of large amount certificates of deposit. |
| Problems or other situations in the use and disclosure of raised funds | N/A |
（3） Changes of raised funds
□ Applicable √ Not applicable
There was no change of raised funds in the reporting period.VII. Disposal of Significant Assets and Equity
1. Disposal of significant assets
□ Applicable √ Not applicable
During the reporting period, there was no disposal of significant assets
2. Sale of significant equity
□ Applicable √ Not applicable
VIII. Analysis of Major Subsidiaries and Investees
√ Applicable □ Not applicable
Information about major subsidiaries, and investees that contribute above 10% of the Company’s net profit
Unit：RMB
| Company name | Company type | Principal business | Registered capital | Total assets | Net assets | Operating revenue | Operating profit | Net profit |
| Zhejiang Sanhua Commercial Refrigeration Co., Ltd (Consolidated) | Subsidiary | Manufacturing and sales of refrigeration and air conditioning electrical components | 1,655.29 million | 3,087,515,910.27 | 2,314,234,343.52 | 1,152,276,790.53 | 249,370,416.90 | 216,593,626.05 |
| Sanhua (Hangzhou) Micro Channel Heat Exchanger Co.,Ltd. (Consolidated) | Subsidiary | Manufacturing and sales of refrigeration and air conditioning electrical components | 360 million | 2,438,707,479.00 | 1,348,419,002.60 | 1,126,779,750.39 | 108,919,236.47 | 94,949,178.08 |
| Zhejiang Sanhua Trading Co., Ltd. | Subsidiary | Sales of refrigeration and air conditioning electrical components | 50 million | 4,999,358,513.39 | 134,193,972.48 | 3,377,678,676.80 | -50,683,366.71 | -38,120,072.64 |
| Zhejiang Sanhua Automotive Components Co., Ltd (Consolidated) | Subsidiary | Manufacturing and sales of automotive parts | 2,160 million | 12,425,984,003.84 | 6,909,005,875.31 | 5,397,371,856.81 | 832,039,391.74 | 672,670,427.81 |
| Sanhua International, Inc. (USA) (Consolidated) | Subsidiary | Manufacturing and sales of refrigeration and air conditioning electrical component, investment management | 37.55 million USD | 3,179,021,585.48 | 1,263,154,323.73 | 2,728,808,673.34 | 125,177,062.09 | 104,773,573.44 |
| Sanhua International Singapore Pte. Ltd. (Consolidated) | Subsidiary | Manufacturing and sales of refrigeration and air conditioning electrical component, investment | 175.1512454 million USD | 4,853,870,493.24 | 1,187,394,591.49 | 3,735,370,785.72 | -75,125,814.01 | -82,001,316.76 |
management
Information about obtaining and disposal of subsidiaries during the reporting period
√ Applicable □ Not applicable
| Company name | Methods of acquiring and disposing subsidiaries during the reporting period | Impact on overall production, operation and performance |
| Zhejiang Sanhua Intelligent Drive Co. | New investment | No significant impact |
| Zhejiang Shengtai Paper Co. | New investment | No significant impact |
| SANHUATROY PROPERTY MANAGEMENT,LLC | New investment | No significant impact |
| American Tubing International Leverage Lender LLC | Liquidation and cancellation | No significant impact |
IX. Structural Entities Controlled by the Company
□ Applicable √ Not applicable
X. Risks and Countermeasures of the Company
(1) Risk of price fluctuation of raw materials
The raw materials needed by the Company are copper and aluminum, which account for a large proportion of thecost composition of the products. Therefore, the fluctuation of the market price of raw materials will bring largecost pressure to the Company. The Company will reduce the adverse impact of raw material price fluctuationsthrough the establishment of linkage pricing mechanism, hedging operation of commodity futures, timelynegotiation with customers and developing less copper and copper-free products to reduce the dependence on rawmaterials with high price volatility.
(2) The risk of rising labor cost
The labor costs are rising year by year, which reduces the profit margin of the Company to a certain extent. In thefuture, the Company will continue to improve the level of intelligent manufacturing by continuously promoting leanproduction, process improvement and technical transformation.
(3) Exchange rate fluctuation risks
The Company's export volume is large, involving North America, Europe, Japan, Korea and Southeast Asia andother regions. Due to the changes in regional trade policies, the Company's daily operation will be affected. TheCompany deals with interregional trade risks through transferring production capacity to foreign countries. Inaddition, the fluctuation of exchange rate will also have a certain impact on the profit. According to the actualsituation, the Company deals with and reduces this risk by means of forward foreign exchange settlement andestablishing overseas production bases in the United States, Poland, Mexico, Vietnam, Thailand, India and otherplaces.
XI. Implementation and enforcement of the "Double Enhancement for Quality and Returns"action programme
The Company disclosed the announcement of the action programme of "Double Enhancement for Quality andReturns".
□ Applicable √ Not applicable
Section IV Corporate GovernanceI. Annual General Meeting and Extraordinary General Meetings Convened During the
Reporting Period
1. Annual General Meeting convened during the current reporting period
| Meeting | Nature | Proportion of participating investors | Convened Date | Disclosure Date | Disclosure Index |
| First Extraordinary General Meeting in 2024 | Extraordinary General Meeting | 17.37% | May 6, 2024 | May 7, 2024 | The announcement of the resolution of the first extraordinary general meeting of shareholders in 2024 No. 2024-028 was published in China Securities Journal, Securities Times and CNINFO. |
| 2023Annual General Meeting of Shareholders | Annual General Meeting of Shareholders | 60.96% | May 20, 2024 | May 21, 2024 | The announcement of resolutions of the 2023 annual general meeting of shareholders (2024-038) was published in the Securities Times, Shanghai Securities Journal and CNINFO. |
| Second Extraordinary General Meeting in 2024 | Extraordinary General Meeting | 62.34% | June 20,2024 | June 21, 2024 | The announcement on the resolution of the second extraordinary general meeting of shareholders in 2024 (2024-055) was published in China Securities Journal, Securities Times and CNINFO. |
2. Extraordinary general meetings convened at the request of preferred shareholders with resumed voting
rights
□ Applicable √ Not applicable
II. Changes of directors, supervisors and senior management personnel
□ Applicable √ Not applicable
There were no changes in the Company's directors, supervisors, and senior management during the reportingperiod. Please refer to the 2023 Annual Report for detailsIII. Profit distribution and conversion of capital reserve to share capital during the
reporting period
√Applicable □Not applicable
| Bonus share issued per 10 shares (share) | 0 |
| Cash dividend per 10 shares (RMB) (tax inclusive) | 1.00 |
| Total capital share basis for the distribution proposal (share) | 3,731,414,614 |
| Total cash dividend (RMB) (tax inclusive) | 373,141,461.40 |
| Cash dividend amount in other ways (such as share repurchase) (RMB) | 0.00 |
| Total cash dividends (including other ways) (RMB) | 373,141,461.40 |
| Distributable profits (RMB) | 1,856,838,772.64 |
| Percentage of cash dividends in the total distributed profit (%) | 100% |
| Cash dividends | |
| Other | |
| Detailed description of profit distribution or capital reserves conversion plan | |
| Based on provisional 3,731,414,614 shares of capital stock[note], cash dividend of RMB 1.00 (tax inclusive) will be distributed to all shareholders for every 10 shares. The Company will not distribute bonus shares or convert capital reserves to share capital. A total of RMB 373,141,461.40 will be distributed, and the Company's remaining undistributed profits are carried forward to the next year. Note: The share capital of the Company is 3,732,615,535 shares, of which the number of repurchased shares is 1,200,921. According to the provisions of the Company Law, the shares held by the listed company through the repurchase account do not enjoy the right to participate in profit distribution or the conversion of capital reserve into share capital If the total share capital of the Company changes due to the conversion of convertible bonds, share repurchase, exercise of equity incentive scheme, refinancing and listing of new shares before the implementation of the distribution plan, the total distribution amount shall be adjusted accordingly based on the principle of unchanged distribution proportion. | |
IV. The Implementation of an Equity Incentive Plan, Employee Stock Incentive Plan, or
Other Incentive Plans
√Applicable □Not applicable
1. Equity incentive plan
1. In 2022, the Company launched the 2022 restricted stock incentive plan and share appreciation rights incentiveplan, granting 17.58 million shares of restricted stock to 1,366 incentive objects and 485,000 shares of shareappreciation rights were granted to 41 incentive objects. The granting date of this equity incentive plan is May 31,2022, and the granting price is 10 yuan/share. The listing date of this restricted stock is June 30, 2022.
① On June 3, 2024, the Company held the twenty-third extraordinary meeting of the seventh session of the Boardof directors and the twentieth extraordinary meeting of the seventh session of the Board of Supervisors respectivelyto consider and approve the ''Proposal on the Adjustment of the Repurchase Price of the Restricted Share IncentivePlan for the Year 2022'', ''Proposal on the Achievement of the Conditions for the Release of the Restricted Sharesduring the Second Release of Restricted Shares Period under the Restricted Share Incentive Plan for the Year 2022'',''Proposal on the Cancellation of Particular Restricted Shares”, “The Resolution on the Adjustment of the ExercisePrice under the 2022 Stock Appreciation Right Incentive Plan” “The Resolution on the Accomplishment of theExercise Conditions for the Second Exercise Period under the 2022 Stock Appreciation Right Incentive Plan” and“The Resolution on the Cancellation of Certain Stock Appreciation Rights”. The date of listing and circulation ofthe shares released from restricted sale was July 1, 2024, 1,313 shareholders were released from restricted sale,
5.133 million shares could be released from restricted sale, accounting for 0.1375% of the Company's total sharecapital at present; the Company plans to repurchase all or part of restricted shares held by 33 ineligibility incentiverecipients of the 2022 Restricted Stock Incentive Plan, with the total of 226,000 shares, the repurchase price of 9.40yuan / share. The total number of incentive recipients eligible for the exercise of stock appreciation rights was 37,and the number of feasible options was 135,000 shares; the Company cancelled all or part of the stock appreciationrights held by 2 incentive recipients who were ineligible under the 2022 Stock Appreciation Rights Incentive Plan,totalling 8500 shares.
② On June 20, 2024, the Company held the Second Extraordinary General Meeting of 2024 to consider and approvethe “Proposal on Cancellation of Certain Restricted Shares”. The Company plans to repurchase and cancel all orpart of the restricted shares held by 33 ineligible incentive recipients under the 2022 Restricted stock incentive plan,totalling 226,000 shares, with the repurchase price of 9.40 yuan/share.
2. In 2024, the Company launched the 2024 restricted stock incentive plan and stock appreciation right incentiveplan, granting 24.91 million restricted shares to 1,933 incentive objects and 560,000 stock appreciation rights to 47incentive objects. The granting dates of the share incentive plan are May 13, 2024 and June 3, 2024, and the grantingprice is 11.75 yuan/share. The listing date of the restricted shares is June 20, 2024.
2. Employee stock ownership plan
□ Applicable √ Not applicable
3. Other employee incentive schemes
□ Applicable √ Not applicable
Section V Environmental and Social Responsibility
I. Significant environmental issuesWhether the Company or the Company’s subsidiaries are critical pollutant enterprises disclosed by NationalEnvironmental Protection Department
√Yes □No
Environmental protection related policies and industry standardsDuring the reporting period, the Company strictly adhered to national environmental protection related laws andregulations in its daily production and operation, such as the Environmental Protection Law, the Air PollutionPrevention and Control Law, the Water Pollution Prevention and Control Law, the Solid Waste PollutionEnvironmental Prevention and Control Law, the Environmental Noise Pollution Prevention and Control Law, theSoil Pollution Prevention and Control Law, the Environmental Impact Assessment Law, etc. The Company strictlyimplements national environmental protection related industry standards, such as the Electroplating PollutantDischarge Standard (GB2190-2008), Comprehensive Air Pollutant Discharge Standard (GB16297-1996),Comprehensive Wastewater Discharge Standard (GB8978-1996), Emission Standard for Air Pollutants from Boilers(GB13271-2014), Emission Standard for Pollutants in the Synthetic Resin Industry (GB31572-2015), UnorganizedEmission Control Standard for volatile organic compounds (GB37822-2019), the Electroplating Water PollutantDischarge Standard (DB33/2260-2020) in Zhejiang Province and Indirect Emission Limits of Nitrogen andPhosphorus Pollutants in Industrial Enterprise Wastewater (DB33/887-2013), and Emission Standard forEnvironmental Noise at the Boundary of Industrial Enterprises (GB 12348-2008).
Administrative permits for environmental protectionSince 2010, the Company has invested in the construction of Meizhu Sanhua Industrial Estate in Xinchang County,and has obtained 25 EIA permits. All the projects have passed. In October 2023, the Company has completed there-issuance of the national emission permit.
Industry emission standards and specific situations of pollutant emissions involved in production and businessactivities
| Name of Company or subsidiary | Main pollutants and types of characteristic pollutants | Name of main pollutants and characteristic pollutants | Emission mode | Number of outlets | Distribution of emission outlets | Emission concentration | Emission standards | Total emissions | Approved total emission | Over standard emission |
| Zhejiang Sanhua Intelligent Controls Co., Ltd. | Waste water | COD | Sewer system | 1 | North | ②500mg/L | The limitation of COD in GB8978-1996 Integrated | 23.14T | 62.386 T /year | Not exceeding the standard |
| Wastewater Emission Standard is 500mg / L | ||||||||||
| Zhejiang Sanhua Intelligent Controls Co., Ltd | Waste water | Ammonia Nitrogen | Sewer system | 1 | North | ②35mg/L | The limitation listed in DB33/887-2013 Indirect Emission Limits of Nitrogen and Phosphorus Pollutants from Industrial Wastewater is 35mg / L | 2.31T | 6.262 T /year | Not exceeding the standard |
| Zhejiang Sanhua Intelligent Controls Co., Ltd | Waste gas | SO2 | Direct emission | 1 | North | ②50mg/m3 | The limitation listed in GB13271-2014 Emission Standard of Air Pollutants for Boilers is 50mg/m3 | 0.11T | 2.15 T /year | Not exceeding the standard |
| Zhejiang Sanhua Intelligent Controls Co., Ltd | Waste gas | Nitrogen Oxide | Direct emission | 1 | North | ②50mg/m3 | According to the low Nitrogen emission requirements of local government, the limitation of gas- | 0.46T | 10.06 T /year | Not exceeding the standard |
firedboiler is50mg /m3
Treatment of pollutants
Adhering to the advanced management concept, the Company takes "developing energy-saving and low-carboneconomy, creating a green quality environment" as its own responsibility, constantly surpasses, and becomes animportant creator and contributor of human green quality living environment with limited resources and unlimitedwisdom.
1. Waste water treatment: The Company responded to the construction of "five water treatment", "eliminatinginferior V-type water" and "zero direct discharge of sewage" in the whole province. The Company renovatedthe rainwater and sewage outlets in the factory area, implemented the separation of rainwater and sewage, andinstalled cut-off valves and video monitoring equipment at the Company's rainwater discharge outlets, andcollected and treated the early rainwater. There are two wastewater treatment stations in the factory. The sewagetreatment stations have been equipped with standardized sewage outlets and set up discharge outlet signs.Online monitoring device, solenoid valve flowmeter and card swiping sewage system are installed at thedischarge outlet, which has been connected with the environmental protection department. The monitoringindicators include pH, COD, total copper, total zinc, total chromium, total nickel and flow. Wastewater treatment:
The Company has entrusted a third-party professional treatment unit for treatment. The discharge indicators ofthe Company's internal control wastewater are stricter than the environmental discharge standard. The finaltreated wastewater is discharged into the sewage collection pipe network of the industrial zone and sent toShengxin sewage treatment plant for retreatment.
2. Waste gas treatment: The Company has acid pickling, electroplating waste gas, welding dust and other wastegas. All kinds of waste gas discharge cylinders are equipped with corresponding waste gas treatment devices.The acid pickling and electroplating waste gas absorption and treatment tower is installed with automatic dosingsystem, and the waste gas is discharged to air after treatment. At the same time, in order to win the blue-skydefense activity, the Company carried out low Nitrogen emission transformation of the Company's gas boilersin accordance with the requirements of relevant official departments in 2019. In 2021, the transformation andupgrading of VOCs treatment facilities in industrial enterprises have been implemented. At the same time, theprocess has been improved, and the water cleaning is used to replace the organic solvent cleaning, so as toreduce the generation of VOCs. In 2022, the Company carried out an upgrade and transformation of dieselpowered mobile source emissions, upgrading from the original National II emission standard to National IV,greatly reducing particulate matter emissions. In 2023, the Company passed the B-level acceptance of airpollution prevention and control performance of key industry enterprises in Zhejiang Province.
3. Solid waste and soil treatment(surface water): All kinds of hazardous waste of the Company are entrusted to
the third qualified party for disposal, the general solid waste with utilization value is recycled, the domesticwaste is cleared and transported by the environmental sanitation station, and the construction waste is cleanedand transported by the construction unit. In July 2020, the Company became one of the first "waste freefactories" in Shaoxing. The Company commissioned a third-party testing agency to conduct soil and
groundwater testing in 2022, and no contamination was found. In 2023, the Company was no longer on the listof key soil pollution monitoring units.
4. Noise control: The Company's existing main noise is workshop production noise, air compressor room, waste
gas and waste water treatment equipment noise. Equipment layout is reasonable, and trees are planted aroundthe workshop. Noise at factory meets the standard.
5. The "three wastes" pollution control facilities of the Company are in normal and stable operation. The pollutantsare discharged based on the standard, and there is no environmental pollution event.
Emergency Response PlanZhejiang Sanhua Intelligent Controls Co., Ltd. re-prepared the Emergency Response Plan in August 2023, and filedwith Xinchang Environmental Protection Bureau on August 30, 2023 (Record No. 330624-2023-40-M).Investment in environmental governance and protection, and payment of environmental protection taxesDuring the reporting period, the Company's environmental governance investment and payment of environmentalprotection tax amounted to 18.033 million yuan.Environmental self-monitoring programThe Company formulated Self-monitoring Scheme of Zhejiang Sanhua Intelligent Control Co., Ltd. according to therequirements of the superior environmental protection department, combined with the actual production situationand the actual needs of environmental management of the Company. The sewage station of the Company is equippedwith a laboratory, and the detection is conducted by a specially assigned person. On line automatic monitoringequipment such as pH, COD, TOC, total copper, total zinc, total chromium, total nickel, flow rate, etc. are installedat the Company's total wastewater discharge outlet, so as to achieve the combination of automatic monitoring andmanual testing. For the pollution factors such as suspended matters, total Phosphorus, Ammonia Nitrogen, total Ironand Petroleum, the Company entrusts a third-party testing agency to carry out regular monitoring according to self-monitoring requirements for national effluent licence. The monitoring results are published regularly on theenterprise self-monitoring information disclosure platform of Zhejiang Province.
Administrative penalties for environmental problems during the reporting periodNot applicable
Other environmental information that should be disclosedNot applicable
Measures and effects in reducing carbon emissions during the reporting period
√ Applicable □ Not applicable
There are direct greenhouse gas emissions from the use of natural gas, gasoline, and diesel fuel, as well as indirectgreenhouse gas emissions from purchased electricity in the Company's production and operations. In this regard,the Company is committed to energy saving and emission reduction practices, as well as continues to innovate greenproduct technologies to ensure effective use of resources and improve operational efficiency. As of the end of thereporting period, the Company had prepared and issued the Energy Management Measures, Gas and Liquid
Management Measures, Compressed Air Use Inspection and Reward & Penalty Management Regulations, TrialManagement Measures for Compressed Air Cost Reduction and Water Conservation System, and other managementsystems relating to resource conservation. By regularly checking usage, we aim to minimize the consumption ofwater, electricity, fuel, and other resources, and actively assist society in energy conservation and emission reductionwhile optimizing our own energy resource costs. At the same time, the Company has always adhered to the businessphilosophy of energy saving and environmental protection, constantly innovating products and technologies, and iscommitted to promoting the green and low-carbon development of the industry.
1. Low-carbon design and R&D: The Company takes the initiative to incorporate the concept of ecological andenvironmental protection into the process of product development, design and production, etc. Adhering to theconcept of sustainable development, the Company starts from the various stages of the life cycle of the product, andmeasures and evaluates the impact of the product on the environment during the life cycle.
2. Optimize the energy structure: Large-scale use of distributed photovoltaics in the park to replace the originalpurchased electricity and increase the purchase of green electricity. Achieving cleaner energy and using waste heatrecovery technology to achieve lower energy consumption and higher resource utilisation efficiency; On the otherhand, the energy storage system in the production park can comprehensively take advantage of peak and valleyelectricity, which improves the efficiency of distributed photovoltaic utilization.
3. Accurate control of energy efficiency: The Company continues to promote the application of smart energy IOTplatform, and effectively controls the use efficiency of all energy within the scope through real-time display ofdigital information, traceability, technical transformation and energy conservation and consumption reductionanalysis.
4. Promote green technology: The Company reduces energy consumption and improves energy efficiency throughthe improvement of manufacturing and technological process. Reduce energy consumption and carbon emission bytroubleshooting of air leakage point of compressed air pipeline of equipment, upgrading and transformation of aircompressor, emission reduction of triple supply and nitrogen recycling.
5. Enhancing green cooperation: through the conversion of purchased liquid oxygen and liquid nitrogen to in-houseproduction, in-house oxygen and nitrogen could be used directly in production, avoiding the liquefaction of oxygenand nitrogen by suppliers for large-volume shipments, and reducing the large amount of energy consumption forliquefaction of gaseous state, thus reducing the impact on the climate.
6. Complete green products: the Company develops a series of low-carbon key core components, such as electronicexpansion valves, inverter controllers, micro-channel products, significantly reducing carbon emissions from theuse of end-products, to promote the industry's green and low-carbon development.
7. Green Packaging: The company is committed to reducing the environmental impact of packaging materials byoptimising the packaging process, adopting green packaging materials and implementing recycling plans forpackaging products, and planning transportation scientifically to less environmental impact and promote the savingand recycling of packaging materials.
8. Production layout: Sanhua adheres to the concept of "wherever customers are, Sanhua is there" By setting upfactories nearby, we not only serve customers but also reduce carbon emissions in transportation. We haveestablished production bases in Mexico, Poland, Vietnam, India, Hangzhou, Wuhu, Zhongshan, and other areas.
At the same time, as a leading global manufacturer of thermal management system control components for newenergy vehicles, the Company fully grasps the business opportunities brought by the development of the globalnew energy vehicle industry, actively explores green and efficient refrigeration technology, and continues to bringprofessional and green product solutions to the industry.
Other environmental informationNot applicableII. Social responsibilityThe Company is committed to actively fulfilling the social responsibility, as well as promoting social harmonyand sustainable development through public welfare and charity programmes. The Company contributes to thesociety by visiting the elderly in nursing homes, pairing up to help the needy in the community, doing donations,etc. The Company also provides assistance and condolences to the employees in difficulty through the "Sanhua OneFamily" Fund, which has set a good example for social responsibility. During the reporting period, donations weremade to the Shangyu Charity Federation to help the disadvantaged groups.
Section VI Significant Events
I. Complete and Incomplete Commitments of the Company and Its Actual Controller,
Shareholders, Related parties, Acquirers, and Other Related Parties by the End of theReporting Period
√ Applicable □ Not applicable
| Commitments | Commitment party | Nature | Details of commitments | Date of commitments | Term of commitments | Performance |
| Commitment from reformation of shareholding | Zhang Yabo, controlling shareholder Sanhua Holding Group Co., Ltd. | Other commitment | When the number of shares sold through listing and trading in Shenzhen Stock Exchange reaches 1% of the total number of shares of the Company, it shall make an announcement within two working days from the date of the occurrence of the fact. | November 21st, 2005 | Until the commitment is fulfilled | Strict performance |
| Commitments from assets reorganization | Zhang Daocai, controlling shareholder Sanhua Holding Group Co., Ltd. | Commitment on horizontal competition, related party transactions and capital occupation | Zhang Daocai and Sanhua holding group, the controlling shareholder of the Company, promise that there will not be any competition with Sanhua intelligent controls in the business scope being or already carried out in the future. | January 5th, 2009 | Long term | Strict performance |
| Zhang Daocai, controlling shareholder Sanhua Holding Group Co., Ltd. | Commitment on horizontal competition, related party transactions and capital occupation | Sanhua Holding Group promises: after the completion of this transaction, Sanhua Holding Group and Sanhua | January 5th, 2009 | Long term | Strict performance |
| intelligent controls will sign an agreement according to law, perform legal procedures, fulfill the obligation of information disclosure and handle significant matters for approval in accordance with relevant laws, regulations, and articles of association of Sanhua intelligent controls. In the process of implementation of related party transactions, we will follow the principle of legality and reasonableness, ensure the fairness of prices and procedures, and make certain that the legitimate interests of Sanhua intelligent controls and other shareholders will not be damaged through related party transactions. | |||||
| Zhang Daocai, Zhang Yabo, Zhang Shaobo, controlling shareholder Sanhua Holding | Commitment on horizontal competition, related party transactions and capital | In order to avoid horizontal competition with Sanhua intelligent controls, Zhang | July 24th, 2015 | Long term | Strict performance |
| Group Co., Ltd., Zhejiang Sanhua Lvneng Industrial Group Co., Ltd. | occupation | Daocai, Zhang Yabo, Zhang Shaobo, Sanhua Holding Group the controlling shareholder of the Company, and Sanhua Lvneng Industry, the trading partner made the following commitments: 1. I (or the Company) will not directly or indirectly engage in or participate in the business that constitutes potential direct or indirect competition with Sanhua Intelligent Controls and its subordinate enterprises; guarantee that legal and effective measures shall be taken to urge other enterprises controlled by me (or the Company) not to engage in or participate in any business competing with Sanhua Intelligent Controls and its subordinate enterprises. 2. If Sanhua Intelligent Controls further expands its business scope, I (or the Company) and other controlled enterprises will not compete with Sanhua Intelligent Controls' expanded business; if it is possible to compete with Sanhua |
| reasonable period specified in the notice, it shall do its best to give the business opportunity to Sanhua Intelligent Controls. 4. In case of breach of the above commitment, I (or the Company) is willing to bear all responsibilities arising therefrom and fully compensate all direct or indirect losses caused to Sanhua Intelligent Controls. | |||||
| Zhang Daocai, Zhang Yabo, Zhang Shaobo, controlling shareholder Sanhua Holding Group Co., Ltd., Zhejiang Sanhua Lvneng Industrial Group Co., Ltd. | Commitment on horizontal competition, related party transactions and capital occupation | In order to standardize the related party transactions with Sanhua Intelligent Controls, Zhang Daocai, Zhang Yabo, Zhang Shaobo, Sanhua Holding Group the controlling shareholder of the Company and Sanhua Lvneng Industrial the trading partner made the following commitments: 1. I (or the Company) and the controlled enterprises will reduce the related party transactions with Sanhua intelligent controls as far as possible, and will not use their own status as shareholders | July 24th, 2015 | Long term | Strict performance |
| procedures to ensure that it will not conduct transactions with Sanhua intelligent controls on terms that are obviously unfair compared with the market price, and will not use such transactions to engage in any behavior that damages the legitimate rights and interests of Sanhua intelligent controls and other shareholders. | |||||
| Zhang Daocai, Zhang Yabo, Zhang Shaobo, controlling shareholder Sanhua Holding Group Co., Ltd. | Other Commitment | Zhang Daocai, Zhang Yabo, Zhang Shaobo and Sanhua holding Group, the controlling shareholder of the Company, made the following commitments: after the completion of the transaction, Sanhua intelligent controls will continue to improve the corporate governance structure and independent operation of the Company management system in accordance with the requirements of relevant laws | July 24th, 2015 | Long term | Strict performance |
| and regulations and the articles of Association, and continue to maintain the independence of Sanhua intelligent controls in business, assets, finance, institutions, personnel, etc. to protect the interests of all shareholders. | |||||
| Zhang Daocai, Zhang Yabo, Zhang Shaobo, controlling shareholder Sanhua Holding Group Co., Ltd., Zhejiang Sanhua Lvneng Industrial Group Co., Ltd. | Commitment on horizontal competition, related party transactions and capital occupation | 1. I (or the Company) and the controlled enterprises will reduce the related party transactions with Sanhua intelligent controls as far as possible, and will not use the position as a shareholder of Sanhua intellectual controls to seek the superior rights for business cooperation with Sanhua intelligent controls compared with other third parties; 2. I (or the Company) will not use my position as a shareholder of Sanhua intellectual controls to seek for the priority right to cooperate with Sanhua intellectual controls; 3. If there are necessary and unavoidable related party transactions, I (or the | September 18th, 2017 | Long term | Strict performance |
| shareholders. | |||||
| Zhang Daocai, Zhang Yabo, Zhang Shaobo, controlling shareholder Sanhua Holding Group Co., Ltd., Zhejiang Sanhua Lvneng Industrial Group Co., Ltd. | Commitment on horizontal competition, related party transactions and capital occupation | 1. I (or the Company) will not directly or indirectly engage in or participate in any business that may constitute potential direct or indirect competition with Sanhua intelligent controls and its subordinate enterprises; guaranteed that legal and effective measures will be taken to urge other enterprises controlled by me (or the Company) not to engage in or participate in any business that is competitive with Sanhua intelligent controls and its subordinate enterprises Business. 2. If Sanhua intelligent controls further expands its business scope, I (or the Company) and other enterprises controlled by me (or the Company) will not compete with Sanhua intelligent controls' expanded business; if it is possible to compete with Sanhua intelligent controls' business after expansion, I (or the Company) | September 18th, 2017 | Long term | Strict performance |
| shall do its best to give the business opportunity to Sanhua intelligent controls. 4. In case of breach of the above commitment, I (or the Company) is willing to bear all responsibilities arising therefrom and fully compensate all direct or indirect losses caused to Sanhua intelligent controls. | |||||
| Zhang Daocai, Zhang Yabo, Zhang Shaobo, controlling shareholder Sanhua Holding Group Co., Ltd., Zhejiang Sanhua Lvneng Industrial Group Co., Ltd. | Other commitment | After the completion of the transaction, the listed Company will continue to improve the corporate governance structure and independent operation of the Company management system in accordance with the requirements of relevant laws and regulations and the articles of association, continue to maintain the independence of the listed Company in business, assets, finance, institutions, personnel and other aspects, | September 18th, 2017 | Long term | Strict performance |
| and effectively protect the interests of all shareholders. | ||||||
| Commitment made during initial public offering or refinancing | Zhang Daocai, controlling shareholder Sanhua Holding Group Co., Ltd. | Commitment on horizontal competition, related party transactions and capital occupation | The commitment made at the time of IPO, it shall not engage in the same production, operation or business as the Company in the future. In order to avoid business competition with the Company and clarify the non-competition obligations, Sanhua Holding Group, on behalf of itself and its subsidiaries with more than 50% equity, makes a commitment to Sanhua intelligent controls to avoid possible horizontal competition. | June 7th, 2005 | Long term | Strict performance |
| Other commitments made to minority shareholders of the Company | The controlling shareholders of the listed Company Sanhua Holding Group Co., Ltd., Zhejiang Sanhua Lvneng Industrial Group Co., Ltd., and Mr. Zhang Yabo | Other commitment | Will not actively reduce holdings of the Company's shares within eighteen months from August 18, 2022. | August 18th, 2022 | Until February 17, 2024 | Strict performance |
| Are the commitments fulfilled on time | Yes | |||||
| If the commitment has not been fulfilled beyond the deadline, it should detail the specific | N/A | |||||
reasons for notcompleting thefulfillment andthe next step ofthe work plan.
II. The Company’s funds used by the controlling shareholder or its related parties for non-
operating purposes.
□ Applicable √ Not applicable
No such case during the reporting period.III. Illegal provision of guarantees for external parties
□ Applicable √ Not applicable
No such case during the reporting period.IV. Engagement and disengagement of the CPA firmWhether this financial report was audited
□Yes √ No
This report was not audited.V. Explanation Given by the Board of Directors and Supervisory Committee Regarding
the “Non-standard Auditor’s Report” Issued by the CPA Firm for the Reporting Period
□ Applicable √ Not applicable
VI. Explanation Given by the Board of Directors Regarding the “Non-standard Auditor’s
Report” Issued by the CPA Firm for the Prior Year
□ Applicable √ Not applicable
VII. Bankruptcy and Restructuring
□ Applicable √ Not applicable
No such case during the reporting period.VIII. Material Litigation and ArbitrationMaterial Litigation and Arbitration
□ Applicable √ Not applicable
No such case during the reporting period.Other litigations
□ Applicable √ Not applicable
IX. Punishments and Rectifications
□ Applicable √ Not applicable
No such case during the reporting period.X. Integrity of the Company and Its Controlling Shareholders and Actual Controllers
□ Applicable √ Not applicable
XI. Significant Related-party Transaction
1. Significant related-party transactions arising from routine operation
□Applicable √Not applicable
No such case in the reporting period.
2. Related-party transactions regarding purchase and disposal of assets or equity
□Applicable √Not applicable
No such case in the reporting period.
3. Significant related-party transactions arising from joint investments on external parties
□Applicable √Not applicable
No such case in the reporting period.
4. Related credit and debt transactions
□ Applicable √Not applicable
No such case in the reporting period.
5. Transactions with related financial companies
□Applicable √Not applicable
No such case in the reporting period.
6. Transactions between financial companies controlled by the Company and related parties
□Applicable √Not applicable
No such case in the reporting period.
7. Other significant related party transactions
□Applicable √Not applicable
No such case in the reporting period.XII. Significant Contracts and Execution
1. Matters on trusteeship, contracting, and leasing
（1）Trusteeship
□ Applicable √ Not applicable
No such case in the reporting period.
（2）Contracting
□ Applicable √ Not applicable
No such case in the reporting period.
（3）Leasing
√Applicable □ Not applicable
Please refer to the notes of leasing instructions for details under Section X Financial Report.
Projects with gains and losses exceeding 10% of the Company's total profit during the reporting period
□ Applicable √ Not applicable
No such case in the reporting period.
