Stock Code: 601689 Abbr.: Tuopu Group
Ningbo Tuopu Group Co., Ltd.
Annual Report 2020
April 2021
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
Important Notes
I. The Board of Directors, Board of Supervisors, Directors, Supervisors and Senior Managementof Ningbo Tuopu Group Co., Ltd. hereby guarantee that the information presented in this reportshall be authentic, accurate and complete and free of any false records, misleading statements ormaterial omissions, and they will bear joint and several liability for such information.
II. All directors attended the meeting of the Board of Directors.
III. BDO China Shu Lun Pan Certified Public Accountants LLP (Special General Partnership)issued a standard and unqualified audit report for the Company.
IV. Wu Jianshu, a person in charge of the Company, Hong Tieyang, an officer in charge ofaccounting work and accounting institution (Accounting Officer) hereby declare and warrant thatthe financial statements in the annual report are authentic, accurate, and complete.
V. The profit distribution plan for the reporting period or the plan for converting public reservefunds into additional share capital after consideration by the Board of DirectorsAs audited by BDO China Shu Lun Pan Certified Public Accountants LLP (Special GeneralPartnership), Ningbo Tuopu Group Co., Ltd. (“The Parent Company”) realized a net profit at RMB620,890,219.47 in 2020, after a statutory surplus reserve at RMB 62,089,021.95 is withdrawn at 10% ofthe realized net profit, the profit available for distribution in the year is RMB 558,801,197.52; with theundistributed profit at the beginning of the year at RMB 2,539,788,223.59 added, and the cash dividendsat RMB 200,447,672.31 distributed in 2020 deducted, the cumulative profit available for distribution atthe end of 2020 is RMB 2,898,141,748.80.
According to the resolution passed at the 6th meeting of the fourth Board of Directors of theCompany, the profit distribution plan laid down for 2020 is: with a total of 1,102,046,572 shares on thedate of plan announcement as the base number, RMB 1.72 per 10 shares (tax included) will bedistributed to all shareholders as cash dividends. Then the gross amount of cash dividends proposed fordistribution is RMB 189,552,010.38 (tax included), in 30.17% of the net profit attributable toshareholders of public company. The remaining undistributed profit rolls over to the next year. TheCompany will not convert any public reserve funds into additional share capital or issue any bonusshares this year.If there is a change in the said total shares in the period from the date of the announcement of profitdistribution plan to the record date for distribution, the Company is prepared to keep the gross amount ofcash dividends as stated above, adjust the proportion of dividend per share, and otherwise announce theparticulars of adjustment.The above profit distribution plan is prospectively submitted to the general meeting of theCompany for consideration.
VI. Risk statement of forward-looking statements
√Applicable □Non-applicable
The forward-looking description of the future development strategy, business plan, performanceforecast and other aspects in relation to the Company as contained herein will not constitute a substantialcommitment to investors. All investors of the Company are advised to be cautious about the investmentrisks.VII. Whether there is any non-operating capital occupation by the controlling shareholder and itsaffiliatesNoVIII. Whether there is any external guarantee provided in violation of the prescribed decisionproceduresNo
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
IX. Whether there are more than half of the directors who cannot guarantee the annual reportdisclosed by the Company as to its authenticity, accuracy and completenessNoX. Significant risk statementThe Company has described the significant risks that may adversely affect the future developmentof the Company and the realization of its business objectives herein. More details are available in"Section IV Discussion and Analysis of Business Conditions" under this report.
XI. Other
√Applicable □Non-applicable
On 28 August 2020, China Securities Regulatory Commission (CSRC) approved the non-publicissuance of A-shares of the Company by issuing the “Approval on non-public issuance of shares byNingbo Tuopu Group Co., Ltd.” (Zheng Jian Permit [2020] No.1982).On 23 February 2021, the Company completed this non-public issuance of shares and go throughthe recording, custody and restricted sales procedures in relation to additional shares in this non-publicissuance at the premises of China Securities Depository and Clearing Corporation Limited ShanghaiBranch.In this non-public issuance, the Company issued 47,058,823 ordinary shares at a price of RMB
42.50/share, the total amount of raised funds is RMB 1,999,999,977.50. With the issuance expense atRMB 21,582,130.76 (tax exclusive) deducted, the net amount of raised funds is RMB 1,978,417,846.74.
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
Contents
Section I Definitions ...... 5
Section II Company Profile and Key Financial Indicators ...... 5
Section III Corporate Business Overview ...... 11
Section IV Discussion and Analysis of Operation Conditions ...... 15
Section V Significant Events ...... 32
Section VI Changes in Common Shares and Shareholders ...... 53
Section VII Information about Preferred Shares ...... 59
Section VIII Directors, Supervisors, Officers and Employees ...... 60
Section IX Corporate Governance ...... 67
Section X Information of Corporate Bonds ...... 70
Section XI Financial Report ...... 71
Section XII Documents Available for Reference ...... 225
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
Section I Definitions
I. DefinitionsIn this report, unless the context requires otherwise, the following words and terms shall be construed as:
| Common terms and definitions | ||
| The Company, issuer, Tuopu | Refers to | Ningbo Tuopu Group Co., Ltd. |
| MECCA HK | Refers to | MECCA INTERNATIONAL HOLDING （HK） LIMITED, the controlling shareholder of the Company |
| Reporting Period | Refers to | From January 1, 2020 to December 31, 2020 |
| Board of Directors, Board of Supervisors, General Meeting of Shareholders | Refers to | Board of Directors, Board of Supervisors, General Meeting of Shareholders of Ningbo Tuopu Group Co., Ltd. |
| 1.00 Yuan, 10,000 Yuan, 100 million Yuan | Refers to | ?1.00, ?10,000.00, ?100,000,000.00 |
| Company Name in Chinese | 宁波拓普集团股份有限公司 |
| Company Abbreviation in Chinese | 拓普集团 |
| Company Name in English | Ningbo Tuopu Group Co.,Ltd. |
| Company Abbreviation in English | Tuopu Group |
| Legal Representative of the Company | Wu Jianshu |
| Security of the Board | Representative of Securities Affairs | |
| Name | Wang Mingzhen | Gong Yuchao |
| Contact Address | 268 Yuwangshan Rd, Beilun District, Ningbo | 268 Yuwangshan Rd, Beilun District, Ningbo |
| Tel. | 0574-86800850 | 0574-86800850 |
| Fax | 0574-86800877 | 0574-86800877 |
| wmz@tuopu.com | gyc@tuopu.com |
| Registered Address of the Company | 268 Yuwangshan Rd, Daqi Street, Beilun District, Ningbo, Zhejiang |
| Postal Code of Registered Address | 315806 |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
| Office Address of the Company | 268 Yuwangshan Rd, Daqi Street, Beilun District, Ningbo, Zhejiang |
| Postal Code of Office Address | 315806 |
| Website | www.tuopu.com |
| tuopu@tuopu.com |
| The Media Selected by the Company for Disclosure | <Securities Times> |
| Website Designated by CSRC for Publishing Annual Report | SSE website (www.sse.com.cn) |
| Location for Annual Report of the Company | Office of Board Secretary |
| Overview of Stock Information | ||||
| Stock Type | Stock Exchange | Stock Abbreviation | Stock Code | Stock Abbreviation Before Change |
| A-share | Shanghai Stock Exchange | Tuopu Group | 601689 | - |
| Accounting firm appointed by the Company (domestic) | Name | BDO China Shu Lun Pan Certified Public Accountants LLP (Special General Partnership) |
| Office Address | 5/F, 61 East Nanjing Rd, Shanghai | |
| Name of Undersigned Accountants | Zhu Wei, Tang Wei | |
| The sponsor institution hired by the company to perform the continuous supervision in the reporting period | Name | China Merchants Securities Co. Ltd |
| Office Address | 111 Fuhua First Rd, Futian Street, Futian District, Shenzhen, Guangdong | |
| Name of undersigned sponsor’s representatives | Xiao Yan, Tan Guotai | |
| Period of continuous supervision | 201From July 26, 2016 to the date of using up the raised funds |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
VIII. Key Acccoutning Data and Financial Indicators over the Past Three Years
(1) Key Acounting Data
Unit：Yuan Currency：RMB
| Key Accounting Data | 2020 | 2019 | Increase/decrease compared with previous year | 2018 | |
| Post-adjustment | Pre-adjustment | ||||
| Operating income | 6,511,094,914.05 | 5,358,953,813.60 | 21.50 | 5,984,017,661.79 | 5,984,017,661.79 |
| Net profit attributable to shareholders of the listed Company | 628,200,888.31 | 456,205,818.45 | 37.70 | 753,316,112.69 | 753,316,112.69 |
| Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses | 574,682,817.67 | 414,524,818.47 | 38.64 | 678,177,958.16 | 678,177,958.16 |
| Net cash flow generated by operational activities | 1,123,685,580.01 | 1,239,421,359.40 | -9.34 | 605,331,546.49 | 605,331,546.49 |
| End of 2020 | End of 2019 | Increase/Decrease at the end of the current year compared with the end of the previous year (%) | End of 2018 | ||
| Post-adjustment | Pre-adjustment | ||||
| Net assets attributable to shareholders of the listed company | 7,786,994,893.67 | 7,375,492,362.88 | 5.58 | 7,220,835,805.87 | 7,220,835,805.87 |
| Total assets | 12,115,228,519.89 | 11,234,314,273.34 | 7.84 | 10,900,694,959.54 | 10,900,694,959.54 |
| Key Financial Indicators | 2020 | 2019 | Increase/Decrease at the end of the current year compared with the end of the previous year (%) | 2018 | |
| Post-adjustment | Pre-adjustment | ||||
| Basic Earnings per Share (RMB/Share) | 0.60 | 0.43 | 39.53 | 0.71 | 1.04 |
| Diluted Earnings per Share (RMB/Share) | 0.60 | 0.43 | 39.53 | 0.71 | 1.04 |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
| Basic Earnings per Share after deducting non-recurring gains and losses (RMB/Share) | 0.54 | 0.39 | 38.46 | 0.64 | 0.93 |
| Weighted Average ROE | 8.29 | 6.25 | Increased by 2.04% | 11.01 | 11.01 |
| Weighted Average ROE after deducting non-recurring gains and losses (%) | 7.58 | 5.68 | Increased by 1.90% | 9.91 | 9.91 |
| Q1 (From January to March) | Q2 (From April to June) | Q3 (From July to September) | Q4 (From October to December) | |
| Operating income | 1,208,384,143.64 | 1,353,631,671.20 | 1,756,645,009.48 | 2,192,434,089.73 |
| Net profit attributable to shareholders of the listed company | 113,693,185.36 | 102,290,053.14 | 171,449,829.91 | 240,767,819.90 |
| Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses | 107,615,907.77 | 90,235,416.32 | 161,358,808.52 | 215,472,685.06 |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
| Net cash flow generated by operating activities | 83,589,140.53 | 403,804,427.13 | 298,420,433.65 | 337,871,578.70 |
| Non-recurring Gains and Losses Items | Amount in 2020 | Note (if applicable) | Amount in 2019 | Amount in 2018 |
| Gains and losses from disposal of non-current assets | 8,703,377.39 | -5,661,936.43 | -728,657.09 | |
| Approval beyond authority, or without formal approval document, or incidental tax rebates, deducts and exempts | ||||
| Government subsidies included in the current profit and loss, but closely associated with the regular business operations of the Company, except for government subsidies that are consistent with national policies and continuously granted at a fixed quota or amount under certain national standard | 34,350,267.41 | XI, VII, 84 | 27,118,972.85 | 22,700,566.96 |
| Payment for the use of funds charged from non-financial enterprises that is included in current profit and loss | ||||
| Income generated from the investment cost of the Company in acquiring subsidiaries, associates and joint ventures that is less than the fair value of the identifiable net assets held by the invested entity at the acquisition of investment | ||||
| Gains and losses from exchange of non-monetary assets | ||||
| Gains and losses from the engagement of others in investment or management | ||||
| Provisions for impairment of various |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
| assets due to force majeure factors including natural disasters | ||||
| Gains and losses from restructuring of debts | ||||
| Expenses incurred in enterprise restructuring, including those incurred in staff placement and integration | ||||
| Gains and losses from the part of transactions whose prices are clearly unfair in excess of the fair value | ||||
| Net profits and losses for the current period from the beginning of the period to the date of the merger arising from a business combination under the same control | ||||
| Profits and losses generated from contingent events that are unrelated to the regular business operations of the Company | ||||
| Profits and losses resulting from the changes in fair value for holding trading financial assets, derivative financial assets and trading financial liabilities, derivative financial liabilities and investment income from disposal of trading financial assets, derivative financial assets, trading financial liabilities, derivative financial liabilities and other obligatory right investments, except for valid hedging businesses associated with the regular business operations of the Company | 18,164,183.51 | 30,527,989.21 | 68,297,157.27 | |
| Reversal of the receivables and contract assets depreciation reserves for separate impairment test | ||||
| Gains and losses from external entrusted loans | 311,202.83 | 626,442.15 | ||
| Profits and losses generated from a change in the fair value of investment real estates that are subsequently measured by the fair value model |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
| Impact of one-off adjustment to the current profit and loss under the requirements of taxation, accounting and other laws and regulations on the current profit and loss | ||||
| Custody fee income from entrusted operations | ||||
| Non-operating income and expenses other than the above | 2,813,550.60 | -3,171,370.86 | -1,699,235.47 | |
| Other gains and losses items that fit the definition of non-recurring gains and losses | ||||
| Impact of minority equity | -312,026.70 | -78,791.53 | -227,419.81 | |
| Impact of income tax | -10,201,281.57 | -7,365,066.09 | -13,830,699.48 | |
| Total | 53,518,070.64 | 41,680,999.98 | 75,138,154.53 |
| Item | Opening Balance | Ending Balance | Changes in Current Period | Impact on Current Profit | |
| Equity instrument investments | 176,111.00 | 176,111.00 | |||
| Total | 176,111.00 | 176,111.00 |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
II. Notes to material changes in the main assets held by the Company during the reporting period
√Applicable □Non-applicable
Including: overseas assets RMB 408,538,187.19 (Unit: Yuan Currency: RMB), in 3.37% of total assets.III. Analysis of core competitiveness during the reporting period
√Applicable □Non-applicable
The Company has been pooling its efforts to enhance core competitiveness, raise the threshold ofcompetition, and construct moat over three decades since its incorporation.
1. Strength of equity.
The Company is run and operated by founder, which in turn maintains the prudence of majordecisions, values long-term benefits and development, makes quick decisions and assures goodexecution. The founder holds a higher percentage of shares, keeps a clear equity structure, exerciseslongstanding control on the Company from the top-level design, in order to keep the Company runningsteadily for a long time and have an ample potential for capital expansion. The members of the Board ofDirectors led by the chairman demonstrate impressive experience, have clear division of work, keep alow profile, keep ambitious and energetic, and use their best endeavors to drive the Company to theforefront of the industry in the right way.
2. Strength of management.
Under the IATF16949 quality system, the Company has established a specific management systemwith typical features through years of innovation efforts. For management structure, the division-basedmanagement structure is laid down for the group, which can relieve the stress of management, highlightthe business operations, improve the efficiency of operation, and lead to relative competition; divisions
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
are subject to the horizontal flat management with sales activities standing in the core, in order to enableorganization to be market-oriented, pool resources and make quick response; business units are subjectto the pyramid organization and enforce standard processes to improve efficiency and reduce cost.
For management system, the Company has established a full set of standard processes, managementsystems and assessment indicators as directed by process, information, standardization, and leanproduction, and is leveraging some information tools such as SAP, PLM, OA, and MES to implementexact processes, which in turn improves the efficiency of management and decision.
For incentive mechanism, the Company lays up a career platform that is adequately authorized forstaff members, in which the Company tapes into internal development and promotion mode that is fairand just, in order to keep the channel of promotion smooth, fit to the growth strategy, and form apositive cycle for business growth and career path.
3. Strength of talents.
The Company puts the screening and training of talents in priority. The post-doctoral workstationwithin the Company solicits and recruits technical specialists globally. Adhering to the concept of“recruiting and promoting members on their merits”, the Company is committed to building acompetitive management team.
The Company encourages for the formation of a learning organization that is fully authorized, andforges a young and experienced international team specialized in sales, R&D activities and productionwho can pave the way for leapfrog development of the Company.
4. Strength of product lines.
With a clear awareness of the industry development, the Company is rolling out the "2+3"industrial mapping: automobile NVH vibration control parts, acoustic system and lightweight Powerchassis system as one of the core in-vehicle systems decides the key performance indicators such ascontrollability and stability, which is subject to technical barriers and capital thresholds. It is the priorityproduct developed by the world’s large automobile parts companies. Power chassis system is composedof subframes, suspensions, and steering knuckles. The Company has cultivated in this sector for nearly20 years, solved and maintained a number of key technologies and processes, and attained morefavorable competitive edge.
EV thermal management system comprises three modules: cabin air conditioning system, batterythermal management system, and electronic control thermal management system. The thermalmanagement system with extraordinary features has integrated the three modules to optimize the use ofenergy and solve the driving range of EV, especially the rapid charge decay in winter and the coldregion. Leveraging the electronic control and precision manufacturing capabilities in R&D activities ofIBS, the Company has developed heat pump assemblies, electronic expansion valves, electronic watervalves, electronic water pumps, gas-liquid separators, and heat exchangers. Thermal managementsystem is an incremental project for EVs, the amount of mounting per vehicle is RMB 6,000-8,000 andthe market scale is enormously large, so more production resources are needed. In addition, theCompany has demonstrated the strength in R&D of overall solution package, system integration andsoftware control.
