Suzhou Dongshan Precision Manufacturing Co., Ltd.
Semi-Annual Report 2024
August 20, 2024
Section I Important Note, Table of Contents and DefinitionsThe Board of Directors, the Board of Supervisors, directors, supervisors and senior executivesof the Company hereby warrant that the information contained in this Semi-Annual Report istrue, accurate and complete without any misrepresentation, misleading statement or materialomission, and agree to assume joint and several liabilities for this Semi-Annual Report.YUAN Yonggang, Principal of the Company, CFO WANG Xu and Accounting SupervisorZHU Deguang hereby represent that the financial statements contained in this Semi-AnnualReport are true, accurate and complete.All directors of the Company attended the meeting of the Board of Directors reviewing thisSemi-Annual Report.Forward-looking statements such as those on future development plans in this Report do notconstitute substantial commitments by the Company to the investors. The investors shouldmake investments rationally and keep an eye on the associated risks.In this Report, the Company has elaborated relevant potential risk factors andcountermeasures, as can be referred to in “X. Risk Exposures to the Company andCountermeasures” under “Section III Management’s Discussion and Analysis”, to which theinvestors should pay attention.The Company had no plan to pay cash dividends, distribute bonus shares or convert any capitalreserve to the share capital.
Note:
This document is a translated version of the Chinese Semi-Annual Report 2024 ("2024年半年度报告"). Incase of any discrepancies, the Semi-Annual Report 2024 published in the Chinese version shall prevail. Thefull Chinese Semi-Annual Report 2024 is available at www.cninfo.com.cn.
Table of Contents
Section I Important Note, Table of Contents and Definitions ...... 2
Section II Company Profile and Financial Highlights ...... 7
Section III Management’s Discussion and Analysis ...... 10
Section IV Corporate Governance ...... 31
Section V Environmental and Social Responsibilities ...... 33
Section VI Significant Matters ...... 39
Section VII Changes in Shares and Shareholders ...... 48
Section VIII Preferred Shares ...... 53
Section IX Bonds ...... 54
Section X Financial Report ...... 55
List of References
1. Financial statements signed and chopped by Mr. YUAN Yonggang, legal representative, Mr. WANG Xu, CFO,and Mr. ZHU Deguang, Accounting Supervisor of the Company.
2. Originals of all documents of the Company publicly disclosed during the reporting period and relatedannouncements.
3. Original of the Semi-Annual Report 2024 stamped with the seal and signed by the legal representative of theCompany.
4. Place keeping such documents for inspection: Securities Department of the Company at Building 12#, YunheTown Headquarters Industrial Park, 99 East Taihu Road, Wuzhong District, Suzhou.
Definitions
| Term | means | Definition |
| Company, we or DSBJ | means | Suzhou Dongshan Precision Manufacturing Co., Ltd. |
| Printed circuit board (PCB) | means | One of our three major business segments, including research and development (R&D), design, manufacturing and sale of FPCs, rigid PCBs, rigid-flex PCBs and other products. |
| Photoelectric display | means | One of our three major business segments, including R&D, design, manufacturing and sale of LED devices, touch panels, liquid crystal display modules and other products. |
| Precision manufacturing | means | One of our three major business segments, including design, manufacturing and sale of precision metal structural components and assemblies and other products. |
| Yongchuang Tech | means | Suzhou Yongchuang Metal Science and Technology Co., Ltd., a wholly owned subsidiary of the Company. |
| Hong Kong Dongshan | means | Hong Kong Dongshan Precision Union Optoelectronic Co., Limited, a wholly owned subsidiary of the Company. |
| Dragon Holdings | means | Dragon Electronix Holdings Inc., a wholly owned subsidiary of Hong Kong Dongshan. |
| MFLEX | means | Multi-Fineline Electronix, Inc., a wholly owned subsidiary of Dragon Holdings. |
| MFLEX Suzhou | means | MFLEX Suzhou Co., Ltd., a wholly owned subsidiary of MFLEX. |
| MFLEX Yancheng | means | MFLEX Yancheng Co., Ltd., a wholly owned subsidiary of MFLEX. |
| Hong Kong Dongshan Holding | means | Hong Kong Dongshan Holding Limited, a wholly owned subsidiary of the Company. |
| Multek Group | means | Multek Group (Hong Kong) Limited, a wholly owned subsidiary of Hong Kong Dongshan Holding. |
| Multek Industries | means | Multek Industries Limited, a wholly owned subsidiary of Multek Group. |
| Multek Technology | means | Multek Technology (Zhuhai) Co., Ltd., a wholly owned subsidiary of Multek Group. |
| Multek Zhuhai | means | Multek Zhuhai Limited, a wholly owned subsidiary of Multek Group. |
| Multek China | means | Multek China Ltd., a wholly owned subsidiary of Multek Group. |
| Yancheng Dongshan | means | Yancheng Dongshan Precision Manufacturing Co., Ltd., a wholly owned subsidiary of the Company. |
| Suzhou JDI | means | Suzhou JDI Electronics Inc. a wholly owned subsidiary of the Company. |
| 5G | means | The 5th generation mobile communication technology. |
| AI | means | Artificial Intelligence, the simulation of human intelligence using computer programs. |
| AR | means | Augmented Reality, a technology that combines and integrates the virtual world on screen with the real world, based on precise calculation of position and angle of camera images and image analysis technology. |
| VR | means | Virtual Reality, a computer-simulated 3D virtual world with scenes and objects that appear to be real. |
| IoT | means | Internet of Things, a system of interrelated computing devices, mechanical and digital machines, that has a unique identifier (UID) and is capable of transmitting data over the network. |
| PCB | means | Printed Circuit Board, a finished product with insulated substrates and conductors as materials, designed and made into printed circuits, printed components or a combination of conductive patterns according to the pre-designed circuit schematic diagram. |
| FPC | means | Flexible Printed Circuit. |
| LED or LED device | means | Light-emitting diode, a conductor diode that emits incoherent light when current flows through it, and the recombination of electrons and electron holes in the semiconductor produces radiation, for the purpose of this Report, including LED particles, LED light bars, LED backlight modules, LED lighting devices and other LED products. |
| Mini LED | means | Sub-millimeter light emitting diode, an LED device with a grain size of about 50-200μm. |
| LCM | means | LCD module or LCD display module, formed by assembling LCD display device with the relevant connectors, control, driver and other peripheral circuits, PCB circuit board, backlight source, structural components and other components. |
| Touch panel | means | A device under the protection of transparent glass that detects touches using sensors, and processes and transmits the relevant information. |
| AOA | means | The Articles of Association of Suzhou Dongshan Precision Manufacturing Co., Ltd. |
| CSRC | means | The China Securities Regulatory Commission. |
| Reporting period | means | The period from January 1, 2024, to June 30, 2024. |
| RMB and RMB0’000 | means | Renminbi and ten thousand Yuan respectively. |
Section II Company Profile and Financial Highlights
I. Company Profile
| Stock short name | DSBJ | Stock code | 002384 |
| Stock exchange | Shenzhen Stock Exchange | ||
| Chinese name | 苏州东山精密制造股份有限公司 | ||
| Chinese short name (if any) | 东山精密 | ||
| English name (if any) | Suzhou Dongshan Precision Manufacturing Co., Ltd. | ||
| English short name (if any) | DSBJ | ||
| Legal representative | YUAN Yonggang | ||
II. Contact Person and Contact Information
| Board Secretary | Securities Affairs Representative | |
| Name | MAO Xiaoyan | ZHOU Hao |
| Address | Building 12#, Yunhe Town Headquarters Industrial Park, 99 East Taihu Road, Wuzhong District, Suzhou, Jiangsu | Building 12#, Yunhe Town Headquarters Industrial Park, 99 East Taihu Road, Wuzhong District, Suzhou, Jiangsu |
| Telephone | 0512-80190019 | 0512-80190019 |
| Facsimile | 0512-80190029 | 0512-80190029 |
| maoxy@dsbj.com | hao.zhou@dsbj.com |
III. Other Information
1. Contact information of the Company
Whether there is any change in the Company’s registered address, office address and corresponding postal code, website, and emailaddress, etc. during the reporting period?
□Applicable ?N/A
There has been no change in our registered address, office address and corresponding postal code, website and email address, etc., asdetailed in the Annual Report 2023.
2. Media for information disclosure and place for keeping the Report
Whether there is any change in the media for information disclosure and place for keeping the report during the reporting period?
□Applicable ?N/A
The website of the stock exchange and the media and its website disclosing our semi-annual report, as well as the place for keepingour semi-annual report remain unchanged, as detailed in the Annual Report 2023.
3. Other related information
Whether there is any change in other related information during the reporting period?
□Applicable ?N/A
IV. Key Accounting Data and Financial Indicators
Did the Company need to retrospectively adjust or restate any accounting data of prior years?
□Yes ?No
| The reporting period | The same period of the previous year | Y/Y % change | |
| Operating revenue (RMB) | 16,628,586,195.56 | 13,667,087,825.06 | 21.67% |
| Net profit attributable to shareholders of the Listed Company (RMB) | 560,600,936.27 | 824,548,652.98 | -32.01% |
| Net profit attributable to shareholders of the Listed Company after deduction of non-recurring gain or loss (RMB) | 516,020,496.59 | 577,620,808.52 | -10.66% |
| Net cash flow from operating activities (RMB) | 2,088,969,399.28 | 2,613,900,836.02 | -20.08% |
| Basic earnings per share (RMB/share) | 0.33 | 0.48 | -31.25% |
| Diluted earnings per share (RMB/share) | 0.33 | 0.48 | -31.25% |
| Weighted average return on net assets | 3.05% | 4.95% | -1.90% |
| The end of the reporting period | The end of the previous year | % Change | |
| Total assets (RMB) | 45,619,022,558.56 | 44,371,719,028.28 | 2.81% |
| Net assets attributable to shareholders of the Listed Company (RMB) | 18,171,951,396.35 | 18,143,026,745.54 | 0.16% |
V. Differences in Accounting Data under the Chinese Accounting Standards for BusinessEnterprises (the “CASBEs”) and Overseas Accounting Standards
1. Differences in net profit and net assets disclosed in the financial report prepared under the CASBEs andthe International Financial Reporting Standards (IFRS)
□Applicable ?N/A
There was no difference in net profit and net assets disclosed in the financial report for the reporting period prepared under theCASBEs and the IFRS.
2. Differences in net profit and net assets disclosed in the financial report prepared under the CASBEs andoverseas accounting standards
□Applicable ?N/A
There was no difference in net profit and net assets disclosed in the financial report for the reporting period prepared under theCASBEs and overseas accounting standards.
VI. Items and Amounts of Non-recurring Gains or Losses?Applicable □N/A
In RMB
| Item | Amount | Remark |
| Gain or loss on disposal of non-current assets (including allowance for impairment of assets that has been written off) | -36,219,263.01 |
| Government grants recognized in profit or loss (excluding the government grants that are closely related to the business of the Company, conform to the applicable polices of the country, are provided in accordance with the established standards, and continuously affect the Company’s profit or loss) | 145,779,443.11 | |
| Gain or loss on changes in fair value of financial assets and financial liabilities held by non-financial entities, and gain or loss on disposal of financial assets and financial liabilities, except for effective hedges held in the ordinary course of business | -59,013,703.39 | |
| Other non-operating revenues and expenses | 3,644,170.97 | |
| Less: Effect on income tax | 9,842,216.40 | |
| Effect on minority interests (exclusive of tax) | -232,008.40 | |
| Total | 44,580,439.68 |
Other items of gain or loss within the meaning of non-recurring gains or losses:
□Applicable ?N/A
We do not have any other item of gain or loss within the meaning of non-recurring gains or losses.Classification of any item of non-recurring gain or loss defined by the Explanatory Announcement No. 1 on Information Disclosureby Companies Publicly Offering Securities - Non-recurring Gain or Loss as recurring gain or loss:
□Applicable ?N/A
We have not classified any item of non-recurring gain or loss defined by the Explanatory Announcement No. 1 on InformationDisclosure by Companies Publicly Offering Securities - Non-recurring Gain or Loss as recurring gain or loss.
Section III Management’s Discussion and AnalysisI. Situations of Our Primary Business during the Reporting Period
(I) During the reporting period, our primary business has not undergone any material change.We focus on the R&D and manufacturing of core components for the intelligently interconnected world, and the provision ofcomprehensive intelligent interconnection solutions to customers all over the world. We are primarily engaged in the R&D,manufacturing and sale of PCBs, precision components, touch panel modules and LED display devices, which are widely used inconsumer electronics, new energy vehicles, communication equipment, industrial equipment, AI, medical appliances and other fields.(II) During the reporting period, our main business model has not undergone any material change.We leverage our complete business chain to provide our customers with comprehensive, one-stop, industrial-leading services,continuously increase the depth of cooperation and adhesion with our customers, and maintain long-term, stable collaboration withpremium customers taking the lead in the global consumer electronics, new energy vehicle and communication equipment industries.We manufacture main products based on market demands and adopt the production model that determines production according tosales, under which we develop production plans and deliver products taking into account the purchase orders placed by customers, theproduct quantities demanded by the customers under such purchase orders, as well as our production capacity and supply of rawmaterials.
(1) Our main products and their applications
| No. | Product category | Product name | Product features | Application scenarios |
| 1 | PCBs | FPC | FPCs are printed circuit boards made of flexible substrates, composed of metal conductor foils, adhesives and insulating base films, which are light, thin, bendable and suitable for three-dimensional assembly, and optimal for electronic products with requirements for miniaturization, lightweight, and mobility. | Consumer electronics, new energy vehicles, communication equipment, industrial equipment, AI, servers, medical devices, etc. |
| Rigid PCB | Rigid circuit boards are classified into single-layer boards, double-layer boards, ordinary multi-layer boards, high-layer boards, HDI boards and ELIC boards. Ordinary multi-layer boards typically have four or more layers; high-layer boards typically have more than 18 layers; HDI boards refer to high-density interconnect boards, which are capable of high-density wiring; ELIC boards refer to Every Layer Interconnection boards, which are high-end products in HDI boards. Generally, the more layers a PCB has, the better it is for achieving fast signal transmission and improving data processing performance. | |||
| Rigid-flex PCB | Rigid-flex PCBs combine FPCs and rigid PCBs through lamination and other processes according to the relevant process requirements, and have the features of both FPCs and rigid PCBs. Rigid-flex PCBs can be used in products with special requirements. As they have both flexible area and rigid areas, they can save internal space, reduce volume, and greatly improve the performance of the finished products. | |||
| 2 | Precision components | Precision metal products | Precision metal components are formed through die casting, stamping, panel beating, precision machining and other processes to meet the customers’ demand for precision, including functional structural components for new energy vehicles, base station antennas and filters for mobile communication, etc. | New energy vehicles, energy storage, communication equipment, consumer electronics, etc. |
| 3 | Touch panel modules | Touch panel | Touch panels and LCMs are important components for display modules of smart phones, tablets and other consumer electronic products. We are able to provide customers with touch panels, and LCMs as separate components, or complete touch display modules. | Smart phones, laptops, tablet PCs, smart watches, etc. |
| LCM | ||||
| On-board display module | On-board display modules are used in display devices for vehicles. They are typically assemblies integrating display screen and control circuits and used to display various information and images inside vehicles. | Automotive central control screens, dashboards, rearview mirrors, etc. | ||
| 4 | LED display devices | LED display devices are products formed by packaging LED chips and brackets with epoxy resin or organic silicon. Our LED display devices include 0606, 0808, 1010, 1515, 2121, 1921, 2525, 2727, and other models. | Indoor and outdoor small-pitch, high-definition displays, and other professional fields, and display backlight products | |
(2) Applications of our products in new energy vehicles
| ? Cold plates (automatic drive and central control) ? Heat dissipation modules | ? HUDs, dashboards, and central control displays ? Passenger/rear seat entertainment displays, and multi-connected displays ? Streaming electronic rearview mirrors, and armrest displays | ? Body in white ? Seat framework assembly | ? Automotive electronics (BMS, MCU, ECU, etc.) |
| ? Electric drive and electric control casings ? Domain control casings | ? Rigid PCBs and rigid-flex PCBs for central control system/GPS ? Rigid PCBs and rigid-flex PCBs for information & entertainment systems/ Internet of Vehicles | ||
| ? Camera brackets and assemblies ? Rigid PCBs and rigid-flex PCBs for cameras | ? Casings and rigid PCBs for laser radars and millimeter wave radars ? Rigid PCBs for advanced driving assistance system and central computing unit | ? Cell casings ? Battery pack trays and assemblies ? Rigid PCBs and CCS for battery packs | ? Charging station framework and casing assemblies |
(3) Our situation in the industry
In the field of PCB, according to the research data published by Prismark, in terms of sales revenues in 2023, we are ranked second inthe field of FPC and third in the field of PCB in the world. We have strong technology R&D, quality control, and smart factorymanagement capabilities in the PCB industry, and can provide customers with high-quality products and services. Our major PCBcustomers are well-known global consumer electronics and new energy vehicle manufacturers, so we have a good customer base andstrong competitiveness.In the field of precision components, we are one of the largest specialized precision component suppliers, provide structural componentsfor new energy vehicles, communication equipment and other fields, and mainly serve well-known global new energy vehicle andcommunication equipment manufacturers. We have strong competencies in the industry and are one of the few vendors able to providethe new energy vehicle manufacturers with PCBs (including FPCs), on-board displays, functional and structural components, and otherproducts and integrated solutions. In the future, we will leverage our advantages in the coverage of multiple industry chains and theprovision of integrated solutions to further improve customer adhesion.In the field of touch panel modules and LED display devices, we are one of the largest touch panel modules and LED display devicemanufacturers in China. With the completion of our acquisition and integration of Suzhou JDI, we further expand our on-board displaymodule business and strengthen our overall competence in the field of touch panel modules.
II. Core Competencies of DSBJ
(I) Advantage in customers: Premium domestic and foreign customer baseOur products find favor with top customers in different areas throughout the world and have a premium customer base, which has agood demonstration effect and will help us further enhance our capability to develop new customers and acquire larger market sharesin the future competition. Our customers come from consumer electronics, new energy vehicles, communication equipment and otherindustries. Such a diversified customer base enables us to fend off the impact of seasonal and cyclical fluctuations of different industries,and improve our core competencies while maintaining stable growth of business.(II) Advantage in products: Wide range of products and integrated industry chainIn recent years, focusing on the R&D and production of core components related to consumer electronics and new energy industry, wehave continuously improved our industrial and product mix through acquisitions and internal development, broken developmentbottlenecks, and introduced superior businesses to build up new growth drivers. At present, our product offerings cover three businesssegments, namely PCB, photoelectric display and precision manufacturing. We are able to provide consumer electronics and newenergy vehicle manufacturers with a variety of basic and core components for intelligent interconnection. In the field of PCB, we havegrown into a leading company in the industry. We actively leverage the synergistic effect of all business segments in R&D, technology,supply chain, products, marketing and other areas, through the integration of internal resources and coordinated development, graduallyachieve the synergy advantage of a vertically integrated industry chain, and strive to provide comprehensive, one-stop andtechnologically advanced integrated product solutions to our customers and satisfy their customization requirements to the maximumextent.(III) Advantage in technology: Stick to the principle that technological innovation capability is the primary production factorWe attach great importance to technological innovation in our business development and drive our development through innovation.Through participation in the preliminary development projects of industry-leading customers, we keep in step with the development of
cutting-edging technologies and have built a complete open R&D system and efficient R&D mechanisms, and a global R&D team withoutstanding professional level, rich industrial experience and strong innovation capabilities. Through continuous funding for R&D ofnew materials, new technologies and new production processes, we have vigorously explored frontier production technologies for corecomponents in the field of intelligent interconnection, and laid solid foundations for serving emerging businesses, such as AR/VR, IoT,Mini LED and new energy vehicles. While improving product technologies, we attach great importance to the innovation and upgradingof production technologies and have gained certain effects in the integrated development of informatization and industrialization. Bypromoting the integrated development of informatization and industrialization, we have vigorously implemented intelligentmanufacturing and built smart factories.(IV) Advantage in management: Advanced concept, complete system and efficient executionWe advocate the corporate spirit of “openness, inclusion and pragmatism”, stick to the management principle of “overall planning, thedelegation of powers in business operation, support by the platform and centralized supervision”, give full play to the initiative andcreativity of all organizations, and have built a scientific and efficient management system. Our management team has practicalexperience in the management of the advanced manufacturing industry, has wide global visions, can make accurate strategic judgmentsand decisions on the trends of industry and opportunities for development, and has strong cohesion and executive ability. We embracea pragmatic and enterprising approach in day-to-day management and operation, make periodic benchmarking analyses to compareour performance against historic data, budget targets and the results of outstanding peers, and effectively improve the quality andefficiency of our operations and timely adjust our operational strategy, by setting examples and objectives, identifying breakthroughpoints, focusing on implementation and reviewing what has been done, to lay solid foundations for our sustainable high-qualitydevelopment.(V) Advantage in scale: Promote development in reliance on advantage in scale and increase benefits based on synergistic effectOur customers are well-known domestic and international hi-tech companies that have high purchase quantities, strict requirements forthe delivery of products, and high requirements for the scale of production and production efficiency of suppliers. Through years ofdevelopment and accumulation, we have grown into a supplier of core components for intelligent interconnection with relatively strongoverall capabilities in China. Our large scale of production can satisfy the purchase demands of major downstream customers, creatinga big advantage in scale. Our advantage in scale provides us with strong bargaining power in the purchase of raw materials, resultingin the reduction of the unit production costs. On the other hand, through effective integration of internal resources, we can reduceoperating costs, thereby increasing our superiority over our competitors, further consolidating and enhancing our position in theindustry, and improving our core competencies.(VI) Advantage in internationalization: Promote the establishment of a “dual circulation” development patternWe closely follow the national development strategies, actively take part in global economic competitions, and continuously enhancethe integration of high-quality resources of the industry. After the completion of two overseas acquisitions, we have successfullyentered the PCB industry that has broader prospects for development, optimized our industrial structure, and laid solid foundations forour high-quality development. We have achieved growth in both scale of operation and results of operations through such lead-forwarddevelopment. In recent years, we have established operating entities with different functions in North America, Europe, Southeast Asiaand other countries and regions. In 2022, to implement our new-round development strategy and grasp the development opportunitiesbrought about by the new energy vehicle industry, we established the “two-wheel drive” strategy and decided to focus our efforts onthe two core fields, namely consumer electronics and new energy vehicles. To actively respond to the demands of customers, we haveaccelerated the construction and production of overseas production bases. These actions will further improve our global operatingcapabilities, promote the establishment of a “dual circulation” development pattern, and enable us to actively cope with the complicatedcompetition environment.
III. Analysis of Primary BusinessIn the first half of 2024, we have been proactive in adapting to and integrating with the new economic development cycle with therapid emergence of new products and technologies, etc., amidst multiple opportunities and challenges. Leveraging thorough marketresearch and analysis, we have maintained a steadfast approach and resilience, reinforcing our strategic resolve and organizationalcapabilities for corporate growth. Adhering to our strategic vision and a commitment to high-quality and sustainable operation, wehave vigorously invested in research and development, and intensified our efforts in nurturing and recruiting key talents, with ourcomprehensive initiatives encompassing industrial restructuring, innovation in product portfolio, expansion of customer base,integration of information technology and industrialization, and management of costs. During the reporting period, our core businessof PCB has seen steady growth, while our new energy business has progressed in an orderly fashion. For the first six months of 2024,we recorded an operating revenue of RMB16,628,586,200, a year-on-year increase of 21.67%. However, the significant non-recurringrevenue in the same period of the previous year, coupled with the exchange rate fluctuations and the ramp-up of new product massproduction, has exerted certain pressures on our current period’s financial performance. Consequently, for the reporting period, wehave achieved a net profit of RMB560,600,900, reflecting a year-on-year decrease of 32.01%. Our main endeavors from January toJune 2024 can be seen as follows:
I. Core business strengths and organic growthIn the PCB sector, we have adeptly seized the opportunities presented by industry development. We maintain a consistent and stablepresence in our core customer base, industry forecast, product technology, and production capacity planning, allowing us to fortify ourcompetitive edge and expand our field into broader market segments. With the advent of AI, we have intensified our R&D efforts inthe creation of PCB (including FPC) products tailored for AI servers, cloud computing, and automotive sector, among others, and areproactively engaging with new customer development. By ongoing investment in R&D to bolster our technological prowess, we areactively positioning ourselves at the forefront of innovative technology products, to capitalize on emerging industry trends and embracethe dawn of a new era of sci-tech innovation.II. Rapid growth of emerging businesses and enhanced development resilienceDuring the reporting period, our new energy sector achieved a revenue of RMB3.81 billion, a year-on-year increase of approximately
29.33%, further elevating its share in our overall revenue. We have taken various measures to mobilize resources, strengthen internaland external collaboration, and implement agile marketing strategies, fostering a positive trajectory for our new energy business whichhas become a robust engine propelling us towards a future of sustainable development. With the gradual release of new productioncapacity and the smooth delivery of new products, our consumer electronics and new energy businesses have synergized to form aresilient portfolio, laying a solid foundation for our high-quality development.III. Concentration on high-quality revenue streams and adjustment to non-core businessesIn the intricate and dynamic competitive landscape of our industry, we observed a plateau in the operational efficiency of our non-corebusinesses, particularly in the LED sector. To address this, we have promptly realigned our business strategy, by implementing a leanmanagement approach to drive continuous cost reduction and efficiency improvement across the entire value chain on the one hand,and making adjustments to our customer and product portfolios, as well as our operation mode, on the other hand, to ensure the steadydevelopment of the business sector in the pursuit of an early success.IV. Innovative talent pool cultivation and organizational capabilities improvementWe are committed to creating a people-centric culture, attracting and retaining top-tier talent from across the globe. Aligned with ourstrategic vision and bolstered by our industry operations, we are dedicated to building an agile and efficient organizational structure.
Through internal development programs and external hiring initiatives, we ensure a steady pipeline of talents for our critical roles, andfurther strengthen our organizational capabilities, which helps achieve effective business growth, thereby bringing a win-win situationfor both the Company and the employees.V. Efficient business-finance integration system and data governanceConstructing an efficient business-finance integration system and enhancing operational management efficiency based on datagovernance are essential for sustainable development and continuous upgrading of our enterprise. With great emphasis on this regard,we have made active deployment, accordingly, deeply integrating business and financial data through a unified information platform,actively optimizing resource allocation within the enterprise, enhancing the scientific rigor and precision of our business decisions, andimplementing strict risk control for comprehensive business oversight, to support our ongoing enhancement and optimization.
Year-on-year changes in key financial data
In RMB
| The reporting period | The same period of the previous year | Y/Y % change | Reason for change | |
| Operating revenue | 16,628,586,195.56 | 13,667,087,825.06 | 21.67% | |
| Operating cost | 14,455,695,057.51 | 11,831,369,939.99 | 22.18% | |
| Selling expenses | 198,461,411.65 | 170,543,696.07 | 16.37% | |
| Administrative expenses | 513,932,018.38 | 427,064,667.98 | 20.34% | |
| Financial expenses | -27,540,920.14 | -39,094,547.94 | 29.55% | Mainly due to exchange rate fluctuations during the same period of the previous year, resulting in exchange gains. |
| Income tax expenses | 124,174,716.66 | 121,848,672.48 | 1.91% | |
| Net cash flows from operating activities | 2,088,969,399.28 | 2,613,900,836.02 | -20.08% | |
| Net cash flows from investing activities | -1,813,918,499.58 | -3,422,844,648.27 | 47.01% | Mainly due to the acquisition of Suzhou JDI and Aranda in the same period of the previous year to improve industrial layout, and a significant decrease in cash payments for the acquisition and construction of fixed assets and intangible assets in the current period. |
| Net cash flows from financing activities | 35,241,082.03 | 560,451,468.64 | -93.71% | Mainly due to the increase in cash received from loans for mergers and acquisitions and other projects in the same period of the previous year. |
| Net increase in cash and cash equivalents | 406,867,075.93 | 163,708,277.65 | 148.53% | Mainly due to a significant decrease in cash flows from investing activities in the current period. |
Whether there is a significant change in the components or sources of profits during the reporting period of the Company?
□Applicable ?N/A
There have been no significant changes in the components or sources of profits during the reporting period of the Company.
Components of operating revenue
In RMB
| The reporting period | The same period of the previous year | Y/Y % change | |||
| Amount | % of operating revenue | Amount | % of operating revenue | ||
| Total operating revenue | 16,628,586,195.56 | 100% | 13,667,087,825.06 | 100% | 21.67% |
| By segment | |||||
| Computer, communication and others | 16,521,772,107.69 | 99.36% | 13,595,558,213.91 | 99.48% | 21.52% |
| Others | 106,814,087.87 | 0.64% | 71,529,611.15 | 0.52% | 49.33% |
| By product | |||||
| PCBs | 10,850,236,100.11 | 65.25% | 8,972,283,939.36 | 65.65% | 20.93% |
| LED display devices | 437,960,520.69 | 2.63% | 419,906,375.52 | 3.07% | 4.30% |
| Touch panels and LCMs | 3,122,349,556.40 | 18.78% | 2,218,634,131.10 | 16.23% | 40.73% |
| Precision components | 2,111,225,930.49 | 12.70% | 1,984,733,767.93 | 14.52% | 6.37% |
| Others | 106,814,087.87 | 0.64% | 71,529,611.15 | 0.52% | 49.33% |
| By region | |||||
| Domestic market | 3,206,081,274.20 | 19.28% | 2,663,920,474.21 | 19.49% | 20.35% |
| Overseas market | 13,422,504,921.36 | 80.72% | 11,003,167,350.85 | 80.51% | 21.99% |
Segments, products, or regions representing more than 10% of operating revenue or profit?Applicable □N/A
In RMB
| Operating revenue | Operating cost | Gross margin | Y/Y % change in operating revenue | Y/Y % change in operating cost | Y/Y % change in gross margin | |
| By segment | ||||||
| Computer, communication and others | 16,521,772,107.69 | 14,408,130,744.18 | 12.79% | 21.52% | 22.11% | -0.42% |
| By product | ||||||
| PCBs | 10,850,236,100.11 | 8,961,485,051.28 | 17.41% | 20.93% | 23.08% | -1.44% |
| LED display devices | 437,960,520.69 | 555,725,301.97 | -26.89% | 4.30% | -9.94% | 20.06% |
| Touch panels and LCMs | 3,122,349,556.40 | 2,998,825,987.36 | 3.96% | 40.73% | 35.91% | 3.41% |
| Precision components | 2,111,225,930.49 | 1,892,094,403.57 | 10.38% | 6.37% | 11.65% | -4.24% |
| By region | ||||||
| Domestic market | 3,206,081,274.20 | 3,073,410,884.20 | 4.14% | 20.35% | 26.12% | -4.38% |
| Overseas market | 13,422,504,921.36 | 11,382,284,173.31 | 15.20% | 21.99% | 21.16% | 0.58% |
Note:
1. During the reporting period, the gross margin on LED display devices decreased by 20.06% compared to the previous year, mainlydue to the significant impact of price reductions in the same period of the previous year. Meanwhile, during the reporting period, theCompany actively adjusted its business strategy, gradually improving operational efficiency and significantly reducing losses.
2. During the reporting period, the overall revenue from the new energy business was approximately RMB3.81 billion, a year-on-yearincrease of about 29.33%.
In case of any adjustment to the statistic scale for primary business data, the primary business data of the most recent reporting periodas adjusted according to the statistic scale applied at the end of the reporting period:
□Applicable ?N/A
IV. Analysis of Non-primary Business
□Applicable ?N/A
V. Analysis of Assets and Liabilities
1. Material changes in the components of assets
In RMB
| The end of the reporting period | The end of the previous year | Y/Y % change | Reason for significant change | |||
| Amount | % of total assets | Amount | % of total assets | |||
| Cash and bank balances | 7,954,476,596.69 | 17.44% | 7,190,036,231.06 | 16.20% | 1.24% | |
| Accounts receivable | 6,634,848,769.35 | 14.54% | 7,713,164,772.05 | 17.38% | -2.84% | |
| Inventories | 6,191,742,129.70 | 13.57% | 6,293,879,276.54 | 14.18% | -0.61% | |
| Investment properties | 909,984.68 | 0.00% | 1,038,840.26 | 0.00% | 0.00% | |
| Long-term equity investment | 151,095,048.38 | 0.33% | 155,406,879.89 | 0.35% | -0.02% | |
| Fixed assets | 12,712,146,406.50 | 27.87% | 12,415,251,689.80 | 27.98% | -0.11% | |
| Construction in progress | 2,212,779,454.69 | 4.85% | 1,842,525,188.54 | 4.15% | 0.70% | |
| Right-of-use assets | 1,268,794,116.83 | 2.78% | 1,252,668,050.83 | 2.82% | -0.04% | |
| Short-term borrowings | 5,605,192,891.45 | 12.29% | 5,156,100,217.01 | 11.62% | 0.67% | |
| Contract liabilities | 47,925,820.33 | 0.11% | 28,982,676.07 | 0.07% | 0.04% | Primarily due to the increase in consideration received or receivable from customers recognized in accordance with the revenue standards during the reporting period. |
| Long-term borrowings | 5,230,423,595.11 | 11.47% | 4,706,280,338.76 | 10.61% | 0.86% | |
| Lease liabilities | 1,880,994,634.25 | 4.12% | 1,842,799,193.80 | 4.15% | -0.03% | |
2. Main overseas assets
?Applicable □N/A
In RMB
| Assets | Method of acquisition | Amount | Location | Mode of operation | Controls for | Income | Proportion of overseas | Whether it involves |
| guaranteeing the security of assets | assets to net assets | risk of material impairment loss | ||||||
| Dragon Holdings | Established | 23,286,696,469.94 | USA | R&D and sales | Its manufacturing entity is located in China | 504,108,042.99 | 38.50% | No |
| Multek Group | Established | 4,591,758,824.18 | Hong Kong, China | R&D and sales | Its manufacturing entity is located in China | 64,491,255.47 | 14.72% | No |
3. Assets and liabilities at fair value
?Applicable □N/A
In RMB
| Item | Opening balance | Gain or loss on changes in fair value | Aggregate changes in fair value recorded in equity | Impairment loss recognized in the current period | Amount acquired in the current period | Amount sold in the current period | Other changes | Closing balance |
| Financial assets | ||||||||
| 1. Financial assets held for trading (excluding derivative financial assets) | 47,442,038.61 | 1,628,643.87 | 45,813,394.74 | |||||
| 2. Derivative financial assets | 26,920,185.50 | 878,826.55 | -5,788,330.68 | 332,547,414.10 | 328,775,586.82 | 25,782,508.65 | ||
| 4. Investment in other equity instruments | 71,779,147.66 | 10,712,107.78 | 13,171,126.62 | 69,320,128.82 | ||||
| Subtotal of financial assets | 146,141,371.77 | 878,826.55 | -5,788,330.68 | 343,259,521.88 | 343,575,357.31 | 140,916,032.21 | ||
| Total | 146,141,371.77 | 878,826.55 | -5,788,330.68 | 343,259,521.88 | 343,575,357.31 | 140,916,032.21 | ||
| Financial liabilities | 104,174,076.23 | 15,944,462.47 | 168,116,100.36 | 107,659,497.52 | 180,575,141.54 | |||
Is there a significant change in the measurement attributes for the Company’s main assets during the reporting period?
□Yes ?No
4. Restrictions on assets as of the end of the reporting period
In RMB
| Item | Closing balance | Opening balance | ||||||
| Book balance | Carrying value | Type of restriction | Reason of restriction | Book balance | Carrying value | Type of restriction | ||
| Cash and bank balances | 1,903,122,502.45 | 1,903,122,502.45 | Pledge | Security deposit for notes, etc. | 1,315,351,783.39 | 1,315,351,783.39 | Pledge | Security deposit |
| for notes, etc. | ||||||||
| Notes receivable | 115,000,000.00 | 115,000,000.00 | Pledge | Discounted and not mature | 130,000,000.00 | 130,000,000.00 | Pledge | Discounted and not mature |
| Fixed assets | 784,051,228.85 | 354,652,169.33 | Mortgage | Security for loans, sales and leaseback | 784,051,228.85 | 418,641,701.59 | Mortgage | Security for loans, sales and leaseback |
| Accounts receivable financing | 85,726,047.96 | 85,726,047.96 | Pledge | Pledge of notes | 172,685,965.02 | 172,685,965.02 | Pledge | Pledge of notes |
| Right-of-use assets | 1,594,403,240.92 | 1,268,794,116.83 | Mortgage | Finance lease | 1,535,413,001.39 | 1,252,668,050.83 | Mortgage | Finance lease |
| Accounts receivable | Pledge | Factoring | 96,168,092.66 | 96,168,092.66 | Pledge | Factoring | ||
| Total | 4,482,303,020.18 | 3,727,294,836.57 | 4,033,670,071.31 | 3,385,515,593.49 |
VI. Analysis of Investments
1. Overview
?Applicable □N/A
| Amount of investment in the reporting period (RMB) | Amount of investment in the same period of the previous year (RMB) | Y/Y % change |
| 568,500,000.00 | 462,235,700.00 | 22.99% |
2. Major equity investments acquired during the reporting period
□Applicable ?N/A
3. Major non-equity investments that have not yet been completed in the current period
□Applicable ?N/A
4. Investment in financial assets
(1) Investment in securities
□Applicable ?N/A
We have not invested in any securities during the reporting period.