2. Significant guarantees
√Applicable □ Not applicable
Unit: RMB in 10 thousand
| External Guarantees from the Company and its Subsidiaries (Excluding Guarantees to the Subsidiaries) | ||||||||||
| Guaranteed Party | Disclosure date of announcement of the guarantee cap | Guarantee Cap | Actual Occurrence Date | Actual Guarantee Amount | Type of Guarantee | Collateral (if any) | Counter guarantee (if any) | Term of Guarantee | Due or Not | Guarantee for Related Parties or Not |
| Company's Guarantees to Subsidiaries | ||||||||||
| Guaranteed Party | Disclosure date of announcement of the guarantee cap | Guarantee Cap | Actual Occurrence Date | Actual Guarantee Amount | Type of Guarantee | Collateral (if any) | Counter guarantee (if any) | Term of Guarantee | Due or Not | Guarantee for Related Parties or Not |
| SANHUA INTERNATIONAL SINGAPORE PTE. LTD. | August 13, 2022 | 240,000 | March 24, 2023 | 5,363.19 | Joint liability guarantee | 2023.3.24-2024.3.23 | Yes | Yes | ||
| Guangdong Sanhua New Energy Automotive components Co. | November 7, 2023 | 500 | November 29, 2023 | 500 | Joint liability guarantee | 2023.11.29-2024.4.2 | Yes | Yes | ||
| SANHUA INTERNATIONAL SINGAPORE PTE. LTD. | April 29, 2023 | 340,000 | May 4, 2023 | 3,064.68 | Joint liability guarantee | 2023.5.4-2024.5.3 | Yes | Yes | ||
| SANHUA INTERNATIONAL SINGAPORE PTE. LTD. | April 29, 2023 | 340,000 | May 4, 2023 | 4,597.02 | Joint liability guarantee | 2023.5.4-2024.5.3 | Yes | Yes | ||
| SANHUA INTERNATIONAL SINGAPORE PTE. LTD. | April 29, 2023 | 340,000 | May 11, 2023 | 3,830.85 | Joint liability guarantee | 2023.5.11-2024.5.10 | Yes | Yes | ||
| SANHUA INTERNATIONAL SINGAPORE PTE. LTD. | April 29, 2023 | 340,000 | May 22, 2023 | 14,557.23 | Joint liability guarantee | 2023.5.22-2024.5.21 | Yes | Yes | ||
| SANHUA INTER | April 29, 2023 | 340,000 | May 31, 2023 | 7,661.7 | Joint liability guarante | 2023.5.31-2024.5.3 | Yes | Yes |
| NATIONAL SINGAPORE PTE. LTD. | e | 0 | ||||||||
| SANHUA INTERNATIONAL,INC. | April 29, 2023 | 95,000 | June 9, 2023 | 10,690.2 | Joint liability guarantee | 2023.6.9-2024.6.5 | Yes | Yes | ||
| SANHUA INTERNATIONAL,INC. | April 29, 2023 | 95,000 | September 8, 2023 | 2,850.72 | Joint liability guarantee | 2023.9.8-2024.9.6 | No | Yes | ||
| SANHUA INTERNATIONAL,INC. | April 29, 2023 | 95,000 | September 1, 2023 | 1,425.36 | Joint liability guarantee | 2023.9.1-2024.9.30 | No | Yes | ||
| SANHUA INTERNATIONAL SINGAPORE PTE. LTD. | April 29, 2023 | 340,000 | May 11, 2023 | 2,138.04 | Joint liability guarantee | 2023.5.11-2024.7.8 | No | Yes | ||
| SANHUA INTERNATIONAL SINGAPORE PTE. LTD. | April 29, 2023 | 340,000 | August 21, 2023 | 14,253.6 | Joint liability guarantee | 2023.8.21-2024.8.20 | No | Yes | ||
| SANHUA INTERNATIONAL SINGAPORE PTE. LTD. | April 29, 2023 | 340,000 | October 20, 2023 | 5,363.19 | Joint liability guarantee | 2023.10.20-2024.10.19 | No | Yes | ||
| SANHUA INTERNATIONAL SINGAP | April 29, 2023 | 340,000 | October 25, 2023 | 4,597.02 | Joint liability guarantee | 2023.10.25-2024.10.24 | No | Yes |
| ORE PTE. LTD. | ||||||||||
| SANHUA INTERNATIONAL SINGAPORE PTE. LTD. | April 29, 2023 | 340,000 | November 20, 2023 | 7,661.7 | Joint liability guarantee | 2023.11.20-2024.11.19 | No | Yes | ||
| SANHUA INTERNATIONAL SINGAPORE PTE. LTD. | April 29, 2023 | 340,000 | November 20, 2023 | 7,126.8 | Joint liability guarantee | 2023.11.20-2024.11.19 | No | Yes | ||
| SANHUA INTERNATIONAL SINGAPORE PTE. LTD. | April 29, 2023 | 340,000 | December 7, 2023 | 9,960.21 | Joint liability guarantee | 2023.12.7-2024.12.6 | No | Yes | ||
| SANHUA INTERNATIONAL SINGAPORE PTE. LTD. | April 29, 2023 | 340,000 | March 24, 2024 | 5,363.19 | Joint liability guarantee | 2024.3.24-2025.3.23 | No | Yes | ||
| SANHUA INTERNATIONAL SINGAPORE PTE. LTD. | April 30, 2024 | 360,000 | May 3, 2024 | 3,064.68 | Joint liability guarantee | 2024.5.3-2025.5.2 | No | Yes | ||
| SANHUA INTERNATIONAL SINGAPORE PTE. LTD. | April 30, 2024 | 360,000 | May 3, 2024 | 4,597.02 | Joint liability guarantee | 2024.5.3-2025.5.2 | No | Yes |
| SANHUA INTERNATIONAL SINGAPORE PTE. LTD. | April 30, 2024 | 360,000 | May 10, 2024 | 3,830.85 | Joint liability guarantee | 2024.5.10-2025.5.9 | No | Yes | ||
| SANHUA INTERNATIONAL SINGAPORE PTE. LTD. | April 30, 2024 | 360,000 | May 21, 2024 | 14,557.23 | Joint liability guarantee | 2024.5.21-2025.5.20 | No | Yes | ||
| SANHUA INTERNATIONAL SINGAPORE PTE. LTD. | April 30, 2024 | 360,000 | May 30, 2024 | 7,661.7 | Joint liability guarantee | 2024.5.30-2025.5.29 | No | Yes | ||
| SANHUA INTERNATIONAL,INC. | April 30, 2024 | 95,000 | June 6, 2024 | 10,690.2 | Joint liability guarantee | 2024.6.6-2025.6.4 | No | Yes | ||
| Zhejiang Sanhua Heat Exchanger Co. | April 30, 2024 | 20,000 | June 28, 2024 | 5,000 | Joint liability guarantee | 2024.6.28-2029.7.20 | No | Yes | ||
| Guangdong Sanhua New Energy Automotive components Co. | November 7, 2023 | 500 | April 25, 2024 | 1,105.88 | Joint liability guarantee | 2024.4.25-2024.11.30 | No | Yes | ||
| Guangdong Sanhua New Energy Automotive components Co. | November 7, 2023 | 500 | April 25, 2024 | 62.67 | Joint liability guarantee | 2024.4.25-2024.11.30 | No | Yes |
| Guangdong Sanhua New Energy Automotive components Co. | November 7, 2023 | 500 | April 25, 2024 | 647.41 | Joint liability guarantee | 2024.4.25-2024.11.30 | No | Yes | ||
| Guangdong Sanhua New Energy Automotive components Co. | November 7, 2023 | 500 | April 25, 2024 | 989.29 | Joint liability guarantee | 2024.4.25-2024.12.30 | No | Yes | ||
| Guangdong Sanhua New Energy Automotive components Co. | November 7, 2023 | 500 | April 25, 2024 | 935.38 | Joint liability guarantee | 2024.4.25-2024.12.30 | No | Yes | ||
| Subsidiaries' Guarantees to Subsidiaries | ||||||||||
| Guaranteed Party | Disclosure date of announcement of the guarantee cap | Guarantee Cap | Actual Occurrence Date | Actual Guarantee Amount | Type of Guarantee | Collateral (if any) | Counter guarantee (if any) | Term of Guarantee | Due or Not | Guarantee for Related Parties or Not |
| Total Amount of Guarantees to Subsidiaries Approved during the Reporting Period (C1) | 810,000 | Total Balance of Guarantees Actually Paid to Subsidiaries during the Reporting Period (C2) | 58,505.5 | |||||||
| Total Amount of Approved Guarantees to Subsidiaries by the end of the Reporting Period (C3) | 810,000 | Total Balance of Actual Guarantees to Subsidiaries By the end of the Reporting Period (C4) | 113,882.13 | |||||||
| The total amount of the Company's guarantees (the total of the above three items) | ||||||||||
| Total Amount of Guarantees Approved during the Reporting Period (A1+B1+C1) | 810,000 | Total Amount of Guarantees Actually Occurred during the Reporting Period (A2+B2+C2) | 58,505.5 | |||||||
| Total Amount of Guarantees Approved by the End of the Reporting Period (A3+B3+C3) | 810,000 | Total Balance of Guarantees Actually Paid by the End of the Reporting Period (A4+B4+C4) | 113,882.13 | |||||||
| Total Amount of Actual Guarantees (A4+B4+C4) as a Percentage of the Company's Net Assets | 6.31% |
| Of which： | |
| Balance of Debt Guarantees Directly or Indirectly Offered to Guaranteed Objects with Asset-liability Ratio Exceeding 70% (E) | |
| Total Amount of the Above Three Guarantees (D+E+F) | |
3. Entrusted wealth management
√Applicable □ Not applicable
Unit: RMB in 10 thousand
| Specific types | Capital source | Amount | Balance before maturity | Overdue uncollected amount | Accrued impairment amount of overdue unrecovered financial product |
| Security financial products | The Company’s self-owned funds | 101,000 | 10,000 | ||
| Bank financial products | The Company’s self-owned funds | 130,000 | 130,000 | ||
| Total | 231,000 | 140,000 | |||
Specific situation of high-risk entrusted financial management with large single amount or low security and poorliquidity
√Applicable □ Not applicable
Unit: RMB in 10 thousand
| Name of trustee | Type of trustee | Product type | Amount | Capital source | Start date | Termination date | Capital investment | Determination of return | Reference annualized rate of return | Expected return (if any) | Actual profit and loss in the reporting period | Actual recovery of profit and loss in the reporting period | Amount of provision for impairment (if any) | Through legal procedures or not | Future entrusted financial management plan or not | Event overview and relevant index (if any) |
| Citic Securities Company Limited | securit y | National debt reverse repurchase | 10,000 | Self-owned funds | April 29, 2024 | May 6, 2024 | Fixed income with guarantee of principal | 1.57% | 3.01 | 2.811 | Yes | / | ||||
| Citic Securities Company Limited | securit y | National debt reverse repurchase | 10,000 | Self-owned funds | April 29, 2024 | May 6, 2024 | Fixed income with guarantee of principal | 1.59% | 3.05 | 2.848 | Yes | / | ||||
| Citic Securities Company Limited | securit y | National debt reverse repurchase | 20,000 | Self-owned funds | April 29, 2024 | April 30, 2024 | Fixed income with guarantee of principal | 1.53% | 5.01 | 4.814 | Yes | / | ||||
| Citic Securities Company Limited | securit y | National debt reverse repurchase | 10,000 | Self-owned funds | April 30, 2024 | May 6, 2024 | Fixed income with guarantee of principal | 2.18% | 0.6 | 0.497 | Yes | / | ||||
| Citic Securities Company Limited | securit y | National debt reverse repurchas | 10,000 | Self-owned funds | April 30, 2024 | May 6, 2024 | Fixed income with guarant | 2.00% | 0.55 | 0.447 | Yes | / |
| e | ee of principal | |||||||||||||||
| Citic Securities Company Limited | securit y | National debt reverse repurchase | 10,000 | Self-owned funds | April 30, 2024 | May 6, 2024 | Fixed income with guarantee of principal | 1.98% | 0.54 | 0.441 | Yes | / | ||||
| Citic Securities Company Limited | securit y | National debt reverse repurchase | 50,000 | Self-owned funds | May 6, 2024 | May 13, 2024 | Fixed income with guarantee of principal | 1.92% | 18.41 | 15.911 | Yes | / | ||||
| Citic Securities Company Limited | securit y | National debt reverse repurchase | 10,000 | Self-owned funds | June 6, 2024 | June 7, 2024 | Fixed income with guarantee of principal | 1.79% | 1.96 | 1.862 | Yes | / | ||||
| Citic Securities Company Limited | securit y | National debt reverse repurchase | 10,000 | Self-owned funds | June 6, 2024 | June 7, 2024 | Fixed income with guarantee of principal | 1.79% | 1.96 | 1.862 | Yes | / | ||||
| Citic Securities Company Limited | securit y | National debt reverse repurchase | 10,000 | Self-owned funds | June 6, 2024 | June 7, 2024 | Fixed income with guarantee of principal | 1.79% | 1.96 | 1.862 | Yes | / | ||||
| Citic Securities Company Limited | securit y | National debt reverse repurchase | 10,000 | Self-owned funds | June 27, 2024 | July 1, 2024 | Fixed income with guarantee of principa | 2.76% | 3.03 | 3.005 | Yes | / |
| l | ||||||||||||||||
| Citic Securities Company Limited | securit y | Capital Protected Income Certificates "Rise and Shine" | 40,000 | Self-owned funds | May 14, 2024 | June 11, 2024 | Fixed income with guarantee of principal | 1.90% | 60 | 60.000 | Yes | / | ||||
| Total | 200,000 | -- | -- | -- | -- | -- | -- | 100.09 | -- | -- | -- | -- | ||||
Note: The Company's accumulated financial management of RMB3,835.99 million during the reporting period, and the above breakdown represents the Company'ssignificant financial management of a single item (the single item amounting to RMB100 million or more
Entrusted financial management is expected to be unable to recover the principal or there are other situations thatmay lead to impairment
□ Applicable √ Not applicable
4. Other significant contracts
□ Applicable √ Not applicable
No such case in the reporting period.XIII. Other significant events
□ Applicable √ Not applicable
No such case in the reporting period.
XIV. Significant events of the Company’s subsidiaries
□ Applicable √ Not applicable
No such case in the reporting period.
Section VII Changes in Shares and Information about Shareholders
I. Changes in Shares
1. Changes in shares
Unit: Share
| Before the change | Changes in the period (+, -) | After the change | |||||||
| Shares | Ratio | New Shares Issued | Bonus share | Share transferred from capital reserve | Others | Sub-total | Shares | Ratio | |
| 1. Shares subject to conditional restriction(s) | 42,522,191 | 1.14% | 19,643,311 | 19,643,311 | 62,165,502 | 1.66% | |||
| 1) Shares held by the states | |||||||||
| 2) Shares held by State-owned corporate | |||||||||
| 3) Other domestic shares | 42,466,191 | 1.14% | 19,667,311 | 19,667,311 | 62,133,502 | 1.66% | |||
| Of which: Shares held by domestic legal person | |||||||||
| Shares held by domestic natural person | 42,466,191 | 1.14% | 19,667,311 | 19,667,311 | 62,133,502 | 1.66% | |||
| 4) Shares held by overseas investors | 56,000 | 0.00% | -24,000 | -24,000 | 32,000 | 0.00% | |||
Ofwhich:
Sharesheld byoverseaslegalperson
| Of which: Shares held by overseas legal person | |||||||||
| Shares held by overseas natural person | 56,000 | 0.00% | -24,000 | -24,000 | 32,000 | 0.00% | |||
| 2. Shares without restriction | 3,690,093,344 | 98.86% | -19,643,311 | -19,643,311 | 3,670,450,033 | 98.33% | |||
| 1) RMB common shares | 3,690,093,344 | 98.86% | -19,643,311 | -19,643,311 | 3,670,450,033 | 98.33% | |||
| 2) Domestically listed foreign shares | |||||||||
| 3) Foreign shares listed overseas | |||||||||
| 4) Others | |||||||||
| 3. Total | 3,732,615,535 | 100.00% | 0 | 0 | 3,732,615,535 | 100.00% |
Reason for the changes in share capital
√ Applicable □ Not applicable
1. At the beginning of each year, the number of locked shares held by senior executives of the Company shall berecalculated according to 75% of the total shares held by senior executives.
2. The Company's 2024 Restricted Stock Incentive Plan grants 24.91 million shares of restricted stock to 1,933incentive recipients, which are sourced from the Company's repurchase account, with outstanding stocks convertedto restricted stocks.
3. On June 29, 2024, the second vesting period of the 2022 Restricted Stock Incentive Plan expired, and 5.133million Restricted stocks of 1,313 incentive recipients who met the conditions were released from restricted sale.Approval for changes in share capital
√ Applicable □ Not applicable
I. The Company's 2024 Restricted Stock Incentive Plan grants totally 24.91 million shares of restricted stock to
1,933 incentive recipients at a grant price of 11.75 per share, with a grant date of June 19 2024, as approvedbelow:
1. On April 19, 2024, the 20th interim meeting of the 7th session of the Board of Directors and the 17th interimmeeting of the 7th session of the Supervisory Committee of the Company considered and passed the "Motion onthe 2024 Restricted Share Incentive Plan (Draft) of Zhejiang SANHUA Intelligent Control Stock Co. Ltd. 2024Equity Incentive Plan" and "Proposal to Request the General Meeting of Shareholders to Authorise the Board ofDirectors to Handle Matters in Relation to the 2024 Equity Incentive Plan", the aforesaid proposals having first beenconsidered and approved by the Remuneration and Evaluation Committee of the Board of Directors.
2. On April 30, 2024, the Company disclosed in its announcement the ''Public Announcement and VerificationOpinions of the Supervisory Committee on the List of Incentive Recipients under the 2024 Equity Incentive Plan''.
3. On May 6, 2024, the First Extraordinary General Meeting of 2024 of the Company considered and passed the"Motion on the 2024 Restricted Stock Incentive Plan (Draft) of Zhejiang SANHUA Intelligent Control CompanyLimited and its Summary", the "Motion on the 2024 Equity Incentive Plan of Zhejiang SANHUA Intelligent ControlCompany Limited and its Management Measures for the Implementation of the 2024 Equity Incentive Plan and the"Motion on the Proposal for the General Meeting to Proposal on Requesting the Shareholders' General Meeting toAuthorise the Board of Directors to Handle Matters Relating to the 2024 Equity Incentive Plan.
4. On May 13, 2024, the ''Proposal on the Granting of Restricted Shares to the Incentive Recipients under the 2024Restricted Share Incentive Scheme of the Company'' was considered and approved at the Twenty-secondExtraordinary Meeting of the Seventh Session of the Board of Directors and the Nineteenth Extraordinary Meetingof the Seventh Session of the Board of Supervisors of the Company and the aforesaid proposal had been consideredand approved by the Remuneration and Evaluation Committee of the Board of Directors first.
5. On June 3, 2024, the Twenty-third Interim Meeting of the Seventh Session of the Board of Directors and theTwentieth Interim Meeting of the Seventh Session of the Supervisory Committee of the Company considered andpassed the ''Proposal on the Granting of Restricted Shares to the Incentive Recipients of the Suspended Grants underthe Company's Restricted Share Incentive Plan for the Year 2024'', ''Proposal on the Adjustment to the List ofIncentive Recipients to be Awarded Under the Restricted Share Incentive Plan for the Year 2024, the Number ofGrants and the Grant Price , the aforesaid motions have been first considered and approved by the Compensationand Evaluation Committee of the Board of Directors.
II. On June 3, 2024, the Twenty-third Interim Meeting of the Seventh Session of the Board of Directors and theTwentieth Interim Meeting of the Seventh Session of the Supervisory Committee of the Company considered andpassed the ''Proposal on the Achievement of the Conditions for Unlocking of the Restricted Shares during the SecondUnlocking Period of the Restricted Share Incentive Scheme in 2022'' and the ''Proposal on the Repurchase andCancellation of Part of Restricted Shares'', which had been firstly considered and approved by the Remunerationand Evaluation Committee of the Board of Directors. A total of 1,313 incentive recipients were eligible for therelease of restricted shares, and the number of shares available for release of restricted shares was 5.133 millionshares.
Transfer of shares
√Applicable □Not applicable
On May 13, 2024 and June 3, 2024, the Company granted totally 24.91 million shares of restricted stock to 1,933incentive recipients, and on June 19, 2024, the Company completed the transfer and registration of the restrictedstock.
Information about the implementation of share repurchase
√ Applicable □ Not applicable
1. As at June 30, 2024, the Company had repurchased a total of 13,961,794 shares of the Company, accounting for
0.3740% of the total share capital of the Company, at the highest trading price of RMB 29.09 per share and thelowest trading price of RMB 19.81 per share, for a total transaction amount of RMB 319,919,680.07 through thespecial securities account for share repurchases by means of centralised bidding trading (transaction costs notincluded). (excluding transaction fees).
2. As at June 30, 2024, a total of 12,415,964 shares repurchased by the Company in 2021 had been fully used forthe Company's restricted share incentive scheme, of which the number of repurchased shares used for the 2022restricted share incentive scheme was 9,783,096, and that for the 2024 restricted share incentive scheme was4,614,060, representing a total of 4,614,060 shares. The total amount accounted for 0.3326% of the current totalshare capital of the Company.
3. As at June 30, 2024, the total number of shares repurchased by the Company in 2022 was 7,535,067 shares whichhave been fully utilised for the 2024 Restricted Share Incentive Scheme, accounting for 0.2019% of the current totalshare capital of the Company.
The progress on reduction of re-purchase shares by means of centralized bidding
□Applicable √Not applicable
Effects of changes in share capital on the basic earnings per share ("EPS"), diluted EPS, net assets per shareattributable to common shareholders of the Company, and other financial indexes over the last year and lastperiod
□ Applicable √ Not applicable
Please refer to the financial report for details.Other contents that the Company considers necessary or required by the securities regulatory authorities todisclose
□ Applicable √ Not applicable
2. Changes in restricted shares
√ Applicable □ Not applicable
Unit: Share
| Name of shareholder | Opening balance of restricted | Vested in current period | Increased in current period | Closing balance of restricted shares | Note for restricted shares | Date of unlocking |
shares
| shares | ||||||
| Zhang Yabo | 29,268,150 | 0 | 0 | 29,268,150 | According to the relevant provisions of shares management for senior executives | According to the relevant provisions of shares management for senior executives |
| Wang Dayong | 189,421 | 0 | 100,000 | 289,421 | According to the relevant provisions of shares management for senior executives + equity incentive | According to the relevant provisions of shares management for senior executives + equity incentive |
| Ni Xiaoming | 183,796 | 0 | 80,000 | 263,796 | According to the relevant provisions of shares management for senior executives + equity incentive | According to the relevant provisions of shares management for senior executives + equity incentive |
| Chen Yuzhong | 252,562 | 0 | 80,000 | 332,562 | According to the relevant provisions of shares management for senior executives + equity incentive | According to the relevant provisions of shares management for senior executives + equity incentive |
| Hu Kaicheng | 189,421 | 0 | 80,000 | 269,421 | According to the relevant provisions of shares management for senior executives + equity incentive | According to the relevant provisions of shares management for senior executives + equity incentive |
| Yu Yingkui | 212,901 | 0 | 80,000 | 292,901 | According to the relevant provisions of shares management for senior executives + equity incentive | According to the relevant provisions of shares management for senior executives + equity incentive |
| Mo Yang | 10,926 | 0 | 0 | 10,926 | According to the relevant provisions of shares management for senior executives | According to the relevant provisions of shares management for senior executives |
| Chen Xiaoming | 8,325 | 0 | 0 | 8,325 | According to the relevant provisions of shares management | According to the relevant provisions of shares management |
for seniorexecutives
| for senior executives | for senior executives | |||||
| Other incentive objects | 11,956,000 | 5,016,000 | 24,490,000 | 31,430,000 | According to the relevant provisions of shares management for equity incentive | According to the relevant provisions of shares management for equity incentive |
| Total | 42,271,502 | 5,016,000 | 24,910,000 | 62,165,502 | -- | -- |
II. Issuance and Listing of Securities
□ Applicable √ Not applicable
III. Total Number of Shareholders and Their Shareholdings
Unit: Share
| Total Number of Common Shareholders at the End of the Reporting Period | 112,836 | Total Number of Preferred Shareholders (If Any) (Refer to Note 8) Whose Voting Rights Have Been Recovered at the End of the Reporting Period | 0 | |||||
| Particulars about shares held by shareholders with a shareholding percentage over 5% or the Top 10 of them (excluding lending shares through the facility) | ||||||||
| Name of shareholder | Nature of shareholder | Share-holding percentage (%) | Total shares held at the end of the reporting period | Increase/ decrease during the reporting period | The number of common shares held with trading restrictions | The number of shares held without trading restrictions | Pledged or frozen | |
| Status | Amount | |||||||
| Sanhua Holding Group Co., Ltd. | Domestic non-state-owned corporation | 25.41% | 948,487,077 | 0 | 0 | 948,487,077 | N/A | 0 |
| Zhejiang Sanhua Lvneng Industrial Group Co., Ltd. | Domestic non-state-owned corporation | 19.90% | 742,747,954 | 0 | 0 | 742,747,954.00 | Pledged | 150,000,000 [Note] |
| Hong Kong Central Clearing Limited | Overseas corporation | 11.50% | 429,302,609 | -149,849,406 | 0 | 429,302,609 | N/A | 0 |
| Zhang Yabo | Domestic Individual | 1.05% | 39,024,200 | 0 | 29,268,150 | 9,756,050 | N/A | 0 |
| Industrial and Commercial Bank of China Limited - Huatai-Perry CSI 300 | Others | 0.71% | 26,458,197 | 9,825,200 | 0 | 26,461,697 | N/A | 0 |
TradedOpen-EndIndex Fund
| Traded Open-End Index Fund | ||||||||
| Zhang Jianping | Domestic Individual | 0.66% | 24,662,822 | 24,662,822 | 0 | 24,662,822 | N/A | 0 |
| Industrial and Commercial Bank of China Limited - ETF CSI New Energy Vehicle Industry Index Initiated Securities Investment Fund (LOF) | Others | 0.65% | 24,383,702 | 7,758,712 | 0 | 24,383,702 | N/A | 0 |
| China Construction Bank Corporation - E Fund CSI 300 Traded Open Index Initiated Securities Investment Fund | Others | 0.49% | 18,317,634 | 2,376,600 | 0 | 18,317,634 | N/A | 0 |
| Industrial and Commercia l Bank of China Limited - HuataiPerry CSI 300 Traded Open-End Index Fund | Others | 0.47% | 17,552,480 | 11,646,500 | 0 | 17,561,480 | N/A | 0 |
| China Merchants Bank Corporation - Quanguo Xuyuan Three Year Holding Period Hybrid Securities Investment Fund | Others | 0.46% | 17,208,754 | -4,210,600 | 0 | 17,208,754 | N/A | 0 |
Information aboutStrategic Investors’ orGeneral Legal Persons’Becoming Top TenCommon Shareholders forPlacement of New Shares(If Any) (Refer to Note 3)
| Information about Strategic Investors’ or General Legal Persons’ Becoming Top Ten Common Shareholders for Placement of New Shares (If Any) (Refer to Note 3) | No | ||
| Explanation on Associated Relationship or Concerted Actions among the Above-Mentioned Shareholders | Among the above shareholders, Sanhua Holding Group Co., Ltd., Zhejiang Sanhua Lvneng Industrial Group Co., Ltd. and Zhang Yabo are the persons acting in concert. The Company does not know whether there is any related relationship between other shareholders, or whether they belong to the persons acting in concert stipulated in the Administrative Measures for the Acquisition of Listed Companies. | ||
| Explanation of the above shareholders involved in proxy/trusted voting rights and waiver of voting rights | No | ||
| Special note on the existence of repurchase special accounts among the top 10 shareholders ( if any)(Refer to Note 11) | No | ||
| Particulars about Shares Held by Top Ten Common Shareholders Holding Shares That Are Not Subject to Trading Restrictions (Excluding lending shares through the transfer facility and executive lock-up shares) | |||
| Name of Shareholder | Number of Common Shares Held without Restrictions at the End of the Reporting Period | Type of shares | |
| Type | Amount | ||
| Sanhua Holding Group Co., Ltd. | 948,487,077 | RMB common stock | 948,487,077 |
| Zhejiang Sanhua Lvneng Industrial Group Co., Ltd | 742,747,954 | RMB common stock | 742,747,954 |
| Hong Kong Central Clearing Limited | 429,302,609 | RMB common stock | 429,302,609 |
| Industrial and Commercial Bank of China Limited - Huatai-Perry CSI 300 Traded Open-End Index Fund | 26,458,197 | RMB common stock | 26,458,197 |
| Zhang Jianping | 24,662,822 | RMB common stock | 24,662,822 |
| China Life Insurance Company Co., Ltd. - Traditional - General Insurance Products -005L - CT001 Shanghai | 24,383,702 | RMB common stock | 24,383,702 |
| Industrial and Commercial Bank of China Limited - ETF CSI New Energy Vehicle Industry Index Initiated Securities Investment Fund (LOF) | 18,317,634 | RMB common stock | 18,317,634 |
| China Construction Bank Corporation - E Fund CSI 300 Traded Open Index Initiated Securities | 17,552,480 | RMB common stock | 17,552,480 |
Investment Fund
| Investment Fund | |||
| China Merchants Bank Corporation - Quanguo Xuyuan Three Year Holding Period Hybrid Securities Investment Fund | 17,208,754 | RMB common stock | 17,208,754 |
| Industrial and Commercial Bank of China Limited - China Europe Times Vanguard Equity Initiating Securities Investment Fund | 16,827,643 | RMB common stock | 16,827,643 |
| Explanation of Associated Relationship or Concerted Actions among Top Ten Common Shareholders without Trading Restrictions, and among Top Ten Common Shareholders without Trading Restrictions and Top Ten Common Shareholders | Among the above shareholders, Sanhua Holding Group Co., Ltd., Zhejiang Sanhua Lvneng Industrial Group Co., Ltd. and Zhang Yabo are the persons acting in concert. The Company does not know whether there is any related relationship between other shareholders, or whether they belong to the persons acting in concert stipulated in the Administrative Measures for the Acquisition of Listed Companies. | ||
| Explanation of Top Ten Common Shareholders’ Participation in Securities Margin Trading (If Any) (Refer to Note 4) | N/A | ||
Note: Sanhua Lvneng pledged additional 70 million shares on August 8, 2024. After this pledge, the shares of theCompany held by Sanhua Lvneng have been pledged the aggregate of 220 million shares.
Shareholders holding more than 5% of shares, top 10 shareholders and top 10 shareholders with unlimited sharesin circulation participating in the lending of shares in the transfer and financing business
√ Applicable □ Not applicable
Unit: Share
| Shareholders holding more than 5% of shares, top 10 shareholders and top 10 shareholders with unlimited shares in circulation participating in the lending of shares in the transfer and financing business | ||||||||
| Full name of shareholder | Shares in the common account and credit account at the period-begin | Shares lent and not yet returned at the period-begin | Shares in the common account and credit account at the period-end | Shares lent and not yet returned at the period-end | ||||
| Total shares | As % of total share capital | Total shares | As % of total share capital | Total shares | As % of total share capital | Total shares | As % of total share capital | |
| Industrial and Commercial Bank of China Limited - Huatai-Perry CSI 300 Traded Open-End Index | 24,211,397 | 0.65% | 3,500 | 0.00% | 26,458,197 | 0.71% | 3,500 | 0.00% |
Fund
| Fund | ||||||||
| China Construction Bank Corporation - E Fund CSI 300 Traded Open Index Initiated Securities Investment Fund | 16,781,080 | 0.45% | 52,100 | 0.00% | 17,552,480 | 0.47% | 9,000 | 0.00% |
Top 10 shareholders and top 10 shareholders with unlimited number of outstanding shares changed from theprevious period due to lending/returning of convertible bonds
□ Applicable √ Not applicable
Any of the Company’s top 10 common shareholders or top 10 non-restricted common shareholders conducted anyagreed buy-back in the reporting period
□ Applicable √ Not applicable
No such cases during the current reporting period.IV. Shareholding changes of directors, supervisors, senior management personnel
√ Applicable □ Not applicable
| Name | Title | Tenure status | Number of shares held at the period-begin(shares) | Number of additional shares held during the period (shares) | Number of shares reduced during the period (shares) | Number of shares held at the period-end (shares) | Number of restricted shares granted at the period-begin(shares) | Number of restricted shares granted during the period (shares) | Number of restricted shares granted at the period-end (shares) |
| Wang Dayong | Direct or, President | Incumbent | 252,562 | 100,000 | 0 | 352,562 | 56,000 | 100,000 | 132,000 |
| Ni Xiaoming | Direct or | Incumbent | 245,062 | 80,000 | 0 | 325,062 | 49,000 | 80,000 | 108,000 |
| Chen Yuzhong | Direct or, chief engine er | Incumbent | 336,750 | 80,000 | 0 | 416,750 | 56,000 | 80,000 | 112,000 |
| Hu Kaicheng | Vice president, Secretary of the board of directors | Incumbent | 252,562 | 80,000 | 0 | 332,562 | 56,000 | 80,000 | 112,000 |
| Yu Yingkui | Vice president, CFO | Incumbent | 283,869 | 80,000 | 0 | 363,869 | 56,000 | 80,000 | 112,000 |
| Total | -- | -- | 1,370,805 | 420,000 | 0 | 1,790,805 | 273,000 | 420,000 | 576,000 |
V. Changes in Controlling Shareholders or Actual ControllersChange of the controlling shareholder during the current reporting period
□ Applicable √ Not applicable
No such cases in the reporting period.
Change of the actual controller during the reporting period
□ Applicable √ Not applicable
No such cases in the current reporting period.
Section VIII Information of Preferred Shares
□ Applicable √ Not applicable
No existed preferred shares for the Company during the current reporting period.
Section IX Bonds
□ Applicable √ Not applicable
Section X Financial ReportI. Audit reportWhether the semi-annual report is audited
□ Yes √ No
The Company’s 2024 Semi-annual Financial Report has not been audited.
II. Financial StatementsUnits of financial reports in the notes: RMB
1. Consolidated balance sheet
Prepared by: Zhejiang Sanhua Intelligent Controls Co., Ltd.