The intelligent driving system includes the intelligent braking system(IBS), the electric powersteering system(EPS), the electronic vacuum pump (EVP), and intelligent cockpit product. IBS and EPSare considered as the two core executive ends of ADAS, in which IBS is the “bottlenecking project” inChina. The Company is able to provide IBS+EPS solutions for its customers, an integration of IBS andEPS via the domain control unit (DCU) will make it more convenient for communication interface,
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
performance matching, and product calibration, which would in turn substantially reduce the R&Dworkload of carmakers and bring extra values to customers.
The Company has a wide range of product lines which can provide customers with one-stop,system-grade and modularized products and services, and some products are scarce in the global marketof automobile parts, which in turn enhances customer satisfaction and paves the way for the Company toget bigger and stronger.
5. Strength of customer group.
The Company undertakes the mission statement of creating values for its customers and has beengenerally accepted by customers in cooperation. The TUOPU brand reputation has been enhanced, alongwith higher loyalty level of customers. Capitalizing on the core competitiveness generated from QSTP,the Company has established and maintained stable cooperations with domestic and overseas carmakers,and its major customers include GM, Ford, Fiat-Chrysler, Daimler, BMW, Volkswagen, Audi, Honda,Toyota and other global carmakers, as well as some domestic independent brands.
Given the latest trends in the automotive industry, the Company has proactively collaborated withsome leading automakers such as RIVIAN, NIO, Xiaopeng, and Lixiang, experimented the Tier0.5grade cooperation, rendered to customers synchronous R&D and supply services of all product lines, andled a new change in the division of labor.
6. Strength of R&D.
The only way leading to a world-class automobile parts enterprise is to improve capabilities ofR&D and innovation. Sticking to R&D and innovation, the Company was the first participant within theindustry to lay down the forward R&D development strategy as early as twenty years ago. After thetechnological accumulation for years, the Company has demonstrated the system-grade synchronousforward R&D capabilities with respect to five modules and the integrated R&D capabilities of machines,electronic control, and software, and has a number of independent intellectual property rights such asinvention patents. With uninterrupted investments in system construction, recruitment of talents andtesting capacity, the Company maintains the average percentage of annual R&D investments inoperating income at a level about 5%, signaling the continuous improvement of R&D competitiveness.
With R&D centers set up in North America, Europe, Shanghai, Shenzhen, and Ningbo, theCompany is able to provide better services to global customers and recruit quality talents at home andabroad. Thanks to its efforts, the Company has put a scientific research team consisting of nearly 2,000members in place, including more than 100 holders of doctoral and master degrees.
The Company has set up a test center of global excellence which has the testing and validationcapabilities with respect to materials, products, systems and vehicles. With certified CNASISO/IEC17025 system, the Company has been appointed by many automakers to conduct in-vehicletests.
7. Strength of plant layout
The Company has set up manufacturing bases in Ningbo, Chongqing, Wuhan and other placesencircling major automobile industry clusters in China. To render better services to global customers, theCompany has established manufacturing plants or warehouse centers in the United States, Canada,Brazil and Malaysia, the prospective plants in Poland and Mexico are in process. Under this plant layout,the Company is able to render faster and more efficient services to its customers and guarantee thebusiness development on global platforms. In addition, the automobile industry requires a large-suminvestment a in the plant layout, the construction period is long and the complex equipment and processare involved, so it can hardly be replaced like the cellphone industry chain.
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
Under the capacity request and the forecasts, the Company currently has 1,500 mu (1mu=666㎡）lands under construction, and reached a general intention of construction as to 1,500 mu lands, which inturn guarantees the resources for the 2025 development plan.
8. Strength of culture.
The Company undertakes the mission statement of “making our customers, employees,shareholders, the community and partners satisfied, and becomes a corporate citizen of excellence.
The Company gives its employees an access to comfortable workplace, equal interpersonalrelationships, appealing salary and benefits, and an extraordinary career development platform, in orderto tap into the potentials of all employees. The Company has established partnerships with suppliers,respected the business philosophy of seeking equality and win-win results, and driven the commondevelopment of the supply chain. Adhering to the operation concept of legal compliance, the Companyundertakes social responsibility and is committed to infusing positive energy into social development.
The Company values and protects the interests of investors, strictly abides by the rules governinginformation disclosure and other provisions, and distributes dividends to investors even though thecapital expenditures have been increased. All staff members are united to improve operatingperformance, in order to maximize the benefits to investors.
9. Strength of risk control.
The Company keeps the debt-to-equity ratio at low level and has an abundant cash flow. Thewell-established financial system and the strict risk control system can in turn guarantee theimplementation of strategic plan and investment plan, and allow the Company to seek mergers andexpansion whenever appropriate.
Section IV Discussion and Analysis of Operation Conditions
1. Discussion and analysis of operation conditions
In the context of economic downturn in 2020, the automobile industry has been subject to twodrastic changes: first, the dispute over the development track of NEVs has been resolved, legacyautomakers have proceeded to NEVs. Second, despite the sharp decline in production and sales, NEVsstill maintain a good growth, especially in China.
Thanks to the forward-looking layout in NEVs, the Company has maintained a good growth in alloperations and seen increases in income from sales and profit in spite of the economic recession. Moredetails are described as follows:
(1) Marketing and sales.
The Tier0.5 level strategy rolled out by the Company has led to an exemplary success, and theamount of mounting per vehicle is higher. This way of cooperation is expected to be implemented forother customers, the Company is having close negotiations with some customers and has reached anextensive consensus with innovative automakers. Thanks to the product lines, R&D capabilities andother comprehensive factors in NEVs, the Company has been approved by Toyota and Honda asdesignated supplier and receives the order of electronic vacuum pumps from Volkswagen. New ordersreceived in 2020 has increased significantly compared with prior years, which in turn boosts the fast andsustainable development in future.
(2) New project development.
Lightweight chassis is a product widely used on NEVs. With a variety of lightweight chassistechnologies on hands, the Company maintains a privileged presence in the industry. One-piecealuminum alloy vacuum casting chassis has been accepted by customers and supplied in batches.
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
Aluminum alloy casting welded chassis has been approved by FORD and RIVIAN and is ready forsupply in batches.
IBS and EPS are stepping up verification and matching, and are recognized and praised bycustomers.
Leveraging the electronic control and precision manufacturing capabilities in R&D activities of IBS,the Company has developed heat pump assemblies, electronic expansion valves, electronic water valves,electronic water pumps, gas-liquid separators, and heat exchangers, and is quickly bringing theseproducts available in the market.
For NVH vibration control parts and acoustic system, the Company is make efforts to useinnovative materials, processes and equipment in line with the precise needs of NEVs.
(3) Capacity layout.
With respect to new orders, the Company has paced up the speed of capacity layout and promotedthe construction of Xiangtan Base, Phase II and III bases of Ningbo Hangzhou Bay New Area, andYinzhou Production Base of Ningbo as soon as practicable.
(4) Cost control.
During the reporting period, the cost of raw materials and labor services has obviously risen, theCompany implements cost control by purchasing in large quantity, technological innovation, strictbudget control and other measures. Its R&D expenditures have increased dramatically because of manyprojects under development and recruitment of many technological specialists. The need for capacityexpansion and a substantial increase in capital expenditures have led to a drastic increase in thepercentage of depreciation and amortization. In future, R&D cost and capital expenditures are expectedto be diluted with the sales growth, so that a reasonable gross profit level would be maintained.
(5) Intelligent manufacturing.
The Company proceeds digital factory, implements MES management system, enables effectivemanagement in respect of quality control, product traceability, lean production, equipment management,and promotes the interconnectivity between the company-wide data and customer data, in order to buildan smart factory accredited with Industry 4.0.
(6) Equity financing.
The lightweight chassis refinancing project has been approved and the Company issued additionalstocks in February 2021, which in turn enhances the financial strength of the Company and guaranteesthe fast development of the project.
II. Main business operations during the reporting period
As of the end of the reporting period, total assets is RMB 12.115 billion, an increase of 7.84% overthe previous year; total liabilities is RMB 4.328 billion, with debt-to-equity ratio at 35.72%; the owners’attributable to the parent company is RMB 7.787 billion, an increase of 5.58% over the previous year.
During the reporting period, the operating income is RMB 6.511 billion, an increase of 21.50%over the previous year; the net profit attributable to shareholders of public company is RMB 628 million,an increase of 37.70% over the previous year.
(1) Analysis of main business operations
1. Analysis of changes in related subjects of income statement and cash flow statement
Unit: Yuan Currency: RMB
| Subject | Amount in the | Amount in | Change as |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
| current period | previous period | percentage (%) | |
| Operating income | 6,511,094,914.05 | 5,358,953,813.60 | 21.50 |
| Operating cost | 5,034,014,528.39 | 3,949,993,344.06 | 27.44 |
| Cost of sales | 123,896,252.24 | 287,078,723.04 | -56.84 |
| Overhead expenses | 233,071,874.47 | 229,643,454.40 | 1.49 |
| R&D cost | 354,851,747.66 | 314,307,191.22 | 12.90 |
| Financial expenses | 44,118,562.59 | 3,098,025.81 | 1,324.09 |
| Net cash flow from operating activities | 1,123,685,580.01 | 1,239,421,359.40 | -9.34 |
| Net cash flows from investing activities | -587,280,804.65 | -1,026,254,249.95 | NA |
| Net cash flow from financing activities | -564,960,874.38 | -241,140,065.30 | NA |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
2. Analysis of revenue and cost
√Applicable □Non-applicable
The revenue and cost of the Company in 2020 can be summarized as:
(1). Overview of main business operations by industry, product and region
Unit:Yuan Currency:RMB
| Main business operations by industry | ||||||
| By industry | Operating income | Operating cost | Gross profit rate (%) | Increase/Decrease of operating income over the previous year (%) | Increase/Decrease of operating cost over the previous year (%) | Increase/Decrease of gross profit rate over the previous year (%) |
| Automobile parts | 6,293,917,541.95 | 4,961,882,743.49 | 21.16 | 21.81 | 27.55 | Decreased by 5.55% |
| Main business operations by product | ||||||
| By product | Operating income | Operating cost | Gross profit rate (%) | Increase/Decrease of operating income over the previous year (%) | Increase/Decrease of operating cost over the previous year (%) | Increase/Decrease of gross profit rate over the previous year (%) |
| Vibration control system | 2,560,423,000.05 | 1,882,426,992.83 | 26.48 | 9.33 | 13.26 | Decreased by 2.55% |
| Trimming system | 2,224,062,619.20 | 1,824,283,222.51 | 17.98 | 34.82 | 42.59 | Decreased by 4.47% |
| Power chassis system | 1,330,664,135.05 | 1,127,407,190.32 | 15.27 | 27.03 | 31.05 | Decreased by 2.60% |
| Mechatronic system | 178,767,787.65 | 127,765,337.83 | 28.53 | 39.62 | 44.47 | Decreased by 2.40% |
| Main business operations by region | ||||||
| By region | Operating income | Operating cost | Gross profit rate | Increase/Decrease of | Increase/Decrease of | Increase/Decrease of |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
| (%) | operating income over the previous year (%) | operating cost over the previous year (%) | gross profit rate over the previous year (%) | |||
| Overseas | 1,657,519,862.72 | 1,214,464,803.41 | 26.73 | 46.35 | 60.19 | Decreased by 6.33% |
| Domestic | 4,636,397,679.23 | 3,747,417,940.08 | 19.17 | 14.92 | 19.64 | Decreased by 3.19% |
| Main product | Unit | Production output | Quantity sold | Quantity of inventories | Increase/Decrease of production output over the previous year (%) | Increase/Decrease of quantity sold over the previous year(%) | Increase/Decrease of inventories over the previous year(%) |
| Vibration control system | 10,000 sets | 550.84 | 548.27 | 170.95 | 6.08 | 10.27 | 1.53 |
| Trimming system | 10,000 sets | 271.40 | 269.58 | 18.74 | 42.18 | 37.43 | 10.75 |
| Power chassis system | 10,000 sets | 166.95 | 164.48 | 17.25 | 22.31 | 23.99 | 16.73 |
| Mechatronic system | 10,000 sets | 67.20 | 66.46 | 2.87 | 42.65 | 41.70 | 34.89 |
| Summary by industry | |||||||
| By industry | Construction of | Amount in the | As a percentage | Amount in previous | As a | Change in the amount | Remark |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
| cost | current period | of total cost in the current period (%) | year | percentage of total cost in previous year | in the current period as a percentage of previous period (%) | ||
| Automobile parts | Direct cost of material | 3,834,145,459.25 | 77.27 | 2,992,780,159.80 | 76.93 | 28.11 | |
| Automobile parts | Direct cost of labor service | 332,857,963.49 | 6.71 | 274,507,293.54 | 7.06 | 21.26 | |
| Automobile parts | Manufacturing expenses | 794,879,320.74 | 16.02 | 622,951,230.64 | 16.01 | 27.60 | |
| Summary by product | |||||||
| By product | Construction of cost | Amount in the current period | As a percentage of total cost in the current period (%) | Amount in previous year | As a percentage of total cost in previous year | Change in the amount in the current period as a percentage of previous period (%) | Remark |
| Vibration control system | Direct cost of material | 1,407,114,177.14 | 28.36 | 1,242,919,491.57 | 31.95 | 13.21 | |
| Vibration control system | Direct cost of labor service | 152,476,586.42 | 3.07 | 136,292,321.89 | 3.50 | 11.87 | |
| Vibration control system | Manufacturing expenses | 322,836,229.27 | 6.51 | 282,889,672.99 | 7.27 | 14.12 | |
| Trimming system | Direct cost of material | 1,414,731,639.06 | 28.51 | 986,534,121.32 | 25.36 | 43.40 | |
| Trimming system | Direct cost of labor service | 97,599,152.40 | 1.97 | 74,588,171.80 | 1.92 | 30.85 | |
| Trimming system | Manufacturing expenses | 311,952,431.05 | 6.29 | 218,263,157.95 | 5.61 | 42.92 | |
| Power chassis | Direct cost of | 896,288,716.30 | 18.06 | 682,228,161.60 | 17.54 | 31.38 | |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
| system | material | ||||||
| Power chassis system | Direct cost of labor service | 78,016,577.57 | 1.57 | 60,221,905.82 | 1.55 | 29.55 | |
| Power chassis system | Manufacturing expenses | 153,101,896.45 | 3.09 | 117,862,872.81 | 3.03 | 29.90 | |
| Mechatronic system | Direct cost of material | 116,010,926.75 | 2.34 | 81,098,385.31 | 2.08 | 43.05 | |
| Mechatronic system | Direct cost of labor service | 4,765,647.10 | 0.10 | 3,404,894.04 | 0.09 | 39.96 | |
| Mechatronic system | Manufacturing expenses | 6,988,763.98 | 0.14 | 3,935,526.88 | 0.10 | 77.58 |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
(4). Main customers and main suppliers
√Applicable □Non-applicable
The sales amount from the top five customers is RMB 4,048.2756 million, in 62.18% of the annual salesamount; in which, the sales amount from the related parties of the top five customers is 0, in 0% of theannual sales amount.The purchase amount from the top five suppliers is RMB 496.7419 million, in 9.24% of the annualpurchase amount; in which, the purchase amount from the related parties of the top five suppliers is 0, in0% of the annual purchase amount.