(2) Investment in derivatives
?Applicable □N/A
1) Investment in derivatives for hedging purposes during the reporting period
?Applicable □N/A
In RMB0’000
| Type of investment in derivatives | Initial investment amount | Opening balance | Gain or loss on changes in fair value | Aggregate changes in fair value recorded in equity | Amount acquired in the current period | Amount sold in the current period | Closing balance | % of net assets at the end of the reporting period |
| Commodity futures | 16,561.58 | 9,940.16 | 2,087.93 | 0 | 39,793.46 | 26,466.08 | 25,355.47 | 0.55% |
| Total | 16,561.58 | 9,940.16 | 2,087.93 | 0 | 39,793.46 | 26,466.08 | 25,355.47 | 0.55% |
| Hedge accounting policies and principles adopted for the reporting period and significant changes in such policies and principles compared to the previous reporting period | None | |||||||
| Actual profit or loss for the reporting period | The loss on commodity futures transactions recorded in profit or loss was RMB20,879,300. | |||||||
| Effect of hedging | We prohibit any risky speculative behavior for the purpose of locking in costs and avoiding the risks of commodity price fluctuations, in order to better avoid the risks associated with commodity price fluctuations and enhance our financial soundness. | |||||||
| Source of funds for investment in derivatives | Self-owned funds | |||||||
| Analysis of risks associated with the derivatives held in the current period (including without limitation market risk, liquidity risk, credit risk, operational risk and legal risk) and related risk control measures | Refer to the Announcement of Commodity Futures Hedging Transactions (2023-074) disclosed by us on December 30, 2023, for the relevant risk analysis and controls. | |||||||
| Changes in the market price or fair value of the derivatives held in the current period (in the analysis of the fair value of derivatives, the specific approaches, assumptions and parameters used shall be disclosed) | We are mainly engaged in hedging transactions with mainstream products on major domestic futures markets. The derivatives traded by us have a transparent and active market, and their transaction prices and settlement prices can fully reflect their fair value. | |||||||
| Litigation involved (if applicable) | N/A | |||||||
| Disclosure date of the announcement of the board of directors approving the investment in derivatives (if any) | December 30, 2023 | |||||||
5. Use of offering proceeds
?Applicable □N/A
(1) Summary of use of offering proceeds
?Applicable □N/A
In RMB0’000
| Year of offering | Method of offering | Total offering proceeds | Net offering proceeds | Total amount of offering proceeds used in the current period | Aggregate amount of offering proceeds already used | Total amount of offering proceeds the purpose of which was changed in the current period | Aggregate amount of offering proceeds the purpose of which has been changed | Percentage of offering proceeds the purpose of which has been changed | Total amount of unused offering proceeds | Purpose and whereabouts of unused offering proceeds | Total amount of offering proceeds that has remained unused for more than two years |
| 2020 | Private placement | 289,225.58 | 286,395.39 | 9,468.97 | 270,604.33 | 22,449.78 | 84,015.25 | 29.05% | 16,613.54 | Continuous investment | |
| Total | -- | 289,225.58 | 286,395.39 | 9,468.97 | 270,604.33 | 22,449.78 | 84,015.25 | 29.05% | 16,613.54 | -- | 0 |
| Description of the overall use of offering proceeds | |||||||||||
| With the approval of the CSRC under the Reply on Approval of Private Placement of Shares by Suzhou Dongshan Precision Manufacturing Co., Ltd. (Zheng Jian Xu Ke [2020] No. 980), we privately offered 103,294,850 RMB-denominated ordinary A-shares at the offer price of RMB28.00 per share to specified investors through the lead underwriter Tianfeng Securities Co., Ltd., and raised RMB2,892,255,800 in total, and after deduction of the underwriter’s fee and sponsor’s fee totaling RMB22,169,800 (exclusive of tax), the balance of the offering proceeds, RMB2?868?755?800, was remitted to our supervisory account of offering proceeds by Tianfeng Securities Co., Ltd. on July 13, 2020. After the deduction of the accountant’s fee, attorney’s fee, legal information disclosure fee and other external costs directly relating to the offering of equity securities, totaling RMB6,132,100 (exclusive of tax), the amount of net offering proceeds was RMB2?863?953?900 (exclusive of tax). Pan-China Certified Public Accountants LLP verified the receipt of such offering proceeds and issued the Capital Verification Report (PCCPA Capital Verification [2020] No. 5-9). | |||||||||||
(2) Committed investment projects using offering proceeds
?Applicable □N/A
In RMB0’000
| Committed investment project and use of over-raised funds | Whether the project has been changed or partially changed | Total committed investment amount | Total investment amount as adjusted (1) | Amount invested in the current period | Aggregate amount already invested as of the end of the reporting period (2) | Progress of investment as of the end of the reporting period (3) =(2)/(1) | Date that the project is ready for its intended use | Income earned in the current period | Whether the project has produced the desired result | Whether there’s any significant change in the feasibility of the project |
| Committed investment project | ||||||||||
| 400,000 m2 fine line FPC production and assembly capacity expansion project | No | 80,338.48 | 80,338.48 | 79,798.34 | 99.33% | January 5, 2022 | 10,377.99 | Yes | No | |
| Ultra-fine circuit board project of MFLEX Yancheng | No | 22,449.78 | 5,845.98 | 5,845.98 | 26.04% | N/A | No | |||
| Multek 5G high-speed high-frequency and high-density PCB technology upgrading project | Yes | 65,958.46 | 43,508.68 | 3,622.99 | 43,312.7 | 99.55% | 1,678.42 | No | Yes | |
| Multek PCB production line technology upgrading project | No | 72,805.89 | 72,805.89 | 71,858.33 | 98.70% | April 19, 2023 | 4,495.13 | Yes | No | |
| FPC for new energy application and assembly project of MFLEX Yancheng | No | 61,565.47 | 61,368.3 | 99.68% | August 24, 2023 | 3,032.61 | Yes | No | ||
| Wireless module production and construction project of Yancheng Dongshan Communication Technology Co., Ltd. | Yes | 70,122.75 | 8,557.28 | 8,420.68 | 98.40% | N/A | Yes | |||
| Subtotal | -- | 289,225.58 | 289,225.58 | 9,468.97 | 270,604.33 | -- | -- | 19,584.15 | -- | -- |
| Use of over-raised funds | ||||||||||
| None | ||||||||||
| Total | -- | 289,225.58 | 289,225.58 | 9,468.97 | 270,604.33 | -- | -- | 19,584.15 | -- | -- |
| Failure to meet the scheduled progress and produce the desired result and reason thereof (please describe on a project-by-project basis, including the reason for selecting N/A in the column “whether the project has produced the desired result”) | Affected by the international environment in terms of chip supply, technical support, equipment procurement and market prospect, among others in China’s 5G industry, the progress of the 5G project construction in China was slowed down. In light of other factors such as changes in domestic and international economic environment and market demand, and intensified competition within the industry, etc., the benefit of the “Multek 5G high-speed high-frequency and high-density PCB technology upgrading project” grew slowly and fell short of expectation. Therefore, during the reporting period, we changed the “Multek 5G high-speed high-frequency and high-density PCB technology upgrading project” into the “ultra-fine circuit board project of MFLEX Yancheng”. | |||||||||
| Reason for significant change in the feasibility of the project | 1. Under the effect of changes in the macroeconomic environment and the international environment in recent years, the progress of the 5G project construction in China was slowed down and failed to meet the expectation. In light of other factors such as changes in domestic and international economic environment and market demand, and intensified competition within the industry, etc., the progress of investment in the original “Multek 5G high-speed high-frequency and high-density PCB technology upgrading project” was slow. Therefore, in order to improve the efficient use of offering proceeds, we have decided to cease the production and construction of such change, and to change the same into the “ultra-fine circuit board project of MFLEX Yancheng”. 2. Due to the bottleneck in the development of 5G communication, weak downstream demands and other unfavorable factors, the progress of the “Wireless module production and construction project of Yancheng Dongshan Communication Technology Co., Ltd.” fell short of expectations. In light of the rapid development of the new energy vehicle market and rising demands of the on-board FPC market, as a component supplier for the international leading new energy vehicle manufacturers, we need to further improve our industrial deployment, capability to serve the downstream customers, and overall competencies. Therefore, in order to ensure the efficient use of offering proceeds, we have decided to change the “wireless module production and construction project of Yancheng Dongshan Communication Technology Co., Ltd.” into the “FPC for new energy application and assembly project of MFLEX Yancheng”. |
| Amount and use of over-raised offering proceeds and progress of use thereof | N/A |
| Change in the place of the committed investment project | N/A |
| Adjustment of the method of implementation of the committed investment project | N/A |
| Funds pre-invested in the investment project and replacement thereof | Applicable |
| At the 3rd meeting of the 5th Board of Directors, the Proposal for Replacing the Self-raised Funds Pre-invested in the Committed Investment Projects with the Idle Offering Proceeds was considered and adopted, approving the replacement of the funds of RMB 399,591,400 pre-invested in the committed investment projects with the offering proceeds. The replacement was completed in 2020. | |
| Temporary replenishment of working capital with the idle offering proceeds | Applicable |
| At the 2nd meeting of the 6th Board of Directors held on June 12, 2023, the Proposal for Temporary Replenishment of Working Capital with the Idle Offering Proceeds was considered and adopted, approving the temporary replenishment of working capital with the idle offering proceeds up to RMB250 million. As of June 30, 2024, we have returned all of the above idle offering proceeds temporarily replenishing the working capital to the dedicated account of offering proceeds. | |
| Amount of surplus offering proceeds and reason thereof | Applicable |
| The “400,000 m2 fine line FPC production and assembly capacity expansion project”, the “Multek PCB production line technology upgrading project” and the “FPC for new energy application and assembly project of MFLEX Yancheng” have been completed with the investment as committed. RMB6,651,800, or 0.23%, of the offering proceedings designated for these projects were left unused. Such surplus was achieved because we followed the principle of reasonableness, economy and effectiveness, used the offering proceeds prudently, enhanced control, supervision and management of all kinds of expenses, reasonably allocated and optimized all kinds of resources, and reasonably reduced the relevant costs and expenses. In addition, we earned certain interest income from the offering proceeds. | |
| Purpose and whereabouts of unused offering proceeds | As of June 30, 2024, the amount of unused offering proceeds was RMB172,787,200, of which, RMB166,135,400 was deposited in the dedicated account of offering proceeds, and the surplus offering proceeds of RMB6,651,800 after the completion of projects used to permanently replenish the working capital. |
| Problems or other situations in the use and disclosure | None |
of offeringproceeds
(3) Changes in the committed investment projects using offering proceeds
?Applicable □N/A
In RMB0’000
| New project | Original committed project | Amount of offering proceeds to be invested in the new project (1) | Amount invested in the current period | Aggregate amount already invested as of the end of the reporting period (2) | Progress of investment as of the end of the reporting period (3) =(2)/(1) | Date that the project is ready for its intended use | Income earned in the current period | Whether the project has produced the desired result | Whether there’s any significant change in the feasibility of the project |
| Ultra-fine circuit board project of MFLEX Yancheng | Multek 5G high-speed high-frequency and high-density PCB technology upgrading project | 22,449.78 | 5,845.98 | 5,845.98 | 26.04% | N/A | No | ||
| FPC for new energy application and assembly project of MFLEX Yancheng | Wireless module production and construction project of Yancheng Dongshan Communication Technology Co., Ltd. | 61,565.47 | 0 | 61,368.3 | 99.68% | August 24, 2023 | 3,032.61 | Yes | No |
| Total | -- | 84,015.25 | 5,845.98 | 67,214.28 | -- | -- | 3,032.61 | -- | -- |
| Reason for change, decision-making procedures and information disclosure (please describe on a project-by-project basis) | 1. Regarding the original “Multek 5G high-speed high-frequency and high-density PCB technology upgrading project” which was mainly intended for the field of mobile communication, we arranged the investment schedule based on market demand, with the amount of input primarily used for equipment purchase and installation. The related assets can still be used in the future, in furtherance of our overall automation level and production efficiency. Meanwhile, the project had come into service and generated investment benefits. However, due to the impact of the international environment on chip supply, technical support, equipment procurement, and market prospects of China’s 5G industry, etc., the progress of 5G project construction in China was slowed down. In light of other factors such as changes in domestic and international economic environment and market demand, as well as intensified competition within the industry, the investment in the project showed | ||||||||
| slow progress. Therefore, we have decided to change such project into the “ultra-fine circuit board project of MFLEX Yancheng”. The corresponding change in the use of offering proceeds was approved at the 9th meeting of the 6th Board of Directors and the 7th meeting of the 6th Board of Supervisors held on April 16, 2024, and the annual general meeting in 2023 held on May 10, 2024, which has been disclosed on www.cninfo.com.cn, and our designated newspapers for information disclosure. 2. Due to the bottleneck in the development of 5G communication, weak downstream demands and other unfavorable factors, the progress of the “wireless module production and construction project of Yancheng Dongshan Communication Technology Co., Ltd.” fell short of expectations. In light of the rapid development of the new energy vehicle market and rising demands of the on-board FPC market, as a component supplier for the international leading new energy vehicle manufacturers, we need to further improve our industrial deployment, capability to serve the downstream customers, and overall competencies. Therefore, in order to ensure the efficient use of offering proceeds, we have decided to change the “wireless module production and construction project of Yancheng Dongshan Communication Technology Co., Ltd.” into the “FPC for new energy application and assembly project of MFLEX Yancheng”. Such change in the use of offering proceeds was approved at the 19th meeting of the 5th Board of Directors and the 13th meeting of the 5th Board of Supervisors held on February 17, 2022, and the first extraordinary general meeting in 2022 held on March 8, 2022, and disclosed on www.cninfo.com.cn, and our designated newspapers for information disclosure. | |
| Failure to meet the scheduled progress and produce the desired result and reason thereof (please describe on a project-by-project basis) | N/A |
| Reason for significant change in the feasibility of the project | N/A |
VII. Sale of Material Assets and EquitiesVIII. Analysis of Major Subsidiaries and Associates
?Applicable □N/AMajor subsidiaries and associates representing more than 10% of the net profit of the Company:
In RMB
| Company name | Type of company | Primary business | Registered capital | Total assets | Net assets | Operating revenue | Operating profit | Net profit |
| Dragon Holdings | Subsidiary | Design, R&D, sale and after-sale services in respect of PCBs; investment holding | USD113,450,100 | 23,286,696,469.94 | 7,012,087,155.34 | 17,150,298,346.87 | 607,153,066.63 | 504,108,042.99 |
| Multek Group | Subsidiary | R&D, sale and after-sale services in respect of PCBs; investment holding | USD218,248,360.27 | 4,591,758,824.18 | 2,680,181,701.78 | 1,936,419,646.79 | 77,877,604.47 | 64,491,255.47 |
IX. Structured Entities Controlled by the Company
□Applicable ?N/A
X. Risk Exposures to the Company and Countermeasures
1. Risk of concentration of customers
We have good customer resources. Our major customers are well-known domestic and international companies in the relevantindustries that are of sound credit and have established stable cooperation relationships with us. However, our top 5 customers constitutea large proportion of our total sales revenue, which may further increase in the future. Any material adverse change in the businesssituation of such major customers could have an adverse effect on our business.We will give full play to our advantages, make active deployment in the new energy and other emerging industries and strive to developnew customers, in order to mitigate the adverse effect of the relative concentration of customers on us.
2. Risks brought by rapid technology upgrading of the industry
Our business covers PCB, photoelectric display, precision manufacturing and other technology-intensive industries, and our productsare widely applied in consumer electronics, new energy vehicles, communication equipment, industrial equipment, and other fields, allof which are characterized by rapid technology upgrading. If our R&D and manufacturing capabilities fail to keep pace with the rapidtechnology upgrading of downstream products, our products and technologies may become obsolete.We will follow up on the new technologies and new processes of the industry from the strategic perspective and strive to keep ourtechnologies and processes at the advanced level through continuous and effective R&D funding.
3. Risk of changes in the global trade environment
Our major customers include some well-known international companies, and our export sales have grown steadily for years. ThoughChina has established good economic and trade cooperation relationships with major countries in the world, the increasingly fierceregional frictions in recent years may cause uncertainties in the applicable trade policies, which could affect our international trade.We will follow up on the development of international trade frictions, strengthen communication with our customers, and continue tofoster our competencies and customer adhesion.
4. Risk of market exploitation
We are a strong R&D and manufacturing enterprise in the fields of PCB, photoelectric display and precision manufacturing. Due toour stable product quality and efficient customer services, we have remarkable competencies, and are able to provide the downstreamenterprises with “one-stop” products and services, and satisfy their demands for systemic manufacturing solutions. However, ourdownstream industries are characterized by rapid upgrading and rapid changes in the preferences of consumers, among others. If our
major customers are at a disadvantage in the market, or we are unable to satisfy the demands of customers or fail to acquire newcustomers, the sales and margin rate of our products may decrease.We will continue to increase R&D funding, optimize our product mix and process structure, enhance our competencies, and activelycope with market competition.
5. Environmental risk
In our production, the electroplating, etching and other processes produce wastewater, waste gases and solid wastes, and therefore aresubject to strict requirements for environmental protection. We cannot exclude the possibility that environmental incidents may happenduring our production due to negligence in management, force majeure or otherwise. If we meet with any environmental incident, thatcause pollution to the environment or violates the applicable environmental protection laws and regulations, our reputation andoperations could be adversely affected. Along with the vigorous development of a green and low-carbon circular economicdevelopment system and improvement of people’s living standard in China, and increasingly enhanced awareness of environmentalprotection of people, the country attaches increasingly great importance to environmental protection. If the country puts forward stricterenvironmental protection requirements, we may need to increase the funding for environmental protection, which would increase ourenvironmental protection costs and in turn affect our results.We have set the building of an environment-friendly enterprise as a key goal of our sustainable development strategy, attached greatimportance to and increased the funding for environmental protection in our production and operation, actively responded to therequirements of the latest environmental protection laws and regulations, enhanced environmental protection training and employees’awareness of environmental protection, taken control measures at source, established and improved the environmental managementsystem, and implemented the requirements related to environmental safety in all of our key business activities, to reduce theenvironmental risks.
6. Foreign exchange risk
Export sales constitute a large proportion of our total sales revenue. Because our day-to-day operation involves transactions in USDand other foreign currencies, and our consolidated accounts are presented in RMB, the changes in the exchange rate between RMB andUSD may cause foreign exchange risk to our future operations.We will pay close attention to the changes in the relevant foreign exchange rates, strive to control the exposure to foreign exchangerisk at a reasonable level, and hedge or otherwise reduce exposure to such risk.
7. Quality control risk of auto parts products
The new energy automobile industry in which we are engaged is subject to a strict quality management and product certification system.Vehicle manufacturers have extremely high requirements for the quality and safety of auto parts products, taking product quality as animportant indicator for them to choose auto parts suppliers.
In response, we will improve the construction of a quality management system, strictly control the procurement of raw materials,production process and product testing, and establish a sound traceability mechanism, for the sake of timely recall and handling in caseof problems. Meanwhile, we will have closer cooperation with and strengthen supervision over suppliers to ensure stable and reliablequality of auto parts.XI. Implementation of the Action Plan to Improve the Quality and ReturnsWhether the Company has disclosed its action plan announcement to improve the quality and returns??Yes □NoI. Focus on the primary business, and adhere to the “two-wheel drive” strategyFor decades, we have focused on expanding and optimizing our primary business through internal development and acquisitions, andgradually formed three industrial segments, namely PCB, photoelectric display and precision manufacturing. Our products are widelyused in consumer electronics, new energy vehicles, communication equipment, industrial equipment, AI, servers, medical appliancesand other fields. In recent years, leveraging our technical advantages accumulated in the fields of consumer electronics andcommunication equipment, we have actively explored the wholly new field of new energy vehicles with a view to making contributionsto the green transition of the global energy structure, and built an industrial development pattern with consumer electronics and newenergy vehicle business at the core.In the field of consumer electronics, we have closely followed the steps of leading customers in strategic innovation, actively expandedglobal deployment while maintaining superior products, and through the improvement of technical capabilities, increased theapplication of our PCB products in emerging fields. In the field of new energy vehicles, in response to the demands of our customers,we have actively promoted the construction of domestic and overseas production bases, completed the acquisition of Suzhou JDI andUS Aranda, continuously expanded our production lines, and strived to provide the customers with one-stop products and services.Between January and September 2023, we recorded an operating revenue of RMB22.501 billion and a net profit of RMB1.333 billionattributable to the shareholders of the Listed Company, maintaining strong profitability; we also continuously optimized the structureof our core business, recorded a sales revenue of about RMB4.5 billion from the new energy business, and further increased theproportion of products with higher growth potentials in our operating revenues and profits. In the future, in order to promote our long-term and high-quality development and implement our corporate strategy to focus on the two key fields of consumer electronics andnew energy vehicles, we will further increase the production capacity of high-end PCB products and precision structural componentproducts, strive to satisfy the customer demands for supply chain management and innovative products in the fields of consumerelectronics and new energy vehicles, supply core products to key customers to seize the opportunities for rapid growth, continuouslycreate values for our customers, and actively enhance our core competencies.
II. Persist in innovation-driven development, and continuously promote digital transitionWe have adhered to long-termism, promoted innovation-driven development, closely followed the frontier technologies, continuouslyincreased R&D funding, and improved our R&D system; through participation in the preliminary development projects of leadingcustomers of the industry, enhanced technical innovation, improved production technologies and process capabilities, and continuouslycultivated new quality productive forces, to promote our high-quality development; further explored the frontier manufacturingtechnologies for core components in the field of intelligent interconnection, to lay a solid foundation for serving the future innovativebusiness fields, and further respond to customer demands; continuously promoted the integration of informatization andindustrialization, focused on the application of cutting-edge big data and AI technologies, vigorously promoted intelligentmanufacturing and built smart factories. In 2023, some of our subsidiaries were named “National Model Factory for IntelligentManufacturing” and “5G Factory of Jiangsu”, and awarded other honorary titles. While promoting the integration of informatizationand industrialization, we have also improved system and data governance, fully aroused the initiative and creativity of all organizations,established and improved a scientific and efficient management system, and enhanced our core competencies in an all-around wayfrom the system and organization levels.III. Enhance corporate governance and improve the level of operational complianceWe have continuously consolidated the basis of corporate governance, actively improved the level of corporate governance, andpromoted the sound operation of general meetings of shareholders, board of directors, board of supervisors and management;established and improved the internal control system, enhanced risk management, and improved the decision-making level, to enterinto a virtuous circle in our development, and vigorously protect the legitimate rights and interests of our shareholders. Our Board ofDirectors has seriously implemented all resolutions of shareholders, and faithfully performed their duty of loyalty. Our managementhas seriously performed all duties assigned by the Board of Directors, further improved their management capabilities, and continuouslyenhanced our core competencies, profitability and overall risk management capabilities, to achieve sustainable development and striveto maximize returns to our shareholders.IV. Put investors first, and attach great importance to returns to investors(I) Attach great importance to the quality of information disclosures. We have strictly complied with the information disclosureprinciples of “truthfulness, accuracy, completeness, timeliness and fairness”, strived to satisfy the demands of investors, continuouslyimproved the quality and effectiveness of information disclosures, and disclosed complete information related to our business and otheraffairs at multiple layers and from multiple perspectives. In the future, we will, taking into account our actual business situations anddevelopment characteristics, perform our information disclosure obligations with high quality, continuously optimize the ways todisclose our business information, proactively disclose useful information for the investors to make their investment decisions,
emphasize on the disclosure of important and well-targeted information, enhance the disclosure of critical information related toindustrial competition, business operation and risk factors, and reduce the disclosure of redundant information.(II) Enhance communications with investors. We have attached great importance to the management of investor relations, continuouslyimproved the working mechanisms and content of the management of investor relations, through performance briefings,teleconferences, on-site visits and investigations or otherwise, deepened the investors’ understanding of our production and businesssituations and other activities, and enhanced their acceptance of and confidence in us, to achieve the objectives of respecting investors,offering returns to investors and protecting investors. In the future, we will continue to build the ecosystem for active interactions withinvestors, provide conveniences for all kinds of investors to participate in the decision-making on material matters, and create long-term values for investors.(III) Attach great importance to returns to investors. While focusing on our own development, we have attached great importance toreturns to investors, and always put investors first. Since our listing, we have distributed cash dividends in strict accordance with theprofit distribution policy set forth in our Articles of Association and shared our development results with the investors. In the future,we will maintain a dynamic balance among our development, performance growth and returns to shareholders, according to the profitdistribution principle taking into account our development stage, seriously implement the mechanism of “long-term, stable andsustainable” returns to shareholders, and continuously enhance the investors’ sense of gain.We will remain true to our original aspiration, consolidate the foundation of our enterprise, keep pace with the times, and start a newjourney. We will always bear in mind returns to shareholders, put investors first, actively implement the action plan to improve thequality and returns, strive to improve our operating quality and investment value, effectively enhance the investors’ sense of gain, andmake positive contributions to the stabilization of market and confidence.
Section IV Corporate GovernanceI. Particulars of Annual General Meeting and Extraordinary General Meetings Held duringthe Reporting Period
1. General meetings held during the reporting period
| Session | Type of meeting | Percentage of investors attending the meeting | Date of meeting | Disclosure date | Resolution of the meeting |
| 1st extraordinary general meeting in 2024 | Extraordinary general meeting | 37.43% | January 23, 2024 | January 24, 2024 | Announcement of the resolutions of the 1st extraordinary general meeting in 2024 (Announcement No.: 2024-007) |
| 2nd extraordinary general meeting in 2024 | Extraordinary general meeting | 42.51% | March 29, 2024 | March 30, 2024 | Announcement of the resolutions of the 2nd extraordinary general meeting in 2024 (Announcement No.: 2024-024) |
| 2023 annual general meeting | Annual general meeting | 40.32% | May 10, 2024 | May 11, 2024 | Announcement of the resolutions of the 2023 annual general meeting (Announcement No.: 2024-046) |
2. Convening of extraordinary general meetings of shareholders at the request of preferred shareholderswith restituted voting rights
□Applicable ?N/A
II. Changes in Directors, Supervisors and Senior Executives
□Applicable ?N/A
There has been no change in our directors, supervisors and senior executives during the reporting period, as detailed in the AnnualReport 2023.
III. Profit Distribution and Capitalization of Capital Reserve during the Reporting Period
□Applicable ?N/A
We have no plan to pay cash dividends, distribute bonus shares or convert any capital reserve to the share capital during the reportingperiod.IV. Share Incentive Plans, Employee Stock Ownership Plans or Other Employee Incentives?Applicable □N/A
1. Share incentives
2. Employee stock ownership plans (ESOPs)
?Applicable □N/AEffective ESOPs in the reporting period:
| Scope of employees | No. of employees | Total shares held | Changes | % of total share capital | Source of funds |
| Key officers and technical personnel of the Company or its subsidiaries, excluding directors, supervisors and senior executives of the Company (2022 ESOP for key officers and technical personnel)1 | 308 | 1,366,120 | None | 0.08% | Legal remunerations of the employees, self-raised funds or otherwise permitted by the applicable laws and administrative regulations |
| Certain employees who do full-time jobs for, receive salaries from and have valid employment contracts with the Company or its controlled subsidiaries, excluding directors, supervisors and senior executives of the Company (2022 second ESOP) 2 | 366 | 4,847,178 | None | 0.28% | Legal remunerations of the employees, self-raised funds or otherwise permitted by the applicable laws and administrative regulations |
Note:
1. As of the end of the reporting period, the vesting period for the 2022 ESOP for key officers and technical personnel has expired, under which, the firstinstallment of shares, representing 50% of the total shares granted thereunder were already vested, and the second installment of shares, representing 50%of the total shares granted thereunder, has entered the vesting period.
2. As of the end of the reporting period, the lock-up period for the 2022 second ESOP was expired on April 25, 2024.
Shares held by the directors, supervisors and senior executives under the ESOPs during the reporting period: NoneChanges in asset manager during the reporting period:
□Applicable ?N/A
Changes in equity due to disposal of shares by the holders or otherwise during the reporting period:
□ Applicable ? N/A
Exercise of shareholder rights during the reporting period: None.Other information related to the ESOPs during the reporting period and the relevant explanation:
□ Applicable ? N/A
Changes in the members of the ESOP management committee during the reporting period:
□ Applicable ? N/A
The financial effect of the ESOPs on the Listed Company during the reporting period and the relevant accounting treatment:
□ Applicable ? N/A
Termination of the ESOPs during the reporting period:
□Applicable ?N/A
Other information: None
3. Other employee incentives
□Applicable ?N/A
Section V Environmental and Social Responsibilities
I. Material Environmental IssuesWhether the Listed Company and its subsidiaries have been identified as major polluters by the environmental protection authorities?? Yes □ NoPolicies and industrial standards related to environmental protection:
During the reporting period, we and our subsidiaries identified as major polluters have strictly complied with the EnvironmentalProtection Law of the People’s Republic of China, the Law of the People’s Republic of China on Prevention and Control of AtmosphericPollution, the Law of the People’s Republic of China on Prevention and Control of Water Pollution, the Law of the People’s Republicof China on Prevention and Control of Environmental Pollution by Solid Wastes, the Law of the People’s Republic of China onPrevention and Control of Noise Pollution, the Law of the People’s Republic of China on Prevention and Control of Soil Pollution, theLaw of the People’s Republic of China on Environmental Impact Assessment, the Work Safety Law of the People’s Republic of China,the Fire Protection Law of the People’s Republic of China and other laws and regulations related to environmental protection, andimplemented the Emission Standard for Odor Pollutants (GB14554-93), the Integrated Emission Standard for Air Pollutants(DB32/4041-2021), the Emission Standard of Air Pollutants for Boilers (GB13271-2014), the Emission Standard of Air Pollutants forIndustrial Furnaces and Kilns (DB32/3728-2021), the Standard for Pollution Control on Hazardous Waste Storage (GB18597-2001),the Emission Standard for Pollutants from Electroplating (GB21900-2008), the Emission Standard for Industrial Enterprises Noise atBoundary (GB12348-2008), the Standard for Fugitive Emission of Volatile Organic Compounds (GB37822-2019), the DischargeStandard of Water Pollutants for Electronic Industry (GB39731-2020), the Integrated Wastewater Discharge Standard (GB8978-1996),the Wastewater Quality Standards for Discharge to Municipal Sewers (GB/T31962-2015), the Standard for Pollution Control on theNon-Hazardous Industrial Solid Waste Storage and Landfill (GB18599-2020) and other national and industrial standards related toenvironmental protection.
Environmental PermitsEnvironmental permits held by the Company and its subsidiaries identified as major polluters during the reporting period:
| Company name | No. | Validity period |
| Suzhou Dongshan Precision Manufacturing Co., Ltd. | 91320500703719732P001U | From January 15, 2023, to January 14, 2028 |
| Multek Technology (Zhuhai) Co., Ltd. | 914404007718663989001X | From November 28, 2022, to November 27, 2027 |
| Multek Industries Limited | 91440400714732019J001W | From August 17, 2023, to August 16, 2028 |
| Multek Zhuhai Limited | 9144040061749918XX001Y | From April 12, 2022, to April 11, 2027 |
| Multek China Limited | 914404006182559377001W | From December 20, 2021, to December 19, 2026 |
| Yancheng Dongshan Precision Manufacturing Co., Ltd. | 91320903MA1P7PG85D001X | From October 8, 2023, to October 7, 2028 |
| MFLEX Yancheng Co., Ltd. | 91320903MA1P7PLE6D001T | From October 8, 2023, to October 7, 2028 |
| MFLEX Suzhou Co., Ltd. | 91320500738277671B001V | From August 14, 2023, to August 13, 2028 |
| MFLEX Suzhou Co., Ltd. | 91320500738277671B002U | From January 31, 2022, to January 30, 2027 |
| Suzhou JDI Electronics Inc. | 913205056082373800001C | From June 27, 2022, to June 26, 2027 |
Industrial discharge standards and the pollutants discharged in our production and operating activities:
| Company name | Category of main pollutants and specific pollutants | Description of main pollutants and specific pollutants | Method of discharge | No. of discharge outlets | Location of discharge outlets | Pollutant concentration | Applicable pollutant discharge standard | Total volume discharged | Approved total volume dischargeable | Excessive discharge |
| DSBJ | Waste gas | NMHC | Organized discharge | 1 | Roof of building A | 2.03mg/m3 | 60mg/m3 | 0.125370 | / | No |
| DSBJ | Waste gas | NMHC | Organized discharge | 1 | Roof of building F | 4.01mg/m3 | 50mg/m3 | 0.296175 | / | No |
| DSBJ | Waste gas | Particles | Organized discharge | 1 | Roof of building A | 2.4mg/m3 | 20mg/m3 | 0.148221 | / | No |
| DSBJ | Waste gas | Particles | Organized discharge | 1 | Roof of building F | 2.5mg/m3 | 10mg/m3 | 0.184648 | / | No |
| DSBJ | Waste gas | Tin and its compounds | Organized discharge | 2 | Roof of building A/F | ND | 5mg/m3 | / | / | No |
| DSBJ | Waste gas | Acetone | Organized discharge | 1 | Roof of building F | 1.76mg/m3 | / | 0.129992 | / | No |
| DSBJ | Waste gas | IPA | Organized discharge | 1 | Roof of building F | 0.219mg/m3 | / | 0.016175 | / | No |
| DSBJ | Waste gas | Particles | Organized discharge | 3 | Roof of building B | ND | 20mg/m3 | / | / | No |
| DSBJ | Waste gas | Fluoride | Organized discharge | 1 | Roof of building B | 0.3mg/m3 | 3mg/m3 | 0.000325 | / | No |
| DSBJ | Waste gas | NMHC | Organized discharge | 1 | Roof of building B | 0.67mg/m3 | 60mg/m3 | 0.007701 | / | No |
| Multek Industries and Multek Technology | Wastewater from the general discharge outlet | COD | Continuous discharge | 1 | Within factory boundary | 21.3mg/L | 160mg/L | 17.04t | 242.36t | No |
| Multek Industries and Multek Technology | Wastewater from the general discharge outlet | Ammonia nitrogen | Continuous discharge | 1 | Within factory boundary | 7.48mg/L | 30mg/L | 6.03t | 45.44t | No |
| Multek Industries and Multek Technology | Wastewater from the general discharge outlet | Total nitrogen | Continuous discharge | 1 | Within factory boundary | 27.78 mg/L | 40mg/L | 22.19t | 60.59t | No |
| Multek Industries and | Wastewater from Class I | Total nickel | Intermittent discharge | 1 | Within factory boundary | 0.11 mg/L | 0.5mg/L | 0.000869t | 0.055t | No |
| Multek Technology | waste discharge outlet | |||||||||
| Multek Zhuhai | Wastewater from the general discharge outlet | COD | Continuous discharge | 1 | Within factory boundary | 14.5mg/L | 160mg/L | 1.09t | 33.643t | No |
| Multek Zhuhai | Wastewater from the general discharge outlet | Ammonia nitrogen | Continuous discharge | 1 | Within factory boundary | 1.37 mg/L | 30mg/L | 0.1t | 6.308t | No |
| Multek Zhuhai | Wastewater from the general discharge outlet | Total nitrogen | Continuous discharge | 1 | Within factory boundary | 9.3 mg/L | 40mg/L | 0.65t | 28.6748t | No |
| Multek Zhuhai | Wastewater from Class I waste discharge outlet | Total nickel | Intermittent discharge | 1 | Within factory boundary | 0.003mg/L | 0.5mg/L | 0.0000048t | 0.358t | No |
| Multek China | Wastewater from the general discharge outlet | COD | Continuous discharge | 1 | Within factory boundary | 25.5mg/L | 160mg/L | 4.95t | 216.372t | No |
| Multek China | Wastewater from the general discharge outlet | Ammonia nitrogen | Continuous discharge | 1 | Within factory boundary | 8.55mg/L | 30mg/L | 1.58t | 40.5697t | No |
| Multek China | Wastewater from the general discharge outlet | Total nitrogen | Continuous discharge | 1 | Within factory boundary | 18.46mg/L | 40mg/L | 3.4t | 54.093t | No |
| Multek China | Wastewater from Class I waste discharge outlet | Total nickel | Intermittent discharge | 1 | Within factory boundary | 0mg/L | 0.5mg/L | 0t | 1.3523t | No |
| Multek China | Wastewater from Class I waste discharge outlet | Total silver | Intermittent discharge | 1 | Within factory boundary | 0.03mg/L | 0.1mg/L | 0.00001t | 0.270465t | No |
| MFLEX Yancheng | Wastewater | Total nitrogen | Indirect discharge | 1 | General discharge outlet at east of the factory | 17.2mg/L | 40mg/L | 11.02t | 84.183t | No |
| MFLEX | Wastewate | Ammonia | Indirect | 1 | General | 1mg/L | 35mg/L | 1.287t | 75.729t | No |
| Yancheng | r | nitrogen | discharge | discharge outlet at east of the factory | ||||||
| MFLEX Yancheng | Wastewater | COD | Indirect discharge | 1 | General discharge outlet at east of the factory | 39mg/L | 500mg/L | 20t | 844.263t | No |
| MFLEX Yancheng | Wastewater | Total phosphorus | Indirect discharge | 1 | General discharge outlet at east of the factory | 0.33mg/L | 3.5mg/L | 0.22t | 7.744t | No |
| MFLEX Yancheng | Wastewater | Nickel | Indirect discharge | 1 | Facility discharge outlet at east of the factory | 0.01mg/L | 0.5mg/L | 0.018t | 0.085t | No |
| Yancheng Dongshan | Wastewater | COD | Indirect discharge | 1 | General wastewater discharge outlet at the southeast of the factory | 85.39mg/L | 500mg/L | 4.192800627t | 232.467t | No |
| Yancheng Dongshan | Wastewater | Ammonia nitrogen | Indirect discharge | 1 | General wastewater discharge outlet at the southeast of the factory | 5.14mg/L | 35mg/L | 0.216395315t | 14.058t | No |
| Yancheng Dongshan | Wastewater | Total phosphorus | Indirect discharge | 1 | General wastewater discharge outlet at the southeast of the factory | 0.20mg/L | 3.5mg/L | 0.010171257t | 1.743t | No |
| Yancheng Dongshan | Wastewater | Total nitrogen | Indirect discharge | 1 | General wastewater discharge outlet at the southeast of the factory | 18.08mg/L | 40mg/L | 0.90279078t | 19.054t | No |
| Yancheng Dongshan | Wastewater | Total silver | Indirect discharge | 1 | General wastewater discharge outlet at the southeast | 0.1985mg/L | 0.3mg/L | 0.000230022t | 0.022t | No |
| of the factory | ||||||||||
| Yancheng Dongshan | Wastewater | Total nickel | Indirect discharge | 1 | General wastewater discharge outlet at the southeast of the factory | 0.057mg/L | 0.5mg/L | 0.000191088t | 0.033t | No |
| Yancheng Dongshan | Waste gas | VOCs | Organized discharge | 6 | Roof of buildings 4# and 5# | 2.6 mg/m3 | 60mg/m3 | 1.126t | 12.04t | No |
| MFLEX Suzhou | Wastewater from the general discharge outlet | COD | Continuous discharge | 1 | Within factory boundary | 22.924mg/L | 500mg/L | 18.661t | 471.035t | No |
| MFLEX Suzhou | Wastewater from the general discharge outlet | Ammonia nitrogen | Continuous discharge | 1 | Within factory boundary | 0.381mg/L | 25mg/L | 0.31t | 26.020t | No |
| MFLEX Suzhou | Wastewater from the general discharge outlet | Total copper | Continuous discharge | 1 | Within factory boundary | 0.220mg/L | 2.0mg/L | 0.179t | 0.9405t | No |
| MFLEX Suzhou | Wastewater from Class I waste discharge outlet | Total nickel | Continuous discharge | 1 | Within factory boundary | 0.013mg/L | 0.5mg/L | 0.011t | 0.057t | No |
| MFLEX Suzhou | Wastewater from the general discharge outlet | COD | Continuous discharge | 1 | Within factory boundary | 30mg/L | 500mg/L | 1.591t | 92.893t | No |
| MFLEX Suzhou | Wastewater from the general discharge outlet | Ammonia nitrogen | Continuous discharge | 1 | Within factory boundary | 10.5mg/L | 30mg/L | 0.557t | 7.963t | No |
Treatment of pollutants: With respect to the wastewater, waste gas, solid wastes and other wastes generated during our production, wehave proper pollution treatment facilities in place, which are operated and maintained by ourselves or the service providers engagedby us. We designate special personnel to monitor the operation of equipment and discharge of pollutants and maintain and repair theequipment and facilities on a regular basis, to ensure the discharge and disposal of pollutants in accordance with the applicable standardsand regulations. Solid wastes generated during production are treated pursuant to relevant laws and regulations. With these efforts, weseek to minimize the impact of pollutants from our production and operation on the environment. During the reporting period, ourdischarge of pollutants complied with the applicable standards and regulations.
Environmental emergency response plans: We have developed environmental emergency response plans in accordance with theNational Environmental Emergency Response Plan, filed the same with the local ecological and environmental protection authority,and carried out exercises on a regular basis, to improve our capability to respond to environmental emergencies, and reduce harm tothe environment and impact on the society.Expenditures on environmental governance and protection, and payment of environmental protection tax: We have made continuousinvestments in environmental governance and protection, regularly maintained the waste gas, wastewater, noise and solid wastetreatment and other environmental protection facilities to ensure their effective operation, and discharged of all kinds of pollutants inconformity with the applicable standards, in addition to which, we have paid environmental protection tax on time in accordance withrelevant provisions of the Environmental Protection Tax Law of the People’s Republic of China, to promote our sustainabledevelopment.Environmental self-monitoring plans: We have developed environmental self-monitoring plans in accordance with the applicable lawsand regulations, and installed automatic monitoring equipment or engaged qualified third-party inspection institutions to monitor thewastewater, waste gas, noise and other pollutants on a regular basis. During the reporting period, the results of our environmentalmonitoring complied with the applicable standards and regulations.Administrative penalties imposed on the Company due to environmental issues during the reporting period: NoneOther environmental information that should be disclosed: NoneMeasures taken for reducing carbon emission during the reporting period and their effect:
?Applicable □N/ADuring the reporting period, we have actively conducted energy-saving management, reducing energy consumption and carbonemissions by promoting energy-saving projects, optimizing and renovating high-energy consumption facilities and equipment, etc.
II. Social ResponsibilityDuring the reporting period, while maintaining steady growth and generating economic and social value, we have actively fulfilled oursocial responsibilities, continuing to channel resources into charitable giving, social welfare initiatives, and other philanthropicendeavors, to give back to the society.
Section VI Significant Matters
1. Covenants made by the actual controllers, shareholders, affiliates and acquirer of theCompany, the Company itself and other related parties that have been fulfilled during thereporting period or that fail to be fulfilled on time as of the end of the reporting period?Applicable □N/A
| Background of covenant | Covenantor | Type of covenant | Content of covenant | Time of covenant | Validity period of the covenant | Status of fulfillment |
| Covenant relating to initial public offering or subsequent fundraisings | YUAN Yongfeng and YUAN Yonggang | Covenants related to restrictions on the sale of shares | Each of the shareholders YUAN Yongfeng and YUAN Yonggang, as director and senior executive of the Company, covenants that so long as I remain a director and senior executive of the Company, I will not transfer more than 25% of the total shares held by me in the Company each year; and if I cease to be a director and senior executive of the Company, I will not transfer any shares held by me in the Company within half a year, and will not transfer more than 50% of the total shares held by me in the Company through the stock exchange within 12 months thereafter. | April 9, 2010 | Permanently binding | As of the end of the reporting period, the covenantors have complied with such covenants. |
| Covenant relating to initial public offering or subsequent fundraisings | YUAN Fugen, YUAN Yongfeng and YUAN Yonggang | Covenants related to horizontal competition, related-party transactions and occupation of funds | Covenants related to horizontal competition: Each of the shareholders YUAN Yongfeng and YUAN Yonggang covenants that I will not, directly or indirectly, engage in any business in competition with the business actually conducted by the Company. | April 9, 2010 | Permanently binding | As of the end of the reporting period, the covenantors have complied with such covenants. |
| Covenant relating to initial public offering or subsequent fundraisings | YUAN Fugen, YUAN Yongfeng and YUAN Yonggang | Other covenants | To ensure the effective implementation of the remedial measures against dilution of earnings to be taken by the Company, each of the controlling shareholders and actual controllers of the Company covenants that: (i) I will not interfere with the management and operation of the Company beyond my powers, or infringe on the interest of the Company; (ii) from the date of this Letter of Undertaking till the completion of this offering, in case of any new regulatory provisions promulgated by the SCRC, the SZSE or other competent securities authorities regarding the remedial measures against dilution of earnings and related covenants, as a result of which the covenants set forth above no longer comply with such new provisions, I will make additional covenants in accordance with such new provisions; and (iii) I will seriously implement the remedial measures against dilution of earnings adopted by the Company and fulfill my covenants in connection therewith, and if | March 12, 2024 | Permanently binding | As of the end of the reporting period, the covenantors have complied with such covenants. |
| I breach or refuse to fulfill any covenant set forth above, accept the penalties or other regulatory actions that may be imposed or taken by the SCRC, the SZSE or other competent securities authorities against me, and indemnify the Company or the investors for the losses arising therefrom according to law. | ||||||
| Covenant relating to initial public offering or subsequent fundraisings | YUAN Yongfeng and YUAN Yonggang,ZHAO Xiutian, SHAN Jianbin, WANG Xu, MAO Xiaoyan and MA Liqiang | Other covenants | To ensure the effective implementation of the remedial measures against dilution of earnings to be taken by the Company, each of the directors and senior executives of the Company covenants that: (i) I will not transfer benefits to any other entity or individual without compensation or on unfair terms, or otherwise damage the interest of the Company; (ii) I will exercise self-discipline in consumption in performing my duties; (iii) I will not use the assets of the Company to engage in any investment or consumption activities not in connection with my duties; (iv) I will link the compensation system adopted by the Board of Directors or the Compensation Committee with the implementation of the Company’s remedial measures against dilution of current earnings; (v) if the Company implements any share incentive plan in the future, I will link the vesting conditions under such share incentive plan with the implementation of the Company’s remedial measures against dilution of current earnings; (vi) from the date of this Letter of Undertaking till the completion of this offering, in case of any new regulatory provisions promulgated by the SCRC, the SZSE or other competent securities authorities regarding the remedial measures against dilution of earnings and related covenants, as a result of which the covenants set forth above no longer comply with such new provisions, I will make additional covenants in accordance with such new provisions; and (vii) I will seriously implement the remedial measures against dilution of earnings adopted by the Company and fulfill my covenants in connection therewith, and if I breach or refuse to fulfill any covenant set forth above, accept the penalties or other regulatory actions that may be imposed or taken by the SCRC, the SZSE or other competent securities authorities against me, and indemnify the Company or the investors for the losses arising therefrom according to law. | March 12, 2024 | Permanently binding | As of the end of the reporting period, the covenantors have complied with such covenants. |
| Whether the covenants have been fulfilled on time | Yes | |||||
| If any covenant fails to be fulfilled on time, please | N/A | |||||
explain thereason andthe relevantactions to betaken indetail
II. Occupation by the Controlling Shareholders and their Affiliates of the Funds of theCompany for Non-Operating Purpose
□Applicable ?N/A
Our controlling shareholders and their affiliates have not occupied our funds for non-operating purposes during the reporting period.III. External Guarantees in Violation of the Regulations
□Applicable ?N/A
We have not provided any external guarantee in violation of the applicable regulations during the reporting period.IV. Engagement and Termination of Engagement of Accounting Firm
Has the semi-annual financial report been audited?