June 30, 2024
Unit: RMB
| Items | June 30, 2024 | January 1, 2024 |
| Current asset： | ||
| Cash and Bank Balances | 5,222,883,432.16 | 6,584,684,683.93 |
| Settlement funds | ||
| Loans to other banks | ||
| Held-for-trading financial assets | 100,000,000.00 | |
| Derivative financial assets | 10,931,764.44 | 22,636,112.68 |
| Notes receivable | 2,675,326,003.36 | 2,476,839,413.89 |
| Accounts receivable | 7,152,843,602.65 | 5,773,991,481.22 |
| Receivable financing | ||
| Advances paid | 151,070,635.58 | 133,792,623.54 |
| Premium receivable | ||
| Reinsurance accounts receivable | ||
| Reinsurance reserves receivable | ||
| Other receivables | 189,681,028.61 | 227,792,892.12 |
| Including: Interest receivable | ||
| Dividends receivable | ||
| Repurchasing of financial assets | ||
| Inventories | 4,509,575,295.73 | 4,600,729,378.19 |
| Including: Data resources | ||
| Contract assets | ||
| Assets held for sales | ||
| Non-current assets due within one year | ||
| Other current assets | 191,097,848.27 | 251,073,584.56 |
Total current assets
| Total current assets | 20,203,409,610.80 | 20,071,540,170.13 |
| Non-current assets: | ||
| Loans and advances paid | ||
| Debt investments | ||
| Other debt investments | ||
| Long-term receivable | 3,805,833.60 | |
| Long-term equity investments | 37,094,293.30 | 37,924,431.29 |
| Other equity instrument investments | ||
| Other non-current financial assets | ||
| Investment property | 7,588,431.93 | 8,165,805.31 |
| Fixed assets | 8,018,985,493.67 | 7,730,363,778.82 |
| Construction in progress | 2,746,629,632.47 | 2,036,326,757.72 |
| Productive biological assets | ||
| Oil & gas assets | ||
| Right-of-use assets | 273,457,356.51 | 313,254,745.53 |
| Intangible assets | 1,022,779,188.91 | 843,866,292.82 |
| Including: Data resources | ||
| Development expenditures | ||
| Including: Data resources | ||
| Goodwill | 6,583,577.40 | 6,785,228.04 |
| Long-term prepayments | 139,905,636.19 | 118,096,436.09 |
| Deferred tax assets | 102,523,517.15 | 156,432,157.23 |
| Other non-current assets | 541,833,750.09 | 564,023,136.83 |
| Total non-current assets | 12,897,380,877.62 | 11,819,044,603.28 |
| Total assets | 33,100,790,488.42 | 31,890,584,773.41 |
| Current liabilities: | ||
| Short-term borrowings | 1,398,200,202.82 | 1,212,150,378.85 |
| Central bank loans | ||
| Loans from other banks | ||
| Held-for-trading financial liabilities | 3,500,000.00 | |
| Derivative financial liabilities | 36,903,370.31 | 10,719,110.02 |
| Notes payable | 3,520,145,951.34 | 3,416,711,594.64 |
| Accounts payable | 5,033,866,555.98 | 4,449,940,359.81 |
| Advances received | ||
| Contract liabilities | 62,714,790.24 | 51,788,802.03 |
| Selling of repurchased financial assets | ||
| Absorbing deposit and interbank deposit | ||
| Deposit for agency security transaction | ||
| Deposit for agency security underwriting | ||
| Employee benefits payable | 494,084,219.25 | 598,801,246.34 |
| Taxes and rates payable | 272,273,758.52 | 382,396,791.19 |
| Other payables | 578,350,601.82 | 250,642,662.86 |
| Including: Interest Payable | ||
| Dividends |
Payable
| Payable | ||
| Handling fee and commission payable | ||
| Reinsurance accounts payable | ||
| Liabilities classified as held for sale | ||
| Non-current liabilities due within one year | 292,569,239.45 | 1,440,093,253.93 |
| Other current liabilities | 2,837,216.89 | 2,099,986.27 |
| Total current liabilities | 11,691,945,906.62 | 11,818,844,185.94 |
| Non-current liabilities: | ||
| Insurance policy reserve | ||
| Long-term borrowings | 2,220,000,000.00 | 1,030,801,111.13 |
| Bonds payable | ||
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Lease liabilities | 198,342,644.46 | 221,295,481.86 |
| Long-term payables | 17,497,031.70 | 11,290,788.32 |
| Long-term employee benefits payable | 37,014,460.55 | 39,840,362.77 |
| Provisions | ||
| Deferred income | 411,084,710.03 | 379,140,042.48 |
| Deferred tax liabilities | 247,868,736.73 | 307,511,069.30 |
| Other non-current liabilities | 18,154,107.25 | 18,154,107.25 |
| Total non-current liabilities | 3,149,961,690.72 | 2,008,032,963.11 |
| Total liabilities | 14,841,907,597.34 | 13,826,877,149.05 |
| Equity: | ||
| Share capital | 3,732,615,535.00 | 3,732,615,535.00 |
| Other equity instruments | ||
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Capital reserve | 3,198,382,978.14 | 3,455,643,565.98 |
| Less: Treasury shares | 435,418,676.78 | 423,468,591.57 |
| Other comprehensive income | -56,162,453.59 | 114,757,064.28 |
| Special reserve | ||
| Surplus reserve | 1,011,914,243.67 | 1,011,914,243.67 |
| General risk reserve | ||
| Undistributed profit | 10,590,831,458.68 | 10,002,942,167.43 |
| Total equity attributable to the parent Company | 18,042,163,085.12 | 17,894,403,984.79 |
| Non-controlling interest | 216,719,805.96 | 169,303,639.57 |
| Total equity | 18,258,882,891.08 | 18,063,707,624.36 |
| Total liabilities & equity | 33,100,790,488.42 | 31,890,584,773.41 |
Legal representative：Zhang Yabo Officer in charge of accounting：Yu Yingkui Head of accountingdepartment：Li Zhimi
2. Parent Company Balance Sheet
Unit: RMB
| Items | June 30, 2024 | January 1, 2024 |
| Current assets: | ||
| Cash and bank balances | 1,972,313,106.42 | 3,755,111,885.56 |
Held-for-trading financialassets
| Held-for-trading financial assets | 100,000,000.00 | |
| Derivative financial assets | 8,355,659.20 | 1,463,100.00 |
| Notes receivable | 391,660,072.05 | 1,293,651,597.02 |
| Accounts receivable | 1,533,553,307.90 | 703,445,875.41 |
| Receivables financing | ||
| Advances paid | 8,883,876.05 | 7,501,313.44 |
| Other receivables | 467,355,212.61 | 2,269,591,236.02 |
| Including: Interest Receivable | ||
| Dividends Receivable | 550,000,000.00 | |
| Inventories | 683,943,972.23 | 772,429,361.79 |
| Including: Data resources | ||
| Contract assets | ||
| Assets classified as held for sale | ||
| Non-current assets due within one year | ||
| Other current assets | ||
| Total current assets | 5,166,065,206.46 | 8,803,194,369.24 |
| Non-current assets: | ||
| Debt investments | ||
| Other debt investments | ||
| Long-term receivable | 500,000.00 | 500,000.00 |
| Long-term equity investments | 9,167,742,923.42 | 8,880,133,268.57 |
| Other equity instrument investments | ||
| Other non-current financial assets | ||
| Investment property | ||
| Fixed assets | 1,654,521,000.34 | 1,623,330,889.08 |
| Construction in progress | 64,544,194.78 | 53,871,265.08 |
| Productive biological assets | ||
| Oil & gas assets | ||
| Right-of-use assets | 7,341,677.21 | 9,370,623.95 |
| Intangible assets | 142,242,171.23 | 142,130,830.79 |
| Including: Data resources | ||
| Development expenditures | ||
| Including: Data resources | ||
| Goodwill | ||
| Long-term prepayments | 16,887,644.98 | 15,876,569.88 |
| Deferred tax assets | 5,587,256.35 | |
| Other non-current assets | 79,453,826.12 | 99,458,254.31 |
| Total non-current assets | 11,133,233,438.08 | 10,830,258,958.01 |
| Total assets | 16,299,298,644.54 | 19,633,453,327.25 |
| Current liabilities: | ||
| Short-term borrowings | 400,368,222.26 | 202,384,500.02 |
| Held-for-trading financial liabilities | ||
| Derivative financial liabilities | ||
| Notes payable | 579,704,486.32 | 559,657,858.19 |
Accounts payable
| Accounts payable | 1,769,427,802.35 | 1,465,144,230.80 |
| Advances received | ||
| Contract liabilities | 1,053,654.28 | 121,488.76 |
| Employee benefits payable | 95,894,342.21 | 127,817,926.77 |
| Taxes and rates payable | 34,905,187.74 | 112,191,203.17 |
| Other payables | 749,086,724.15 | 4,315,100,068.76 |
| Including: interest payable | ||
| Dividends Payable | ||
| Liabilities classified as held for sale | ||
| Non-current liabilities due within one year | 236,096,564.61 | 1,373,267,226.41 |
| Other current liabilities | ||
| Total current liabilities | 3,866,536,983.92 | 8,155,684,502.88 |
| Non-current liabilities: | ||
| Long-term borrowings | 2,170,000,000.00 | 1,030,801,111.13 |
| Bonds payable | ||
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Lease liabilities | 3,451,045.86 | 5,571,522.93 |
| Long-term payables | ||
| Long-term employee benefits payable | ||
| Provisions | ||
| Deferred income | 48,351,515.00 | 47,332,045.49 |
| Deferred tax liabilities | 72,722,628.72 | 81,604,566.52 |
| Other non-current liabilities | ||
| Total non-current liabilities | 2,294,525,189.58 | 1,165,309,246.07 |
| Total liabilities | 6,161,062,173.50 | 9,320,993,748.95 |
| Equity: | ||
| Share capital | 3,732,615,535.00 | 3,732,615,535.00 |
| Other equity instruments | ||
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Capital reserve | 4,100,378,768.83 | 4,351,276,453.48 |
| Less: treasury shares | 435,418,676.78 | 423,468,591.57 |
| Other comprehensive income | ||
| Special reserve | ||
| Surplus reserve | 883,822,071.35 | 883,822,071.35 |
| Undistributed profit | 1,856,838,772.64 | 1,768,214,110.04 |
| Total equity | 10,138,236,471.04 | 10,312,459,578.30 |
| Total liabilities & equity | 16,299,298,644.54 | 19,633,453,327.25 |
3. Consolidated Income statement
Unit: RMB
| Items | 2024 Interim | 2023 Interim |
| I. Total operating revenue | 13,676,072,161.08 | 12,528,920,625.59 |
| Including: Operating revenue | 13,676,072,161.08 | 12,528,920,625.59 |
| Interest income | ||
| Premium earned | ||
| Revenue from handling charges and commission | ||
| II. Total operating cost | 11,770,455,716.86 | 10,680,635,898.54 |
| Including: Operating cost | 9,920,390,318.93 | 9,308,660,916.27 |
| Interest expenses | ||
| Handling charges and commission expenditures | ||
| Surrender value | ||
| Net payment of insurance claims | ||
| Net provision of insurance policy reserve | ||
| Premium bonus expenditures | ||
| Reinsurance expenses | ||
| Taxes and surcharges | 84,233,430.28 | 59,377,415.32 |
| Selling expenses | 297,002,465.74 | 264,131,730.27 |
| Administrative expenses | 887,999,303.50 | 619,856,574.65 |
| R&D expenses | 632,611,907.96 | 580,269,632.04 |
| Financial expenses | -51,781,709.55 | -151,660,370.01 |
| Including: Interest expenses | 71,736,060.65 | 126,688,323.68 |
| Interest income | 84,853,231.77 | 87,661,462.57 |
| Add: Other income | 128,552,012.14 | 62,816,875.53 |
| Investment income (or less: losses) | -11,680,068.63 | -46,142,073.31 |
| Including: Investment income from associates and joint ventures | 5,419,862.01 | 5,296,750.30 |
| Gains from derecognition of financial assets at amortized cost | -8,174,613.92 | |
| Gains on foreign exchange (or less: losses) | ||
| Gains on net exposure to hedging risk (or less: losses) | ||
| Gains on changes in fair value (or less: losses) | -43,077,568.28 | -88,814,525.03 |
| Credit impairment loss (or less: losses) | -76,800,982.89 | -72,153,972.68 |
| Assets impairment loss (or less: losses) | -44,434,103.33 | -24,923,403.90 |
| Gains on asset disposal (or less: losses) | -245,261.28 | -406,527.50 |
| III. Operating profit (or less: losses) | 1,857,930,471.95 | 1,678,661,100.16 |
| Add: Non-operating revenue | 4,559,030.63 | 4,564,351.93 |
Less: Non-operatingexpenditures
| Less: Non-operating expenditures | 8,527,704.42 | 5,260,738.91 |
| IV. Profit before tax (or less: total loss) | 1,853,961,798.16 | 1,677,964,713.18 |
| Less: Income tax expense | 332,296,145.99 | 263,470,197.45 |
| V. Net profit (or less: net loss) | 1,521,665,652.17 | 1,414,494,515.73 |
| (I) Categorized by the continuity of operations | ||
| 1. Net profit from continuing operations (or less: net loss) | 1,521,665,652.17 | 1,414,494,515.73 |
| 2. Net profit from discontinued operations (or less: net loss) | ||
| (II) Categorized by the portion of equity ownership | ||
| 1. Net profit attributable to owners of parent Company (or less: net loss) | 1,514,515,444.75 | 1,394,760,848.85 |
| 2. Net profit attributable to non-controlling shareholders (or less: net loss) | 7,150,207.42 | 19,733,666.88 |
| VI. Other comprehensive income after tax | -170,919,517.87 | 94,145,944.13 |
| Items attributable to the owners of the parent Company | -170,919,517.87 | 94,145,944.13 |
| (I) Not to be reclassified subsequently to profit or loss | ||
| 1.Changes in remeasurement on the net defined benefit plan | ||
| 2. Items under equity method that will not be reclassified to profit or loss | ||
| 3. Changes in fair value of other equity instrument investments | ||
| 4. Changes in fair value of own credit risk | ||
| 5. Others | ||
| (II) To be reclassified subsequently to profit or loss | -170,919,517.87 | 94,145,944.13 |
| 1. Items under equity method that may be reclassified to profit or loss | ||
| 2. Changes in fair value of other debt investments | ||
| 3. Profit or loss from reclassification of financial assets into other comprehensive income | ||
| 4. Provision for credit impairment of other debt investments | ||
| 5.Cash flow hedging reserve | ||
| 6. Translation reserve | -170,919,517.87 | 94,145,944.13 |
| 7. Others |
Items attributable to non-controlling shareholders
| Items attributable to non-controlling shareholders | ||
| VII. Total comprehensive income | 1,350,746,134.30 | 1,508,640,459.86 |
| Items attributable to the owners of the parent Company | 1,343,595,926.88 | 1,488,906,792.98 |
| Items attributable to non-controlling shareholders | 7,150,207.42 | 19,733,666.88 |
| VIII. Earnings per share (EPS): | ||
| (I) Basic EPS (yuan per share) | 0.40 | 0.39 |
| (II) Diluted EPS (yuan per share) | 0.40 | 0.39 |
Legal representative：Zhang Yabo Officer in charge of accounting：Yu Yingkui Head of accountingdepartment：Li Zhimi
4. Income statement of the Parent Company
Unit: RMB
| Items | 2024 Interim | 2023 Interim |
| I. Operating revenue | 3,604,910,150.35 | 3,376,084,891.56 |
| Less: Operating cost | 2,699,896,113.74 | 2,626,431,304.22 |
| Taxes and surcharges | 20,108,843.46 | 16,723,005.44 |
| Selling expenses | 16,870,927.89 | 15,955,241.78 |
| Administrative expenses | 176,761,913.69 | 134,058,887.06 |
| R&D expenses | 146,298,916.01 | 153,802,234.31 |
| Financial expenses | -2,764,047.88 | 44,791,262.57 |
| Including: Interest expenses | 41,595,966.73 | 106,958,559.19 |
| Interest income | 47,883,088.75 | 59,962,732.06 |
| Add: Other income | 13,056,130.43 | 18,207,329.04 |
| Investment income (or less: losses) | 523,114,161.13 | 64,615,265.38 |
| Including: Investment income from associates and joint ventures | 4,819,302.01 | 4,605,330.06 |
| Gains from derecognition of financial assets at amortized cost (or less: losses) | ||
| Gains on net exposure to hedging (or less: losses) | ||
| Gains on changes in fair value (or less: losses) | 1,842,559.20 | -2,692,778.64 |
| Credit impairment loss (or less: losses) | 4,001,428.97 | -3,773,476.35 |
| Assets impairment loss (or less: losses) | ||
| Gains on asset disposal (or less: losses) | 2,972.81 | 102,873.11 |
| II. Operating profit (or less: losses) | 1,089,754,735.98 | 460,782,168.72 |
| Add: Non-operating revenue | 1,076,815.23 | 522,218.81 |
| Less: Non-operating expenditures | 1,652,847.65 | 622,679.50 |
| III. Profit before tax (or less: total loss) | 1,089,178,703.56 | 460,681,708.03 |
Less: Income tax expense
| Less: Income tax expense | 73,927,887.46 | 53,317,816.09 |
| IV. Net profit (or less: net loss) | 1,015,250,816.10 | 407,363,891.94 |
| (I) Net profit from continuing operations (or less: net loss) | 1,015,250,816.10 | 407,363,891.94 |
| (II) Net profit from discontinued operations (or less: net loss) | ||
| V. Other comprehensive income after tax | ||
| (I) Not to be reclassified subsequently to profit or loss | ||
| 1.Changes in remeasurement on the net defined benefit plan | ||
| 2. Items under equity method that will not be reclassified to profit or loss | ||
| 3. Changes in fair value of other equity instrument investments | ||
| 4. Changes in fair value of own credit risk | ||
| 5. Others | ||
| (II) To be reclassified subsequently to profit or loss | ||
| 1. Items under equity method that may be reclassified to profit or loss | ||
| 2. Changes in fair value of other debt investments | ||
| 3. Profit or loss from reclassification of financial assets into other comprehensive income | ||
| 4. Provision for credit impairment of other debt investments | ||
| 5. Cash flow hedging reserve (profit or loss on cash flow hedging) | ||
| 6. Translation reserve | ||
| 7. Others | ||
| VI. Total comprehensive income | 1,015,250,816.10 | 407,363,891.94 |
| VII. Earnings per share (EPS): | ||
| (I) Basic EPS | ||
| (II) Diluted EPS |
5. Consolidated Cash Flow Statement
Unit: RMB
| Items | 2024 Interim | 2023 Interim |
| I. Cash flows from operating activities: | ||
| Cash receipts from sale of goods or rendering of services | 12,835,226,773.27 | 12,310,137,775.42 |
| Net increase of client deposit and |
interbank deposit
| interbank deposit | ||
| Net increase of central bank loans | ||
| Net increase of loans from other financial institutions | ||
| Cash receipts from original insurance contract premium | ||
| Net cash receipts from reinsurance | ||
| Net increase of policy-holder deposit and investment | ||
| Cash receipts from interest, handling charges and commission | ||
| Net increase of loans from others | ||
| Net increase of repurchase | ||
| Net cash receipts from agency security transaction | ||
| Receipts of tax refund | 418,010,676.37 | 230,989,224.84 |
| Other cash receipts related to operating activities | 238,171,867.92 | 115,095,499.27 |
| Subtotal of cash inflows from operating activities | 13,491,409,317.56 | 12,656,222,499.53 |
| Cash payments for goods purchased and services received | 9,064,591,310.07 | 8,435,913,051.14 |
| Net increase of loans and advances to clients | ||
| Net increase of central bank deposit and interbank deposit | ||
| Cash payments for insurance indemnities of original insurance contracts | ||
| Net increase of loans to others | ||
| Cash payments for interest, handling charges and commission | ||
| Cash payments for policy bonus | ||
| Cash paid to and on behalf of employees | 2,086,751,143.95 | 1,745,042,767.20 |
| Cash payments for taxes and rates | 691,470,586.47 | 370,908,197.71 |
| Other cash payments related to operating activities | 486,966,400.90 | 385,684,889.87 |
| Subtotal of cash outflows from operating activities | 12,329,779,441.39 | 10,937,548,905.92 |
| Net cash flows from operating activities | 1,161,629,876.17 | 1,718,673,593.61 |
| II. Cash flows from investing activities: | ||
| Cash receipts from withdrawal of investments | ||
| Cash receipts from investment income | 7,417,488.90 | 11,925,092.64 |
| Net cash receipts from the disposal of fixed assets, intangible assets and other long-term assets | 358,018.25 | 560,463,829.79 |
| Net cash receipts from the disposal of subsidiaries & other business units | ||
| Other cash receipts related to investing activities | 599,458,224.67 | 454,311,380.20 |
| Subtotal of cash inflows from | 607,233,731.82 | 1,026,700,302.63 |
investing activities
| investing activities | ||
| Cash payments for the acquisition of fixed assets, intangible assets and other long-term assets | 1,595,170,957.86 | 1,938,773,141.25 |
| Cash payments for investments | 3,500,000.00 | |
| Net increase of pledged borrowings | ||
| Net cash payments for the acquisition of subsidiaries & other business units | ||
| Other cash payments related to investing activities | 439,605,851.15 | 75,198,297.70 |
| Subtotal of cash outflows from investing activities | 2,034,776,809.01 | 2,017,471,438.95 |
| Net cash flows from investing activities | -1,427,543,077.19 | -990,771,136.32 |
| III. Cash flows from financing activities: | ||
| Cash receipts from absorbing investments | 337,623,562.50 | 7,090,938.20 |
| Including: Cash received by subsidiaries from non-controlling shareholders as investments | 35,010,251.75 | 7,090,938.20 |
| Cash receipts from borrowings | 1,390,000,000.00 | 918,843,500.00 |
| Other cash receipts related to financing activities | 29,918,063.05 | 39,626,352.75 |
| Subtotal of cash inflows from financing activities | 1,757,541,625.55 | 965,560,790.95 |
| Cash payments for the repayment of borrowings | 1,140,000,000.00 | 967,560,802.01 |
| Cash payments for distribution of dividends or profits and for interest expenses | 993,916,578.17 | 806,707,757.88 |
| Including: Cash paid by subsidiaries to non-controlling shareholders as dividend or profit | 1,200,000.00 | 19,951,954.67 |
| Other cash payments related to financing activities | 362,563,704.94 | 68,498,477.35 |
| Subtotal of cash outflows from financing activities | 2,496,480,283.11 | 1,842,767,037.24 |
| Net cash flows from financing activities | -738,938,657.56 | -877,206,246.29 |
| IV. Effect of foreign exchange rate changes on cash & cash equivalents | -44,543,473.28 | 149,575,367.55 |
| V. Net increase in cash and cash equivalents | -1,049,395,331.86 | 271,578.55 |
| Add: Opening balance of cash and cash equivalents | 3,624,955,498.84 | 2,050,328,601.77 |
| VI. Closing balance of cash and cash equivalents | 2,575,560,166.98 | 2,050,600,180.32 |
6. Cash Flow Statement of the Parent Company
Unit: RMB
| Items | 2024 Interim | 2023 Interim |
I. Cash flows from operating activities:
| I. Cash flows from operating activities: | ||
| Cash receipts from sale of goods and rendering of services | 3,766,750,803.41 | 2,915,020,263.22 |
| Receipts of tax refund | 55,669,134.77 | 59,871,119.99 |
| Other cash receipts related to operating activities | 104,539,629.58 | 59,140,225.47 |
| Subtotal of cash inflows from operating activities | 3,926,959,567.76 | 3,034,031,608.68 |
| Cash payments for goods purchased and services received | 1,963,487,906.98 | 1,801,889,579.35 |
| Cash paid to and on behalf of employees | 351,014,174.24 | 310,450,399.64 |
| Cash payments for taxes and rates | 94,604,476.46 | 81,786,514.53 |
| Other cash payments related to operating activities | 70,526,615.25 | 51,315,280.70 |
| Subtotal of cash outflows from operating activities | 2,479,633,172.93 | 2,245,441,774.22 |
| Net cash flows from operating activities | 1,447,326,394.83 | 788,589,834.46 |
| II. Cash flows from investing activities: | ||
| Cash receipts from withdrawal of investments | ||
| Cash receipts from investment income | 1,060,191,424.87 | 61,868,191.54 |
| Net cash receipts from the disposal of fixed assets, intangible assets and other long-term assets | 7,900.00 | 91,582,409.06 |
| Net cash receipts from the disposal of subsidiaries & other business units | ||
| Other cash receipts related to investing activities | 1,116,585,714.74 | 462,874,796.10 |
| Subtotal of cash inflows from investing activities | 2,176,785,039.61 | 616,325,396.70 |
| Cash payments for the acquisition of fixed assets, intangible assets and other long-term assets | 103,365,117.04 | 82,942,530.86 |
| Cash payments for investments | 1,230,161,306.01 | 145,114,207.25 |
| Net cash payments for the acquisition of subsidiaries & other business units | ||
| Other cash payments related to investing activities | 372,443,768.69 | 979,549,544.59 |
| Subtotal of cash outflows from investing activities | 1,705,970,191.74 | 1,207,606,282.70 |
| Net cash flows from investing activities | 470,814,847.87 | -591,280,886.00 |
| III. Cash flows from financing activities: | ||
| Cash receipts from absorbing investments | 292,692,500.00 | |
| Cash receipts from borrowings | 1,340,000,000.00 | |
| Other cash receipts related to financing activities | 1,022,395,689.59 | 573,060,328.06 |
| Subtotal of cash inflows from financing activities | 2,655,088,189.59 | 573,060,328.06 |
Cash payments for the repayment ofborrowings
| Cash payments for the repayment of borrowings | 1,140,000,000.00 | 199,092,500.00 |
| Cash payments for distribution of dividends or profits and for interest expenses | 968,772,142.42 | 768,979,698.33 |
| Other cash payments related to financing activities | 3,754,705,275.57 | 1,711,728.00 |
| Subtotal of cash outflows from financing activities | 5,863,477,417.99 | 969,783,926.33 |
| Net cash flows from financing activities | -3,208,389,228.40 | -396,723,598.27 |
| IV. Effect of foreign exchange rate changes on cash and cash equivalents | ||
| V. Net increase in cash and cash equivalents | -1,290,247,985.70 | -199,414,649.81 |
| Add: Opening balance of cash and cash equivalents | 1,793,207,457.49 | 996,678,169.38 |
| VI. Closing balance of cash and cash equivalents | 502,950,315.92 | 797,263,519.57 |
7. Consolidated Statement of Changes in Owners' Equity
Amount of this period
Unit: RMB
| Items | 2024 Interim | ||||||||||||||
| Equity Attributable to parent Company | Non-controlling interest | Total equity | |||||||||||||
| Share Capital | Other equity instruments | Capital reserve | Less: treasury shares | Other comprehensive income | Special reserve | Surplus reserve | General risk reserve | Undistributed profit | Others | Subtotal | |||||
| Preferred shares | Perpetual bonds | Others | |||||||||||||
| I. Balance at the end of prior year | 3,732,615,535.00 | 3,455,643,565.98 | 423,468,591.57 | 114,757,064.28 | 1,011,914,243.67 | 10,002,942,167.43 | 17,894,403,984.79 | 169,303,639.57 | 18,063,707,624.36 | ||||||
| Add: Cumulative changes of accounting policies | |||||||||||||||
| Error correction of prior period | |||||||||||||||
| Business combination under common control | |||||||||||||||
| Others | |||||||||||||||
| II. Balance at the beginning of current year | 3,732,615,535.00 | 3,455,643,565.98 | 423,468,591.57 | 114,757,064.28 | 1,011,914,243.67 | 10,002,942,167.43 | 17,894,403,984.79 | 169,303,639.57 | 18,063,707,624.36 | ||||||
| III. Current period increase (or less: decrease) | -257,260,587.84 | 11,950,085.21 | -170,919,517.87 | 587,889,291.25 | 147,759,100.33 | 47,416,166.39 | 195,175,266.72 | ||||||||
| (I) Total comprehensiv | -170,919 | 1,514,515,444.75 | 1,343,595,926.88 | 7,150,207.42 | 1,350,746,134.30 | ||||||||||
e income
| e income | ,517.87 | ||||||||||||||
| (II) Capital contributed or withdrawn by owners | -257,260,587.84 | 11,950,085.21 | -269,210,673.05 | 41,465,958.97 | -227,744,714.08 | ||||||||||
| 1. Ordinary shares contributed by owners | -577,662,900.00 | 577,662,900.00 | 35,103,055.78 | 612,765,955.78 | |||||||||||
| 2. Capital contributed by holders of other equity instruments | |||||||||||||||
| 3. Amount of share-based payment included in equity | 34,072,715.35 | 289,635,250.00 | -255,562,534.65 | -255,562,534.65 | |||||||||||
| 4. Others | -291,333,303.19 | 299,977,735.21 | -591,311,038.40 | 6,362,903.19 | -584,948,135.21 | ||||||||||
| (III) Profit distribution | -926,626,153.50 | -926,626,153.50 | -1,200,000.00 | -927,826,153.50 | |||||||||||
| 1. Appropriation of surplus reserve | |||||||||||||||
| 2. Appropriation of general risk reserve | |||||||||||||||
| 3. Appropriation of profit to owners | -926,626,153.50 | -926,626,153.50 | -1,200,000.00 | -927,826,153.50 | |||||||||||
| 4. Others |
(IV) Internalcarry-overwithin equity
| (IV) Internal carry-over within equity | |||||||||||||||
| 1. Transfer of capital reserve to capital | |||||||||||||||
| 2. Transfer of surplus reserve to capital | |||||||||||||||
| 3. Surplus reserve to cover losses | |||||||||||||||
| 4. Changes in defined benefit plan carried over to retained earnings | |||||||||||||||
| 5. Other comprehensive income carried over to retained earnings | |||||||||||||||
| 6. Others | |||||||||||||||
| (V) Special reserve | |||||||||||||||
| 1. Appropriation of current period | |||||||||||||||
| 2. Application of current period | |||||||||||||||
| (VI) Others | |||||||||||||||
| IV. Balance at | 3,732, | 3,198,38 | 435,418, | - | 1,011,91 | 10,590,8 | 18,042,16 | 216,719, | 18,258,882,8 |
the end ofcurrent period
| the end of current period | 615,535.00 | 2,978.14 | 676.78 | 56,162,453.59 | 4,243.67 | 31,458.68 | 3,085.12 | 805.96 | 91.08 |
Amount of Previous Period
Unit: RMB
| Items | 2023 Interim | ||||||||||||||
| Equity Attributable to parent Company | Non-controlling interest | Total equity | |||||||||||||
| Share Capital | Other equity instruments | Capital reserve | Less: treasury shares | Other comprehensive income | Special reserve | Surplus reserve | General risk reserve | Undistributed profit | Others | Subtotal | |||||
| Preferred shares | Perpetual bonds | Others | |||||||||||||
| I. Balance at the end of prior year | 3,590,869,465.00 | 409,544,970.41 | 282,602,695.98 | 330,022,975.53 | -8,543,048.33 | 863,523,059.01 | 8,133,336,242.88 | 12,941,310,409.42 | 177,989,781.40 | 13,119,300,190.82 | |||||
| Add: Cumulative changes of accounting policies | |||||||||||||||
| Error correction of prior period | |||||||||||||||
| Business combination under common control | |||||||||||||||
| Others | |||||||||||||||
| II. Balance at the beginning of current year | 3,590,869,465.00 | 409,544,970.41 | 282,602,695.98 | 330,022,975.53 | -8,543,048.33 | 863,523,059.01 | 8,133,336,242.88 | 12,941,310,409.42 | 177,989,781.40 | 13,119,300,190.82 | |||||
| III. Current | 1,371, | - | 87,217,2 | - | 94,145,9 | 677,788, | 952,088, | 6,872,65 | 958,961,093. | ||||||
periodincrease (orless: decrease)
| period increase (or less: decrease) | 403.00 | 4,472,830.40 | 28.12 | 96,038,360.00 | 44.13 | 338.45 | 443.30 | 0.41 | 71 | ||||||
| (I) Total comprehensive income | 94,145,944.13 | 1,394,760,848.85 | 1,488,906,792.98 | 19,733,666.88 | 1,508,640,459.86 | ||||||||||
| (II) Capital contributed or withdrawn by owners | 1,371,403.00 | -4,472,830.40 | 87,217,228.12 | -96,038,360.00 | 180,154,160.72 | 7,090,938.20 | 187,245,098.92 | ||||||||
| 1. Ordinary shares contributed by owners | -180,400.00 | -1,392,360.00 | -1,572,760.00 | 7,090,938.20 | 7,090,938.20 | ||||||||||
| 2. Capital contributed by holders of other equity instruments | 1,551,803.00 | -4,472,830.40 | 33,834,551.10 | 30,913,523.70 | 0.00 | 30,913,523.70 | |||||||||
| 3. Amount of share-based payment included in equity | 39,079,881.17 | 39,079,881.17 | 0.00 | 39,079,881.17 | |||||||||||
| 4. Others | 15,695,155.85 | -94,465,600.00 | 110,160,755.85 | 0.00 | 110,160,755.85 | ||||||||||
| (III) Profit distribution | -716,972,510.40 | -716,972,510.40 | -19,951,954.67 | -736,924,465.07 | |||||||||||
| 1. Appropriation of surplus reserve | 0.00 | 0.00 | |||||||||||||
| 2. Appropriation of general risk reserve | 0.00 | 0.00 |
3.Appropriationof profit toowners
| 3. Appropriation of profit to owners | -716,972,510.40 | -716,972,510.40 | -19,951,954.67 | -736,924,465.07 | |||||||||||
| 4. Others | |||||||||||||||
| (IV) Internal carry-over within equity | |||||||||||||||
| 1. Transfer of capital reserve to capital | |||||||||||||||
| 2. Transfer of surplus reserve to capital | |||||||||||||||
| 3. Surplus reserve to cover losses | |||||||||||||||
| 4. Changes in defined benefit plan carried over to retained earnings | |||||||||||||||
| 5. Other comprehensive income carried over to retained earnings | |||||||||||||||
| 6. Others | |||||||||||||||
| (V) Special reserve | |||||||||||||||
| 1. Appropriation of current period | |||||||||||||||
| 2. Application |
of currentperiod
| of current period | |||||||||||||||
| (VI) Others | |||||||||||||||
| IV. Balance at the end of current period | 3,592,240,868.00 | 405,072,140.01 | 369,819,924.10 | 233,984,615.53 | 85,602,895.80 | 863,523,059.01 | 8,811,124,581.33 | 13,893,398,852.72 | 184,862,431.81 | 14,078,261,284.53 |
8. Statement of Changes in Owners' Equity of the Parent Company
Amount of this period
Unit: RMB
| Items | 2024 Interim | |||||||||||
| Share Capital | Other equity instruments | Capital reserve | Less: treasury shares | Other comprehensive income | Special reserve | Surplus reserve | Undistributed profit | Others | Total equity | |||
| Preferred shares | Perpetual bonds | Others | ||||||||||
| I. Balance at the end of prior year | 3,732,615,535.00 | 4,351,276,453.48 | 423,468,591.57 | 883,822,071.35 | 1,768,214,110.04 | 10,312,459,578.30 | ||||||
| Add: Cumulative changes of accounting policies | ||||||||||||
| Error correction of prior period | ||||||||||||
| Others | ||||||||||||
| II. Balance at the beginning of current year | 3,732,615,535.00 | 4,351,276,453.48 | 423,468,591.57 | 883,822,071.35 | 1,768,214,110.04 | 10,312,459,578.30 | ||||||
| III. Current period increase (or less: decrease) | -250,897,684.65 | 11,950,085.21 | 88,624,662.60 | -174,223,107.26 | ||||||||
(I) Totalcomprehensiveincome
| (I) Total comprehensive income | 1,015,250,816.10 | 1,015,250,816.10 | ||||||||||
| (II) Capital contributed or withdrawn by owners | -250,897,684.65 | 11,950,085.21 | -262,847,769.86 | |||||||||
| 1. Ordinary shares contributed by owners | -577,662,900.00 | 577,662,900.00 | ||||||||||
| 2. Capital contributed by holders of other equity instruments | ||||||||||||
| 3. Amount of share-based payment included in equity | 34,072,715.35 | 289,635,250.00 | -255,562,534.65 | |||||||||
| 4. Others | -284,970,400.00 | 299,977,735.21 | -584,948,135.21 | |||||||||
| (III) Profit distribution | -926,626,153.50 | -926,626,153.50 | ||||||||||
| 1. Appropriation of surplus reserve | ||||||||||||
| 2. Appropriation of profit to owners | -926,626,153.50 | -926,626,153.50 | ||||||||||
| 3. Others | ||||||||||||
| (IV) Internal carry-over |
within equity
| within equity | ||||||||||||
| 1.Transfer of capital reserve to capital | ||||||||||||
| 2.Transfer of surplus reserve to capital | ||||||||||||
| 3.Surplus reserve to cover losses | ||||||||||||
| 4. Changes in defined benefit plan carried over to retained earnings | ||||||||||||
| 5. Other comprehensive income carried over to retained earnings | ||||||||||||
| 6. Others | ||||||||||||
| (V) Special reserve | ||||||||||||
| 1. Appropriation of current period | ||||||||||||
| 2. Application of current period | ||||||||||||
| (VI) Others | ||||||||||||
| IV. Balance at the end of current period | 3,732,615,535.00 | 4,100,378,768.83 | 435,418,676.78 | 883,822,071.35 | 1,856,838,772.64 | 10,138,236,471.04 |
Amount of Previous Period
Unit: RMB
| Items | 2023 Interim | |||||||||
| Share | Other equity instruments | Capital | Other | Spec | Surplus | Othe | Total equity | |||
Capital
| Capital | Preferred shares | Perpetual bonds | Others | reserve | Less: treasury shares | comprehensive income | ial reserve | reserve | Undistributed profit | rs | ||
| I. Balance at the end of prior year | 3,590,869,465.00 | 409,544,970.41 | 1,180,826,355.13 | 330,022,975.53 | 735,430,886.69 | 1,335,689,278.94 | 6,922,337,980.64 | |||||
| Add: Cumulative changes of accounting policies | ||||||||||||
| Error correction of prior period | ||||||||||||
| Others | ||||||||||||
| II. Balance at the beginning of current year | 3,590,869,465.00 | 409,544,970.41 | 1,180,826,355.13 | 330,022,975.53 | 735,430,886.69 | 1,335,689,278.94 | 6,922,337,980.64 | |||||
| III. Current period increase (or less: decrease) | 1,371,403.00 | -4,472,830.40 | 79,575,409.66 | -96,038,360.00 | -309,608,618.46 | -137,096,276.20 | ||||||
| (I) Total comprehensive income | 407,363,891.94 | 407,363,891.94 | ||||||||||
| (II) Capital contributed or withdrawn by owners | 1,371,403.00 | -4,472,830.40 | 79,575,409.66 | -96,038,360.00 | 172,512,342.26 | |||||||
| 1. Ordinary shares contributed by owners | -180,400.00 | -1,392,360.00 | -1,572,760.00 | |||||||||
| 2. Capital contributed by holders of | 1,551,803.00 | -4,472,830.40 | 33,834,551.10 | 30,913,523.70 |
other equityinstruments
| other equity instruments | ||||||||||||
| 3. Amount of share-based payment included in equity | 39,079,881.17 | 39,079,881.17 | ||||||||||
| 4. Others | 8,053,337.39 | -94,465,600.00 | 102,518,937.39 | |||||||||
| (III) Profit distribution | -716,972,510.40 | -716,972,510.40 | ||||||||||
| 1. Appropriation of surplus reserve | ||||||||||||
| 2. Appropriation of profit to owners | -716,972,510.40 | -716,972,510.40 | ||||||||||
| 3. Others | ||||||||||||
| (IV) Internal carry-over within equity | ||||||||||||
| 1.Transfer of capital reserve to capital | ||||||||||||
| 2.Transfer of surplus reserve to capital | ||||||||||||
| 3.Surplus reserve to cover losses | ||||||||||||
| 4. Changes in defined |
benefit plancarried overto retainedearnings
| benefit plan carried over to retained earnings | ||||||||||||
| 5. Other comprehensive income carried over to retained earnings | ||||||||||||
| 6. Others | ||||||||||||
| (V) Special reserve | ||||||||||||
| 1. Appropriation of current period | ||||||||||||
| 2. Application of current period | ||||||||||||
| (VI) Others | ||||||||||||
| IV. Balance at the end of current period | 3,592,240,868.00 | 405,072,140.01 | 1,260,401,764.79 | 233,984,615.53 | 735,430,886.69 | 1,026,080,660.48 | 6,785,241,704.44 |
III. Company profileThe Company was established by the original Sanhua Fuji Koki Co., Ltd. The Company currently holds abusiness license with a unified social credit code of 913300006096907427 registered and issued by ZhejiangAdministration of Industry and Commerce, with headquarter in Shaoxing City, Zhejiang Province. The registeredcapital of 3,732,615,535.00 yuan, total share of 3,732,615,535 shares (each with par value of one yuan). TheCompany’s shares were listed at Shenzhen Stock Exchange.