3. Expenses
√Applicable □Non-applicable
| Subject | 2020 | 2019 | Change as Percentage (%) | Reason for Change |
| Cost of sales | 123,896,252.24 | 287,078,723.04 | -56.84 | Attributed to the transportation cost and storage cost incurred in the current period recorded into operating cost under the revised revenue standards |
| Overhead expenses | 233,071,874.47 | 229,643,454.40 | 1.49 | Attributed to the increase in depreciation and amortization of the current period |
| R&D cost | 354,851,747.66 | 314,307,191.22 | 12.90 | Attributed to the further extent of R&D innovation and the increase in R&D cost in the current period |
| Financial expenses | 44,118,562.59 | 3,098,025.81 | 1,324.09 | Attributed to the increase in exchange losses during the current period |
| Expendable R&D investment in the current period | 354,851,747.66 |
| Capitalized R&D investment in the current period | 0 |
| Total R&D investment | 354,851,747.66 |
| Total R&D investment as a percentage of operating income (%) | 5.45 |
| Number of R&D members in the Company | 1,729 |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
| Number of R&D members as a percentage of total staff members (%) | 18.96 |
| Percentage of capitalized R&D investment (%) | 0 |
| Item | 2020 | 2019 | Change as percentage (%) | Reason for change |
| Net cash flow from operating activities | 1,123,685,580.01 | 1,239,421,359.40 | -9.34 | Attributed to the increase in the amount of payment due for notes payable in the current period |
| Net cash flow from investing activities | -587,280,804.65 | -1,026,254,249.95 | NA | |
| Net cash flow from financing activities | -564,960,874.38 | -241,140,065.30 | NA |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
(3) Analysis of assets and liabilities
√Applicable □Non-applicable
Assets and liabilities
Unit：Yuan
| Item | Amount at the end of the current period | Amount at the end of the current period as a percentage of total assets (%) | Amount at the end of previous period | （%） Amount at the end of previous period as a percentage of total assets | （%） Change in the amount at the end of the current period as a percentage of the amount at the end of previous period (%) | Remark |
| Trading financial assets | 176,111.00 | 0.00 | 780,000,000.00 | 6.94 | -99.98 | Attributed to the decrease in bank financial management products subscribed by the Company in the current period |
| Notes receivable | 296,283,951.73 | 2.45 | 440,734,534.85 | 3.92 | -32.77 | Attributed to the decrease in bank acceptance notes received by the Company in the current period |
| Notes receivable | 1,783,267,007.65 | 14.72 | 1,357,020,447.94 | 12.08 | 31.41 | Attributed to the substantial increase in the operating income in Q4 of the current period |
| Other receivable | 31,087,166.38 | 0.26 | 13,981,969.00 | 0.12 | 122.34 | Attributed to the increase in deposits and guarantees paid in the current period |
| Construction in | 943,993,396.96 | 7.79 | 611,737,763.71 | 5.45 | 54.31 | Attributed to the increase in plants and equipment |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
| progress | under construction in the current period | |||||
| Other non-current assets | 296,957,402.06 | 2.45 | 97,855,571.08 | 0.87 | 203.46 | Attributed to the increase in received prepayments for construction and equipment in the current period |
| Accounts payable | 1,898,255,116.17 | 15.67 | 1,458,517,214.69 | 12.98 | 30.15 | Attributed to the increase in material purchases in the current period |
| Received Prepayments | 24,717,751.02 | 0.22 | -100.00 | Attributed to the reclassification under the accounting standards | ||
| Contract liabilities | 22,685,660.41 | 0.19 | 100.00 | Attributed to the reclassification under the accounting standards | ||
| Other payable | 15,722,105.17 | 0.13 | 8,181,531.69 | 0.07 | 92.17 | Attributed to the increase in deposits and guarantees received in the current period |
| Non-current liabilities due within 1 year | 62,837,810.76 | 0.56 | -100.00 | Attributed to the repayment of bank loans due in the current period | ||
| Other current liabilities | 1,507,896.52 | 0.01 | 100.00 | Attributed to the reclassification under the accounting standards | ||
| Long-term loans | 182,500,000.00 | 1.62 | -100.00 | Attributed to the repayment of long-term loans in the current period | ||
| Deferred income | 214,204,302.56 | 1.77 | 172,340,145.15 | 1.53 | 24.29 | Attributed to the increase in government grants related to assets received in the current period |
| Other comprehensive income | -20,631,668.74 | NA | -4,380,983.53 | NA | 370.94 | Attributed to the conversion difference of foreign currency financial statements for the current period |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
1. Major asset restrictions as of the end of the reporting period,
√Applicable □Non-applicable
| Item | Book value at the end of the period | Reason for restricted use |
| Monetary Funds | 112,257,224.37 | Margins for bank acceptance notes |
| Notes receivable | 296,225,046.21 | Pledge |
| Inventories | ||
| Fixed Assets | 47,372,168.16 | Mortgage |
| Intangible Assets | 6,804,936.88 | Mortgage |
| Receivable financing | 618,586,352.87 | Pledge |
| Total | 1,081,245,728.49 | / |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
Analysis of Operational Information in Automobile Manufacturing Industry
1. Production capacity
□Applicable √Non-applicable
2. Production output and quantity sold of vehicles
□Applicable √Non-applicable
3. Production output and quantity sold of automobile parts
√Applicable □Non-applicable
Categorized by parts
√Applicable □Non-applicable
| Quantity sold | Production output | |||||
| Category of parts | Cumulative amount in the current year | Cumulative amount in previous year | Cumulative increase/decrease as a percentage of previous year (%) | Cumulative amount in the current year | Cumulative amount in previous year | Cumulative increase/decrease as a percentage of previous year (%) |
| Vibration control system | 548.27 | 497.21 | 10.27 | 550.84 | 519.26 | 6.08 |
| Trimming system | 269.58 | 196.15 | 37.43 | 271.40 | 190.89 | 42.18 |
| Power chassis system | 164.48 | 132.66 | 23.99 | 166.95 | 136.50 | 22.31 |
| Mechatronic system | 66.46 | 46.90 | 41.70 | 67.20 | 47.11 | 42.65 |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
(2) Significant non-equity investment
□Applicable √Non-applicable
1. Condition of purchased land
(1) In May 2020, Ningbo Tuopu Mechatronic System Co., Ltd., a wholly-owned subsidiary of the Company, was awarded the right to use about 135 mu state-ownedconstruction land in Hangzhou Bay New Zone, Ningbo, at a consideration of RMB 27.06 million in bidding process.
(2) In July 2020, Ningbo Tuopu Chassis System Co., Ltd., a wholly-owned subsidiary of the Company, was awarded the right to use about 197 mu state-ownedconstruction land in Yinzhou Development Zone, Ningbo, at a consideration of RMB 64.75 million in bidding process.
(3) In December 2020, Tuopu EV Thermal Management System (Ningbo) Co., Ltd., a wholly-owned subsidiary of the Company, was awarded the right to use 302mu state-owned construction land in Hangzhou Bay New Zone, Ningbo, at a consideration of RMB 60.4 million in bidding process.
2. Updates of investments
| NO. | Date of Signing | Reference number of announcement | Title of announcement | Main content | Update of event |
| 1 | November 2016 | 2016-076 | Tuopu Group’s announcement on the investment agreement signed with Hangzhou Bay New Zone | The Company signed the "Investment Agreement" with the Development and Construction Management Committee of Ningbo Hangzhou Bay New Zone, and prospectively invests and constructs a production base intended for the automobile parts production project in Ningbo Hangzhou Bay New Zone. | In January 2017, Ningbo Tuopu Mechatronic System Co., Ltd., a wholly-owned subsidiary of the Company, was awarded the right to use about 503 mu state-owned construction land in Hangzhou Bay New Zone, Ningbo (Phase I), at a consideration of RMB 84.55 million in bidding process, and this project has been completed and put into operation. In May 2020, Ningbo Tuopu Mechatronic System Co., Ltd., a wholly-owned subsidiary of the Company, was awarded the right to use about 135 mu state-owned construction land in Hangzhou Bay New Zone, Ningbo (Phase II), at a consideration of RMB 27.06 million in bidding process, which is intended for implementing the "Hangzhou Bay Phase II Lightweight Power Chassis System Module Project" as a non-public offering equity investment project in 2020. To date, the main works have been substantially completed and it proceeds to the equipment installation. |
| 2 | January 2018 | 2018-002 | Tuopu Group’s announcement on the investment intent agreement | The Company and the Administration Committee of Xiangtan Economic and Technological Development Zone signed the "Investment and Entry Contract" in |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
| signed in Xiangtan | relation to Hunan Production Base Project, and prospectively constructs the trimming system project with an annual capacity of 300,000 sets and the chassis system production base project with an annual capacity of 600,000 sets in Xiangtan Economic and Technological Development Zone. | is intended for implementing "Hunan Factory Lightweight Power Chassis System Module Project" as a non-public offering equity investment project in 2020. To date, the main works have been substantially completed and it proceeds to the floor construction phase. | |||
| 3 | February 2018 | 2018-004 | Tuopu Group’s announcement on the investment intent agreement signed by its wholly-owned Subsidiary | Taizhou Tuopu Automobile Parts Co., Ltd., a wholly-owned subsidiary of the Company, signed the "Investment Attraction Agreement" with the Administration Committee of Toumen Port Economic Development Zone of Zhejiang, and prospectively invests and constructs the NVH trimming system project with an annual capacity of 300,000 sets in Toumen Port Economic Development Zone. | In February 2018, Taizhou Tuopu Auto Parts Co., Ltd. was awarded the right to use about 47 mu state-owned construction land in Toumen Port Economic Development Zone, Linhai, at a consideration of RMB 16 million. To date, the plant works have been completed and it proceeds to the equipment acceptance and installation phase. |
| 4 | November 2018 | 2018-049 | Tuopu Group’s announcement on the investment intent agreement signed in Baoji | Baoji Tuopu Maigao Automobile Parts Co., Ltd., a wholly-owned subsidiary of the Company, signed the "Memorandum" with the Administration Committee of Baoji High-tech Industrial Development Zone, and prospectively invests and constructs the automobile parts production base Baoji High-tech Industrial Development Zone. | Terminated. |
Ningbo Tuopu Group Co., Ltd.Annual Report 2020
(3) Financial assets measured at fair value
□Applicable √Non-applicable
(6) Disposal of major assets and equity
□Applicable √Non-applicable
(7) Analysis of major controlling and participating companies
√Applicable □Non-applicable
Unit：in 10,000 Yuan Currency：RMB
| Company name | Registered capital | Total assets in the reporting period | Total liabilities in the reporting period | Total net assets in the reporting period | Operating income in the reporting period | Net profit in the current period |
| Ningbo Intelligent Brake | 5,000.00 | 4,891.44 | 1,167.41 | 3,724.03 | 18,076.98 | 205.75 |
| Tuopu Imp&Exp. | 20,000.00 | 16,974.48 | 2,957.43 | 14,017.05 | 125,972.70 | -4,069.50 |
| Tuopu Parts | 20,000.00 | 94,491.79 | 73,452.45 | 21,039.34 | 264,534.14 | 197.37 |
| Tuopu Acoustics Vibration | 20,000.00 | 72,264.57 | 57,185.63 | 15,078.94 | 213,387.10 | -1,718.33 |
| Sichuan Tuopu | 2,000.00 | 6,451.65 | 4,278.68 | 2,172.97 | 16,659.00 | 625.98 |
| Yantai Tuopu | 6,280.00 | 8,073.80 | 2,397.76 | 5,676.04 | 9,339.93 | 201.97 |
| Pinghu Tuopu | 20,800.00 | 27,947.60 | 10,860.99 | 17,086.61 | 32,528.56 | 1,142.12 |
| Sichuan Maigao | 15,000.00 | 24,200.98 | 4,806.53 | 19,394.45 | 21,111.11 | -13.86 |
| Zhejiang Towin | 18,000.00 | 55,508.97 | 11,636.98 | 43,871.99 | 36,221.32 | 1,497.65 |
| Tuopu Mechatronic System | 150,000.00 | 219,234.27 | 53,324.47 | 165,909.80 | 138,495.59 | 16,636.14 |
| Ningbo Qianhui | 2,725.86 | 9,077.96 | 2,412.51 | 6,665.45 | 6,462.02 | 475.81 |
| Tuopu North American Ltd | 5.00 | 9,954.30 | 10,207.58 | -253.28 | 38,874.81 | -98.60 |
| Tuopu Electrical Appliances | 5,000.00 | 17,507.11 | 4,963.22 | 12,543.89 | 10,895.21 | 1,475.88 |
| Ningbo Borgers | 2,100.00 | 22,934.33 | 7,360.85 | 15,573.47 | 40,165.02 | 3,126.45 |
| Antolin Tuopu | 1,464.22 | 8,074.33 | 5,346.72 | 2,727.62 | 11,522.61 | 20.72 |
Ningbo Tuopu Group Co., Ltd.Annual Report 2020
In addition, automakers, ICT enterprises and the government are advised to identify their presences,interact and integrate each other ranging from smart cars to smart transportation, smart city, to smartcommunity, which in turn occupies enormous resources of automakers.
2. The need for the revolution of industrial value chain. The future features software anddata-defined vehicles. The core value, competitiveness and value added of automakers is to control andoperate data, thus fueling on the automatic evolution of cars and intelligent driving. The traditional drive,operating stability and other characteristics of cars tend to be homogenized, automobile software andhardware are separated from each other, and automobile hardware is more standard. With some changeshappened in the industry value chain in the new age of automobiles, automakers are advised to focus onthe areas that create core value added.
3. The need for cost reduction. Over a century, the legacy automobile industry is susceptible toredundancy, complex process, refined division of labor forces, unaffordable cost, and low efficiency.Innovative carmakers cross the boundaries of the legacy automobile industry in respect of capital,resources, and accumulated experience, but capitalize on the strengths of platform-based partsmanufacturers for R&D capabilities, R&D resources and testing competence, which would in turn helpthem streamline size, reduce cost, improve efficiency and enhance competitiveness.
4. The inherent demand for the revolution of the automobile industry chain. Firstly, aslarge-scale international manufacturers are engaged in supplying parts to legacy models, there is nocapacity and funds available for NEVs, the business transformation may end up with a failure; secondly,SMEs may feel pressure on rising costs and meager profit, it is not feasible to stay on the track ofinnovation and development. The only way is to seeking integration.
(2) Development strategy of the Company
√Applicable □Non-applicable
In the new age featuring drastic changes in the automotive industry, the Company is committed tobecoming a large-scale, technology-intensive, and platform-based supplier with a wide range ofindustrial layout, intensive product technologies, impressive R&D capabilities, and resourceful customergroups, establishing Tier0.5 grade cooperation with customers, leading a change in the relationshipbetween parts suppliers and automakers, striving to be a domestic giant in the field of auto parts and aglobal auto parts manufacturer, empowering the industrial development of NEVs, and contributing to theinitiative of peak carbon dioxide emissions and carbon neutrality.
1. Product strategy. To provide customers with one-stop, system-level, modularized products andservices, kill the pain points caused by major changes in the automobile industry, and enhance customersatisfaction and loyalty, the Company is rolling out "2+3" Industrial strategy, maintaining the privilegedpresence of the automobile NVH vibration control parts and acoustic system in home market, andprospectively laying out the lightweight power chassis system, thermal management system, andintelligent driving system. With a wide array of product lines, the amount of mounting per vehicle is upto RMB 15,000, which would pave the way for rapid growth of the Company in the next decade and itsproduct lines are further extended.
2. Market strategy. Capitalizing on strength of product lines, R&D strength and QSTP overall strength(Quality, Service, Technology, Price), the Company is constructing the new Tier0.5 supply chain model,and increasing the average amount of mounting per vehicle from RMB 5,000 to RMB 10,000. TheCompany is boosting the business growth in Japanese cars market and European cars market. Theeffective development of the above market will be a significant growth pole for rapid development of theCompany in future.
3. Operation strategy. The Company continues to promote digital operations and digital manufacturing,build an Industry 4.0 Smart Factory, and enhances own competitiveness. The Company rolls out thestrategy of concurrent strategy of endogenous growth and mergers and acquisitions, adheres to businessstartup within the company, and never gives up any chance of making value-added merger andacquisition.
(3) Business operation plan
√Applicable □Non-applicable
In 2021, the Company will further develop the market, pace up the project mass production,enhance management, control cost, fuel on the rapid development and prepare for attaining the mid-termstrategic goal in accordance with the predefined strategy.
Ningbo Tuopu Group Co., Ltd.Annual Report 2020
1. Sales and marketing. Capitalizing on the overall strengths, the Company continues to promotethe Tier 0.5 level cooperation, and expand the innovative automakers and the international and domesticbusiness operations.
2. New project development. Increase R&D investments, implement the project and attain theproduction target, and further expand product lines.
3. Capacity layout. In 2021, the Company is expected to complete 1,500 mu plant project underconstruction and kick off the planning work for the next industrial park covering 1,500 mu.
4. Cost control. Promote the budget control system and lean production system, and reduce cost.
5. Digital factory. Promote the construction of digital plant as role model. Other works includingquality control, lean production and system innovation are in process.
6. Profit forecast. It is estimated that the annual operating income and the net profit will reachRMB 12 billion and 1.2-15 billion, respectively.
The Company brings the attention of investors to: the performance forecast does not represent itscommitment to investors, whether it can be realized or not depends on plenty of variable factors such asmacro policies and market conditions. Investors are advised to notice the potential risks.
(4) Potential risks
√Applicable □Non-applicable
1. The Company makes large-sum investments in NEVs industry chain, and capital expenditureshave increased significantly year by year. If the development direction of NEVs becomes ambiguous, itsfixed assets can hardly be returned, the surging percentage of depreciation and amortization will exposeit to an enormous risk.
2. The Company is expected to resolve other risks such as exchange rate, tariffs, raw material pricefluctuations by enhancing its overall competitiveness.
(5) Others
□Applicable √Non-applicable
IV. The Company fails to make disclosure in accordance with the standards and the reasons forsuch failure
□Applicable √Non-applicable
Section V Significant EventsI. The plan for the profit distribution of common stocks or the transfer of capital reserves
(1) The making, implementation or adjustment of cash dividend policy
√Applicable □Non-applicable
To maintain the continuity and stability of the profit distribution policy, make the transparency andoperability of dividend distribution decisions more transparent and viable, and protect the legitimaterights and interests of small and medium shareholders, the Company drafted the “Plan for DividendDistribution to Shareholders in the Next Three Years (2018-2020)” under the relevant regulationsreleased by CSRC, SSE and other authorities, as well as the “Articles of Association”, which wasconsidered and passed at the general meeting of 2018. The above plan was disclosed on SSE website on20 April 2018.
The above plan sets out: if the Company is available for distributing cash dividends, then it isprioritized to distribute dividends in cash. Profit can be distributed in cash, stocks or a combination ofboth. Where the conditions for dividend distribution are satisfied, with an adequate amount of statutoryreserve funds and surplus reserve funds retained, if there is no event of significant cash expenditures, theprofit distributed in cash in a single year shall be in principle no less than 30% of the profit available fordistribution in the current year.
The Company is strictly implementing the above plan of dividend distribution to shareholders.