□Yes ?No
The semi-annual report has not been audited.
V. Explanation by the Board of Directors and the Board of Supervisors about the ModifiedAuditor’s Report Issued by the Accounting Firm for the Reporting Period
□Applicable ?N/A
VI. Explanation by the Board of Directors about the Modified Auditor’s Report of thePrevious Year
□Applicable ?N/A
VII. Matters Relating to Bankruptcy and Reorganization
□Applicable ?N/A
We have not been involved in any bankruptcy or reorganization proceedings during the reporting period.VIII. Litigation
Material litigation and arbitration proceedings
□Applicable ?N/A
We have not been involved in any material litigation or arbitration proceedings during the reporting period.Other litigation proceedings
□Applicable ?N/A
IX. Punishments and Rectifications
□Applicable ?N/A
We have not been involved in any punishment and rectification during the reporting period.X. Credit Standing of the Company and its Controlling Shareholders and Actual Controllers
□Applicable ?N/A
XI. Material Related-party Transactions
1. Related-party transactions relating to day-to-day operation
□ Applicable ? N/A
There has been no related-party transaction relating to day-to-day operation during the reporting period.
2. Related-party transactions involving the acquisition or sale of assets or equities
□ Applicable ? N/A
There has been no related-party transaction involving the acquisition or sale of assets or equities during the reporting period.
3. Related-party transactions involving joint external investment
□ Applicable ? N/A
There has been no related-party transaction involving joint external investment during the reporting period.
4. Debts owed by and to related parties
□ Applicable ? N/A
There has been no debt owed by or to related parties during the reporting period.
5. Dealings with affiliated financial companies
□ Applicable ? N/A
There has been no deposit, loan, facility or other financial business between us and any of our affiliated financial companies.
6. Dealings with financial companies controlled by the Company and its affiliates
□ Applicable ? N/A
There has been no deposit, loan, facility or other financial business between any of our controlled financial companies and affiliates.
7. Other material related-party transactions
□ Applicable ? N/A
There has been no other material related-party transaction during the reporting period.
XII. Particulars and Performance of Material Contracts
1. Trusteeship, contracting and leases
(1) Trusteeship
□ Applicable ? N/A
No such case during the reporting period.
(2) Contracting
□ Applicable ? N/A
No such case during the reporting period.
(3) Leases
□ Applicable ? N/A
No such case during the reporting period.
2. Material guarantees
?Applicable □N/A
In RMB0’000
| External guarantees provided by the Company and its subsidiaries (excluding those provided for the subsidiaries) | ||||||||||
| Obligor | Disclosure date of announcement of the maximum amount guaranteed | Maximum amount guaranteed | Effective date of guarantee | Actual amount guaranteed | Type of guarantee | Collateral (if applicable) | Counter guarantee (if applicable) | Term of guarantee | Whether or not expired | Whether or not provided for a related party |
| Suzhou Toprun Electric Equipment Co., Ltd. | 3,000 | 2,000 | Joint and several liability guarantee | Other shareholders have provided equal guarantees or counter guarantees in proporti | No | Yes | ||||
| on to their respective contributions. | ||||||||||
| Suzhou LEGATE Intelligent Equipment Corp., Ltd. | 3,000 | |||||||||
| Shanghai Fu Shan Precision Manufacturing Co., Ltd. | 3,000 | 3,000 | Joint and several liability guarantee | Other shareholders have provided equal guarantees or counter guarantees in proportion to their respective contributions. | No | Yes | ||||
| Total amount of external guarantee approved during the reporting period (A1) | 9,000 | Total amount of external guarantee actually provided during the reporting period (A2) | 5,000 | |||||||
| Total amount of external guarantee approved as at the end of the reporting period (A3) | 9,000 | Total amount of external guarantee actually provided as at the end of the reporting period (A4) | 5,000 | |||||||
| Guarantees provided by the Company for its subsidiaries | ||||||||||
| Obligor | Disclosure date of announcement of the maximum amount guaranteed | Maximum amount guaranteed | Effective date of the guarantee | Actual amount guaranteed | Type of guarantee | Collateral (if applicable) | Counter guarantee (if applicable) | Term of guarantee | Whether or not expired | Whether or not provided for a related party |
| Dragon Electronix Holdings Inc. and its | 280,000 | 224,900 | Joint and several liability guarante | No | No | |||||
| controlled subsidiaries | e | |||||||||
| Hong Kong Dongshan Holding Limited and its subsidiaries | 280,000 | 10,000 | Joint and several liability guarantee | No | No | |||||
| Yancheng Dongshan | 120,000 | 73,385.08 | Joint and several liability guarantee | No | No | |||||
| Multek Group (Hong Kong) Limited and its controlled subsidiaries | 150,000 | 66,048.22 | Joint and several liability guarantee | No | No | |||||
| Mutto Optronics | 100,000 | 26,509.74 | Joint and several liability guarantee | No | No | |||||
| Yongchuang Tech | 80,000 | 20,601.69 | Joint and several liability guarantee | No | No | |||||
| Chaowei Microelectronics (Yancheng) Co., Ltd. | 60,000 | 30,000 | Joint and several liability guarantee | No | No | |||||
| Yancheng Dongshan Communication Technology Co., Ltd. | 13,000 | 6,861.34 | Joint and several liability guarantee | No | No | |||||
| RF Top Electronic | 5,000 | 880.13 | Joint and several liability guarantee | No | No | |||||
| Hong Kong Dongshan | 5,000 | |||||||||
| Suzhou Chengjia Precision Manufacturing Co., Ltd. | 8,000 | 4,293.46 | Joint and several liability guarantee | No | No | |||||
| Suzhou Dongyue New Energy Technology Co., Ltd. | 20,000 | |||||||||
| Yancheng Dongchuang Precision | 100,000 | 56,856.46 | Joint and several liability | No | No |
| Manufacturing Co., Ltd. | guarantee | |||||||||
| Total amount of guarantee approved to be provided for subsidiaries during the reporting period (B1) | 1,221,000 | Total amount of guarantee actually provided for subsidiaries during the reporting period (B2) | 679,170.16 | |||||||
| Total amount of guarantee approved to be provided for subsidiaries as at the end of the reporting period (B3) | 1,221,000 | Total amount of guarantee actually provided for subsidiaries as at the end of the reporting period (B4) | 520,336.11 | |||||||
| Guarantees provided by subsidiaries for each other | ||||||||||
| Obligor | Disclosure date of announcement of the maximum amount guaranteed | Maximum amount guaranteed | Effective date of the guarantee | Actual amount guaranteed | Type of guarantee | Collateral (if applicable) | Counter guarantee (if applicable) | Term of guarantee | Whether or not expired | Whether or not provided for a related party |
| Total amount of guarantee provided by the Company (i.e., the sum of the top three items) | ||||||||||
| Total amount of guarantee approved during the reporting period (A1+B1+C1) | 1,230,000 | Total amount of guarantee actually provided during the reporting period (A2+B2+C2) | 684,170.16 | |||||||
| Total amount of guarantee approved as at the end of the reporting period (A3+B3+C3) | 1,230,000 | Total amount of guarantee actually provided as at the end of the reporting period (A4+B4+C4) | 525,336.11 | |||||||
| Ratio of the total amount of guarantee actually provided (A4+B4+C4) to the net assets of the Company | 28.91% | |||||||||
| Where: | ||||||||||
| Outstanding guarantees provided for shareholders, actual controllers and their affiliates (D) | 5,000 | |||||||||
| Outstanding guarantees directly or indirectly provided for obligors whose debt-to-assets ratio exceeds 70% (E) | 61,856.46 | |||||||||
| Portion of the total amount of guarantee in excess of 50% of the net assets (F) | 0 | |||||||||
| Total (D+E+F) | 61,856.46 | |||||||||
| Explanation about the joint and several liability that have been or might be incurred in respect of outstanding guarantees during the reporting period (if any) | None | |||||||||
| Explanation about external guarantees provided in contravention of the established procedures (if any) | None | |||||||||
3. Entrusted wealth management
?Applicable □N/A
In RMB0’000
| Type | Source of funds | Total amount | Outstanding amount | Overdue amount | Impairment loss recognized for overdue wealth management products |
| Bank wealth management product | Self-owned funds | 88,752.56 | 80,522.72 | 0 | 0 |
| Total | 88,752.56 | 80,522.72 | 0 | 0 | |
High-risk entrusted wealth management products that are significant individually, illiquid or not principal protected:
□ Applicable ? N/A
Entrusted wealth management products the principal of which may be unrecoverable, or which may otherwise be impaired:
□ Applicable ? N/A
4. Other material contracts
□Applicable ?N/A
We have not entered into any other material contract during the reporting period.XIII. Other Significant Matters
□Applicable ?N/A
There’s no other significant matter needing to be explained for the reporting period.XIV. Significant Matters of Subsidiaries
□Applicable ?N/A
Section VII Changes in Shares and ShareholdersI. Changes in Shares
1. Changes in shares
Unit: Share
| Before the change | +/- | After the change | |||||||
| Number | % | New shares | Bonus shares | Capitalization of capital reserves | Others | Subtotal | Number | % | |
| I. Non-tradable shares | 319,591,987 | 18.69% | 319,591,987 | 18.69% | |||||
| 1. Shares held by the State | |||||||||
| 2. Shares held by State-owned corporations | |||||||||
| 3. Shares held by other domestic investors | 319,591,987 | 18.69% | 319,591,987 | 18.69% | |||||
| Incl.: Shares held by domestic non-State-owned corporations | |||||||||
| Shares held by domestic natural persons | 319,591,987 | 18.69% | 319,591,987 | 18.69% | |||||
| 4. Shares held by foreign investors | |||||||||
| Incl.: Shares held by foreign corporations | |||||||||
| Shares held by foreign natural persons | |||||||||
| II. Tradable shares | 1,390,275,340 | 81.31% | 1,390,275,340 | 81.31% | |||||
| 1. RMB-denominated ordinary shares | 1,390,275,340 | 81.31% | 1,390,275,340 | 81.31% | |||||
| 2. Foreign currency-denominated shares listed domestically | |||||||||
| 3. Foreign currency-denominated shares listed overseas | |||||||||
| 4. Others | |||||||||
| III. Total shares | 1,709,867,327 | 100.00% | 1,709,867,327 | 100.00% | |||||
Reasons for changes in shares
□Applicable ?N/A
Approval for changes in shares
□Applicable ?N/A
Transfer of shares in relation to the changes
□Applicable ?N/A
Progress in the implementation of share repurchase?Applicable □N/AOn December 28, 2023, we held the 6th meeting of the 6th Board of Directors, at which the Proposal on Repurchase of the Company’sShares was deliberated and approved, agreeing to use our self-owned funds to repurchase the RMB-denominated ordinary shares (A-shares) issued by the Company through the Shenzhen Stock Exchange by aggregate auction for the purpose of employee stockownership plans or equity incentives. The total repurchase funds shall range from RMB20 million (inclusive) to RMB30 million(inclusive), and the repurchase price shall not exceed RMB 27.40 per share.As of January 15, 2024, we have repurchased a total of 1,588,800 shares of us, accounting for 0.093% of our total share capital, throughthe Shenzhen Stock Exchange by aggregate auction using our self-owned funds, at a price from RMB15.59 per share to RMB15.89per share, with the total transaction amount being RMB24,997,000 (excluding transaction costs). The above-mentioned sharerepurchase complies with the provisions of laws and regulations and our share repurchase plan.
Progress of sale or repurchase of shares by aggregate auction
□Applicable ?N/A
The impact of changes in shares on financial indicators such as basic earnings per share and diluted earnings per share, as well as netassets per share attributable to ordinary shareholders of the Company for the most recent year and period
□Applicable ?N/A
Other information deemed necessary by the Company or required by securities regulatory authorities to be disclosed
□Applicable ?N/A
2. Changes in non-tradable shares
□Applicable ?N/A
II. Offering and Listing of Securities
□Applicable ?N/A
III. Number of shareholders and shareholding structure of the Company
Unit: Share
| Total number of ordinary shareholders at the end of the reporting period | 109,447 | Total number of preferred shareholders whose voting rights had been restituted at the end of the reporting period (if any) (Note 8) | 0 | |||||
| Shareholding by ordinary shareholders holding more than 5% of the shares or top 10 ordinary shareholders (excluding the shares lent via refinancing) | ||||||||
| Name of shareholder | Status of shareholder | Shareholding percentage | No. of ordinary shares held at the end of the reporting period | Changes in shareholding during the reporting period | No. of non-tradable ordinary shares held | No. of tradable ordinary shares held | Pledge, attachment or freeze | |
| Status of shares | Number | |||||||
| YUAN Yongfeng | Domestic natural person | 13.01% | 222,388,153 | 0 | 166,791,115 | 55,597,038 | Pledge | 132,010,000 |
| YUAN Yonggang | Domestic natural person | 11.83% | 202,226,196 | 0 | 151,669,647 | 50,556,549 | Pledge | 94,730,000 |
| YUAN Fugen | Domestic natural person | 3.44% | 58,796,052 | 0 | 0 | 58,796,052 | N/A | 0 |
| Hong Kong | Foreign | 3.03% | 51,726,475 | -14,286,127 | 0 | 51,726,475 | N/A | 0 |
| Securities Clearing Company Limited | corporation | |||||||
| Taikang Life Insurance – Traditional – General Insurance Product -019L-CT001 Shenzhen | Others | 1.03% | 17,663,115 | 2,189,900 | 0 | 17,663,115 | N/A | 0 |
| Agricultural Bank of China Limited – China Securities 500 Exchange-Traded Index Securities Investment Fund | Others | 0.95% | 16,213,800 | 8,706,900 | 0 | 16,213,800 | N/A | 0 |
| Taikang Life Insurance – Dividends – Personal Dividends -019L-FH002 Shenzhen | Others | 0.92% | 15,808,955 | 2,780,900 | 0 | 15,808,955 | N/A | 0 |
| New China Life Insurance Company Ltd. – Dividends – Personal Dividends -018L-FH002 Shenzhen | Others | 0.85% | 14,500,148 | 14,500,148 | 0 | 14,500,148 | N/A | 0 |
| Taikang Life Insurance – Investment Linked Insurance – Multi-strategy Optimization | Others | 0.78% | 13,331,606 | 7,462,800 | 0 | 13,331,606 | N/A | 0 |
| GF Fund Management Co., Ltd. – Social Security Fund Portfolio 420 | Others | 0.71% | 12,214,112 | 2,415,100 | 0 | 12,214,112 | N/A | 0 |
| Strategic investors or general corporations becoming top 10 ordinary shareholders as a result of rights issue (if any) (Note 3) | N/A | |||||||
| Affiliates or concert parties among the shareholders listed above | Among the shareholders listed above, YUAN Yonggang and YUAN Yongfeng are sons of YUAN Fugen, and YUAN Yongfeng is the elder brother of YUAN Yonggang. YUAN Fugen, YUAN Yongfeng and YUAN Yonggang are our actual controllers. We are not aware whether there are affiliates or concert parties within the meaning of the Administrative Measures for Information Disclosure by the Listed Companies Relating to Changes in Shares Held by Shareholders among other shareholders listed above. | |||||||
| Delegation or waiver of voting rights or ownership of voting rights by or to the shareholders listed above | N/A | |||||||
| Special explanation about any dedicated account for repurchase opened by any top 10 shareholder (if any) (Note 11) | N/A | |||||||
| Shareholding by the top 10 holders of tradable ordinary shares (Excluding the shares lent via refinancing and the lock-up shares for senior executives) | ||||||||
| Name of shareholder | Number of tradable ordinary shares held at the end of the reporting period | Type and number of shares | ||||||
| Type | Number | ||
| YUAN Fugen | 58,796,052 | RMB-denominated ordinary share | 58,796,052 |
| YUAN Yongfeng | 55,597,038 | RMB-denominated ordinary share | 55,597,038 |
| Hong Kong Securities Clearing Company Limited | 51,726,475 | RMB-denominated ordinary share | 51,726,475 |
| YUAN Yonggang | 50,556,549 | RMB-denominated ordinary share | 50,556,549 |
| Taikang Life Insurance – Traditional – General Insurance Product -019L-CT001 Shenzhen | 17,663,115 | RMB-denominated ordinary share | 17,663,115 |
| Agricultural Bank of China Limited – China Securities 500 Exchange-Traded Index Securities Investment Fund | 16,213,800 | RMB-denominated ordinary share | 16,213,800 |
| Taikang Life Insurance – Dividends – Personal Dividends -019L-FH002 Shenzhen | 15,808,955 | RMB-denominated ordinary share | 15,808,955 |
| New China Life Insurance Company Ltd. – Dividends – Personal Dividends -018L-FH002 Shenzhen | 14,500,148 | RMB-denominated ordinary share | 14,500,148 |
| Taikang Life Insurance – Investment Linked Insurance – Multi-strategy Optimization | 13,331,606 | RMB-denominated ordinary share | 13,331,606 |
| GF Fund Management Co., Ltd. Social Security Fund Portfolio 420 | 12,214,112 | RMB-denominated ordinary share | 12,214,112 |
| Affiliates or concert parties among the top 10 holders of tradable ordinary shares, and among the top 10 holders of tradable ordinary shares and top 10 ordinary shareholders | Among the shareholders listed above, YUAN Yonggang and YUAN Yongfeng are sons of YUAN Fugen, and YUAN Yongfeng is the elder brother of YUAN Yonggang. YUAN Fugen, YUAN Yongfeng and YUAN Yonggang are our actual controllers. We are not aware whether there are affiliates or concert parties within the meaning of the Administrative Measures for Information Disclosure by the Listed Companies Relating to Changes in Shares Held by Shareholders among other shareholders listed above. | ||
| Securities margin trading conducted by top 10 ordinary shareholders (if any) (Note 4) | N/A | ||
Share lending by shareholders holding more than 5% of the shares, top 10 shareholders and top 10 holders of tradable shares viarefinancing:
?Applicable □N/A
Unit: Share
| Full name of shareholder | Shares held in ordinary account and margin trading account at the beginning of the current period | Outstanding shares lent via refinancing at the beginning of the current period | Shares held in ordinary account and margin trading account at the end of the current period | Outstanding shares lent via refinancing at the end of the current period | ||||
| Total number | % of total share capital | Total number | % of total share capital | Total number | % of total share capital | Total number | % of total share capital | |
| Agricultural Bank of China Limited – China Securities 500 Exchange-Traded Index Securities Investment Fund | 16,194,400.00 | 0.95% | 2,217,500.00 | 0.13% | 16,213,800.00 | 0.95% | 626,900.00 | 0.04% |
Changes compared to the previous period due to shares lending via refinancing/returning by the top 10 shareholders and the top 10holders of tradable shares
□Applicable ?N/A
Whether the top 10 ordinary shareholder or top 10 holders of tradable ordinary shares has conducted any transaction under therepurchase agreement during the reporting period?
□Yes ?No
No top 10 ordinary shareholder or top 10 holders of tradable ordinary shares has conducted any transaction under the repurchaseagreement during the reporting period.IV. Changes in Shareholding of Directors, Supervisors, and Senior Executives
□Applicable ?N/A
There has been no change in the shareholding of our directors, supervisors, and senior executives during the reporting period, asdetailed in the Annual Report 2023.
V. Changes in Controlling Shareholders and Actual Controllers
Change in the controlling shareholders during the reporting period:
□Applicable ?N/A
There has been no change in our controlling shareholders during the reporting period.Change in the actual controllers during thereporting period:
□Applicable ?N/A
There has been no change in our actual controllers during the reporting period.
Section VIII Preferred Shares
□Applicable ?N/A
We did not have any preferred share during the reporting period.
Section IX Bonds
□Applicable ?N/A
Section X Financial Report
I. Financial Report
Has the semi-annual report been audited?
□Yes ?No
This semi-annual financial report has not been audited.
II. Financial StatementsThe amounts in the statements contained in the notes to the financial statements are presented in RMB.
1. Consolidated balance sheet
Prepared by: Suzhou Dongshan Precision Manufacturing Co., Ltd.
In RMB
| Item | Closing balance | Opening balance |
| Current assets: | ||
| Cash and bank balances | 7,954,476,596.69 | 7,190,036,231.06 |
| Settlement deposit | ||
| Loans to banks and other financial institutions | ||
| Financial assets held for trading | 140,916,032.21 | 146,141,371.77 |
| Derivative financial assets | ||
| Notes receivable | 25,236,878.62 | 3,407,623.49 |
| Accounts receivable | 6,634,848,769.35 | 7,713,164,772.05 |
| Accounts receivable financing | 199,435,267.61 | 290,477,095.22 |
| Advances to suppliers | 68,612,672.57 | 79,782,739.11 |
| Premiums receivable | ||
| Reinsurance accounts receivable | ||
| Reinsurance contract reserves receivable | ||
| Other receivables | 98,014,969.32 | 77,134,897.39 |
| Incl.: Interest receivable | ||
| Dividends receivable | ||
| Financial assets held under resale agreements | ||
| Inventories | 6,191,742,129.70 | 6,293,879,276.54 |
| Incl.: Data resources | ||
| Contract assets | ||
| Assets held for sale | ||
| Non-current assets due within one year | ||
| Other current assets | 1,086,141,825.81 | 651,719,745.68 |
| Total current assets | 22,399,425,141.88 | 22,445,743,752.31 |
| Non-current assets: | ||
| Loans and advances to clients | ||
| Debt investments | ||
| Other debt investments | ||
| Long-term receivable | 30,000,000.00 | 30,000,000.00 |
| Long-term equity investments | 151,095,048.38 | 155,406,879.89 |
| Investments in other equity instruments | 283,657,110.00 | 278,157,110.00 |
| Other non-current financial assets | ||
| Investment properties | 909,984.68 | 1,038,840.26 |
| Fixed assets | 12,712,146,406.50 | 12,415,251,689.80 |
| Construction in progress | 2,212,779,454.69 | 1,842,525,188.54 |
| Productive biological assets | ||
| Oil and gas assets | ||
| Right-of-use assets | 1,268,794,116.83 | 1,252,668,050.83 |
| Intangible assets | 995,721,202.51 | 863,692,421.74 |
| Incl.: Data resources | ||
| Development expenses | ||
| Incl.: Data resources | ||
| Goodwill | 2,205,652,600.95 | 2,209,199,500.98 |
| Long-term deferred expenses | 917,009,459.65 | 866,872,191.21 |
| Deferred tax assets | 1,128,406,535.94 | 1,078,140,428.38 |
| Other non-current assets | 1,313,425,496.55 | 933,022,974.34 |
| Total non-current assets | 23,219,597,416.68 | 21,925,975,275.97 |
| Total assets | 45,619,022,558.56 | 44,371,719,028.28 |
| Current liabilities: | ||
| Short-term borrowings | 5,605,192,891.45 | 5,156,100,217.01 |
| Borrowings from Central Bank | ||
| Borrowings from banks and other financial institutions | ||
| Financial liabilities held for trading | 180,575,141.54 | 104,174,076.23 |
| Derivative financial liabilities | ||
| Notes payable | 979,409,601.51 | 909,171,215.93 |
| Accounts payable | 8,353,477,330.14 | 8,039,107,176.52 |
| Advances from clients | ||
| Contract liabilities | 47,925,820.33 | 28,982,676.07 |
| Financial assets sold under repurchase agreements | ||
| Deposits from clients and other banks | ||
| Funds received as stockbroker | ||
| Funds received as underwriter of securities |
| Employee benefits payable | 458,029,549.03 | 553,178,980.68 |
| Taxes payable | 322,276,046.63 | 475,576,206.83 |
| Other payables | 81,678,161.65 | 80,188,628.54 |
| Incl.: Interest payable | ||
| Dividends payable | ||
| Fees and commissions payable | ||
| Reinsurance accounts payable | ||
| Liabilities held for sale | ||
| Non-current liabilities due within one year | 2,476,592,843.67 | 2,496,716,906.35 |
| Other current liabilities | 2,348,195.83 | 6,556,017.38 |
| Total current liabilities | 18,507,505,581.78 | 17,849,752,101.54 |
| Non-current liabilities: | ||
| Provision for insurance contracts | ||
| Long-term borrowings | 5,230,423,595.11 | 4,706,280,338.76 |
| Bonds payable | ||
| Incl.: Preferred shares | ||
| Perpetual bonds | ||
| Lease liabilities | 1,880,994,634.25 | 1,842,799,193.80 |
| Long-term payables | 254,675,989.48 | 296,995,789.48 |
| Long-term employee benefits payable | ||
| Provisions | 49,855,521.53 | 60,785,210.44 |
| Deferred income | 656,700,278.49 | 733,456,685.17 |
| Deferred tax liabilities | 821,262,633.39 | 691,293,111.83 |
| Other non-current liabilities | ||
| Total non-current liabilities | 8,893,912,652.25 | 8,331,610,329.48 |
| Total liabilities | 27,401,418,234.03 | 26,181,362,431.02 |
| Owners’ equity: | ||
| Share capital | 1,709,867,327.00 | 1,709,867,327.00 |
| Other equity instruments | ||
| Incl.: Preferred shares | ||
| Perpetual bonds | ||
| Capital reserve | 8,064,875,551.23 | 8,063,768,409.73 |
| Less: Treasury shares | 150,907,657.63 | 125,906,811.33 |
| Other comprehensive income | -797,128,107.05 | -714,664,578.64 |
| Special reserve | ||
| Surplus reserve | 184,866,869.73 | 184,866,869.73 |
| General risk reserve | ||
| Retained profits | 9,160,377,413.07 | 9,025,095,529.05 |
| Total owners’ equity attributable to the parent company | 18,171,951,396.35 | 18,143,026,745.54 |
| Minority interests | 45,652,928.18 | 47,329,851.72 |
| Total owners’ equity | 18,217,604,324.53 | 18,190,356,597.26 |
| Total liabilities and owners’ equity | 45,619,022,558.56 | 44,371,719,028.28 |
Legal Representative: YUAN Yonggang CFO: WANG Xu Accounting Supervisor: ZHU Deguang
2. Standalone balance sheet
In RMB
| Item | Closing balance | Opening balance |
| Current assets: | ||
| Cash and bank balances | 1,176,558,804.09 | 1,121,824,500.79 |
| Financial assets held for trading | ||
| Derivative financial assets | ||
| Notes receivable | 182,944.04 | |
| Accounts receivable | 2,502,768,793.12 | 2,084,703,275.22 |
| Accounts receivable financing | 32,023,800.26 | 16,445,639.29 |
| Advances to suppliers | 35,668,019.63 | 264,702,649.93 |
| Other receivables | 7,222,201,550.53 | 5,252,635,539.56 |
| Incl.: Interest receivable | ||
| Dividends receivable | 1,559,915,617.48 | 2,203,111,413.70 |
| Inventories | 864,339,912.27 | 1,299,182,931.81 |
| Incl.: Data resources | ||
| Contract assets | ||
| Assets held for sale | ||
| Non-current assets due within one year | ||
| Other current assets | 44,856,716.42 | 50,271,463.84 |
| Total current assets | 11,878,417,596.32 | 10,089,948,944.48 |
| Non-current assets: | ||
| Debt investments | ||
| Other debt investments | ||
| Long-term receivables | 30,000,000.00 | 30,000,000.00 |
| Long-term equity investments | 9,499,318,105.96 | 9,466,303,266.56 |
| Investments in other equity instruments | 171,322,110.00 | 171,322,110.00 |
| Other non-current financial assets | ||
| Investment properties | ||
| Fixed assets | 709,506,279.12 | 1,292,621,445.22 |
| Construction in progress | 161,716,719.55 | 237,324,474.45 |
| Productive biological assets | ||
| Oil and gas assets | ||
| Right-of-use assets | 3,587,650.94 | 4,566,101.24 |
| Intangible assets | 61,332,010.58 | 61,083,591.40 |
| Incl.: Data resources | ||
| Development expenses |
| Incl.: Data resources | ||
| Goodwill | ||
| Long-term deferred expenses | 84,745,746.26 | 87,384,070.37 |
| Deferred tax assets | 249,940,604.24 | 189,735,608.41 |
| Other non-current assets | 91,931,554.42 | 163,595,104.57 |
| Total non-current assets | 11,063,400,781.07 | 11,703,935,772.22 |
| Total assets | 22,941,818,377.39 | 21,793,884,716.70 |
| Current liabilities: | ||
| Short-term borrowings | 2,441,570,489.61 | 2,911,521,728.06 |
| Financial liabilities held for trading | ||
| Derivative financial assets | ||
| Notes payable | 690,321,901.66 | 449,069,523.81 |
| Accounts payable | 1,432,214,384.46 | 1,326,777,885.36 |
| Advances from clients | ||
| Contract liabilities | 76,212,727.55 | 11,196,344.94 |
| Employee benefits payable | 21,452,235.13 | 53,045,775.35 |
| Taxes payable | 5,143,612.03 | 3,260,417.40 |
| Other payables | 5,500,643,227.09 | 3,680,367,551.64 |
| Incl.: Interest payable | ||
| Dividends payable | ||
| Liabilities held for sale | ||
| Non-current liabilities due within one year | 1,280,570,007.74 | 834,828,298.62 |
| Other current liabilities | 131,499.68 | 3,373,087.29 |
| Total current liabilities | 11,448,260,084.95 | 9,273,440,612.47 |
| Non-current liabilities: | ||
| Long-term borrowings | 2,131,424,310.83 | 2,405,437,622.23 |
| Bonds payable | ||
| Incl.: Preferred shares | ||
| Perpetual bonds | ||
| Lease liabilities | 1,890,299.00 | 2,741,061.12 |
| Long-term payables | 226,168,789.48 | 226,168,789.48 |
| Long-term employee benefits payable | ||
| Provisions | 1,233,646.57 | 1,852,066.56 |
| Deferred income | 17,938,333.53 | 19,403,333.49 |
| Deferred tax liabilities | 842,205.13 | 920,551.61 |
| Other non-current liabilities | ||
| Total non-current liabilities | 2,379,497,584.54 | 2,656,523,424.49 |
| Total liabilities | 13,827,757,669.49 | 11,929,964,036.96 |
| Owners’ equity: | ||
| Share capital | 1,709,867,327.00 | 1,709,867,327.00 |
| Other equity instruments | ||
| Incl.: Preferred shares |
| Perpetual bonds | ||
| Capital reserve | 7,963,346,198.27 | 7,962,239,056.77 |
| Less: Treasury shares | 150,907,657.63 | 125,906,811.33 |
| Other comprehensive income | -350,000,000.00 | -350,000,000.00 |
| Special reserve | ||
| Surplus reserve | 184,866,869.73 | 184,866,869.73 |
| Retained profits | -243,112,029.47 | 482,854,237.57 |
| Total owners’ equity | 9,114,060,707.90 | 9,863,920,679.74 |
| Total liabilities and owners’ equity | 22,941,818,377.39 | 21,793,884,716.70 |
3. Consolidated income statement
In RMB
| Item | The reporting period | The same period of the previous year |
| I. Total operating revenue | 16,628,586,195.56 | 13,667,087,825.06 |
| Incl.: Operating revenue | 16,628,586,195.56 | 13,667,087,825.06 |
| Interest income | ||
| Premiums earned | ||
| Fee and commission income | ||
| II. Total operating costs | 15,860,085,715.70 | 12,897,109,453.48 |
| Incl.: Operating costs | 14,455,695,057.51 | 11,831,369,939.99 |
| Interest expenses | ||
| Fee and commission expenses | ||
| Surrenders | ||
| Net payments for insurance claims | ||
| Net insurance claim reserves | ||
| Policyholder dividends | ||
| Reinsurance expenses | ||
| Taxes and surcharges | 97,314,539.31 | 49,836,214.17 |
| Selling expenses | 198,461,411.65 | 170,543,696.07 |
| Administrative expenses | 513,932,018.38 | 427,064,667.98 |
| Research and development expenses | 622,223,608.99 | 457,389,483.21 |
| Financial expenses | -27,540,920.14 | -39,094,547.94 |
| Incl.: Interest expenses | 229,752,660.54 | 230,762,342.33 |
| Interest income | 141,164,259.09 | 109,254,733.76 |
| Add: Other income | 176,411,848.89 | 147,287,144.35 |
| Investment income (loss expressed with “-”) | -48,423,970.21 | 11,634,384.72 |
| Incl.: Investment income from associates and joint ventures | -4,311,831.51 | -633,126.48 |
| Gain on derecognition of financial assets at amortized cost |
| Exchange gain (loss expressed with “-”) | ||
| Net exposure hedging income (loss expressed with “-”) | ||
| Gain on changes in fair value (loss expressed with “-”) | -15,065,635.92 | -8,871,765.01 |
| Credit loss (loss expressed with “-”) | -57,244,335.30 | -64,859,876.70 |
| Impairment loss on assets (loss expressed with “-”) | -105,585,722.55 | -60,359,147.92 |
| Gain on disposal of assets (loss expressed with “-”) | -34,905,446.22 | -4,613,581.75 |
| III. Operating profit (loss expressed with “-”) | 683,687,218.55 | 790,195,529.27 |
| Add: Non-operating revenue | 4,983,059.69 | 161,498,484.47 |
| Less: Non-operating expenses | 5,571,548.85 | 5,202,156.55 |
| IV. Profit before tax (total loss expressed with “-”) | 683,098,729.39 | 946,491,857.19 |
| Less: Income tax expenses | 124,174,716.66 | 121,848,672.48 |
| V. Net profit (net loss expressed with “-”) | 558,924,012.73 | 824,643,184.71 |
| (I) Classified by continuity of operation | ||
| 1. Net profit from continuing operation (net loss expressed with “-”) | 558,924,012.73 | 824,643,184.71 |
| 2. Net profit from discontinued operation (net loss expressed with “-”) | ||
| (II) Classified by ownership attribution | ||
| 1. Net profit attributable to owners of the parent company (net loss expressed with “-”) | 560,600,936.27 | 824,548,652.98 |
| 2. Profit attributable to minority interests (net loss expressed with “-”) | -1,676,923.54 | 94,531.73 |
| VI. Other comprehensive income, net | -82,463,528.41 | -242,092,889.62 |
| Other comprehensive income attributable to owners of the parent company, net after tax | -82,463,528.41 | -242,092,889.62 |
| (I) Other comprehensive income that cannot be reclassified to profit or loss | ||
| 1. Changes arising from remeasurement of defined benefit plans | ||
| 2. Other comprehensive income that cannot be reclassified to profit or loss under equity method | ||
| 3. Change in fair value of investments in other equity instruments | ||
| 4. Change in fair value of the corporation’s credit risk | ||
| 5. Others | ||
| (II) Other comprehensive income | -82,463,528.41 | -242,092,889.62 |
| that will be reclassified to profit or loss | ||
| 1. Other comprehensive income that can be reclassified to profit or loss under equity method | ||
| 2. Change in fair value of other debt investments | ||
| 3. Financial assets reclassified to other comprehensive income | ||
| 4. Provision for credit impairment of other debt investments | ||
| 5. Reserves for cash flow hedge | -72,795,178.35 | -210,146,157.46 |
| 6. Differences in translation of foreign currency financial statements | -9,668,350.06 | -31,946,732.16 |
| 7. Others | ||
| Other comprehensive income attributable to minority interests, net after tax | ||
| VII. Total comprehensive income | 476,460,484.32 | 582,550,295.09 |
| Total comprehensive income attributable to owners of the parent company | 478,137,407.86 | 582,455,763.36 |
| Total comprehensive income attributable to minority interests | -1,676,923.54 | 94,531.73 |
| VIII. Earnings per share: | ||
| (I) Basic earnings per share | 0.33 | 0.48 |
| (II) Diluted earnings per share | 0.33 | 0.48 |
Legal Representative: YUAN Yonggang CFO: WANG Xu Accounting Supervisor: ZHU Deguang
4. Standalone income statement
In RMB
| Item | The reporting period | The same period of the previous year |
| I. Operating revenue | 2,146,603,495.20 | 1,754,338,591.17 |
| Less: Operating costs | 2,082,748,511.41 | 1,709,683,165.19 |
| Taxes and surcharges | 14,450,087.28 | 4,069,998.89 |
| Selling expenses | 24,066,524.34 | 29,824,017.76 |
| Administrative expenses | 124,363,216.37 | 179,521,807.47 |
| Research and development expenses | 103,191,448.64 | 68,267,790.44 |
| Financial expenses | 108,373,027.07 | 82,583,512.29 |
| Incl.: Interest expenses | 175,228,306.42 | 171,933,961.80 |
| Interest income | 37,981,858.78 | 52,992,726.19 |
| Add: Other income | 28,294,000.51 | 2,216,893.07 |
| Investment income (loss expressed with “-”) | -5,578,349.99 | -196,349.56 |
| Incl.: Investment income from associates and joint ventures | -2,927,211.16 | -633,126.48 |
| Gain on derecognition of financial assets at amortized cost | ||
| Net exposure hedging income (loss expressed with “-”) | ||
| Gain on changes in fair value (loss expressed with “-”) | -13,243,914.03 | |
| Credit loss (loss expressed with “-”) | -57,838,856.00 | -66,854,224.95 |
| Impairment loss on assets (loss expressed with “-”) | 206,582.75 | -10,495,876.53 |
| Gain on disposal of assets (loss expressed with “-”) | 389,609.87 | 62,663.71 |
| II. Operating profit (loss expressed with “-”) | -358,360,246.80 | -394,878,595.13 |
| Add: Non-operating revenue | 5,000.00 | 3,000.00 |
| Less: Non-operating expenses | 2,575,310.30 | 692,096.95 |
| III. Profit before tax (total loss expressed with “-”) | -360,930,557.10 | -395,567,692.08 |
| Less: Income tax expenses | -60,283,342.31 | -67,146,858.77 |
| IV. Net profit (loss expressed with “-”) | -300,647,214.79 | -328,420,833.31 |
| (I) Net profit from continuing operation (net loss expressed with “-”) | -300,647,214.79 | -328,420,833.31 |
| (II) Net profit from discontinued operation (net loss expressed with “-”) | ||
| V. Other comprehensive income, net | -4,538,660.00 | |
| (I) Other comprehensive income that cannot be reclassified to profit or loss | ||
| 1. Changes arising from remeasurement of defined benefit plans | ||
| 2. Other comprehensive income that cannot be reclassified to profit or loss under equity method | ||
| 3. Change in fair value of investments in other equity instruments | ||
| 4. Change in fair value of the corporation’s credit risk | ||
| 5. Others | ||
| (II) Other comprehensive income that will be reclassified to profit or loss | -4,538,660.00 | |
| 1. Other comprehensive income that can be reclassified to profit or loss under equity method | ||
| 2. Change in fair value of other debt investments | ||
| 3. Financial assets reclassified to other comprehensive income | ||
| 4. Provision for credit impairment |
| of other debt investments | ||
| 5. Reserves for cash flow hedge | -4,538,660.00 | |
| 6. Differences in translation of foreign currency financial statements | ||
| 7. Others | ||
| VI. Total comprehensive income | -300,647,214.79 | -332,959,493.31 |
| VII. Earnings per share: | ||
| (I) Basic earnings per share | -0.18 | -0.19 |
| (II) Diluted earnings per share | -0.18 | -0.19 |
5. Consolidated cash flow statement
In RMB
| Item | The reporting period | The same period of the previous year |
| I. Cash flows from operating activities | ||
| Proceeds from sale of goods and rendering of services | 17,706,958,316.93 | 14,691,146,180.23 |
| Net increase in deposits from clients and other banks | ||
| Net increase in borrowings from Central Bank | ||
| Net increase in borrowings from other financial institutions | ||
| Proceeds from premiums under prior insurance contracts | ||
| Net proceeds from reinsurance business | ||
| Net increase in insured’s deposits and investments | ||
| Proceeds from interest, fees and commissions | ||
| Net increase in borrowings from banks and other financial institutions | ||
| Net increase in receipts under repurchase transactions | ||
| Net cash received as stockbroker | ||
| Tax refunds received | 524,915,907.68 | 663,078,350.52 |
| Other proceeds relating to operating activities | 592,490,973.79 | 859,746,689.37 |
| Subtotal of cash inflows from operating activities | 18,824,365,198.40 | 16,213,971,220.12 |
| Payments for purchase of goods and receipt of services | 12,996,139,860.06 | 10,247,616,298.54 |
| Net increase in loans and advances from clients | ||
| Net increase in deposits in Central Bank and other banks |
| Payment of claims under prior insurance contracts | ||
| Net increase in loans to banks and other financial institutions | ||
| Payment of interest, fees and commissions | ||
| Payment of policyholder dividends | ||
| Payments to and for employees | 2,392,154,841.93 | 2,122,560,726.35 |
| Taxes paid | 519,477,522.80 | 384,150,962.59 |
| Other payments relating to operating activities | 827,623,574.33 | 845,742,396.62 |
| Subtotal of cash outflows from operating activities | 16,735,395,799.12 | 13,600,070,384.10 |
| Net cash flows from operating activities | 2,088,969,399.28 | 2,613,900,836.02 |
| II. Cash flows from investing activities | ||
| Proceeds from disposal of investments | 308,155,031.33 | 2,384,653,805.97 |
| Proceeds from return on investments | -29,218,011.67 | 25,329,030.89 |
| Net proceeds from the disposal of fixed assets, intangible assets and other long-term assets | 19,280,110.65 | 7,093,828.69 |
| Net proceeds from the disposal of subsidiaries and other business entities | ||
| Other proceeds relating to investing activities | 419,424,782.41 | 28,655,922.05 |
| Subtotal of cash inflows from investing activities | 717,641,912.72 | 2,445,732,587.60 |
| Payments for the acquisition of fixed assets, intangible assets and other long-term assets | 1,644,034,818.83 | 2,229,459,699.60 |
| Payments for investments | 356,562,777.83 | 2,636,079,853.45 |
| Net increase in mortgage loans | ||
| Net Payments for the acquisition of subsidiaries and other business entities | 876,484,369.67 | |
| Other cash payments relating to investing activities | 530,962,815.64 | 126,553,313.15 |
| Subtotal of cash outflows from investing activities | 2,531,560,412.30 | 5,868,577,235.87 |
| Net cash flows from investing activities | -1,813,918,499.58 | -3,422,844,648.27 |
| III. Cash flows from financing activities | ||
| Proceeds from investors | ||
| Incl.: Proceeds of subsidiaries from minority shareholders’ investments | ||
| Cash receipts from borrowings | 5,465,543,117.47 | 8,961,069,158.05 |
| Other proceeds relating to financing activities | 329,197,076.44 | 458,901,268.55 |
| Subtotal of cash inflows from financing activities | 5,794,740,193.91 | 9,419,970,426.60 |
| Repayment of borrowings | 4,327,541,972.24 | 7,750,861,104.95 |
| Payment of distribution of dividends and profits or for interest | 608,693,016.38 | 394,903,937.46 |
| Incl.: Dividends and profits distributed by subsidiaries to minor shareholders | ||
| Other payments relating to financing activities | 823,264,123.26 | 713,753,915.55 |
| Subtotal of cash outflows from financing activities | 5,759,499,111.88 | 8,859,518,957.96 |
| Net cash flows from financing activities | 35,241,082.03 | 560,451,468.64 |
| IV. Effect of exchange rate changes on cash and cash equivalents | 96,575,094.20 | 412,200,621.26 |
| V. Net increase in cash and cash equivalents | 406,867,075.93 | 163,708,277.65 |
| Add: Opening balance of cash and cash equivalents | 5,644,487,018.31 | 5,457,026,822.70 |
| VI. Closing balance of cash and cash equivalents | 6,051,354,094.24 | 5,620,735,100.35 |
6. Standalone cash flow statement
In RMB
| Item | The reporting period | The same period of the previous year |
| I. Cash flows from operating activities | ||
| Proceeds from the sale of goods and rendering of services | 1,443,818,515.88 | 1,263,974,579.05 |
| Tax refunds received | 29,497,769.17 | 114,584,436.24 |
| Other proceeds relating to operating activities | 1,514,065,178.51 | 2,848,540,868.63 |
| Subtotal of cash inflows from operating activities | 2,987,381,463.56 | 4,227,099,883.92 |
| Payments for purchase of goods and receipt of services | 1,465,458,913.36 | 1,485,613,777.47 |
| Payments to and for employees | 222,379,192.36 | 205,137,158.65 |
| Taxes paid | 63,148,735.28 | 9,503,576.65 |
| Other payments relating to operating activities | 1,536,093,507.96 | 2,925,607,425.96 |
| Subtotal of cash outflows from operating activities | 3,287,080,348.96 | 4,625,861,938.73 |
| Net cash flows from operating activities | -299,698,885.40 | -398,762,054.81 |
| II. Cash flows from investing activities | ||
| Proceeds from disposal of investments | 798,766,541.67 | |
| Proceeds from return on investments | 636,744,542.27 | 5,719,676.92 |
| Net proceeds from the disposal of fixed assets, intangible assets and other long-term assets | 1,973,928.00 | 4,527,689.31 |
| Net proceeds from the disposal of |
| subsidiaries and other business entities | ||
| Other proceeds relating to investing activities | 52,970,680.65 | |
| Subtotal of cash inflows from investing activities | 691,689,150.92 | 809,013,907.90 |
| Payments for the acquisition of fixed assets, intangible assets and other long-term assets | 96,735,594.65 | 192,834,847.36 |
| Payments for investments | 35,000,000.00 | 2,172,517,047.69 |
| Net payments for the acquisition of subsidiaries and other business entities | ||
| Other payments relating to investing activities | 377,108,817.47 | |
| Subtotal of cash outflows from investing activities | 508,844,412.12 | 2,365,351,895.05 |
| Net cash flows from investing activities | 182,844,738.80 | -1,556,337,987.15 |
| III. Cash flows from financing activities | ||
| Proceeds from investors | ||
| Proceeds from borrowings | 2,006,208,006.67 | 4,210,580,000.00 |
| Other proceeds relating to financing activities | 2,229,593,452.48 | 2,269,632,667.18 |