The Company operates in the machinery manufacturing industry. Business scope includes production andmarketing of Service Valve, Electronic Expansion valve, Drainage Pump, Solenoid Valve, One-way Valve,Compressor Parts, Pressure Pipeline Components, Electromechanical Hydraulic Control Pump and otherelectromechanical hydraulic control components, undertaking services of inspection, test and analysis ofrefrigeration accessories, and engaging in import and export business. Main products include control componentsand parts of household appliances and automobile A/C.The Company operates in the machinery manufacturing industry, main business activities include researchand development, production and sales of refrigeration and air-conditioning appliances and automotivecomponents.
This financial statement has been approved for external disclosure by the 26th extraordinary board ofdirectors of the company on August 28, 2024.
IV. Preparation basis of the financial statements
1. Preparation basis
The financial statements have been prepared on the basis of going concern.
2. Going concern
The Company has no events or conditions that may cast significant doubts upon the Company’s ability tocontinue as a going concern within the 12 months after the balance sheet date.V. Significant accounting policies and estimates
Tips on specific accounting policies and accounting estimates:
The Company has set up accounting policies and estimates on transactions or events such as impairment offinancial instruments, inventories, depreciation of fixed assets, construction in progress, intangible assets, revenuerecognition, share-based payment,etc., based on the Company’s actual production and operation features.
1.Statement of compliance with China Accounting Standards for Business Enterprises
The financial statements have been prepared in accordance with the requirements of China AccountingStandards for Business Enterprises (CASBEs), and present truly and completely the financial position, results ofoperations and cash flows of the Company.
2. Accounting period
The accounting year of the Company runs from January 1 to December 31 under the Gregorian calendar.
3. Operating cycle
The Company has a relatively short operating cycle for its business, an asset or a liability is classified ascurrent if it is expected to be realized or due within 12 months.
4. Functional currency
The functional currency of the Company and its domestic subsidiaries is Renminbi (RMB) Yuan, while thefunctional currency of subsidiaries engaged in overseas operations including SANHUA AWECO ApplianceSystems GmbH、Sanhua International Inc etc. is the currency of the primary economic environment in whichthey operate.
5. Determination method and basis for selection of materiality
√ Applicable □Not Applicable
| items | Materiality criteria |
| Significant accounts receivable with provision for bad debts made on an individual basis | Individual accruals accounting for more than 5% of the total bad debt provision for all types of accounts receivable and amounting to more than 30 million yuan are considered significant. |
| Significant other receivables with provision for bad debts made on an individual basis | Individual accruals accounting for 5% or more of the total bad debt provision for each category of other receivables and amounting to more than 20 million yuan are considered significant. |
| Significant construction in progress | The budget for a single project is more than 500 million yuan. |
| Significant cash flows from investing activities | A single investing activity that accounts for more than 5% of the total cash inflows or outflows related to the receipt or disbursement of cash related to investing activities and is greater than 50 million yuan is considered to be significant. |
| Significant subsidiaries, not wholly-owned subsidiaries | Subsidiaries with total assets/total revenue/profit before tax in excess of 15% of the group’s total assets/total revenue/profit before tax are identified as significant subsidiaries/significant not wholly-owned subsidiaries. |
| Significant joint ventures, associates and joint operations | Joint ventures or associates with total assets exceeding 1 billion yuan are considered significant. |
| Significant commitments | Project matters in which the Company is involved in fundraising are considered significant. |
| Significant events subsequent to the balance sheet date | Distribution of profit after the balance sheet date, significant financing, etc. |
6. Accounting treatments of business combination under and not under common control
1. Accounting treatment of business combination under common control
Assets and liabilities arising from business combination are measured at carrying amount of the combinedparty included in the consolidated financial statements of the ultimate controlling party at the combination date.Difference between carrying amount of the equity of the combined party included in the consolidated financialstatements of the ultimate controlling party and that of the combination consideration or total par value of sharesissued is adjusted to capital reserve, if the balance of capital reserve is insufficient to offset, any excess is adjustedto retained earnings.
2. Accounting treatment of business combination not under common control
When combination cost is in excess of the fair value share of identifiable net assets obtained from theacquiree at the acquisition date, the excess is recognized as goodwill; If the combination cost is less than the fairvalue share of identifiable net assets obtained from the acquiree, the fair value of the identifiable assets, liabilities,and contingent liabilities obtained from the acquiree, as well as the measurement of the combination cost, need tobe reviewed at first. After review, if the combination cost is still less than the fair value share of the identifiablenet assets obtained from the acquiree , the difference is recognized in profit or loss.
7. Judgement criteria for control and compilation method of consolidated financial statements
1.Judgement of control
Having the power over the invested party, enjoying variable returns through participating in related activitiesof the invested party, and having the ability to use the power over the invested party to influence its variable returnamount, is recognized as control.
2. Compilation method of consolidated financial statements
The parent company brings all its controlled subsidiaries into the consolidation scope. The consolidatedfinancial statements are compiled by the parent company according to “CASBE 33 – Consolidated FinancialStatements”, based on relevant information and the financial statements of the parent company and itssubsidiaries.
8. Recognition criteria of cash and cash equivalents
Cash as presented in cash flow statement refers to cash on hand and deposit on demand for payment. Cashequivalents refer to short-term, highly liquid investments that can be readily converted to cash and that are subjectto an insignificant risk of changes in value.
9. Foreign currency transactions and foreign currency statement translation
1. Translation of transactions denominated in foreign currency
Transactions denominated in foreign currency are translated into RMB yuan at the spot exchange rate or theapproximate exchange rate similar to the spot exchange rate at the transaction date at initial recognition. At thebalance sheet date, monetary items denominated in foreign currency are translated at the spot exchange rate at thebalance sheet date with difference, except for those arising from the principal and interest of exclusive borrowingseligible for capitalization, included in profit or loss; non-cash items carried at historical costs are translated at thespot exchange rate at the transaction date, with its RMB amount unchanged; non-cash items carried at fair value inforeign currency are translated at the spot exchange rate at the date when the fair value was determined, withdifference included in profit or loss or other comprehensive income.
2. Translation of financial statements measured in foreign currency
The assets and liabilities in the balance sheet are translated at the spot rate at the balance sheet date; theequity items, other than undistributed profit, are translated at the spot rate at the transaction date; the revenues andexpenses in the income statement are translated at the approximate exchange rate similar to the systematically andrationally determined spot exchange rate at the transaction date. The difference arising from foreign currencytranslation is included in other comprehensive income.
10．Financial instruments
1. Classification of financial assets and financial liabilities
Financial assets are classified into the following three categories when initially recognized: (1) financialassets at amortized cost; (2) financial assets at fair value through other comprehensive income; (3) financial assets
at fair value through profit or loss.Financial liabilities are classified into the following four categories when initially recognized: (1) financialliabilities at fair value through profit or loss; (2) financial liabilities that arise when a transfer of a financial assetdoes not qualify for derecognition or when the continuing involvement approach applies; (3) financial guaranteecontracts not fall within the above categories (1) and (2), and commitments to provide a loan at a below-marketinterest rate, which do not fall within the above category (1); (4) financial liabilities at amortized cost.
2. Recognition criteria, measurement method and derecognition condition of financial assets and financialliabilities
(1) Recognition criteria and measurement method of financial assets and financial liabilities
When the Company becomes a party to a financial instrument, it is recognized as a financial asset orfinancial liability. The financial assets and financial liabilities initially recognized by the Company are measuredat fair value; for the financial assets and liabilities at fair value through profit or loss, the transaction expensesthereof are directly included in profit or loss; for other categories of financial assets and financial liabilities, thetransaction expenses thereof are included into the initially recognized amount. However, at initial recognition, foraccounts receivable that do not contain a significant financing component or in circumstances where the Companydoes not consider the financing components in contracts within one year, the Company measures the transactionprice in accordance with “CASBE 14 – Revenues”.
(2) Subsequent measurement of financial assets
1) Financial assets measured at amortized costs
The Company measures its financial assets at the amortized costs using effective interest method. Gains orlosses on financial assets that are measured at amortized cost and are not part of hedging relationships shall beincluded into profit or loss when the financial assets are derecognized, reclassified, through the amortizationprocess or in order to recognize impairment gains or losses.
2) Debt instrument investments at fair value through other comprehensive income
The Company measures its debt instrument investments at fair value. Interests, impairment losses or gains,and gains and losses on foreign exchange that calculated using effective interest method shall be included intoprofit or loss, while other gains or losses are included into other comprehensive income. Accumulated gains orlosses that initially recognized as other comprehensive income should be transferred out into profit or loss whenthe financial assets are derecognized.
3) Equity instrument investments at fair value through other comprehensive income
The Company measures its equity instrument investments at fair value. Dividends obtained (other than thoseas part of investment cost recovery) shall be included into profit or loss, while other gains or losses are includedinto other comprehensive income. Accumulated gains or losses that initially recognized as other comprehensiveincome should be transferred out into retained earnings when the financial assets are derecognized.
4) Financial assets at fair value through profit or loss
The Company measures its financial assets at fair value. Gains or losses arising from changes in fair value(including interests and dividends) shall be included into profit or loss, except for financial assets that are part ofhedging relationships.
(3) Subsequent measurement of financial liabilities
1) Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include held-for-trading financial liabilities (includingderivatives that are liabilities) and financial liabilities designated as at fair value through profit or loss. TheCompany measures such kind of liabilities at fair value. The amount of changes in the fair value of the financialliabilities that are attributable to changes in the Company’s own credit risk shall be included into other
comprehensive income, unless such treatment would create or enlarge accounting mismatches in profit or loss.Other gains or losses on those financial liabilities (including interests, changes in fair value that are attributable toreasons other than changes in the Company’s own credit risk) shall be included into profit or loss, except forfinancial liabilities that are part of hedging relationships. Accumulated gains or losses that originally recognized asother comprehensive income should be transferred out into retained earnings when the financial liabilities arederecognized.
2) Financial liabilities that arise when a transfer of a financial asset does not qualify for derecognition orwhen the continuing involvement approach appliesThe Company measures its financial liabilities in accordance with “CASBE 23 – Transfer of FinancialAssets”.
3) Financial guarantee contracts not fall within the above categories 1) and 2), and commitments to provide aloan at a below-market interest rate, which do not fall within the above category 1)
The Company measures its financial liabilities at the higher of: a. the amount of loss allowances inaccordance with impairment requirements of financial instruments; b. the amount initially recognized less theamount of accumulated amortization recognized in accordance with “CASBE 14 – Revenues”.
4) Financial liabilities at amortized cost
The Company measures its financial liabilities at amortized cost using effective interest method. Gains orlosses on financial liabilities that are measured at amortized cost and are not part of hedging relationships shall beincluded into profit or loss when the financial liabilities are derecognized and amortized using effective interestmethod.
(4) Derecognition of financial assets and financial liabilities
1) Financial assets are derecognized when:
a. the contractual rights to the cash flows from the financial assets expire;
b. the financial assets have been transferred and the transfer qualifies for derecognition in accordance with“CASBE 23 – Transfer of Financial Assets”.
2) Only when the underlying present obligations of a financial liability are relieved totally or partly may thefinancial liability be derecognized accordingly.
3. Recognition criteria and measurement method of financial assets transfer
Where the Company has transferred substantially all of the risks and rewards related to the ownership of thefinancial asset, it derecognizes the financial asset, and any right or liability arising from such transfer isrecognized independently as an asset or a liability. If it retained substantially all of the risks and rewards related tothe ownership of the financial asset, it continues recognizing the financial asset. Where the Company does nottransfer or retain substantially all of the risks and rewards related to the ownership of a financial asset, it is dealtwith according to the circumstances as follows respectively: (1) if the Company does not retain its control over thefinancial asset, it derecognizes the financial asset, and any right or liability arising from such transfer isrecognized independently as an asset or a liability; (2) if the Company retains its control over the financial asset,according to the extent of its continuing involvement in the transferred financial asset, it recognizes the relatedfinancial asset and recognizes the relevant liability accordingly.
If the transfer of an entire financial asset satisfies the conditions for derecognition, the difference between theamounts of the following two items is included in profit or loss: (1) the carrying amount of the transferredfinancial asset as of the date of derecognition; (2) the sum of consideration received from the transfer of thefinancial asset, and the accumulative amount of the changes of the fair value originally included in othercomprehensive income proportionate to the transferred financial asset (financial assets transferred refer to debtinstrument investments at fair value through other comprehensive income). If the transfer of financial asset
partially satisfies the conditions to derecognition, the entire carrying amount of the transferred financial asset is,between the portion which is derecognized and the portion which is not, apportioned according to their respectiverelative fair value, and the difference between the amounts of the following two items is included into profit orloss: (1) the carrying amount of the portion which is derecognized; (2) the sum of consideration of the portionwhich is derecognized, and the portion of the accumulative amount of the changes in the fair value originallyincluded in other comprehensive income which is corresponding to the portion which is derecognized (financialassets transferred refer to debt instrument investments at fair value through other comprehensive income).
4. Fair value determination method of financial assets and liabilities
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficientdata and information are available to measure fair value. The inputs to valuation techniques used to measure fairvalue are arranged in the following hierarchy and used accordingly:
(1) Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that theCompany can access at the measurement date.
(2) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the assetor liability, either directly or indirectly. Level 2 inputs include: quoted prices for similar assets or liabilities inactive markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs otherthan quoted prices that are observable for the asset or liability, for example, interest rates and yield curvesobservable at commonly quoted intervals; market-corroborated inputs;
(3) Level 3 inputs are unobservable inputs for the asset or liability. Level 3 inputs include interest rate that isnot observable and cannot be corroborated by observable market data at commonly quoted intervals, historicalvolatility, future cash flows to be paid to fulfill the disposal obligation assumed in business combination, financialforecast developed using the Companys own data, etc.
5. Impairment of financial instruments
The Company, on the basis of expected credit loss, recognizes loss allowances of financial assets atamortized cost, debt instrument investments at fair value through other comprehensive income, contract assets,leases receivable, loan commitments other than financial liabilities at fair value through profit or loss, financialguarantee contracts not belong to financial liabilities at fair value through profit or loss or financial liabilities thatarise when a transfer of a financial asset does not qualify for derecognition or when the continuing involvementapproach applies.
Expected credit losses refer to the weighted average of credit losses with the respective risks of a defaultoccurring as the weights. Credit loss refers to the difference between all contractual cash flows that are due to theCompany in accordance with the contract and all the cash flows that the Company expects to receive (i.e. all cashshortfalls), discounted at the original effective interest rate. Among which, purchased or originated credit-impairedfinancial assets are discounted at the credit-adjusted effective interest rate.
At the balance sheet date, the Company shall only recognize the cumulative changes in the lifetime expectedcredit losses since initial recognition as a loss allowance for purchased or originated credit-impaired financialassets.
For leases receivable, and accounts receivable and contract assets resulting from transactions regulated in“CASBE 14 – Revenues”, the Company chooses simplified approach to measure the loss allowance at an amountequal to lifetime expected credit losses.
For financial assets other than the above, on each balance sheet date, the Company shall assess whether thecredit risk on the financial instrument has increased significantly since initial recognition. The Company shallmeasure the loss allowance for the financial instrument at an amount equal to the lifetime expected credit losses ifthe credit risk on that financial instrument has increased significantly since initial recognition; otherwise, the
Company shall measure the loss allowance for that financial instrument at an amount equal to 12-month expectedcredit loss.Considering reasonable and supportable forward-looking information, the Company compares the risk of adefault occurring on the financial instrument as at the balance sheet date with the risk of a default occurring on thefinancial instrument as at the date of initial recognition, so as to assess whether the credit risk on the financialinstrument has increased significantly since initial recognition.The Company may assume that the credit risk on a financial instrument has not increased significantly sinceinitial recognition if the financial instrument is determined to have relatively low credit risk at the balance sheetdate.The Company shall estimate expected credit risk and measure expected credit losses on an individual or acollective basis. When the Company adopts the collective basis, financial instruments are grouped with similarcredit risk features.
The Company shall remeasure expected credit loss on each balance sheet date, and increased or reversedamounts of loss allowance arising therefrom shall be included into profit or loss as impairment losses or gains. Fora financial asset measured at amortized cost, the loss allowance reduces the carrying amount of such financialasset presented in the balance sheet; for a debt investment measured at fair value through other comprehensiveincome, the loss allowance shall be recognized in other comprehensive income and shall not reduce the carryingamount of such financial asset.
6. Offsetting financial assets and financial liabilities
Financial assets and financial liabilities are presented separately in the balance sheet and are not offset.However, the Company offsets a financial asset and a financial liability and presents the net amount in the balancesheet when, and only when, the Company: (1) currently has a legally enforceable right to set off the recognizedamounts; and (2) intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.
For a transfer of a financial asset that does not qualify for derecognition, the Company does not offset thetransferred asset and the associated liability.
Recognition criteria and accrual method for expected credit losses of receivables and contract assets
1. Receivables and contract assets with expected credit losses measured on a collective basis using similarcredit risk features
| Categories | Basis for determination of portfolio | Method for measuring expected credit loss |
| Notes receivable-Bank acceptance receivable | Type of notes | Based on historical credit loss experience, the current situation and the forecast of future economic conditions, the Company calculates expected credit loss through exposure at default and lifetime expected credit loss rate. |
| Notes receivable -Trade acceptance receivable | ||
| Notes receivable -finance company | ||
| Accounts receivable – Portfolio grouped with aging | Aging | Based on historical credit loss experience, the current situation and the forecast of future economic conditions, the Company prepares the comparison table of accounts receivable ages and lifetime expected credit loss rate, so as to calculate expected credit loss. |
| Other receivable – Portfolio grouped with aging | Aging | Based on historical credit loss experience, the current situation and the forecast of future economic conditions, the Company prepares the comparison table of other receivable ages and lifetime expected credit loss rate , so as to calculate expected credit loss. |
2.Accounts receivable – comparison table of aging and lifetime expected credit loss rate of portfolio grouped
with aging.
| Aging | Expected credit loss rate (%) |
| Within 1 year | 5 |
| 1-2 years | 10 |
| 2-3 years | 30 |
| Over 3 years | 50 |
Aging of accounts receivable/other receivables/… are calculated from the month when such receivables areaccrued.
3.Recognition criteria for receivables and contract assets with expected credit losses measured on anindividual basis
For receivables and contract assets whose credit risk is significantly different from that of portfolios, theCompany accrues expected credit losses on an individual basis.
11．Inventories
1. Classification of inventories
Inventories include finished goods or goods held for sale in the ordinary course of business, work in processin the process of production, materials or supplies etc., to be consumed in the production process or in therendering of services.
2. Accounting method for dispatching inventories
Inventories dispatched from storage are accounted for with weighted average method or specificidentification method at the end of each month.
3. Basis for determining net realizable value
At the balance sheet date, inventories are measured at the lower of cost or net realizable value; provisions forinventory write-down are made on the excess of its cost over the net realizable value.
4. Inventory system
The perpetual inventory system is adopted.
5. Amortization method of low-value consumables and packages
Low-value consumables and packages are amortized with one-off method at the time of purchase or receipt.12．Long-term equity investments
1. Judgment of joint control and significant influence
Joint control is the contractually agreed sharing of control of an arrangement, which exists only whendecisions about the relevant activities require the unanimous consent of the parties sharing control. Significantinfluence is the power to participate in the financial and operating policy decisions of the investee but is notcontrol or joint control of these policies.
2. Determination of investment cost
(1) For business combination under common control, if the consideration of the combining party is that itmakes payment in cash, transfers non-cash assets, assumes its liabilities or issues equity securities, on the date ofcombination, it regards the share of the carrying amount of the equity of the combined party included theconsolidated financial statements of the ultimate controlling party as the initial cost of the investment. Thedifference between the initial cost of the long-term equity investments and the carrying amount of the combinationconsideration paid or the par value of shares issued offsets capital reserve; if the balance of capital reserve is
insufficient to offset, any excess is adjusted to retained earnings.
(2) For business combination not under common control, investment cost is initially recognized at theacquisition-date fair value of considerations paid.
(3) Long-term equity investments obtained through ways other than business combination, the initial cost ofa long-term equity investment obtained by making payment in cash is the purchase cost which is actually paid.
3. Subsequent measurement and recognition method of profit or loss
For long-term equity investments with control relationship, it is accounted for with cost method; for long-term equity investments of associated enterprises and cooperative enterprises, it is accounted for with equitymethod.
13. Investment property
Measurement model of investment property
Cost method measurement
Depreciation or amortization method
1. Investment property includes land use right of leased-out property and of property held for capitalappreciation and buildings that have been leased out.
2. The initial measurement of investment property is based on its cost, and subsequent measurement is madeusing the cost model, the depreciation or amortization method is the same as that of fixed assets and intangibleassets.
14. Fixed assets
（1）Recognition principles of fixed assets
Fixed assets are tangible assets held for use in the production of goods or rendering of services, for rental toothers, or for administrative purposes, and expected to be used during more than one accounting year. Fixed assetsare recognized if, and only if, it is probable that future economic benefits associated with the assets will flow tothe Company and the cost of the assets can be measured reliably.
（2）Depreciation method of different categories of fixed assets
| Categories | Depreciation method | Useful life (years) | Estimated residual value proportion (%) | Annual depreciation rate (%) |
| Buildings and structures | Straight-line method | 20-30 | 0-5 | 3.17～5.00 |
| Machinery and equipment | Straight-line method | 5-12 | 0-5 | 7.92～20.00 |
| Measurement analysis equipment | Straight-line method | 5-10 | 0-5 | 9.50～19.00 |
| Vehicle | Straight-line method | 5-8 | 0-5 | 11.88～20.00 |
| Office equipment and others | Straight-line method | 5-8 | 0-5 | 11.88～20.00 |
15．Construction in progress
1. Construction in progress is recognized if, and only if, it is probable that future economic benefitsassociated with the item will flow to the Company, and the cost of the item can be measured reliably. Constructionin progress is measured at the actual cost incurred to reach its designed usable conditions.
2. Construction in progress is transferred into fixed assets at its actual cost when it reaches the designedusable conditions. When the auditing of the construction in progress was not finished while reaching the designedusable conditions, it is transferred to fixed assets using estimated value first, and then adjusted accordingly whenthe actual cost is settled, but the accumulated depreciation is not to be adjusted retrospectively.
| Categories | Standards and time point of transferring construction in progress to fixed assets |
| Machinery | After installation and commissioning, it meets the standard of production |
| Houses and buildings | After installation and commissioning, the construction is completed and accepted to meet the commissioning standards |
16．Borrowing costs
Where the borrowing costs incurred to the Company can be directly attributable to the acquisition andconstruction or production of assets eligible for capitalization, it is capitalized and included in the costs of relevantassets; other borrowing costs are recognized as expenses on the basis of the actual amount incurred, and areincluded in profit or loss.17．Intangible assets
(1) Service life and its basis for determination, estimate, amortization method or review procedure
1.Intangible assets include land use right, land ownership, application software and intellectual property etc.The initial measurement of intangible assets is based on its cost.
2. For intangible assets with finite useful lives, their amortization amounts are amortized within their usefullives systematically and reasonably, if it is unable to determine the expected realization pattern reliably, intangibleassets are amortized by the straight-line method with details .as follows:
| Items | Useful life and determination basis | Amortization method |
| Land use rights | fifty years,Contractual service life | Straight-line method |
| Application software | 1-4,Useful life | Straight-line method |
| Intellectual property | 5-10,Useful life | Straight-line method |
Intangible assets with indefinite useful life are not amortized, but their useful life is reviewed annually. Theindefinite land ownership held by overseas subsidiaries abroad is not amortized due to uncertain service life.
3.R&D costs
The collection of R&D costs is directly related to the R&D activities of enterprises, including R&Dpersonnel salaries, R&D materials, depreciation and amortization expenses, technical cooperation fees, evaluationand testing fees, etc. The costs incurred during the research phase of internal R&D projects are recognized in thecurrent period's profit and loss when incurred. Expenditures on the research phase of an internal project arerecognized as profit or loss when they are incurred. An intangible asset arising from the development phase of aninternal project is recognized if the Company can meet relevant conditions.
18．Impairment of part of long-term assetsFor long-term assets such as long-term equity investments, investment property at cost model, fixed assets,construction in progress, right-of-use assets, intangible assets with finite useful lives, etc., if at the balance sheetdate there is indication of impairment, the recoverable amount is to be estimated. For goodwill recognized inbusiness combination and intangible assets with indefinite useful lives, no matter whether there is indication ofimpairment, impairment test is performed annually. Impairment test on goodwill is performed on related assetgroup or asset group portfolio.When the recoverable amount of such long-term assets is lower than their carrying amount, the difference isrecognized as provision for assets impairment through profit or loss.19．Long-term prepaymentsLong-term prepayments are expenses that have been recognized but with amortization period over one year(excluding one year). They are recorded with actual cost, and evenly amortized within the beneficiary period orstipulated period. If items of long-term prepayments fail to be beneficial to the following accounting periods,residual values of such items are included in profit or loss.20．Employee benefits
1. Short-term employee benefits
The Company recognizes, in the accounting period in which an employee provides service, short-termemployee benefits actually incurred as liabilities, with a corresponding charge to profit or loss or the cost of arelevant asset.
2. Post-employment benefits
Post-employment benefit plans are mainly classified as defined contribution plans. During the accountingperiod employees provide services, according the defined contribution plan, the amount payable is recognized asliabilities and included in the current profits and losses or relevant asset costs.
3. Termination benefits
Termination benefits provided to employees are recognized as an employee benefit liability, with acorresponding charge to profit or loss at the earlier of the following dates: (1) when the Company cannotunilaterally withdraw the offer of termination benefits because of an employment termination plan or acurtailment proposal; (2) when the Company recognizes cost or expenses related to a restructuring that involvesthe payment of termination benefits.
4. Other long-term employee benefits
When other long-term employee benefits provided to the employees satisfied the conditions for classifying asa defined contribution plan, those benefits are accounted for in accordance with the requirements relating todefined contribution plan, while other benefits are accounted for in accordance with the requirements relating todefined benefit plan. The Company recognizes the cost of employee benefits arising from other long-termemployee benefits as the followings: (1) service cost; (2) net interest on the net liability or net assets of other long-term employee benefits; and (3) changes as a result of remeasurement of the net liability or net assets of otherlong-term employee benefits. As a practical expedient, the net total of the aforesaid amounts is recognized inprofit or loss or included in the cost of a relevant asset.
21．Provisions
1. Provisions are recognized when fulfilling the present obligations arising from contingencies such asproviding guarantee for other parties, litigation, products quality guarantee, onerous contract, etc., may cause theoutflow of the economic benefit and such obligations can be reliably measured.
2. The initial measurement of provisions is based on the best estimated expenditures required in fulfillingthe present obligations, and its carrying amount is reviewed at the balance sheet date.22．Share-based payment
1. Types of share-based payment
Share-based payment consists of equity-settled share-based payment and cash-settled share-based payment.
2. Accounting treatment for settlements, modifications and cancellations of share-based payment terms andconditions
(1) Equity-settled share-based payment
For equity-settled share-based payment transaction with employees, if the equity instruments granted vestimmediately, the fair value of those equity instruments is measured at grant date and recognized as transactioncost or expense, with a corresponding adjustment in capital reserve; if the equity instruments granted do not vestuntil the counterparty completes a specified period of service, at the balance sheet date within the vesting period,the fair value of those equity instruments measured at grant date based on the best estimate of the number ofequity instruments expected to vest is recognized as transaction cost or expense, with a corresponding adjustmentin capital reserve.
For equity-settled share-based payment transaction with parties other than employees, if the fair value of theservices received can be measured reliably, the fair value is measured at the date the Company receives theservice; if the fair value of the services received cannot be measured reliably, but that of equity instruments can bemeasured reliably, the fair value of the equity instruments granted measured at the date the Company receives theservice is referred to, and recognized as transaction cost or expense, with a corresponding increase in equity.
(2) Cash-settled share-based payment
For cash-settled share-based payment transactions with employees, if share appreciation rights vestimmediately, the fair value of the liability incurred as the acquisition of goods or services is measured at grant dateand recognized as transaction cost or expense, with a corresponding increase in liabilities; if share appreciationrights do not vest until the employees have completed a specified period of service, the liability is measured, ateach balance sheet date until settled, at the fair value of the share appreciation rights measured at grant date basedon the best estimate of the number of share appreciation right expected to vest.
(3) Modifications and cancellations of share-based payment terms and conditions
If the modification increases the fair value of the equity instruments granted, measured immediately beforeand after the modification, the Company includes the incremental fair value granted in the measurement of theamount recognized for services received as consideration for the equity instruments granted; similarly, if themodification increases the number of equity instruments granted, the Company includes the fair value of theadditional equity instruments granted, measured at the date of the modification, in the measurement of the amountrecognized for services received as consideration for the equity instruments granted; if the Company modifies thevesting conditions in a manner that is beneficial to the employee, the Company takes the modified vestingconditions into account.
If the modification reduces the fair value of the equity instruments granted, measured immediately before
and after the modification, the Company does not take into account that decrease in fair value and continue tomeasure the amount recognized for services received as consideration for the equity instruments based on thegrant date fair value of the equity instruments granted; if the modification reduces the number of equityinstruments granted to an employee, that reduction is accounted for as a cancellation of that portion of the grant; ifthe Company modifies the vesting conditions in a manner that is not beneficial to the employee, the Companydoes not take the modified vesting conditions into account.If the Company cancels or settles a grant of equity instruments during the vesting period (other than a grantcancelled by forfeiture when the vesting conditions are not satisfied), the Company accounts for the cancellationor settlement as an acceleration of vesting, and therefore recognizes immediately the amount that otherwise wouldhave been recognized for services received over the remainder of the vesting period.23．RevenueDisclosure of accounting policies used for revenue recognition and measurement according to transaction type
1. Revenue recognition principles
At contract inception, the Company shall assess the contracts and shall identify each performance obligationin the contracts, and determine whether the performance obligation should be satisfied over time or at a point intime.The Company satisfies a performance obligation over time if one of the following criteria is met, otherwise,the performance obligation is satisfied at a point in time: (1) the customer simultaneously receives and consumesthe benefits provided by the Company’s performance as the Company performs; (2) the customer can controlgoods or services as they are created by the Company’s performance; (3) the Company’s performance does notcreate goods or services with an alternative uses and the Company has an enforceable right to payment forperformance completed to date.
For each performance obligation satisfied over time, the Company shall recognize revenue over time bymeasuring the progress towards complete satisfaction of that performance obligation. In the circumstance that theprogress cannot be measured reasonably, but the costs incurred in satisfying the performance obligation areexpected to be recovered, the Company shall recognize revenue only to the extent of the costs incurred until it canreasonably measure the progress. For each performance obligation satisfied at a point in time, the Company shallrecognize revenue at the time point that the customer obtains control of relevant goods or services. To determinewhether the customer has obtained control of goods, the Company shall consider the following indicators: (1) theCompany has a present right to payment for the goods, i.e., the customer is presently obliged to pay for the goods;
(2) the Company has transferred the legal title of the goods to the customer, i.e., the customer has legal title to thegoods; (3) the Company has transferred physical possession of the goods, i.e., the customer has physicallypossessed the goods; (4) the Company has transferred significant risks and rewards of ownership of the goods,i.e., the customer has obtained significant risks and rewards of ownership of the goods; (5) the customer hasaccepted the goods; (6) other indicators showing the customer has obtained control over the goods.
2.Revenue measurement principle
(1) Revenue is measured at the amount of the transaction price that is allocated to each performanceobligation. The transaction price is the amount of consideration to which the Company expects to be entitled inexchange for transferring goods or services to a customer, excluding amounts collected on behalf of third partiesand those expected to be refunded to the customer.
(2) If the consideration promised in a contract includes a variable amount, the Company shall confirm thebest estimate of variable consideration at expected value or the most likely amount. However, the transaction price
that includes the amount of variable consideration only to the extent that it is high probable that a significantreversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with thevariable consideration is subsequently resolved.
(3) In the circumstance that the contract contains a significant financing component, the Company shalldetermine the transaction price based on the price that a customer would have paid for if the customer had paidcash for obtaining control over those goods or services. The difference between the transaction price and theamount of promised consideration is amortized under effective interest method over contractual period. Theeffects of a significant financing component shall not be considered if the Company expects, at the contractinception, that the period between when the customer obtains control over goods or services and when thecustomer pays consideration will be one year or less.
(4) For contracts containing two or more performance obligations, the Company shall determine the stand-alone selling price at contract inception of the distinct good underlying each performance obligation and allocatethe transaction price to each performance obligation on a relative stand-alone selling price basis.
3. Revenue recognition method
The company's main business activities are the R&D, production and sales of control components and partsof household appliances and automobiles, which belong to the performance obligations at a certain point in time.
The revenue from domestic sales of products shall be recognized based on sales contracts, settlementvouchers (delivery or usage),and other documents upon completion of product delivery; and the revenue fromexport of products shall be recognized according to the sales contract, customs declaration form, bill of lading,and other documents upon completion of customs declaration and export. The sales revenue of metal scrap isrecognized after weighing and picking up the goods and obtaining the receipt certificate.
The situation where similar businesses adopt different business models involving different revenuerecognition and measurement methods.24．Costs of obtaining a contract and costs to fulfill a contract
The Company recognizes as an asset the incremental costs of obtaining a contract if those costs areexpected to be recovered. The costs of obtaining a contract shall be included into profit or loss when incurred ifthe amortization period of the asset is one year or less.
If the costs incurred in fulfilling a contract are not within the scope of standards related to inventories, fixedassets or intangible assets, etc., the Company shall recognize the costs to fulfill a contract as an asset if all thefollowing criteria are satisfied:
1. The costs relate directly to a contract or to an anticipated contract, including direct labor, direct materials,manufacturing overhead cost (or similar cost), cost that are explicitly chargeable to the customer under thecontract, and other costs that are only related to the contract;
2. The costs enhance resources of the Company that will be used in satisfying performance obligations inthe future;
3. The costs are expected to be recovered.
An asset related to contract costs shall be amortized on a systematic basis that is consistent with relatedgoods or services, with amortization included into profit or loss.
The Company shall make provision for impairment and recognize an impairment loss to the extent that thecarrying amount of an asset related to contract costs exceeds the remaining amount of consideration that theCompany expects to receive in exchange for the goods or services to which the asset relates less the costsexpected to be incurred. The Company shall recognize a reversal of an impairment loss previously recognized in
profit or loss when the impairment conditions no longer exist or have improved. The carrying amount of the assetafter the reversal shall not exceed the amount that would have been determined on the reversal date if no provisionfor impairment had been made previously.
25．Contract assets, contract liabilitiesThe Company presents contract assets or contract liabilities in the balance sheet based on the relationshipbetween its performance obligations and customers’ payments. Contract assets and contract liabilities under thesame contract shall offset each other and be presented on a net basis.
The Company presents an unconditional right to consideration (i.e., only the passage of time is requiredbefore the consideration is due) as a receivable, and presents a right to consideration in exchange for goods that ithas transferred to a customer (which is conditional on something other than the passage of time) as a contractasset.
The Company presents an obligation to transfer goods to a customer for which the Company has receivedconsideration (or the amount is due) from the customer as a contract liability.
26．Government grants
1. Government grants shall be recognized if, and only if, the following conditions are all met: (1) theCompany will comply with the conditions attaching to the grants; (2) the grants will be received. Monetarygovernment grants are measured at the amount received or receivable. Non-monetary government grants aremeasured at fair value, and can be measured at nominal amount in the circumstance that fair value can’t beassessed.