Ningbo Tuopu Group Co., Ltd.Annual Report 2020
(2) The dividend distribution plan or response plan of common stocks, the plan or response planof capital reserves converted into additional shares in the past three years (including the reportingperiod)
Unit：Yuan Currency：RMB
| Dividend distribution year | Number of bonus issues (stocks) every 10 shares | Number of dividends distributed (Yuan) (with tax included) every 10 shares | Number of additional shares (stocks) every 10 shares | Amount of cash dividends (with tax included) | Net profit attributable to common shareholders of public company in the consolidated statement of dividend distribution year | attributable to common shareholders of public company as a percentage in the consolidated statement (%) |
| 2020 | 0 | 1.72 | 0 | 189,552,010.38 | 628,200,888.31 | 30.17 |
| 2019 | 0 | 1.90 | 0 | 200,447,672.31 | 456,205,818.45 | 43.94 |
| 2018 | 0 | 4.12 | 4.5 | 299,762,036.30 | 753,316,112.69 | 39.79 |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
II. Performance of commitments
(1) Commitments made by actual controllers, shareholders, related parties, acquirers of the Company, and the Company and other related partiesmaking commitments during the reporting period or continuing to the reporting period
√Applicable □Non-applicable
| Background of commitment | Type of commitment | Committed by | Content of commitment | Date and deadline of commitment | Whether there is a deadline for performance | Whether performed strictly and timely | If such commitments cannot be completed timely, state the specific reason | If such commitments cannot be completed timely, state the next plan |
| Commitment related to the share reform | ||||||||
| Commitment made in the report of acquisition or the report of equity change | ||||||||
| Commitment related to significant asset restructuring | ||||||||
| Commitment related to IPO | Restricted sale of shares | MECCA INTERNATIONAL HOLDING （HK） LIMITED | Within 36 months from the date of listing, it is prohibited to transfer or entrust any other person to manage the shares of Tuopu Group held prior to this issuance, Tuopu Group is not allowed to repurchase such shares held by the Company; if the shares | March 2015, 36 months | Yes | Yes | NA | NA |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
| held by the Company reduce within two years after the expiry of the lock-up period, the price at which the shares are reduced must not be lower than the issue price; if the closing price of shares is lower than the issue price for 20 trading days in a row within 6 months after Tuopu Group goes listed, or the closing price at the end of the 6-month period after the day of listing is lower than the issue price, the lock-up period in respect of the shares held by the Company shall automatically extend by 6 months. | ||||||||
| Commitment related to IPO | Restricted sale of shares | MECCA INTERNATIONAL HOLDING （HK） LIMITED | If the issuer’s shares are reduced within two years after the expiry of the lock-up period, total shares cumulatively reduced in a year shall not exceed 5% of the issuer’s shares after this issuance; the reduction of shares held is required to comply with applicable laws and regulations and the provisions of SSE, the shares held can be reduced by centralized price bidding on secondary market and other legal means approved by SSE; the price at which the shares held are reduced shall not be lower than the issue price (if the issuer’s shares are subject to distribution of dividends, issuance of bonus shares, transfer of capital reserves into additional shares and other ex-right and ex-dividend events, the issue price shall be treated as appropriate). If the issuer’s shares | March 2015, 5 years | Yes | Yes | NA | NA |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
| withhold a part of the cash dividends payable to MECCA (HK) bearing the amount equivalent to the proceeds from the violating reduction shall be owned by the issuer. | ||||||||
| Commitment related to refinancing | Restricted sale of shares | Wu Jianshu | The shares subscribed for this non-public offering of the Company must not be transferred within 36 months from the date of listing of additional shares. After the expiry of the period of restricted sales, subject to the provisions of CSRC and SSE. | September 2016, 36 months | Yes | Yes | NA | NA |
| Commitment related to refinancing | intratype competition | MECCA INTERNATIONAL HOLDING （HK） LIMITED | 1. The Company/Enterprise does not have, and will not be directly or indirectly engaged in, or by any form including but not limited to holding, participating of shares, joint venture, associate partnership, lease, agent operation, trust or other similar form engage in any operation or activity that may have constituted or substantially constitute a current or potential competition against the existing and future operations of Tuopu Group and its holding subsidiaries. 2. For companies and economic entities directly or indirectly controlled by the Company/Enterprise, the Company/Enterprise will procure such companies and economic entities to perform the obligations of avoiding competition as contained in the letter of commitment having equivalent standards to the | June 2016, continuous | Yes | Yes | NA | NA |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
| prompt and sufficient. 5. This letter of commitment shall remain in force and effect whenever the Company/Enterprise and any company controlled by the Company/Enterprise are related to Tuopu Group. | ||||||||
| Commitment related to refinancing | Resolve intratype competition | Wu Jianshu | 1. I does not have, and will not be directly or indirectly engaged in, or by any form including but not limited to holding, participating of shares, joint venture, associate partnership, lease, agent operation, trust or other similar form engage in any operation or activity that may have constituted or substantially constitute a current or potential competition against the existing and future operations of Tuopu Group and its holding subsidiaries. 2. For companies and economic entities directly or indirectly controlled by I, I will procure such companies and economic entities to perform the obligations of avoiding competition as contained in the letter of commitment having equivalent standards to I by sending out institutions and persons (including but not limited to directors, managing directors, financial officers) or by gaining the controlling status (e.g.: shareholders’ rights, directors’ rights), so as to keep such companies and economic entities from | June 2016, continuous | Yes | Yes | NA | NA |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
| competing against Tuopu Group and its subsidiaries. 3. If any change in policies and regulations or other reasons that are not attributable to I unavoidably causes other companies or economic entities controlled by Company/Enterprise or any company or economic entity that I may impose significant impact has constituted or may potentially constitute competition, Tuopu Group shall have the right of first refusal as to the trusted management (contracting operation, leasing operation) or acquisition in respect of such operations that have constituted or may potentially constitute competition. 4. The above commitments are unconditional, if a violation of the above commitments inflicts any financial loss to Tuopu Group, I will indemnify other shareholders or interested parties of Tuopu Group against such losses as comprehensive, prompt and sufficient. 5. This letter of commitment shall remain in force and effect whenever I and any company controlled by I are related to Tuopu Group. | ||||||||
| Commitment related to refinancing | Restricted sale of shares | 14 specific investors including New China Asset Management Co., Ltd. | The shares subscribed by New China Asset Management Co., Ltd., UBS AG, CITIC Securities Co., Ltd. (Self-run), China Securities Co., Ltd., HFT Investment Management Co., | February 2021, 6 months | Yes | Yes | NA | NA |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
| Ltd., CITIC Securities Co., Ltd. (Asset Management), New China Fund Management Co., Ltd., China Galaxy Securities Co., Ltd., Huaneng Guicheng Trust Co., Ltd., Goldman Sachs & Co. LLC, MORGAN STANLEY & CO. INTERNATIONAL PLC., Zhejiang Zhonghao Investment Co., Ltd., Chengdu Fusen-Noble House Co., Ltd., Beijing Renaissance Era Investment Management Co., Ltd. as 14 specific issuance targets are locked for 6 months from the date of end of non-public issuance. | ||||||||
| Commitment related to equity incentives | ||||||||
| Other commitments made to the small and medium shareholders of the Company | ||||||||
| Other commitments | ||||||||
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
(2) There is an expected profit as to the assets or projects of the Company, and the reportingperiod still falls in the profit expectation period, the Company states whether the assets or projectsattain the original profit expectation and gives the reason
□Attained □Not attained √Non-applicable
(3) The status of performance of commitments and its impact on the goodwill impairment test
□Applicable √Non-applicable
III. Occupancy of funds and progress of debt clearing during the reporting period
□Applicable √Non-applicable
IV. Notes of the Company to the "Modified Audit Opinion Report" Released by the AccountingFirm
□Applicable √Non-applicable
V. Notes to Analysis of the Reasons and Impact of Changes in Accounting Policies, AccountingEstimates or Corrections of Major Accounting Errors
(1) Notes to analysis of the Reasons and Impact of Changes in Accounting Policies or AccountingEstimates
√Applicable □Non-applicable
In 2017, the Ministry of Finance revised the "Accounting Standards for Business Enterprises No.14-Revenue". The revised standards stipulates that when these standards are initially applied, the amountof retained earnings and other related items as contained in the financial statements should be adjustedaccording to the cumulative impact, and the information for the comparable period is not adjusted.
The Company adopts the revised revenue standards from January 1, 2020. Under these standards,when these standards are initially applied, the amount of retained earnings in the early 2020 and otherrelated items as contained in the financial statements should be adjusted according to the cumulativeimpact, and the information for the comparable period is not adjusted.
(2) Notes to Analysis of the Reasons and Impact of the Correction of Major Accounting Errors
□Applicable √Non-applicable
(3) Communication with the Former Accounting Firm
□Applicable √Non-applicable
(4) Other Notes
□Applicable √Non-applicable
VI. Appointment and Dismissal of Accounting Firm
Unit：in 10,000 Yuan Currency：RMB
| Current Accounting Firm | |
| Name of domestic accounting firm | BDO China Shu Lun Pan Certified Public Accountants LLP (Special General Partnership) |
| Remuneration paid to domestic accounting firm | 160 |
| Audit period of domestic accounting firm | 10 |
| Name | Remuneration | |
| Accounting firm responsible for internal control audit | BDO China Shu Lun Pan Certified Public Accountants LLP (Special General Partnership) | 30 |
| Sponsor | China Merchants Securities Co. Ltd | NA |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
appointment of BDO China Shu Lun Pan Certified Public Accountants LLP (Special GeneralPartnership) as the audit institution, who will provide audit and internal control audit services of thefinancial report of 2020 for the Company.Notes to change of accounting firm during the reporting period
□Applicable √Non-applicable
VII. Exposure to the risk of suspension of listing
(1) Reason for suspension of listing
□Applicable √Non-applicable
(2) Proposed responses by the Company
□Applicable √Non-applicable
VIII. Exposure to the risk of delisting and the reason behind it
□Applicable √Non-applicable
IX. Events concerning bankruptcy and reorganization
□Applicable √Non-applicable
X. Significant Lawsuits and Arbitrations
□The Company is involved in any significant lawsuits and arbitrations in the current year √TheCompany is not involved in any significant lawsuits and arbitrations in the current year
XI. Penalties and Rectification of Listed Company and Its Directors, Supervisors, SeniorManagers, Controlling Shareholders, Actual Controllers, and Acquirers
□Applicable √Non-applicable
XII. Notes to the Credit Standing of the Company and Its Controlling Shareholders and ActualControllers during the Reporting Period
□Applicable √Non-applicable
XIII. Conditions and Impact of Equity Incentive Plan, ESOP(employee stock ownership plan) orOther Employee Incentive Measures of the Company
(1) Related incentive events have been disclosed in the provisional announcement and there is noprogress or change in subsequent implementation
□Applicable √Non-applicable
(2) Incentives that are not disclosed in the provisional announcement or there is a progress insubsequent implementationConditions of equity incentives
□Applicable √Non-applicable
Other Notes
□Applicable √Non-applicable
ESOP
□Applicable √Non-applicable
Other incentive measures
□Applicable √Non-applicable
XIV. Significant Related-party Transactions
(1) Related-party transactions related to daily operations
1. Events that have been disclosed in the provisional announcement and there is no progress orchange in subsequent implementation
□Applicable √Non-applicable
2. Events that have been disclosed in the provisional announcement, but there is no progress orchange in subsequent implementation
□Applicable √Non-applicable
3. Events that are not disclosed in the provisional announcement
□Applicable √Non-applicable
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
(2) Related-party transactions in the acquisition or sale of assets or equity
1. Events that have been disclosed in the provisional announcement and there is no progress orchanges in subsequent implementation
□Applicable √Non-applicable
2. Events that have been disclosed in the provisional announcement, but there is a progress orchange in subsequent implementation
□Applicable √Non-applicable
3. Events that are not disclosed in the provisional announcement
□Applicable √Non-applicable
4. Where there is a performance agreement involved, the performance achieved during thereporting period shall be disclosed
□Applicable √Non-applicable
(3) Significant related-party transactions of joint external investment
1. Events that have been disclosed in the provisional announcement and there is no progress orchanges in subsequent implementation
□Applicable √Non-applicable
2. Events that have been disclosed in the provisional announcement, but there are progress orchanges in subsequent implementation
□Applicable √Non-applicable
3. Events that are not disclosed in the provisional announcement
□Applicable √Non-applicable
(4) Related credits and liabilities
1. Events that have been disclosed in the provisional announcement, but there is no progress orchange in subsequent implementation
□Applicable √Non-applicable
2. Events that have been disclosed in the provisional announcement, but there is a progress orchange in subsequent implementation
□Applicable √Non-applicable
3. Events that have not been disclosed in the provisional announcement
□Applicable √Non-applicable
(5) Others
□Applicable √Non-applicable
XV. Significant Contracts and Performance of Contracts
(1) Events of trusteeship, contracting and leasing
1. Trusteeship
□Applicable √Non-applicable
2. Contracting
□Applicable √Non-applicable
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
3. Leasing
□Applicable √Non-applicable
(2) Guarantee
□Applicable √Non-applicable
(3) Entrusting others to manage cash assets
1. Entrusted financial management
(1) General conditions of entrusted financial management
√Applicable □Non-applicable
Unit：in 10,000 Yuan Currency：RMB
| Type | Source of funds | Amount incurred | Unmatured amount | Unrecovered amount after the maturity |
| Structured deposits | Raised funds | 84,000.00 | 0 | 0 |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
(2) Individual entrusted financial management
√Applicable □Non-applicable
Unit:10000Yuan Currency: RMB
| Trustee | Type of entrusted financial management | Amount of entrusted financial management | Start date of entrusted financial management | End date of entrusted financial management | Source of funds | Use of funds | Method of fixing returns | Annualized returns | Expected returns (if any) | Actual returns or losses | Actual recovery | If subject to statutory procedure | If there is any entrusted financial management plan | Extent of impairment provision (if any) |
| SPDB Ningbo Economic and Technological Development Zone Sub-branch | Structured deposits | 10,000.00 | 2020/4/15 | 2020/7/15 | Raised funds | Guaranteed non-fixed returns | 3.75% | 92.71 | 10,000.00 | Yes | ||||
| SPDB Ningbo Economic and Technological Development Zone Sub-branch | Structured deposits | 14,000.00 | 2020/4/15 | 2020/7/15 | Raised funds | Guaranteed non-fixed returns | 3.75% | 129.79 | 14,000.00 | Yes | ||||
| SPDB Ningbo Economic and Technological Development Zone Sub-branch | Structured deposits | 14,000.00 | 2020/6/23 | 2020/9/22 | Raised funds | Guaranteed non-fixed returns | 3.30% | 114.22 | 14,000.00 | Yes | ||||
| SPDB Ningbo Economic and Technological | Structured depos | 12,000.00 | 2020/6/29 | 2020/9/28 | Raised funds | 3.30% | 99.00 | 12,000.00 | Yes |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
| Development Zone Sub-branch | its | |||||||||||||
| SPDB Ningbo Economic and Technological Development Zone Sub-branch | Structured deposits | 5,000.00 | 2020/6/29 | 2020/9/28 | Raised funds | Guaranteed non-fixed returns | 3.30% | 41.25 | 5,000.00 | Yes | ||||
| SPDB Ningbo Economic and Technological Development Zone Sub-branch | Structured deposits | 5,000.00 | 2020/7/8 | 2020/10/9 | Raised funds | Guaranteed non-fixed returns | 3.20% | 40.00 | 5,000.00 | Yes | ||||
| SPDB Ningbo Economic and Technological Development Zone Sub-branch | Structured deposits | 16,000.00 | 2020/9/24 | 2020/12/24 | Raised funds | Guaranteed non-fixed returns | 3.10% | 124.00 | 16,000.00 | Yes | ||||
| SPDB Ningbo Economic and Technological Development Zone Sub-branch | Structured deposits | 8,000.00 | 2020/9/28 | 2020/12/28 | Raised funds | Guaranteed non-fixed returns | 3.10% | 62.00 | 8,000.00 | Yes |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
(3) Impairment provision for entrusted financial management
□Applicable √Non-applicable
2. Conditions of entrusted loans
(1) General conditions of entrusted loans
□Applicable √Non-applicable
Other conditions
□Applicable √Non-applicable
(2) Individual entrusted loans
□Applicable √Non-applicable
Other Conditions
□Applicable √Non-applicable
(3) Impairment provision for entrusted loans
□Applicable √Non-applicable
3. Other Conditions
□Applicable √Non-applicable
(4) Other Significant Contracts
□Applicable √Non-applicable
XVI. Notes to Other Significant Events
□Applicable √Non-applicable
XVII. Proactive Performance of Social Responsibilities
(1) Poverty relief condition of listed company
□Applicable √Non-applicable
(2) Fulfillment of social responsibility
√Applicable □Non-applicable
1. Conduct business in accordance with laws and regulations, and protect the legitimate rights andinterests of all shareholders and related parties.During the reporting period, the Company strictly followed the "Company Law", "Securities Law",the applicable regulations of CSRC and SSE and the provisions under the "Articles of Association" ,establish the corporate governance structure well, improve the internal control system, run the internalcontrol system effectively, and the general meeting, Board of Directors, Board of Supervisors,independent directors and management strictly act in compliance with the internal control system, andprotect the legitimate rights and interests of the Company, shareholders and other related parties.
2. Perform the obligation of information disclosure and maintain good relations with investors.The Company acts in accordance with all regulations on information disclosure and make sure thatrelevant information would be disclosed truthfully, accurately, completely, timely and fairly, to theextent that all investors can obtain information unbiasedly.
3. Pay taxes in accordance with the law, and economic and social benefits will grow together.From the date of incorporation, the Company has been running business in good faith and payingtaxes as required by law, with due contribution made to local economic development.
4. Secure the rights and interests of staff members.
Adhering to the people-oriented principle and seeking economic benefits, the Company alsopursues maximum social benefits. In the course of growth and expansion, the wages distributed to staffmembers are increasing at a high rate; with a high awareness of production safety, the Company delivers
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
all kinds of training sessions on job skills and production safety practice to staff members, which in turnmakes them better adapted to jobs and skills.