| Subtotal of cash inflows from financing activities | 4,235,801,459.15 | 6,480,212,667.18 |
| Repayment of borrowings | 2,303,446,666.67 | 2,625,913,500.00 |
| Payment of distribution of dividends and profits or for interest | 522,672,772.48 | 291,401,627.99 |
| Other payments relating to financing activities | 1,418,793,147.62 | 1,720,686,959.92 |
| Subtotal of cash outflows from financing activities | 4,244,912,586.77 | 4,638,002,087.91 |
| Net cash flows from financing activities | -9,111,127.62 | 1,842,210,579.27 |
| IV. Effect of exchange rate changes on cash and cash equivalents | 18,646,929.18 | 706,222.03 |
| V. Net increase in cash and cash equivalents | -107,318,345.04 | -112,183,240.66 |
| Add: Opening balance of cash and cash equivalents | 478,844,238.56 | 1,034,143,525.12 |
| VI. Closing balance of cash and cash equivalents | 371,525,893.52 | 921,960,284.46 |
7. Consolidated statement of changes in owners’ equity
The reporting period
In RMB
| Item | The reporting period | ||||||||||||
| Owners’ equity attributable to the parent | Minority | Total | |||||||||||
| Shar | Other equity | Capi | Less | Oth | Spe | Surp | Gen | Reta | Oth | Subt | |||
| e capital | instruments | tal reserve | : Treasury shares | er comprehensive income | cial reserve | lus reserve | eral risk reserve | ined profit | ers | otal | interests | owners’ equity | |||
| Preferred shares | Perpetual bonds | Others | |||||||||||||
| I. Balance at the end of the previous year | 1,709,867,327.00 | 8,063,768,409.73 | 125,906,811.33 | -714,664,578.64 | 184,866,869.73 | 9,025,095,529.05 | 18,143,026,745.54 | 47,329,851.72 | 18,190,356,597.26 | ||||||
| Add: Changes in accounting policies | 0.00 | ||||||||||||||
| Correction of previous period errors | 0.00 | ||||||||||||||
| Others | 0.00 | ||||||||||||||
| II. Balance at the beginning of the current year | 1,709,867,327.00 | 8,063,768,409.73 | 125,906,811.33 | -714,664,578.64 | 184,866,869.73 | 9,025,095,529.05 | 18,143,026,745.54 | 47,329,851.72 | 18,190,356,597.26 | ||||||
| III. Increase/(decrease) in the current period (decrease expressed with “-”) | 1,107,141.50 | 25,000,846.30 | -82,463,528.41 | 135,281,884.02 | 28,924,650.81 | -1,676,923.54 | 27,247,727.27 | ||||||||
| (I) Total comprehensive income | -82,463,528.41 | 560,600,936.27 | 478,137,407.86 | -1,676,923.54 | 476,460,484.32 | ||||||||||
| (II) Investment/(divestment) by shareholders | 1,107,141.50 | 25,000,846.30 | -23,893,704.80 | -23,893,704.80 | |||||||||||
| 1. Contributions from holders of ordinary shares | 0.00 | ||||||||||||||
| 2. Contributions from holders of other equity | 0.00 | ||||||||||||||
| instruments | |||||||||||||||
| 3. Share-based payments recorded in owners’ equity | 1,107,141.50 | 1,107,141.50 | 1,107,141.50 | ||||||||||||
| 4. Others | 25,000,846.30 | -25,000,846.30 | -25,000,846.30 | ||||||||||||
| (III) Distribution of profits | -425,319,052.25 | -425,319,052.25 | -425,319,052.25 | ||||||||||||
| 1. Surplus reserve | 0.00 | ||||||||||||||
| 2. General risk reserve | 0.00 | ||||||||||||||
| 3. Distributions to owners (shareholders) | -425,319,052.25 | -425,319,052.25 | -425,319,052.25 | ||||||||||||
| 4. Others | 0.00 | ||||||||||||||
| (IV) Internal transfer of owners’ equity | 0.00 | ||||||||||||||
| 1. Transfer of capital reserve to (share) capital | 0.00 | ||||||||||||||
| 2. Transfer of surplus reserve to (share) capital | 0.00 | ||||||||||||||
| 3. Make-up of losses by surplus reserve | 0.00 | ||||||||||||||
| 4. Transfer of changes in defined benefit plans to retained earnings | 0.00 | ||||||||||||||
| 5. Transfer of other | 0.00 |
| comprehensive income to retained earnings | |||||||||||||||
| 6. Others | 0.00 | ||||||||||||||
| (V) Special reserve | 0.00 | ||||||||||||||
| 1. Appropriated in the current period | 0.00 | ||||||||||||||
| 2. Used in the current period | 0.00 | ||||||||||||||
| (VI) Others | 0.00 | ||||||||||||||
| IV. Balance at the end of the current period | 1,709,867,327.00 | 8,064,875,551.23 | 150,907,657.63 | -797,128,107.05 | 184,866,869.73 | 9,160,377,413.07 | 18,171,951,396.35 | 45,652,928.18 | 18,217,604,324.53 |
The same period of the previous year
In RMB
| Item | The same period of the previous year | ||||||||||||||
| Owners’ equity attributable to the parent | Minority interests | Total owners’ equity | |||||||||||||
| Share capital | Other equity instruments | Capital reserve | Less: Treasury shares | Other comprehensive income | Special reserve | Surplus reserve | General risk reserve | Retained profit | Others | Subtotal | |||||
| Preferred shares | Perpetual bonds | Others | |||||||||||||
| I. Balance at the end of the previous year | 1,709,867,327.00 | 8,054,894,080.77 | 125,906,811.33 | -692,976,005.21 | 135,347,835.10 | 7,278,203,054.12 | 16,359,429,480.45 | 46,917,968.16 | 16,406,347,448.61 | ||||||
| Add: Changes in accounting policies | |||||||||||||||
| Correction of previous period errors | |||||||||||||||
| Others | |||||||||||||||
| II. Balance at the beginning of the current year | 1,709,867,327.00 | 8,054,894,080.77 | 125,906,811.33 | -692,976,005.21 | 135,347,835.10 | 7,278,203,054.12 | 16,359,429,480.45 | 46,917,968.16 | 16,406,347,448.61 | ||||||
| III. | 5,56 | - | 636, | 400, | 94,5 | 400, | |||||||||
| Increase/(decrease) in the current period (decrease expressed with “-”) | 1,266.10 | 242,092,889.62 | 665,691.99 | 134,068.47 | 31.73 | 228,600.20 | |||||||||
| (I) Total comprehensive income | -242,092,889.62 | 824,548,652.98 | 582,455,763.36 | 94,531.73 | 582,550,295.09 | ||||||||||
| (II) Investment/(divestment) by shareholders | 5,561,266.10 | 5,561,266.10 | 5,561,266.10 | ||||||||||||
| 1. Contributions from holders of ordinary shares | |||||||||||||||
| 2. Contributions from holders of other equity instruments | |||||||||||||||
| 3. Share-based payments recorded in owners’ equity | 5,561,266.10 | 5,561,266.10 | 5,561,266.10 | ||||||||||||
| 4. Others | |||||||||||||||
| (III) Distribution of profits | -187,315,150.99 | -187,315,150.99 | -187,315,150.99 | ||||||||||||
| 1. Surplus reserve | |||||||||||||||
| 2. General risk reserve | |||||||||||||||
| 3. Distributions to owners (shareholders) | -187,315,150.99 | -187,315,150.99 | -187,315,150.99 | ||||||||||||
| 4. Others | |||||||||||||||
| (IV) Internal transfer of owners’ |
| equity | |||||||||||||||
| 1. Transfer of capital reserve to (share) capital | |||||||||||||||
| 2. Transfer of surplus reserve to (share) capital | |||||||||||||||
| 3. Make-up of losses by surplus reserve | |||||||||||||||
| 4. Transfer of changes in defined benefit plans to retained earnings | |||||||||||||||
| 5. Transfer of other comprehensive income to retained earnings | |||||||||||||||
| 6. Others | |||||||||||||||
| (V) Special reserve | |||||||||||||||
| 1. Appropriated in the current period | |||||||||||||||
| 2. Used in the current period | |||||||||||||||
| (VI) Others | -567,810.00 | -567,810.00 | -567,810.00 | ||||||||||||
| IV. Balance at the end of the current period | 1,709,867,327.00 | 8,060,455,346.87 | 125,906,811.33 | -935,068,894.83 | 135,347,835.10 | 7,914,868,746.11 | 16,759,563,548.92 | 47,012,499.89 | 16,806,576,048.81 |
8. Standalone statement of changes in owners’ equity
The reporting period
In RMB
| Item | The reporting period |
| Share capital | Other equity instruments | Capital reserve | Less: Treasury shares | Other comprehensive income | Special reserve | Surplus reserve | Retained profit | Others | Total owners’ equity | |||
| Preferred shares | Perpetual bonds | Others | ||||||||||
| I. Balance at the end of the previous year | 1,709,867,327.00 | 7,962,239,056.77 | 125,906,811.33 | -350,000,000.00 | 184,866,869.73 | 482,854,237.57 | 9,863,920,679.74 | |||||
| Add: Changes in accounting policies | ||||||||||||
| Correction of previous period errors | ||||||||||||
| Others | ||||||||||||
| II. Balance at the beginning of the current year | 1,709,867,327.00 | 7,962,239,056.77 | 125,906,811.33 | -350,000,000.00 | 184,866,869.73 | 482,854,237.57 | 9,863,920,679.74 | |||||
| III. Increase/(decrease) in the current period (decrease expressed with “-”) | 1,107,141.50 | 25,000,846.30 | -725,966,267.04 | -749,859,971.84 | ||||||||
| (I) Total comprehensive income | -300,647,214.79 | -300,647,214.79 | ||||||||||
| (II) Investment/(divestment) by shareholders | 1,107,141.50 | 25,000,846.30 | -23,893,704.80 | |||||||||
| 1. Contributions from holders of ordinary shares | ||||||||||||
| 2. Contributions from holders of other equity instruments | ||||||||||||
| 3. Share-based | 1,107,141.5 | 1,107,141.5 | ||||||||||
| payments recorded in owners’ equity | 0 | 0 | ||||||||||
| 4. Others | 25,000,846.30 | -25,000,846.30 | ||||||||||
| (III) Distribution of profits | -425,319,052.25 | -425,319,052.25 | ||||||||||
| 1. Surplus reserve | ||||||||||||
| 2. Distributions to owners (shareholders) | -425,319,052.25 | -425,319,052.25 | ||||||||||
| 3. Others | ||||||||||||
| (IV) Internal transfer of owners’ equity | ||||||||||||
| 1. Transfer of capital reserve to (share) capital | ||||||||||||
| 2. Transfer of surplus reserve to (share) capital | ||||||||||||
| 3. Make-up of losses by surplus reserve | ||||||||||||
| 4. Transfer of changes in defined benefit plans to retained earnings | ||||||||||||
| 5. Transfer of other comprehensive income to retained earnings | ||||||||||||
| 6. Others | ||||||||||||
| (V) Special reserve |
| 1. Appropriated in the current period | ||||||||||||
| 2. Used in the current period | ||||||||||||
| (VI) Others | ||||||||||||
| IV. Balance at the end of the current period | 1,709,867,327.00 | 7,963,346,198.27 | 150,907,657.63 | -350,000,000.00 | 184,866,869.73 | -243,112,029.47 | 9,114,060,707.90 |
The same period of the previous year
In RMB
| Item | The same period of the previous year | |||||||||||
| Share capital | Other equity instruments | Capital reserve | Less: Treasury shares | Other comprehensive income | Special reserve | Surplus reserve | Retained profit | Others | Total owners’ equity | |||
| Preferred shares | Perpetual bonds | Others | ||||||||||
| I. Balance at the end of the previous year | 1,709,867,327.00 | 7,953,356,366.17 | 125,906,811.33 | -345,461,340.00 | 135,347,835.10 | 224,481,653.09 | 9,551,685,030.03 | |||||
| Add: Changes in accounting policies | ||||||||||||
| Correction of previous period errors | ||||||||||||
| Others | ||||||||||||
| II. Balance at the beginning of the current year | 1,709,867,327.00 | 7,953,356,366.17 | 125,906,811.33 | -345,461,340.00 | 135,347,835.10 | 224,481,653.09 | 9,551,685,030.03 | |||||
| III. Increase/(decrease) in the current period (decrease expressed with “-”) | 5,561,266.10 | -4,538,660.00 | -515,735,984.30 | -514,713,378.20 | ||||||||
| (I) Total comprehensive income | -4,538,660.00 | -328,420,833.31 | -332,959,493.31 | |||||||||
| (II) | 5,561, | 5,561, | ||||||||||
| Investment/(divestment) by shareholders | 266.10 | 266.10 | ||||||||||
| 1. Contributions from holders of ordinary shares | ||||||||||||
| 2. Contributions from holders of other equity instruments | ||||||||||||
| 3. Share-based payments recorded in owners’ equity | 5,561,266.10 | 5,561,266.10 | ||||||||||
| 4. Others | ||||||||||||
| (III) Distribution of profits | -187,315,150.99 | -187,315,150.99 | ||||||||||
| 1. Surplus reserve | ||||||||||||
| 2. Distributions to owners (shareholders) | -187,315,150.99 | -187,315,150.99 | ||||||||||
| 3. Others | ||||||||||||
| (IV) Internal transfer of owners’ equity | ||||||||||||
| 1. Transfer of capital reserve to (share) capital | ||||||||||||
| 2. Transfer of surplus reserve to (share) capital | ||||||||||||
| 3. Make-up of losses by surplus reserve |
| 4. Transfer of changes in defined benefit plans to retained earnings | ||||||||||||
| 5. Transfer of other comprehensive income to retained earnings | ||||||||||||
| 6. Others | ||||||||||||
| (V) Special reserve | ||||||||||||
| 1. Appropriated in the current period | ||||||||||||
| 2. Used in the current period | ||||||||||||
| (VI) Others | ||||||||||||
| IV. Balance at the end of the current period | 1,709,867,327.00 | 7,958,917,632.27 | 125,906,811.33 | -350,000,000.00 | 135,347,835.10 | -291,254,331.21 | 9,036,971,651.83 |
III. General Information of the Company
Suzhou Dongshan Precision Manufacturing Co., Ltd. (the “Company”) is a company limited by shares convertedfrom Suzhou Dongshan Sheet Metal Co., Ltd., and registered with the Suzhou Municipal Administration forIndustry and Commerce of Jiangsu on December 24, 2007, and is headquartered in Suzhou, Jiangsu, holds a businesslicense with unified social credit code of 91320500703719732P, and has a registered capital ofRMB1?709?867?327.00, divided into 1,709,867,327 shares with a par value of RMB 1 each, of which, 319,591,987shares are non-tradable A-shares, and 1,390,275,340 shares are tradable A-shares. The Company’s shares have beenlisted and traded on the Shenzhen Stock Exchange since April 9, 2010.The Company is in the computer, communication and other electronic equipment manufacturing industry, and isprimarily engaged in the provision of core devices for intelligent interconnection, including PCBs, LED displaydevices, touch panels, LCMs, and precision components, etc.These financial statements are published with the approval of the 12th meeting of the 6th Board of Directors of theCompany on August 18, 2024.
IV. Basis for Preparation of the Financial Statements
1. Basis for preparation
These financial statements have been prepared on the assumption that the Company is a going concern.
2. Going concern
No event or fact may cast significant doubts on the Company’s ability to remain a going concern within 12 monthsafter the end of the reporting period.
V. Significant Accounting Policies and Accounting Estimates
Note about specific accounting policies and accounting estimates: The Company has established specific accountingpolicies and made specific accounting estimates with respect to the impairment of financial instruments, inventories,depreciation of fixed assets, construction in progress, intangible assets, recognition of revenues and othertransactions and events according to its actual production and operation characteristics.
1. Statement of compliance with the Accounting Standards for Business Enterprises (“CASBEs”)The financial statements prepared by the Company conform to the requirements of the CASBEs, and truly andcompletely reflect the Company’s financial condition, operating results, cash flows and other related information.
2. Accounting period
The Company’s accounting year is from January 1 to December 31 of each calendar year.
3. Operating cycle
The Company has a relatively short operating cycle and determines the liquidity of assets and liabilities on thebasis of 12 months.
4. Functional currency
The Company adopts RMB as its functional currency, MFLEX adopts USD as its functional currency, and thesubsidiaries of MFLEX, Multek and other companies adopt the currencies of the main economic environment inwhich they operate as their functional currencies.
5. Determination and basis for selection of materiality criteria
?Applicable □N/A
| Item | Materiality criteria |
| Significant accounts receivable assessed for impairment loss individually | Individual accounts receivable accounting for over 0.5% of the total assets of the Company are recognized as significant |
| accounts receivable. | |
| Significant written off accounts receivable | Individual written off accounts receivable accounting for over 0.5% of the total assets of the Company are recognized as significant written off accounts receivable. |
| Significant dividends receivable aged over one year | Individual dividends receivable aged over one year and accounting for over 0.5% of the total assets of the Company are recognized as significant dividends receivable aged over one year. |
| Significant constructions in progress | Individual constructions in progress accounting for over 0.5% of the total assets of the Company are recognized as significant constructions in progress. |
6. Accounting treatment of business combinations involving entities under common control and not undercommon control
(1) Accounting treatment of business combinations involving entities under common controlAssets and liabilities acquired from a business combination by the Company are measured at the carrying value ofthe assets and liabilities of the acquiree in the consolidated financial statements of the ultimate controller at thecombination date. The difference between the carrying value of the owners’ equity of the acquiree as stated in theconsolidated financial statements of the ultimate controller and the carrying value of the total consideration paid ortotal par value of the shares issued in connection with the combination is treated as an adjustment to the capitalreserve. In case the capital reserve is not sufficient to absorb the difference, the remaining balance is charged againstthe retained earnings.
(2) Accounting treatment of business combinations involving entities not under common controlWhere the cost of the combination exceeds the Company’s share of the fair value of the acquiree’s net identifiableassets, the difference is recognized as goodwill at the acquisition date. Where the cost of combination is lower thanthe Company’s share of the fair value of the acquiree’s net identifiable assets, the Company reviews themeasurement of the fair value of each of the identifiable assets, liabilities and contingent liabilities acquired fromthe acquiree and the cost of combination, and if the cost of combination as reviewed is still lower than theCompany’s share of the fair value of the acquiree’s net identifiable assets, the difference is recognized in profit orloss.
7. Determination of control and method of preparation of consolidated financial statements
(1) Determination of control
Control means that the Company has power over the investee, exposure or rights to variable returns from itsinvolvement with the investee and the ability to use its power to affect the amount of those returns.
(2) Method of preparation of consolidated financial statements
The parent includes all of its controlled subsidiaries in its consolidated financial statements. The consolidatedfinancial statements are prepared by the parent in accordance with CASBE 33 “Consolidated Financial Statements”,on the basis of the respective financial statements of the parent and its subsidiaries, by reference to other relevantdata.
8. Classification of joint arrangements and accounting treatment of joint operations
(1) Joint arrangements are classified as joint operations and joint ventures.
(2) When the Company is a party to a joint operation, the Company recognizes the following items relating to its interest in the jointoperation:
1) the assets individually held by the Company, and the Company’s share of the assets held jointly.
2) the liabilities incurred individually by the Company, and the Company’s share of the liabilities incurred jointly.
3) the Company’s revenue from the sale of its share of the output of the joint operation.
4) the Company’s share of revenue from the sale of assets by the joint operation.
5) the expenses incurred individually by the Company, and the Company’s share of the expenses incurred jointly.
9. Recognition of cash and cash equivalents
For the purpose of the statement of cash flows, cash comprises cash on hand and demand deposits, and cashequivalents comprise short-term, highly liquid investments that are readily convertible into known amounts of cashand which are subject to an insignificant risk of changes in value.
10. Translation of foreign currency transactions and foreign currency financial statements
(1) Translation of foreign currency transactions
Upon initial recognition, foreign currency transactions are translated into RMB using the approximate exchangerates of spot exchange rates at the transaction dates. At the balance sheet date, monetary items denominated inforeign currencies are translated into RMB using the spot exchange rates then prevailing. Exchange differencesarising from such translations are recognized in profit or loss, except for those attributable to foreign currencyborrowings that have been taken out specifically for the acquisition or construction of qualifying assets and accruedinterest. Non-monetary items denominated in foreign currencies that are measured at historical cost are translatedusing the approximate exchange rates of spot exchange rates at the transaction dates, without adjusting the amounts
in RMB. Non-monetary items denominated in foreign currencies that are measured at fair value are translated usingthe foreign exchange rates prevailing at the dates the fair value was determined, with the exchange differencesarising from such translations recognized in profit or loss or other comprehensive income.
(2) Translation of foreign currency financial statements
The asset and liability items in the balance sheet are translated at the spot exchange rates prevailing at the balancesheet date. The owners’ equity items other than “retained profits” are translated at the spot exchange rates prevailingat the transaction dates. The income and expense items in the income statement are translated at the approximateexchange rates of spot exchange rates at the transaction dates. The differences arising from such translation offoreign currency financial statements are recognized in other comprehensive income.
11. Financial instruments
1. Classification of financial assets and financial liabilities
Upon initial recognition, financial assets are classified as: (i) financial assets at amortized cost; (ii) financial assetsat fair value through other comprehensive income; and (iii) financial assets at fair value through profit or loss.Upon initial recognition, financial liabilities are classified as: (i) financial liabilities at fair value through profit orloss; (ii) financial liabilities arising as a result of the transfer of financial assets not meeting the criteria forderecognition or continuing involvement in the financial assets transferred; (iii) financial guarantee contracts notfalling under items (i) and (ii), and loan commitments not falling under item (i) and below market interest rate; and(iv) financial liabilities at amortized cost.
2. Recognition, measurement and derecognition of financial assets and financial liabilities
(1) Recognition and initial measurement of financial assets and financial liabilitiesWhen the Company becomes a party to a financial instrument contract, a financial asset or liability is recognized.Financial assets and liabilities are initially measured at fair value. Transaction costs relating to financial assets orliabilities at fair value through profit or loss are directly recognized in profit or loss. Transaction costs relating toother kinds of financial assets or liabilities are included in their initially recognized amount. However, the accountsreceivable that do not contain any significant financing component or are recognized by the Company without takinginto consideration the significant financing components under the contracts with a term of less than one year uponinitial recognition are initially measured at transaction price as defined in CASBE 14 “Revenue”.
(2) Subsequent measurement of financial assets
1) Financial assets at amortized cost
Financial assets at amortized cost are subsequently measured at amortized cost using the effective interest method.Gains or losses on financial assets at amortized cost that do not belong to any hedging relationship are recognizedin profit or loss upon derecognition, reclassification, amortization using the effective interest method, or recognitionof impairment.
2) Investments in debt instruments at fair value through other comprehensive incomeInvestments in debt instruments at fair value through other comprehensive income are subsequently measured atfair value. Interest, impairment losses or gains and exchange gains or losses calculated using the effective interestmethod are recognized in profit or loss, while other gains or losses are recognized in other comprehensive income.Upon derecognition, the aggregate gains or losses previously recognized in other comprehensive income aretransferred to profit or loss.
3) Investments in equity instruments at fair value through other comprehensive incomeInvestments in equity instruments at fair value through other comprehensive income are subsequently measured atfair value. Dividends received (other than those received as recovery of investment cost) are recognized in profit orloss, while other gains or losses are recognized in other comprehensive income. Upon derecognition, the aggregategains or losses previously recognized in other comprehensive income are transferred to retained earnings.
4) Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss are subsequently measured at fair value. Gains or losses thereon,including interest and dividend income, are recognized in profit or loss, except the financial assets belonging to anyhedging relationship.
(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 financial liabilities held for trading (includingderivatives classified as financial liabilities), and financial liabilities directly designated as at fair value throughprofit or loss. Such financial liabilities are subsequently measured at fair value. Changes in the fair value of financialliabilities designated as at fair value through profit or loss arising out of changes in the Company’s credit risk arerecognized in other comprehensive income, unless such treatment will result in or increase any accounting mismatchin profit or loss. Other gains or losses on such financial liabilities, including interest expenses and changes in fairvalue not arising out of changes in the Company’s credit risk, are recognized in profit or loss, except the financialliabilities belonging to any hedging relationship. Upon derecognition, the aggregate gains or losses previouslyrecognized in other comprehensive income are transferred to retained earnings.
2) Financial liabilities arising as a result of the transfer of financial assets not meeting the criteria for derecognitionor continuing involvement in the financial assets transferredSuch financial liabilities are measured in accordance with CASBE 23 “Transfer of Financial Assets”.
3) Financial guarantee contracts not falling under items 1) and 2), and loan commitments not falling under item 1)and below the market interest rateSuch financial liabilities are subsequently measured at the higher of (i) allowance for impairment losses determinedaccording to the policy for impairment of financial instruments; and (ii) balance of the initially recognized amountafter deduction of the accumulated amortization determined in accordance with CASBE 14 “Revenue”.
4) Financial liabilities at amortized cost
Financial liabilities at amortized cost are subsequently measured at amortized cost using the effective interestmethod. Gains or losses on financial liabilities at amortized cost that do not belong to any hedging relationship arerecognized in profit or loss upon derecognition or amortization using the effective interest method.
(4) Derecognition of financial assets and financial liabilities
1) Financial assets are derecognized when:
① the contractual right to receive cash flows from the financial assets has expired; or
② the financial assets have been transferred and such transfer meets the criteria for derecognition of financial assetsas set forth in CASBE 23 “Transfer of Financial Assets”.
2) A financial liability (or part thereof) is derecognized when all or part of the outstanding obligations thereunderhave been discharged.
3. Determination and measurement of financial assets transferred
When a financial asset of the Company is transferred, if substantially all the risks and rewards incidental to theownership of the financial asset have been transferred, the financial asset is derecognized, and the rights andobligations incurred or retained in such transfer are separately recognized as assets or liabilities (as the case maybe); if the Company has retained substantially all the risks and rewards incidental to the ownership of the financialasset, the Company continues to recognize the financial asset transferred. If the Company neither transferred norretained a substantial portion of all risks and rewards incidental to the ownership of the financial asset, then: (i) ifthe Company does not retain control over the financial asset, the financial asset is derecognized, and the rights andobligations incurred or retained in such transfer are separately recognized as assets or liabilities (as the case maybe); or (ii) if the Company retains control over the financial asset, the financial asset continues to be recognized to
the extent of the Company’s continuing involvement in the financial asset transferred, and a corresponding liabilityis recognized.If an entire transfer of a financial asset meets the criteria for derecognition, the difference between (i) the carryingvalue of the financial asset transferred at the date of derecognition; and (ii) the sum of the consideration receivedfrom the transfer and the portion of the cumulative amount of changes in fair value directly recorded as othercomprehensive income originally that corresponds to the part derecognized (where the financial asset transferred isan investment in debt instruments at fair value through other comprehensive income) is recognized in profit or loss.If part of a financial asset is transferred and the part transferred entirely meets the criteria for derecognition, the totalcarrying value of the financial asset immediately prior to the transfer is allocated between the part derecognized andthe part not derecognized in proportion to their relative fair value at the date of transfer, and the difference between(i) the carrying value of the part derecognized; and (ii) the sum of the consideration received from the transfer ofthe part derecognized and the portion of the cumulative amount of changes in fair value directly recorded as othercomprehensive income originally that corresponds to the part derecognized (where the financial asset transferred isan investment in debt instruments at fair value through other comprehensive income) is recognized in profit or loss.
4. Determination of fair value of financial assets and financial liabilities
The Company adopts the valuation techniques applicable to the current situations and with sufficient data availableand support of other information, to determine the fair value of financial assets and financial liabilities. TheCompany classifies the inputs used by the valuation techniques in the following levels and uses them in turn:
(1) Level 1 inputs: quoted market price (unadjusted) in an active market for an identical asset or liability availableat the date of measurement.
(2) Level 2 inputs: inputs other than inputs included within Level 1 that are observable directly or indirectly. Thiscategory includes quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similarassets or liabilities in inactive markets, observable inputs other than quoted prices (such as interest rate and yieldcurves observable during regular intervals of quotation), and inputs validated by the market.
(3) Level 3 inputs: inputs that are unobservable. This category includes interest rate or stock volatility that cannotbe directly observed or validated by observable market data, future cash flows from retirement obligations incurredin business combinations, and financial forecasts made using own data.
5. Impairment of financial instruments
The Company determines the impairment and assesses allowance for impairment of financial assets at amortizedcost, investments in debt instruments at fair value through other comprehensive income, contract assets, lease
payments receivable, loan commitments other than financial liabilities designated at fair value through profit or loss,and financial guarantee contracts other than financial liabilities designated at fair value through profit or loss andfinancial liabilities arising as a result of the transfer of financial assets not meeting the criteria for derecognition orcontinuing involvement in the financial assets transferred, on the basis of expected credit losses.Expected credit loss is the weighted average of credit losses on financial instruments taking into account thepossibility of default. Credit loss is the present value of the difference between all contractual cash flows receivableunder the contract and estimated future cash flows discounted at the original effective interest rate, i.e. the presentvalue of all cash shortages, where the Company’s purchased or originated financial assets that have become creditimpaired are discounted at their credit-adjusted effective interest rate.With respect to purchased or originated financial assets that have become credit impaired, at the balance sheet date,the Company recognizes an impairment loss equal to the cumulative amount of changes in lifetime expected creditlosses since initial recognition.With respect to lease payments receivable, accounts receivable arising from transactions within the meaning ofCASBE 14 “Revenue”, the Company uses the simplified measurement method and recognizes an impairment lossequal to the lifetime expected credit losses.With respect to financial assets not using the measurement methods stated above, at each balance sheet date, theCompany assesses whether the credit risk has increased significantly since initial recognition, and recognizes animpairment loss equal to the lifetime expected credit losses if the credit risk has increased significantly since initialrecognition, or to the expected credit losses within the next 12 months if the credit risk has not increased significantlysince initial recognition.The Company uses reasonable and supportable information, including forward-looking information, and comparesthe possibility of default at the balance sheet date with the possibility of default upon initial recognition, to determinewhether the credit risk of the financial instruments has increased significantly since initial recognition.At the balance sheet date, if the Company determines that a financial instrument has low credit risk, the Companyassumes that its credit risk has not increased significantly since initial recognition.The Company assesses expected credit risk and measures expected credit losses of financial instruments individuallyor collectively. When assessing the financial instruments collectively, the Company includes the financialinstruments in different groups according to their common risk characteristics.At each balance sheet date, the Company re-assesses the expected credit losses, with the amount of increase in orreversal of impairment loss recognized in profit or loss as impairment losses or gains. With respect to a financial
asset at amortized cost, its carrying value recorded in the balance sheet is written off against the impairment loss.With respect to an investment in debt instruments at fair value through other comprehensive income, the Companyrecognizes the impairment loss in other comprehensive income, without reducing its carrying value.
6. Offsetting of financial assets and financial liabilities
Financial assets and financial liabilities are offset and presented on a net basis in the balance sheet only if: (i) theCompany has a currently enforceable legal right to offset the recognized amounts; and (ii) the Company has anintention to settle on a net basis or realize the assets and settle the liabilities simultaneously. Except as stated above,financial assets and financial liabilities are presented in the balance sheet separately, without offsetting each other.With respect to the transfer of financial assets not meeting the criteria for derecognition, the Company does notoffset the financial assets transferred against the relevant liabilities.
12. Notes receivable
13. Accounts receivable
14. Accounts receivable financing
15. Other receivables
16. Contract assets
Contract assets or contract liabilities are presented in the balance sheet according to the relationship between therelevant performance obligations and payment by the customer. Contract assets and contract liabilities under thesame contract are presented on a net basis.The right of the Company to payment that is unconditional, except for the passage of time, is presented as an accountreceivable. The right of the Company to payment for goods already transferred to a customer is presented as acontract asset if that right to payment is conditional on something other than the passage of time.The Company’s obligation to transfer goods to a customer in exchange for the consideration paid or payable by thecustomer is presented as a contract liability.
17. Inventories
1. Classification of inventories
Inventories include finished products or goods held for sale in the ordinary course of business, work in progress andmaterials and goods consumed in the process of production or rendering of services.
2. Valuation of inventories dispatched
The value of inventories dispatched is determined using the weighted average method at the end of the month inwhich they were dispatched.
3. Inventory system
The perpetual inventory system is adopted.
4. Amortization of low-value consumables and packing materials
(1) Low-value consumables
Low-value consumables are amortized using the immediate write-off method.
(2) Packing materials
Packing materials are amortized using the immediate write-off method.
5. Inventory provision
At the balance sheet date, inventories are measured at the lower of cost and net realizable value. An amount equalto the cost of an inventory in excess of its net realizable value is recognized as an inventory provision. The netrealizable value of inventories held directly for sale is the estimated selling price of such inventories less theestimated selling expenses and related taxes in the ordinary course of business. The net realizable value ofinventories to be further processed is the estimated selling price of finished goods less the estimated cost ofcompletion, estimated selling expenses and related taxes in the ordinary course of business. At the balance sheetdate, if part of an inventory has a contract price while the remaining part thereof does not have a contract price, thenet realizable value is determined separately, which is compared with their cost, to determine the amount of theinventory provision recognized or reversed (as applicable).
18. Assets held for sale
19. Debt investments
20. Other debt investments
21. Long-term receivable
22. Long-term equity investments
1. Determination of joint control and significant influence
Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisionsabout the relevant activities require unanimous consent of the parties sharing control. Significant influence is the
power to participate in the financial and operating policy-making of an entity, but is not control or joint control overthose policies.
2. Determination of investment cost
(1) For an equity investment acquired through a business combination involving entities under common control, ifthe acquirer pays consideration for the business combination by cash, transfer of non-monetary assets, assumptionof liabilities or issuance of equity securities, the initial investment cost of the long-term equity investment is theCompany’s share of the carrying value of the owners’ equity of the acquiree in the consolidated financial statementsof the ultimate controller at the combination date. The difference between: (i) the initial investment cost of the long-term equity investment; and (ii) the carrying value of the consideration paid for the combination or the total parvalue of the shares issued (as applicable) is treated as an adjustment to the capital reserve. In case the capital reserveis not sufficient to absorb the difference, the remaining balance is charged against the retained earnings.If a business combination is affected through multiple transactions by steps that constitute a package deal, theCompany accounts for such transactions as one deal to gain control. If such transactions do not constitute a packagedeal, the initial investment cost is the Company’s share of the carrying value of the owners’ equity of the acquireein the consolidated financial statements of the ultimate controller at the combination date; and the differencebetween: (i) the initial investment cost of the long-term equity investment at the combination date; and (ii) the sumof the carrying value of long-term equity investment before the combination and the carrying value of theconsideration paid for acquisition of the additional shares at the combination date is treated as an adjustment to thecapital reserve. In case the capital reserve is not sufficient to absorb the difference, the remaining balance is chargedagainst the retained earnings.
(2) For an equity investment acquired through a business combination involving entities not under common control,the initial investment cost is the fair value of the aggregate consideration paid at the date of acquisition.With respect to a long-term equity investment acquired through a business combination involving entities undercommon control that is affected through multiple transactions by steps, the accounting thereof in the standalonefinancial statements is different from that in the consolidated financial statements as stated below:
1) In the standalone financial statements, the sum of the carrying value of the equity investment originally held inthe acquiree and the additional investment cost incurred is recorded as the initial investment cost of the equityinvestment changed into the cost method.
2) In the consolidated financial statements, if the transactions constitute a package deal, the Company accounts forsuch transactions as one deal to gain control. If such transactions do not constitute a package deal, the equity held
in the acquiree prior to the acquisition date is remeasured at its fair value at the acquisition date, with the differencebetween its fair value and carrying value recognized as an investment income for the current period; if the equityheld in the acquiree prior to the acquisition date involves other comprehensive income under the equity method,such other comprehensive income is transferred to the income for the period in which the acquisition date falls,except for other comprehensive income arising from remeasurement of changes in net liabilities or net assets ofdefined benefit plans.
(3) For an equity investment not acquired through business combination, the initial investment cost is the purchaseprice actually paid if it is acquired by cash, or the fair value of the equity securities issued if it is acquired throughissuance of equity securities, or in accordance with CASBE 12 “Debt Restructuring” if it is acquired through debtrestructuring, or CASBE 7 “Exchange of Non-monetary Assets” if it is acquired through exchange of non-monetaryassets.
3. Subsequent measurement and recognition of profit or loss
Long-term equity investments in investees over which the Company exercises control are accounted for using thecost method. Long-term equity investments in associates and joint ventures are accounted for using the equitymethod.
4. Disposal of investment in a subsidiary through multiple transactions by steps until loss of control over thesubsidiary
(1) Criteria for determining a package deal
Where the Company loses control over a subsidiary due to the disposal of equity investment in the subsidiarythrough multiple transactions by steps, the Company determines whether such transactions constitute a packagedeal taking into account the transaction contract terms, consideration received, the transferee of the equity sold,method of disposal, time of disposal and other information in respect of each step. If the terms, conditions andfinancial effect of such transactions fall under one or more of the circumstances set forth below, such transactionsare accounted for as a package deal generally:
1) such transactions are concluded simultaneously or in consideration of their mutual effect.