2. Government grants related to assets
Government grants related to assets are government grants with which the Company construct or otherwiseacquire long-term assets under requirements of government. In the circumstances that there is no specificgovernment requirement, the Company shall determine based on the primary condition to acquire the grants andgovernment grants related to assets are government grants whose primary condition is to construct or otherwiseacquire long-term assets. They offset carrying amount of relevant assets or recognized as deferred income. Ifrecognized as deferred income, they are included in profit or loss on a systematic basis over the useful lives of therelevant assets. Those measured at notional amount is directly included into profit or loss. For assets sold,transferred, disposed or damaged within the useful lives, balance of unamortized deferred income is transferredinto profit or loss of the year in which the disposal occurred.
3. Government grants related to income
Government grants related to income are government grants other than those related to assets. Forgovernment grants that contain both parts related to assets and parts related to income, in which those two partsare blurred and thus collectively classified as government grants related to income. For government grants relatedto income used for compensating the related future cost, expenses or losses of the Company are recognized asdeferred income and are included in profit or loss or offset relevant cost during the period in which the relevantcost, expenses or losses are recognized; for government grants related to income used for compensating therelated cost, expenses or losses incurred to the Company, they are directly included in profit or loss or directlyoffset relevant cost.
4. Government grants related to the ordinary course of business shall be included into other income or offset
relevant cost based on business nature, while those not related to the ordinary course of business shall be includedinto non-operating revenue or expenditures.
5. Policy interest subvention
(1) In the circumstance that government appropriates interest subvention to lending bank, who providesloans for the Company with a policy subsidised interest rate, borrowings are carried at the amount received, withrelevant borrowings cost computed based on the principal and the policy subsidised interest rate.
(2) In the circumstance that government directly appropriates interest subvention to the Company, thesubsidised interest shall offset relevant borrowing cost.27．Deferred tax assets/Deferred tax liabilities
1. Deferred tax assets or deferred tax liabilities are calculated and recognized based on the differencebetween the carrying amount and tax base of assets and liabilities (and the difference of the carrying amount andtax base of items not recognized as assets and liabilities but with their tax base being able to be determinedaccording to tax laws) and in accordance with the tax rate applicable to the period during which the assets areexpected to be recovered or the liabilities are expected to be settled.
2. A deferred tax asset is recognized to the extent of the amount of the taxable income, which it is most likelyto obtain and which can be deducted from the deductible temporary difference. At the balance sheet date, if thereis any exact evidence that it is probable that future taxable income will be available against which deductibletemporary differences can be utilized, the deferred tax assets unrecognized in prior periods are recognized.
3. At the balance sheet date, the carrying amount of deferred tax assets is reviewed. The carrying amount of adeferred tax asset is reduced to the extent that it is no longer probable that sufficient taxable income will beavailable to allow the benefit of the deferred tax asset to be utilized. Such reduction is subsequently reversed tothe extent that it becomes probable that sufficient taxable income will be available.
4. The income tax and deferred tax for the period are treated as income tax expenses or income through profitor loss, excluding those arising from the following circumstances: (1) business combination; and (2) thetransactions or items directly recognized in equity.
5.Deferred tax assets and deferred tax liabilities shall offset each other and be presented on a net basis whenthe following conditions are all met: (1) the Company has the legal right to settle off current tax assets againstcurrent tax liabilities; (2) Deferred income tax assets and deferred income tax liabilities are related to the incometax levied by the same tax administration department on the same taxpayer or related to the same taxadministration department for different taxpayers. However, in each period during which significant deferredincome tax assets and deferred income tax liabilities are reversed in the future, the taxpayer involved intends tosettle the current income tax assets and liabilities on a net basis or simultaneously acquire assets and settle debts.
28. Leases
1. The Company as lessee
At the commencement date, the Company recognizes a lease that has a lease term of 12 months or less as ashort-term lease, which shall not contain a purchase option; the Company recognizes a lease as a lease of a low-value asset if the underlying asset is of low value when it is new.
For all short-term leases and leases of low-value assets, lease payments are recognized as cost or profit or loss
with straight-line method over the lease term.
Apart from the above-mentioned short-term leases and leases of low-value assets with simplified approach, theCompany recognizes right-of-use assets and lease liabilities at the commencement date.
(1) Right-of-use assets
The right-of-use asset is measured at cost and the cost shall comprise: 1) the amount of the initial measurementof the lease liabilities; 2) any lease payments made at or before the commencement date, less any lease incentivesreceived; 3) any initial direct costs incurred by the lessee; and 4) an estimate of costs to be incurred by the lessee indismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlyingasset to the condition required by the terms and conditions of the lease.
The Company depreciates the right-of-use asset using the straight-line method. If it is reasonable to be certainthat the ownership of the underlying asset can be acquired by the end of the lease term, the Company depreciatesthe right-of-use asset from the commencement date to the end of the useful life of the underlying asset. Otherwise,the Company depreciates the right-of-use asset from the commencement date to the earlier of the end of the usefullife of the right-of-use asset or the end of the lease term.
(2) Lease liabilities
At the commencement date, the Company measures the lease liability at the present value of the lease paymentsthat are not paid at that date, discounted using the interest rate implicit in the lease.Unrecognized financing expenses,calculated at the difference between the lease payment and its present value, are recognized as interest expensesover the lease term using the discount rate which has been used to determine the present value of lease payment andincluded in profit or loss. Variable lease payments not included in the measurement of lease liabilities are includedin profit or loss in the periods in which they are incurred.
2.The Company as lessor
At the commencement date, the Company classifies a lease as a finance lease if it transfers substantially all therisks and rewards incidental to ownership of an underlying asset. Otherwise, it is classified as an operating lease.
For operating lease,lease receipts are recognized as lease income with straight-line method over the leaseterm. Initial direct costs incurred shall be capitalized, amortized on the same basis as the recognition of leaseincome, and included into profit or loss by installments. Variable lease payments related to operating lease whichare not included in the lease payment are charged as profit or loss in the periods in which they are incurred.
29. Segment reporting
Operating segments are determined based on the structure of the Company’s internal organization,management requirements and internal reporting system. An operating segment is a component of the Company:
1. That engages in business activities from which it may earn revenues and incur expenses;
2. Whose financial performance is regularly reviewed by the Management to make decisions about resource
to be allocated to the segment and to assess its performance;
3. For which accounting information regarding financial position, financial performance and cash flows isavailable through analysis.
30. Share repurchase
When the Company repurchases its shares for the purpose of reducing its registered capital or rewarding itsemployees. The amount actually paid shall be treated as treasury stock and registered for future reference at thesame time. If the purchased shares are to be retired, the difference between the total book value of shares retiredand the cash distributed to existing shareholders for repurchase is to reduce capital reserve, or retained earningswhen the capital reserve is not enough to reduce. If the Company repurchases vested equity instruments in equity-settled share-based payment transactions with employees, cost of treasury shares granted to employees and capitalreserve (other capital reserve) accumulated within the vesting period are to be written off on the payment made toemployees, with a corresponding adjustment in capital reserve (share premium).
31. Changes in significant accounting policies and accounting estimates
(1) Implement the relevant regulations of Interpretation of China Accounting Standards for BusinessEnterprises No. 17
On October 25, 2023, the Ministry of Finance issued Interpretation No. 17 of the China AccountingStandards for Business Enterprises (Finance and Accounting [2023] No. 21) (hereinafter referred to as"Interpretation No. 17"), which will come into effect on January 1, 2024. Our company will implement theprovisions of Interpretation No. 17 from January 1, 2024. The relevant provisions of Interpretation No. 17 have nosignificant impact on the financial statements of our company during the reporting period.
A:Classification of current liabilities and non current liabilities
Our company will implement this regulation from January 1, 2024, and its implementation will not have asignificant impact on the company.
B:Disclosure of Supplier Financing Arrangements
Our company will implement this regulation from January 1, 2024, and its implementation will not have asignificant impact on the company.
C:Accounting treatment of post-sale leaseback transactions
Our company will implement this regulation from January 1, 2024, and its implementation will not have asignificant impact on the company.
(2) Reclassification of warranty fees for guarantee category
The finance department released the "Compilation of Application Guidelines for Enterprise AccountingStandards 2024" in March 2024, which stipulates that warranty fees should be included in operating costs.
Our company will implement this regulation from January 1, 2024, and reclassify the warranty expenses thatwere originally included in sales expenses for each reporting period into operating costs.
This accounting policy change will affect the "operating costs" and "sales expenses" in the company's income
statement, but will not affect the company's "operating revenue" and "operating profit", and will not have asignificant impact on the company's financial condition and operating results. The impact of this accountingpolicy change on the financial statements for the first half of 2023 is as follows:
| Report project | Income Statement for January June 2023 | ||
| Amount before adjustment | Correction of affected amount | Amount after adjustment | |
| consolidated Income Statement | |||
| Operating costs | 9,295,615,081.75 | 13,045,834.52 | 9,308,660,916.27 |
| selling expenses | 277,177,564.79 | -13,045,834.52 | 264,131,730.27 |
| Income Statement of the Parent Company | |||
| Operating costs | 2,625,734,196.14 | 697,108.08 | 2,626,431,304.22 |
| selling expenses | 16,652,349.86 | -697,108.08 | 15,955,241.78 |
Ⅵ. Taxes
1. Major categories of taxes and tax rates
| Tax Type | Taxation basis | Tax rate |
| Enterprise income tax | Taxable income | 15%，25% |
| Value-added tax (VAT) | The output tax calculated based on the revenue from sales of goods or rendering of services in accordance with the tax law, net of the input tax that is allowed to be deducted in the current period | 13%，9%，6% |
| Housing property tax | For housing property levied on the basis of price, housing property tax is levied at the rate of 1.2% of the balance after deducting 30% of the cost; for housing property levied on the basis of rent, housing property tax is levied at the rate of 12% of lease income | 12%,1.2% |
| Urban maintenance and construction tax | Turnover tax actually paid | 7%，5% |
| Education surcharge | Turnover tax actually paid | 3% |
| Local education surcharge | Turnover tax actually paid | 2% |
Different enterprise income tax rates applicable to different taxpayers:
| Taxpayers | Income tax rate |
| Zhejiang Sanhua Intelligent Controls Co., Ltd | 15% |
| Zhejiang Sanhua Commercial Refrigeration Co. Ltd | 15% |
| Sanhua (hangzhou) Micro Channel Heat Exchanger Co., Ltd | 15% |
| Zhejiang Sanhua Automotive Components Co., Ltd. | 15% |
| Shaoxing Sanhua New Energy Automotive Components Co., Ltd | 15% |
| Wuhu Sanhua Auto-control Components Co., Ltd and other subsidiaries | 15% |
| Domestic taxpayers other than the above-mentioned | 25% |
2. Tax preferential policies
The company and several subsidiaries can enjoy tax incentives for high-tech enterprises, and the finalsettlement and payment shall prevail.Export goods enjoy the VAT exemption and refund policy; the exceeding portion over the 3% VAT payable ofthe certified software products enjoy the immediate refund policy; several subsidiaries are welfare enterprises, andvalue-added tax enjoys the preferential policy of immediate collection and refund of the "employment quota fordisabled persons".
3. Others
The overseas subsidiary shall be subject to the tax regulations of its host country.
Ⅶ. Notes to Items in the Consolidated Financial Statements
1. Cash and bank balances
Unit: RMB
| Items | Closing balance | Opening balance |
| Cash on hand | 611,537.90 | 291,216.13 |
| Cash in bank | 5,171,938,336.92 | 6,507,907,610.98 |
| Other cash and bank balances | 50,333,557.34 | 76,485,856.82 |
| Total | 5,222,883,432.16 | 6,584,684,683.93 |
| Including: Deposited overseas | 964,008,405.86 | 510,550,872.27 |
Other remarks:
As of June 30, 2024, bank deposits containing large deposit certificates with fixed interest rates amounted to2597.0668 million yuan.
2. Held-for-trading financial assets
Unit: RMB
| Items | Closing balance | Opening balance |
| Financial assets at fair value through profit or loss | 100,000,000.00 | |
| Including: | ||
| Financial products | 100,000,000.00 | |
| Including: | ||
| Total | 100,000,000.00 |
3. Derivative Financial Assets
Unit: RMB
| Items | Closing balance | Opening balance |
| Foreign exchange tool | 7,171,639.44 | 20,878,992.10 |
| Futures tools | 3,760,125.00 | 1,757,120.58 |
| Total | 10,931,764.44 | 22,636,112.68 |
4. Notes receivable
（1）Categories of notes receivable
Unit: RMB
| Items | Closing balance | Opening balance |
| Bank acceptance | 2,561,934,390.67 | 2,332,015,457.09 |
| Trade acceptance | 5,775,043.04 | 7,632,781.39 |
| Financial company acceptance | 107,616,569.65 | 137,191,175.41 |
| Total | 2,675,326,003.36 | 2,476,839,413.89 |
（2）Provision for bad debts
Unit: RMB
| Categories | Closing balance | Opening balance | ||||||||
| Book balance | Provision for bad debt | Carrying amount | Book balance | Provision for bad debt | Carrying amount | |||||
| Amount | Proportion | Amount | Provision proportion | Amount | Proportion | Amount | Provision proportion | |||
| Including: | ||||||||||
| Notes receivable with provision for bad debt made on a collective basis | 2,681,293,983.00 | 100.00% | 5,967,979.64 | 0.22% | 2,675,326,003.36 | 2,484,457,759.72 | 100.00% | 7,618,345.83 | 0.31% | 2,476,839,413.89 |
| Including: | ||||||||||
| Bank acceptance | 2,561,934,390.67 | 95.55% | 0.00 | 2,561,934,390.67 | 2,332,015,457.09 | 93.87% | 2,332,015,457.09 | |||
| Financial company acceptance | 113,280,599.64 | 4.22% | 5,664,029.99 | 5.00% | 107,616,569.65 | 144,407,795.90 | 5.81% | 7,216,620.49 | 5.00% | 137,191,175.41 |
| Trade acceptance | 6,078,992.69 | 0.23% | 303,949.65 | 5.00% | 5,775,043.04 | 8,034,506.73 | 0.32% | 401,725.34 | 5.00% | 7,632,781.39 |
| Total | 2,681,293,983.00 | 100.00% | 5,967,979.64 | 0.22% | 2,675,326,003.36 | 2,484,457,759.72 | 100.00% | 7,618,345.83 | 0.31% | 2,476,839,413.89 |
Provision for bad debt made on a collective basis:
Unit: RMB
| Items | Closing balance | ||
| Book balance | Provision for bad debt | Provision proportion (%) | |
| Bank acceptance portfolio | 2,561,934,390.67 | ||
| Financial company acceptance | 113,280,599.64 | 5,664,029.99 | 5.00% |
Trade acceptanceportfolio
| Trade acceptance portfolio | 6,078,992.69 | 303,949.65 | 5.00% |
| Total | 2,681,293,983.00 | 5,967,979.64 |
If the provision for bad debt of notes receivable is in accordance with the general expected credit loss model:
√ Applicable □ Not Applicable
Unit: RMB
| Provision for bad debt | Phase I | Phase II | Phase III | Subtotal |
| 12②month expected credit losses | Lifetime expected credit losses (credit not impaired) | Lifetime expected credit losses (credit impaired) | ||
| Balance on January 1, 2024 | 7,618,345.83 | 7,618,345.83 | ||
| The balance as of January 1, 2024 is in the current period | ||||
| Provision for this period | -1,650,366.19 | -1,650,366.19 | ||
| Balance on June 30, 2024 | 5,967,979.64 | 5,967,979.64 |
（3）Provision for bad debt accrued, recovered or reversed in current periodProvision for bad debt accrued in current period:
Unit: RMB
| Categories | Opening balance | Changed amount of this period | Closing balance | |||
| Accrual | Recovered or reversed | Write off | Others | |||
| Provision for bad debt made on a collective basis | 7,618,345.83 | -1,650,366.19 | 5,967,979.64 | |||
| Total | 7,618,345.83 | -1,650,366.19 | 5,967,979.64 | |||
Including significant provision for bad debt recovered or reversed amount:
□ Applicable √ Not Applicable
（4）Pledged notes at the balance sheet date
Unit: RMB
| Items | Closing balance of pledged notes |
| Bank acceptance | 1,793,910,736.57 |
| Financial company acceptance | 72,114,823.15 |
| Total | 1,866,025,559.72 |
（5）Endorsed or discounted but undue notes at the balance sheet date
Unit: RMB
| Items | Closing balance derecognized | Closing balance not yet derecognized |
| Bank acceptance | 71,858,630.91 | |
| Total | 71,858,630.91 |
5. Accounts receivable
（1）Disclosure of accounts receivable by aging
Unit: RMB
| AR Aging | Closing balance | Opening balance |
| Within 1 year (including one year) | 7,475,428,437.53 | 6,039,601,208.01 |
| 1 to 2 years | 55,145,447.10 | 45,652,788.88 |
| 2 to 3 years | 11,138,289.75 | 388,260.85 |
| Over 3 years | 447,720.11 | 265,553.29 |
| Total | 7,542,159,894.49 | 6,085,907,811.03 |
（2）Disclosure of accounts receivable by categories
Unit: RMB
| Categories | Closing balance | Opening balance | ||||||||
| Book balance | Provision for bad debt | Carrying amount | Book balance | Provision for bad debt | Carrying amount | |||||
| Amount | Proportion | Amount | Accrued proportion | Amount | Proportion | Amount | Accrued proportion | |||
| Receivables with provision made on an individual basis | 8,312,148.34 | 0.11% | 8,312,148.34 | 100.00% | 5,690,817.36 | 0.09% | 5,690,817.36 | 100.00% | ||
| Including: | ||||||||||
Receivableswithprovisionmadeon acollectivebasis
| Receivables with provision made on a collective basis | 7,533,847,746.15 | 99.89% | 381,004,143.50 | 5.06% | 7,152,843,602.65 | 6,080,216,993.67 | 99.91% | 306,225,512.45 | 5.04% | 5,773,991,481.22 |
| Including: | ||||||||||
| Total | 7,542,159,894.49 | 100.00% | 389,316,291.84 | 5.16% | 7,152,843,602.65 | 6,085,907,811.03 | 100.00% | 311,916,329.81 | 5.13% | 5,773,991,481.22 |
Provision made on an individual basis:
There are no provisions made on an individual basis need to be disclosed in this period.
Unit: RMB
| Items | Closing balance | ||
| Book balance | Provision for bad debt | Accrued proportion | |
| Within 1 year | 7,472,842,540.14 | 373,642,127.09 | 5.00% |
| 1 to 2 years | 55,145,447.10 | 5,514,544.71 | 10.00% |
| 2 to 3 years | 5,412,038.80 | 1,623,611.64 | 30.00% |
| Over 3 years | 447,720.11 | 223,860.06 | 50.00% |
| Total | 7,533,847,746.15 | 381,004,143.50 | |
If the provision for bad debt of accounts receivable is in accordance with the general expected credit loss model:
√Applicable □ Not Applicable
Unit: RMB
| Provision for bad debt | Phase I | Phase II | Phase III | Subtotal |
| 12②month expected credit losses | Lifetime expected credit losses (credit not impaired) | Lifetime expected credit losses (credit impaired) | ||
| Balance on January 1, 2024 | 301,980,060.40 | 3,996,197.15 | 5,940,072.26 | 311,916,329.81 |
| The balance as of January 1, 2024 is in the current period | ||||
| Provision accrued in the current period | 72,270,331.20 | 1,518,347.56 | 4,731,190.87 | 78,519,869.63 |
| Provision reversed in current period | 608,264.51 | 511,643.09 | 1,119,907.60 |
Balance on June 30, 2024
| Balance on June 30, 2024 | 373,642,127.09 | 5,514,544.71 | 10,159,620.04 | 389,316,291.84 |
（3）Provision for bad debt accrued, recovered or reversed in current periodProvision for bad debt accrued in current period:
Unit: RMB
Categories
| Categories | Opening balance | Changed amount of the current period | Closing balance | |||
| Accrued | Recovered or reversed | Write off | Others | |||
| Receivables with provision made on an individual basis | 5,690,817.36 | 3,132,974.07 | 511,643.09 | 8,312,148.34 | ||
| Receivables with provision made on a collective basis | 306,225,512.45 | 75,386,895.56 | 608,264.51 | 381,004,143.50 | ||
| Total | 311,916,329.81 | 78,519,869.63 | 1,119,907.60 | 389,316,291.84 | ||
（4）Details about accounts receivable actually written off in the current period
Unit: RMB
| Item | Amount |
| Actually written off amount | 1,119,907.60 |
There were no significant write-offs of accounts receivable during the period
（5）Accounts receivable and contract assets of the top five ending balances
Closing balance of top 5 debtors totaled 3835.4284 million yuan, accounting for 50.85% of the total closingbalance of accounts receivable. The corresponding provision for bad debts of accounts receivable is 191.8120million yuan.
（6）Other remarks
Some of the company's accounts receivable are collected by digital and electronic debt vouchers. These debtvouchers have certain credit liquidity and can be used for commercial factoring or transfer payment. As of June30, 2024, the company had 1905.2108 million yuan of digital and electronic debt vouchers in hand, and 62.4937million yuan of digital and electronic debt vouchers that had been transferred for payment but not expired.
6. Other receivables
Unit: RMB
| Items | Closing balance | Opening balance |
| Other receivables | 189,681,028.61 | 227,792,892.12 |
| Total | 189,681,028.61 | 227,792,892.12 |
（1）Other receivables
1）Other receivables categorized by nature
Unit: RMB
| Items | Closing balance | Opening balance |
| Tax refund receivable | 110,811,217.75 | 164,712,845.63 |
| Guarantee deposits | 27,057,636.23 | 45,694,632.70 |
| Others | 58,138,036.58 | 25,466,493.81 |
Total
| Total | 196,006,890.56 | 235,873,972.14 |
2）Disclosure by aging
Unit: RMB
| Aging | Closing balance | Opening balance |
| Within 1 year (including one year) | 185,914,210.46 | 209,294,612.66 |
| 1 to 2 years | 4,500,822.46 | 7,805,876.63 |
| 2 to 3 years | 2,040,040.72 | 6,125,806.34 |
| Over 3 years | 3,551,816.92 | 12,647,676.51 |
| Total | 196,006,890.56 | 235,873,972.14 |
3）Disclosure by categories
√ Applicable □Not Applicable
Unit: RMB
| Categories | Closing balance | Opening balance | ||||||||
| Book balance | Provision for bad debt | Carrying amount | Book balance | Provision for bad debt | Carrying amount | |||||
| Amount | Proportion | Amount | Accrued proportion | Amount | Proportion | Amount | Accrued proportion | |||
| Provision made on an individual basis | 116,157,030.43 | 59.26% | 116,157,030.43 | 170,268,281.68 | 72.19% | 170,268,281.68 | ||||
| Including: | ||||||||||
Provisionmadeon acollectivebasis
| Provision made on a collective basis | 79,849,860.13 | 40.74% | 6,325,861.95 | 7.92% | 73,523,998.18 | 65,605,690.46 | 27.81% | 8,081,080.02 | 12.32% | 57,524,610.44 |
| Including: | ||||||||||
| Total | 196,006,890.56 | 100.00% | 6,325,861.95 | 3.23% | 189,681,028.61 | 235,873,972.14 | 100.00% | 8,081,080.02 | 3.43% | 227,792,892.12 |
Provision made on a collective basis:
Unit: RMB
| Items | Closing balance | ||
| Book balance | Provision for bad debt | Accrued proportion | |
| Within 1 year | 69,757,180.03 | 3,487,859.03 | 5.00% |
| 1 to 2 years | 4,500,822.46 | 450,082.24 | 10.00% |
| 2 to 3 years | 2,040,040.72 | 612,012.22 | 30.00% |
| Over 3 years | 3,551,816.92 | 1,775,908.46 | 50.00% |
| Total | 79,849,860.13 | 6,325,861.95 | |
Provision for bad debt of other receivables in accordance with the general expected credit loss model:
Unit: RMB
| Provision for bad debt | Phase I | Phase II | Phase III | Subtotal |
| 12②month expected credit losses | Lifetime expected credit losses (credit not impaired) | Lifetime expected credit losses (credit impaired) | ||
| Balance on January 1, 2024 | 2,301,288.08 | 780,587.67 | 4,999,204.27 | 8,081,080.02 |
| The balance as of January 1, 2024 is in the current period | ||||
| Provision for this period | 1,186,570.95 | -330,505.43 | -924,586.07 | -68,520.55 |
| Write off for this period | 1,686,697.52 | 1,686,697.52 | ||
| Balance on June 30, 2024 | 3,487,859.03 | 450,082.24 | 2,387,920.68 | 6,325,861.95 |
Loss provisions for significant changes in book balances in current period
□ Applicable √ Not Applicable
4）Provision for bad debt accrued, recovered or reversed in current periodProvision for bad debt accrued in current period:
Unit: RMB
| Categories | Opening balance | Changed amount of the current period | Closing balance | |||
| Accrued | Recovered or reversed | Write off | Others | |||
| Provision for bad debt | 8,081,080.02 | -68,520.55 | 1,686,697.52 | 6,325,861.95 | ||
| Total | 8,081,080.02 | -68,520.55 | 1,686,697.52 | 6,325,861.95 | ||
（5）Details about accounts receivable actually written off in the current period
Unit: RMB
| Item | Amount |
| Actually written off amount | 1,686,697.52 |
There were no significant write-offs of accounts receivable during the period.6）Details of the top 5 debtors with largest balances
Unit: RMB
| Items | Nature of receivables | Closing balance | Ages | Proportion to the total balance of other receivables | Provision for bad debt at the end of the period |
| Tax refund receivables | Tax refund | 110,811,217.75 | Within 1 year | 56.53% | |
| US Customs | Customs deposit | 5,345,812.68 | Within 1 year | 2.73% | |
| Hailiang (Anhui) Copper Industry Co., Ltd | Performance bond | 4,000,000.00 | Within 1 year | 2.04% | 200,000.00 |
| Shaoxing Binhai New City Development and Construction Co., Ltd | Performance bond | 1,311,000.00 | Within 1 year | 0.67% | 65,550.00 |
| Hisense Refrigerator Co., Ltd | Performance bond | 800,000.00 | 0 to 2 years | 0.41% | 65,000.00 |
| Total | 122,268,030.43 | 62.38% | 330,550.00 |
7. Advances paid
（1）Advances paid by aging
Unit: RMB
| Aging | Closing balance | Opening balance | ||
| Amount | Percentage | Amount | Percentage | |
| Within 1 year | 142,420,509.02 | 94.27% | 128,617,877.12 | 96.13% |
| 1 to 2 years | 4,641,165.56 | 3.07% | 2,851,372.48 | 2.13% |
| 2 to 3 years | 3,601,200.00 | 2.38% | 1,053,936.12 | 0.79% |
| Over 3 years | 407,761.00 | 0.27% | 1,269,437.82 | 0.95% |
| Total | 151,070,635.58 | 133,792,623.54 | ||
（2）Top 5 debtors with the largest advances paid balances
Closing balance of top 5 debtors totaled 27,328,487.07 yuan, accounting for 18.09% of the total closingbalance.