5. Protect the legitimate rights and interests of customers and suppliers.
The Company considers it important to protect the rights and interests of the upstream anddownstream chains. Provide customers with products that have stable quality, prompt delivery andcompetitive price in order to protect the rights and interests of customers; offer reasonable price tosuppliers and make timely payment in order to protect the rights and interests of suppliers.
6. Respond to the outbreak of COVID-19 and proactively fulfill social responsibilities.
In February 2020, the Company responded to the outbreak of COVID-19 and donated 6,200protective suits at a value of RMB 403,000 to Ningbo Beilun Charity Federation.
(3) Information about environment
1. Notes to the environmental protection conditions of companies and their important subsidiariesannounced by the environmental protection authority as key emission entities
√Applicable □Non-applicable
(1) Information about emissions
√Applicable □Non-applicable
During the reporting period, the key emissions of relevant companies or subsidiaries announced bythe environmental protection authorities are provided as follows:
(1) Under the "Notice of Ningbo Municipal Bureau of Ecology and Environment on printing andhanding out the list of key emission entities in Ningbo in 2020", as circulated by Ningbo MunicipalBureau of Ecology and Environment on April 30, 2020, the plant addressed at Guanhai Road, ChunxiaoStreet, Beilun District, Ningbo (“Chunxiao Plant”) is included on the list of key water environmentemission entities and the list of key soil environment supervised entities.
(2) Under the "Notice on release of the list of key emission entities in Jinhua (updated)”, ascirculated by Jinhua Ecological Environment Bureau on November 27, 2020, Zhejiang TowinAutomobile Parts Co., Ltd., (“Zhejiang Towin”), the wholly-owned subsidiary addressed at WuxiCounty Baihuashan Industrial Park, Jinhua, is included on the list of key water environment emissionentities and the list of key soil environment supervised entities.
(3) Under the "Notice on the list of key emission units in Sichuan in 2020 (Suining)”, as circulatedby Suining Ecological Environment Bureau on March 31, 2020, Sichuan Maigao Automobile Parts Co.,Ltd. (“Sichuan Maigao”, the wholly-owned subsidiary addressed at Industrial ConcentrationDevelopment Zone of Anju, Suining, is included on the list of key soil environment supervised entities.
(2) Construction and operation of pollution control facilities
√Applicable □Non-applicable
All plants of the Company arrange production facilities in a reasonable way, improve processes andincrease the recycling of water, and reduce the emissions of sewage, waste liquid, general solid wastesand hazardous wastes. The automatic waste monitoring system is running normally and transmitting datato the environment protection authority in real time, allowing environment protection authorities at alllevels to perform real-time monitoring. Each plant has set up a yard for storage of hazardous wastes inaccordance with the measures applicable to the control of hazardous wastes, taken reasonablemeasures against seepage, leakage and overflowing, maintained the hazardous waste managementaccount and transfer form, and subjected hazardous wastes to the transfer form system.
The construction and operation of pollution control facilities in the plants or subsidiaries includedon the list of key emission entities are as follows:
(1) Chunxiao Plant: diversion of rainwater and sewage, diversion of clean water and sewage, obtainthe permit for urban sewage to the drainage pipeline system, and the emission permits granted byNingbo Ecological Environment Bureau. The serial numbers of emission permits are91330200761450380T001V, 91330200761450380T002U, 91330200761450380T003W,91330200761450380T004Y , 91330200761450380T006Z, 91330200761450380T005W,91330200761450380T007Y.
Production wastewater: the production wastewater as gathered from the plant area via the pipelineto the regulating tank of sewage treatment station are subject to neutralization, flocculation, coarse
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
sedimentation, air flotation, acidifying, aerobic biochemistry reaction, sedimentation and regulating.Once acceptable to the standard, the production wastewater will be discharged to the municipal sewagepipeline, an intelligent sewage treatment control system that can prevent any unacceptable sewage fromaccessing to the municipal sewage pipeline. An automatic monitoring system is implemented in the plantarea, which allows the environmental protection authority to monitor how the sewage station operates inthe plant area.
Domestic sewage: The oily wastewater generated in the canteen is pretreated by the oil trappingfacility, and the domestic sewage is treated by the septic tank. Once acceptable to the pipelineconveyance standard designated by Chunxiao Sewage Treatment Plant, the domestic wastewater will bedischarged to the municipal sewage pipeline system.The above wastewater and sewage subject to the treatment process are finally discharged toChunxiao municipal sewage pipeline system via a drain outlet, finally to Chunxiao Sewage Treatmentplant. The normative standard applicable to sewage discharge of Chunxiao Plant: total zinc is subject toGrade 1 standard as contained in Table 4 of the "Integrated Wastewater Discharge Standard"(GB8978-1996), other contents are subject to the pipeline conveyance standard of Chunxiao SewageTreatment Plant. Actual data of production wastewater test: total zinc is 0.038mg/L, pH value is 8.31,suspended matter is 10mg/L, COD is 55mg/L; domestic wastewater test data: pH value is 7.60,suspended matter is 97mg/L, COD It is 354mg/L, all data are acceptable.In Chunxiao Plant, rubber scraps, non-conforming products in production, and scrap metalgenerated by mold repair are identified as general solid wastes, sorted out by category, then disposed andrecycled. Waste activated carbon, waste paint slags, pickling and phosphate slags, and waste oilgenerated in the production process are identified as hazardous wastes, a yard for storage of hazardouswastes has been set up in accordance with the national applicable provisions. The application for transferof hazardous wastes has been submitted in accordance with the applicable management provisions ofNingbo Ecological Environment Bureau. And the agreements for disposal of hazardous wastes havebeen signed with Ningbo Beilun Environmental Solid Waste Disposal Co., Ltd., Hangzhou FuyangShenneng Solid Waste Environmental Recycling Co., Ltd., and Ningbo Zhende EnvironmentalTechnology Co., Ltd.
(2) Zhejiang Towin: diversion of rainwater and sewage, diversion of clean water and sewage,obtain the permit for urban sewage to the drainage pipeline system, serial no.: Zhe Wu Wu Pai Zi No.2017069; obtain the emission permit granted from Jinhua Ecological Environment Bureau, serial no.:
91330723MA29PBM72F001U.
Production wastewater: the production wastewater as gathered from the plant area via the pipelineto the regulating tank of sewage treatment station are subject to neutralization, flocculation, coarsesedimentation, air flotation, acidifying, aerobic biochemistry reaction, sedimentation and regulating.Once acceptable to the standard, the production wastewater will be discharged to the municipal sewagepipeline of the Development Zone. An automatic monitoring system is implemented to prevent anyunacceptable sewage from accessing to the municipal sewage pipeline. The environmental protectionauthorities at all levels across the nation can monitor how the sewage station operates in the plant areaand the emission indexes.
Domestic sewage: The oily wastewater generated in the canteen is pretreated by the oil trappingfacility, and the domestic sewage is treated by the septic tank. Once acceptable to the pipelineconveyance standard designated by Wuyi NO.1 Sewage Treatment Plant, the domestic wastewater willbe discharged to the municipal sewage pipeline system.
The above wastewater and sewage subject to the treatment process are finally discharged to themunicipal sewage pipeline system of Wuyi Baihuashan Industrial Park via a drain outlet, finally to WuyiSewage Treatment plant.
The normative standard applicable to sewage discharge of Zhejiang Towin total zinc is subject toGrade 3 standard of "Integrated Wastewater Discharge Standard" (GB8978-1996), the sewage subject totreatment process is discharged into the municipal pipeline system. Actual data of production wastewatertest: pH value is 7.10, COD is 145mg/L, ammonia nitrogen is 7.71mg/L, all data are acceptable.
In Zhejiang Towin Plant, rubber scraps, non-conforming products in production, and scrap metalgenerated by mold repair are identified as general solid wastes, collected, then disposed and utilized.Waste paint slags, pickling and phosphate slags, and waste oil generated in the production process areidentified as hazardous wastes, a dedicated storehouse for hazardous wastes is set up under the nationalprovisions applicable to collection, packaging, storage, conveyance and disposal of hazardous wastes,the storage registration account is created on Zhejiang Solid Wastes Monitoring Information System,
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
and the agreements for disposal of hazardous wastes have been signed with Zhejiang Red LionEnvironmental Protection Co., Ltd. and Zhejiang Yulong Environmental Protection Technology Co.,Ltd.
Zhejiang Towin Plant arranges production facilities in a reasonable way, improves processes andincrease the recycling of water, and reduces the emissions of sewage. The automatic waste monitoringsystem is running normally and transmitting data to the environment protection authority in real time.The access control facility (environmental protection authorities at the central, provincial, municipal andcounty level can perform real-time monitoring) is added. The plant has set up a yard and storehouse forhazardous wastes in accordance with the measures applicable to the control of hazardous wastes, andmaintained the hazardous waste management account and transfer form.
(3) Sichuan Maigao: diversion of rainwater and sewage, diversion of clean water and sewage,obtain the permit for urban sewage to the drainage pipeline system, and the emission permit grantedfrom Suining Ecological Environment Bureau of Sichuan (serial no.: 91510904071417225P001U).
Production wastewater: the production wastewater as gathered from the plant area via the pipelineto the regulating tank of sewage treatment station are subject to neutralization, flocculation, coarsesedimentation, air flotation, acidifying, aerobic biochemistry reaction, sedimentation and regulating.Once acceptable to the standard, the production wastewater will be discharged to Longyanjing SewageTreatment Plant. An automatic monitoring system is implemented, which allows the environmentalprotection authorities at all levels in Sichuan to monitor how the sewage station operates in the plantarea and the emission indexes.
Domestic sewage: The oily wastewater generated in the canteen is pretreated by the oil trappingfacility, and the domestic sewage is treated by the septic tank. Once acceptable to the pipelineconveyance standard designated by Wuyi NO.1 Sewage Treatment Plant, the domestic wastewater willbe discharged to the municipal sewage pipeline system.
The above wastewater and sewage subject to the treatment process are discharged into themunicipal sewage pipeline of Anju Industrial Concentration Development Zone, finally to LongyanjingSewage Treatment Plant.
The normative standard applicable to sewage discharge of Sichuan Maigao is Grade 3 standard of"Integrated Wastewater Discharge Standard" (GB8978-1996).The sewage subject to treatment process isdischarged into the municipal pipeline system. Actual data of production wastewater test: total zinc is＜0.17mg/L, pH value is 7.66, COD is 256mg/L; ammonia nitrogen is 8.6mg/L, total phosphorus is
0.38mg/L, petroleum is 0.11mg/L. Actual data of domestic wastewater test: pH value is 7.48, COD is32mg/L, ammonia nitrogen is 158mg/L, all data are acceptable.
In Sichuan Maigao Plant, rubber scraps, non-conforming products in production, and scrap metalgenerated by mold repair are identified as general solid wastes, collected, then disposed and utilized.Waste paint slags, pickling and phosphate slags, and waste oil generated in the production process areidentified as hazardous wastes, a dedicated yard and storehouse for hazardous wastes is set up under thenational provisions applicable to collection, packaging, storage, conveyance and disposal of hazardouswastes, the application for transfer of hazardous wastes has been submitted in accordance with theapplicable management provisions of Anju Environmental Protection Bureau, and the agreements fordisposal of hazardous wastes have been signed with Xide County Liangzai Silicon Industry Co., Ltd.,Mianyang XinkeYuan Environmental Protection Technology Co., Ltd., and Sichuan ZhongmingEnvironmental Treatment Co., Ltd.
Sichuan Maigao has been approved in the environmental protection acceptance procedure bySuining Enviromental Protection Bureau and filed for urban rainwater and sewage pipeline. Acting instrict accordance with the national emission standards, Sichuan Maigao is committed to improving theenvironment, with minor impact on the surrounding environment.The sludge, waste oil, and waste paintslag generated from the sewage station are disposed by Xide County Liangzai Silicon Industry Co., Ltd.,Mianyang XinkeYuan Environmental Protection Technology Co., Ltd., and Sichuan ZhongmingEnvironmental Treatment Co., Ltd. Sichuan Maigao has set up storage spaces for all wastes (generalwastes and hazardous wastes), taken reasonable measures against seepage, leakage and overflowing,and subjected hazardous wastes to the transfer form system.
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
(3) EIA of construction projects and administrative permits granted to other environmentalprotection
√Applicable □Non-applicable
All construction projects in each plant are subject to the project-specific EIA requirement andcomply with the national emission standards, approved by the environmental protection acceptance andfiled for urban rainwater and sewage pipeline. All environmental impact factors are acceptable to theproject-specific EIA requirement. Each plant is committed to improving the environment.
(4) Emergency response for environmental contingencies
√Applicable □Non-applicable
The Company has laid down the integrated and dedicated emergency responses to environmentalcontingencies, which can direct the rescue operations in case of environmental contingencies. TheCompany makes announcement on Zhejiang Business Announcement Platform for EnvironmentalContingencies, under the record number: 330206-2015-007-L.
(5)In-house environmental monitoring plan
√Applicable □Non-applicable
The Company tests wastewater, waste gas, and noise at plant boundaries in all plants at regularintervals every year, which are found to be acceptable under the national standards; the plan for disposalof hazardous wastes is submitted earlier each year.
(6) Other environmental information that should be disclosed
□Applicable √Non-applicable
2. Notes to the environmental protection of the companies other than key emission entities
□Applicable √Non-applicable
3. Notes to the reasons for any company other than key emission entities who fails to disclose theenvironmental information
√Applicable □Non-applicable
Except for Chunxiao Plant, the subsidiaries Zhejiang Towin and Sichuan Maigao as included on thelist of key emission entities, other subsidiaries as included in the scope of consolidated statements arenot the key emission entities released by the ecological environment supervision authority.
During the reporting period, the Company and all of its subsidiaries strictly act in accordance withthe national provisions concerning environmental protection, and have laid down strict environmentaloperation codes, there is no violation of environmental protection provisions or dispute over pollutionaccident, and there is no circumstance under which they are imposed the administrative punishment byany environmental protection authority due to violation of environmental protection provisions.
4. Notes to the subsequent progress or changes in the environmental information disclosure duringthe reporting period
□Applicable √Non-applicable
(4) Other Notes
□Applicable √Non-applicable
XVIII. Convertible Corporate Bonds
□Applicable √Non-applicable
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
Section VI Changes in Common Shares and Shareholders
1. Changes in capital of common shares
(1) Changes in common shares
1. Changes in common shares
During the reporting period, there is no change happened to the total number of common shares and theshare capital structure of the Company.