2) such transactions will achieve a complete business result only as a whole.
3) the occurrence of a transaction depends on the occurrence of at least another transaction; and/or
4) a transaction may be uneconomical when considered individually, but is economical when considered togetherwith other transactions.
(2) Accounting treatment of transactions not constituting a package deal
1) Standalone financial statements
The difference between the carrying value of the equity disposed of and the disposal proceeds actually received isrecognized in profit or loss. If the remaining equity empowers the Company to exercise significant influence or jointcontrol over the investee, the remaining equity is accounted for using the equity method; if the remaining equitydoes not empower the Company to exercise control, joint control or significant influence over the investee, theremaining equity is accounted for in accordance with CASBE 22 “Recognition and Measurement of FinancialInstruments”.
2) Consolidated financial statements
Before the loss of control, the difference between the disposal proceeds and the Company’s share of the net assetsof the subsidiary corresponding to the long-term equity investment disposed of as calculated continuously from theacquisition date or combination date is treated as an adjustment to the capital reserve (capital premium). In case thecapital premium is not sufficient to absorb the difference, the remaining balance is charged against the retainedearnings.Upon loss of control, the remaining equity is remeasured at its fair value at the date of loss of control. The sum ofthe consideration received from the disposal of the equity and the fair value of the remaining equity, net of theCompany’s share of the net assets of the subsidiary as calculated continuously from the acquisition date accordingto the original shareholding ratio, is included in the investment income for the period during which the control waslost, and charged against goodwill. Other comprehensive income related to the equity investment in the subsidiaryis transferred to the investment income for the period during which the control was lost.
(3) Accounting treatment of transactions constituting a package deal
1) Standalone financial statements
The Company accounts for such transactions as one deal to dispose of and lose control over the subsidiary; however,in the standalone financial statements, the difference between the proceeds from each disposal before loss of controland the carrying value of the long-term equity investment corresponding to the equity disposed of is recognized inother comprehensive income, which is wholly transferred to profit or loss in the period during which the controlwas lost.
2) Consolidated financial statements
The Company accounts for such transactions as one deal to dispose of and lose control over the subsidiary; however,in the consolidated financial statements, the difference between the proceeds from each disposal before loss ofcontrol and the Company’s share of the net assets of the subsidiary corresponding to the equity disposed of is
recognized in other comprehensive income, which is wholly transferred to profit or loss in the period during whichthe control was lost.
23. Investment property
1. Investment properties include land use rights leased out or held for appreciation and buildings and structuresleased out.
2. An investment property is measured initially at cost, and subsequently using the cost model, and depreciated oramortized using the same method as fixed assets and intangible assets.
24. Fixed assets
(1) Criteria for recognition
Fixed assets are tangible assets held for the production of goods, rendering of service, lease or operation and management with auseful life of more than one accounting year. A fixed asset is recognized if the economic benefits relating to it are very likely to flowto the Company and its cost can be reliably measured.
(2) Depreciation
| Category | Method of depreciation | Estimated useful life (years) | Rate of residual value (%) | Annual rate of depreciation |
| Buildings and structures | Straight line method | 20-30 | 5 | 3.17-4.75 |
| Machinery and equipment | Straight line method | 5-10 | 5 | 9.50-19.00 |
| Transportation equipment | Straight line method | 5 | 5 | 19.00 |
| Office equipment and others | Straight line method | 5 | 5 | 19.00 |
25. Construction in progress
1. A construction in progress is recognized if the economic benefits relating to it are very likely to flow to theCompany and its cost can be reliably measured. Construction in progress is measured at the actual cost incurredbefore it is completed and ready for the intended use.
2. When a construction in progress is ready for intended use, it is transferred to fixed assets at its actual constructioncost. A construction in progress that is ready for intended use but the final settlement of which has not yet beencompleted is transferred to fixed assets at estimated value first, and after the completion of the final settlement, theestimated value is adjusted according to the actual cost, without adjusting the accumulated depreciation.
| Category | Criteria and time for transfer of construction in progress to fixed assets |
| Machinery and equipment | Meet the design requirements or agreed standards after installation and commissioning |
| Buildings and structures | Meet the building completion acceptance criteria |
26. Borrowing costs
1. Recognition of capitalization of borrowing costs
Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset arecapitalized as part of the cost of the asset when they meet the condition for capitalization. Other borrowing costsare expensed when they are incurred and recognized in profit or loss.
2. Period of capitalization of borrowing costs
(1) A borrowing cost is capitalized when all of the following conditions are satisfied: (i) the expenditures on theasset have already been incurred; (ii) the borrowing cost has already been incurred; and (iii) the acquisition,construction or production activities necessary to prepare the asset for its intended use or sale have alreadycommenced.
(2) Capitalization of borrowing costs is suspended during the period of abnormal interruption of acquisition,construction or production of a qualifying asset which lasts for more than three consecutive months. The borrowingcosts incurred during the period of suspension are recognized as expenses for the current period. The capitalizationof borrowing costs is suspended until the resumption of acquisition, construction or production activities.
(3) Capitalization of borrowing costs ceases when a qualifying asset acquired, constructed or produced gets readyfor its intended use or sale.
3. Rate and amount of capitalization of borrowing costs
For borrowings obtained specially for the acquisition, construction or production of a qualifying asset, the amountof capitalization of the borrowing costs is the cost of the borrowings actually incurred in the current period(including amortized discount or premium determined using the effective interest method) less the interest incomefrom the part of borrowings that has not yet been utilized and is deposited in banks or investment income fromtemporary investment of the borrowings. For general borrowings occupied for the acquisition, construction orproduction of a qualifying asset, the amount of borrowing costs eligible for capitalization is determined bymultiplying the weighted average of the excess of cumulative expenditures on the asset over the special-purposeborrowings by the capitalization rate of the general borrowings occupied.
27. Biological assets
28. Oil and gas assets
29. Intangible assets
(1) Useful life and basis for determination of useful life, estimates, method of amortization or reviewprocedure
1. Intangible assets, including land use rights, patents, non-patent technologies, etc., are initially measured at cost.
2. An intangible asset with a finite useful life is amortized in a systematic and reasonable manner according to thepattern in which the economic benefits related to the intangible asset are expected to be realized, or if that patterncannot be determined reliably, using the straight-line method as follows:
| Item | Useful life and basis for determination of useful life (years) | Method of amortization |
| Land use rights | 50 | Straight line method |
| Development expenses | 5 | Straight line method |
| Software | 3 | Straight line method |
| Trademarks and patents | 10 | Straight line method |
| Customer resources | 10 | Straight line method |
Intangible asset with indefinite useful life is not amortized, but its useful life is reviewed annually.
(2) Scope and accounting treatment of research and development (R&D) expenses
3. Scope of R&D expenses
(1) Labor costs
Labor costs comprise the wages, salaries, basic pension insurance, basic medical insurance, unemployment,worker’s compensation insurance, maternity insurance and housing provident fund contributions paid to or for theR&D personnel, and service fees of the outsourced R&D personnel.With respect to the R&D personnel serving a number of R&D projects concurrently, their labor costs are allocatedto the relevant R&D projects on a pro-rata basis according to the record of working hours spent by them in suchR&D projects as provided by the administrative department.With respect to the Company’s own R&D personnel and outsourced R&D personnel who are directly engaged inR&D activities and also engaged in non-R&D activities, their labor costs actually incurred are allocated betweenR&D expenses and production and business expenses on a pro-rata basis in proportion to the percentage of workinghours spent by them on different posts as recorded, or otherwise reasonably.
(2) Direct costs
Direct costs refer to the costs actually incurred by the Company in connection with R&D activities, including (i)costs of materials, fuels and powers directly consumed; (ii) costs of development and fabrication of molds andprocess equipment used in pilot trials and trial production, purchasing costs of samples, prototypes and generaltesting methods not classified as fixed assets, and inspection costs of trial produces; and (iii) operation, maintenance,calibration, inspection, testing, repair and other costs of instruments and equipment used in R&D activities.
(3) Depreciation expenses and long-term deferred expenses
Depreciation expenses refer to the depreciation expenses of instruments, equipment and buildings used in R&Dactivities.With respect to the instruments, equipment and buildings used in both R&D activities and non-R&D activities, thedepreciation expenses actually incurred are allocated between R&D expenses and production and business expensesaccording to the actual working hours and area used as recorded, or otherwise reasonably.Long-term deferred expenses refer to the long-term deferred expenses incurred in the alteration, modification,renovation and repair of R&D facilities, which are recorded according to the amounts actually spent, and amortizedon a straight-line basis over the defined period.
(4) Amortization expenses of intangible assets
Amortization expenses of intangible assets refer to the amortization expenses of software, intellectual properties,and non-patented technologies (know-how, licenses, designs, computing methods, etc.) used in R&D activities.
(5) Design costs
Design costs refer to the costs incurred in the design of processes, technical specifications, rules of operation andoperating features in connection with the concept, development and manufacturing of new products and newprocesses, including the costs of creative design activities conducted for the purpose of developing innovative,creative and breakthrough products.
(6) Equipment commissioning costs and testing costs
Equipment commissioning costs refer to the costs incurred during the equipment preparation phase of R&Dactivities, including the costs of developing special-purpose production machines, changing production and qualitycontrol procedures, developing new approaches and standards, etc.The costs incurred for general equipment preparation and industrial engineering in connection with large-scale massand commercial production are excluded from the scope of aggregation.Testing costs include clinical trial costs for the development of new drugs, field trial costs for exploration anddevelopment technologies, field experiment costs, etc.
(7) Outsourced R&D expenses
Outsourced R&D expenses refer to the expenses of R&D activities that the Company engages external entities orindividuals at home or abroad to conduct, provided that the results of such R&D activities will be owned by theCompany and such R&D activities are closely related to the primary business of the Company.
(8) Other expenses
Other expenses refer to the expenses that are not set forth above and directly related to R&D activities, includingthe expenses of technical documents and data, translation, advisors and consultants, high and new technology R&Dinsurance, retrieval, verification, evaluation, appraisal and acceptance inspection of R&D achievements, application,registration and agency service in respect of intellectual properties, meetings, travel, communication, etc.
4. Expenditures on an internal R&D project at the research phase are recognized in profit or loss in the period inwhich they are incurred. Expenditures on an internal R&D project at the development phase are recognized as anintangible asset if: (i) it is technically feasible to complete the intangible asset so that it will be available for use ofsale; (ii) it is intended to complete the intangible asset so that it will be available for use of sale; (iii) the pattern inwhich the intangible asset will generate economic results can demonstrate the existence of a market for the outputof the intangible asset or the intangible asset itself, or if it is to be used internally, the usefulness of the intangibleasset; (iv) there are sufficient technical, financial and other resources available to complete the developmentactivities and to use or sell the intangible asset; and (v) the expenditures attributable to the development of theintangible asset can be reliably measured.
30. Impairment of long-term assets
With respect to long-term equity investments, investment properties at cost, fixed assets, construction in progress,productive biological assets at cost, oil and gas assets, right-of-use assets, intangible assets with a finite useful lifeand other long-term assets, if there’s an indication of impairment at the balance sheet date, the Company assessestheir recoverable amount. Goodwill arising from business combinations and intangible assets with an infinite usefullife are tested for impairment every year regardless of whether there’s an indication of impairment. Goodwill istested for impairment together with the relevant groups of assets or combinations of groups of assets.If the recoverable amount of a long-term asset is less than its carrying value, the difference is measured as animpairment loss on the asset and recognized in profit or loss.
31. Long-term deferred expenses
Long-term deferred expenses are expenses that have already been incurred but should be amortized over a periodof more than one year. Long-term deferred expenses are stated as the amount actually incurred, and equallyamortized over the benefit period or established period. If an item of long-term deferred expenses will not benefitthe subsequent periods, the remaining unamortized balance of the item is wholly transferred to profit or loss.
32. Contract liabilities
Contract assets or contract liabilities are presented in the balance sheet according to the relationship between therelevant performance obligations and payment by the customer. Contract assets and contract liabilities under thesame contract are presented on a net basis.The Company’s rights to receive consideration from customers unconditionally (which depends only on the passageof time) are presented as receivables, and the Company’s rights to receive consideration for goods transferred tocustomers (which depends on factors other than the passage of time) are presented as contract assets.The Company’s obligation to transfer goods to a customer in exchange for the consideration paid or payable by thecustomer is presented as a contract liability.
33. Employee benefits
(1) Accounting treatment of short-term employee benefits
1. Employee benefits include short-term employee benefits, post-employment benefits, termination benefits andother long-term employee benefits.
2. Accounting treatment of short-term employee benefits
The short-term employee benefits actually incurred are recognized as liabilities in the accounting period duringwhich employee services are rendered and included in profit or loss or the cost of related assets.
(2) Accounting treatment of post-employment benefits
Post-employment benefits are classified as defined contribution plans and defined benefit plans.
(1) In the accounting period during which employee services are rendered, the amount contributable as calculatedaccording to the defined contribution plan is recognized as liabilities and included in profit or loss or the costs ofrelated assets.
(2) The accounting treatment of a defined benefit plan generally involves the following steps:
1) According to the projected unit credit method, use unbiased and consistent actuarial assumptions to estimatedemographic variables and financial variables, measure the obligation arising from the defined benefit plan anddetermine the period to which the relevant obligation belongs. Meanwhile, discount the obligation arising from thedefined benefit plan, in order to determine the present value of the benefit plan obligation and the current servicecost.
2) If the defined benefit plan has assets, the deficit or surplus resulting after reducing the present value of the definedbenefit obligation by the fair value of the defined benefit plan is recognized as a net liability or asset of the definedbenefit plan. If the defined benefit plan has a surplus, the net assets of the defined benefit plan are measured at thelower of surplus in the defined benefit plan and asset ceiling.
3) At the end of the current period, the cost of employee benefits arising from the defined benefit plan is recordedas service cost, net interest on the net liabilities or net assets of the defined benefit plan, and changes arising fromremeasurement of the net liabilities or net assets of the defined benefit plan, where the service cost and the netinterest on the net liabilities or net assets of the defined benefit plan are included in profit or loss or the cost ofrelated assets, and the changes arising from remeasurement of the net liabilities or net assets of the defined benefitplan are included in other comprehensive income, which will not be reversed to profit or loss in subsequent periods,but may be transferred within the scope of equity.
(3) Accounting treatment of termination benefits
When the Company can no longer withdraw the offer of termination benefits as a result of termination ofemployment or redundancy, or recognizes the restructuring costs or expenses relating to payment of terminationbenefits, whichever the earlier, the employee benefit liabilities arising from recognition of termination benefits arerecognized in profit or loss.
(4) Accounting treatment of other long-term employee benefits
Other long-term employee benefits are accounted for in accordance with the provisions applicable to definedcontribution plans if they are qualified as defined contribution plans, otherwise, are accounted for in accordancewith the provisions applicable to defined benefit plans. In order to simplify the accounting, the total net amount ofthe cost of employee benefits arising from the defined benefit plans that is recorded as service cost, net interest onthe net liabilities or net assets of the defined benefit plan, changes arising from remeasurement of the net liabilitiesor net assets of the defined benefit plan and other components is included in profit or loss or the cost of relatedassets.
34. Provisions
1. Provisions are recognized when the Company has a present obligation as a result of any external guarantee,litigations, product quality warranty, onerous contract or other contingencies, and it is probable that an outflow ofresources embodying economic benefits will be required to settle the obligation, and the amount of the obligationcan be reliably measured.
2. Provisions are initially measured according to the best estimates of the expenditures required to settle the relatedpresent obligations. The carrying value of provisions is reviewed at the balance sheet date.
35. Share-based payments
1. Types of share-based payments
Share-based payments include equity-settled share-based payments and cash-settled share-based payments.
2. Accounting treatment of implementation, amendment and termination of share-based payment plans
(1) Equity-settled share-based payment
With respect to an equity-settled share-based payment that is granted in exchange for the services of employees, ifthe right can be immediately exercised after the grant, at the date of the grant, the fair value of the equity instrumentsis included in the relevant costs or expenses, and the capital reserve is adjusted accordingly; if the right may not beexercised until the vesting period comes to an end or until the specified performance conditions are met, at eachbalance sheet date within the vesting period, the services received in the current period are, based on the bestestimate of the exercisable equity, included in the relevant costs or expenses at the fair value of the equityinstruments at the date of grant, and the capital reserve is adjusted accordingly.An equity-settled share-based payment that is granted in exchange for the services of any other party is measuredat fair value at the date of receipt of such services if the fair value of such services can be reliably measured, or atthe fair value of the equity instruments at the date of receipt of such services if the fair value of such services cannotbe reliably measured but the fair value of the equity instruments can be reliably measured. The services are includedin the relevant costs or expenses, and the owners’ equity is increased accordingly.
(2) Cash-settled share-based payment
With respect to a cash-settled share-based payment that is granted in exchange for the services of employees, if theright can be immediately exercised after the grant, at the date of grant, the fair value of the liability undertaken bythe Company is included in the relevant costs or expenses, and the liabilities are increased accordingly; if the right
may not be exercised until the vesting period comes to an end or until the specified performance conditions are met,at each balance sheet date within the vesting period, the services received in the current period are, based on thebest estimate about the exercisable right, included in the relevant costs or expenses and the corresponding liabilitiesat the fair value of the liability undertaken by the Company.
(3) Amendment and termination of share-based payment plans
If such amendment results in an increase in the fair value of the equity instruments granted, the Company recognizesa corresponding increase in the services received according to the increase in the fair value of the equity instruments.If such amendment results in an increase in the number of the equity instruments granted, the Company recognizesa corresponding increase in the services received according to the fair value of the additional equity instrumentsgranted. If the Company amends the vesting conditions in a manner favorable to the employees, the Company willtake into account the vesting conditions as amended in the accounting thereof.If such amendment results in a decrease in the fair value of the equity instruments granted, the Company continuesto recognize the services received based on the fair value of the equity instruments at the date of grant, withouttaking into account the decrease in the fair value of the equity instruments. If such amendment results in a decreasein the number of the equity instruments granted, the portion of the equity instruments reduced is deemed canceled.If the Company amends the vesting conditions in a manner unfavorable to the employees, the Company will nottake into account the vesting conditions as amended in the accounting thereof.If, during the vesting period, the Company cancels or settles any equity instruments granted (except for thosecanceled due to failure to satisfy the vesting conditions), such cancellation or settlement is treated as an accelerationof vesting, and the amount that would have been recognized in the remaining vesting period is recognizedimmediately.
36. Preferred shares, perpetual bonds and other financial instruments
37. Revenue
Accounting policies for recognition and measurement of revenue disclosed by business type
1. Revenue recognition principle
At contract commencement, the Company assesses a contract to identify each single performance obligationincluded in the contract and whether such performance obligation shall be satisfied over time or at a point in time.A performance obligation shall be satisfied over time if it meets one of the following conditions, otherwise, it shall
be satisfied at a point in time: (i) the customer simultaneously receives and consumes the benefits provided by theCompany’s performance; (ii) the customer can control the work in process created during the Company’sperformance; or (iii) the Company’s performance does not create the goods with an alternative use to the Companyand the Company has an enforceable right to payment for performance completed to date.With respect to a performance obligation satisfied over time, the Company recognizes revenue over time bymeasuring the progress toward complete satisfaction of that performance obligation. If the Company is unable toreasonably measure the progress of a performance obligation, but expects to recover the costs incurred in satisfyingthe performance obligation, the Company recognizes revenue only to the extent of the costs incurred until such timethat it can reasonably measure the progress of the performance obligation. With respect to a performance obligationsatisfied at a point in time, the Company recognizes revenue when the customer obtains control of the relevantgoods or services. In determining whether the customer has obtained control of any goods, the Company considersthe following indicators: (i) the Company has a present right to payment for the goods, i.e. the customer presentlyis obliged to pay for the goods; (ii) the Company has transferred the legal title to the goods to the customer, i.e. thecustomer has the legal title to the goods; (iii) the Company has transferred physical possession of the goods to thecustomer, i.e. the customer physically possesses the goods; (iv) the Company has passed the significant risks andrewards of ownership of the goods to the customer, i.e. the customer has the significant risks and rewards ofownership of the goods; (v) the customer has accepted the goods; and (vi) other indicators showing that the customerhas obtained control of the goods.
2. Revenue measurement principle
(1) The Company measures revenue according to the transaction price allocated to each performance obligation.Transaction price is the amount of consideration to which the Company expects to be entitled in exchange fortransferring the relevant goods or services to a customer, excluding the amounts collected on behalf of third partiesor expected to be returned to the customer.
(2) If a contract has any variable consideration, the Company determines the best estimate of the variableconsideration according to the expected value or the most likely amount, but the Company shall include in thetransaction price some or all of an amount of variable consideration only to the extent that it is probable that asignificant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associatedwith the variable consideration is subsequently resolved.
(3) If a contract contains a significant financing component, the Company determines the transaction price accordingto the amount that the customer would have paid for the goods or services if it had paid cash when it obtained control
of the goods or services. The difference between such transaction price and the contract consideration is amortizedover the term of the contract using the effective interest method.
(4) If a contract includes two or more performance obligations, at contract commencement, the Company allocatesthe transaction price to each performance obligation on a relative standalone selling price basis.
3. Methods of revenue recognition
The Company is primarily engaged in the sale of PCBs, LED display devices, touch panels and LCMs, precisioncomponents and other products, the revenues from which constitute performance obligations to be satisfied at apoint in time. Revenue from sale of products on the domestic market is recognized when the Company has deliveredthe products to the agreed place of delivery which has been accepted by the customer, has received or has a presentright to payment for the products, and it is probable that the economic benefits associated with the transaction willflow to the Company. Revenue from sale of products on the overseas market is recognized when the productsdelivered by the Company pursuant to the contract have been cleared through customs, and the Company hasreceived the relevant export declaration form and bill of lading, has received or has a present right to payment forthe products, and it is probable that the economic benefits associated with the transaction will flow to the Company.Different methods of revenue recognition and measurement for the same business type adopts different businessmodels.
38. Contract costs
Contract acquisition costs, i.e. the incremental cost of acquiring a contract, are recognized as an asset if they areexpected to be recovered, and if the amortization period is no more than one year, are directly recorded in profit orloss in the period in which they are incurred.Contract performance costs, i.e. the costs of fulfilling a contract, are recognized as an asset if they are not addressedby the standards on inventories, fixed assets and intangible assets and meet all of the following conditions:
1. the costs relate directly to a contract or to an anticipated contract, including direct labor, direct material,manufacturing costs (or similar costs), costs that are explicitly chargeable to the relevant customer under the contractand other costs incurred solely in connection with the contract.
2. the costs enhance the resources of the Company that will be used in satisfying the performance obligations in thefuture; and
3. the costs are expected to be recovered.
The assets related to contract costs are amortized on the same basis as the recognition of revenues from goods orservices related to such assets and recognized in profit or loss.The portion of the carrying value of an asset related to contract costs in excess of the remaining considerationreceivable from the transfer of goods or services related to such asset less the estimated costs that are expected tobe incurred is recognized as an impairment loss. If, as a result of changes in the factors of impairment in the previousperiods, the remaining consideration receivable from the transfer of goods or service related to such asset less theestimated costs that are expected to be incurred exceeds the carrying value of such asset, the impairment loss isreversed through profit or loss, provided that the carrying value of the reversed asset shall not exceed its carryingvalue at the reversal date assuming such impairment loss were not recognized.
39. Government grants
1. Government grants are recognized if (i) the Company meets the conditions attached to the government grants;and (ii) the Company will receive the government grants. Government grants in the form of monetary assets aremeasured at the amount received or receivable. Government grants in the form of non-monetary assets are measuredat fair value, or if their fair value is unavailable, at a nominal amount.
2. Determination and accounting treatment of government grants related to assetsGovernment grants related to assets are government grants which are offered for purchasing, constructing orotherwise acquiring long-term assets as provided by the applicable government documents, or in the absence ofsuch express provision in the applicable government documents, whose primary condition is that the Companyshould purchase, construct or otherwise acquire long-term assets. Government grants related to assets are offsetagainst the carrying value of the relevant assets or recognized as deferred income. Government grants related toassets recognized as deferred income are included in profit or loss over the service life of the relevant assets on areasonable and systemic basis. Government grants measured at nominal amount are directly recognized in profit orloss. In case of a sale, transfer, retirement or damage of the relevant assets before the end of the intended servicelife, the balance of the unallocated deferred income is transferred to profit or loss for the period in which the assetsare disposed of.
3. Determination and accounting treatment of government grants related to incomeGovernment grants related to income are government grants other than those related to assets. Government grantsrelated to both assets and income where it is difficult to make a distinction between the portion related to assets andthe portion related to income are wholly classified as government grants related to income. Government grants
related to income as compensation for expenses or losses to be incurred in subsequent periods are recognized asdeferred income and in the period for recognizing the relevant costs, expenses or losses, included in profit or lossor offset against the relevant costs. Government grants related to income as compensation for expenses or lossesalready incurred are directly included in profit or loss or offset against the relevant costs.
4. Government grants related to day-to-day operations of the Company are recognized in other income or offsetagainst the relevant costs and expenses depending on the nature of economic business. Government grants notrelated to day-to-day operations of the Company are recognized in non-operating revenues or expenses.
5. Accounting treatment of policy loan interest subsidy
If the financial authority directly appropriates any interest subsidy to the Company, the interest subsidy is recognizedas a reduction in the borrowing cost.
40. Deferred tax assets and deferred tax liabilities
1. The difference between the tax base of an asset or liability and its carrying value, or in case of an item notrecognized as an asset or liability whose tax base can be determined according to the applicable tax law, thedifference between its tax base and carrying value, is recognized as a deferred tax asset or deferred tax liabilityaccording to the tax rate applicable to the period in which the asset or liability is expected to be recovered or settled.
2. Deferred tax assets are recognized to the extent of the amount of income tax payable that will be available infuture periods against which deductible temporary differences are deductible. At the balance sheet date, deferredtax assets not recognized in previous periods are recognized if there’s conclusive evidence that it is probable thatsufficient taxable income will be available in future periods against which the deductible temporary differences aredeductible.
3. At the balance sheet date, the carrying value of deferred tax assets is reviewed and written down to the extent thatit is no longer probable that sufficient taxable income will be available in future periods to allow the benefit of thedeferred tax assets to be utilized. If it is probable that sufficient taxable income will be available, the amount ofwrite-down is reversed.
4. The income taxes and deferred income taxes are included in profit or loss as income tax expenses or gains, exceptthe income taxes arising from any: (i) business combination; or (ii) transaction or event directly recognized inowners’ equity.
5. Deferred income tax assets and deferred income tax liabilities are offset and presented on a net basis if: (i) theCompany has a legal right to settle current tax assets and current tax liabilities on a net basis; and (ii) the deferred
tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority on either the sametaxable entity or different taxable entities which intend either to settle current tax assets and current tax liabilitieson a net basis or to realize the assets and liabilities simultaneously, in each future period in which significantamounts of deferred tax assets or liabilities are expected to be reversed.
41. Leases
(1) Accounting treatment of leases under which the Company is lessee
1. The Company as the lessee:
At the lease commencement date, a lease that has a lease term of 12 months or less and does not contain a purchaseoption is a short-term lease. A lease of an asset with a low value when new is a lease of a low-value asset. Wherethe Company subleases or expects to sublease a leased asset, the original lease is not classified as a lease of a low-value asset.Except short-term leases and leases of low-value assets, at the lease commencement date, the Company recognizesright-of-use assets and lease liabilities for the lease.
(1) Right-of-use assets
A right-of-use asset is a lessee’s right to use an asset over the life of a lease.At the lease commencement date, a right-of-use asset is initially measured at cost, which comprises: (i) the amountof the lease liability initially measured; (ii) any lease payments made at or before the commencement date, less anylease incentives received; (iii) any initial direct costs incurred by the lessee; and (iv) estimated costs to be incurredby the lessee in dismantling and removing the underlying asset, restoring the site on which it is located or restoringthe underlying asset to the condition required by the terms and conditions of the lease.The Company depreciates the right-of-use assets using the straight-line method. If it is reasonable to be certain thatthe ownership of an underlying asset can be acquired by the end of the lease term, the Company depreciates theright-of-use asset over its remaining useful life. Otherwise, the Company depreciates the right-of-use asset over theshorter of the lease term and its remaining useful life.
(2) Lease liabilities
At the lease commencement date, the Company measures a lease liability at the present value of the lease paymentsthat have not been paid at that date. The present value of lease payments is determined using the interest rate implicitin the lease as the discount rate. If that rate cannot be readily determined, the lessee’s incremental borrowing rate isused. The difference between the lease payments and their present value is unrecognized financing costs. Interest
expenses are measured for each period within the lease term using the discount rate for determining the presentvalue of lease payments, and recognized in profit or loss. Variable lease payments not included in the measurementof lease liabilities are recognized in profit or loss in the period during which they are incurred.At the lease commencement date, if there are changes in the in-substance fixed lease payments, amounts expectedto be payable under residual value guarantee, the index or rate used to determine the lease payments, the result ofan assessment of purchase option, renewal option or termination option or the actual exercise of such options, theCompany re-measures the lease liability based on the present value of lease payments as adjusted, and adjusts thecarrying value of the right-of-use assets accordingly. If the carrying value of the right-of-use asset is reduced to zero,but the lease liability needs to be further reduced, the balance is recognized in profit or loss.
(2) Accounting treatment of leases under which the Company is lessor
2. The Company as the lessor:
At the lease commencement date, the Company classifies a lease that transfers substantially all the risks and rewardsincidental to ownership of an underlying asset to the lessee as a finance lease, and all other leases as operating leases.
(1) Operating lease
Lease receipts are recognized as lease income using the straight-line method over the lease term. Initial direct costsincurred are capitalized, amortized on the same basis as the recognition of lease income, and recognized in profit orloss by installments. Variable lease payments related to the operating lease which are not included in the leasereceipts are recognized in profit or loss in the period during which they are incurred.
(2) Finance lease
At the lease commencement date, the Company recognizes the finance lease payments receivable based on the netinvestment in the lease (equal to the sum of unguaranteed residual value and the present value of lease receipts thatare not received at the lease commencement date and discounted using the Company’s incremental interest rate),and derecognizes the assets held under the finance lease. The Company calculates and recognizes interest incomeusing the interest rate implicit in the lease over the lease term.Variable lease payments that are not included in the measurement of the net investment in a lease are recognized inprofit or loss when they are incurred.
3. Sale and leaseback
(1) The Company as lessee
In accordance with CASBE 14 - Revenue, the Company assesses and determines whether the transfer of any assetin a sale and leaseback transaction should be accounted for as a sale of that asset.
If the transfer of an asset is accounted for as a sale of the asset, the Company measures the right-of-use asset arisingfrom the leaseback at the proportion of the original carrying value of the asset that relates to the right of use retainedby the Company. Accordingly, the Company recognizes only the amount of any gain or loss that relates to the rightstransferred to the lessor.Otherwise, the Company continues the recognition of the transferred asset, and recognizes a financial liability equalto the amount of transfer proceeds in accordance with CASBE 22 - Financial Instruments: Recognition andMeasurement at the same time.
(2) The Company as lessor
In accordance with CASBE 14 - Revenue, the Company assesses and determines whether the transfer of any assetin a sale and leaseback transaction should be accounted for as a sale of that asset.If the transfer of an asset is accounted for as a sale of the asset, the Company accounts for the purchase of assets inaccordance with other applicable standards, and accounts for the lease of assets in accordance with CASBE 21 -Leases.Otherwise, the Company does not recognize the transferred asset, and instead recognizes a financial asset equal tothe amount of transfer proceeds in accordance with CASBE 22 - Financial Instruments: Recognition andMeasurement.
42. Other Significant accounting policies and accounting estimates
1. Basis for the adoption of hedge accounting and its accounting treatment
(1) Cash flow hedge.
(2) A hedging relationship qualifies for hedge accounting if all of the following conditions are met: (i) the hedgingrelationship consists only of eligible hedging instruments and eligible hedged instruments; (ii) at the commencementof the hedge there is formal designation of hedging instruments and hedged item, and documentation of the hedgingrelationship and the Company’s risk management objective and strategy for undertaking the hedge; and (iii) thehedging relationship meets the hedging effectiveness requirements.The Company recognizes that the hedging relationship meets effectiveness requirements if all of the followingconditions are met: (i) there is an economic relationship between the hedged item and the hedging instruments; (ii)the effect of credit risk does not dominate the value changes that result from the economic relationship between thehedged item and the hedging instruments; and (iii) the hedge ratio of the hedging relationship is the same as theratio of the quantity of the hedged item that the Company actually hedges to the number of hedging instruments that
the Company actually uses to hedge such hedged item, but does not reflect an imbalance between the weightings ofthe hedged item and the hedging instrument.The Company assesses whether a hedging relationship meets the hedge effectiveness requirements atcommencement and on an ongoing basis. If a hedging relationship ceases to meet the hedge effectivenessrequirement relating to the hedge ratio but the risk management objective for that designated hedging relationshipremains the same, the hedging relationship will be rebalanced.
(3) Hedge accounting
1) Fair value hedge
① The gain or loss on a hedging instrument is recognized in profit or loss (or other comprehensive income, if thehedging instrument hedges a non-trading equity instrument (or a component thereof) at fair value through othercomprehensive income).
② The gain or loss on a hedged item arising from risk exposure is recognized in profit or loss, with a correspondingadjustment to the book balance of the hedged item not measured at fair value. If the hedged item is a financial asset(or a component thereof) that is measured at fair value through other comprehensive income in accordance withArticle XVIII of CASBE 22 “Financial Instruments: Recognition and Measurement”, the gain or loss arising fromthe risk exposure on the hedged item is recognized in profit or loss, without adjusting its book balance which hasalready been measured at fair value; if the hedged item is a non-trading equity instrument (or a component thereof)for which the Company has elected to present changes at fair value through other comprehensive income, the gainor loss arising from the risk exposure on the hedged item is recognized in profit or loss, without adjusting its bookbalance which has already been measured at fair value.When a hedged item is an unrecognized firm commitment (or a component thereof), the cumulative change in fairvalue of the hedged item subsequent to its designation is recognized as an asset or a liability with a correspondinggain or loss recognized in profit or loss. When a firm commitment is performed to acquire an asset or assume aliability, the initial book balance of the asset or the liability is adjusted to include the cumulative change in fair valueof the hedged item that was previously recognized.For a hedged item that is a financial instrument (or a component thereof) measured at amortized cost, any adjustmenton the book balance of the hedged item is amortized to profit or loss based on a recalculated effective interest rateat the date that amortization begins. For a financial asset (or a component thereof) that is a hedged item and measuredat fair value through other comprehensive income in accordance with Article XVIII of CASBE 22 “Financial
Instruments: Recognition and Measurement”, the cumulative gain or loss previously recognized thereon isamortized in the same manner, and recognized in profit or loss, without adjusting its book balance.
2) Cash flow hedges
① The portion of the gain or loss on a hedging instrument that is determined to be an effective hedge is recognizedin other comprehensive income as cash flow hedge reserve, while the ineffective portion is recognized in profit orloss. The cash flow hedge reserve is recognized at the lower of the following (in absolute amount): (i) the cumulativegain or loss on the hedging instrument from the commencement of the hedge; and (ii) the cumulative change in thepresent value of the estimated future cash flows of the hedged item from the commencement of the hedge.
② If a hedged forecast transaction subsequently results in the recognition of a non-financial asset or non-financialliability, or a hedged forecast transaction for a non-financial asset or non-financial liability becomes a firmcommitment for which fair value hedge accounting is applied, the Company transfers out the amount of cash flowhedge reserve previously recognized in other comprehensive income and includes it in the initial cost of the assetor the liability.
③ For other cash flow hedges, the amount of cash flow hedge reserve previously recognized in other comprehensiveincome is transferred to profit or loss in the same period the hedged forecast sale affects profit or loss.
3) Hedges of a net investment in a foreign operation
The portion of the gain or loss on a hedging instrument that is determined to be an effective hedge is recognized inother comprehensive income and reclassified from other comprehensive income into profit or loss on the disposalof the foreign operation, while the ineffective portion is recognized in profit or loss.
2. Accounting treatment related to share repurchase
When the Company repurchases its shares for the purpose of reducing its registered capital, rewarding its employeesor otherwise, if the purchased shares are to be held as treasury shares, the treasury shares are recorded at the amountactually paid and the relevant filing procedures are performed; if the repurchased shares are to be retired, thedifference between the total book value of the shares retired and the amount actually paid therefore is recognized asa reduction in capital reserve, and if the capital reserve is not sufficient to absorb the difference, the remainingbalance is charged against the retained earnings. If the repurchased shares are granted to the employees as equity-settled share-based payments, the purchase price paid by the employees upon exercise of their rights is recognizedas a reduction in the cost of the relevant treasury shares vested in the employees and capital reserve (other capitalreserve) accumulated within the vesting period, with a corresponding adjustment to capital reserve (share premium).
43. Significant changes in accounting policies and accounting estimates
(1) Significant changes in accounting policies
□Applicable ?N/A
(2) Changes in significant accounting estimates
□Applicable ?N/A
(3) Adjustment of the opening balance of related financial statement items due to the initial adoption of new accountingstandards since 2024
□Applicable ?N/A
VI. Taxation
1. Main categories of taxes and tax rates
| Category of tax | Tax base | Tax rate |
| Value-added tax | The output tax is calculated based on revenue from sales of goods or rendering of services in accordance with the tax law, net of the input tax deductible in the current period | 13%, 6% or 7%-25% (for the Company’s overseas subsidiaries) |
| Urban maintenance and construction tax | Amount of turnover tax actually paid | 5% or 7% (China) |
| Enterprise income tax | Amount of taxable income | 15%, 16.50%, 25%, 0, 21%, 0.75%-8.84%, 17%, 10%, 20%, 20.6%, 24% or 30% |
| Property tax | If levied on the basis of price, 1.2% * 70% of the original value of the property; if levied on the basis of rental, 12% of the lease income | 1.2% or 12% (China) |
| Education surcharge | Amount of turnover tax actually paid | 3% (China) |
| Local education surcharge | Amount of turnover tax actually paid | 2% (China) |
Different rates of enterprise income tax applicable to the taxpayers:
| Taxpayer | Income tax rate |
| The Company, Yongchuang Tech, Mutto Optronics, MFLEX Yancheng, Yancheng Dongshan, Dongguan Dongshan Precision Manufacturing Co., Ltd., RF Top Electronic, Suzhou Chengjia, Yancheng Mutto Optronics Science and Technology Co., Ltd. and Suzhou Dongdai Electronic Tech Co Ltd. | 15.00% |
| Hong Kong Dongshan and other companies incorporated in Hong Kong | 16.50% |
| Mutto Optronics Group Limited, Mflex Delaware, Inc., The Dii Group (BVI) Co. Limited | 0 |
| Multi-Fineline Electronix, Inc. and other companies incorporated in the United States | Federal corporate income tax rate, 21%; state corporate income tax rate, 0.75%-8.84% |
| Multi-Fineline Electronix Singapore Ptd. Ltd. and other | 17% (Singapore) |
| companies incorporated in Singapore | |
| Multek Technologies Limited | 15% (enjoying an 80% tax exemption) |
| Multek Technology Sweden AB | 20.6% (Sweden) |
| Multek Technology Malaysia SDN.BHD | 24% (Malaysia) |
| DSBJ Mexico, S.DER.L.DEC.V. and other companies in Mexico | 30.00% |
| Other taxpayers not listed above | 25.00% |
2. Tax preferences
1. Pursuant to the Notice on Publishing the Filing of the Third Batch of High and New Technology EnterprisesRecognized by the Recognition Authority of Jiangsu Province in 2022 issued by the Office of the National LeadingGroup for Recognition Management of High and New Technology Enterprises, the Company and its subsidiariesMutto Optronics, Yancheng Dongshan, Yancheng Dongshan Communication Technology Co., Ltd. and MFLEXYancheng passed the high and new technology enterprise qualification review with a term of three years from 2022to 2024, and therefore are subject to an enterprise income tax rate of 15% for the current period.
2. Pursuant to the Notice on Publishing the Filing of the Fourth Batch of High and New Technology EnterprisesRecognized by the Recognition Authority of Jiangsu Province in 2022 issued by the Office of the National LeadingGroup for Recognition Management of High and New Technology Enterprises, the Company’s wholly-ownedsubsidiary Suzhou Chengjia passed the high and new technology enterprise qualification review with a term of threeyears from 2022 to 2024, and therefore is subject to an enterprise income tax rate of 15% for the current period.
3. Pursuant to the Notice on Publishing the Filing the Second Batch of High and New Technology EnterprisesRecognized by the Recognition Authority of Jiangsu Province in 2022 issued by the Office of the National LeadingGroup for Recognition Management of High and New Technology Enterprises, the Company’s subsidiary EF TopElectronic passed the high and new technology enterprise qualification review with a term of three years from 2022to 2024, and therefore is subject to an enterprise income tax rate of 15% for the current period.
4. Pursuant to the Notice on the Filing of the Third Batch of High and New Technology Enterprises of JiangsuProvince in 2021, the Company’s wholly owned subsidiary Yancheng Mutto Optronics Science and TechnologyCo., Ltd. passed the high and new technology enterprise qualification review with a term of three years from 2021to 2023, and therefore is subject to an enterprise income tax rate of 15% for the current period.
5. The Company’s subsidiary Suzhou Dongdai Electronic Tech Co., Ltd. was listed in the Notice on Publishing theFiling of the Second Batch of High and New Technology Enterprises Recognized by the Recognition Authority ofJiangsu Province in 2023 issued by the Office of the National Leading Group for Recognition Management of High
and New Technology Enterprises, and temporarily paid enterprise income tax at the rate of 15% for the currentperiod.