8. Inventories
Whether the Company needs to comply with the disclosure requirements of the real estate industry
□Yes √ No
（1）Categories of inventories
Unit: RMB
| Items | Closing balance | Opening balance | ||||
| Book balance | Provision for decline in value of inventories or provision for impairment of contract performance costs | Carrying amount | Book balance | Provision for decline in value of inventories or provision for impairment of contract performance costs | Carrying amount | |
| Raw materials | 1,120,760,900.49 | 67,612,940.35 | 1,053,147,960.14 | 932,169,486.90 | 61,788,757.16 | 870,380,729.74 |
| Work-in-progress | 706,437,334.08 | 8,597,976.58 | 697,839,357.50 | 596,409,922.79 | 1,602,512.78 | 594,807,410.01 |
| Finished goods | 2,798,119,611.53 | 54,209,754.07 | 2,743,909,857.46 | 3,179,557,350.47 | 50,888,480.61 | 3,128,668,869.86 |
| Others | 14,678,120.63 | 14,678,120.63 | 6,872,368.58 | 6,872,368.58 | ||
| Total | 4,639,995,966.73 | 130,420,671.00 | 4,509,575,295.73 | 4,715,009,128.74 | 114,279,750.55 | 4,600,729,378.19 |
（2）Provision for decline in value of inventories and Provision for impairment of contract performancecosts
Unit: RMB
Items
| Items | Opening balance | Increase in current period | Decrease in current period | Closing balance | ||
| Accrued | Others | Reversal or write off | Others | |||
| Raw materials | 61,788,757.16 | 16,531,019.49 | 10,706,836.30 | 67,612,940.35 | ||
| Work-in-progress | 1,602,512.78 | 6,922,057.90 | 73,405.90 | 8,597,976.58 | ||
| Finished goods | 50,888,480.61 | 29,728,741.33 | 54,502.21 | 26,461,970.08 | 54,209,754.07 | |
| Total | 114,279,750.55 | 53,181,818.72 | 127,908.11 | 37,168,806.38 | 130,420,671.00 | |
9. Other current assets
Unit: RMB
| Items | Closing balance | Opening balance |
| Deductible input tax | 166,625,073.66 | 186,254,431.54 |
| Prepaid Enterprise income tax | 13,564,061.42 | 61,993,000.46 |
| Others | 10,908,713.19 | 2,826,152.56 |
| Total | 191,097,848.27 | 251,073,584.56 |
10. Long-term receivable
（1）Long-term receivable
Unit: RMB
| Items | Closing balance | Opening balance | Range of discount rate | ||||
| Book balance | Provision for bad debt | Carrying amount | Book balance | Provision for bad debt | Carrying amount | ||
| Employee home loan | 3,805,833.60 | 3,805,833.60 | |||||
| Guarantee of quality | 35,133,388.24 | 35,133,388.24 | |||||
| Unrecognised financing gain | -35,133,388.24 | -35,133,388.24 | |||||
| Total | 0.00 | 0.00 | 3,805,833.60 | 3,805,833.60 | |||
11. Long-term equity investments
Unit: RMB
| Investees | Opening balance (Book value) | Opening balance of provision for impairment | Changes in current period | Closing balance (Book value) | Closing balance of provision for impairment | |||||||
| Investments increased | Investments decreased | Investment income recognized under equity method | Adjustment in other comprehensive income | Changes in other equity | Cash dividend/ Profit declared for distribution | Provision for impairment | Others | |||||
1. Associates
| 1. Associates | ||||||||||||
| 2. Joint ventures | ||||||||||||
| Chongqing Tainuo Machinery Co., Ltd. | 18,304,176.79 | 2,882,088.15 | -5,000,000.00 | 16,186,264.94 | ||||||||
| Qingdao Sanhua Jinlifeng Machinery Co., Ltd. | 7,207,202.81 | 1,524,268.57 | 0.00 | 8,731,471.38 | ||||||||
| Guochuang Energy Internet Innovation Center (Guangdong) Co., Ltd | 4,941,151.03 | 118,788.95 | 0.00 | 5,059,939.98 | ||||||||
| Ningbo Jinlifeng Machinery Co., Ltd. | 2,818,824.39 | 648,292.40 | -1,250,000.00 | 2,217,116.79 | ||||||||
| Xinchang zhejiang energy sanhua comprehensive energy co. LTD | 1,846,762.69 | 26,931.08 | 0.00 | 1,873,693.77 | ||||||||
| Zhongshan Xuanyi Pipe Manufacturing Co., Ltd | 2,806,313.58 | 219,492.86 | 0.00 | 3,025,806.44 | ||||||||
| Subtotal | 37,924,431.29 | 5,419,862.01 | -6,250,000.00 | 37,094,293.30 | ||||||||
| Total | 37,924,431.29 | 5,419,862.01 | -6,250,000.00 | 37,094,293.30 | ||||||||
The recoverable amount is determined based on the net amount after deducting disposal expenses from fair value
□ Applicable √ Not Applicable
The recoverable amount is determined based on the present value of expected future cash flows
□ Applicable √ Not Applicable
12. Investment property
（1）Investment property measured by cost method
√ Applicable □ Not Applicable
Unit: RMB
| Items | Buildings and structures | Land use right and Overseas land ownership | Total |
| ②. Original Carrying amount | |||
| 1.Opening balance | 12,988,799.79 | 3,465,907.20 | 16,454,706.99 |
| 2.Increase in current period | 450,964.17 | -87,097.50 | 363,866.67 |
| （1）Acquisition | 316,459.62 | 316,459.62 | |
| （2）Transferred in from inventory\fixed assets\ construction in progress | |||
| （3）Increase in business merger | |||
| （4）Converted difference in Foreign Currency Statements | 134,504.55 | -87,097.50 | 47,407.05 |
| 3.Decrease in current period | |||
| （1）Disposal | |||
| （2）Other transfer out | |||
| 4.Closing balance | 13,439,763.96 | 3,378,809.70 | 16,818,573.66 |
| ②. Accumulated depreciation and amortization | |||
| 1.Opening balance | 8,288,901.68 | 8,288,901.68 | |
| 2. Increase in current period | 941,240.05 | 941,240.05 | |
| （1）Accrual or amortization | 1,130,899.10 | 1,130,899.10 |
（2）Converted
difference in ForeignCurrency Statements
| （2）Converted difference in Foreign Currency Statements | -189,659.05 | -189,659.05 | |
| 3.Decrease in current period | |||
| （1）Disposal | |||
| （2）Other transfer out | |||
| 4.Closing balance | 9,230,141.73 | 9,230,141.73 | |
| ②. Provision for impairment | |||
| 1.Opening balance | |||
| 2. Increase in current period | |||
| （1）Accrual | |||
| 3.Decrease in current period | |||
| （1）Disposal | |||
| （2）Other transfer out | |||
| 4.Closing balance | |||
| ②. Carrying amount | |||
| 1.Closing balance | 4,209,622.23 | 3,378,809.70 | 7,588,431.93 |
| 2.Opening balance | 4,699,898.11 | 3,465,907.20 | 8,165,805.31 |
The recoverable amount is determined based on the net amount after deducting disposal expenses from fair value
□ Applicable √ Not Applicable
The recoverable amount is determined based on the present value of expected future cash flows
□ Applicable √ Not Applicable
（2）Investment properties measured using fair value measurement model
□ Applicable √ Not Applicable
13. Fixed assets
Unit: RMB
| Items | Closing balance | Opening balance |
| Fixed assets | 8,018,985,493.67 | 7,730,363,778.82 |
| Total | 8,018,985,493.67 | 7,730,363,778.82 |
（1）Fixed assets
Unit: RMB
| Items | Buildings and structures | Machinery and equipment | Transportation vehicles | Office and other equipment | Total |
| ②. Original book value: | |||||
| 1.Opening balance | 4,047,371,816.59 | 7,015,745,758.89 | 48,012,520.72 | 288,532,729.20 | 11,399,662,825.40 |
| 2. Increase in current period | 168,209,500.72 | 369,757,804.33 | 2,933,853.21 | 56,850,274.09 | 597,751,432.35 |
| （1）Acquisition | 6,766,236.50 | 83,549,914.18 | 3,046,854.53 | 41,720,838.45 | 135,083,843.66 |
| （2）Transferred in from construction in progress | 189,294,675.78 | 291,617,863.12 | 15,907,577.71 | 496,820,116.61 | |
| （3）Increase in business merger | |||||
| （4）Converted difference in Foreign Currency Statements | -27,851,411.56 | -5,409,972.97 | -113,001.32 | -778,142.07 | -34,152,527.92 |
| 3. Decrease in current period | 13,884,008.95 | 1,549,497.06 | 1,139,488.61 | 16,173,567.09 | 32,746,561.71 |
| （1）Disposal or scrap | 13,884,008.95 | 1,549,497.06 | 1,139,488.61 | 16,173,567.09 | 32,746,561.71 |
| 4.Closing balance | 4,201,697,308.36 | 7,383,954,066.16 | 49,806,885.32 | 329,209,436.20 | 11,964,667,696.04 |
| ②. Accumulated depreciation | |||||
| 1.Opening balance | 757,805,108.30 | 2,712,789,940.74 | 29,589,671.69 | 144,827,742.27 | 3,645,012,463.00 |
| 2. Increase in current period | 77,379,049.75 | 241,976,625.64 | 2,135,428.43 | 16,097,827.56 | 337,588,931.38 |
| （1）Accrual | 79,877,741.83 | 246,201,849.56 | 2,199,871.81 | 16,394,494.52 | 344,673,957.72 |
| (2) Converted difference in Foreign Currency Statements | -2,498,692.08 | -4,225,223.92 | -64,443.38 | -296,666.96 | -7,085,026.34 |
| 3. Decrease in current period | 1,872,764.36 | 51,365,630.81 | 1,531,410.51 | 3,079,219.53 | 57,849,025.21 |
（1）Disposal
or scrap
| （1）Disposal or scrap | 1,872,764.36 | 51,365,630.81 | 1,531,410.51 | 3,079,219.53 | 57,849,025.21 |
| 4.Closing balance | 833,311,393.69 | 2,903,400,935.57 | 30,193,689.61 | 157,846,350.30 | 3,924,752,369.17 |
| ②. Provision for impairment | |||||
| 1.Opening balance | 23,829,156.84 | 457,426.74 | 24,286,583.58 | ||
| 2. Increase in current period | |||||
| （1）Accrual | |||||
| 3. Decrease in current period | 3,327,909.66 | 28,840.72 | 3,356,750.38 | ||
| （1）Disposal or scrap | 3,327,909.66 | 28,840.72 | 3,356,750.38 | ||
| 4.Closing balance | 20,501,247.18 | 428,586.02 | 20,929,833.20 | ||
| ②. Carrying amount | |||||
| 1.Closing balance | 3,368,385,914.67 | 4,460,051,883.41 | 19,613,195.71 | 170,934,499.88 | 8,018,985,493.67 |
| 2.Opening balance | 3,289,566,708.29 | 4,279,126,661.31 | 18,422,849.03 | 143,247,560.19 | 7,730,363,778.82 |
（2）Temporarily idle fixed assets
Unit: RMB
| Item | Original book value | Accumulated depreciation | Impairment provision | Net book value | Notes |
| Machinery and equipment | 39,540,859.16 | 18,110,601.00 | 20,897,208.34 | 533,049.82 | |
| Office equipment and others | 402,344.15 | 369,309.29 | 32,624.86 | 410.00 | |
| Subtotal | 39,943,203.31 | 18,479,910.29 | 20,929,833.20 | 533,459.82 |
（3）Fixed assets leased out through operating leases
Unit: RMB
| Item | Closing balance |
| Buildings and structures | 33,455,808.98 |
（4）Fixed assets with certificate of titles being unsettled
Unit: RMB
| Item | Carrying amount | Reasons for unsettlement |
| Sitong new factory1# production | 36,197,351.79 | New assets, the certificate of title to |
workshop and power workshop
| workshop and power workshop | be processed uniformly after the overall completion | |
| Parts, accessories, and Class A warehouse in the new factory of Sitong | 23,701,068.10 | New assets, the certificate of title to be processed uniformly after the overall completion |
| Pump and auxiliary room in the new factory of Sitong | 7,325,165.81 | New assets, the certificate of title to be processed uniformly after the overall completion |
| Dormitory of Sitong 1#&2# | 42,178,969.78 | New assets, the certificate of title to be processed uniformly after the overall completion |
| Factory 13-15# in Meichu North District | 159,442,014.54 | New assets, the certificate of title to be processed uniformly after the overall completion |
| Finished product warehouse and Class A warehouse in Meichu North District | 38,098,009.54 | New assets, the certificate of title to be processed uniformly after the overall completion |
| Power, tooling, experimental testing, and R&D testing workshop in 1-8 # of Commercial | 425,779,181.41 | New assets, the certificate of title to be processed uniformly after the overall completion |
| Commercial refrigeration product warehouse, raw material warehouse, Class A warehouse, and Class C warehouse | 62,151,537.91 | New assets, the certificate of title to be processed uniformly after the overall completion |
| Commercial dormitory 1-4# | 148,034,040.06 | New assets, the certificate of title to be processed uniformly after the overall completion |
| Commercial canteens, training buildings, etc | 38,537,450.24 | New assets, the certificate of title to be processed uniformly after the overall completion |
| Wuhu Sanhua Automatic Control dormitory | 72,466,558.09 | New assets, the certificate of title to be processed uniformly after the overall completion |
| 1 # Super workshop and power plant | 187,076,296.94 | New assets, the certificate of title to be processed uniformly after the overall completion |
| Heat exchanger 9 # production workshop | 140,866,562.99 | New assets, the certificate of title to be processed uniformly after the overall completion |
| Commercial refrigeration hydrogen station, 35KV substation, three waste treatment station, activity management room, administrative area security guard, logistics area security guard | 18,473,783.39 | New assets, the certificate of title to be processed uniformly after the overall completion |
14. Construction in progress
Unit: RMB
| Items | Closing balance | Opening balance |
| Construction in progress | 2,746,629,632.47 | 2,036,326,757.72 |
| Total | 2,746,629,632.47 | 2,036,326,757.72 |
（1）Details of construction in progress
Unit: RMB
| Items | Closing balance | Opening balance | ||||
| Book balance | Provision for impairment | Carrying amount | Book balance | Provision for impairment | Carrying amount | |
| Annual production of 12 million sets of intelligent thermal management components of new energy vehicles technical renovation project | 159,823,657.32 | 159,823,657.32 | 259,331,934.09 | 259,331,934.09 | ||
| Annual production of 12.5 million sets of intelligent thermal management module for new energy vehicles construction project | 275,215,675.22 | 275,215,675.22 | 208,351,289.28 | 208,351,289.28 | ||
| Annual production of 8 million sets of intelligent thermal management component project | 230,046,921.69 | 230,046,921.69 | 186,106,762.72 | 186,106,762.72 | ||
| Sanhua Minshi Automotive investment 21 million euros to establish a new automotive parts production line project | 104,761,923.55 | 104,761,923.55 | 138,550,445.99 | 138,550,445.99 | ||
| Industrial Plant Engineering in Mexico | 212,595,522.92 | 212,595,522.92 | 128,804,884.71 | 128,804,884.71 | ||
| The new energy vehicle thermal management parts production project in | 502,038,616.60 | 502,038,616.60 | 113,445,275.23 | 113,445,275.23 | ||
GuangdongSanhua
| Guangdong Sanhua | ||||||
| Annual production of 1.5 million sets new energy thermal management component project | 61,338,484.34 | 61,338,484.34 | 87,649,308.50 | 87,649,308.50 | ||
| Annual output of 11 million sets of high efficiency heat exchange component for new energy vehicles project | 86,172,352.42 | 86,172,352.42 | 87,188,916.55 | 87,188,916.55 | ||
| Dormitory of Automotive | 107,369,474.19 | 107,369,474.19 | 77,248,786.37 | 77,248,786.37 | ||
| 150-3 # -6 # Rental dormitory buildings | 119,634,066.95 | 119,634,066.95 | 73,709,950.00 | 73,709,950.00 | ||
| Annual output of 14 million sets of new energy cooling component technology renovation project | 76,422,286.63 | 76,422,286.63 | 66,609,673.61 | 66,609,673.61 | ||
| Annual output of 11 million sets of components technical renovation projects | 90,954,786.63 | 90,954,786.63 | 61,306,246.90 | 61,306,246.90 | ||
| 5 million sets of technical renovation projects and equipment | 23,568,313.34 | 23,568,313.34 | 28,032,778.68 | 28,032,778.68 | ||
| Vietnam Industrial Plant Engineering | 66,584,064.04 | 66,584,064.04 | 27,351,178.96 | 27,351,178.96 | ||
| Annual output of 3 million sets of thermal management components for new energy vehicles technical renovation project | 27,831,644.68 | 27,831,644.68 | 24,537,513.20 | 24,537,513.20 |
Annual outputof 4 millionsets of heatpumpcomponents fornew energyvehiclestechnicalrenovationproject
| Annual output of 4 million sets of heat pump components for new energy vehicles technical renovation project | 9,255,697.81 | 9,255,697.81 | 16,303,564.10 | 16,303,564.10 | ||
| Annual output of 65 million sets of intelligent control components for commercial refrigeration and air conditioning project | 11,685,886.29 | 11,685,886.29 | 14,882,282.34 | 14,882,282.34 | ||
| Sanhua new energy vehicle battery water cooled plate production line construction project | 12,697,090.98 | 12,697,090.98 | 13,525,758.03 | 13,525,758.03 | ||
| Annual output of 3 million sets of plate heat exchange units and annual output of 2 million sets of EXV electronic expansion valve components project | 49,621,126.68 | 49,621,126.68 | 11,493,210.78 | 11,493,210.78 | ||
| Others | 519,012,040.19 | 519,012,040.19 | 411,896,997.68 | 411,896,997.68 | ||
| Total | 2,746,629,632.47 | 2,746,629,632.47 | 2,036,326,757.72 | 2,036,326,757.72 |
（2）Changes of significant construction in progress in current period
Unit: RMB
| Items | Budget | Opening balance | Increased in current period | Transferred to fixed assets in the current | Other amounts decreased in current period | Closing balance | Accumulated investment to budget (%) | Completion percentage (%) | Accumulated amount of capitalized interest | Including: capitalized interest in current period | Capitalization rate for interest in current period | Fund source |
period
| period | ||||||||||||
| Annual production of 65 million sets of commercial refrigeration and air conditioning intelligent control components construction project | 1,780,550,000.00 | 14,882,282.34 | 40,415,638.32 | 43,612,034.37 | 11,685,886.29 | 75.12% | 75.12% | Raised funds | ||||
| Annual output of 50.5 million sets of high efficiency and energy saving refrigeration and air conditioning control components project | 785,570,000.00 | 46,423,909.30 | 46,423,909.30 | 31.40% | 31.40% | Raised funds | ||||||
| Annual production of 1.5 million sets of new energy thermal management components project | 650,500,000.00 | 87,649,308.50 | 5,852,065.35 | 32,162,889.51 | 61,338,484.34 | 133.25% | 99.98% | Self-raised funds | ||||
| Annual output of 11 million | 940,000,000.00 | 87,188,916.55 | 126,348,917.92 | 127,365,482.05 | 86,172,352.42 | 80.86% | 80.86% | Self-raised funds |
sets ofnewenergyvehicleshighefficiency heatexchangerassembly project
| sets of new energy vehicles high efficiency heat exchanger assembly project | ||||||||||||
| Annual output of 12.5 million sets intelligent thermal management module for new energy vehicles construction project | 1,372,650,000.00 | 208,351,289.28 | 66,864,385.94 | 275,215,675.22 | 20.05% | 20.05% | Self-raised funds | |||||
| The new energy vehicle thermal management parts production project in Guangdong Sanhua | 2,050,000,000.00 | 113,445,275.23 | 388,605,051.99 | 11,710.62 | 502,038,616.60 | 24.49% | 24.49% | Self-raised funds | ||||
| Annual production of 8 million sets of intelligent thermal management components project | ＄15,000,000.00 | 107,042,879.46 | 135,357,621.95 | 12,353,579.72 | 230,046,921.69 | 28.85% | 28.85% | Self-raised funds | ||||
| Total | 618,559,951.36 | 809,867,590.77 | 261,929,605.57 | 1,166,497,936.56 |
（3）Impairment testing of construction in progress
□ Applicable √ Not Applicable
15. Right of use assets
（1）Details of right of use assets
Unit: RMB
| Items | Houses and buildings | Vehicle | Total |
| ②. Original Carrying amount | |||
| 1.Opening balance | 515,115,808.59 | 9,520,959.07 | 524,636,767.66 |
| 2.Increased in current period | 13,964,299.67 | -51,329.76 | 13,912,969.91 |
| (1) Rent | 16,924,450.63 | 177,448.34 | 17,101,898.97 |
| (2) Converted difference in Foreign Currency Statements | -2,960,150.96 | -228,778.10 | -3,188,929.06 |
| 3.Decreased in current period | 11,321,136.66 | 2,187,277.61 | 13,508,414.27 |
| (1) Disposal | 11,321,136.66 | 2,187,277.61 | 13,508,414.27 |
| 4.Closing balance | 517,758,971.60 | 7,282,351.70 | 525,041,323.30 |
| ②. Accumulated amortization | |||
| 1.Opening balance | 208,527,758.51 | 2,854,263.62 | 211,382,022.13 |
| 2.Increased in current period | 47,082,269.03 | -38,240.91 | 47,044,028.12 |
| (1) Accrual | 47,331,258.02 | 33,144.32 | 47,364,402.34 |
| (2) Converted difference in Foreign Currency Statements | -248,988.99 | -71,385.23 | -320,374.22 |
| 3. Decreased in current period | 6,126,072.92 | 716,010.54 | 6,842,083.46 |
| (1) Disposal | 6,126,072.92 | 716,010.54 | 6,842,083.46 |
| 4.Closing balance | 249,483,954.62 | 2,100,012.17 | 251,583,966.79 |
| ②. Provision for impairment | |||
| 1.Opening balance | |||
| 2. Increased in current period | |||
| （1）Accrual | |||
| 3. Decreased in current period | |||
| （1）Disposal | |||
| 4.Closing balance | |||
| ②. Carrying amount | |||
| 1.Closing balance | 268,275,016.98 | 5,182,339.53 | 273,457,356.51 |
| 2.Opening balance | 306,588,050.08 | 6,666,695.45 | 313,254,745.53 |
（2）Impairment testing of right of use assets
□ Applicable √ Not Applicable
16. Intangible Assets
（1）Details of intangible assets
Unit: RMB
| Items | Land use right | Overseas land ownership | Application software | Intellectual property | Total |
| ②. Original Carrying amount | |||||
| 1.Opening balance | 831,065,742.54 | 87,865,763.75 | 59,242,753.80 | 52,824,940.36 | 1,030,999,200.45 |
| 2.Increased in current period | 105,661,450.35 | 82,588,023.92 | 8,064,368.17 | 196,313,842.44 | |
| （1）Acquisition | 107,940,679.65 | 88,110,446.31 | 8,786,657.92 | 204,837,783.88 | |
| （2）Internal research and development | |||||
| （3）Increased in business merger | |||||
| （4）Converted difference in Foreign Currency Statements | -2,279,229.30 | -5,522,422.39 | -722,289.75 | -8,523,941.44 | |
| 3.Decreased in current period | |||||
| （1）Disposal | |||||
4.Closing balance
| 4.Closing balance | 936,727,192.89 | 170,453,787.67 | 67,307,121.97 | 52,824,940.36 | 1,227,313,042.89 |
| ②. Accumulated amortization | |||||
| 1.Opening balance | 120,494,299.61 | 739,235.92 | 35,248,356.61 | 30,651,015.49 | 187,132,907.63 |
| 2.Increased in current period | 9,306,097.54 | 71,309.23 | 4,932,552.47 | 3,090,987.11 | 17,400,946.35 |
| （1）Accrual | 9,680,778.78 | 66,706.42 | 5,167,388.11 | 3,090,987.11 | 18,005,860.42 |
| （2) Converted difference in Foreign Currency Statements | -374,681.24 | 4,602.81 | -234,835.64 | -604,914.07 | |
| 3. Decreased in current period | |||||
| （1）Disposal | |||||
| 4.Closing balance | 129,800,397.15 | 810,545.15 | 40,180,909.08 | 33,742,002.60 | 204,533,853.98 |
| ②. Provision for impairment | |||||
| 1.Opening balance | |||||
| 2. Increased in current period | |||||
| （1）Accrual |
（2) Converted
difference in ForeignCurrency Statements
| （2) Converted difference in Foreign Currency Statements | |||||
| 3. Decreased in current period | |||||
| （1）Disposal | |||||
| 4.Closing balance | |||||
| ②. Carrying amount | |||||
| 1.Closing balance | 806,926,795.74 | 169,643,242.52 | 27,126,212.89 | 19,082,937.76 | 1,022,779,188.91 |
| 2.Opening balance | 710,571,442.93 | 87,126,527.83 | 23,994,397.19 | 22,173,924.87 | 843,866,292.82 |
At the end of this period, the proportion of intangible assets formed through internal research and development ofthe company to the balance of intangible assets is 0.00%.
17. Goodwill
（1）Original Carrying amount of goodwill
Unit: RMB
| Investee or events resulting in goodwill | Opening balance | Increased in current period | Decreased in current period | Closing balance | ||
| Due to business combination | Disposal | |||||
| R-Squared Puckett Inc. | 31,959,091.60 | 31,959,091.60 | ||||
| Goodwill of Asset Group of Zhejiang Sanhua plate Exchange Technology Co., Ltd | 5,839,387.56 | 5,839,387.56 | ||||
| Goodwill of Non-Asset Group of Zhejiang | 1,752,443.05 | 1,752,443.05 | ||||
Sanhua plateExchangeTechnologyCo., Ltd
| Sanhua plate Exchange Technology Co., Ltd | ||||||
| Total | 39,550,922.21 | 39,550,922.21 |
（2）Provision for goodwill impairment
Unit: RMB
| Investee or events resulting in goodwill | Opening balance | Increased in current period | Decreased in current period | Closing balance | ||
| Provision made | Disposal | |||||
| R-Squared Puckett Inc. | 31,959,091.60 | 31,959,091.60 | ||||
| Goodwill of Non-Asset Group of Zhejiang Sanhua plate Exchange Technology Co., Ltd | 806,602.57 | 201,650.64 | 1,008,253.21 | |||
| Total | 32,765,694.17 | 201,650.64 | 32,967,344.81 | |||
（3）Other remarks
Goodwill of Non-Asset Group of Zhejiang Sanhua plate Exchange Technology Co., Ltd. refers to thegoodwill formed by recognizing deferred income tax liabilities for asset valuation appreciation, the goodwillgenerated when Zhejiang Sanhua Commercial Co., Ltd. acquired and merged Zhejiang Sanhua plate ExchangeTechnology Co., Ltd. under non-common control, the goodwill impairment loss is provisioned synchronouslywith the reversal of deferred tax liabilities.
18. Long-term prepayments
Unit: RMB
| Items | Opening balance | Increased in current period | Amortization | Other decreases | Closing balance |
| Rental housing construction and transformation expenditure | 91,089,761.84 | 31,555,734.67 | 11,365,116.11 | 111,280,380.40 | |
| Expenditures on tooling and molds | 27,006,674.25 | 7,936,545.53 | 6,317,963.99 | 28,625,255.79 | |
| Total | 118,096,436.09 | 39,492,280.20 | 17,683,080.10 | 139,905,636.19 |
19. Deferred tax assets / deferred tax liabilities
（1）Deferred tax assets before offset
Unit: RMB
| Items | Closing balance | Opening balance | ||
| Deductible temporary difference | Deferred tax assets | Deductible temporary difference | Deferred tax assets | |
| Provision for bad debt | 339,588,141.88 | 73,560,923.63 | 261,315,206.58 | 54,641,190.49 |
| Provision for inventory write-down | 25,678,481.74 | 5,596,181.53 | 42,325,391.26 | 8,139,006.84 |
| Unrealized profit from internal transactions | 369,869,111.14 | 24,940,973.45 | 433,833,345.36 | 34,546,191.69 |
| Deductible losses | 92,293,578.38 | 23,073,394.61 | 76,215,945.95 | 18,485,636.55 |
| Deferred income- government grants | 410,380,362.68 | 72,697,603.83 | 378,102,855.53 | 68,133,180.61 |
| Provision for fixed assets impairments | 20,929,833.20 | 3,149,723.22 | 20,614,046.13 | 3,102,355.15 |
| Lease liabilities | 68,592,824.33 | 13,108,534.26 | 85,136,567.36 | 16,775,016.78 |
| Share-based payment expenses | 149,253,576.02 | 22,853,190.06 | 115,180,902.79 | 17,742,289.08 |
| Floating loss of derivative instruments | 263,750.00 | 39,562.50 | 1,228,538.00 | 184,280.70 |
| Total | 1,476,849,659.37 | 239,020,087.09 | 1,413,952,798.96 | 221,749,147.89 |
（2）Deferred tax liabilities before offset
Unit: RMB
| Items | Closing balance | Opening balance | ||
| Taxable temporary difference | Deferred tax liabilities | Taxable temporary difference | Deferred tax liabilities | |
| Appreciation of assets appraisal of the business combinations not under common control | 7,087,522.28 | 1,063,128.34 | 9,008,004.60 | 1,351,200.69 |
| Accelerated depreciation of equipment | 2,160,986,121.81 | 340,381,985.50 | 2,047,041,074.93 | 324,214,511.19 |
| Floating gain on derivatives | 3,901,784.20 | 585,267.63 | 1,463,100.00 | 219,465.00 |
| Accrued interest of certificate of deposit | 181,261,422.78 | 29,226,390.92 | 191,331,258.62 | 30,267,866.29 |
| Right-of-use assets | 68,592,824.33 | 13,108,534.28 | 85,136,567.36 | 16,775,016.78 |
| Total | 2,421,829,675.40 | 384,365,306.67 | 2,333,980,005.51 | 372,828,059.95 |
（3）Deferred tax assets or liabilities after offset shown on a net offsetting basis
Unit: RMB
| Items | Deferred tax assets and liabilities offset amount at the end of the balance amount | Closing balance of deferred tax assets or liabilities after offset | Deferred tax assets and liabilities offset amount at the beginning of the balance amount | Opening balance of deferred tax assets or liabilities after offset |
| Deferred tax assets | 136,496,569.94 | 102,523,517.15 | 65,316,990.66 | 156,432,157.23 |
| Deferred tax liabilities | 136,496,569.94 | 247,868,736.73 | 65,316,990.66 | 307,511,069.30 |
（4）Details of unrecognized deferred tax assets
Unit: RMB
| Items | Closing balance | Opening balance |
| Provision for bad debt | 62,021,991.55 | 66,300,549.08 |
| Provision for inventory write-down | 104,742,189.26 | 71,954,359.29 |
| Deductible losses of subsidiaries | 307,426,461.72 | 280,085,140.01 |
| Deferred income-government grants | 704,347.35 | 1,037,186.95 |
| Floating loss on derivatives | 36,639,620.31 | 9,490,572.02 |
| Investment losses recognized by the equity method | 19,494,293.30 | 20,324,431.29 |
| Total | 531,028,903.49 | 449,192,238.64 |
（5）Deductible losses of unrecognized deferred tax assets will expire in the following years
Unit: RMB
| Maturity years | Closing balance | Opening balance | Remarks |
| Year 2025 | 1,160,674.55 | ||
| Year 2026 | 521,923.98 | ||
| Year 2027 | 18,085,193.22 | 23,055,008.78 | |
| Year 2028 | 69,411,053.56 | 74,714,376.64 | |
| Year 2029 | 79,612,442.10 | 16,716,170.44 | |
| Year 2030 | 6,447,140.25 | 12,549,643.88 | |
| Year 2031 | 69,321,405.03 | 69,321,405.03 | |
| Year 2032 | 3,108,373.33 | 6,336,459.07 | |
| Year 2033 | 61,440,854.23 | 75,709,477.64 | |
| Total | 307,426,461.72 | 280,085,140.01 |
20. Other non-current assets
Unit: RMB
| Items | Closing balance | Opening balance |
Bookbalance
| Book balance | Provision for impairment | Carrying amount | Book balance | Provision for impairment | Carrying amount | |
| Advanced payment for non-current assets purchasing | 537,847,282.09 | 537,847,282.09 | 564,023,136.83 | 564,023,136.83 | ||
| Employee housing loan | 3,986,468.00 | 3,986,468.00 | ||||
| Total | 541,833,750.09 | 541,833,750.09 | 564,023,136.83 | 564,023,136.83 |
21. Assets with title or use right restrictions
Unit: RMB
| Items | Closing | Opening | ||||||
| Book balance | Carrying amount | Type of restrictions | Reasons for restrictions | Book balance | Carrying amount | Type of restrictions | Reasons for restrictions | |
| Cash and bank balances | 50,256,461.32 | 50,256,461.32 | Pledge | Guarantee deposit | 76,476,700.95 | 76,476,700.95 | Pledge | Guarantee deposit |
| Cash and bank balances | 281,570,379.73 | 281,570,379.73 | Pledge | Pledge financing | ||||
| Notes receivable | 1,866,025,559.72 | 1,862,419,818.56 | Pledge | Pledge financing | 2,214,363,880.38 | 2,208,446,869.75 | Pledge | Pledge financing |
| Accounts receivable | 62,493,748.40 | 59,369,060.98 | Pledge | Digital and electronic debt vouchers that have been endorsed or discounted but are not due | 66,621,446.85 | 63,290,374.51 | Pledge | Digital and electronic debt vouchers that have been endorsed or discounted but are not due |
| Total | 1,978,775,769.44 | 1,972,045,340.86 | 2,639,032,407.91 | 2,629,784,324.94 | ||||
22. Short-term borrowings
（1）Categories of short-term borrowings
Unit: RMB
| Items | Closing balance | Opening balance |
| Credit borrowings | 400,000,000.00 | 200,000,000.00 |
Overseas loan under domesticguarantee
| Overseas loan under domestic guarantee | 987,273,900.00 | 1,002,451,361.04 |
| Financial asset discount financing | 9,700,000.00 | 5,748,871.44 |
| Accrued interest | 1,226,302.82 | 3,950,146.37 |
| Total | 1,398,200,202.82 | 1,212,150,378.85 |
23. Trading financial liabilities
Unit: RMB
| Items | Closing balance | Opening balance |
| Trading financial liabilities | 3,500,000.00 | |
| Including: | ||
| Contingent consideration for business merge | 3,500,000.00 | |
| Including: | ||
| Total | 3,500,000.00 |
24. Derivative financial liabilities
Unit: RMB
| Items | Closing balance | Opening balance |
| Exchange rate derivative | 36,636,918.40 | 10,719,110.02 |
| Futures derivative | 266,451.91 | |
| Total | 36,903,370.31 | 10,719,110.02 |
25. Notes payable
Unit: RMB
| Categories | Closing balance | Opening balance |
| Bank acceptance | 3,520,145,951.34 | 3,416,711,594.64 |
| Total | 3,520,145,951.34 | 3,416,711,594.64 |
26. Accounts payable
（1）Details of accounts payable
Unit: RMB
| Items | Closing balance | Opening balance |
| Within 1 year | 4,882,360,110.46 | 4,405,227,329.99 |
| 1 to 2 years | 114,033,135.57 | 27,522,682.35 |
| 2 to 3 years | 27,678,372.62 | 10,155,105.49 |
| Over 3 years | 9,794,937.33 | 7,035,241.98 |
| Total | 5,033,866,555.98 | 4,449,940,359.81 |
27. Other payables
Unit: RMB
| Item | Closing balance | Opening balance |
| Other payables | 578,350,601.82 | 250,642,662.86 |
Total
| Total | 578,350,601.82 | 250,642,662.86 |
（1）Other payables
1）Other payables listed by nature
Unit: RMB
| Items | Closing balance | Opening balance |
| Restricted shares repo obligations | 410,702,774.29 | 118,010,274.29 |
| Demolition of loans | 33,604,994.80 | |
| Compensation for product quality loss | 7,138,336.72 | 19,370,760.58 |
| Guarantee deposit | 52,167,839.25 | 41,716,593.20 |
| Rent and property fee | 7,962,781.21 | 2,401,192.28 |
| Collection of talent awards | 2,529,968.59 | 4,114,516.00 |
| Others | 64,243,906.96 | 65,029,326.51 |
| Total | 578,350,601.82 | 250,642,662.86 |
28. Contract liabilities
Unit: RMB
| Items | Closing balance | Opening balance |
| Customer contract advance payment | 62,714,790.24 | 51,788,802.03 |
| Total | 62,714,790.24 | 51,788,802.03 |
29. Employee benefits payable
（1）Details of employee benefits payable
Unit: RMB
| Items | Opening balance | Increased in current period | Decreased in current period | Closing balance |
| ②. Short-term employee benefits | 581,554,274.99 | 1,875,917,342.94 | 1,974,595,148.52 | 482,876,469.41 |
| ②. Post-employment benefits - defined contribution plan | 12,017,618.66 | 66,644,195.72 | 71,378,470.28 | 7,283,344.10 |
| ②. Termination benefits | 5,229,352.69 | 1,304,946.95 | 3,924,405.74 | |
| Total | 598,801,246.34 | 1,942,561,538.66 | 2,047,278,565.75 | 494,084,219.25 |
（2）Details of Short-term employee benefits
Unit: RMB
| Items | Opening balance | Increased in current period | Decreased in current period | Closing balance |
| 1. Wage, bonus, allowances and subsidy | 528,759,992.88 | 1,416,192,432.70 | 1,538,847,892.16 | 406,104,533.42 |
| 2. Employee welfare fund | 805,549.18 | 68,972,957.07 | 69,197,652.44 | 580,853.81 |
| 3. Social insurance | 18,721,770.38 | 60,674,873.01 | 56,385,318.42 | 23,011,324.97 |
premium
| premium | ||||
| Including: Medicare premium | 5,616,918.92 | 35,782,799.71 | 36,612,331.42 | 4,787,387.21 |
| Occupational injuries premium | 747,127.97 | 2,461,898.71 | 2,911,553.77 | 297,472.91 |
| Maternity premium | 121,875.86 | 112,835.63 | 80,881.69 | 153,829.80 |
| Overseas social security contributions | 12,235,847.63 | 22,317,338.96 | 16,780,551.54 | 17,772,635.05 |
| 4. Housing provident fund | 19,286.00 | 37,579,813.27 | 37,569,495.27 | 29,604.00 |
| 5.Dispatching remuneration | 23,811,068.55 | 281,568,793.93 | 263,383,478.90 | 41,996,383.58 |
| 6. Stock appreciation option | 7,879,890.00 | 760,620.00 | 8,640,510.00 | |
| 7.Others | 1,556,718.00 | 10,167,852.96 | 9,211,311.33 | 2,513,259.63 |
| Total | 581,554,274.99 | 1,875,917,342.94 | 1,974,595,148.52 | 482,876,469.41 |
（3）Details of defined contribution plan
Unit: RMB
| Items | Opening balance | Increased in current period | Decreased in current period | Closing balance |
| 1. Basic endowment insurance premium | 11,603,727.01 | 64,425,459.91 | 68,994,165.93 | 7,035,020.99 |
| 2. Unemployment insurance premium | 413,891.65 | 2,218,735.81 | 2,384,304.35 | 248,323.11 |
| Total | 12,017,618.66 | 66,644,195.72 | 71,378,470.28 | 7,283,344.10 |
30. Taxes and rates payable
Unit: RMB
| Items | Closing balance | Opening balance |
| Enterprise income tax | 163,522,335.15 | 186,575,216.87 |
| VAT | 53,318,488.42 | 30,168,036.77 |
| Housing property tax | 14,269,671.01 | 23,482,515.63 |
| Land use tax | 7,466,399.06 | 12,974,469.60 |
| Urban maintenance and construction tax | 4,868,921.43 | 5,330,039.26 |
| Education surcharge | 2,463,553.88 | 2,459,912.39 |
| Local education surcharge | 1,643,109.17 | 1,639,941.61 |
| Overseas tax | 8,544,900.23 | 99,516,370.91 |
| Individual income tax | 9,625,590.52 | 12,843,108.53 |
| Others | 6,550,789.65 | 7,407,179.62 |
| Total | 272,273,758.52 | 382,396,791.19 |
31. Non-current liabilities due within one year
Unit: RMB
| Items | Closing balance | Opening balance |
Guaranteed borrowings
| Guaranteed borrowings | 230,000,000.00 | 1,370,000,000.00 |
| Accrued interest | 1,904,138.91 | 1,195,277.78 |
| Lease liabilities | 60,665,100.54 | 68,897,976.15 |
| Total | 292,569,239.45 | 1,440,093,253.93 |
32. Other current liabilities
Unit: RMB
| Items | Closing balance | Opening balance |
| Output tax to be written off | 2,837,216.89 | 2,099,986.27 |
| Total | 2,837,216.89 | 2,099,986.27 |
33. Long-term borrowings
（1）Categories of long-term borrowings
Unit: RMB
| Items | Closing balance | Opening balance |
| Guaranteed borrowings | 2,220,000,000.00 | 1,030,000,000.00 |
| Accrued interest | 801,111.13 | |
| Total | 2,220,000,000.00 | 1,030,801,111.13 |
34. Leased liabilities
Unit: RMB
| Items | Closing balance | Opening balance |
| Lease payables | 259,007,745.00 | 290,193,458.01 |
| Less：Leased liabilities due within 1 year | -60,665,100.54 | -68,897,976.15 |
| Total | 198,342,644.46 | 221,295,481.86 |
35. Long-term payables
Unit: RMB
| Items | Closing balance | Opening balance |
| Long-term payables | 17,497,031.70 | 11,290,788.32 |
| Total | 17,497,031.70 | 11,290,788.32 |
（1）Long-term payables listed by nature
Unit: RMB
| Items | Closing balance | Opening balance |
| Stock appreciation rights deposit | 9,657,551.70 | 3,499,818.32 |
| Retention money | 7,839,480.00 | 7,790,970.00 |
| Total | 17,497,031.70 | 11,290,788.32 |
36. Long-term employee benefits payable
（1）Table of long-term employee benefits payable
Unit: RMB
| Items | Closing balance | Opening balance |
| Long-term employee rights protection funds | 37,014,460.55 | 39,840,362.77 |
| Total | 37,014,460.55 | 39,840,362.77 |
37. Deferred income
Unit: RMB
| Items | Opening balance | Increased in current period | Decreased in current period | Closing balance | Reasons for balance |
| Government grants | 379,140,042.48 | 66,427,000.00 | 34,482,332.45 | 411,084,710.03 | Related to assets |
| Total | 379,140,042.48 | 66,427,000.00 | 34,482,332.45 | 411,084,710.03 | -- |
38. Other non-current liabilities
Unit: RMB
| Items | Closing balance | Opening balance |
| Engineering agent construction fund | 18,154,107.25 | 18,154,107.25 |
| Total | 18,154,107.25 | 18,154,107.25 |
39. Share capital
Unit: RMB
| Opening balance | Changed amount of current period（+/-） | Closing balance | |||||
| Issue of new shares | Bonus shares | Reserve transferred to shares | Others | Subtotal | |||
| Total shares | 3,732,615,535.00 | 3,732,615,535.00 | |||||
40. Capital reserve
Unit: RMB
| Items | Opening balance | Increased in current period | Decreased in current period | Closing balance |
| Capital premium（Share premium） | 3,296,004,248.86 | 291,333,303.19 | 3,004,670,945.67 | |
| Other capital reserve | 159,639,317.12 | 34,072,715.35 | 193,712,032.47 | |
| Total | 3,455,643,565.98 | 34,072,715.35 | 291,333,303.19 | 3,198,382,978.14 |
41. Treasury shares
Unit: RMB
| Items | Opening balance | Increased in current period | Decreased in current period | Closing balance |
| Restricted shares | 118,009,850.00 | 292,692,500.00 | 3,057,250.00 | 407,645,100.00 |
| Repo shares | 305,458,741.57 | 299,977,735.21 | 577,662,900.00 | 27,773,576.78 |
| Total | 423,468,591.57 | 592,670,235.21 | 580,720,150.00 | 435,418,676.78 |
42. Other comprehensive income (OCI)
Unit: RMB
| Items | Opening balance | Changed amount of the current period | Closing balance | |||||
| Current period cumulative before income tax | Less: OCI carried forward transferred to profit or loss | Less: OCI carried forward transferred to undistributed profit | Less: income tax expense | Attributable to the parent Company after tax | Attributable to Non-controlling interest after tax | |||
| Items to be reclassified subsequently to profit or loss | 114,757,064.28 | -170,919,517.87 | -170,919,517.87 | -56,162,453.59 | ||||
| Converted difference in Foreign | 114,757,064.28 | -170,919,517.87 | -170,919,517.87 | -56,162,453.59 | ||||
| Other comprehensive income in total | 114,757,064.28 | -170,919,517.87 | -170,919,517.87 | -56,162,453.59 | ||||
43. Surplus reserve
Unit: RMB
| Items | Opening balance | Increased in current period | Decreased in current period | Closing balance |
| Statutory surplus reserve | 985,419,187.09 | 985,419,187.09 | ||
| Discretionary surplus reserve | 8,681,137.20 | 8,681,137.20 | ||
| Reserve fund | 17,813,919.38 | 17,813,919.38 | ||
| Total | 1,011,914,243.67 | 1,011,914,243.67 |
44. Undistributed profit
Unit: RMB
| Items | Current period | Previous period |
| Balance before adjustment at the end of the | 10,002,942,167.43 | 8,133,336,242.88 |
previous period
| previous period | ||
| Balance after adjustment at the end of the previous period | 10,002,942,167.43 | 8,133,336,242.88 |
| Add: Net profit attributable to shareholders of the parent Company for current year | 1,514,515,444.75 | 1,394,760,848.85 |
| Payable dividends on ordinary shares | 926,626,153.50 | 716,972,510.40 |
| Closing balance | 10,590,831,458.68 | 8,811,124,581.33 |
45. Operating revenue and Operating cost
Unit: RMB
| Items | Current period cumulative | Preceding period comparative | ||
| Revenue | Cost | Revenue | Cost | |
| Main operations | 13,339,516,056.72 | 9,600,581,039.21 | 12,098,477,558.91 | 8,896,073,559.94 |
| Other operations | 336,556,104.36 | 319,809,279.72 | 430,443,066.68 | 412,587,356.33 |
| Total | 13,676,072,161.08 | 9,920,390,318.93 | 12,528,920,625.59 | 9,308,660,916.27 |
46. Taxes and surcharges
Unit: RMB
| Items | Current period cumulative | Preceding period comparative |
| Urban maintenance and construction tax | 23,537,077.44 | 19,076,010.08 |
| Education surcharge | 11,398,760.51 | 9,549,962.48 |
| Housing property tax | 16,482,455.15 | 13,259,614.90 |
| Land use tax | 7,044,828.51 | -2,555,201.21 |
| Stamp duty | 12,321,752.89 | 9,273,589.74 |
| Local education surcharge | 7,620,732.33 | 6,366,641.58 |
| Local foundation for water works | 705,258.48 | 615,607.60 |
| Others | 5,122,564.97 | 3,791,190.15 |
| Total | 84,233,430.28 | 59,377,415.32 |
47. Administrative expenses
Unit: RMB
| Items | Current period cumulative | Preceding period comparative |
| Labor cost | 563,739,428.50 | 375,657,341.88 |
| Share-based payment remuneration | 28,245,298.77 | 33,770,669.95 |
| Depreciation and amortization expense | 84,573,992.63 | 69,142,975.31 |
| Office expense | 113,589,529.35 | 76,921,701.21 |
| Intermediary organ expense | 41,778,051.43 | 28,816,004.69 |
| Entertainment expense | 12,456,327.05 | 10,229,586.21 |
| Vehicle expense | 12,573,736.97 | 6,229,475.81 |
| Sporadic renovation expense in the park | 9,329,354.50 | 4,904,430.90 |
| Others | 21,713,584.30 | 14,184,388.69 |
| Total | 887,999,303.50 | 619,856,574.65 |
48. Selling expenses
Unit: RMB
| Items | Current period cumulative | Preceding period comparative |
| Labor cost | 174,823,710.59 | 144,826,488.29 |
Entertainment expense
| Entertainment expense | 26,263,620.05 | 23,340,048.05 |
| Warehousing, freight and miscellaneous charges | 53,153,942.63 | 45,966,149.44 |
| Travel expense | 19,582,339.16 | 15,714,428.65 |
| Advertising expense | 7,867,850.80 | 8,873,624.72 |
| Others | 15,311,002.51 | 25,410,991.12 |
| Total | 297,002,465.74 | 264,131,730.27 |
49. R&D expenses
Unit: RMB
| Items | Current period cumulative | Preceding period comparative |
| Labor cost | 387,224,362.76 | 336,153,051.01 |
| Direct input expense | 181,888,526.25 | 176,171,267.76 |
| Depreciation and amortization expense | 25,381,756.53 | 20,543,216.56 |
| Mold manufacturing expense | 12,203,836.61 | 29,986,237.50 |
| Royalties | 6,041,782.02 | 4,486,936.80 |
| Outsourcing R&D expense | 1,130,148.71 | 784,296.40 |
| Others | 18,741,495.08 | 12,144,626.01 |
| Total | 632,611,907.96 | 580,269,632.04 |
50. Financial expenses
Unit: RMB
| Items | Current period cumulative | Preceding period comparative |
| Interest expense | 71,736,060.65 | 126,688,323.68 |
| Including: Interest on bond payable | 67,598,047.15 | |
| Interest on lease liabilities | 3,186,027.96 | 795,945.00 |
| Interest income | -84,853,231.77 | -87,661,462.57 |
| Exchange gains or losses | -42,024,236.94 | -194,192,937.27 |
| Others | 3,359,698.51 | 3,505,706.15 |
| Total | -51,781,709.55 | -151,660,370.01 |
51. Other income
Unit: RMB
| Source of the other income | Current period cumulative | Preceding period comparative |
| Government subsidies related to assets | 34,482,332.45 | 15,329,655.57 |
| Government subsidies related to revenue | 63,514,083.32 | 45,391,151.86 |
| VAT extra deductions | 28,494,105.96 | |
| Handling fees for withholding individual income tax | 2,061,490.41 | 2,096,068.10 |
| Total | 128,552,012.14 | 62,816,875.53 |
52. Gains or losses on changes in fair value
Unit: RMB
Items
| Items | Current period cumulative | Preceding period comparative |
| Floating income of bank financing products | 388,505.61 | |
| Floating income of futures contracts | 1,735,630.85 | -4,993,318.34 |
| Floating income of foreign exchange contract | -44,954,858.33 | -83,834,712.30 |
| Floating income on option contracts | 141,659.20 | -375,000.00 |
| Total | -43,077,568.28 | -88,814,525.03 |
53. Investment income
Unit: RMB
| Items | Current period cumulative | Preceding period comparative |
| Investment income from long-term equity investments under equity method | 5,419,862.01 | 5,296,750.30 |
| Gains and losses on bank financial products | 1,168,153.45 | 86,531.50 |
| Gains and losses on exchange rate derivatives | -31,194,534.61 | -53,498,269.42 |
| Gains and losses on futures derivatives | 11,406,235.86 | 9,338,561.14 |
| Income from derecognition of financial assets | -8,174,613.92 | |
| Others | 1,520,214.66 | 808,967.09 |
| Total | -11,680,068.63 | -46,142,073.31 |
54. Credit impairment loss
Unit: RMB
| Items | Current period cumulative | Preceding period comparative |
| Provision for bad debt | -76,800,982.89 | -72,153,972.68 |
| Total | -76,800,982.89 | -72,153,972.68 |
55. Assets impairment loss
Unit: RMB
| Items | Current period cumulative | Preceding period comparative |
| I. Inventory write-down loss and contract performance cost impairment loss | -44,232,452.69 | -24,318,451.98 |
| II. Goodwill impairment loss | -201,650.64 | -604,951.92 |
| Total | -44,434,103.33 | -24,923,403.90 |
56. Gains on asset disposal
Unit: RMB
| Items | Current period cumulative | Preceding period comparative |
Gains on disposal of assets
| Gains on disposal of assets | -245,261.28 | -406,527.50 |
57. Non-operating revenue
Unit: RMB
| Items | Current period cumulative | Preceding period comparative | Amount recorded into the current non-recurring profit and loss |
| Exempted payment | 996,334.93 | 2,349,197.54 | 996,334.93 |
| Compensation and penalty income | 721,658.19 | 1,610,099.34 | 721,658.19 |
| Gains from retirement of fixed assets | 894,349.32 | 152,173.06 | 894,349.32 |
| Others | 1,946,688.19 | 452,881.99 | 1,946,688.19 |
| Total | 4,559,030.63 | 4,564,351.93 | 4,559,030.63 |
58. Non-operating expenditures
Unit: RMB
| Items | Current period cumulative | Preceding period comparative | Amount included in non-recurring profit or loss |
| Losses on retirement of fixed assets | 6,795,429.61 | 2,809,729.96 | 6,795,429.61 |
| Litigation for damages | 1,173,340.79 | 1,767,511.58 | 1,173,340.79 |
| Donation expenditure | 103,060.00 | 106,988.95 | 103,060.00 |
| Others | 455,874.02 | 576,508.42 | 455,874.02 |
| Total | 8,527,704.42 | 5,260,738.91 | 8,527,704.42 |
59. Income tax expenses
（1）Income tax expenses
Unit: RMB
| Items | Current period cumulative | Preceding period comparative |
| Current period income tax expenses | 334,407,725.47 | 231,976,676.94 |
| Deferred income tax expenses | -2,111,579.48 | 31,493,520.51 |
| Total | 332,296,145.99 | 263,470,197.45 |
（2）Reconciliation of accounting profit to income tax expenses
Unit: RMB
| Items | Current period cumulative |
| Income before tax | 1,853,961,798.16 |
| Income tax expense calculated at the applicable tax rate | 347,144,631.93 |
| Adjustment of preliminary income tax expense settlement and payment | 21,374,962.41 |
| Plus deduction of R&D expenses | -72,486,768.71 |
| Others | 36,263,320.36 |
| Income tax expenses | 332,296,145.99 |
60. Other comprehensive income
Please refer to the notes of balance sheet items and other comprehensive income for details.