2. Notes to changes in common shares
□Applicable √Non-applicable
3. Impact of changes in common shares on financial indexes such as EPS and net assets per sharein the most recent year and the most recent period (if any)
□Applicable √Non-applicable
4. Other content as the Company deems necessary to disclose or required by the securitiesregulatory institution
□Applicable √Non-applicable
(2) Changes in restricted sale of shares
□Applicable √Non-applicable
Unit: shares
| Name of shareholder | Number of shares on restricted sale at the beginning of the year | Number of shares removed from restricted sale in this year | Number of additional shares on restricted sale in this year | Number of shares on restricted sale at the end of the year | Reason for restricted sale | Date of removal of restricted sale |
| Wu Jianshu | 4,521,626 | 4,521,626 | 0 | 0 | 36-month lock-up period of shares in non-public issuance | May 24th, 2020 |
| Total | 4,521,626 | 4,521,626 | 0 | 0 | / | / |
| Total number (accounts) of common shareholders as of the end of the reporting period | 28,314 |
| Total number (accounts) of common shareholders | 33,807 |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
| at the end of the previous month prior to the disclosure of this annual report | |
| Total number (accounts) of preferred shareholders whose voting rights have been restored as of the end of the reporting period | NA |
| Total number (accounts) of preferred shareholders whose voting rights were restored at the end of the previous month prior to the disclosure of this annual report | NA |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
(2) Shares held by the top ten shareholders and top ten tradable shareholders (or shareholders not subject to restricted sale) as of the end of the reportingperiod
Unit: Shares
| Shares held by the top ten shareholders | |||||||
| Name of Shareholder (Full Name) | Increase/Decrease during the reporting period | Number of shares held at the end of the period | Percentage (%) | Number of shares held subject to restricted sale | Condition of pledge of freezing | Nature of shareholders | |
| Status of shares | Number of shares | ||||||
| MECCA INTERNATIONAL HOLDING （HK） LIMITED | 693,680,000 | 65.75 | 0 | No | Foreign corporate | ||
| Hong Kong Securities Clearing Company Limited | 25,858,056 | 2.45 | Unknown | Unknown | |||
| CITIC Securities-CITIC Bank-CITIC Securities Dividend Value One-year Commingled Collective Asset Management Plan | 15,689,597 | 1.49 | Unknown | Unknown | |||
| Kuwait Investment Authority – Own funds | 9,826,261 | 0.93 | Unknown | Unknown | |||
| Agricultural Bank of China Co., Ltd.-CIFM Emerging Power Commingled Securities Investment Fund | 8,233,474 | 0.78 | Unknown | Unknown | |||
| Industrial and Commercial Bank of China Co., Ltd.-Rongtong China Wind No. 1 Tactic Assets Allocation Commingled Securities Investment Fund | 8,018,336 | 0.76 | Unknown | Unknown | |||
| Industrial and Commercial Bank of China Co., Ltd.-Baoying AI-themed Equity Securities Investment Fund | 7,283,265 | 0.69 | Unknown | Unknown | |||
| Wu Jianshu | 7,210,308 | 0.68 | 0 | No | Foreign person | ||
| Bank of Communications Co., Ltd.-Baoying Innovation-Driven Stock Securities Investment Fund | 5,862,774 | 0.56 | Unknown | Unknown | |||
| Ningbo Zhuyue Investment Management Co., Ltd. | 5,407,630 | 0.51 | 0 | No | Foreign non-state-owned corporate | ||
| Shares held by the top ten shareholders not subject to restricted sale | |||||||
| Name of Shareholder | Number of tradable | Class and number of shares | |||||
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
| shares held not subject to restricted sale | Class | Number of shares | |
| MECCA INTERNATIONAL HOLDING （HK） LIMITED | 693,680,000 | RMB common shares | 693,680,000 |
| Hong Kong Securities Clearing Company Limited | 25,858,056 | RMB common shares | 25,858,056 |
| CITIC Securities-CITIC Bank-CITIC Securities Dividend Value One-year Commingled Collective Asset Management Plan | 15,689,597 | RMB common shares | 15,689,597 |
| Kuwait Investment Authority – Own funds | 9,826,261 | RMB common shares | 9,826,261 |
| Agricultural Bank of China Co., Ltd.-CIFM Emerging Power Commingled Securities Investment Fund | 8,233,474 | RMB common shares | 8,233,474 |
| Industrial and Commercial Bank of China Co., Ltd.-Rongtong China Wind No. 1 Tactic Assets Allocation Commingled Securities Investment Fund | 8,018,336 | RMB common shares | 8,018,336 |
| Industrial and Commercial Bank of China Co., Ltd.-Baoying AI-themed Equity Securities Investment Fund | 7,283,265 | RMB common shares | 7,283,265 |
| Wu Jianshu | 7,210,308 | RMB common shares | 7,210,308 |
| Bank of Communications Co., Ltd.-Baoying Innovation-Driven Stock Securities Investment Fund | 5,862,774 | RMB common shares | 5,862,774 |
| Ningbo Zhuyue Investment Management Co., Ltd. | 5,407,630 | RMB common shares | 5,407,630 |
| Notes to the associated relationship or concerted action of the above shareholders | Among these shareholders: 1. Mr. Wu Jianshu holds 100% of the shares in MECCA INTERNATIONAL HOLDING （HK） LIMITED. 2. Ningbo Zhuyue Investment Management Co., Ltd. is a wholly-owned sub-subsidiary of MECCA INTERNATIONAL HOLDING （HK） LIMITED, the controlling shareholder of the Company, and is a person acting in concert. In addition, the Company doesn’t know whether there is an associated relationship among the above shareholders or whether they are parties acting in concert. | ||
| Notes to the preferred shareholders whose voting rights have been restored and the number of shares held | NA | ||
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
(3) Strategic investors or general legal persons becoming the top ten shareholders due to theplacement of new shares
□Applicable √Non-applicable
IV. Controlling Shareholder and Actual Controller
(1) Information about controlling shareholders
1 Corporate
√Applicable □Non-applicable
| Name | MECCA INTERNATIONAL HOLDING （HK） LIMITED |
| Head or legal representative | Wu Jianshu |
| Date of Incorporation | July 21st, 2008 |
| Main business operations | Investment |
| Shareholding status of other domestic and overseas listed companies that hold or participate in shares during the reporting period | NA |
| Other notes | NA |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
(2) Actual controllers
1 Corporate
□Applicable √Non-applicable
2 Natural person
√Applicable □Non-applicable
| Name | Wu Jianshu |
| Nationality | Hong Kong |
| Whether the above person has acquired the right of residence in other countries or regions | Yes |
| Jobs and titles | Formerly as Chairman of Ningbo Tuopu Vibration control System Co., Ltd., Chairman of Ningbo Tuopu Soundproof System Co., Ltd., Chairman of Ningbo Tuopu Coupling Co., Ltd., Chairman of Ningbo Tuopu Automobile Special Rubber Co., Ltd., Chairman of Ningbo Tuopu Brake System Co., Ltd. Currently in the capacity of Chairman of MECCA INTERNATIONAL HOLDING (HK) LIMITED, Chairman of Ningbo Tuopu Group Co., Ltd. |
| Domestic or overseas listed companies controlled by the above person in the past 10 years | NA |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
(3) Other information about the controlling shareholder and actual controller
□Applicable √Non-applicable
V. Other corporate shareholders holding more than 10% of the shares
□Applicable √Non-applicable
VI. Notes to restricted reduction of shares
□Applicable √Non-applicable
Section VII Information about Preferred Shares
□Applicable √Non-applicable
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
Section VIII Directors, Supervisors, Officers and Employees
I. Changes in Shares Held and Remuneration
(1) Changes in shares held and remuneration of current and resigned directors, supervisors and officers during the reporting period
√Applicable □Non-applicable
Unit：Shares
| Name | Capacity (Note) | Gender | Age | Date of taking office | Date of leaving | Number of shares held at the beginning of the year | Number of shares held at the end of the year | Increase/Decrease in shares in the year | Reason for increase/decrease | Total pre-tax remuneration received from the Company during the reporting period (in 10,000 Yuan) | Whether receive remuneration from related parties of the Company |
| Wu Jianshu | Chairman, Director | Male | 57 | 2020-10-19 | 2023-10-18 | 7,210,308 | 7,210,308 | 0 | 0 | No | |
| Wang Bin | Chairman, Managing Director | Male | 46 | 2020-10-19 | 2023-10-18 | 0 | 0 | 0 | 200 | No | |
| Pan Xiaoyong | Chairman, Vice President | Male | 41 | 2020-10-19 | 2023-10-18 | 0 | 0 | 0 | 200 | No | |
| Wu Weifeng | Chairman, Vice President | Male | 44 | 2020-10-19 | 2023-10-18 | 0 | 0 | 0 | 200 | No | |
| Jiang Kaihong | Chairman, Vice President | Male | 50 | 2020-10-19 | 2023-10-18 | 0 | 0 | 0 | 200 | No | |
| Zhou Ying | Independent director | Female | 44 | 2020-10-19 | 2023-10-18 | 0 | 0 | 0 | 5 | No | |
| Zhao Xiangqiu | Independent director | Female | 51 | 2020-10-19 | 2023-10-18 | 0 | 0 | 0 | 2.90 | No | |
| Wang Yongbin | Independent director | Male | 64 | 2020-10-19 | 2023-10-18 | 0 | 0 | 0 | 1.25 | No | |
| Wang Mingzhen | Board Secretary | Male | 42 | 2020-10-19 | 2023-10-18 | 0 | 0 | 0 | 60 | No | |
| Yan Qunli | Board Chairman, | Male | 49 | 2020-10-19 | 2023-10-18 | 0 | 0 | 0 | 63 | No |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
| Supervisor | |||||||||||
| Duan Xiaocheng | Supervisor | Male | 39 | 2020-10-19 | 2023-10-18 | 0 | 0 | 0 | 65 | No | |
| Wang Chengcai | Supervisor on Behalf of Staff Members | Male | 40 | 2020-10-19 | 2023-10-18 | 0 | 0 | 0 | 25.60 | No | |
| Hong Tieyang | Financial Director | Male | 43 | 2020-10-19 | 2023-10-18 | 0 | 0 | 0 | 40 | No | |
| Zhou Jingyao | Independent director | Male | 58 | 2014-03-15 | 2020-04-27 | 0 | 0 | 0 | 2.5 | No | |
| Wang Minquan | Independent director | Male | 56 | 2014-09-22 | 2020-10-18 | 0 | 0 | 0 | 4.20 | No | |
| Total | / | / | / | / | / | 7,210,308 | 7,210,308 | 0 | / | 1,069.45 | / |
| Name | Working Experience |
| Wu Jianshu | Formerly as Chairman of Ningbo Tuopu Vibration control System Co., Ltd., Chairman of Ningbo Tuopu Soundproof System Co., Ltd., Chairman of Ningbo Tuopu Coupling Co., Ltd., Chairman of Ningbo Tuopu Automobile Special Rubber Co., Ltd., Chairman of Ningbo Tuopu Brake System Co., Ltd. Currently in the capacity of Chairman of MECCA INTERNATIONAL HOLDING (HK) LIMITED, Chairman and Director of the Company. |
| Wang Bin | Formerly as Vice general manager of Ningbo Economic and Technological Development Zone Tuopu Industrial Co., Ltd., Director and general manager of Ningbo Tuopu vibration control System Co., Ltd., General manager of Ningbo Tuopu Import and Export Co., Ltd., Vice general manager and Director of Ningbo Tuopu Brake System Co., Ltd. Currently in the capacity of Director and President of the Company. |
| Pan Xiaoyong | Formerly as Vice general manager of Ningbo Tuopu Acoustics Vibration Technology Co., Ltd., Manager of System Development Department of Ningbo Tuopu Acoustics Vibration Technology Co., Ltd., and Director of Ningbo Tuopu Brake System Co., Ltd. Currently in the capacity of Director and Vice President of the Company. |
| Wu Weifeng | Formerly as Director of of Ningbo Tuopu Acoustics Vibration Technology Co., Ltd., general manager of Ningbo Tuopu Automobile Special Rubber Co., Ltd., President of Ningbo Bahe Mould Co., Ltd., Vice general manager of Ningbo Tuopu Soundproof System Co., Ltd., Vice general manager and Director of Ningbo Tuopu Brake System Co., Ltd. Currently in the capacity of Director and Vice President of the Company. |
| Jiang Kaihong | Formerly as Manager of Engineering Department of Ningbo Economic and Technological Development Zone, Director of R&D Center of Ningbo Tuopu vibration control System Co., Ltd., general manager of Ningbo Tuopu Automobile Parts Co., Ltd., Vice general manager of Electronic System Division of Ningbo Tuopu Brake System Co., Ltd. Currently in the capacity of Director and Vice President of the Company. |
| Zhou Ying | CPA, CPV. Formerly worked in Beilun Finance Bureau, currently serve Ningbo Donghai Accounting Firm. Currently in the capacity of independent director of the Company. |
| Zhao | Formerly as a practicing lawyer in Zhejiang Fanxin Law Firm, currently as a lawyer, partner and executive director of Zhejiang Yahui Law Firm. |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
| Xiangqiu | Currently as an independent director of the Company. |
| Wang Yongbin | Formerly taught in Zhejiang Agricultural University at Ningbo after graduation, formerly as a professor of machinery at Zhejiang Wanli University, the first tutor of master candidates, President of the Institute of Mechatronic System Technology, Director of Mechatronic System Technology Laboratory, now retired. Currently as an independent director of the Company, concurrently hold the office of independent director in Ningbo Jifeng Auto Parts Co., Ltd. (603997.SH), NBTM New Materials Group Co., Ltd. (600114.SH), Zhejiang LERA New Energy Power Technology Co., Ltd., and Ningbo Da Zhi Machine Technology Co., Ltd. |
| Wang Mingzhen | Formerly as general manager of Ningbo Tuopu Import and Export Co., Ltd.., Supervisor of Ningbo Tuopu Group Co., Ltd. Currently as Board Secretary of the Company. |
| Yan Qunli | Formerly as Director of Mold Center, Project Manager of Engineering Department and Manager of Engineering Department of Ningbo Ningbo Economic and Technological Development Zone Tuopu Industrial Co., Ltd., Vice general manager of Marketing of Ningbo Tuopu Automobile Parts Co., Ltd., general manager of vibration control System NO.1 Department of Ningbo Tuopu Brake System Co., Ltd., and Director and Vice President of Ningbo Tuopu Brake System Co., Ltd. Current as the chairman of Board of Supervisors of the Company. |
| Duan Xiaocheng | Formerly as System Integration Section Chief of Ningbo Tuopu Acoustics Vibration Technology Co., Ltd., Chief Engineer of R&D Center of Ningbo Tuopu Group Co., Ltd., and Vice general manager of R&D Center of Ningbo Tuopu Group Co., Ltd. Currently in the capacity of general manager of Electronic Control System of Electronics Division of Ningbo Tuopu Group Co., Ltd. and Supervisor of the Company. |
| Wang Chengcai | Holder of Master Degree of Laws, Economist. Formerly as a lecturer at the School of Humanities and Social Sciences of Jingchu Institute of Technology, part-time lawyer at Hubei Fazhixing Law Firm, legal counsel assistant of China Youngman Automobile Group Co., Ltd., legal specialist of SELF Electronics Co., Ltd., Manager of Legal Department of Ningbo Cixing Co., Ltd. Currently as Legal Director and Supervisor of the Company. |
| Hong Tieyang | Formerly as Financial Officer of Ningbo Huazhong Plastic Products Co., Ltd., Project Manager of Ningbo Zhongcheng Tax Accountant Firm, and Financial Manager of Ningbo Tuopu Group Co., Ltd. Currently as Financial Director of the Company. |
| Zhou Jingyao (left) | Formerly as the head of Zhejiang Fanxin Law Firm, council member of Ningbo Lawyers Association, arbitrator of Ningbo Arbitration Commission, and legal counselor of Beilun People's Government. Concurrently as an independent director of Ningbo Xusheng Auto Technology Co., Ltd. (603305.SH), and independent director of Ningbo Orient Cable Co., Ltd. (603606.SH). Independent director of the second and third sessions of Board of Directors of the Company, left from the office due to expiration of tenure in April 2020. |
| Wang Minquan (left) | Formerly as the head of Electrical Experiment Center of Huaihai Institute of Technology, and Director of Automation Program of Ningbo Polytechnic, currently as a teacher at Ningbo Polytechnic, concurrently as a member of Automation Teaching Steering Committee in Zhejiang Higher Vocational Colleges, procurement specialist of electromechanical equipment appointed by Ningbo government, member of the Ninth CPPCC in Beilun District, and member of “Teachers’ Textbook Instrument” Specialized Committee of China Vocational Education Association. Concurrently as an independent director of Ningbo Xusheng Auto Technology Co., Ltd. (603305.SH). Independent director of the second and third sessions of Board of Directors of the Company, left from the office due to expiration of tenure in October 2020. |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
2. On April 27, 2020, the company held the 19th meeting of the Third Session of Board of Directors, Mrs. Zhao Xiangqiu was nominated as the independent directorcandidate of the Third Session of Board of Directors of the Company. At the subsequent general meeting of 2019, the resolution on by-election of Mrs. ZhaoXiangqiu as independent director of the Third Session of Board of Directors was passed.
3. On September 28, 2020, because the term of the Third Session of Board of Directors was about to expire, the Company convened the 23rd meeting of the ThirdSession of Board of Directors, where the “Resolution on re-election of Board of Directors” was considered and passed, the Board of Directors nominated Mr. WuJianshu, Mr. Wang Bin, Mr. Wu Weifeng, Mr. Pan Xiaoyong, and Mr. Jiang Kaihong as non-independent director candidates of the Fourth Session of Board ofDirectors; Mrs. Zhou Ying, Mrs. Zhao Xiangqiu, and Mr. Wang Yongbin were nominated as the independent direct candidates for the Fourth Session of Board ofDirectors of the Company. At the subsequent first extraordinary general meeting of 2020, the resolution on election of Mr. Wu Jianshu, Mr. Wang Bin, Mr. WuWeifeng, Mr. Pan Xiaoyong, and Mr. Jiang Kaihong as non-independent director candidates of the Fourth Session of Board of Directors of the Company was passed,and the resolution on election of Mrs. Zhou Ying, Mrs. Zhao Xiangqiu, and Mr. Wang Yongbin as the independent director candidates of the Fourth Session ofBoard of Directors of the Company was passed.
4. On September 28, 2020, because the term of the Third Session of Board of Supervisors was about to expire, the Company convened the 17th meeting of the ThirdSession of Board of Supervisors, where the “Resolution on re-election of Board of Supervisors” was considered and passed, Mr. Yan Qunli and Mr. DuanXiaocheng were nominated by the Board of Supervisors as the supervisor candidates on behalf of shareholders of the Fourth Session of Board of Supervisors. At thesubsequent first extraordinary general meeting of 2020, this resolution was passed. On September 28, 2020, the Company convened the congress of workers andstaff, where Mr. Wang Chengcai was elected as the supervisor on behalf of staff members of the Fourth Session of Board of Supervisors. Mr. Yan Qunli, Mr. DuanXiaocheng and Mr. Wang Chengcai formed the Fourth Board of Supervisors of the Company.
5. On October 19, 2020, the Company held the first meeting of the Fourth Board of Directors, where Mr. Wu Jianshu was elected as Chairman of the Fourth Boardof Directors, with the same tenure as that in the Fourth Session of Board of Directors; Mr. Wang Bin was appointed as President of the Company, with a tenure ofthree years; Mr. Pan Xiaoyong, Mr. Wu Weifeng and Mr. Jiang Kaihong were appointed as Vice President of the Company, with a tenure of three years; Mr. WangMingzhen was appointed as Board Secretary of the Company, with the same tenure as that in Fourth Session of Board of Directors; Mr. Hong Tieyang wasappointed as Financial Director of the Company, with a tenure of three years;
6. On October 19, 2020, the Company held the first meeting of the Fourth Board of Supervisors, where Mr. Yan Qunli was elected as Chairman of the Fourth Boardof Supervisors, with the same tenure as that in the Fourth Session of Board of Supervisors.