6. Multek Technologies Limited is subject to a corporate income tax rate of 15% under the Mauritius CorporateIncome Tax Act, and as a global Class I company incorporated in Mauritius but operating abroad, enjoys an 80%tax exemption, so its effective corporate income tax rate is 3%.VII. Notes to Items of the Consolidated Financial Statements
1. Cash and bank balances
In RMB
| Item | Closing balance | Opening balance |
| Cash on hand | 426,978.14 | 559,941.39 |
| Bank deposits | 6,050,927,116.10 | 5,874,124,506.28 |
| Other cash and bank balances | 1,903,122,502.45 | 1,315,351,783.39 |
| Total | 7,954,476,596.69 | 7,190,036,231.06 |
| Incl.: Total amounts deposited abroad | 2,013,943,521.50 | 1,917,732,423.09 |
2. Financial assets held for trading
In RMB
| Item | Closing balance | Opening balance |
| Financial assets at fair value through profit or loss | 140,916,032.21 | 146,141,371.77 |
| Incl.: | ||
| Investments in equity instruments | 69,320,128.82 | 71,779,147.66 |
| Derivatives | 25,782,508.65 | 26,920,185.50 |
| Wealth management products | 45,813,394.74 | 47,442,038.61 |
| Total | 140,916,032.21 | 146,141,371.77 |
3. Derivative financial assets
4. Notes receivable
(1) Notes receivable by category
In RMB
| Item | Closing balance | Opening balance |
| Commercial acceptance bills | 25,236,878.62 | 3,407,623.49 |
| Total | 25,236,878.62 | 3,407,623.49 |
(2) Notes receivable by method of recognition of allowance for doubtful accounts
In RMB
| Item | Closing balance | Opening balance | ||||||||
| Book balance | Allowance for doubtful accounts | Carrying value | Book balance | Allowance for doubtful accounts | Carrying value | |||||
| Amount | % | Amount | % | Amount | % | Amount | % | |||
| Incl.: | ||||||||||
| Notes receivable with allowance recognized collectively | 25,363,697.11 | 100.00% | 126,818.49 | 0.50% | 25,236,878.62 | 3,424,747.23 | 100.00% | 17,123.74 | 0.50% | 3,407,623.49 |
| Incl.: | ||||||||||
| Commercial acceptance bills | 25,363,697.11 | 100.00% | 126,818.49 | 0.50% | 25,236,878.62 | 3,424,747.23 | 100.00% | 17,123.74 | 0.50% | 3,407,623.49 |
| Total | 25,363,697.11 | 100.00% | 126,818.49 | 0.50% | 25,236,878.62 | 3,424,747.23 | 100.00% | 17,123.74 | 0.50% | 3,407,623.49 |
Notes receivable with allowance for doubtful accounts recognized collectively by category name:
In RMB
| Name | Closing balance | ||
| Book balance | Allowance for doubtful accounts | % | |
| Group of commercial acceptance bills | 25,363,697.11 | 126,818.49 | 0.50% |
| Total | 25,363,697.11 | 126,818.49 | |
(3) Allowance for doubtful accounts recognized, recovered or reversed in the current period
Allowance for doubtful accounts recognized in the current period:
In RMB
| Item | Opening balance | Changes in the current period | Closing balance | |||
| Recognized | Recovered or reversed | Written off | Others | |||
| Allowance recognized collectively | 17,123.74 | 109,694.75 | 126,818.49 | |||
| Total | 17,123.74 | 109,694.75 | 126,818.49 | |||
(4) Notes receivable pledged at the end of the current period
(5) Notes receivable already endorsed or discounted but not yet become due at the balance sheet date
In RMB
| Item | Amount derecognized at the end of the current period | Amount not derecognized at the end of the current period |
| Commercial acceptance bills | 100,176,665.82 | 10,645,152.55 |
| Total | 100,176,665.82 | 10,645,152.55 |
5. Accounts receivable
(1) Accounts receivable by age
In RMB
| Age | Closing book balance | Opening book balance |
| Within 1 year (inclusive) | 6,476,338,431.58 | 7,522,771,106.29 |
| Within 6 months | 6,280,494,927.37 | 7,444,151,188.36 |
| 7-12 months | 195,843,504.21 | 78,619,917.93 |
| 1-2 years | 198,670,931.92 | 285,296,373.77 |
| 2-3 years | 110,639,020.27 | 16,989,211.39 |
| Over 3 years | 216,418,943.15 | 369,089,730.68 |
| 3-4 years | 27,223,572.75 | 275,176,513.49 |
| 4-5 years | 129,652,448.32 | 53,209,221.21 |
| Over 5 years | 59,542,922.08 | 40,703,995.98 |
| Total | 7,002,067,326.92 | 8,194,146,422.13 |
(2) Accounts receivable by method of recognition of allowance for doubtful accounts
In RMB
| Item | Closing balance | Opening balance | ||||||||
| Book balance | Allowance for doubtful accounts | Carrying value | Book balance | Allowance for doubtful accounts | Carrying value | |||||
| Amount | % | Amount | % | Amount | % | Amount | % | |||
| Accounts receivable with allowance recognized individually | 51,959,868.70 | 0.74% | 51,295,120.00 | 98.72% | 664,748.70 | 221,542,640.42 | 2.70% | 220,877,891.72 | 99.70% | 664,748.70 |
| Incl.: | ||||||||||
| Accounts | 6,950,107,458.22 | 99.26% | 315,923,437.57 | 4.55% | 6,634,184,020.65 | 7,972,603,781.71 | 97.30% | 260,103,758.36 | 3.26% | 7,712,500,023.35 |
| receivable with allowance recognized collectively | ||||||||||
| Incl.: | ||||||||||
| Total | 7,002,067,326.92 | 100.00% | 367,218,557.57 | 5.24% | 6,634,848,769.35 | 8,194,146,422.13 | 100.00% | 480,981,650.08 | 5.87% | 7,713,164,772.05 |
Accounts receivable with allowance for doubtful accounts recognized collectively by category name: Aging group
In RMB
| Item | Closing balance | ||
| Book balance | Allowance for doubtful accounts | % | |
| Within 6 months | 6,279,657,911.21 | 31,398,289.56 | 0.50% |
| 7-12 months | 194,400,946.27 | 9,720,047.31 | 5.00% |
| 1-2 years | 198,607,187.62 | 39,721,437.52 | 20.00% |
| 2-3 years | 105,894,374.87 | 63,536,624.92 | 60.00% |
| Over 3 years | 171,547,038.25 | 171,547,038.25 | 100.00% |
| Total | 6,950,107,458.22 | 315,923,437.57 | |
(3) Allowance for doubtful accounts recognized, recovered or reversed in the current periodAllowance for doubtful accounts recognized in the current period:
In RMB
| Item | Opening balance | Changes in the current period | Closing balance | |||
| Recognized | Recovered or reversed | Written off | Others | |||
| Allowance recognized individually | 220,877,891.72 | 169,582,771.72 | 51,295,120.00 | |||
| Allowance recognized collectively | 260,103,758.36 | 55,819,679.21 | 315,923,437.57 | |||
| Total | 480,981,650.08 | 55,819,679.21 | 169,582,771.72 | 367,218,557.57 | ||
(4) Accounts receivable actually written off in the current period
In RMB
| Item | Amount written off |
| Accounts receivable actually written off | 169,582,771.72 |
Significant amount of accounts receivable written off:
In RMB
| Company name | Nature of account | Amount written off | Reason for write-off | Write-off procedure performed | Whether or not arising from related-party transactions |
| Dongguan Baofeng Intelligent Technology Co., Ltd. | Trade receivable | 169,582,771.72 | The company has gone bankrupt | Resolution of the Board of Directors | No |
| Total | 169,582,771.72 |
(5) Top 5 debtors in terms of closing balance of accounts receivable and contract assets
In RMB
| Company name | Closing balance of accounts receivable | Closing balance of contract assets | Total closing balance of accounts receivable and contract assets | % of total closing balance of accounts receivable and contract assets | Closing balance of allowance for doubtful accounts receivable and impairment of contract assets |
| Debtor 1 | 1,911,438,500.06 | 1,911,438,500.06 | 26.65% | 11,714,101.58 | |
| Debtor 2 | 577,064,900.41 | 577,064,900.41 | 8.05% | 2,885,324.50 | |
| Debtor 3 | 538,597,555.74 | 538,597,555.74 | 7.51% | 2,855,375.61 | |
| Debtor 4 | 299,842,469.82 | 299,842,469.82 | 4.18% | 3,201,911.90 | |
| Debtor 5 | 240,665,780.25 | 240,665,780.25 | 3.36% | 1,236,414.03 | |
| Total | 3,567,609,206.28 | 3,567,609,206.28 | 49.75% | 21,893,127.62 |
6. Contract assets
7. Accounts receivable financing
(1) Accounts receivable financing by category
In RMB
| Item | Closing balance | Opening balance |
| Banker’s acceptance bills | 199,435,267.61 | 290,477,095.22 |
| Total | 199,435,267.61 | 290,477,095.22 |
(2) Accounts receivable financing by method of recognition of allowance for doubtful accounts
In RMB
| Item | Closing balance | Opening balance | ||||||||
| Book balance | Allowance for doubtful accounts | Carrying value | Book balance | Allowance for doubtful accounts | Carrying value | |||||
| Amount | % | Amount | % | Amount | % | Amount | % | |||
| Incl.: | ||||||||||
| Account | 199,435, | 100.00% | 199,435, | 290,477, | 100.00% | 290,477, | ||||
| s receivable financing with allowance recognized collectively | 267.61 | 267.61 | 095.22 | 095.22 | ||||||
| Incl.: | ||||||||||
| Banker’s acceptance bills | 199,435,267.61 | 100.00% | 199,435,267.61 | 290,477,095.22 | 100.00% | 290,477,095.22 | ||||
| Total | 199,435,267.61 | 100.00% | 199,435,267.61 | 290,477,095.22 | 100.00% | 290,477,095.22 | ||||
(3) Allowance for doubtful accounts recognized, recovered or reversed in the current period
(4) Accounts receivable financing pledged at the end of the current period
In RMB
| Item | Amount pledged at the end of the current period |
| Banker’s acceptance bills | 85,726,047.96 |
| Total | 85,726,047.96 |
(5) Accounts receivable financing already endorsed or discounted but not yet become due at the balancesheet date
In RMB
| Item | Amount derecognized at the end of the current period | Amount not derecognized at the end of the current period |
| Banker’s acceptance bills | 603,549,039.91 | |
| Total | 603,549,039.91 |
(6) Accounts receivable financing actually written off in the current period
(7) Changes in accounts receivable financing and changes in fair value thereof during the current period
(8) Other information: As the acceptors of banker’s acceptance bills are commercial banks that have high credit ratings, banker’sacceptance bills are less likely to be dishonored when they become due. Therefore, the Company derecognizes the banker’s acceptancebills already endorsed or discounted. However, if such bills fail to be paid when they become due, the Company will assume joint andseveral liability to the holders thereof pursuant to the Law on Negotiable Instruments.
8. Other receivables
In RMB
| Item | Closing balance | Opening balance |
| Other receivables | 98,014,969.32 | 77,134,897.39 |
| Total | 98,014,969.32 | 77,134,897.39 |
(1) Interest receivable
(2) Dividends receivable
(3) Other receivables
1) Other receivables by nature
In RMB
| Nature of account | Closing book balance | Opening book balance |
| Loan and reserve fund | 15,378,309.21 | 3,008,693.20 |
| Security deposit | 25,167,459.15 | 24,179,943.43 |
| Temporary payment receivable and others | 72,158,116.83 | 63,320,215.31 |
| Total | 112,703,885.19 | 90,508,851.94 |
2) Other receivables by age
In RMB
| Age | Closing book balance | Opening book balance |
| Within 1 year (inclusive) | 98,010,801.76 | 71,736,165.38 |
| 1-2 years | 4,978,854.39 | 8,616,817.34 |
| 2-3 years | 847,477.39 | 2,464,429.36 |
| Over 3 years | 8,866,751.65 | 7,691,439.86 |
| 3-4 years | 5,122,829.15 | 3,078,691.14 |
| 4-5 years | 2,532,848.55 | 1,718,689.00 |
| Over 5 years | 1,211,073.95 | 2,894,059.72 |
| Total | 112,703,885.19 | 90,508,851.94 |
3) Other receivables by the method of recognition of allowance for doubtful accounts
?Applicable □N/A
In RMB
| Item | Closing balance | Opening balance | ||||||||
| Book balance | Allowance for doubtful accounts | Carrying value | Book balance | Allowance for doubtful accounts | Carrying value | |||||
| Amount | % | Amount | % | Amount | % | Amount | % | |||
| Other receivables with allowance recognized individu | 2,340,704.91 | 2.07% | 2,340,704.91 | 100.00% | 2,340,704.91 | 2.59% | 2,340,704.91 | 100.00% | ||
| ally | ||||||||||
| Incl.: | ||||||||||
| Other receivables with allowance recognized collectively | 110,363,180.28 | 97.92% | 12,348,210.96 | 11.19% | 98,014,969.32 | 88,168,147.03 | 97.41% | 11,033,249.64 | 12.51% | 77,134,897.39 |
| Incl.: | ||||||||||
| Total | 112,703,885.19 | 100.00% | 14,688,915.87 | 13.03% | 98,014,969.32 | 90,508,851.94 | 100.00% | 13,373,954.55 | 14.78% | 77,134,897.39 |
Other receivables with allowance for doubtful accounts recognized collectively: Aging group
In RMB
| Item | Closing balance | ||
| Book balance | Allowance for doubtful accounts | % | |
| Within 1 year | 98,010,801.76 | 4,900,540.09 | 5.00% |
| 1-2 years | 4,978,854.39 | 497,885.44 | 10.00% |
| 2-3 years | 847,477.39 | 423,738.70 | 50.00% |
| Over 3 years | 6,526,046.74 | 6,526,046.74 | 100.00% |
| Total | 110,363,180.28 | 12,348,210.96 | |
Basis for grouping: N/ARecognition of allowance for doubtful accounts in accordance with the general model of expected credit losses:
In RMB
| Allowance for doubtful accounts | Stage 1 | Stage 2 | Stage 3 | Total |
| 12-month expected credit loss | Lifetime expected credit loss (not credit impaired) | Lifetime expected credit loss (credit impaired) | ||
| Balance at January 1, 2024 | 3,586,808.28 | 861,681.73 | 8,925,464.54 | 13,373,954.55 |
| In the current period: | ||||
| - Transferred to stage 2 | -232,625.50 | 232,625.50 | ||
| - Transferred to stage 3 | -596,421.79 | 596,421.79 | ||
| Recognized | 1,546,357.31 | 355,176.18 | 1,901,533.49 | |
| Reversed | 586,572.17 | 586,572.17 | ||
| Balance at June 30, 2024 | 4,900,540.09 | 497,885.44 | 9,290,490.35 | 14,688,915.87 |
6) Top 5 debtors in terms of closing balance of other receivables
In RMB
| Company name | Nature of account | Closing balance | Age | % of total closing balance of other receivables | Closing balance of allowance for doubtful accounts |
| Debtor 1 | Government grants | 40,256,779.96 | Within 1 year | 35.72% | 2,012,839.00 |
| Debtor 2 | Temporary payment receivable and others | 9,860,000.00 | Within 1 year | 8.75% | 493,000.00 |
| Debtor 3 | Temporary payment receivable and others | 2,340,704.91 | Over 3 years | 2.08% | 2,340,704.91 |
| Debtor 5 | Security deposit | 2,000,000.00 | Within 1 year | 1.77% | 100,000.00 |
| Debtor 5 | Temporary payment receivable and others | 1,790,748.55 | Over 3 years | 1.59% | 1,790,748.55 |
| Total | 56,248,233.42 | 49.91% | 6,737,292.46 |
9. Advances to suppliers
(1) Advances to suppliers by age
In RMB
| Age | Closing balance | Opening balance | ||
| Amount | % | Amount | % | |
| Within 1 year | 59,905,077.54 | 87.31% | 72,605,597.90 | 91.00% |
| 1 to 2 years | 5,792,254.85 | 8.44% | 5,581,589.38 | 7.00% |
| 2 to 3 years | 1,349,652.39 | 1.97% | 21,100.35 | 0.03% |
| Over 3 years | 1,565,687.79 | 2.28% | 1,574,451.48 | 1.97% |
| Total | 68,612,672.57 | 79,782,739.11 | ||
Reason of failure to timely settle the significant advances to suppliers aged more than one year: N/A
(2) Top 5 suppliers in terms of closing balance of advances to suppliers
| Company name | Book balance (RMB) | % of the total balance of advances to suppliers |
| Supplier 1 | 9,872,977.95 | 14.39% |
| Supplier 2 | 5,034,321.86 | 7.34% |
| Supplier 3 | 4,605,111.16 | 6.71% |
| Supplier 4 | 3,624,803.07 | 5.28% |
| Supplier 5 | 3,294,993.67 | 4.80% |
| Subtotal | 26,432,207.71 | 38.52% |
10. Inventories
(1) Categories of inventories
In RMB
| Item | Closing balance | Opening balance | ||||
| Book balance | Inventory provision or allowance for impairment of contract | Carrying value | Book balance | Inventory provision or allowance for impairment of contract | Carrying value | |
| fulfilling costs | fulfilling costs | |||||
| Raw materials | 1,365,351,576.19 | 139,003,679.54 | 1,226,347,896.65 | 1,137,854,380.40 | 144,036,638.90 | 993,817,741.50 |
| Work in progress | 1,034,017,371.67 | 118,377,027.89 | 915,640,343.78 | 891,174,574.36 | 125,226,289.12 | 765,948,285.24 |
| Goods on hand | 4,509,675,210.28 | 460,556,843.37 | 4,049,118,366.91 | 4,974,174,253.58 | 449,989,021.71 | 4,524,185,231.87 |
| Circulating materials | 635,522.36 | 635,522.36 | 9,966,532.81 | 38,514.88 | 9,928,017.93 | |
| Total | 6,909,679,680.50 | 717,937,550.80 | 6,191,742,129.70 | 7,013,169,741.15 | 719,290,464.61 | 6,293,879,276.54 |
(2) Data resources recognized as inventories
(3) Inventory provision or allowance for impairment of contract fulfilling costs
In RMB
| Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance | ||
| Recognized | Others | Reversed or written off | Others | |||
| Raw materials | 144,036,638.90 | 12,814,882.09 | 16,485.51 | 17,864,326.96 | 139,003,679.54 | |
| Work in progress | 125,226,289.12 | 53,866.30 | 5,327.70 | 6,908,455.23 | 118,377,027.89 | |
| Goods on hand | 449,989,021.71 | 92,716,974.16 | 1,600,208.37 | 83,749,360.87 | 460,556,843.37 | |
| Circulating materials | 38,514.88 | 38,514.88 | ||||
| Total | 719,290,464.61 | 105,585,722.55 | 1,622,021.58 | 108,560,657.94 | 717,937,550.80 | |
| Item | Basis for determining the net realizable value | Reason for reversing the inventory provision | Reason for writing off the inventory provision |
| Raw materials | The net realizable value is the estimated selling price of finished goods less the estimated cost of completion, estimated selling expenses and related taxes. | The inventories for which an inventory provision was recognized at the beginning of the current period have been used. | The net realizable value is the estimated selling price of finished goods less the estimated cost of completion, estimated selling expenses and related taxes. |
| Work in progress | The net realizable value is the estimated selling price of finished goods less the estimated cost of completion, estimated selling expenses and related taxes. | The inventories for which an inventory provision was recognized at the beginning of the current period have been used. | The net realizable value is the estimated selling price of finished goods less the estimated cost of completion, estimated selling expenses and related taxes. |
| Goods on hand | The net realizable value is the estimated selling price of finished goods less the estimated selling | The inventories for which an inventory | The net realizable value is the estimated selling price of finished goods less the estimated selling expenses and related taxes. |
| expenses and related taxes. | provision was recognized at the beginning of the current period have been used. | ||
| Other circulating materials | The net realizable value is the estimated selling price of finished goods less the estimated cost of completion, estimated selling expenses and related taxes. | The inventories for which an inventory provision was recognized at the beginning of the current period have been used. | The net realizable value is the estimated selling price of finished goods less the estimated cost of completion, estimated selling expenses and related taxes. |
11. Assets held for sale
12. Non-current assets due within one year
13. Other current assets
In RMB
| Item | Closing balance | Opening balance |
| Cost of returned goods receivable | 29,097,919.47 | 29,832,976.30 |
| Deductible input tax | 517,975,447.98 | 340,312,673.44 |
| Prepaid enterprise income tax | 35,639,761.39 | 35,892,887.21 |
| Deferred expenses and others | 503,428,696.97 | 245,681,208.73 |
| Total | 1,086,141,825.81 | 651,719,745.68 |
14. Debt investments
15. Other debt investments
16. Investment in other equity instruments
In RMB
| Item | Opening balance | Income recognized in other comprehensive income in the current period | Loss recognized in other comprehensive income in the current period | Aggregate income recognized in other comprehensive income at the end of the current period | Aggregate loss recognized in other comprehensive income at the end of the current period | Dividend income recognized in the current period | Closing balance | Reason for designation as at fair value through other comprehensive income |
| Jiangsu Bohua Equity Investment Partnership (L.P.) | 150,000,000.00 | 150,000,000.00 |
| Hai Dixin Semiconductor (Nantong) Co., Ltd. | 21,322,110.00 | 21,322,110.00 | ||||||
| Hostar Intelligence Technology Co., Ltd. | 28,800,000.00 | 28,800,000.00 | ||||||
| Dyness Digital Energy Technology Co., Ltd. | 50,000,000.00 | 50,000,000.00 | ||||||
| Shinwu Optronics (Suzhou) Co., Ltd. | 22,035,000.00 | 22,035,000.00 | ||||||
| Jinan Moviebook Co., Ltd. | 6,000,000.00 | 10,000,000.00 | ||||||
| Shenzhen Ruoyu Technology Co., Ltd. | 0.00 | 1,500,000.00 | ||||||
| Total | 278,157,110.00 | 283,657,110.00 |
Reason for designation as an investment in equity instruments at fair value through other comprehensive income
1) Hai Dixin Semiconductor (Nantong) Co., Ltd. was established on April 6, 2012, with a registered capital of RMB36,152,329.00, inwhich the Company holds 10.2345% shares. In consideration that the Company has a close business relationship with Hai DixinSemiconductor (Nantong) Co., Ltd., the shares held by the Company in it will help the Company improve its business competenciesand the investment is not held for trading, the Company designated this investment as a financial asset at fair value through othercomprehensive income on January 1, 2019.
2) Jiangsu Bohua Equity Investment Partnership (L.P.) was established on September 27, 2021, with a registered capital of RMB3.3billion, and is primarily engaged in venture capital investment (in non-listed companies only). In consideration that this investmentwill bring a good return to the Company and provide the Company with opportunities to invest in premium fields and assets, and is notheld for trading, the Company designated this investment as a financial asset at fair value through other comprehensive income.
3) Hostar Intelligence Technology Co., Ltd. was established on April 2, 2011, with a registered capital of RMB42,660,000, in whichthe Company holds 3.038% shares. In consideration that the shares held by the Company in it will help the Company improve itsbusiness competencies, including procuring raw materials/equipment, and developing and strengthening market and sales teams, andthe investment is not held for trading, the Company designated this investment as a financial asset at fair value through othercomprehensive income in February 2023.
4) Dyness Digital Energy Technology Co., Ltd. was established on August 17, 2017, with a registered capital of RMB112,023,809, inwhich the Company holds 1.7016% shares. In consideration that the shares held by the Company in it will help the Company improveits business competencies and the investment is not held for trading, the Company designated this investment as a financial asset at fairvalue through other comprehensive income in March 2023.
5) Shinwu Optronics (Suzhou) Co., Ltd. was established on October 19, 2006, with a registered capital of RMB57,754,000, in whichthe Company holds 1.7169% shares. In consideration that the shares held by the Company in it will help the Company improve itsbusiness competencies and the investment is not held for trading, the Company designated this investment as a financial asset at fairvalue through other comprehensive income in May 2023.
6) Jinan Moviebook Co., Ltd. was established on September 6, 2019, with a registered capital of RMB10,000,000, in which theCompany holds 0.1995% shares. In consideration that the shares held by the Company in it will help the Company improve its businesscompetencies and the investment is not held for trading, the Company designated this investment as a financial asset at fair valuethrough other comprehensive income in October 2023.
7) Shenzhen Ruoyu Technology Co., Ltd. was established on April 13, 2023, with a registered capital of RMB5,229,300, in which theCompany holds 0.9678% shares. In consideration that the shares held by the Company in it will help the Company improve its businesscompetencies and the investment is not held for trading, the Company designated this investment as a financial asset at fair valuethrough other comprehensive income in January 2024.
17. Long-term receivables
(1) Particulars of long-term receivables
In RMB
| Item | Closing balance | Opening balance | Range of discount rate | ||||
| Book balance | Allowance for doubtful accounts | Carrying value | Book balance | Allowance for doubtful accounts | Carrying value | ||
| Security deposit for finance lease | 30,000,000.00 | 30,000,000.00 | 30,000,000.00 | 30,000,000.00 | |||
| Account receivable from Powerwave Technologies (Thailand) Co., Ltd. | 10,703,905.76 | 10,703,905.76 | 7.5 | ||||
| Total | 30,000,000.00 | 0.00 | 30,000,000.00 | 40,703,905.76 | 10,703,905.76 | 30,000,000.00 | |
(2) Long-term receivables by method of recognition of allowance for doubtful accounts
In RMB
| Item | Closing balance | Opening balance | ||||||||
| Book balance | Allowance for doubtful accounts | Carrying value | Book balance | Allowance for doubtful accounts | Carrying value | |||||
| Amount | % | Amount | % | Amount | % | Amount | % | |||
| Long-term receivables with allowance recognized individually | 10,703,905.76 | 100.00% | 10,703,905.76 | 100.00% | ||||||
| Incl.: | ||||||||||
| Incl.: | ||||||||||
| Total | 10,703,905.76 | 100.00% | 10,703,905.76 | 100.00% | ||||||
(3) Allowance for doubtful accounts recognized, recovered or reversed in the current period
(4) Long-term receivables actually written off in the current period
In RMB
| Company name | Nature of account | Amount written off | Reason for write-off | Write-off procedure performed | Whether or not arising from related-party transactions |
| Powerwave Technologies (Thailand) Co., Ltd. | Trade receivable | 10,703,905.76 | Bankrupt | Resolution of the Board of Directors | No |
| Total | 10,703,905.76 |
18. Long-term equity investments
In RMB
| Investee | Opening balance (carrying value) | Opening balance of allowance for impairment loss | Changes in the current period | Closing balance (carrying value) | Closing balance of allowance for impairment loss | |||||||
| Additional investment | Reduced investment | Investment income or loss under equity method | Adjustment to other comprehensive income | Other changes in equity | Declared cash dividends or profit distribution | Allowance for impairment loss | Others | |||||
| I. Joint ventures | ||||||||||||
| II. Associates | ||||||||||||
| Suzhou Toprun Electric Equipment Co., Ltd. | 19,335,028.62 | 51,487,204.05 | 19,928.38 | 19,354,957.00 | 51,487,204.05 | |||||||
| Shenzhen Nanfang Blog Technology Development Co., Ltd. | 17,507,056.47 | 17,507,056.47 | ||||||||||
| Shanghai Fu Shan Precision Manufacturing Co., Ltd. | ||||||||||||
| Suzhou LEGATE Intelligent Equipment Co., Ltd. | 23,507,176.15 | -709,687.28 | 22,797,488.87 | |||||||||
| Suzhou Dongcan Optoelectronics Technology Co., Ltd. | 3,797,258.35 | -447,415.62 | 3,349,842.73 | |||||||||
| Jiangsu Nangao Intelligent Equipment Innovation Center Co., Ltd. | 4,259,369.62 | -848,629.79 | 3,410,739.83 | |||||||||
| Jiaozuo Songyang Optoelectric Technology Co., Ltd. | 26,753,781.07 | -232,322.81 | 26,521,458.26 | |||||||||
| Suzhou Yongxin Jingshang Venture Capital Partnership (L.P.) | 25,915,794.06 | -709,084.04 | 25,206,710.02 | |||||||||
| ISOTEK MICROWAVE LIMITED | 8,539,424.61 | 8,539,424.61 | ||||||||||
| BVF (BVI) Holding L.P. | 32,358,873.17 | -355,578.43 | 32,003,294.74 | |||||||||
| Shanghai | 19,479 | - | 18,450 |
| Xinhuarui Semiconductor Technology Co., Ltd. | ,598.85 | 1,029,041.92 | ,556.93 | |||||||||
| Subtotal | 155,406,879.89 | 77,533,685.13 | -4,311,831.51 | 151,095,048.38 | 77,533,685.13 | |||||||
| Total | 155,406,879.89 | 77,533,685.13 | -4,311,831.51 | 151,095,048.38 | 77,533,685.13 |
19. Other non-current financial assets
20. Investment properties
(1) Investment properties at cost
?Applicable □N/A
In RMB
| Item | Buildings and structures | Land use right | Construction in progress | Total |
| I. Original value | ||||
| 1. Opening balance | 5,309,132.17 | 5,309,132.17 | ||
| 2. Increase | ||||
| (1) Acquired | ||||
| (2) Transferred from inventories/ fixed assets/ construction in progress | ||||
| (3) Increased due to business combinations | ||||
| 3. Decrease | ||||
| (1) Disposed | ||||
| (2) Other transfer-out | ||||
| 4. Closing balance | 5,309,132.17 | 5,309,132.17 | ||
| II. Accumulated depreciation and amortization | ||||
| 1. Opening balance | 4,270,291.91 | 4,270,291.91 | ||
| 2. Increase | 128,855.58 | 128,855.58 | ||
| (1) Recognized or amortized | 128,855.58 | 128,855.58 |
| 3. Decrease | ||||
| (1) Disposed | ||||
| (2) Other transfer-out | ||||
| 4. Closing balance | 4,399,147.49 | 4,399,147.49 | ||
| III. Allowance for impairment loss | ||||
| 1. Opening balance | ||||
| 2. Increase | ||||
| (1) Recognized | ||||
| 3. Decrease | ||||
| (1) Disposed | ||||
| (2) Other transfer-out | ||||
| 4. Closing balance | ||||
| IV. Carrying value | ||||
| 1. Closing carrying value | 909,984.68 | 909,984.68 | ||
| 2. Opening carrying value | 1,038,840.26 | 1,038,840.26 |
21. Fixed assets
In RMB
| Item | Closing balance | Opening balance |
| Fixed assets | 12,712,146,406.50 | 12,415,251,689.80 |
| Total | 12,712,146,406.50 | 12,415,251,689.80 |
(1) Particulars of fixed assets
In RMB
| Item | Buildings and structures | Machinery and equipment | Transport equipment | Office equipment and others | Total |
| I. Original value | |||||
| 1. Opening balance | 5,132,153,184.39 | 19,797,161,127.14 | 89,626,022.07 | 1,015,562,668.44 | 26,034,503,002.04 |
| 2. Increase | 387,957,174.36 | 907,581,238.65 | 9,432,828.66 | 5,972,832.65 | 1,310,944,074.32 |
| (1) Acquired | 1,712,132.71 | 2,878,066.00 | 3,322,825.22 | 7,913,023.93 | |
| (2) Transferred from construction in progress | 386,245,041.65 | 904,703,172.65 | 6,110,003.44 | 5,972,832.65 | 1,303,031,050.39 |
| (3) Increased due to business |
| combinations | |||||
| 3. Decrease | 411,187,089.76 | 8,330,663.66 | 33,762,120.41 | 453,279,873.83 | |
| (1) Disposed or retired | 410,687,089.76 | 8,330,663.66 | 33,762,120.41 | 452,779,873.83 | |
| (2) Transferred to construction in progress | 500,000.00 | 500,000.00 | |||
| 4. Closing balance | 5,520,110,358.75 | 20,293,555,276.03 | 90,728,187.07 | 987,773,380.68 | 26,892,167,202.53 |
| II. Accumulated depreciation | |||||
| 1. Opening balance | 2,220,275,673.46 | 10,602,887,524.16 | 62,223,497.82 | 716,522,202.74 | 13,601,908,898.18 |
| 2. Increase | 104,626,418.01 | 863,457,985.03 | 2,580,400.41 | 28,599,424.88 | 999,264,228.33 |
| (1) Recognized | 104,626,418.01 | 863,457,985.03 | 2,580,400.41 | 28,599,424.88 | 999,264,228.33 |
| 3. Decrease | 406,415,865.29 | 6,753,119.38 | 25,021,514.03 | 438,190,498.70 | |
| (1) Disposed or retired | 406,415,865.29 | 6,753,119.38 | 25,021,514.03 | 438,190,498.70 | |
| 4. Closing balance | 2,324,902,091.47 | 11,059,929,643.90 | 58,050,778.85 | 720,100,113.59 | 14,162,982,627.81 |
| III. Allowance for impairment loss | |||||
| 1. Opening balance | 4,570,236.72 | 12,078,207.03 | 693,970.31 | 17,342,414.06 | |
| 2. Increase | |||||
| (1) Recognized | |||||
| 3. Decrease | 304,245.84 | 304,245.84 | |||
| (1) Disposed or retired | 304,245.84 | 304,245.84 | |||
| 4. Closing balance | 4,570,236.72 | 11,773,961.19 | 693,970.31 | 17,038,168.22 | |
| IV. Carrying value | |||||
| 1. Closing carrying value | 3,190,638,030.56 | 9,221,851,670.94 | 32,677,408.22 | 266,979,296.78 | 12,712,146,406.50 |
| 2. Opening carrying value | 2,907,307,274.21 | 9,182,195,395.95 | 27,402,524.25 | 298,346,495.39 | 12,415,251,689.80 |
(2) Temporary idle fixed assets
(3) Fixed assets leased out under operating leases
(4) Fixed assets whose property title certificates have not yet been obtained
In RMB
| Item | Carrying value | Reason for not obtaining the property title certificate |
| Factory buildings of Multek | 62,075,953.78 | Pending review |
22. Construction in progress
In RMB
| Item | Closing balance | Opening balance |
| Construction in progress | 2,212,779,454.69 | 1,842,525,188.54 |
| Total | 2,212,779,454.69 | 1,842,525,188.54 |
(1) Particulars of construction in progress
In RMB
| Item | Closing balance | Opening balance | ||||
| Book balance | Allowance for impairment loss | Carrying value | Book balance | Allowance for impairment loss | Carrying value | |
| Multek 5G high-speed high-frequency and high-density PCB technology upgrading project | 20,138,126.54 | 20,138,126.54 | ||||
| FPC for new energy application and assembly project of MFLEX Yancheng | 1,983,936.00 | 1,983,936.00 | 15,994,322.82 | 15,994,322.82 | ||
| IC substrate project of Chaowei Microelectronics (Yancheng) Co., Ltd. | 33,983,145.33 | 33,983,145.33 | 75,645,464.25 | 75,645,464.25 | ||
| Large-sized die-casting project of Yancheng Dongchuang | 603,014,099.36 | 603,014,099.36 | 658,090,750.03 | 658,090,750.03 | ||
| Kunshan new energy manufacturing base-related project | 279,066,396.76 | 279,066,396.76 | 425,232,448.52 | 425,232,448.52 | ||
| Mexico new energy manufacturing base-related project | 28,554,302.12 | 28,554,302.12 | 999,896.91 | 999,896.91 | ||
| MFLEX Yancheng Phase II project | 300,859,918.91 | 300,859,918.91 | 35,619,454.33 | 35,619,454.33 | ||
| MFLEX Suzhou Guoxiang Phase II and other production expansion projects | 136,273,170.13 | 136,273,170.13 | 82,215,960.20 | 82,215,960.20 | ||
| LCM business unit | 46,535,180.88 | 46,535,180.88 | 46,535,180.88 | 46,535,180.88 | ||
| Installation equipment in progress and others | 408,745,775.13 | 408,745,775.13 | 482,053,584.06 | 482,053,584.06 | ||
| Plant infrastructure project of Multilayer Board (Thailand) Co. Ltd. | 373,763,530.07 | 373,763,530.07 | ||||
| Total | 2,212,779,454.69 | 2,212,779,454.69 | 1,842,525,188.54 | 1,842,525,188.54 | ||
(2) Changes in significant constructions in progress in the current period
In RMB
| Project | Budget | Opening balance | Increase | Amount transferred to fixed assets | Other decreases | Closing balance | % of project costs to the budget | Progress | Aggregate amount of capitalized interest | Incl.: Capitalized interest this year | Rate of interest capitalization this year | Source of funds |
| Large-sized | 1,500, | 658,09 | 260,60 | 270,19 | 45,485 | 603,01 | 88.37 | 88% | 其他 |
| die-casting project of Yancheng Dongchuang | 000,000.00 | 0,750.03 | 8,318.80 | 8,973.19 | ,996.28 | 4,099.36 | % | |||||
| Kunshan new energy manufacturing base-related project | 1,800,000,000.00 | 425,232,448.52 | 475,633,109.11 | 548,744,267.86 | 279,066,396.77 | 57.14% | 57.14% | 其他 | ||||
| Plant infrastructure project of Multilayer Board (Thailand) Co. Ltd. | 980,000,000.00 | 46,873,232.04 | 326,890,298.03 | 373,763,530.07 | 38.14% | 38.14% | 其他 | |||||
| Total | 4,280,000,000.00 | 1,130,196,430.59 | 1,063,131,725.94 | 818,943,241.05 | 45,485,996.28 | 1,255,844,026.20 |
23. Productive biological assets
24. Oil and gas assets
25. Right-of-use assets
(1) Particulars of right-of-use assets
In RMB
| Item | Buildings and structures | Machinery and equipment | Transportation equipment | Land | Total |
| I. Original value | |||||
| 1. Opening balance | 1,413,525,626.05 | 30,676,878.28 | 345,470.00 | 93,200,186.63 | 1,537,748,160.96 |
| 2. Increase | 56,655,079.96 | 56,655,079.96 | |||
| (1) Leased | |||||
| (2) Transferred from construction in progress | 56,655,079.96 | 56,655,079.96 | |||
| (3) Differences in translation of foreign currency financial statements | |||||
| (4) Increased due to business combinations | |||||
| 3. Decrease |
| 4. Closing balance | 1,470,180,706.01 | 30,676,878.28 | 345,470.00 | 93,200,186.63 | 1,594,403,240.92 |
| II. Accumulated depreciation | |||||
| 1. Opening balance | 276,837,664.69 | 971,434.50 | 269,898.56 | 7,001,112.38 | 285,080,110.13 |
| 2. Increase | 38,740,709.64 | 976,341.61 | 70,664.33 | 741,298.38 | 40,529,013.96 |
| (1) Recognized | 38,740,709.64 | 976,341.61 | 70,664.33 | 741,298.38 | 40,529,013.96 |
| (2) Differences in translation of foreign currency financial statements | |||||
| (3) Increased due to business combinations | |||||
| 3. Decrease | |||||
| (1) Disposed | |||||
| 4. Closing balance | 315,578,374.33 | 1,947,776.11 | 340,562.89 | 7,742,410.76 | 325,609,124.09 |
| III. Allowance for impairment loss | |||||
| 1. Opening balance | |||||
| 2. Increase | |||||
| (1) Recognized | |||||
| 3. Decrease | |||||
| (1) Disposed | |||||
| 4. Closing balance | |||||
| IV. Carrying value | |||||
| 1. Closing carrying value | 1,154,602,331.67 | 28,729,102.17 | 4,907.11 | 85,457,775.88 | 1,268,794,116.83 |
| 2. Opening carrying value | 1,136,687,961.35 | 29,705,443.78 | 75,571.44 | 86,199,074.26 | 1,252,668,050.83 |
26. Intangible assets
(1) Particulars of intangible assets
In RMB
| Item | Land use right | Patent | Unpatented technology | Software | Trademark and patent | Development costs | Customer resources | Total |
| I. Original value | ||||||||
| 1. Opening balance | 629,094,585.89 | 362,386,608.26 | 154,718,885.76 | 6,733,029.45 | 207,803,629.23 | 1,360,736,738.59 | ||
| 2. Increase | 152,663,100.95 | 29,897,338.67 | 2,205.05 | 182,562,644.67 | ||||
| (1) Acquired | 2,247,856.62 | 140,357.33 | 2,205.05 | 2,390,419.00 | ||||
| (2) Internal R&D | ||||||||
| (3) Increased due to business combinations | ||||||||
| (4) Differences in translation of foreign currency financial statements | ||||||||
| (5) Transferred from construction in progress | 450,959.93 | 29,756,981.34 | 30,207,941.27 | |||||
| (6) Transferred from inventories | 149,964,284.40 | 149,964,284.40 | ||||||
| 3. Decrease | 2,623,545.40 | 2,623,545.40 | ||||||
| (1) Disposed | 2,623,545.40 | 2,623,545.40 | ||||||
| 4. Closing balance | 781,757,686.84 | 389,660,401.53 | 154,721,090.81 | 6,733,029.45 | 207,803,629.23 | 1,540,675,837.86 | ||
| II. Accumulated amortization | ||||||||
| 1. Opening balance | 100,086,780.52 | 271,520,237.29 | 99,655,603.59 | 6,733,029.45 | 19,048,666.01 | 497,044,316.86 | ||
| 2. Increase | 6,355,266.43 | 26,327,089.29 | 7,461,326.71 | 10,390,181.46 | 50,533,863.89 | |||
| (1) Recognized | 6,355,275.02 | 26,163,532.69 | 5,532,748.31 | 10,390,181.46 | 48,441,737.48 |
| (2) Differences in translation of foreign currency financial statements | -8.59 | 163,556.60 | 1,928,578.40 | 2,092,126.41 | ||||
| 3. Decrease | 2,623,545.40 | 2,623,545.40 | ||||||
| (1) Disposed | 2,623,545.40 | 2,623,545.40 | ||||||
| 4. Closing balance | 106,442,046.95 | 295,223,781.18 | 107,116,930.30 | 6,733,029.45 | 29,438,847.47 | 544,954,635.35 | ||
| III. Allowance for impairment loss | ||||||||
| 1. Opening balance | ||||||||
| 2. Increase | ||||||||
| (1) Recognized | ||||||||
| 3. Decrease | ||||||||
| (1) Disposed | ||||||||
| 4. Closing balance | ||||||||
| IV. Carrying value | ||||||||
| 1. Closing carrying value | 675,315,639.89 | 94,436,620.35 | 47,604,160.51 | 178,364,781.76 | 995,721,202.51 | |||
| 2. Opening carrying value | 529,007,805.37 | 90,866,370.97 | 55,063,282.17 | 188,754,963.22 | 863,692,421.73 |
27. Goodwill
(1) Original value of goodwill
In RMB
| Investee or event giving rise to goodwill | Opening balance | Increase | Decrease | Closing balance | ||
| Arising from business | Disposed | |||||
| combination | ||||||
| MFLEX | 1,770,752,915.84 | 1,770,752,915.84 | ||||
| Multek | 179,329,062.90 | 179,329,062.90 | ||||
| Mutto Optronics | 153,957,647.78 | 153,957,647.78 | ||||
| RF Top Electronic | 135,001,580.53 | 135,001,580.53 | ||||
| Aranda asset group | 50,502,380.96 | 3,546,900.03 | 46,955,480.93 | |||
| Total | 2,289,543,588.01 | 3,546,900.03 | 2,285,996,687.98 |
(2) Allowance for impairment of goodwill
In RMB
| Investee or event giving rise to goodwill | Opening balance | Increase | Decrease | Closing balance | ||
| Recognized | Disposed | |||||
| Mutto Optronics | 67,475,733.00 | 67,475,733.00 | ||||
| Aranda asset group | 4,000,219.86 | 4,000,219.86 | ||||
| RF Top Electronic | 8,868,134.17 | 8,868,134.17 | ||||
| Total | 80,344,087.03 | 80,344,087.03 | ||||
28. Long-term deferred expenses
In RMB
| Item | Opening balance | Increase | Amortization | Other decreases | Closing balance |
| Decoration costs of fixed assets and others | 866,872,191.21 | 167,557,702.44 | 117,420,434.00 | 917,009,459.65 | |
| Total | 866,872,191.21 | 167,557,702.44 | 117,420,434.00 | 917,009,459.65 |
29. Deferred tax assets/deferred tax liabilities
(1) Deferred tax assets not offset
In RMB
| Item | Closing balance | Opening balance | ||
| Deductible temporary differences | Deferred tax assets | Deductible temporary differences | Deferred tax assets | |
| Allowance for impairment of assets | 905,698,249.10 | 144,897,978.00 | 800,118,130.88 | 128,429,874.02 |
| Deductible losses | 2,937,798,262.67 | 441,891,903.19 | 2,579,402,663.68 | 389,544,407.25 |
| Fixed assets | 55,442,842.70 | 13,509,629.14 | 55,181,543.30 | 13,469,931.13 |
| Accrued expenses | 143,027,034.75 | 26,986,237.52 | 132,769,288.28 | 26,353,080.15 |
| Lease liabilities | 1,905,076,496.37 | 352,178,536.12 | 1,872,497,186.10 | 342,955,848.83 |
| Unrealized inter-company transactions | 169,486,981.33 | 43,076,495.86 | 255,979,699.52 | 59,652,829.61 |