61. Notes to items of the consolidated cash flow statement
（1）Cash related to operating activities
Other cash receipts related to operating activities
Unit: RMB
| Items | Current period cumulative | Preceding period comparative |
| Government grants | 86,791,211.40 | 41,527,261.26 |
| Interest income | 102,038,912.05 | 54,965,021.52 |
| Rental income | 5,453,306.75 | 5,521,293.13 |
| Guarantee deposit | 19,792,809.15 | 7,811,313.61 |
| Net change of restricted funds | 19,574,857.22 | |
| Others | 4,520,771.35 | 5,270,609.75 |
| Total | 238,171,867.92 | 115,095,499.27 |
Other cash payments related to operating activities
Unit: RMB
| Items | Current period cumulative | Preceding period comparative |
| Guarantee deposit | 10,451,246.05 | 15,255,451.57 |
| Net change of restricted funds | 2,046,000.00 | |
| Period expense payments | 476,515,154.85 | 368,383,438.30 |
| Total | 486,966,400.90 | 385,684,889.87 |
（2）Cash related to investment activities
Other cash receipts related to investing activities
Unit: RMB
| Items | Current period cumulative | Preceding period comparative |
| Redemption of certificates of deposit and financial products | 569,000,000.00 | 440,000,000.00 |
| Net change of restricted funds | 19,157,342.43 | 14,311,380.20 |
| Income from futures contract derivatives settlement | 10,804,591.38 | |
| Income from national debt reverse repurchase | 496,290.86 | |
| Total | 599,458,224.67 | 454,311,380.20 |
Important cash received related to investment activities
Unit: RMB
Items
| Items | Current period cumulative | Preceding period comparative |
| Compensation for land collection and storage | 546,216,590.00 | |
| Total | 546,216,590.00 |
Other cash payments related to investing activities
Unit: RMB
| Items | Current period cumulative | Preceding period comparative |
| Subscription of certificates of deposit | 300,000,000.00 | 20,000,000.00 |
| Net change of restricted funds | 5,512,961.02 | 1,700,028.28 |
| Loss on exchange rate derivatives instrument settlement | 30,592,890.13 | 53,498,269.42 |
| Payment of subsidiaries' performance commitments to minority shareholders | 3,500,000.00 | |
| Purchase of financial products | 100,000,000.00 | |
| Total | 439,605,851.15 | 75,198,297.70 |
（3）Cash related to financing activities
Other cash receipts related to financing activities
Unit: RMB
| Items | Current period cumulative | Preceding period comparative |
| Net change of restricted funds | 13,000,000.00 | 27,789,205.90 |
| Loans from other banks | 11,837,146.85 | |
| Accounts receivable factoring | 16,918,063.05 | |
| Total | 29,918,063.05 | 39,626,352.75 |
Other cash payments related to financing activities
Unit: RMB
| Items | Current period cumulative | Preceding period comparative |
| Repo shares expenses（including restricted stock) | 299,977,735.21 | |
| Rental expenses | 51,687,909.71 | 45,508,985.35 |
| Net change of restricted funds | 7,000,000.00 | 22,989,492.00 |
| Interest of loans from other banks | 3,898,060.02 | |
| Total | 362,563,704.94 | 68,498,477.35 |
Changes in liabilities related to financing activities
√ Applicable □ Not Applicable
Unit: RMB
| Items | Opening balance | Increase | Decrease | Closing balance | ||
| Changes in cash | Changes in non-cash | Changes in cash | Changes in non-cash | |||
| Short-term borrowings | 1,212,150,378.85 | 200,000,000.00 | 13,747,755.93 | 202,420.10 | 1,398,200,202.82 | |
| Long-term borrowings (including long-term borrowings due within one year) | 2,401,996,388.91 | 1,140,000,000.00 | 49,907,750.00 | 1,140,000,000.00 | 2,451,904,138.91 | |
| Lease liabilities (lease liabilities due within one year) | 290,193,458.01 | 20,673,084.36 | 51,687,909.71 | 170,887.66 | 259,007,745.00 | |
| Dividends payable | 926,626,153.00 | 926,626,153.00 | ||||
| Total | 3,904,340,225.77 | 1,340,000,000.00 | 997,206,987.36 | 2,132,061,818.64 | 373,307.76 | 4,109,112,086.73 |
62. Supplement information to the cash flow statement
（1）Supplement information to the cash flow statement
Unit: RMB
| Supplement information | Current period cumulative | Preceding period comparative |
| 1. Reconciliation of net profit to cash flow from operating activities: | -- | -- |
| Net profit | 1,521,665,652.17 | 1,414,494,515.73 |
| Add: Provision for assets impairment loss | 121,235,086.22 | 97,077,376.58 |
| Depreciation of fixed assets, oil and gas assets, productive biological assets | 345,804,856.82 | 312,096,036.62 |
| Amortization of right-of-use assets | 47,364,402.34 | 45,452,675.72 |
| Amortization of intangible assets | 18,005,860.42 | 11,005,377.33 |
| Amortization of Long-term prepayments | 17,683,080.10 | 11,273,974.46 |
| Loss on disposal of fixed assets, intangible assets and other long-term assets (Less: gains) | 245,261.28 | 406,527.50 |
| Loss on retirement of fixed assets (Less: gains) | 5,901,080.29 | 2,657,556.90 |
| Losses on changes in fair value (Less: gains) | 43,077,568.28 | 88,814,525.03 |
Financial expenses (Less:
gains)
| Financial expenses (Less: gains) | -10,579,748.21 | 94,787,827.63 |
| Investment losses (Less: gains) | 13,200,283.29 | 38,728,801.02 |
| Decrease of deferred tax assets (Less: increase) | 53,908,640.08 | 144,696,035.59 |
| Increase of deferred tax liabilities (Less: decrease) | -59,642,332.57 | -114,420,506.63 |
| Decrease of inventories (Less: increase) | 46,793,721.65 | 305,426,294.80 |
| Decrease of operating receivables (Less: increase) | -1,646,868,032.49 | -1,460,686,740.42 |
| Increase of operating payables (Less: decrease) | 609,592,921.15 | 672,088,278.73 |
| Others | 34,241,575.35 | 54,775,037.02 |
| Net cash flows from operating activities | 1,161,629,876.17 | 1,718,673,593.61 |
| 2. Significant investing and financing activities not related to cash receipts and payments: | ||
| Conversion of debt into capital | ||
| Convertible bonds due within one year | ||
| Fixed assets leased in under finance leases | ||
| 3. Net changes in cash and cash equivalents: | ||
| Cash at the end of the period | 2,575,560,166.98 | 2,050,600,180.32 |
| Less: Cash at the beginning of the period | 3,624,955,498.84 | 2,050,328,601.77 |
| Add: Cash equivalents at the end of the period | ||
| Less: Cash equivalents at the beginning of the period | ||
| Net increase of cash and cash equivalents | -1,049,395,331.86 | 271,578.55 |
（2）Composition of cash and cash equivalents
Unit: RMB
| Items | Closing balance | Opening balance |
| I.Cash | 2,575,560,166.98 | 3,624,955,498.84 |
| Including: Cash on hand | 611,537.90 | 291,216.13 |
| Cash in bank that can be readily drawn on demand | 2,574,871,533.06 | 3,624,655,126.84 |
| Other monetary funds that can be readily for payment | 77,096.02 | 9,155.87 |
| III. Cash and cash equivalents at end of year | 2,575,560,166.98 | 3,624,955,498.84 |
63. Assets with restricted ownership or usage
Unit: RMB
| Items | Book Balance | Carrying amount | Reasons for restriction |
| Cash and bank balances | 50,256,461.32 | 50,256,461.32 | Margin Deposit |
| Notes receivable | 1,866,025,559.72 | 1,862,419,818.56 | Pledge financing |
| Accounts receivable | 62,493,748.40 | 59,369,060.98 | Electronic debt instruments that have been transferred for payment or factored for financing but not yet matured |
| Total | 1,978,775,769.44 | 1,972,045,340.86 |
64. Monetary items in foreign currencies
（1）Monetary items in foreign currencies
Unit: RMB
| Items | Closing balance in foreign currencies | Exchange rate | RMB equivalent |
| Cash and Bank Balances | |||
| Including: USD | 153,701,911.69 | 7.1268 | 1,095,402,784.21 |
| EUR | 17,117,419.72 | 7.6617 | 131,148,534.65 |
| Other currencies | 159,052,672.82 | ||
| Subtotal | 1,385,603,991.68 | ||
| Accounts receivable | |||
| Including: USD | 302,133,839.07 | 7.1268 | 2,153,247,444.28 |
| EUR | 62,781,538.94 | 7.6617 | 481,013,316.87 |
| Other currencies | 139,979,881.67 | ||
| Subtotal | 2,774,240,642.82 | ||
| Other receivables | |||
| Including: USD | 536,034.19 | 7.1268 | 3,820,208.47 |
| EUR | 190,570.11 | 7.6617 | 1,460,091.03 |
| Other currencies | 20,848,051.54 | ||
| Subtotal | 26,128,351.04 | ||
| Short-term borrowings | |||
| Including: USD | 45,000,000.00 | 7.1268 | 320,706,000.00 |
| EUR | 87,000,000.00 | 7.6617 | 666,567,900.00 |
| Subtotal | 987,273,900.00 | ||
| Derivative financial liabilities | |||
| Including: USD | 4,605,710.49 | 7.1268 | 32,823,977.52 |
| Accounts payable | |||
| Including: USD | 35,988,707.73 | 7.1268 | 256,484,322.25 |
| EUR | 2,240,643.81 | 7.6617 | 17,167,140.70 |
| Other currencies | 172,265,323.10 | ||
| Subtotal | 445,916,786.05 | ||
| Other payables | |||
| Including: USD | 6,036,575.43 | 7.1268 | 43,021,465.77 |
| EUR | 833,491.45 | 7.6617 | 6,385,961.44 |
Other currencies
| Other currencies | 117,334,302.61 | ||
| Subtotal | 166,741,729.82 | ||
| Non-current liabilities due within one year | |||
| Including: USD | 1,462,860.25 | 7.1268 | 10,425,512.43 |
| EUR | 1,293,471.37 | 7.6617 | 9,910,189.60 |
| Other currencies | 6,256,029.94 | ||
| Subtotal | 26,591,731.97 | ||
| Long-term payables | |||
| Including: USD | 1,884,809.65 | 7.1268 | 13,432,661.41 |
| EUR | 473,611.75 | 7.6617 | 3,628,671.14 |
| Other currencies | 459,582.03 | ||
| Subtotal | 17,520,914.58 | ||
| Lease liabilities | |||
| Including: USD | 5,334,628.91 | 7.1268 | 38,018,833.32 |
| EUR | 7,526,042.93 | 7.6617 | 57,662,283.12 |
| Other currencies | 19,025,911.58 | ||
| Subtotal | 114,707,028.02 |
（2）Notes on overseas operating entities, including for the significant overseas operating entities, its mainoperating locations, reporting currency and the basis for selection should be disclosed, and the reason forchanges in reporting currency should also be disclosed.
√ Applicable □ Not Applicable
The Company has several overseas subsidiaries, locate in the United States, Europe, Japan, Poland, Mexico,Vietnam and other countries, where US dollars, Euro, Japanese yen, Polish zloty, Mexican pesos Vietnamesedong , etc. are used as the standard reporting currency.
65. Government grants
（1）Government grants increased in the current period
Unit: RMB
| Items | Amount |
| Government grants related to assets | 66,427,000.00 |
| Including: Included into deferred income | 66,427,000.00 |
| Government grants related to income | 63,514,083.32 |
| Including: Included into other income | 63,514,083.32 |
| Total | 129,941,083.32 |
（2）Liabilities related to government grants
Unit:RMB
| Items | Opening balance | Increase | Carryover | Closing balance | Remarks |
Deferredincome
| Deferred income | 379,140,042.48 | 66,427,000.00 | 34,482,332.45 | 411,084,710.03 | Related to assets |
| Total | 379,140,042.48 | 66,427,000.00 | 34,482,332.45 | 411,084,710.03 |
（3）Government grants included into profit or loss
Unit: RMB
| Items | Current period cumulative | Preceding period comparative |
| Other income | 97,996,415.77 | 60,720,807.43 |
| Total | 97,996,415.77 | 60,720,807.43 |
Ⅷ. Interest in other entities
1. Composition of enterprise group
（1）The company includes subsidiaries such as Zhejiang Sanhua Automotive Parts Co., Ltd. in the scopeof consolidated financial statements.
（2）Basic information of important subsidiaries
| Subsidy name | Registered capital | Main operating place and place of registration | Business nature | Holding proportion | Acquisition method | |
| Direct | Indirect | |||||
| Zhejiang Sanhua Automotive Components Co., Ltd. | 216,000 | Zhejiang | Automotive components | 100.00% | Business combination under common control | |
| Sanhua (hangzhou) Micro Channel Heat Exchanger Co., Ltd | 36,000 | Zhejiang | Refrigeration components | 100.00% | Business combination under common control | |
| Zhejiang Sanhua Trading Co., Ltd | 5,000 | Zhejiang | Refrigeration components | 100.00% | Investment and establishment | |
| Zhejiang Sanhua Commercial Refrigeration Co. Ltd | 165,529 | Zhejiang | Refrigeration components | 100.00% | Investment and establishment | |
| Sanhua International Inc. | 37.55 million USD | USA | Business | 100.00% | Investment and establishment | |
| Wuhu | 30,000 | Anhui | Refrigeration | 100.00% | Investment | |
SanhuaAutomaticControlComponentsCo., Ltd
| Sanhua Automatic Control Components Co., Ltd | components | and establishment |
2. Changes in the scope of consolidation due to other reasons
（1）Increase in consolidation scope
| Subsidy name | Equity acquisition method | Date of equity acquisition |
| Zhejiang Sanhua Intelligent Drive Co., Ltd. | New investments | 2024-06-04 |
| Zhejiang Shengtai Paper Industry Co., Ltd. | New investments | 2024-06-20 |
| SANHUATROY PROPERTY MANAGEMENT,LLC | New investments | 2024-06-28 |
（2）Reduction in consolidation scope
| Subsidy name | Equity acquisition method | Date of equity acquisition |
| American Tubing International Leverage Lender LLC | Liquidation and cancellation | 2024-01-24 |
3. significant wholly-owned subsidiaries
As of June 30, 2024, the company has no significant wholly-owned subsidiaries.
4. Equity in joint ventures or associates
（1）Significant joint ventures and associates
As of June 30, 2024, the company has no significant joint ventures and associates.
（2）Aggregated financial information of insignificant joint ventures and associates
Unit: RMB
| Items | Closing balance/Current period cumulative | Opening balance/Preceding period comparative |
| Associates | ||
| Total book value of investment | 37,094,293.30 | 37,924,431.29 |
| Total of the following items calculated by shareholding ratio | 5,419,862.01 | 5,296,750.30 |
| -Net profit | 5,419,862.01 | 5,296,750.30 |
Items
| Items | Closing balance/Current period cumulative | Opening balance/Preceding period comparative |
| -Total comprehensive income | 5,419,862.01 | 5,296,750.30 |
Ⅸ. Risks Related to Financial InstrumentsIn risk management, the Company aims to seek the appropriate balance between the risks and benefits fromits use of financial instruments and to mitigate the adverse effects that the risks of financial instruments have onthe Company’s financial performance, so as to maximize the profits of shareholders and other equity investors.Based on such risk management objectives, the Company’s risk management policies are established to identifyand analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor risks andadherence to limits on a timely and reliable basis.The company faces various risks related to financial instruments in daily activities, mainly including creditrisk, liquidity risk, and market risk. The management has reviewed and approved policies for managing theserisks, summarized as follows.
(1) Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party byfailing to discharge an obligation.
1. Credit risk management practice
(1) Evaluation method of credit risk
At each balance sheet date, the Company assesses whether the credit risk on a financial instrument hasincreased significantly since initial recognition. When assessing whether the credit risk has increased significantlysince initial recognition, the Company takes into account reasonable and supportable information, which isavailable without undue cost or effort, including qualitative and quantitative analysis based on historical data,external credit risk rating, and forward-looking information. The Company determines the changes in default riskof financial instruments during the estimated lifetime through comparison of the default risk at the balance sheetdate and the initial recognition date, on an individual basis or a collective basis.
The Company considers the credit risk on a financial instrument has increased significantly when one ormore of the following qualitative and quantitative standards are met:
1) Quantitative standard mainly relates to the scenario in which, at the balance sheet date, the probability ofdefault in the remaining lifetime has risen by more than a certain percentage compared with the initial recognition;
2) Qualitative standard mainly relates to significant adverse changes in the debtor’s operation or financialposition, present or expected changes in technology, market, economy or legal environment that will havesignificant adverse impact on the debtor’s repayment ability.
(2) Definition of default and credit-impaired assets
A financial instrument is defined as defaulted when one or more following events have occurred, of whichthe standard is consistent with that for credit-impairment:
1) significant financial difficulty of the debtor;
2) a breach of binding clause of contract;
3) it is very likely that the debtor will enter bankruptcy or other financial reorganization;
4) the creditor of the debtor, for economic or contractual reasons relating to the debtor’s financial difficulty,having granted to the debtor a concession(s) that the creditor would not otherwise consider.
2. Measurement of expected credit losses
The key factors in the measurement of expected credit loss include the probability of default, loss rate of
default, and exposure to default risk. The Company develops a model of the probability of default, loss rate ofdefault, and exposure to default risk on the basis of quantitative analysis of historical data (e.g. counterpartyrating, guarantee measures and collateral type, payment method, etc.) and forward-looking information.
3. The adjustment table for the opening balance and closing balance of financial instrument loss reserves isdetailed in the relevant notes to these financial statements.
4. Exposure to credit risk and concentration of credit risk
The Company’s credit risk is primarily attributable to cash and bank balances and receivables. In order tocontrol such risks, the Company has taken the following measures:
(1) Cash and bank balances
The Company deposits its bank balances and other cash and bank balances in financial institutions withrelatively high credit levels, hence, its credit risk is relatively low.
(2) Receivables
The Company performs credit assessment on customers using credit settlement on a continuous basis. TheCompany selects credible and well-reputed customers based on credit assessment result, and conducts ongoingmonitoring on balance of receivables, to avoid significant risks in bad debts.
The Company conducts transactions with recognized and creditworthy customers, and credit risk is centrallymanaged by customers. The Company had certain credit concentration risks, the account receivables mainlyoriginate from the top five customers with outstanding balances.The accounts receivable from the Company'scustomers have been digitized and electronic, with certain credit liquidity. In addition, the balance of theCompany's accounts receivable basically does not hold collateral or other credit enhancements.
The maximum amount of exposure to credit risk of the Company is the carrying amount of each financialasset at the balance sheet.
(2) Liquidity risk
Liquidity risk is the risk that the Company may encounter deficiency of funds in meeting obligationsassociated with cash or other financial assets settlement, which is possibly attributable to failure in sellingfinancial assets at fair value on a timely basis, or failure in collecting liabilities from counterparties of contracts, orearly redemption of debts, or failure in achieving estimated cash flows.
In order to control such risk, the Company comprehensively utilizes financing tools such as notes settlement,bank borrowings, etc. and adopts long-term and short-term financing methods to optimize financing structures,and finally maintains a balance between financing sustainability and flexibility. The Company has obtained creditlimit from several commercial banks to meet working capital requirements and expenditures.
The financial liabilities of the company are classified and presented based on remaining time period tillmaturity in the table below:
| Items | Closing balance | ||||
| Carrying amount | Contract amount not yet discounted | Within 1 year | 1-3 years | Over 3 years | |
| Short-term borrowings | 1,398,200,202.82 | 1,411,422,627.05 | 1,411,422,627.05 | ||
| Notes payable | 3,520,145,951.34 | 3,520,145,951.34 | 3,520,145,951.34 | ||
| Accounts payable | 5,033,866,555.98 | 5,033,866,555.98 | 5,033,866,555.98 | ||
| Other payable | 578,350,601.82 | 578,350,601.82 | 578,350,601.82 | ||
| Non-current liabilities due within one year | 292,569,239.45 | 292,773,045.01 | 292,773,045.01 | ||
Long-term borrowings
| Long-term borrowings | 2,220,000,000.00 | 2,344,147,972.23 | 2,344,147,972.23 | ||
| Lease liabilities | 198,342,644.46 | 204,152,640.64 | 1,359,426.01 | 189,922,357.24 | 12,870,857.39 |
Subtotal
| Subtotal | 13,241,475,195.87 | 13,384,859,394.07 | 10,837,918,207.21 | 2,534,070,329.47 | 12,870,857.39 |
(Continued)
| Items | Opening balance | ||||
| Carrying amount | Contract amount not yet discounted | Within 1 year | 1-3 years | Over 3 years | |
| Short-term borrowings | 1,212,150,378.85 | 1,220,397,152.46 | 1,220,397,152.46 | ||
| Notes payable | 3,416,711,594.64 | 3,416,711,594.64 | 3,416,711,594.64 | ||
| Accounts payable | 4,449,940,359.81 | 4,449,940,359.81 | 4,449,940,359.81 | ||
| Other payable | 250,642,662.86 | 250,642,662.86 | 250,642,662.86 | ||
| Non-current liabilities due within one year | 1,440,093,253.93 | 1,451,597,753.93 | 1,451,597,753.93 | ||
| Long-term borrowings | 1,030,801,111.13 | 1,091,440,666.68 | 1,091,440,666.68 | ||
| Lease liabilities | 221,295,481.86 | 227,606,748.42 | 12,657,389.96 | 105,453,688.05 | 109,495,670.41 |
| Subtotal | 12,021,634,843.08 | 12,108,336,938.80 | 10,801,946,913.66 | 1,196,894,354.73 | 109,495,670.41 |
(3) Market risk
Market risk is the risk that the Company may encounter fluctuation in fair value or future cash flows offinancial instruments due to changes in market price. Market risk mainly includes interest rate risk and exchangerate risk.
1. Interest Rate Risk
Interest rate risk refers to the risk of fluctuations in the fair value or future cash flows of financial instrumentsdue to changes in market interest rates. Fair value interest risks arise from fixed-rate financial instruments. TheCompany determines the proportion of fixed-rate financial instruments and floating-rate financial instrumentsbased on the market environment.
The scale of the company's liabilities need to pay interest is controlled at a reasonable level, and the burdenof financial expenses is not heavy. An increase in interest rates within a reasonable range will not have asignificant adverse impact on financial performance. The company's management will continue to monitor interestrate levels and take necessary response measures in a timely manner based on the latest market conditions
2. Exchange Rate Risk
The exchange rate risk refers to the risk of fluctuations in the fair value or future cash flows of financialinstruments due to changes in foreign exchange rates. The company's production base and sales market aredistributed in major developed and developing countries, including the United States, the European Union, Japan,India, Mexico, etc. The business volume settled in euros and dollars has a certain proportion, and it facessignificant exchange rate risks. Based on internal risk control policies, the company's management has takenseveral measures to respond exchange rate risks. Firstly, based on the trend of exchange rate fluctuations, timelysettlement or delayed settlement of export receipts; secondly, hedge foreign currency monetary assets and controlnet risk exposure by overseas financing through domestic guarantee and external loan; thirdly, carry out forwardexchange settlement and foreign currency swap business, and lock in exchange rates.
The situation of the company's foreign currency monetary assets and liabilities at the end of the period can befound in section 10 (7) of the notes to the consolidated financial statements for foreign currency monetary items insection 64.Ⅹ. Disclosure of Fair Values
1. Fair values of the assets and liabilities at the end of the period
Unit: RMB
| Item Name | Fair value as of the balance sheet date | |||
| Level 1 fair value measurement | Level 2 fair value measurement | Level 3 fair value measurement | Total | |
| I.Continuous fair value measurement | -- | -- | -- | -- |
| (②).Held-for-trading financial assets | 3,760,125.00 | 107,171,639.44 | 110,931,764.44 | |
| 1.financial assets at fair value through profit or loss. | 3,760,125.00 | 107,171,639.44 | 110,931,764.44 | |
| (1) Debt instrument investment | 100,000,000.00 | 100,000,000.00 | ||
| (3) Derivative financial assets | 3,760,125.00 | 7,171,639.44 | 10,931,764.44 | |
| Total amount of assets constantly measured at their fair values | 3,760,125.00 | 107,171,639.44 | 110,931,764.44 | |
| (②). Held-for-trading liabilities | 266,451.91 | 36,636,918.40 | 36,903,370.31 | |
| Derivative financial liabilities | 266,451.91 | 36,636,918.40 | 36,903,370.31 | |
| Total amount of liabilities constantly measured at their fair values | 266,451.91 | 36,636,918.40 | 36,903,370.31 | |
| II. Non-constant measurement at fair value | -- | -- | -- | -- |
2. Basis for determining the market price of items under first level constant and non-constant measurementat fair value.
The fair value of futures contracts is measured at the exchange's open market quotes.
3. Items under second level constant and non-constant measurement at fair value, valuation techniqueadopted, and qualitative and quantitative information of important parameters
The fair value of exchange rate contracts is measured based on the valuation amount of the host bank or theforward foreign exchange rate announced by the Bank of China. Bank financing products are measured based onthe valuation amount of the issuer or manager.
XI. Related party relationships and transactions
1. Parent Company
| Parent Company | Place of registration | Business nature | Registered capital | Holding proportion over | Voting right proportion over |
the Company
| the Company | the Company | ||||
| Sanhua Holding Group Co., Ltd | Zhejiang Province | Industrial Investment | 730 million yuan | 25.41% | 45.31% |
Remarks on the parent Company:
As of June 30, 2024, Sanhua Holding Group Co., Ltd. (Hereinafter referred to as SHG) directly holds
25.41% of the Company's shares, and indirectly holds 19.90% of the shares through its subsidiaries, for a total of
45.31% of the shares.
The final controllers of the Company are Mr Zhang Daocai, Mr Zhang Yabo and Zhang Shaobo.
2. Information about the Company's subsidiaries
Please refer to interest in other entities of notes to financial statements.