(2) The equity incentives granted to directors and officers during the reporting period
□Applicable √Non-applicable
II. Office held by current and resigned directors, supervisors and officers during the reporting period
(1) Office held in corporate shareholder
√Applicable □Non-applicable
| Name of persons in office | Name of corporate shareholder | Office held in corporate shareholder | Date of office held | Date of end of office |
| Wu Jianshu | MECCA INTERNATIONAL | Chairman | 2008-07-21 |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
| HOLDING （HK） LIMITED | ||
| Note to office held in corporate shareholder | No | |
| Name of persons in office | Name of other entity | Office held in other entity | Date of office held | Date of end of office |
| Zhou Ying | Ningbo Donghai Accounting Firm | Manager | ||
| Zhao Xiangqiu | Zhejiang Yahui Law Firm | Partner, executive director | ||
| Wang Yongbin | Ningbo Jifeng Auto Parts Co., Ltd. | Independent director | ||
| Wang Yongbin | NBTM New Materials Group Co., Ltd. | Independent director | ||
| Wang Yongbin | Zhejiang LERA New Energy Power Technology Co., Ltd. | Independent director | ||
| Wang Yongbin | Ningbo Da Zhi Machine Technology Co., Ltd. | Independent director | ||
| Zhou Jingyao | Zhejiang Fanxin Law Firm | |||
| Zhou Jingyao | Ningbo Orient Cable Co., Ltd. | Independent director | ||
| Zhou Jingyao | Ningbo Xusheng Auto Technology Co., Ltd. | Independent director | ||
| Wang Minquan | Ningbo Polytechnic | Teacher | ||
| Wang Minquan | Ningbo Xusheng Auto Technology Co., Ltd. | Independent director | ||
| Notes to office held in other entities | No | |||
| Decision-making procedure as to the remuneration of directors, supervisors and officers | Under the “Articles of Association”, the remuneration of directors and supervisors is decided at the general meeting; the remuneration of officers is decided by the Board of Directors. |
| Basis for fixing the remuneration of directors, | Fixed according to the industry and local conditions, by referring to the comparable standard of similar listed |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
| supervisors and officers | companies and the actual condition of the Company, where applicable |
| Actuap payment of the remuneration of directors, supervisors and officers | The remuneration of directors, supervisors and officers have been paid |
| Total remuneration received by all directors, supervisors and officers at the end of the reporting period | RMB 10.6945 million |
| Name | Office held | Changes | Reason for change |
| Zhou Jingyao | Independent director | Left | At the expiration of tenure |
| Wang Minquan | Independent director | Left | At the expiration of tenure |
| Zhao Xiangqiu | Independent director | Elected | By-election after the expiration of tenure of other independent directors |
| Wang Yongbin | Independent director | Elected | Re-election |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
VI. Staff Members of the Parent Company and Major Subsidiaries
(1) Staff members
| Number of staff members serving the parent company | 4,463 |
| Number of staff members serving major subsidiaries | 4,655 |
| Total number of staff members in service | 9,118 |
| Number of retiring employees to whom the parent company and other subsidiaries have to bear costs and expenses | |
| Composition of job positions | |
| Category of job positions | Number of specialsits |
| Production staff | 4,879 |
| Marekting staff | 398 |
| Technical staff | 2,329 |
| Financial staff | 150 |
| Administrative staff | 1,362 |
| Total | 9,118 |
| Education Background | |
| Category of education | Number of members (persons) |
| Holders of doctoral, master degrees | 118 |
| Holders of bachelor degrees | 1,088 |
| Graduated from junior college, technical secondary school | 3,267 |
| Others | 4,645 |
| Total | 9,118 |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
VII. Others
□Applicable √Non-applicable
Section IX Corporate GovernanceI. Notes to Corporate Governance
√Applicable □Non-applicable
During the reporting period, the Company acted in strict compliance with the "Company Law","Securities Law", relevant regulations of CSRC and SSE, and the provisions under the "Articles ofAssociation", in order to improve the corporate governance structure, improve internal control system,and operate the internal control system. General meeting, Board of Directors, Board of Supervisors,independent directors and the management operated precisely by following the internal controlprocedure, in order to secure the legitimate rights and interests of the Company and its shareholders.
General meeting: During the reporting period, the Company convened 2 general meetings in theform of online voting and on-site voting. The calling, summoning and voting procedure in respect ofgeneral meetings are compliant and valid, to the extent that all shareholders, especially small andmedium shareholders, were able to exercise their rights, and the legitimate rights and interests of allshareholders were secured. During the reporting period, the events granted in the scope of powers andfunctions were considered at the general meetings in accordance with relevant regulations and rules ofproceedings, and the legitimate rights and interests of all shareholders were secured. During thereporting period, significant events including regular reports, profit distribution, reappointment of auditinstitution, related-party transactions, use of raised funds, kick-off of non-public offerings of 2020, andre-election of Board of Directors were considered at the general meetings and valid resolutions as tothese events were passed.
Board of Directors: During the reporting period, the Company convened 7 board meetings in whichall directors were present. During the reporting period, the Board of Directors considered the events suchas regular reports, day-to-day operations, external investments, related-party transactions, kick-off ofnon-public offering of 2020, re-election of Board of Directors, and use of funds raised from non-publicofferings and passed valid resolutions as to these events in accordance with applicable regulations andrules of proceedings. The Board of Directors also fulfilled its due role in submitting the events to beconsidered at general meeting to the general meeting promptly.
Board of Supervisors: During the reporting period, the Company convened 5 meetings of the Boardof Supervisors in which all supervisors were present. In addition, all supervisors attended all boardmeetings convened during the reporting period. During the reporting period, the Board of Supervisorsconducted effective supervision on certain significant events such as regular reports, significantdecisions on production and operation, use of raised funds, kick-off of non-public offerings in 2020, andrelated-party transactions in accordance with applicable regulations and rules of proceedings. The Boardof Supervisors substantially fulfilled it role in supervising these events.
Independent directors: Since the independent directors of the third and fourth sessions of Board ofDirectors took office, subject to applicable provisions and “Work Procedure of Independent Directors”,they actively took part in the decision-making process, leveraged their expertise in finance, law andtechnology, held the interests of all shareholders harmless, and drove for the reinforcement of corporategovernance structure. During the reporting period, independent directors gave pre-approval opinions orindependent opinions on certain significant events, such as regular reports, internal control evaluation,use of raised funds, related-party transactions, profit distribution, re-appointment of audit institution,kick-off of non-public offerings in 2020, and made no contest to any decision made at all boardmeetings.
Special Committee: During the reporting period, all special committees under the Board ofDirectors considered certain events such as the financial standing of the Company, whose establishmentand operation effectively improved the operational efficiency of the Board of Directors, thereasonableness of decisions and the effectiveness of supervision, and drove for the reinforcement ofcorporate governance structure.
Whether there are significant differences between corporate governance and the the relevant regulationsof CSRC; if so, state the reason
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
□Applicable √Non-applicable
II. Brief Information about General Meetings
| Session | Date of convention | The search index of the specified website to publish resolutions | Date of disclosure to publication of resolutions |
| 2019 general meeting | June 8, 2020 | www.sse.com.cn | June 9, 2020 |
| 2020 first extraordinary general meeting | October 19, 2020 | www.sse.com.cn | October 20, 2020 |
| Name of director | Whether as independent director | Presences in board meeting | Presences in general meeting | |||||
| Number of mandatory attendances in board meeting this year | Number of attendances in person | Number of attendances by communication means | Number of attendances by proxy | Number of absences | Whether failed to present in two consecutive meetings in person | Number of presences | ||
| Wu Jianshu | No | 7 | 7 | 0 | 0 | 0 | No | 2 |
| Wang Bin | No | 7 | 7 | 0 | 0 | 0 | No | 2 |
| Pan Xiaoyong | No | 7 | 7 | 0 | 0 | 0 | No | 2 |
| Wu Weifeng | No | 7 | 7 | 0 | 0 | 0 | No | 2 |
| Jiang Kaihong | No | 7 | 7 | 0 | 0 | 0 | No | 2 |
| Zhou Ying | Yes | 7 | 7 | 0 | 0 | 0 | No | 2 |
| Zhao Xiangqiu | Yes | 5 | 5 | 0 | 0 | 0 | No | 1 |
| Wang Yongbin | Yes | 2 | 2 | 0 | 0 | 0 | No | 0 |
| Zhou Jingyao | Yes | 2 | 2 | 0 | 0 | 0 | No | 1 |
| Wang Minquan | Yes | 5 | 5 | 0 | 0 | 0 | No | 2 |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
| Number of board meetings convened in the year | 7 |
| Including: number of on-site meetings | 7 |
| Number of meetings convened by communication means | 0 |
| Number of meetings convened on site by communication means | 0 |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
Section X Information of Corporate Bonds
□Applicable √Non-applicable
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
Section XI Financial Report
1. Audit report
√Applicable □Non-applicable
Audit Report
Xin Kuai Shi Bao Zi [2021] No. ZF10400To the shareholders of Ningbo Tuopu Group Co., Ltd.
I. OpinionWe have audited the financial statements of Ningbo Tuopu Group Co., Ltd. (hereinafter referred to as“Tuopu Group”), including the parent company's and the consolidated balance sheet dated December 31,2020, the parent company's and the consolidated income statement, the parent company's and theconsolidated cash flow statement and the parent company's and the consolidated statement of changes inowners' equity for the year 2020 ended, as well as the notes to relevant financial statements.In our opinion, the attached financial statements are prepared, in all material respects, in accordance with“Accounting Standards for Business Enterprises” , which fairly reflected the consolidated and the parentcompany’s financial position of Ningbo Tuopu Group Co., Ltd. as at December 31, 2020 and theconsolidated and the parent company’s operating results and cash flows for the year 2020 ended.
II. Basis for Our OpinionWe conducted our audit in accordance with the Auditing Standards for Certified Public Accountants inChina. Our responsibilities under those standards are further described in the CPA's Responsibilities forthe Audit of the Financial Statements section of our report. According to the “Code of Ethics for ChineseCertified Public Accountants”, we are independent of Tuopu and have fulfilled our other ethicalresponsibilities in accordance with the Code. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our audit opinions.
III. Key Audit MattersKey audit matters are those matters that, in our professional judgment, were of most significance in ouraudit of the financial statements of the current period. These matters were addressed in the context of ouraudit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide aseparate opinion on these matters.
The key audit matters identified during the audit are summarized as follows:
| Key Audit Matters | How the matter was addressed in the audit |
| (1) Recognition of revenue | |
| More details about the accounting policies for revenue recognition and the analysis of revenue are available in the accounting policies as referred to in Note 38 of “V. Significant Accounting Policies and Accounting Estimates" and Note 61 of “VII. Notes to Items of the Consolidated Financial Statements”. In 2020, Tuopu Group’s income from main business operations is RMB 6,293,917,500. Because revenue is one of the key performance indexes of Tuopu Group, there is an inherent risk of management manipulating | Our main audit procedures for the above key audit matters related to recognition of revenue are as described below: 1. Understand the internal control system in relation to revenue recognition and the design and implementation of the financial accounting system, and test the effectiveness of its operation; 2. We understand and evaluate whether the revenue recognition policy of the Company is appropriate or not by reviewing sales contracts and interviews with management; 3. Perform an analytical review of revenue and gross profit based on product types and customer types, and |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
| the time point of revenue recognition in order to achieve specific goals or expectations. In this regard, we regard Tuopu Group's revenue recognition as a key audit matter. | determine whether there are abnormal fluctuations in the amount of revenue during the current period; 4. Classify sales regions, select samples from the income transactions as recorded in respect of this year, check invoices, sales contracts, delivery orders, customs declaration forms, B/Ls and other supporting documents, and evaluate whether the relevant revenue recognition complies with the revenue recognition accounting policies of the Company; 5. Conduct cut-off test on the operating income recognized before and after the balance sheet date in order to evaluate whether the operating income is recognized in the appropriate period; 6. Make external confirmation of the account receivable balance and sales of major customers, and confirm whether the account receivable balance at the end of the period and the current income amount are true and accurate; 7. Check whether the information related to operating income has been properly presented in the financial statements. |
| (2) Impairment of goodwill | |
| The details and analysis of the accounting policies for impairment of goodwill are available in the accounting policies as referred to in Note 30 of “V. Significant Accounting Policies and Accounting Estimates" and Note 28 of “VII. Notes to Items of the Consolidated Financial Statements”. As of December 31, 2020, the original book value of Tuopu Group's goodwill is RMB 286,784,900, and the amount of provision for impairment is RMB 33,474,800. The management conducts an impairment test on the goodwill formed by the business combination at the end of each year. The result of the impairment test of goodwill is | Our main audit procedures in respect of the above key audit matters related to the impairment of goodwill are as follows: 1. We evaluate and test the effectiveness of the design and implementation of internal controls related to the goodwill impairment test, including the adoption of key assumptions and the review and approval of the amount of impairment provision; 2. Referring to industry practices, assess the appropriateness of the valuation method used by the management for cash flow forecasts; 3. Comparing key input values such as revenue growth rate, perpetual growth rate and cost increase with past performance, perform prudent evaluation on the key assumptions and judgments used in preparing |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
| fixed by the estimation report of relevant asset group recoverable value as prepared by the management. The recoverable amount of the relevant asset group is calculated and fixed by the present value of the estimated future cash flow. The discounted cash flow forecasts are prepared by using major judgments and estimates, especially determining the growth rate during the forecast period, perpetual growth rate, gross profit margin, discount rate. Since the process of goodwill impairment test is very complex, which relates to significant management estimates and judgments, we regard the impairment of goodwill as a key audit matter. | discounted cash flow forecasts; 4. Discuss with the management and others about the reasonableness of the methods used in the process of goodwill impairment test, the assumptions of key assessments, the selection of parameters, the forecast of future income and the discount rate of cash flow; 5. Conduct a retrospective review by comparing the forecast of the previous year with the performance of this year to assess the reliability and historical accuracy of the management's forecasting process; 6. Evaluate the competence, professionalism and objectivity of the specialists appointed by the management, and reach a consensus on the content of their works; 7. Check whether the information related to the impairment of goodwill has been properly presented and disclosed in the financial statements. |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
it exists. Misstatements can arise from fraud or error and are considered material if, individually or in theaggregate, they could reasonably be expected to influence the economic decisions of users made on thebasis of these financial statements.As part of an audit in accordance with the audit standards, we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements, whetherdue to fraud or error, design and perform audit procedures responsive to those risks, and obtain auditevidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting amaterial misstatement resulting from fraud is higher than one resulting from error, as fraud may involvecollusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to designappropriate audit procedures, but not for the purpose of expressing an opinion on the effectiveness of theCompany's internal control.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by the Management.
(4) Conclude on the appropriateness of using the going concern assumption by theManagement. At the same time, draw a conclusion, based on the audit evidence obtained, on whetherthere is significant uncertainty in matters or situations that may cause major doubts about Tuopu's abilityin continuous operation. If we conclude that a material uncertainty exists, we are required to drawattention in our audit report to the related disclosures in the financial statements or, if such disclosuresare inadequate, to modify our opinion. Our conclusions are based on the information available up to thedate of our audit report. However, future events or conditions may result in Tuopu 's inability to continueoperating.
(5) Evaluate the overall presentation (including the disclosures), structure and content of thefinancial statements, and whether the financial statements fairly reflect the relevant transactions andevents.
(6) Obtain sufficient and appropriate audit evidence regarding the financial information of theentities or business activities within Tuopu to express an opinion on the financial statements. We areresponsible for guiding, supervising and implementing the group audit, and remain solely responsible forour audit opinion.
We have communicated with those charged with governance on such matters as the scope of auditas planned, the schedule and material audit findings, including the defects in the internal control that areworth paying attention to found in this audit.
We have also provided those charged with governance with a statement on observing theprofessional ethics related to independence, and communicated with those charged with governance onall the relationships and other matters that might be reasonably deemed to affect our independence, andrelevant preventative measures (if applicable).
From the matters communicated with those charged with governance, we determine those mattersthat were of most significance in the audit of the financial statements of the current period and aretherefore the key audit matters. We describe these matters in our audit report unless law or regulationprecludes public disclosure about the matter or when, in extremely rare circumstances, we determine thata matter should not be communicated in our report because the adverse consequences of doing so wouldreasonably be expected to outweigh the public interest benefits of such communication.
BDO China Shu Lun Pan Certified Public Accountants LLP Chinese CPA: Zhu Wei(Special General Partnership) (Project partner)
Chinese CPA: Tang Wei
Shanghai, China Date: 29 April 2021
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
II. Financial Statements
Consolidated Balance SheetAs of 31 December 2020Prepared by: Ningbo Tuopu Group Co., Ltd.