| Provisions | 51,320,866.73 | 8,814,226.87 | 57,512,864.31 | 10,480,061.52 |
| Deferred income | 592,973,451.02 | 97,051,529.24 | 660,215,044.53 | 107,254,395.87 |
| Total | 6,760,824,184.67 | 1,128,406,535.94 | 6,413,676,420.60 | 1,078,140,428.38 |
(2) Deferred tax liabilities not offset
In RMB
| Item | Closing balance | Opening balance | ||
| Taxable temporary differences | Deferred tax liabilities | Taxable temporary differences | Deferred tax liabilities | |
| One-off deduction of depreciation of fixed assets | 2,225,022,467.78 | 454,213,334.23 | 1,588,082,312.80 | 318,338,339.27 |
| Accrued interest income and others | 71,640,514.11 | 15,285,676.57 | 86,995,017.26 | 18,917,600.59 |
| Right-of-use assets | 1,268,794,116.83 | 268,225,787.45 | 1,252,668,050.83 | 266,830,422.09 |
| Income tax payable due to increase in appraised value | 367,907,563.80 | 83,537,835.14 | 384,245,651.82 | 87,206,749.88 |
| Total | 3,933,364,662.52 | 821,262,633.39 | 3,311,991,032.71 | 691,293,111.83 |
(3) Deferred tax assets and deferred tax liabilities presented on a netting basis
In RMB
| Item | Closing offset amount of deferred tax assets and liabilities | Closing balance of deferred tax assets or liabilities after offset | Opening offset amount of deferred tax assets and liabilities | Opening balance of deferred tax assets or liabilities after offset |
| Deferred tax assets | 1,128,406,535.94 | 1,078,140,428.38 | ||
| Deferred tax liabilities | 821,262,633.39 | 691,293,111.83 |
(4) Unrecognized deferred tax assets
In RMB
| Item | Closing balance | Opening balance |
| Deductible temporary differences | 1,056,370,842.80 | 1,045,519,017.80 |
| Deductible losses | 844,548,985.58 | 470,774,420.57 |
| Total | 1,900,919,828.38 | 1,516,293,438.37 |
(5) Deductible losses on unrecognized deferred tax assets that will expire in the following years
In RMB
| Year | Closing balance | Opening balance | Remark |
| 2024 | 40,403,329.83 | 40,403,329.83 | |
| 2025 | 100,804,003.97 | 100,804,003.97 | |
| 2026 | 39,377,012.01 | 39,377,012.01 | |
| 2027 | 265,972,000.92 | 265,972,000.92 | |
| 2028 | 24,218,073.84 | 24,218,073.84 | |
| 2029 | 373,774,565.01 | ||
| Total | 844,548,985.58 | 470,774,420.57 |
30. Other non-current assets
In RMB
| Item | Closing balance | Opening balance | ||||
| Book balance | Allowance for impairment loss | Carrying value | Book balance | Allowance for impairment loss | Carrying value | |
| Deferred income – unrealized gain or loss on sale and leaseback | 23,294,287.43 | 23,294,287.43 | 26,662,462.41 | 26,662,462.41 | ||
| Prepayment for projects and equipment | 1,290,131,209.12 | 1,290,131,209.12 | 906,360,511.93 | 906,360,511.93 | ||
| Total | 1,313,425,496.55 | 1,313,425,496.55 | 933,022,974.34 | 933,022,974.34 | ||
31. Assets subject to restrictions on ownership or right of use
In RMB
| Item | Closing balance | Opening balance | ||||||
| Book balance | Carrying value | Type of restriction | Reason of restriction | Book balance | Carrying value | Type of restriction | Reason of restriction | |
| Cash and bank balances | 1,903,122,502.45 | 1,903,122,502.45 | Pledge | Security deposit for notes, etc. | 1,315,351,783.39 | 1,315,351,783.39 | Pledge | Security deposit for notes, etc. |
| Notes receivable | 115,000,000.00 | 115,000,000.00 | Pledge | Discounted and not mature | 130,000,000.00 | 130,000,000.00 | Pledge | Discounted and not mature |
| Fixed assets | 784,051,228.85 | 354,652,169.33 | Mortgage | Security for loans, sales and leaseback | 784,051,228.85 | 418,641,701.59 | Mortgage | Security for loans, sales and leaseback |
| Accounts receivable financing | 85,726,047.96 | 85,726,047.96 | Pledge | Pledge of notes | 172,685,965.02 | 172,685,965.02 | Pledge | Pledge of notes |
| Right-of-use assets | 1,594,403,240.92 | 1,268,794,116.83 | Mortgage | Finance lease | 1,535,413,001.39 | 1,252,668,050.83 | Mortgage | Finance lease |
| Accounts receivable | Pledge | Factoring | 96,168,092.66 | 96,168,092.66 | Pledge | Factoring | ||
| Total | 4,482,303,020.18 | 3,727,294,836.57 | 4,033,670,071.31 | 3,385,515,593.49 | ||||
32. Short-term borrowings
(1) Short-term borrowings by category
In RMB
| Item | Closing balance | Opening balance |
| Pledge loans | 235,613,134.92 | |
| Credit loans | 4,449,694,707.51 | 4,376,608,244.06 |
| Discounting and factoring of notes, letters of credit and accounts receivable | 919,885,049.02 | 779,491,972.95 |
| Total | 5,605,192,891.45 | 5,156,100,217.01 |
33. Financial liabilities held for trading
In RMB
| Item | Closing balance | Opening balance |
| Financial liabilities held for trading | 180,575,141.54 | 104,174,076.23 |
| Derivative financial liabilities | 180,575,141.54 | 104,174,076.23 |
| Total | 180,575,141.54 | 104,174,076.23 |
34. Derivative financial liabilities
35. Notes payable
In RMB
| Category | Closing balance | Opening balance |
| Commercial acceptance bills | 29,758,498.95 | 52,292,024.62 |
| Banker’s acceptance bills | 949,651,102.56 | 856,879,191.31 |
| Total | 979,409,601.51 | 909,171,215.93 |
36. Accounts payable
(1) Accounts payable
In RMB
| Item | Closing balance | Opening balance |
| Payment for materials | 5,996,719,613.96 | 6,672,185,481.42 |
| Payment for projects and equipment | 1,924,484,403.22 | 1,055,789,013.23 |
| Others | 432,273,312.96 | 311,132,681.87 |
| Total | 8,353,477,330.14 | 8,039,107,176.52 |
37. Other payables
In RMB
| Item | Closing balance | Opening balance |
| Other payables | 81,678,161.65 | 80,188,628.54 |
| Total | 81,678,161.65 | 80,188,628.54 |
(1) Interest payable
(2) Dividends payable
(3) Other payables
1) Other payables by nature
In RMB
| Item | Closing balance | Opening balance |
| Temporary receipts payable | 59,152,281.25 | 60,966,287.79 |
| Others | 22,525,880.40 | 19,222,340.75 |
| Total | 81,678,161.65 | 80,188,628.54 |
38. Advances from clients
39. Contract liabilities
In RMB
| Item | Closing balance | Opening balance |
| Trade payables | 47,925,820.33 | 28,982,676.07 |
| Total | 47,925,820.33 | 28,982,676.07 |
40. Employee benefits payable
(1) Employee benefits payable
In RMB
| Item | Opening balance | Increase | Decrease | Closing balance |
| I. Short-term benefits | 540,263,955.36 | 2,067,935,219.71 | 2,163,623,948.40 | 444,575,226.67 |
| II. Post-employment benefits - defined contribution plans | 12,915,025.32 | 165,965,238.70 | 165,425,941.66 | 13,454,322.36 |
| III. Termination benefits | 26,833,776.36 | 26,833,776.36 | ||
| Total | 553,178,980.68 | 2,260,734,234.77 | 2,355,883,666.42 | 458,029,549.03 |
(2) Short-term employee benefits
In RMB
| Item | Opening balance | Increase | Decrease | Closing balance |
| 1. Wages, bonuses, allowances and subsidies | 530,225,015.61 | 1,810,644,113.56 | 1,906,586,246.75 | 434,282,882.42 |
| 2. Staff welfare | 96,311,325.63 | 96,311,325.63 | ||
| 3. Social insurance contributions | 5,627,610.15 | 77,689,441.45 | 77,425,178.99 | 5,891,872.61 |
| Workers’ compensation insurance | 434,364.36 | 5,265,815.52 | 5,226,834.99 | 473,344.89 |
| Medical and maternity insurance | 5,193,245.79 | 72,423,625.93 | 72,198,344.00 | 5,418,527.72 |
| 4. Housing provident fund | 2,654,388.88 | 78,549,348.89 | 78,576,860.38 | 2,626,877.39 |
| 5. Trade union fund and employee education fund | 1,756,940.72 | 4,740,990.18 | 4,724,336.65 | 1,773,594.25 |
| Total | 540,263,955.36 | 2,067,935,219.71 | 2,163,623,948.40 | 444,575,226.67 |
(3) Defined contribution plans
In RMB
| Item | Opening balance | Increase | Decrease | Closing balance |
| 1. Basic pension insurance | 12,317,238.58 | 160,944,182.45 | 160,451,190.91 | 12,810,230.12 |
| 2. Unemployment insurance | 597,786.74 | 5,021,056.25 | 4,974,750.75 | 644,092.24 |
| Total | 12,915,025.32 | 165,965,238.70 | 165,425,941.66 | 13,454,322.36 |
41. Taxes payable
In RMB
| Item | Closing balance | Opening balance |
| Value-added tax | 10,814,735.87 | 15,906,070.71 |
| Enterprise income tax | 280,996,725.80 | 425,307,243.33 |
| Individual income tax | 4,948,949.06 | 7,474,547.48 |
| Urban maintenance and construction tax | 4,779,385.53 | 6,227,121.91 |
| Property tax | 8,921,684.24 | 8,141,101.87 |
| Stamp duty | 5,453,069.52 | 6,471,998.78 |
| Education surcharge | 2,331,092.68 | 2,672,083.16 |
| Land use tax | 509,660.39 | 735,915.46 |
| Local education surcharge | 1,478,493.79 | 1,781,388.79 |
| Other taxes | 2,042,249.75 | 858,735.34 |
| Total | 322,276,046.63 | 475,576,206.83 |
42. Liabilities held for trading
43. Non-current liabilities due within one year
In RMB
| Item | Closing balance | Opening balance |
| Long-term borrowings due within one year | 2,431,130,581.55 | 2,467,018,914.05 |
| Lease liabilities due within one year | 24,081,862.12 | 29,697,992.30 |
| Long-term payables due within one year | 21,380,400.00 | |
| Total | 2,476,592,843.67 | 2,496,716,906.35 |
44. Other current liabilities
In RMB
| Item | Closing balance | Opening balance |
| Output tax to be recognized | 2,348,195.83 | 6,556,017.38 |
| Total | 2,348,195.83 | 6,556,017.38 |
45. Long-term borrowings
(1) Long-term borrowings by category
In RMB
| Item | Closing balance | Opening balance |
| Pledge loans | 764,600,000.00 | 764,600,000.00 |
| Credit loans | 4,265,823,595.11 | 3,741,405,477.65 |
| Mortgage and guaranteed loans | 200,000,000.00 | 200,274,861.11 |
| Total | 5,230,423,595.11 | 4,706,280,338.76 |
46. Bonds payable
47. Lease liabilities
In RMB
| Item | Closing balance | Opening balance |
| Lease obligations payable | 2,084,072,600.33 | 2,098,735,814.79 |
| Less: Unrecognized financing costs | -203,077,966.08 | -255,936,620.99 |
| Total | 1,880,994,634.25 | 1,842,799,193.80 |
48. Long-term payables
In RMB
| Item | Closing balance | Opening balance |
| Long-term payables | 254,675,989.48 | 296,995,789.48 |
| Total | 254,675,989.48 | 296,995,789.48 |
(1 )Long-term payables by nature
In RMB
| Item | Closing balance | Opening balance |
| Share purchase price | 254,675,989.48 | 296,995,789.48 |
49. Long-term employee benefits payable
50. Provisions
In RMB
| Item | Closing balance | Opening balance | Reason |
| Product warranty | 20,667,870.06 | 30,235,945.92 | |
| Provision for sales return | 29,187,651.47 | 30,549,264.52 | |
| Total | 49,855,521.53 | 60,785,210.44 |
51. Deferred income
In RMB
| Item | Opening balance | Increase | Decrease | Closing balance | Reason |
| Government grants | 733,456,685.17 | 2,774,900.00 | 79,531,306.68 | 656,700,278.49 | Government grants |
| Total | 733,456,685.17 | 2,774,900.00 | 79,531,306.68 | 656,700,278.49 |
52. Other non-current liabilities
53. Share capital
In RMB
| Opening balance | +/- | Closing balance | |||||
| New issue | Bonus shares | Capitalization of capital reserve | Others | Subtotal | |||
| Total shares | 1,709,867,327.00 | 1,709,867,327.00 | |||||
54. Other equity instruments
55. Capital reserve
In RMB
| Item | Opening balance | Increase | Decrease | Closing balance |
| Capital premium (share premium) | 7,896,510,906.74 | 7,896,510,906.74 | ||
| Other capital reserve | 167,257,502.99 | 1,107,141.50 | 168,364,644.49 | |
| Total | 8,063,768,409.73 | 1,107,141.50 | 8,064,875,551.23 |
Other information (including a description on the change in the current period and the reasons of the change): The change in capitalreserve was due to share-based payments recognized under ESOPs in the current period.
56. Treasury shares
In RMB
| Item | Opening balance | Increase | Decrease | Closing balance |
| Treasury shares | 125,906,811.33 | 25,000,846.30 | 150,907,657.63 | |
| Total | 125,906,811.33 | 25,000,846.30 | 150,907,657.63 |
Other information (including a description on the change in the current period and the reasons of the change): The treasury shareswere increased in the reporting period due to share repurchase.
57. Other comprehensive income
In RMB
| Item | Opening balance | The current period | Closing balance | |||||
| Amount before tax | Less: Other comprehensive income reclassified to profit or loss | Less: Other comprehensive income reclassified to retained earnings | Less: Income tax expenses | Amount attributable to the parent after tax | Amount attributable to minor interest after tax | |||
| I. Other comprehensive income that cannot be reclassified to profit or loss | -350,000,000.00 | -350,000,000.00 | ||||||
| Change in fair value of investments in other equity instruments | -350,000,000.00 | -350,000,000.00 | ||||||
| II. Other comprehensive income that will be reclassified to profit or loss | -364,664,578.64 | -92,295,791.72 | -11,487,973.60 | 1,655,710.30 | -82,463,528.41 | -447,128,107.05 | ||
| Reserves for cash flow hedge | -17,554,493.64 | -82,627,441.66 | -11,487,973.60 | 1,655,710.30 | -72,795,178.35 | -90,349,671.99 | ||
| Differences in translation of foreign currency financial statements | -347,110,085.00 | -9,668,350.06 | -9,668,350.06 | -356,778,435.06 | ||||
| Total other comprehensive income | -714,664,578.64 | -92,295,791.72 | -11,487,973.60 | 1,655,710.30 | -82,463,528.41 | -797,128,107.05 | ||
58. Special reserve
59. Surplus reserve
In RMB
| Item | Opening balance | Increase | Decrease | Closing balance |
| Statutory surplus reserve | 184,866,869.73 | 184,866,869.73 | ||
| Total | 184,866,869.73 | 184,866,869.73 |
60. Retained profits
In RMB
| Item | Amount for the current period | Amount for the previous period |
| Balance of retained profits at the end of the previous period before adjustment | 9,025,095,529.05 | 7,297,404,445.02 |
| Opening balance of retained profits after adjustment | 9,025,095,529.05 | 7,297,404,445.02 |
| Add: Net profit attributable to owners of the parent | 560,600,936.27 | 1,964,525,269.65 |
| Less: Appropriation to statutory surplus reserve | 49,519,034.63 | |
| Dividends payable to the ordinary shareholders | 425,319,052.25 | 187,315,150.99 |
| Closing balance of retained profits | 9,160,377,413.07 | 9,025,095,529.05 |
61. Operating revenue and operating costs
In RMB
| Item | Amount for the current period | Amount for the previous period | ||
| Revenue | Cost | Revenue | Cost | |
| Primary business | 16,521,772,107.69 | 14,408,130,744.18 | 13,595,558,213.91 | 11,799,102,145.57 |
| Other business | 106,814,087.87 | 47,564,313.33 | 71,529,611.15 | 32,267,794.42 |
| Total | 16,628,586,195.56 | 14,455,695,057.51 | 13,667,087,825.06 | 11,831,369,939.99 |
62. Taxes and surcharges
In RMB
| Item | Amount for the current period | Amount for the previous period |
| Urban maintenance and construction tax | 39,773,020.05 | 16,034,842.60 |
| Education surcharge | 17,685,634.63 | 6,864,289.26 |
| Property tax | 15,390,414.84 | 10,133,715.20 |
| Land use tax | 957,701.07 | 856,124.48 |
| Vehicle and vessel tax | 346,386.74 | 310,255.48 |
| Stamp duty | 10,533,280.44 | 10,268,413.75 |
| Local education surcharge | 11,790,423.12 | 5,289,100.78 |
| Environmental protection tax | 837,678.42 | 79,472.62 |
| Total | 97,314,539.31 | 49,836,214.17 |
63. Administrative expenses
In RMB
| Item | Amount for the current period | Amount for the previous period |
| Employee benefits | 254,096,243.15 | 204,055,142.08 |
| Termination benefits | 26,833,776.36 | 10,512,978.52 |
| Depreciation and amortization | 78,433,107.26 | 57,376,174.57 |
| Consulting service fees | 35,623,428.59 | 28,580,878.83 |
| Office expenses | 17,832,051.29 | 13,373,346.20 |
| Entertainment expenses | 22,812,086.03 | 28,499,318.50 |
| Travel expenses | 8,598,359.09 | 12,731,400.90 |
| Rents | 5,215,929.06 | 9,290,906.49 |
| Repair costs | 12,620,656.93 | 8,956,548.70 |
| Taxes | 1,039,457.29 | 280,638.41 |
| Others | 50,826,923.33 | 53,407,334.78 |
| Total | 513,932,018.38 | 427,064,667.98 |
64. Selling expenses
In RMB
| Item | Amount for the current period | Amount for the previous period |
| Employee benefits | 108,354,693.68 | 101,518,619.94 |
| Sales service fees | 34,177,964.33 | 20,586,293.81 |
| Export charges | 12,199,315.29 | 13,465,877.87 |
| Travel expenses | 6,760,920.66 | 5,181,482.07 |
| Entertainment expenses | 10,223,544.60 | 10,223,544.60 |
| Sample expense | 20,130,408.96 | 15,351,017.61 |
| Others | 6,614,564.13 | 4,216,860.17 |
| Total | 198,461,411.65 | 170,543,696.07 |
65. R&D expenses
In RMB
| Item | Amount for the current period | Amount for the previous period |
| Materials | 284,790,576.60 | 171,995,246.32 |
| Labor costs | 267,132,170.20 | 221,188,241.37 |
| Depreciation | 45,587,062.83 | 38,704,246.34 |
| Others | 24,713,799.36 | 25,501,749.18 |
| Total | 622,223,608.99 | 457,389,483.21 |
66. Financial expenses
In RMB
| Item | Amount for the current period | Amount for the previous period |
| Interest expenses | 193,330,353.30 | 206,902,687.71 |
| Interest on leases and financing fees | 36,422,307.24 | 38,373,636.33 |
| Less: Interest income | 141,164,259.09 | 109,254,733.76 |
| Add: Exchange loss | -125,881,081.93 | -187,351,446.58 |
| Bank charges and others | 9,751,760.34 | 12,235,308.36 |
| Total | -27,540,920.14 | -39,094,547.94 |
67. Other income
In RMB
| Sources of other income | Amount for the current period | Amount for the previous period |
| Government grants related to assets | 79,531,306.68 | 77,760,625.57 |
| Government grants related to income | 66,248,136.43 | 68,280,829.16 |
| Refund of individual income tax withholding service fees | 991,704.86 | 1,245,689.62 |
| Value-added tax credits | 24,380,280 26 | |
| Tax preferences | 5,260,420.66 |
68. Net exposure hedging income
69. Gain on changes in fair value
In RMB
| Source of gain on changes in fair value | Amount for the current period | Amount for the previous period |
| Financial assets held for trading | -15,065,635.92 | -8,871,765.01 |
| Total | -15,065,635.92 | -8,871,765.01 |
70. Investment income
In RMB
| Item | Amount for the current period | Amount for the previous period |
| Income from long-term equity investments under the equity method | -4,311,831.51 | -633,126.48 |
| Investment income from the disposal of financial assets held for trading | -43,948,067.47 | 11,067,076.03 |
| Income from debt restructuring | 2,062,881.90 | |
| Discount loss on accounts receivable financing | -3,082,914.57 | -1,215,084.94 |
| Income from bank wealth management products | 855,961.44 | 2,415,520.11 |
| Total | -48,423,970.21 | 11,634,384.72 |
71. Credit loss
In RMB
| Item | Amount for the current period | Amount for the previous period |
| Loss from doubtful accounts | -57,244,335.30 | -64,859,876.70 |
| Total | -57,244,335.30 | -64,859,876.70 |
72. Impairment loss on assets
In RMB
| Item | Amount for the current period | Amount for the previous period |
| I. Impairment of inventories and contract fulfilling costs | -105,585,722.55 | -60,359,147.92 |
| Total | -105,585,722.55 | -60,359,147.92 |
73. Gain on disposal of assets
In RMB
| Source of gain on disposal of assets | Amount for the current period | Amount for the previous period |
| Gain on disposal of fixed assets | -34,905,446.22 | -4,613,581.75 |
74. Non-operating revenue
In RMB
| Item | Amount for the current period | Amount for the previous period | Amount recognized in non-recurring gain or loss |
| Gain on business combination | 158,433,706.74 | ||
| Revenue from penalties and forfeitures | 3,574,668.97 | 232,648.74 | 3,574,668.97 |
| Amounts that cannot be paid | 384,586.86 | 1,909,625.59 | 384,586.86 |
| Others | 1,023,803.86 | 922,503.40 | 1,023,803.86 |
| Total | 4,983,059.69 | 161,498,484.47 | 4,983,059.69 |
75. Non-operating expenses
In RMB
| Item | Amount for the current period | Amount for the previous period | Amount recognized in non-recurring gain or loss |
| Donations | 2,032,060.00 | 712,176.97 | 2,032,060.00 |
| Loss on destruction and retirement of non-current assets | 1,313,816.79 | 3,041,247.98 | 1,313,816.79 |
| Penalties, overdue fines and liquidated damages | 121,263.86 | 649,883.50 | 121,263.86 |
| Others | 2,104,408.20 | 798,848.10 | 2,104,408.20 |
| Total | 5,571,548.85 | 5,202,156.55 | 5,571,548.85 |
76. Income tax expenses
(1) Statement of income tax expenses
In RMB
| Item | Amount for the current period | Amount for the previous period |
| Income tax expense | 47,382,680.04 | 245,495,348.06 |
| Deferred income tax expenses | 76,792,036.62 | -123,646,675.58 |
| Total | 124,174,716.66 | 121,848,672.48 |
(2) Reconciliation of income tax expenses to accounting profit
In RMB
| Item | Amount for the current period |
| Total profit | 683,098,729.39 |
| Income tax expenses | 124,174,716.66 |
77. Other comprehensive income
See Note 57.
78. Items of the cash flow statement
(1) Cash flows related to operating activities
Other cash receipts related to operating activities:
In RMB
| Item | Amount for the current period | Amount for the previous period |
| Security deposit for acceptance bills | 292,804,080.02 | 568,591,615.97 |
| Government grants | 75,652,600.37 | 89,183,807.74 |
| Interest income | 141,164,259.09 | 109,254,733.76 |
| Temporary receipts payable and others | 82,870,034.31 | 92,716,531.90 |
| Total | 592,490,973.79 | 859,746,689.37 |
Other cash payments related to operating activities
In RMB
| Item | Amount for the current period | Amount for the previous period |
| Security deposit for acceptance bills | 450,511,403.51 | 557,165,873.88 |
| Selling expenses and administrative expenses in cash | 346,654,910.34 | 275,041,587.05 |
| Bank charges | 9,751,760.34 | 12,235,308.36 |
| Temporary payments receivable and others | 20,705,500.14 | 1,299,627.33 |
| Total | 827,623,574.33 | 845,742,396.62 |
(2) Cash flows related to investing activities
Other cash receipts related to investing activities
In RMB
| Item | Amount for the current period | Amount for the previous period |
| Recovery of term deposits | 419,424,782.41 | 28,655,922.05 |
| Total | 419,424,782.41 | 28,655,922.05 |
Other cash payments related to investing activities
In RMB
| Item | Amount for the current period | Amount for the previous period |
| Term deposits | 530,962,815.64 | 126,553,313.15 |
| Total | 530,962,815.64 | 126,553,313.15 |
(3) Cash flows related to financing activities
Other cash receipts related to financing activities
In RMB
| Item | Amount for the current period | Amount for the previous period |
| Proceeds from discounts on acceptance bills and letters of credit | 329,197,076.44 | 458,901,268.55 |
| Total | 329,197,076.44 | 458,901,268.55 |
Other cash payments related to financing activities
In RMB
| Item | Amount for the current period | Amount for the previous period |
| Security deposits | 193,427,617.44 | 3,376,021.50 |
| Payment of rents | 93,422,168.32 | 148,009,080.25 |
| Payments under bill financing | 511,413,491.20 | 562,368,813.80 |
| Repurchase of treasury shares | 25,000,846.30 | |
| Total | 823,264,123.26 | 713,753,915.55 |
Changes in liabilities arising from financing activities
□Applicable ?N/A
79. Supplementary information to the cash flow statement
(1) Supplementary information to the cash flow statement
In RMB
| Supplementary information | Amount for the current period | Amount for the previous period |
| 1. Reconciliation of net profit to cash flows from operating activities: | ||
| Net profit | 558,924,012.73 | 824,643,184.71 |
| Add: Allowance for impairment of assets | 106,066,217.85 | 45,552,358.04 |
| Depreciation of fixed assets, oil and gas assets, and productive biological assets | 999,264,228.33 | 872,030,135.94 |
| Depreciation of right-of-use assets | 40,529,013.96 | 41,821,214.76 |
| Amortization of intangible assets | 48,441,737.48 | 36,614,756.69 |
| Amortization of long-term deferred expenses | 117,420,434.00 | 58,334,203.60 |
| Loss on disposal of fixed assets, intangible assets and other long-term assets (gain expressed with “-”) | 34,905,446.22 | 4,613,581.75 |
| Loss on retirement of fixed assets (gain expressed with “-”) | 1,313,816.79 | 3,041,247.98 |
| Loss on changes in fair value (gain expressed with “-”) | 1,821,721.89 | 8,871,765.01 |
| Financial expenses (income expressed with “-”) | 103,871,578.61 | 42,195,614.06 |
| Investment loss (income expressed with “-”) | 61,667,884.24 | -11,634,384.72 |
| Decrease in deferred tax assets (increase expressed with “-”) | -50,266,107.56 | -114,378,550.51 |
| Increase in deferred tax liabilities (decrease expressed with “-”) | 133,638,436.31 | -15,728,963.52 |
| Decrease in inventories (increase expressed with “-”) | 103,490,060.63 | -97,553,947.06 |
| Decrease in trade receivables (increase expressed with “-”) | 273,447,550.24 | 549,292,336.67 |
| Increase in trade payables (decrease expressed with “-”) | -445,566,632.44 | 366,186,282.62 |
| Others | ||
| Net cash flows from operating activities | 2,088,969,399.28 | 2,613,900,836.02 |
| 2. Significant investing and financing activities not involving cash receipts and payments: | ||
| Debt-to-capital swap | ||
| Convertible corporate bonds due within one year | ||
| Fixed assets acquired under finance leases | ||
| 3. Net changes in cash and cash equivalents: | ||
| Closing balance of cash | 6,051,354,094.24 | 5,620,735,100.35 |
| Less: Opening balance of cash | 5,644,487,018.31 | 5,457,026,822.70 |
| Add: Closing balance of cash equivalents | ||
| Less: Opening balance of cash equivalents | ||
| Net increase in cash and cash equivalents | 406,867,075.93 | 163,708,277.65 |
(2) Net cash paid for the acquisition of subsidiaries in the current period
(3) Net cash received from the disposal of subsidiaries in the current period
(4) Components of cash and cash equivalents
In RMB
| Item | Closing balance | Opening balance |
| I. Cash | 6,051,354,094.24 | 5,644,487,018.31 |
| Incl.: Cash on hand | 426,978.14 | 559,941.39 |
| Bank deposits immediately available for withdrawal | 6,050,927,116.10 | 5,643,927,076.92 |
| III. Closing balance of cash and cash equivalents | 6,051,354,094.24 | 5,644,487,018.31 |
(5) Amounts subject to restriction on use but still presented as cash and cash equivalents
In RMB
| Item | Amount for the current period | Amount for the previous period | Reason for presentation as cash and cash equivalents |
| Offering proceeds | 166,116,411.96 | 30,654,962.53 | Immediately available for withdrawal despite of restriction on use |
| Total | 166,116,411.96 | 30,654,962.53 |
(6) Cash and bank balances not classified as cash and cash equivalents
In RMB
| Item | Amount for the current period | Amount for the previous period | Reason for not classified as cash and cash equivalents |
| Security deposit for term deposits | 791,544,001.77 | 690,180,814.95 | May be unavailable for payment due to pledge, freeze or otherwise |
| Security deposit for bills | 537,443,017.99 | 497,103,353.58 | May be unavailable for payment due to pledge, freeze or otherwise |
| Security deposit for the acquisition | 230,197,429.36 | 230,197,429.36 | May be unavailable for payment due to pledge, freeze or otherwise |
| Security deposit for letters of credit | 61,127,995.41 | 73,225,915.43 | May be unavailable for payment due to pledge, freeze or otherwise |
| Security deposit for letters of guarantee | 70,997,096.62 | 54,841,699.43 | May be unavailable for payment due to pledge, freeze or otherwise |
| Security deposit for loans | 211,812,961.30 | May be unavailable for payment due to pledge, freeze or otherwise | |
| Total | 1,903,122,502.45 | 1,545,549,212.75 |
80. Notes to items of the statement of changes in owners’ equity
81. Monetary items denominated in foreign currencies
(1) Monetary items denominated in foreign currencies
In RMB
| Item | Closing balance in foreign currency | Exchange rate | Closing balance in RMB |
| Cash and bank balances | |||
| Incl.: USD | 530,338,989.42 | 7.1268 | 3,779,619,909.80 |
| EUR | 519,911.40 | 7.6617 | 3,983,405.17 |
| HKD | 81,799.07 | 0.9127 | 74,658.01 |
| KRW | 12,946,659.00 | 0.0052 | 67,322.63 |
| SGD | 2,725,675.37 | 5.279 | 14,388,840.28 |
| NTD | 175,979.00 | 0.2234 | 39,313.71 |
| JPY | 220,097.03 | 0.0447 | 9,838.34 |
| SEK | 33,074.71 | 0.6737 | 22,282.43 |
| MXN | 19,053,026.76 | 0.3857 | 7,348,752.42 |
| Accounts receivable | |||
| Incl.: USD | 651,873,021.75 | 7.1268 | 4,645,768,651.41 |
| EUR | 26,690.33 | 7.6617 | 204,493.30 |
| HKD | |||
| NTD | 1,462,528.51 | 0.2234 | 326,728.87 |
| Long-term borrowings | |||
| Incl.: USD | 8,306,932.28 | 7.1268 | 59,201,844.97 |
| EUR | |||
| HKD | |||
| Other receivables | |||
| Incl.: USD | 251,396,925.19 | 7.1268 | 1,791,655,606.44 |
| SGD | 87,538.05 | 5.279 | 462,113.37 |
| Short-term borrowings | |||
| Incl.: USD | 144,501,328.85 | 7.1268 | 1,029,832,070.45 |
| Accounts payable | |||
| Incl.: USD | 281,020,802.66 | 7.1268 | 2,002,779,056.40 |
| EUR | 359,160.81 | 7.6617 | 2,751,782.38 |
| SGD | 38,172.36 | 5.2790 | 201,511.89 |
| NTD | 36,605.00 | 0.2234 | 8,177.56 |
| JPY | 763,869,956.00 | 0.0447 | 34,144,987.03 |
| SEK | 2,650.00 | 0.6737 | 1,785.31 |
| MXN | 2,291,768.38 | 0.3857 | 883,935.06 |
| Employee benefits payable | |||
| Incl.: USD | 4,569,366.81 | 7.1268 | 32,564,963.38 |
| MXN | 1,033,308.83 | 0.3857 | 398,547.22 |
| Taxes payable | |||
| Incl.: USD | 11,641,581.21 | 7.1268 | 82,967,220.97 |
| MXN | 8,542,023.88 | 0.3857 | 3,294,658.61 |
| Other payables | |||
| Incl.: USD | 213,233,051.89 | 7.1268 | 1,519,669,314.21 |
| SGD | 9,070.11 | 5.279 | 47,881.11 |
| JPY | 781,745.00 | 0.0447 | 34,944.00 |
| Notes payable | |||
| Incl.: USD | 63,507,320.49 | 7.1268 | 452,603,971.67 |
| JPY | 6,750,000.00 | 0.0447 | 301,725.00 |
| Non-current liabilities due within one year | |||
| Incl.: USD | 28,515,030.87 | 7.1268 | 203,220,922.00 |
(2) Information about overseas operating entities, including main places of business and functionalcurrencies of major overseas operating entities, basis for the choice of functional currencies, and reasonsfor changes in functional currencies:
□Applicable ?N/A
VIII. Research and Development Expenses
In RMB
| Item | Amount for the current period | Amount for the previous period |
| Direct costs | 284,790,576.60 | 171,995,246.32 |
| Labor costs | 267,132,170.20 | 221,188,241.37 |
| Depreciation | 45,587,062.83 | 38,704,246.34 |
| Others | 24,713,799.36 | 25,501,749.18 |
| Total | 622,223,608.99 | 457,389,483.21 |
IX. Changes in the Scope of ConsolidationX. Interests in Other Entities
1. Interests in subsidiaries
(1) Composition of the enterprise group
In RMB
| Subsidiary | Registered capital | Principal place of business | Place of incorporation | Nature of business | Shareholding percentage | Method of acquisition | |
| Direct | Indirect | ||||||
| Suzhou Yongchuang Metal Science and Technology Co., Ltd. | Suzhou | Suzhou | Manufacturing | 100.00% | Business combinations involving entities under common control | ||
| Suzhou Dongkui Lighting Co., Ltd. | Suzhou | Suzhou | Manufacturing | 100.00% | Established | ||
| Suzhou Chengjia | Suzhou | Suzhou | Manufacturing | 100.00% | Established | ||
| Dongguan Dongshan Precision Manufacturing Co., Ltd. | Dongguan | Dongguan | Manufacturing | 95.00% | 5.00% | Established | |
| Suzhou Dongjiyuan Metal Technology Co., Ltd. | Suzhou | Suzhou | Manufacturing | 100.00% | Established | ||
| Yancheng Dongshan | Yancheng | Yancheng | Manufacturing | 95.00% | 5.00% | Established | |
| Suzhou Jebson Intelligent Technology Co., Ltd. | Suzhou | Suzhou | Manufacturing | 51.00% | Established | ||
| Suzhou Dongdai Electronic Technology Co., Ltd. | Suzhou | Suzhou | Manufacturing | 51.00% | Established | ||
| Suzhou Dongyan Electronic Technology Co., Ltd. | Suzhou | Suzhou | Manufacturing | 51.00% | Established | ||
| Yancheng Dongshan | Yancheng | Yancheng | Property | 95.00% | 5.00% | Established | |
| Business Management Co., Ltd. | management | ||||||
| Yancheng Dongshan Communication Technology Co., Ltd. | Yancheng | Yancheng | Manufacturing | 100.00% | Established | ||
| Shanghai Chengjia Consulting Management Co., Ltd. | Shanghai | Shanghai | Business & investment | 100.00% | Established | ||
| Yancheng Mutto Optronics Technology Co., Ltd. | Yancheng | Yancheng | Manufacturing | 100.00% | Established | ||
| Dowell Smart Suzhou Co., Ltd. | Suzhou | Suzhou | Manufacturing | 100.00% | Established | ||
| MFLEX Yancheng Co., Ltd. | Yancheng | Yancheng | Manufacturing | 100.00% | Established | ||
| MFLEX Suzhou | Suzhou | Suzhou | Manufacturing | 100.00% | Business combinations involving entities not under common control | ||
| MFLEX Chengdu Co., Ltd. | Chengdu | Chengdu | Manufacturing | 100.00% | Business combinations involving entities not under common control | ||
| RF Top Electronic | Suzhou | Suzhou | Manufacturing | 93.51% | Business combinations involving entities not under common control | ||
| Mutto Optronics | Suzhou | Suzhou | Manufacturing | 100.00% | Business combinations involving entities not under common control | ||
| Multek Technology (Zhuhai) Co., Ltd. | Zhuhai | Zhuhai | Manufacturing | 100.00% | Business combinations involving entities not under common control | ||
| Multek Industries | Zhuhai | Zhuhai | Manufacturing | 100.00% | Business combinations involving entities not under |
| common control | |||||||
| Multek Electronics | Zhuhai | Zhuhai | Manufacturing | 100.00% | Business combinations involving entities not under common control | ||
| Multek Zhuhai | Zhuhai | Zhuhai | Manufacturing | 100.00% | Business combinations involving entities not under common control | ||
| Multek China | Zhuhai | Zhuhai | Manufacturing | 100.00% | Business combinations involving entities not under common control | ||
| Multek Zhuhai Enterprise Management Co., LTD | Zhuhai | Zhuhai | Business & investment | 100.00% | Established | ||
| Suzhou Dongbo Precision Manufacturing Co., Ltd. | Suzhou | Suzhou | Manufacturing | 51.00% | Established | ||
| MFLEX Shanghai Co., Ltd. | Shanghai | Shanghai | Wholesale | 100.00% | Established | ||
| Shenzhen Qindao Dongchuang Investment Partnership (L.P.) | Shenzhen | Shenzhen | Business & investment | 76.92% | Established | ||
| Suzhou Dongke Real Estate Co., Ltd. | Suzhou | Suzhou | Real estate | 100.00% | Established | ||
| Yancheng Dongchuang Precision Manufacturing Co., Ltd. | Yancheng | Yancheng | Manufacturing | 100.00% | Established | ||
| Suzhou Dongchen Intelligent Equipment Manufacturing Co., Ltd. | Suzhou | Suzhou | Manufacturing | 100.00% | Established | ||
| Shanghai Dongxin New Energy Technology Co., Ltd. | Shanghai | Shanghai | Manufacturing | 95.00% | 5.00% | Established | |
| Shanghai Donglan New Energy Technology Co., Ltd. | Shanghai | Shanghai | Manufacturing | 100.00% | Established | ||
| Suzhou Dongyue New Energy Technology Co., Ltd. | Kunshan | Kunshan | Manufacturing | 90.00% | 10.00% | Established | |
| Suzhou Dongshan Industrial Investment Co., Ltd. | Suzhou | Suzhou | Business & investment | 100.00% | Established |
| Suzhou Dongdi Holding Limited | Suzhou | Suzhou | Business & investment | 100.00% | Established | ||
| Suzhou JDI | Suzhou | Suzhou | Manufacturing | 100.00% | |||
| Chaowei Microelectronics (Yancheng) Co., Ltd. | Yancheng | Yancheng | Manufacturing | 100.00% | Established | ||
| Hong Kong Dongshan | Hong Kong | Hong Kong | Business & investment | 100.00% | Established | ||
| Mutto Optronics Group Limited | BVI | Business & investment | 100.00% | Business combinations involving entities not under common control | |||
| DSBJ holdings Inc. | USA | Business & investment | 100.00% | Established | |||
| DSBJ International Inc. | USA | Business & investment | 100.00% | Established | |||
| DSBJ Solutions INC | USA | Business & investment | 100.00% | Established | |||
| Dragon Electronix Holdings INC. | USA | Business & investment | 100.00% | Established | |||
| Multi-Fineline Electronix, Inc. | USA | Business & investment | 100.00% | Business combinations involving entities not under common control | |||
| MFLEX Delaware, Inc. | Delaware | Business & investment | 100.00% | Business combinations involving entities not under common control | |||
| Multi-Fineline Electronix Singapore Pte. Ltd. | Singapore | Business & investment | 100.00% | Business combinations involving entities not under common control | |||
| MFLEX B.V. | Netherlands | Business & investment | 100.00% | Business combinations involving entities not under common control | |||
| Hong Kong Dongshan Holding Limited | Hong Kong | Business & investment | 100.00% | Established |
| DSBJ PTE. LTD. | Singapore | Business & investment | 100.00% | Established | |||
| Multek Group (Hong Kong) Limited | Hong Kong | Business & investment | 100.00% | Established | |||
| Multek Technology, Inc. | USA | Business & investment | 100.00% | Established | |||
| Multek Technologies Limited | Mauritius | Business & investment | 100.00% | Business combinations involving entities not under common control | |||
| The Dii Group (BVI) Co. Limited | BVI | Business & investment | 100.00% | Business combinations involving entities not under common control | |||
| The Dii Group Asia Limited | Hong Kong | Business & investment | 100.00% | Business combinations involving entities not under common control | |||
| Multek Hong Kong Limited | Hong Kong | Business & investment | 100.00% | Business combinations involving entities not under common control | |||
| Astron Group Limited | Hong Kong | Business & investment | 100.00% | Business combinations involving entities not under common control | |||
| Vastbright PCB (Holding) Limited | Hong Kong | Business & investment | 100.00% | Business combinations involving entities not under common control | |||
| Multek Technology Germany GmbH | Germany | Business & investment | 100.00% | Business combinations involving entities not under common |
| control | |||||||
| Multek Technology Sweden AB | Sweden | Business & investment | 100.00% | Established | |||
| Multek Technology Malaysia SDN.BHD | Malaysia | Business & investment | 100.00% | Established | |||
| Korea branch office of DSBJ Pte. Ltd. | Korea | Business & investment | 100.00% | Established | |||
| Autotech Producti on de Mexico S. de R. L. de C.V. | Mexico | Manufacturing | 100.00% | Business combinations involving entities not under common control | |||
| Aranda Tooling, Inc. | USA | Manufacturing | 100.00% | Business combinations involving entities not under common control | |||
| AutoTech Production Services, Inc. | USA | Manufacturing | 100.00% | Business combinations involving entities not under common control | |||
| DSBJ MEXICO,S.DER.L.DEC.V. | Mexico | Manufacturing | 100.00% | Established | |||
| Multi-Fineline Electronics (Thailand) Co., Ltd. | Thailand | Manufacturing | 100.00% | Established | |||
| Hong Kong Dongdi Holding Limited | Hong Kong | Business & investment | 100.00% | Established |
XI. Government Grants
1. Government grants recognized at the amount receivable at the end of the reporting period?Applicable □N/AClosing balance of government grants receivable: RMB40,256,780.00.Reason for failure to receive expected government grants at the expected time:
□Applicable ?N/A
2. Liabilities related to government grants
?Applicable □N/A
In RMB
| Item | Opening balance | New grants received in the current period | Amount of non-operating revenue recognized in the current period | Amount transferred to other income in the current period | Other changes in the current period | Closing balance | Related to assets/income |
| Deferred income | 733,456,685.17 | 2,774,900.00 | 79,531,306.68 | 656,700,278.49 | Related to assets |
3. Government grants recognized in profit or loss
?Applicable □N/A
In RMB
| Item | Amount for the current period | Amount for the previous period |
| Government grants recognized in other income | 145,779,443.11 | 146,761,931.98 |
| Effect of financial interest subsidy on total profit | 156,000.00 |
XII. Risks Associated with Financial Instruments
1. Risks arising from financial instruments
The Company’s objectives of risk management are to maintain a balance between risk and income, minimize the negative effect ofrisks on the operating results of the Company and maximize the interests of the shareholders and other equity investors. On the basisof such objectives of risk management, the Company’s basic risk management policy is designed to identify and analyze all kinds ofrisks facing the Company, set appropriate risk thresholds in risk management, and monitor risks and adherence to limits in a timelyand reliable manner.The Company faces a variety of risks associated with financial instruments in its daily activities, mainly including credit risk, liquidityrisk and market risk. Below is a summary of the policies for managing such risks considered and approved by the management.(I) Credit riskCredit risk is the risk that one party to a financial instrument will cause a financial loss to the other party by failing to discharge anobligation.