3. Joint ventures and associates of the Company
Please refer to notes to financial statements for details on the Company’s significant joint ventures and associates.Details of other joint ventures or associates carrying out related party transactions with the Company in currentperiod or in preceding period but with balance in current period are as follows:
| Associates or joint ventures | Relationship with the Company |
| Qingdao Sanhua Jinlifeng Machinery Co., Ltd | Joint ventures |
| Zhongshan Xuanyi Pipe Making Co., Ltd | Joint ventures |
4. Other related parties of the Company
| Other related parties of the Company | Relationship with the Company |
| Zhejiang Sanhua Green Energy Industrial Group Co., Ltd. | Under the control of the same parent company |
| Hangzhou Sanhua Research Institute Co., Ltd. | Under the control of the same parent company |
| Xinchang County Sanhua Property Management Co., Ltd. | Under the control of the same parent company |
| Shanghai Sanhua Electric Co., Ltd | Under the control of the same parent company |
| Zhejiang Sanhua Zhicheng Real Estate Development Co., Ltd. | Under the control of the same parent company |
| Zhejiang Haoyuan Technology Co., Ltd. | Under the control of the same parent company |
| Wuhu Alda Technology Co., Ltd. | Joint-stock enterprise of the parent company |
| Hangzhou Formost Material Technology Co., Ltd | Joint-stock enterprise of the parent company |
Ningbo Jiaerling Pneumatic Machinery Co.,Ltd.
| Ningbo Jiaerling Pneumatic Machinery Co.,Ltd. | Under the control of the same parent company |
| Tianjin Sanhua Industrial Park Management Co., Ltd. | Under the control of the same parent company |
| Shaoxing Sanhua Zhiyue Real Estate Development Co., Ltd. | Under the control of the same parent company |
| Shanghai Shijia Technology Co., Ltd. | Shi Jianhui as director |
5. Related party transactions
（1）Purchase and sale of goods, rendering and receiving services
Purchase of goods and receiving of services
Unit: RMB
| Related parties | Content of transaction | Current period cumulative | Approved Transaction Limit | Over the Transaction Limit or No | Preceding period comparative |
| SHG | Goods | 105,900,000.00 | No | 6,273.30 | |
| SHG | Services | No | 4,182.20 | ||
| ZSGE | Goods | 588,693.58 | No | ||
| ZSGE | Services | 1,428,005.27 | No | 1,143,487.12 | |
| HSRI | Goods | 7,964,699.48 | No | ||
| HSRI | Services | 62,283.39 | No | 22,686.23 | |
| NJPM | Goods | 576,873.12 | No | ||
| ZHT | Services | 131,533.96 | No | ||
| XCSP | Services | 546,925.25 | No | ||
| TSIP | Services | 392,000.00 | No | ||
| SSE | Services | 459,910.58 | No | 374,957.03 | |
| ZXPM | Goods | 6,923,209.33 | 20,000,000.00 | No | 10,034,439.41 |
| QSJM | Goods | 2,209,810.55 | 4,500,000.00 | No | 3,405,710.00 |
| WAT | Goods | 42,477.87 | 400,000.00 | No | 25,823.00 |
Sale of goods and rendering of services
Unit: RMB
| Related parties | Content of transaction | Current period cumulative | Preceding period comparative |
| SHG | Goods | 203,592.04 | 1,344.00 |
| SHG | Services | 842,009.44 | |
| HFMT | Services | 74,377.36 | 74,377.36 |
| ZHT | Services | 509,001.99 | |
| QSJM | Goods | 44,612.66 | 168,571.15 |
| ZSGE | Goods | 521.59 | |
| HSRI | Goods | 39,278.74 | 910,665.24 |
| WAT | Services | 104,912.24 | 39,875.00 |
| SST | Goods | 18,795.00 |
Remarks of related transactions related to the purchase and sale of goods and the provision and acceptance ofservicesDue to the large number of related parties involved in related party transactions between the parent CompanySanhua Holding Group Co., Ltd and its subsidiaries, the transaction limit with Sanhua Holdings Group Co., Ltd.
and its subsidiaries is approved through a consolidated summary, with a purchase goods, purchase rent, equipmentlease, property management, water and electricity power, and service fee limit of 105.90 million yuan.
（2）Related party leases
The Company as the lessor：
Unit: RMB
| Lessees | Types of asset leased | Confirmed rental income | |
| Current period | Preceding period | ||
| SHG | Office building | 2,654,669.72 | |
| SHG | Dormitory | 16,640.05 | |
| HFMT | Plant | 150,171.42 | 150,171.42 |
| WAT | Plant | 477,335.76 | 624,733.92 |
The Company as the lessee：
Unit: RMB
| Lessor | Types of asset leased | Confirmed rental expenses | |
| Current period | Preceding period | ||
| HSRI | Office building | 528,514.29 | |
| HSRI | Plant | 181,542.86 | |
| HSRI | Dormitory | 194,867.11 | |
| ZSGE | Dormitory | 555,761.15 | 317,647.48 |
| ZSGE | Plant | 1,418,503.31 | 1,531,999.30 |
| TSIP | Plant | 1,078,658.10 | |
（3）Related party guarantees
Unit: RMB
| Guaranteed parties | Amount guaranteed | Starting date of guarantee | Expiry date of guarantee | Guarantee has been fulfilled or No |
| SHG | 2,400,000,000.00 | 2022.07.14 | 2027.01.29 | NO |
（4）Key management’s emoluments
Unit: RMB
| Items | Current period cumulative | Preceding period comparative |
| Key management’s emoluments | 11,285,801.70 | 9,480,670.20 |
（5）Other related party transactions
Unit: RMB
| Abbreviation of associate | Content of transaction | Current period cumulative | Preceding period comparative |
| ZSGE | Water and electricity payment | 2,413,482.60 | 4,557,949.51 |
| TSIP | Water and electricity payment | 1,399,386.22 |
SHG
| SHG | Water and electricity collection | 404,205.16 | 365,648.52 |
| HFMT | Water and electricity collection | 161,275.44 | 308,968.43 |
| HSRI | Water and electricity collection | 747,927.13 | 765,838.12 |
| WAT | Water and electricity collection | 143,600.18 | 268,572.72 |
| ZSGE | Water and electricity collection | 463,348.32 | 359,981.97 |
| ZHT | Water and electricity collection | 14,619,762.17 | 11,096,279.60 |
| ZHT | Steam payment | 23,966,734.96 | 18,426,129.97 |
6. Balance due to or from related parties
（1）Receivables
Unit: RMB
| Items | Related parties | Closing balance | Opening Balance | ||
| Book balance | Provision for bad debts | Book balance | Provision for bad debts | ||
| Accounts receivable | HSRI | 21,329.62 | 1,066.48 | 2,542.50 | 127.13 |
| Accounts receivable | QSJM | 60,412.31 | 3,020.62 | 10,000.00 | 500.00 |
| Accounts receivable | SST | 21,238.35 | 1,061.92 | 48,205.80 | 2,410.29 |
| Accounts receivable | HFMT | 418,761.25 | 20,938.06 | ||
| Accounts receivable | ZSGE | 66,643.29 | 3,332.16 | ||
| Accounts receivable | SHG | 65,434.25 | 4,305.77 | ||
| Accounts receivable | WAT | 284,366.44 | 14,218.33 | ||
| Other receivables | SHG | 20,681.18 | 1,034.06 | ||
| Other receivables | ZHT | 670,000.00 | 67,000.00 | 670,000.00 | 67,000.00 |
| Advances paid | ZXPM | 67,660.61 | |||
（2）Payables
Unit: RMB
| Items | Related parties | Closing balance | Opening Balance |
| Accounts payable | HSRI | 357,150.00 | 357,150.00 |
| Accounts payable | NJPM | 355,624.66 | 300,646.95 |
| Accounts payable | QSJM | 238,415.31 | |
| Accounts payable | ZSGE | 51,172.28 | |
| Accounts payable | ZXPM | 8,867,210.13 | |
| Other payables | HFMT | 100,000.00 | 100,000.00 |
| Other payables | ZSGE | 4,324,140.18 | 387,216.00 |
| Other payables | TSIP | 332,455.82 | 706,263.58 |
| Other payables | SSE | 25,640.00 |
XII. Share-based payment
1. Overall information
√ Applicable □ Not applicable
Unit: RMB
| Objects | Granted in the current period | Vested in the current period | Unlocked in the current period | Expired in the current period | ||||
| Quantity | Amount | Quantity | Amount | Quantity | Amount | Quantity | Amount | |
| Management personnel | 10,490,000 | 99,384,600.00 | ||||||
| R&D personnel | 10,185,000 | 95,739,000.00 | ||||||
| Sales personnel | 2,400,000 | 22,560,000.00 | ||||||
| Production personnel | 1,835,000 | 17,249,000.00 | ||||||
| Total | 24,910,000 | 234,932,600.00 | ||||||
Share options and other equity instruments outstanding at the balance sheet date
√ Applicable □ Not applicable
| Objects | Share options outstanding | Other equity instruments outstanding | ||
| Range of exercise prices | Remaining contractual life | Range of exercise prices | Remaining contractual life | |
| Management personnel | The adjusted restricted stock grant price is 9.40 yuan for the 2022 grant, the adjusted restricted stock grant price is 11.75 yuan for the 2024 grant | From the date of grant, unlock in batches within 12 months after 12 months, 24 months, and 36 months. | ||
| R&D personnel | The adjusted restricted stock grant price is 9.40 yuan for the 2022 grant, the adjusted restricted stock grant price is 11.75 yuan for the 2024 grant | From the date of grant, unlock in batches within 12 months after 12 months, 24 months, and 36 months. | ||
| Sales personnel | The adjusted restricted stock grant price is 9.40 yuan for the 2022 grant, the adjusted restricted stock grant price is 11.75 yuan for the 2024 grant | From the date of grant, unlock in batches within 12 months after 12 months, 24 months, and 36 months. | ||
| Production personnel | The adjusted restricted stock grant price is 9.40 yuan for the 2022 grant, the adjusted restricted stock grant price is 11.75 yuan for the 2024 grant | From the date of grant, unlock in batches within 12 months after 12 months, 24 months, and 36 months. | ||
Other Remarks:
(1) Incentive plan for Restricted stock and Stock Appreciation Rights implemented in 2022
In May 2022，the Company implemented a restricted stock and stock appreciation rights incentive plan forcore employees. Among them，the number of restricted stocks granted was 17.5850 million shares, the number ofstock appreciation rights granted was 0.4850 million shares and the grant price per share was RMB 10.00，Thegrant date was May 31, 2022, and it will be unlocked year by year in batches at a ratio of 30%:30%:40%.
In September 2022, the Company implemented the 2022 semi-annual equity distribution. In June 2023, theCompany implemented the 2022 equity distribution. In October 2023, the Company implemented the 2023 semi-annual equity distribution. In June 2024, the Company implemented the 2023 equity distribution. According to themethod stipulated in the "2022 Restricted Stock Incentive Plan" and "2022 Stock Appreciation Rights IncentivePlan" , the exercise price and quantity of the underlying stocks involved were adjusted accordingly. After theadjustment, the number of restricted stocks granted was 17.5850 million shares, the number of stock appreciationrights granted was 0.4850 million shares and the grant price per share was RMB 9.40.
(2) Incentive plan for Restricted stock and Stock Appreciation Rights implemented in 2024
In May 2024，the Company implemented a restricted stock and stock appreciation rights incentive plan forcore employees. Among them，the number of restricted stocks granted was 24.5700 million shares , the numberof stock appreciation rights granted was 0.5600 million shares, and the grant price per share was RMB 12.00，The grant date was May 13 and June 3 in 2024, and it will be unlocked year by year in batches at a ratio of30%:30%:40%.
In June 2024，the Company implemented a restricted stock and stock appreciation rights incentive plan forcore employees. Among them，the number of restricted stocks granted was 0.3400 million shares and the grantprice per share was RMB 11.75.The grant date was June 3, 2024, and it will be unlocked year by year in batchesat a ratio of 30%:30%:40%.
In June 2024, the Company implemented the 2023 equity distribution. According to the method stipulated inthe "2024 Restricted Stock Incentive Plan"and "2024 Stock Appreciation Rights Incentive Plan", the exerciseprice and quantity of the underlying stocks involved were adjusted accordingly. After the adjustment, the numberof restricted stocks granted was 24.9100 million shares, the number of stock appreciation rights granted was
0.5600 million shares, and the grant price per share was RMB11.75.
2.Equity-settled share-based payment
(1) Incentive plan for Restricted stock implemented in 2022
Unit: RMB
| Determination method and important parameters for grant-date fair value of equity instruments | Calculated based on the closing price of the stock on the grant date minus the grant price of the restricted stock. |
| Determination method for the number of equity instruments expected to vest | [Note] |
| Reasons for significant difference between the estimates in current period and preceding period | Not applicable |
| Capital reserve accumulated due to equity-settled share-based payment | 109,479,022.14 |
Note：In 2022, the Company initially granted 17.5850 million restricted stocks to incentive object. Thenumber is the base, it will be unlocked year by year in batches at a ratio of 30%:30%:40%. The Companyestimates the number of exercisable equity instruments on the following basis: the Company's operatingperformance can meet the target，the future voluntary turnover rate of the incentive objects is 0%，and theperformance appraisal level is above C (the unlocking coefficient is 1).
(2) Incentive plan for Restricted stock implemented in 2024
Unit: RMB
Determination method and key parameters ofgrant-date fair value of equity instruments
| Determination method and key parameters of grant-date fair value of equity instruments | Calculated based on the closing price of the stock on the grant date minus the grant price of the restricted stock. |
| Determination method for the number of equity instruments expected to vest | [Note] |
| Reasons for significant difference between the estimates in the current period and preceding period | Not applicable |
| Capital reserve accumulated due to equity-settled share-based payment | 21,389,488.21 |
Note：In 2024, the Company initially granted 24.9100 million shares restricted stocks to incentive object.The number is the base, it will be unlocked year by year in batches at a ratio of 30%:30%:40%. The Companyestimates the number of exercisable equity instruments on the following basis: the Company's operatingperformance can meet the target，the future voluntary turnover rate of the incentive objects is 0%，and theperformance appraisal level is above C (the unlocking coefficient is 1).
3. Cash-settled share-based payment
√ Applicable □ Not applicable
| Determination method and key parameters of the fair value of liability incurred by the Company and to be settled in cash or other equity instruments | Calculated based on the closing price of the stock on the balance sheet date minus the grant price of the stock appreciation rights |
| Accumulated amount of liabilities incurred due to cash-settled share-based payment | 8,640,510.00 |
4. Total share-based payments recognized in the current period
√ Applicable □ Not applicable
| Objects | Equity-settled share-based payment | Cash-settled share-based payment |
| Management personnel | 34,072,715.35 | 760,620.00 |
| Total | 34,072,715.35 | 760,620.00 |
XIII. Commitments and contingencies
1. Significant commitments
Significant contingencies existing on the balance sheet date
With the approval of the CSRC in document CSRC License [2021] No. 168, the Company publicly issued 30million convertible corporate bonds in June 2021, with a face value of 100 yuan each and net amount of raisedfunds is 2,987.53 million yuan. In addition to replenishing working capital, the raised funds are committed to thefollowing projects:
| Investment projects with raised funds | Committed capital | Actual capital |
| Annual production of 65 million sets of commercial refrigeration and air conditioning intelligent control components construction project | 1487 million yuan | 1166.6493 million yuan |
| Annual output of 50.5 million | 698 million yuan | 322.7998 million yuan |
sets of high efficiency andenergy saving refrigerationand air conditioning controlcomponents project
sets of high efficiency andenergy saving refrigerationand air conditioning controlcomponents project
XIV. Events after the balance sheet date
1. Dividend distribution
According to the semi-annual profit distribution plan of 2024 approved by the board of directors of theCompany on August 28, 2024, cash dividends of 1.0 yuan (including tax) for every 10 shares will be distributed toall shareholders based on 3,731,414,614 shares on August 20, 2024, no bonus shares will be given, and no capitalreserve will be converted into share capital. A total of 373,141,461.40 yuan was distributed.XV. Other Significant Events
1. Segment information
（1）Basis for reportable segments and the accounting policy
Reportable segments are identified based on operating segments which are determined based on the structureof the Company’s internal organization, management requirements and internal reporting system, etc., andidentified the reportable segments based on products.
（2）Financial information of the reporting subsection
Unit: Ten thousand yuan RMB
| Items | Jan-Jun, 2024 | |||
| Operating revenue | Operating cost | Total assets | Total liabilities | |
| Refrigeration and air-conditioning electrical parts business | 827,870.03 | 599,725.19 | 2,063,551.47 | 931,914.06 |
| Auto parts business | 539,737.19 | 392,313.84 | 1,246,527.58 | 552,276.70 |
| Total | 1,367,607.22 | 992,039.03 | 3,310,079.05 | 1,484,190.76 |
| Items | Jan-Jun, 2023 | |||
| Operating revenue | Operating cost | Total assets | Total liabilities | |
| Refrigeration and air-conditioning electrical parts business | 770,602.11 | 572,478.82 | 1,921,013.83 | 1,067,515.32 |
| Auto parts business | 482,289.95 | 358,387.27 | 994,883.70 | 440,556.08 |
| Total | 1,252,892.06 | 930,866.09 | 2,915,897.53 | 1,508,071.40 |
XVI. Notes to items of parent Company financial statements
1. Accounts receivable
（1）Disclosure of accounts receivable by aging
Unit: RMB
| Aging | Closing balance | Opening balance |
| Within 1 year | 1,541,924,544.21 | 712,624,340.09 |
| 1 to 2 year | 565,333.11 | 5,846,510.80 |
| 2 to 3 year | 5,726,250.95 | |
| Total | 1,548,216,128.27 | 718,470,850.89 |
（2）Disclosure of accounts receivable by bad debt provision method
Unit: RMB
| Category | Closing balance | Opening balance | ||||||||
| Book balance | Provision for bad debt | Carrying amount | Book balance | Provision for bad debt | Carrying amount | |||||
| Amount | Proportion | Amount | Accrued proportion | Amount | Proportion | Amount | Accrued proportion | |||
| Receivables with provision made on an individual basis | 1,370,050,072.87 | 88.49% | 5,726,250.95 | 0.42% | 1,364,323,821.92 | 531,943,381.96 | 74.04% | 5,690,817.36 | 1.07% | 526,252,564.60 |
| Including: | ||||||||||
| Receivables with provision made on a collective basis | 178,166,055.40 | 11.51% | 8,936,569.42 | 5.02% | 169,229,485.98 | 186,527,468.93 | 25.96% | 9,334,158.12 | 5.00% | 177,193,310.81 |
| Including: | ||||||||||
| Total | 1,548,216,128.27 | 100.00% | 14,662,820.37 | 0.95% | 1,533,553,307.90 | 718,470,850.89 | 100.00% | 15,024,975.48 | 2.09% | 703,445,875.41 |
Provision made on an individual basis:
Unit: RMB
| Name | Opening balance | Closing balance |
Book balance
| Book balance | Provision for bad debt | Book balance | Provision for bad debt | Accrued proportion | Accrued reason | |
| Dayou Vinya (Thailand) Co., Ltd | 5,690,817.36 | 5,690,817.36 | 5,726,250.95 | 5,726,250.95 | 100.00% | |
| Several subsidiaries | 526,252,564.60 | 1,364,323,821.92 | ||||
| Total | 531,943,381.96 | 5,690,817.36 | 1,370,050,072.87 | 5,726,250.95 |
Provision made on a collective basis:
Unit: RMB
| Items | Closing balance | ||
| Book balance | Provision for bad debt | Accrued proportion | |
| Within 1 year | 177,600,722.29 | 8,880,036.11 | 5.00% |
| 1 to 2 year | 565,333.11 | 56,533.31 | 10.00% |
| Total | 178,166,055.40 | 8,936,569.42 | |
If the provision for bad debt of accounts receivable is accrued in accordance with the general expected credit lossmodel:
□ Applicable √ Not applicable
（3）Provision for bad debt accrued, recovered or reversed in current periodProvision for bad debt accrued in current period:
Unit: RMB
| Category | Opening balance | Changed amount of the current period | Closing balance | |||
| Accrued | Recovered or reversed | Write off | Others | |||
| Provision made on an individual basis | 5,690,817.36 | 35,433.59 | 5,726,250.95 | |||
| Receivables with provision made on a collective basis | 9,334,158.12 | 397,588.70 | 8,936,569.42 | |||
| Total | 15,024,975.48 | 35,433.59 | 397,588.70 | 14,662,820.37 | ||
（4）Top 5 of accounts receivable
Closing balance of top 5 debtors totaled 1398.7028 million yuan, accounting for 90.34% of the total closingbalance of accounts receivable, and provision for bad debts made thereon totaled 5.1914 million yuan.
2. Other receivables
Unit: RMB
| Items | Closing balance | Opening balance |
| Dividend receivable | 550,000,000.00 | |
| Other receivables | 467,355,212.61 | 1,719,591,236.02 |
| Total | 467,355,212.61 | 2,269,591,236.02 |
（1）Dividend receivable
Classification of dividends receivable
Unit: RMB
| Items | Closing balance | Opening balance |
| Zhejiang Sanhua Climate & Appliance Controls Group Co.,Ltd | 550,000,000.00 | |
| Total | 550,000,000.00 |
（2）Other receivables
1）Other receivables categorized by nature
Unit: RMB
| Other receivables categorized by nature | Closing balance | Opening balance |
| Principal and interest of capital assistance to subsidiaries | 457,936,308.41 | 1,708,500,801.49 |
| Tax refund receivable | 3,737,098.02 | 6,387,103.55 |
| Others | 6,250,553.53 | 5,207,052.58 |
| Total | 467,923,959.96 | 1,720,094,957.62 |
2）Disclosure by aging
Unit: RMB
| Aging | Closing balance | Opening balance |
| Within 1 year (including 1 year) | 466,567,302.54 | 1,718,634,775.79 |
| 1 to 2 years | 814,723.42 | 793,523.42 |
| 2 to 3 years | 141,934.00 | 481,517.41 |
| Over 3 years | 400,000.00 | 185,141.00 |
| Total | 467,923,959.96 | 1,720,094,957.62 |
3）Disclosure of other receivables by bad debt provision method
Unit: RMB
| Category | Closing balance | Opening balance | ||||||||
| Book value | Provision for bad debt | Net book value | Book value | Provision for bad debt | Net book value | |||||
| Amount | Proportion | Amount | Accrued proportion | Amount | Proportion | Amount | Accrued proportion | |||
| Receivables with provision made on an individual basis | 461,673,406.43 | 98.66% | 461,673,406.43 | 1,714,887,905.04 | 99.70% | 1,714,887,905.04 | ||||
Including:
| Including: | ||||||||||
| Receivables with provision made on a collective basis | 6,250,553.53 | 1.34% | 568,747.35 | 9.10% | 5,681,806.18 | 5,207,052.58 | 0.30% | 503,721.60 | 9.67% | 4,703,330.98 |
| Including: | ||||||||||
| Total | 467,923,959.96 | 100.00% | 568,747.35 | 0.12% | 467,355,212.61 | 1,720,094,957.62 | 100.00% | 503,721.60 | 0.03% | 1,719,591,236.02 |
Provision made on an individual basis:
Unit: RMB
| Name | Opening balance | Closing balance | ||||
| Book balance | Provision for bad debt | Book balance | Provision for bad debt | Accrued proportion | Accrued reason | |
| Tax refund receivable | 6,387,103.55 | 3,737,098.02 | ||||
| Several subsidiaries | 1,708,500,801.49 | 457,936,308.41 | ||||
| Total | 1,714,887,905.04 | 461,673,406.43 | ||||
Provision made on a collective basis:
Unit: RMB
| Items | Closing balance | ||
| Book balance | Provision for bad debt | Accrued proportion | |
| Within 1 year | 4,893,896.11 | 244,694.81 | 5.00% |
| 1 to 2 year | 814,723.42 | 81,472.34 | 10.00% |
| 2 to 3 year | 141,934.00 | 42,580.20 | 30.00% |
| Over 3 years | 400,000.00 | 200,000.00 | 50.00% |
| Total | 6,250,553.53 | 568,747.35 | |
The remarks of determination of a collective basis:
Provision for bad debts based on the general model of expected credit losses:
Unit: RMB
| Provision for bad debt | Phase I | Phase II | Phase III | Total |
| Next 12②month expected credit losses | Lifetime expected credit losses (credit not impaired) | Lifetime expected credit losses (credit impaired) | ||
| Balance on January 1, 2024 | 187,343.54 | 79,352.34 | 237,025.72 | 503,721.60 |
| Balance in current period on January 1, 2024 | ||||
| Provision made in current period | 57,351.27 | 2,120.00 | 5,554.48 | 65,025.75 |
| Balance on June 30, 2024 | 244,694.81 | 81,472.34 | 242,580.20 | 568,747.35 |
Classification basis and bad debt provision ratio for each stage
Loss provisions for significant changes in book value in current period
□ Applicable √ Not Applicable
4）Top 5 debtors with the largest other receivables balances
Unit: RMB
| Debtors | Nature of receivables | Closing balance | Age | Proportion to the total balance of other receivables | Provision for bad debt at the end of the period |
| Hangzhou Leaderway Electronics Co., Ltd | Financial aid to subsidiaries | 100,180,000.00 | Within 1 year(including 1 year) | 21.41% | |
| Sanhua New Energy Thermal Management Technology (Hangzhou) Co., Ltd | Financial aid to subsidiaries | 77,000,000.00 | Within 1 year(including 1 year) | 16.46% | |
| Shaoxing Shangyu Sanli Copper Industry Co., Ltd | Financial aid to subsidiaries | 60,075,600.00 | Within 1 year(including 1 year) | 12.84% | |
| Sanhua. (Jiangxi) Automatic Control Components Co., Ltd. | Financial aid to subsidiaries | 45,220,200.00 | Within 1 year(including 1 year) | 9.66% | |
| Wuhu Sanhua Refrigeration Fittings Co., Ltd. | Financial aid to subsidiaries | 38,934,809.11 | Within 1 year(including 1 year) | 8.32% | |
| Total | -- | 321,410,609.11 | -- | 68.69% |
3. Long-term equity investments
Unit: RMB
| Items | Closing balance | Opening balance | ||||
| Book balance | Provision for impairment | Carrying amount | Book balance | Provision for impairment | Carrying amount | |
| Investments in subsidiaries | 9,135,857,304.40 | 9,135,857,304.40 | 8,846,816,951.56 | 8,846,816,951.56 | ||
| Investments in associates and joint ventures | 31,885,619.02 | 31,885,619.02 | 33,316,317.01 | 33,316,317.01 | ||
| Total | 9,167,742,923.42 | 9,167,742,923.42 | 8,880,133,268.57 | 8,880,133,268.57 | ||
（1）Investments in subsidiaries
Unit: RMB
| Investees | Opening balance(Carrying amount) | Opening balance of provisio | Changed amount of the current period | Closing balance (Carrying amount) | Closing balance of provisio | |||
| Investments increased | Investments decrease | Provision for impairm | Others | |||||
n forimpairment
| n for impairment | d | ent | n for impairment | |||||
| Zhejiang Sanhua Automotive Components Co., Ltd. | 2,736,994,138.03 | 9,332,423.06 | 2,746,326,561.09 | |||||
| Sanhua (Hangzhou) Micro Channel Heat Exchanger Co., Ltd | 661,662,655.05 | 2,482,473.43 | 664,145,128.48 | |||||
| Zhejiang Sanhua Climate & Appliance Controls Group Co., Ltd | 1,376,473,565.88 | 0.00 | 1,376,473,565.88 | |||||
| Sanhua International Inc. | 307,863,648.30 | 0.00 | 307,863,648.30 | |||||
| Sanhua International Singapore Pte. Ltd | 959,288,106.40 | 168,979,091.86 | 1,128,267,198.26 | |||||
| Wuhu Sanhua Automatic Control Components Co., Ltd | 294,042,343.47 | 308,269.58 | 294,350,613.05 | |||||
| Sanhua. (Jiangxi) Automatic Control Components Co., Ltd. | 94,227,657.67 | 99,784.94 | 94,327,442.61 | |||||
| Xinchang Sitong Electrical and Mechanical Co., Ltd | 138,940,625.94 | 498,924.78 | 139,439,550.72 | |||||
| Zhejiang Sanhua Commercial | 1,659,471,139.20 | 3,706,418.40 | 1,663,177,557.60 |
Refrigeration Co. Ltd
| Refrigeration Co. Ltd | ||||||||
| Zhejiang Sanhua Trading Co. Ltd | 59,656,207.70 | 985,004.22 | 60,641,211.92 | |||||
| Changzhou Lanke four-way valve co., LTD | 62,541,614.60 | 0.00 | 62,541,614.60 | |||||
| Hangzhou Leaderway Electronics Co., Ltd | 57,600,171.50 | 93,088,021.59 | 150,688,193.09 | |||||
| Shaoxing Shangyu Sanli Copper Industry Co., Ltd | 33,693,798.36 | 159,790.04 | 33,853,588.40 | |||||
| Zhongshan Sanhua Air conditioning Refrigeration Components Co., Ltd | 5,840,963.15 | 43,744.18 | 5,884,707.33 | |||||
| Wuhan Sanhua Refrigeration Components Co., Ltd | 5,291,974.78 | 163,432.52 | 5,455,407.30 | |||||
| Zhongshan Sanhua Refrigeration Components Co., Ltd | 6,803,867.94 | 225,128.78 | 7,028,996.72 | |||||
| Suzhou Sanhua Air-Conditioner Parts Co.,Ltd | 9,261,580.01 | 83,202.18 | 9,344,782.19 | |||||
| Sanhua AWECO Appliance Systems (Wuhu) | 153,515,398.66 | 336,833.82 | 153,852,232.48 |
Co., Ltd.
| Co., Ltd. | ||||||||
| Zhejiang Sanhua Minshi Automotive Components Co., Ltd | 51,000,000.00 | 25,880.68 | 51,025,880.68 | |||||
| Sanhua New Energy Thermal Management Technology (Hangzhou) Co., Ltd | 142,647,494.92 | 8,521,928.78 | 151,169,423.70 | |||||
| Zhejiang Xianji Intelligent Technology Co., Ltd | 30,000,000.00 | 0.00 | 30,000,000.00 | |||||
| Total | 8,846,816,951.56 | 289,040,352.84 | 9,135,857,304.40 |
（2）Investments in associates and joint ventures
Unit: RMB
| Investees | Opening balance (Carrying amount | Opening balance of provision for impairment | Changed amount of the current period | Closing balance (Carrying amount) | Closing balance of provision for impairment | |||||||
| Investments increased | Investments decreased | Investment income recognized under equity method | Adjustment in other comprehensive income | Changes in other equity | Cash dividend/profit declared for distribution | Provision for impairment | Others | |||||
| ②. Joint ventures | ||||||||||||
| ②. Associates | ||||||||||||
| Guochuang Energy Internet Innovation Center (Guangdong) Co., Ltd. | 4,941,151.03 | 118,788.95 | 5,059,939.98 | |||||||||
ChongqingTainuoMachineryCo.,Ltd.
| Chongqing Tainuo Machinery Co., Ltd. | 18,304,176.79 | 2,882,088.15 | 5,000,000.00 | 16,186,264.94 | ||||||||
| Ningbo Jinlifeng Machinery Co., Ltd | 2,818,824.39 | 648,292.40 | 1,250,000.00 | 2,217,116.79 | ||||||||
| Qingdao Sanhua Jinlifeng Machinery Co., Ltd. | 5,405,402.11 | 1,143,201.43 | 6,548,603.54 | |||||||||
| Xinchang zhejiang energy sanhua comprehensive energy co. LTD | 1,846,762.69 | 26,931.08 | 1,873,693.77 | |||||||||
| Subtotal | 33,316,317.01 | 4,819,302.01 | 6,250,000.00 | 31,885,619.02 | ||||||||
| Total | 33,316,317.01 | 4,819,302.01 | 6,250,000.00 | 31,885,619.02 |
The recoverable amount is determined based on the net amount after deducting disposal expenses from fair value
□ Applicable √ Not Applicable
The recoverable amount is determined based on the present value of expected future cash flows
□ Applicable √ Not Applicable
4. Operating revenue and Operating cost
Unit: RMB
| Items | Current period cumulative | Preceding period comparative | ||
| Revenue | Cost | Revenue | Cost | |
| Main operations | 3,407,774,422.17 | 2,518,245,943.61 | 3,187,342,829.65 | 2,446,802,656.79 |
| Other operations | 197,135,728.18 | 181,650,170.13 | 188,742,061.91 | 179,628,647.43 |
Total
| Total | 3,604,910,150.35 | 2,699,896,113.74 | 3,376,084,891.56 | 2,626,431,304.22 |
5. Investment income
Unit: RMB
| Items | Current period cumulative | Preceding period comparative |
| Investment income from long-term equity investments under equity method | 4,819,302.01 | 4,605,330.06 |
| Dividend income | 502,800,000.00 | 46,862,001.82 |
| Investment income of bank financing products | 693,396.23 | 86,531.50 |
| Gains and losses on settlement of futures contracts | 7,141,899.96 | 4,141,032.14 |
| Gains and losses on settlement of foreign exchange contract | -1,700,514.34 | 530,000.00 |
| Interest Income of fund | 8,297,712.15 | 7,748,626.08 |
| Advance payment gains | 1,062,365.12 | 641,743.78 |
| Total | 523,114,161.13 | 64,615,265.38 |
6. Others
R&D expenses
Unit: RMB
| Items | Jan-Jun, 2024 | Jan-Jun, 2023 |
| Labor cost | 94,115,272.33 | 79,766,562.72 |
| Direct input expense | 38,492,107.85 | 66,348,245.97 |
| Depreciation and amortization expense | 6,072,563.17 | 5,448,825.42 |
| Mold manufacturing expense | 2,414,384.77 | 911,150.50 |
| Royalties | 2,074,810.41 | 632,046.18 |
| Outsourcing R&D expense | 484,504.85 | 356,340.18 |
| Others | 2,645,272.63 | 339,063.34 |
| Total | 146,298,916.01 | 153,802,234.31 |
XVII. Supplementary information
1. Non-recurring profit or loss in current period
√ Applicable □ Not Applicable
Unit: RMB
| Items | Amount | Remarks |
| Gains or loss on disposal of non-current assets | -6,146,341.57 | |
| Government grants included in profit or loss (excluding those closely related to operating activities of the Company, satisfying government policies and regulations, and continuously enjoyed with certain quantity/quota based on certain standards) | 51,359,679.62 | |
| Gains or losses on changes in fair value of held-for-trading financial assets, held-for-trading financial liabilities , and investment income from disposal of held-for-trading financial assets,held-for-trading financial | -62,865,867.03 | In order to avoid the price risk of raw materials and prevent exchange rate risk, the Company and its subsidiaries have carried out derivatives business, including futures contracts and foreign exchange forward |
liabilities, and other debt investments,excluding those arising from hedgingbusiness related to operating activities
| liabilities, and other debt investments, excluding those arising from hedging business related to operating activities | contracts. In January to June, 2024, the futures gain was 13.1419 million yuan and the forward loss was 76.0077 million yuan; In January to June, 2023, the futures gain was 4.3452 million yuan and the forward loss was 137.7080 million yuan. So, the amount of non-recurring gains and losses in the first half of both years fluctuated significantly. Meanwhile, the exchange income was 42.0242 million yuan in January to June, 2024, the exchange income was 194.1929 million yuan in January to June, 2023. According to “the No. 1 Explanatory Announcement on Information Disclosure for Companies Offering Their Securities to Public - Non-recurring Profit or Loss”, exchange gains and losses are recurring gains and losses, and Futures and forward gains and losses are non-recurring gains and losses. | |
| Other non-operating revenue or expenditures except the above items | 1,932,406.50 | |
| Other items of profit or loss that meet the definition of non-recurring profit or loss | 1,520,214.66 | |
| Less: Enterprise income tax affected | -3,260,821.02 | |
| Non-controlling interest affected (after tax) | 1,372,561.97 | |
| Total | -12,311,648.77 | -- |
Details of other profit and loss items that meet the definition of non-recurring profit and loss:
□ Applicable √ Not Applicable
The Company has no specific circumstances of other profit and loss items that meet the definition of non-recurring profit and loss.For items defined as non-recurring profit or loss according to “the No. 1 Explanatory Announcement onInformation Disclosure for Companies Offering Their Securities to Public - Non-recurring Profit or Loss”, non-recurring profit or loss items listed in the said document defined as project of recurring profit or loss, specify thereason
□ Applicable √ Not Applicable
2. ROE and EPS
| Profit of the reporting period | Weighted average ROE | EPS (yuan/share) | |
| Basic EPS | Diluted EPS | ||
| Net profit attributable to shareholders of ordinary shares | 8.32% | 0.40 | 0.40 |
| Net profit attributable to shareholders of ordinary shares after deducting non-recurring profit or loss | 8.39% | 0.41 | 0.41 |
3. Financial data variance between financial reporting prepared under domestic and abroad accountingstandards
（1）Differences of net profits and net assets in the financial reports disclosed according to the IFRS andChinese Accounting Standards
□ Applicable √ Not Applicable
（2）Differences of net profits and net assets in the financial reports disclosed according to the overseasaccounting standards and Chinese Accounting Standards
□ Applicable √ Not Applicable
（3）Explanation of the reasons for differences in accounting data under domestic and foreign accountingstandards. If adjusting for differences in data already audited by overseas auditing institutions, the name ofthe overseas institution should be indicated
□ Applicable √ Not Applicable