1. Credit risk management practice
(1) Assessment of credit risk
At each balance sheet date, the Company assesses whether the credit risk of a financial instrument has increased significantly sinceinitial recognition. In assessing whether the credit risk has increased significantly since initial recognition, the Company takes intoaccount reasonable and supportable information, which is available 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 changesin default risk of financial instruments during their estimated lifetime through a comparison of the default risk at the balance sheet dateand the initial recognition date, on an individual or collective basis.The Company determines that the credit risk of a financial instrument has increased significantly when one or more of the followingqualitative and quantitative standards are met:
1) Quantitative standard, mainly relates to the scenario in which, at the balance sheet date, the probability of default in the remaininglifetime has risen by more than a certain percentage compared with the initial recognition; and/or
2) Qualitative standard mainly relates to significant adverse changes in the debtor’s business situation or financial position, and presentor expected changes in technology, market, economy or legal environment that will have a material adverse effect on the debtor’sability to repay.
(2) Definition of default and credit-impaired assets
A financial instrument is in default or credit impaired when one or more of the following conditions are met:
1) significant financial difficulty of the debtor.
2) any breach by the debtor of contract terms binding on it.
3) it becomes probable that the debtor will enter bankruptcy or other financial reorganization.
4) the creditors of the debtor, for economic or contractual reasons relating to the debtor’s financial difficulty, having granted to thedebtor a concession that the creditors would not otherwise consider.
2. Measurement of expected credit losses
The key factors in the measurement of expected credit losses include the probability of default, loss given default, and exposure todefault risk. The Company has developed a model of the probability of default, loss given default and exposure to default risk on thebasis of quantitative analysis of historical data (e.g. counterparty rating, guarantee measures and collateral type, payment method, etc.)and forward-looking information.
3. See Notes V(I)3, V(I)4, V(I)7 and V(I)10 for the conciliation table of opening balances and closing balances of allowance forimpairment loss on financial instruments.
4. Credit risk exposure and credit risk concentration
The Company’s credit risk is primarily attributable to cash and bank balances and receivables. In order to control such risks, theCompany has taken the following measures:
(1) Cash and bank balances
The Company deposits its bank balances and other monetary capital in financial institutions with relatively high credit ratings, so itscredit risk is relatively low.
(2) Accounts receivable
The Company performs credit assessments on customers using credit settlement on an ongoing basis. The Company selects approvedand creditworthy customers based on the result of credit assessment, and monitors the balance of accounts receivable from them on anongoing basis, to avoid significant risk of doubtful accounts.As the Company only deals with approved and creditworthy third parties, no collateral is required. As of June 30, 2024, the Companyfaced certain credit concentration risks. In particular, 49.75% (December 31, 2023: 60.39%) of the Company’s accounts receivablecame from the top 5 customers, without any collateral or other credit enhancement.The Company’s maximum exposure to credit risk is the carrying value of each financial asset in the balance sheet.(II) Liquidity riskLiquidity risk is the risk that the Company may not have enough cash to satisfy its obligation to deliver cash or other financial assets,due to the inability to liquidate financial assets at fair value in a timely manner, or failure of counterparties to discharge their contractliabilities, acceleration of debts, failure to generate expected cash flows, or otherwise.In order to control such risk, the Company utilizes a variety of financing tools such as settlement by means of notes, bank loans, etc.,combines long-term and short-term financing to optimize financing structure, and maintains a balance between financingsustainability and flexibility. The Company has obtained lines of credit from many commercial banks to satisfy its working capitalrequirements and capital expenditures.Financial liabilities classified by remaining maturity
In RMB
| Item | As of the end of the current period | ||||
| Carrying value | Undiscounted contract amount | Within 1 year | 1-3 years | Over 3 years | |
| Bank loans (including non-current liabilities due within one year) | 13,266,747,068.11 | 13,771,254,176.22 | 8,289,023,807.20 | 4,013,967,725.26 | 1,468,262,643.76 |
| Financial liabilities held for trading | 180,575,141.54 | 180,575,141.54 | 180,575,141.54 | ||
| Notes payable | 979,409,601.51 | 979,409,601.51 | 979,409,601.51 | ||
| Accounts payable | 8,353,477,330.14 | 8,353,477,330.14 | 8,353,477,330.14 | ||
| Other payables | 81,678,161.65 | 81,678,161.65 | 81,678,161.65 | ||
| Lease liabilities (including non-current liabilities due within one year) | 1,905,076,496.37 | 2,053,841,740.42 | 25,498,078.10 | 1,594,309,427.07 | 434,034,235.25 |
| Long-term payables (including non-current liabilities due within one year) | 276,056,389.48 | 276,056,389.48 | 21,380,400.00 | 254,675,989.48 | |
| Subtotal | 25,043,020,188.80 | 25,696,292,540.96 | 17,931,042,520.13 | 5,862,953,141.81 | 1,902,296,879.02 |
(Continued)
| Item | As of the end of the previous year | ||||
| Carrying value | Undiscounted contract amount | Within 1 year | 1-3 years | Over 3 years | |
| Bank loans (including non-current liabilities due within one year) | 12,329,399,469.82 | 12,883,478,634.71 | 7,981,675,775.53 | 3,054,956,512.84 | 1,846,846,346.34 |
| Financial liabilities held for trading | 104,174,076.23 | 104,174,076.23 | 104,174,076.23 | ||
| Notes payable | 909,171,215.93 | 909,171,215.93 | 909,171,215.93 | ||
| Accounts payable | 8,039,107,176.52 | 8,039,107,176.52 | 8,039,107,176.52 | ||
| Other payables | 80,188,628.54 | 80,188,628.54 | 80,188,628.54 | ||
| Lease liabilities (including non-current liabilities due within one year) | 1,872,497,186.10 | 2,130,134,243.16 | 77,293,792.42 | 1,609,372,610.71 | 443,467,840.03 |
| Long-term payables (including non-current liabilities due within one year) | 296,995,789.48 | 296,995,789.48 | 296,995,789.48 | ||
| Subtotal | 23,631,533,542.62 | 24,443,249,764.57 | 17,191,610,665.17 | 4,961,324,913.03 | 2,290,314,186.37 |
(III) Market RiskMarket risk is the risk of fluctuation in the fair value or future cash flows of financial instruments due to changes in market prices.Market risk mainly includes interest risk and foreign exchange risk.
1. Interest risk
Interest risk is the risk of fluctuation in the fair value or future cash flows of financial instruments due to changes in market interestrates. Interest-bearing financial instruments with fixed interest rates expose the Company to fair value interest rate risk, while interest-bearing financial instruments with floating interest rates expose the Company to cash flow interest rate risk. The Company determinesthe proportion of fixed-rate financial instruments and floating-rate financial instruments based on the market environment, and reviewsand monitors the appropriateness of its portfolio of financial instruments on a regular basis. The cash flow interest rate risk that theCompany faces is primarily associated with the floating-rate bank loans owed by the Company, which amounted toRMB2,447,213,171.46 as of June 30, 2024 (December 31, 2023: RMB1,406,781,793.94). Supposing the interest rate changes by 50basic points while other variables remain unchanged, the Company’s total profit and shareholders’ interest will not be materiallyaffected.
2. Foreign exchange risk
Foreign exchange risk is the risk of fluctuation in the fair value or future cash flows of financial instruments due to changes in exchangerates. The Company’s foreign exchange risk relates mainly to foreign currency denominated monetary assets and liabilities. When a
short-term imbalance occurs on foreign currency denominated assets and liabilities, the Company may trade foreign currencies atmarket exchange rates when necessary, in order to maintain the net risk exposure at an acceptable level.See Note V(V)2 to the Financial Statements for details of foreign currency denominated monetary assets and liabilities as of the endof the reporting period.
2. Hedging
3. Financial assets
XIII. Fair Value Disclosures
1. Closing balance of the fair value of assets and liabilities measured at fair value
In RMB
| Item | Closing balance of fair value | |||
| Level 1 fair value measurement | Level 2 fair value measurement | Level 3 fair value measurement | Total | |
| I. Recurring fair value measurement | -- | -- | -- | -- |
| 1. Financial assets at fair value through profit or loss | 140,916,032.21 | 140,916,032.21 | ||
| (2) Investment in equity instruments | 69,320,128.82 | 69,320,128.82 | ||
| (4) Derivatives | 25,782,508.65 | 25,782,508.65 | ||
| (5) Bank wealth management products | 45,813,394.74 | 45,813,394.74 | ||
| (II) Other debt investments | 199,435,267.61 | 199,435,267.61 | ||
| (III) Investment in other equity instruments | 283,657,110.00 | 283,657,110.00 | ||
| Total assets measured at fair value on a recurring basis | 624,008,409.82 | 624,008,409.82 | ||
| (VI) Financial liabilities held for trading | 180,575,141.54 | 180,575,141.54 | ||
| Total liabilities measured at fair value on a recurring basis | 180,575,141.54 | 180,575,141.54 | ||
| II. Fair value measurement on a non-recurring basis | -- | -- | -- | -- |
XIV. Related Parties and Related-party Transactions
1. Parent of the Company
The Company’s actual controllers are YUAN Yonggang, YUAN Yongfeng and YUAN Fugen, who hold 11.83%, 13.01% and 3.44%of the total shares and votes of the Company respectively, and 28.27% of the total shares and votes of the Company in aggregate.
2. Subsidiaries of the Company
The particulars of the subsidiaries of the Company are set forth in “Interests in Other Entities”.
3. Joint ventures and associates of the Company
The particulars of the joint ventures and associates of the Company are set forth in “Interests in Other Entities”.Other joint ventures or associates that have carried out related-party transactions with the Company in the current period or theprevious periods with balances recorded in the current period:
| Name of joint venture or associate | Relationship with the Company |
| Suzhou Toprun Electric Equipment Co., Ltd. | Associate |
| Suzhou Dongcan Optoelectronics Technology Co., Ltd. | Associate |
4. Other related parties
| Name of other related party | Relationship with the Company |
| Hai Dixin Semiconductor (Nantong) Co., Ltd. | Associate |
| Anhui Landun Photoelectron Co., Ltd. | A company controlled by the actual controllers of the Company |
| Shanghai Corkuna New Material Technologies Co., Ltd. | A company controlled by the actual controllers of the Company |
| Suzhou Corkuna New Material Technologies Co., Ltd. | A company controlled by the actual controllers of the Company |
5. Related-party transactions
(1) Related-party commodity and service transactions
Purchase of goods and receipt of services from related parties
In RMB
| Related party | Subject matter | Amount for the current period | Transaction quota approved | Whether or not exceed the transaction quota? | Amount for the previous period |
| Suzhou Toprun Electric Equipment Co., Ltd. | Purchase of goods | No | |||
| Shanghai Corkuna New Material Technologies Co., Ltd. | Purchase of goods | 6,839,456.25 | No | ||
| Suzhou Corkuna New Material Technologies Co., Ltd. | Purchase of goods | 1,373,169.59 | No | ||
| Suzhou Dongcan Optoelectronics Technology Co., Ltd. | Purchase of goods | 28,320.00 | No | 11,688.80 |
Sale of goods and rendering of services to related parties
In RMB
| Related party | Subject matter | Amount for the current period | Amount for the previous period |
| Suzhou Toprun Electric Equipment Co., Ltd. | Sale of services | 101,886.79 | |
| Suzhou Toprun Electric Equipment Co., Ltd. | Sale of equipment | ||
| Suzhou Dongcan Optoelectronics Technology Co., Ltd. | Sale of goods | ||
| Suzhou Dongcan Optoelectronics Technology Co., Ltd. | Rendering of services | 25,776.74 | 63,630.55 |
| Anhui Landun Photoelectron Co., Ltd. | Rendering of services | 269,820.00 | |
| Suzhou Corkuna New Material Technologies Co., Ltd. | Sale of equipment |
(2) Related-party entrusted management/contracts
(3) Related-party leases
(4) Related-party guarantees
The Company as guarantor:
In RMB
| Obligor | Amount guaranteed | Effective date of guarantee | Expiry date of guarantee | Whether the obligation guaranteed has been discharged |
| Suzhou Toprun Electric Equipment Co., Ltd. | 5,400,000.00 | August 24, 2023 | August 23, 2024 | No |
| Suzhou Toprun Electric Equipment Co., Ltd. | 6,600,000.00 | September 5, 2023 | September 4, 2024 | No |
| Suzhou Toprun Electric Equipment Co., Ltd. | 8,000,000.00 | January 24, 2024 | January 23, 2025 | No |
| Shanghai Fu Shan Precision Manufacturing Co., Ltd. | 30,000,000.00 | October 12, 2023 | October 11, 2024 | No |
The Company as obligor:
In RMB
| Guarantor | Amount guaranteed | Effective date of guarantee | Expiry date of guarantee | Whether the obligation guaranteed has been discharged |
| YUAN Yonggang and YUAN Yongfeng | 500,000,000.00 | March 22, 2018 | August 28, 2024 | No |
(5) Related-party loans
(6) Related-party asset transfer and debt restructuring
(7) Remunerations of key officers
In RMB
| Item | Amount for the current period | Amount for the previous period |
| Remunerations of key officers | 11,522,600.00 | 10,614,800.00 |
6. Amounts receivable from/payable to related parties
(1) Amounts receivable from related parties
In RMB
| Item | Related party | Closing balance | Opening balance | ||
| Book balance | Allowance for | Book balance | Allowance for | ||
| doubtful accounts | doubtful accounts | ||||
| Accounts receivable | Suzhou Dongcan Optoelectronics Technology Co., Ltd. | 282,823.95 | 50,538.47 | 257,026.80 | 22,356.61 |
| Accounts receivable | Suzhou Toprun Electric Equipment Co., Ltd. | 129,457.70 | 1,150.29 | ||
| Accounts receivable | Hai Dixin Semiconductor (Nantong) Co., Ltd. | 1,607,132.92 | 1,607,132.92 | 1,607,132.92 | 1,607,132.92 |
| Accounts receivable | Suzhou Corkuna New Material Technologies Co., Ltd. | 339,816.02 | 1,699.08 | ||
| Other receivables | Hai Dixin Semiconductor (Nantong) Co., Ltd. | 1,790,748.55 | 1,790,748.55 | 1,790,748.55 | 1,790,748.55 |
(2) Amounts payable to related parties
In RMB
| Item | Related party | Closing book balance | Opening book balance |
| Accounts payable | Suzhou Dongcan Optoelectronics Technology Co., Ltd. | 262,791.75 | 310,347.77 |
| Accounts payable | Shanghai Corkuna New Material Technologies Co., Ltd. | 4,518,253.61 | 7,338,661.31 |
| Accounts payable | Suzhou Corkuna New Material Technologies Co., Ltd. | 1,399,264.96 | |
| Contract liabilities | Suzhou Toprun Electric Equipment Co., Ltd. | 74,822.30 |
XV. Share-based Payments
1. Summary of share-based payments
?Applicable □N/A
In RMB
| Type of grantees | Granted in the current period | Exercised in the current period | Vested in the current period | Expired in the current period | ||||
| Number of shares | Amount | Number of shares | Amount | Number of shares | Amount | Number of shares | Amount | |
| Administrative personnel | 559,889 | 10,973,815.00 | 33,560 | 657,766.00 | ||||
| R&D personnel | 58,370 | 1,144,052.00 | 1,213 | 23,775.00 | ||||
| Sales personnel | 64,799 | 1,270,060.00 | ||||||
| Total | 683,058 | 13,387,927.00 | 34,773 | 681,541.00 | ||||
2. Equity-settled share-based payments
?Applicable □N/A
In RMB
| Method for determining the fair value of equity instruments at the grant date | Closing price of the Company’s stock at the date the relevant employee stock ownership plan was approved by the general |
| meeting of shareholders | |
| Important parameters for the fair value of equity instruments at the grant date | The number approved by the Board of Directors and the general meeting of shareholders of the Company, taking into account the performance indicators |
| Basis for determining the number of exercisable equity instruments | N/A |
| Reason of significant differences between the current estimates and previous estimates | None |
| Aggregate amount of equity-settled share-based payments recorded in capital reserve | 26,716,385.96 |
| Total amount of equity-settled share-based payments recognized in expenses in the current period | 1,107,141.50 |
3. Cash-settled share-based payments
4. Share-based payments in the current period
?Applicable □N/A
In RMB
| Type of grantees | Equity-settled share-based payments | Cash-settled share-based payments |
| Administrative personnel | 910,450.75 | |
| R&D personnel | 94,609.70 | |
| Sales personnel | 102,081.05 | |
| Total | 1,107,141.50 |
XVI. Commitments and ContingenciesXVII. Subsequent EventsXVIII. Other Significant InformationXIX. Notes to Key Items of the Standalone Financial Statements
1. Accounts receivable
(1) Accounts receivable by age
In RMB
| Age | Closing book balance | Opening book balance |
| Within 1 year (inclusive) | 2,271,202,511.02 | 1,278,554,642.91 |
| Within 6 months | 2,139,214,083.54 | 1,195,439,845.81 |
| 7-12 months | 131,988,427.48 | 83,114,797.10 |
| 1-2 years | 224,371,577.97 | 689,194,247.06 |
| 2-3 years | 97,746,067.54 | 4,893,435.36 |
| Over 3 years | 81,216,880.17 | 227,083,256.45 |
| 3-4 years | 8,755,345.18 | 195,473,911.72 |
| 4-5 years | 42,314,052.73 | 9,831,416.31 |
| Over 5 years | 30,147,482.26 | 21,777,928.42 |
| Total | 2,674,537,036.70 | 2,199,725,581.78 |
(2) Accounts receivable by method of recognition of allowance for doubtful accounts
In RMB
| Item | Closing balance | Opening balance | ||||||||
| Book balance | Allowance for doubtful accounts | Carrying value | Book balance | Allowance for doubtful accounts | Carrying value | |||||
| Amount | % | Amount | % | Amount | % | Amount | % | |||
| Accounts receivable with allowance recognized individually | 12,127,413.92 | 0.45% | 12,127,413.92 | 100.00% | 12,127,413.92 | 0.55% | 12,127,413.92 | 100.00% | ||
| Incl.: | ||||||||||
| Accounts receivable with allowance recognized collectively | 2,662,409,622.78 | 99.55% | 159,640,829.66 | 6.00% | 2,502,768,793.12 | 2,187,598,167.86 | 99.45% | 102,894,892.64 | 4.70% | 2,084,703,275.22 |
| Incl.: | ||||||||||
| Total | 2,674,537,036.70 | 100.00% | 171,768,243.58 | 6.42% | 2,502,768,793.12 | 2,199,725,581.78 | 100.00% | 115,022,306.56 | 5.23% | 2,084,703,275.22 |
Accounts receivable with allowance recognized collectively by category name:
In RMB
| Item | Closing balance | ||
| Book balance | Allowance for doubtful accounts | % | |
| Group of related parties within the scope of consolidation | 1,528,387,645.68 | ||
| Aging group | 1,134,021,977.10 | 159,640,829.66 | 14.08% |
| Total | 2,662,409,622.78 | 159,640,829.66 | |
(3) Allowance for doubtful accounts recognized, recovered or reversed in the current period
(4) Accounts receivable actually written off in the current period
(5) Top 5 debtors in terms of closing balance of accounts receivable and contract assets
In RMB
| Company name | Closing balance of accounts receivable | Closing balance of contract assets | Total closing balance of accounts receivable and contract assets | % of total closing balance of accounts receivable and contract assets | Closing balance of allowance for doubtful accounts receivable and impairment of contract assets |
| Debtor 1 | 675,656,845.42 | 675,656,845.42 | 25.26% | ||
| Debtor 2 | 455,870,292.70 | 455,870,292.70 | 17.04% | ||
| Debtor 3 | 214,492,463.80 | 213,386,916.35 | 8.02% | 1,105,547.45 | |
| Debtor 4 | 145,003,763.36 | 144,278,744.54 | 5.42% | 725,018.82 | |
| Debtor 5 | 143,534,517.06 | 143,534,517.06 | 5.37% | ||
| Total | 1,634,557,882.34 | 1,632,727,316.07 | 61.11% | 1,830,566.27 |
2. Other receivables
In RMB
| Item | Closing balance | Opening balance |
| Dividends receivable | 1,559,915,617.48 | 2,203,111,413.70 |
| Other receivables | 5,662,285,933.05 | 3,049,524,125.86 |
| Total | 7,222,201,550.53 | 5,252,635,539.56 |
(1) Dividends receivable
1) Dividends receivable by category
In RMB
| Item (or investee) | Closing balance | Opening balance |
| HongKongDongshanHoldingLimited | 1,293,915,617.48 | 1,817,111,413.70 |
| Yancheng Dongshan | 266,000,000.00 | 266,000,000.00 |
| Suzhou JDI | 120,000,000.00 | |
| Total | 1,559,915,617.48 | 2,203,111,413.70 |
2) Significant dividends receivable aged over one year
In RMB
| Item (or investee) | Closing balance | Age | Reason for failure to collect | Whether or not impaired and the basis for determination |
| Hong Kong Dongshan Holding Limited | 179,100,539.32 | 2-3 years | To support the development of the subsidiary |
| Yancheng Dongshan | 266,000,000.00 | 2-3 years | To support the development of the subsidiary | |
| Total | 445,100,539.32 |
(2) Other receivables
1) Other receivables by nature
In RMB
| Nature of account | Closing book balance | Opening book balance |
| Current accounts | 5,647,610,932.99 | 3,043,264,560.13 |
| Security deposit | 1,963,238.00 | 2,042,208.17 |
| Loans and reserve fund | 12,885,662.09 | 2,562,780.89 |
| Temporary payment receivable | 3,515,919.51 | 4,250,557.91 |
| Total | 5,665,975,752.59 | 3,052,120,107.10 |
2) Other receivables by age
In RMB
| Age | Closing book balance | Opening book balance |
| Within 1 year (inclusive) | 3,737,088,391.59 | 2,918,638,154.04 |
| 1-2 years | 1,804,522,093.79 | 123,650,779.00 |
| 2-3 years | 121,595,000.00 | 1,451,851.51 |
| Over 3 years | 2,770,267.21 | 8,379,322.55 |
| 3-4 years | 691,360.66 | 8,199,590.38 |
| 4-5 years | 1,930,398.55 | 39,000.00 |
| Over 5 years | 148,508.00 | 140,732.17 |
| Total | 5,665,975,752.59 | 3,052,120,107.10 |
3) Other receivables by the method of recognition of allowance for doubtful accounts
In RMB
| Item | Closing balance | Opening balance | ||||||||
| Book balance | Allowance for doubtful accounts | Carrying value | Book balance | Allowance for doubtful accounts | Carrying value | |||||
| Amount | % | Amount | % | Amount | % | Amount | % | |||
| Incl.: | ||||||||||
| Other receivables with allowance recognized collectiv | 5,665,975,752.59 | 100.00% | 3,689,819.54 | 0.09% | 5,662,285,933.05 | 3,052,120,107.10 | 100.00% | 2,595,981.24 | 0.09% | 3,049,524,125.86 |
| ely | ||||||||||
| Incl.: | ||||||||||
| Total | 5,665,975,752.59 | 100.00% | 3,689,819.54 | 0.09% | 5,662,285,933.05 | 3,052,120,107.10 | 100.00% | 2,595,981.24 | 0.09% | 3,049,524,125.86 |
Other receivables with allowance recognized collectively:
In RMB
| Item | Closing balance | ||
| Book balance | Allowance for doubtful accounts | % | |
| Group of related parties within the scope of consolidation | 5,647,610,932.99 | ||
| Aging group | 18,364,819.60 | 3,689,819.54 | |
| Incl.: Within 1 year | 14,798,058.15 | 739,902.91 | 5.00% |
| 1-2 years | 546,494.24 | 54,649.42 | 10.00% |
| 2-3 years | 250,000.00 | 125,000.00 | 50.00% |
| Over 3 years | 2,770,267.21 | 2,770,267.21 | 100.00% |
| Total | 5,665,975,752.59 | 3,689,819.54 | |
Recognition of allowance for doubtful accounts in accordance with the general model of expected credit losses:
In RMB
| Allowance for doubtful accounts | Stage 1 | Stage 2 | Stage 3 | Total |
| 12-month expected credit loss | Lifetime expected credit loss (not credit impaired) | Lifetime expected credit loss (credit impaired) | ||
| Balance on January 1, 2024 | 182,023.10 | 230,577.90 | 2,183,380.24 | 2,595,981.24 |
| In the current period: | ||||
| - Transferred to stage 2 | -6,382.75 | 6,382.75 | ||
| - Transferred to stage 3 | -182,311.23 | 182,311.23 | ||
| Recognized | 564,262.56 | 529,575.74 | 1,093,838.30 | |
| Balance on June 30, 2024 | 739,902.91 | 54,649.42 | 2,895,267.21 | 3,689,819.54 |
4) Allowance for doubtful accounts recognized, recovered or reversed in the current period
5) Other receivables actually written off in the current period
6) Top 5 debtors in terms of closing balance of other receivables
In RMB
| Company name | Nature of account | Closing balance | Age | % of total closing balance of other receivables | Closing balance of allowance for doubtful accounts |
| Mutto Optronics | Current accounts | 1,125,143,324.11 | Within 1 year | 21.00% | |
| Mutto Optronics | Current | 33,047,515.78 | 1-2 years | 0.62% |
| accounts | |||||
| Yancheng Dongshan | Current accounts | 359,676,253.19 | Within 1 year | 6.71% | |
| Yancheng Dongshan | Current accounts | 520,664,694.87 | 1-2 years | 9.72% | |
| Hong Kong Dongshan Holding Limited | Current accounts | 180,782,948.50 | Within 1 year | 3.37% | |
| Hong Kong Dongshan Holding Limited | Current accounts | 344,990,119.22 | 1-2 years | 6.44% | |
| Hong Kong Dongshan Holding Limited | Current accounts | 121,345,000.00 | 2-3years | 2.27% | |
| MFLEX Yancheng | Current accounts | 565,716,111.78 | 1-2 years | 10.56% | |
| Dongguan Dongshan Precision Manufacturing Co., Ltd. | Current accounts | 484,524,251.89 | Within 1 year | 9.04% | |
| Total | 3,735,890,219.34 | 69.73% |
3. Long-term equity investments
In RMB
| Item | Closing balance | Opening balance | ||||
| Book balance | Allowance for impairment loss | Carrying value | Book balance | Allowance for impairment loss | Carrying value | |
| Investments in subsidiaries | 9,551,215,019.51 | 133,690,000.00 | 9,417,525,019.51 | 9,515,272,968.95 | 133,690,000.00 | 9,381,582,968.95 |
| Investments in associates and joint ventures | 99,300,142.92 | 17,507,056.47 | 81,793,086.45 | 102,227,354.08 | 17,507,056.47 | 84,720,297.61 |
| Total | 9,650,515,162.43 | 151,197,056.47 | 9,499,318,105.96 | 9,617,500,323.03 | 151,197,056.47 | 9,466,303,266.56 |
(1) Investments in subsidiaries
In RMB
| Investee | Opening balance (carrying value) | Opening balance of allowance for impairment loss | Changes in the current period | Closing balance (carrying value) | Closing balance of allowance for impairment loss | |||
| Additional investment | Reduced investment | Allowance for impairment loss | Others | |||||
| Dongguan Dongshan Precision Manufacturing Co., Ltd. | 342,000,000.00 | 342,000,000.00 | ||||||
| Hainan Chengjia Technology Consulting Co., Ltd. | 0.00 | |||||||
| MFLEX Shanghai Co., Ltd. | 2,023,777.30 | 2,023,777.30 | ||||||
| Shenzhen Qindao Dongchuang Investment Partnership (L.P.) | 100,000,000.00 | 100,000,000.00 | ||||||
| RF Top Electronic | 372,863,939.84 | 16,115.30 | 372,880,055.14 | |||||
| Suzhou Chengjia Precision Manufacturing Co., Ltd. | 80,104,811.22 | 4,557.02 | 80,109,368.24 | |||||
| Suzhou Dongbo Precision Manufacturing Co., Ltd. | 5,100,000.00 | 5,100,000.00 | ||||||
| Suzhou Dongdai Electronic Tech Co Ltd. | 1,530,000.00 | 1,530,000.00 | ||||||
| Suzhou Dongjiyuan Metal Technology Co., Ltd. | 52,600,000.00 | 52,600,000.00 | ||||||
| Suzhou Dongke Real Estate Co., Ltd. | 152,389,096.00 | 152,389,096.00 | ||||||
| Suzhou Dongkui Lighting Co., Ltd. | 12,100,000.00 | 12,100,000.00 | ||||||
| Suzhou Dongyan Electronic Technology Co., Ltd. | 1,530,000.00 | 1,530,000.00 | ||||||
| Suzhou Jebson Intelligent Technology Co., Ltd. | 255,000.00 | 255,000.00 | ||||||
| Yongchuang Tech | 451,576,726.89 | 5,983.74 | 451,582,710.63 | |||||
| Suzhou Yuanshi Electronic Technology Co., Ltd. | 0.00 | |||||||
| Hong Kong Dongshan | 3,744,565,150.00 | 133,690,000.00 | 3,744,565,150.00 | 133,690,000.00 | ||||
| Hong Kong Dongshan Holding Limited | 452,677,880.00 | 452,677,880.00 | ||||||
| Yancheng Dongshan | 1,093,572,960.50 | 46,650.42 | 1,093,619,610.92 | |||||
| Yancheng | 3,064,464.4 | 2,802.80 | 3,067,267.2 |
| Dongshan Business Management Co., Ltd. | 0 | 0 | ||||||
| Yancheng Dongshan Communication Technology Co., Ltd. | 280,383,770.29 | 17,633.48 | 280,401,403.77 | |||||
| Suzhou JDI | 1,382,684,003.83 | 1,382,684,003.83 | ||||||
| Suzhou Dongshan Industrial Investment Co., Ltd. | 20,010,000.00 | 20,010,000.00 | ||||||
| Shanghai Dongxin New Energy Technology Co., Ltd. | 80,000,000.00 | 80,000,000.00 | ||||||
| Yancheng Dongchuang Precision Manufacturing Co., Ltd. | 270,000,000.00 | 270,000,000.00 | ||||||
| Suzhou Dongyue New Energy Technology Co., Ltd. | 465,000,000.00 | 35,000,000.00 | 500,000,000.00 | |||||
| Multek China | 68,352.66 | 2,971.86 | 71,324.52 | |||||
| Mutto Optronics | 867,088.50 | 36,148.98 | 903,237.48 | |||||
| MFLEX Suzhou | 6,894,726.64 | 298,532.96 | 7,193,259.60 | |||||
| Yancheng Mutto Optronics Technology Co., Ltd. | 45,568.40 | 1,981.24 | 47,549.64 | |||||
| MFLEX Yancheng | 4,298,839.88 | 186,134.44 | 4,484,974.32 | |||||
| Multek Industries | 2,355,919.44 | 102,431.28 | 2,458,350.72 | |||||
| Multek Zhuhai | 287,084.72 | 12,481.96 | 299,566.68 | |||||
| Dowell Smart Suzhou Co., Ltd. | 12,639.46 | 1,576.80 | 14,216.26 | |||||
| Multek Zhuhai Enterprise Management Co., LTD | 721,168.98 | 206,048.28 | 927,217.26 | |||||
| Total | 9,381,582,968.95 | 133,690,000.00 | 35,000,000.00 | 942,050.56 | 9,417,525,019.51 | 133,690,000.00 |
2) Investments in associates and joint ventures
In RMB
| Investee | Opening balance (carrying value) | Opening balance of allowance for impairment loss | Changes in the current period | Closing balance (carrying value) | Closing balance of allowance for impairment loss | |||||||
| Additional investment | Reduced investment | Investment income or loss under equity method | Adjustment to other comprehensive income | Other changes in equity | Declared cash dividends or profit distribution | Allowance for impairment loss | Others | |||||
| I. Joint ventures | ||||||||||||
| II. Associates | ||||||||||||
| Suzhou Toprun Electric Equipment Co., Ltd. | 11,641,777.55 | 19,928.38 | 11,661,705.93 | |||||||||
| Shenzhen Nanfang Blog Technology Development Co., Ltd. | 17,507,056.47 | 17,507,056.47 | ||||||||||
| Shanghai Fu Shan Precision Manufacturing Co., Ltd. | ||||||||||||
| Suzhou LEGATE Intelligent Equipment Co., Ltd. | 12,352,316.96 | -709,687.28 | 11,642,629.68 | |||||||||
| Suzhou Dongcan Optoelectronics Technology Co., Ltd. | 3,797,258.35 | -447,415.62 | 3,349,842.73 | |||||||||
| Jiangsu Nangao Intelligent Equipment Innovation Center Co., Ltd. | 4,259,369.62 | -848,629.79 | 3,410,739.83 | |||||||||
| Jiaozuo Songyang Optoelectric Technology Co., Ltd. | 26,753,781.07 | -232,322.81 | 26,521,458.26 | |||||||||
| Suzhou | 25,915 | - | 25,206 | |||||||||
| Yongxin Jingshang Venture Capital Partnership (L.P.) | ,794.06 | 709,084.04 | ,710.02 | |||||||||
| Subtotal | 84,720,297.61 | 17,507,056.47 | -2,927,211.16 | 81,793,086.45 | 17,507,056.47 | |||||||
| Total | 84,720,297.61 | 17,507,056.47 | -2,927,211.16 | 81,793,086.45 | 17,507,056.47 |
4. Operating revenue and operating costs
In RMB
| Item | Amount for the current period | Amount for the previous period | ||
| Income | Cost | Income | Cost | |
| Primary business | 2,063,759,581.25 | 1,991,893,561.96 | 1,674,220,405.88 | 1,691,465,686.19 |
| Other business | 82,843,913.95 | 25,663,449.45 | 80,118,185.29 | 18,217,479.00 |
| Total | 2,146,603,495.20 | 2,017,557,011.41 | 1,754,338,591.17 | 1,709,683,165.19 |
5. Investment income
In RMB
| Item | Amount for the current period | Amount for the previous period |
| Income from long-term equity investments under cost method | 436,776.92 | |
| Income from long-term equity investments under the equity method | -2,927,211.16 | -633,126.48 |
| Investment income from the disposal of financial assets held for trading | -2,651,138.83 | |
| Total | -5,578,349.99 | -196,349.56 |
XX. Supplementary Information
1. Statement of non-recurring gain or loss for the current period
?Applicable □N/A
In RMB
| Item | Amount | Remark |
| Gain or loss from disposal of non-current assets | -36,219,263.01 | |
| Government grants recognized in profit or loss (excluding the government grants that are closely related to the business of the Company, conform to the applicable policies of the country, are provided in accordance with the established standards, and continuously affect the Company’s profit or loss) | 145,779,443.11 | |
| Gain or loss on changes in fair value of financial assets and financial liabilities held by non-financial entities, and gain or loss on disposal of financial assets and financial liabilities, except for effective hedges held in the ordinary course of | -59,013,703.39 |
| business | ||
| Other non-operating revenues and expenses | 3,644,170.97 | |
| Less: Effect on income tax | 9,842,216.40 | |
| Effect on minority interests (exclusive of tax) | -232,008.40 | |
| Total | 44,580,439.68 | -- |
Other items of gain or loss within the meaning of non-recurring gain or loss:
□Applicable ?N/A
We do not have any other items of gain or loss within the meaning of non-recurring gain or loss.Classification of any item of non-recurring gain or loss defined by the Explanatory Announcement No. 1 on Information Disclosurefor Companies Publicly Offering Securities - Non-recurring gain or Loss as recurring profit or loss:
□Applicable ?N/A
2. Return on equity and earnings per share
| Profit for the reporting period | Weighted average return on net assets | Earnings per share | |
| Basic earnings per share (RMB/share) | Diluted earnings per share (RMB/share) | ||
| Net profit attributable to ordinary shareholders of the Company | 3.09% | 0.33 | 0.33 |
| Net profit attributable to ordinary shareholders of the Company after deduction of non-recurring gain or loss | 2.84% | 0.30 | 0.30 |
3. Differences in accounting data under the CASBEs and overseas accounting standards
(1) Differences in net profit and net assets disclosed in the financial report prepared under the CASBEs andthe IFRS
□Applicable ?N/A
(2) Differences in net profit and net assets disclosed in the financial report prepared under the CASBEs andoverseas accounting standards
□Applicable ?N/A
Suzhou Dongshan Precision Manufacturing Co., Ltd.
Legal Representative: YUAN Yonggang
August 20, 2024