Unit:Yuan Currency:RMB
| Item | Note | 2December 31, 2020 | December 31, 2019 |
| Current assets: | |||
| Cash and Bank Balances | 7.1 | 787,123,646.45 | 822,457,801.96 |
| Deposit Reservation for Balance | |||
| Loans to Banks and Other Financial Institutions | |||
| Trading Financial Assets | 7.2 | 176,111.00 | 780,000,000.00 |
| Derivative Financial Assets | |||
| Notes receivable | 7.4 | 296,283,951.73 | 440,734,534.85 |
| Accounts receivable | 7.5 | 1,783,267,007.65 | 1,357,020,447.94 |
| Receivables Financing | 7.6 | 742,203,122.21 | 587,351,790.19 |
| Prepayments | 7.7 | 42,883,818.40 | 35,367,527.97 |
| Premium Receivable | |||
| Reinsurance Accounts Receivable | |||
| Reinsurance Contract Reserves Receivable | |||
| Other Receivables | 7.8 | 31,087,166.38 | 13,981,969.00 |
| Including: interest receivable | |||
| Dividends Receivable | |||
| Buying Back the Sale of Financial Assets | |||
| Inventory | 7.9 | 1,502,751,836.88 | 1,239,786,152.44 |
| Contract Assets | |||
| Holding for-sale assets | |||
| Non-current Assets Due within 1 Year | |||
| Other Current Assets | 7.13 | 173,824,691.82 | 156,215,913.11 |
| Subtotal of Current Assets | 5,359,601,352.52 | 5,432,916,137.46 | |
| Non-current Assets: | |||
| Granting of loans and advances | |||
| Investment in Creditor's Rights | |||
| Investment in Other Creditor's Rights | |||
| Long-term Receivables | |||
| Long-term Equity Investment | 7.17 | 150,295,983.58 | 125,215,950.32 |
| Investment in Other Equity Instruments | |||
| Other Non-current Financial Assets | |||
| Investment Property | 7.20 | 31,603,418.12 | 30,960,256.31 |
| Fixed Assets | 7.21 | 4,248,257,966.73 | 3,941,027,638.25 |
| Projects under Construction | 7.22 | 943,993,396.96 | 611,737,763.71 |
| Productive Biological Assets | |||
| Oil and gas assets | |||
| Right-of-use Assets | |||
| Intangible Assets | 7.26 | 678,561,105.86 | 605,767,648.14 |
| Development Expenditure | |||
| Goodwill | 7.28 | 253,310,074.24 | 253,310,074.24 |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
| Long-term unamortized expenses | 7.29 | 57,679,259.94 | 58,311,175.02 |
| Deferred Income Tax Assets | 7.30 | 94,968,559.88 | 77,212,058.81 |
| Other Non-current Assets | 7.31 | 296,957,402.06 | 97,855,571.08 |
| Total Non-current Assets | 6,755,627,167.37 | 5,801,398,135.88 | |
| Total Assets | 12,115,228,519.89 | 11,234,314,273.34 | |
| Current Liabilities: | |||
| Short-term loan | 7.32 | 400,378,888.89 | 500,318,635.16 |
| Borrowings from the Central Bank | |||
| Borrowings from Banks and Other Financial Institutions | |||
| Transactional financial liabilities | |||
| Derivative Financial Liabilities | |||
| Notes Payable | 7.35 | 1,471,327,551.91 | 1,184,846,663.26 |
| Accounts Payable | 7.36 | 1,898,255,116.17 | 1,458,517,214.69 |
| Received Prepayments | 7.37 | 24,717,751.02 | |
| Contract liabilities | 7.38 | 22,685,660.41 | |
| Financial Assets Sold for Repurchase | |||
| Deposit Taking and Interbank Deposit | |||
| Receiving from Vicariously Traded Securities | |||
| Receiving from Vicariously Sold Securities | |||
| Payroll payable | 7.39 | 138,292,361.67 | 118,780,048.70 |
| Tax Payable | 7.40 | 82,865,303.29 | 68,557,861.25 |
| Other Payables | 7.41 | 15,722,105.17 | 8,181,531.69 |
| Including: interest payable | |||
| Dividends Payable | |||
| Service Charge and Commission Payable | |||
| Reinsurance Accounts Payable | |||
| Holding for-sale liabilities | |||
| Non-current Liabilities Due within 1 Year | 7.43 | 62,837,810.76 | |
| Other Current Liabilities | 7.44 | 1,507,896.52 | |
| Subtotal of Current Liabilities | 4,031,034,884.03 | 3,426,757,516.53 | |
| Non-current Liabilities: | |||
| Insurance Contract Reserves | |||
| Long-term loan | 7.45 | 182,500,000.00 | |
| Bonds Payable | |||
| Including: Preferred Stocks | |||
| Perpetual Bonds | |||
| Lease Liabilities | |||
| Long-term Payables | |||
| Long-term payroll payable | |||
| Expected Liabilities | |||
| Deferred Income | 7.51 | 214,204,302.56 | 172,340,145.15 |
| Deferred Income Tax Liabilities | 7.30 | 51,907,987.42 | 48,067,326.66 |
| Other Non-current Liabilities | |||
| Total Non-current Liabilities | 266,112,289.98 | 402,907,471.81 | |
| Total Liabilities | 4,297,147,174.01 | 3,829,664,988.34 | |
| Owners’ Equity (or Shareholders' |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
| Equity): | |||
| Paid-in capital (or share Capital) | 7.53 | 1,054,987,749.00 | 1,054,987,749.00 |
| Other Equity Instruments | |||
| Including: Preferred Stocks | |||
| Perpetual Bonds | |||
| Capital Reserves | 7.55 | 3,409,439,863.07 | 3,409,439,863.07 |
| Less: Treasury Share | |||
| Other Comprehensive Incomes | 7.57 | -20,631,668.74 | -4,380,983.53 |
| Special Reserves | |||
| Surplus Reserves | 7.59 | 474,769,630.86 | 412,680,608.91 |
| General Risk Reserves | |||
| Undistributed Profits | 7.60 | 2,868,429,319.48 | 2,502,765,125.43 |
| Total Shareholders' Equity Attributable to the Parent Company | 7,786,994,893.67 | 7,375,492,362.88 | |
| Minority Shareholders' Equity | 31,086,452.21 | 29,156,922.12 | |
| Total Shareholders' Equity | 7,818,081,345.88 | 7,404,649,285.00 | |
| Total Liabilities and Shareholders' Equity | 12,115,228,519.89 | 11,234,314,273.34 |
| Item | Note | December 31, 2020 | December 31, 2019 |
| Current Assets: | |||
| Cash and Bank Balances | 191,701,837.06 | 381,471,584.55 | |
| Trading Financial Assets | 780,000,000.00 | ||
| Derivative Financial Assets | |||
| Notes receivable | |||
| Accounts receivable | 17.1 | 1,840,937,312.96 | 1,251,021,599.94 |
| Receivables Financing | |||
| Prepayments | 20,784,751.77 | 15,387,320.53 | |
| Other Receivables | 17.2 | 76,146,034.58 | 49,355,223.60 |
| Including: interest receivable | |||
| Dividends Receivable | |||
| Inventory | 658,887,785.40 | 569,539,150.24 | |
| Contract Assets | |||
| Holding for-sale assets | |||
| Non-current Assets Due within 1 Year | |||
| Other Current Assets | |||
| Subtotal of Current Assets | 2,788,457,721.77 | 3,046,774,878.86 | |
| Non-current Assets: | |||
| Investment in Creditor's Rights | |||
| Investment in Other Creditor's Rights | |||
| Long-term Receivables | |||
| Long-term Equity Investment | 17.3 | 4,071,774,944.06 | 3,437,103,706.24 |
| Investment in Other Equity |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
| Instruments | |||
| Other Non-current Financial Assets | |||
| Investment Property | 31,603,418.12 | 30,960,256.31 | |
| Fixed Assets | 2,125,534,955.22 | 2,163,880,764.04 | |
| Projects under Construction | 324,037,109.77 | 255,670,050.01 | |
| Productive Biological Assets | |||
| Oil and gas assets | |||
| Right-of-use Assets | |||
| Intangible Assets | 261,540,370.50 | 263,906,427.20 | |
| Development Expenditure | |||
| Goodwill | |||
| Long-term unamortized expenses | 18,012,648.52 | 24,317,606.15 | |
| Deferred Income Tax Assets | 33,565,021.69 | 25,299,141.67 | |
| Other Non-current Assets | 53,576,040.76 | 28,726,157.69 | |
| Total Non-current Assets | 6,919,644,508.64 | 6,229,864,109.31 | |
| Total Assets | 9,708,102,230.41 | 9,276,638,988.17 | |
| Current Liabilities: | |||
| Short-term loan | 400,378,888.89 | 500,318,635.16 | |
| Transactional financial liabilities | |||
| Derivative Financial Liabilities | |||
| Notes Payable | 165,480,933.26 | ||
| Accounts Payable | 1,070,753,965.63 | 886,276,735.51 | |
| Received Prepayments | 10,850,973.20 | ||
| Contract liabilities | 1,448,964.90 | ||
| Payroll payable | 73,653,497.54 | 63,291,315.71 | |
| Tax Payable | 54,138,713.22 | 43,013,189.57 | |
| Other Payables | 5,126,892.30 | 31,414,682.50 | |
| Including: interest payable | |||
| Dividends Payable | |||
| Holding for-sale liabilities | |||
| Non-current Liabilities Due within 1 Year | 62,837,810.76 | ||
| Other Current Liabilities | 188,365.44 | ||
| Subtotal of Current Liabilities | 1,771,170,221.18 | 1,598,003,342.41 | |
| Non-current Liabilities: | |||
| Long-term loan | 182,500,000.00 | ||
| Bonds Payable | |||
| Including: Preferred Stocks | |||
| Perpetual Bonds | |||
| Lease Liabilities | |||
| Long-term Payables | |||
| Long-term payroll payable | |||
| Expected Liabilities | |||
| Deferred Income | 70,962,922.25 | 53,152,160.61 | |
| Deferred Income Tax Liabilities | 28,630,095.25 | 26,087,040.58 | |
| Other Non-current Liabilities | |||
| Subtotal of Non-current Liabilities | 99,593,017.50 | 261,739,201.19 | |
| Total Liabilities | 1,870,763,238.68 | 1,859,742,543.60 | |
| Owners’ Equity (or Shareholders' Equity): | |||
| Paid-in Capital (or Share Capital) | 1,054,987,749.00 | 1,054,987,749.00 | |
| Other Equity Instruments | |||
| Including: Preferred Stocks |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
| Perpetual Bonds | |||
| Capital Reserves | 3,409,439,863.07 | 3,409,439,863.07 | |
| Less: Treasury Share | |||
| Other Comprehensive Incomes | |||
| Special Reserves | |||
| Surplus Reserves | 474,769,630.86 | 412,680,608.91 | |
| Undistributed Profits | 2,898,141,748.80 | 2,539,788,223.59 | |
| Total Owners’ Equity (or Shareholders' Equity) | 7,837,338,991.73 | 7,416,896,444.57 | |
| Total Liabilities and Owners’ Equity (or Shareholders' Equity) | 9,708,102,230.41 | 9,276,638,988.17 |
| Item | Note | 2020 | 2019 |
| I. Total Operating Revenue | 6,511,094,914.05 | 5,358,953,813.60 | |
| Including: Operating Revenue | 7.61 | 6,511,094,914.05 | 5,358,953,813.60 |
| Interest Income | |||
| Earned Premiums | |||
| Service Charge and Commission Income | |||
| II. Total Operating Cost | 5,848,025,496.26 | 4,834,412,471.77 | |
| Including: Operating Cost | 7.61 | 5,034,014,528.39 | 3,949,993,344.06 |
| Interest Expenditures | |||
| Service Charge and Commission Expenses | |||
| Surrender Value | |||
| Net Claims Paid | |||
| Net Amount of Withdrawn Reserve for Insurance Liability Contract | |||
| Policyholder Dividend Expense | |||
| Reinsurance Cost | |||
| Taxes and Surcharges | 7.62 | 58,072,530.91 | 50,291,733.24 |
| Sales Expenses | 7.63 | 123,896,252.24 | 287,078,723.04 |
| Administration expenses | 7.64 | 233,071,874.47 | 229,643,454.40 |
| Research and development expense | 7.65 | 354,851,747.66 | 314,307,191.22 |
| Financial Expenses | 7.66 | 44,118,562.59 | 3,098,025.81 |
| Including: interest expenses | 19,744,058.04 | 28,508,893.08 | |
| Interest Income | 17,108,552.05 | 24,504,258.91 | |
| Add: Other income | 7.67 | 33,135,066.17 | 26,527,210.85 |
| Investment Income (Mark"-" for Loss) | 7.68 | 43,244,216.77 | 51,436,523.06 |
| Including: Investment Income from Affiliates and Joint Ventures | 25,080,033.26 | 24,507,700.52 | |
| Profits from derecognition of Financial Assets at Amortized Cost | |||
| Exchange Gains (Mark"-" for Losses) | |||
| Profit of Net Exposure Hedging (Mark"-" for Loss) | |||
| Incomes from changes in fair value |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
| (losses marked with "-") | |||
| Credit Impairment Losses (Mark"-" for Loss) | 7.71 | -19,654,766.99 | -15,023,695.09 |
| Asset Impairment Losses (Mark"-" for Loss) | 7.72 | -22,439,872.62 | -50,422,877.45 |
| Asset Disposal Income (Mark"-" for Loss) | 7.73 | 8,747,482.63 | -5,522,498.81 |
| III. Operating Profit (Mark"-" for Loss) | 706,101,543.75 | 531,536,004.39 | |
| Add: Non-operating Revenues | 7.74 | 5,654,672.25 | 1,290,893.65 |
| Less: Non-operating Expenses | 7.75 | 1,670,025.65 | 4,074,491.48 |
| IV. Total Profit (Mark"-" for Total Loss) | 710,086,190.35 | 528,752,406.56 | |
| Less: Income Tax Expense | 7.76 | 79,951,976.75 | 68,705,774.54 |
| V. Net Profit (Mark"-" for Net Loss) | 630,134,213.60 | 460,046,632.02 | |
| (1) Classified by operation continuity | |||
| 1. Net Profit as a Going Concern (Mark"-" for Net Loss) | 630,134,213.60 | 460,046,632.02 | |
| 2. Net Profit of Discontinued Operation (Mark"-" for Net Loss) | |||
| (2). Classified by the attribution of ownership | |||
| 1. Net Profit Attributable to Shareholders of Parent Company | 628,200,888.31 | 456,205,818.45 | |
| 2. Minority Shareholders' Profit and Loss | 1,933,325.29 | 3,840,813.57 | |
| VI. Net Amount of Other Comprehensive Incomes after Tax | -16,254,480.41 | -1,678,822.61 | |
| (1) Net Amount of Other Comprehensive Incomes after Tax Attributable to the Parent Company's Owner | -16,250,685.21 | -1,787,225.14 | |
| 1, Other comprehensive income that cannot be reclassified as P/L | |||
| (1) Re-measure the variation of the defined benefit plan | |||
| (2) Other comprehensive income that cannot be transferred to P/L under the equity method | |||
| (3) Changes in the fair value of investment in other equity instruments | |||
| (4) Changes in the fair value of the credit risk of the enterprise | |||
| 2. Other comprehensive income that will be reclassified as P/L | -16,250,685.21 | -1,787,225.14 | |
| (1) Other comprehensive income that can be transferred to P/L under the equity method | |||
| (2) Changes in the fair value of investment in other creditor's rights | |||
| (3) Financial assets reclassified into other comprehensive income | |||
| (4) Provisions for the credit impairment of investment in other creditor's rights | |||
| (5) Cash flow hedge reserves | |||
| (6) Currency translation difference | -16,250,685.21 | -1,787,225.14 | |
| (7) Others | |||
| (2) Net Amount of Other Comprehensive Incomes After Tax Attributable to Minority Shareholders | -3,795.20 | 108,402.53 | |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
| VII. Total Comprehensive Income | 613,879,733.19 | 458,367,809.41 | |
| (1) Total Comprehensive Income Attributable to the Parent Company's Owner | 611,950,203.10 | 454,418,593.31 | |
| (2) Total Comprehensive Income Attributable to Minority Shareholders | 1,929,530.09 | 3,949,216.10 | |
| VIII. Earnings per Share: | |||
| (1) Basic Earnings per Share | 0.60 | 0.43 | |
| (2) Diluted Earnings per Share | 0.60 | 0.43 |
| Item | Note | 2020 | 2019 |
| I. Operating Revenue | XVII.4 | 3,812,588,627.87 | 3,471,451,830.55 |
| Less: Operating Cost | XVII.4 | 2,834,521,118.72 | 2,521,299,294.61 |
| Taxes and Surcharges | 34,558,652.15 | 27,102,285.18 | |
| Sales Expenses | 3,458,522.18 | 47,128,965.03 | |
| Administration expenses | 116,526,814.41 | 107,566,520.28 | |
| Research and development expense | 291,842,003.68 | 251,484,563.46 | |
| Financial Expenses | 14,801,082.01 | 13,143,010.17 | |
| Including: interest expenses | 19,206,506.13 | 28,474,119.42 | |
| Interest Income | 4,849,517.72 | 15,930,424.41 | |
| Add: Other income | 14,345,810.36 | 9,863,172.06 | |
| Investment Income (Mark"-" for Loss) | XVII.5 | 180,416,534.81 | 49,915,639.66 |
| Including: Investment Income from Affiliates and Joint Ventures | 25,080,033.26 | 24,507,700.52 | |
| Profits from Derecognition of Financial Assets at Amortized Cost | |||
| Profit of Net Exposure Hedging (loss in "-") | |||
| Incomes from changes in fair value (loss in "-") | |||
| Credit Impairment Losses (loss in "-") | -38,718,677.92 | -13,484,285.65 | |
| Asset Impairment Losses (loss in "-") | -5,058,272.24 | -14,824,404.44 | |
| Asset Disposal Income (loss in "-") | -601,831.86 | -5,558,792.96 | |
| II. Operating Profit (loss in "-") | 667,263,997.87 | 529,638,520.49 | |
| Add: Non-operating Revenues | 1,864,571.67 | 57,956.38 | |
| Less: Non-operating Expenses | 448,631.07 | 2,942,718.95 | |
| III. Total Profit (total loss in “-“) | 668,679,938.47 | 526,753,757.92 | |
| Less: Income Tax Expense | 47,789,719.00 | 61,114,737.93 | |
| IV. Net Profit (Mark for Net Loss) | 620,890,219.47 | 465,639,019.99 | |
| (I) Net Profit as a Going Concern (net loss in “-“) | 620,890,219.47 | 465,639,019.99 | |
| (II) Net Profit of Discontinued Operation (net loss in “-“) | |||
| V. Net Amount of Other Comprehensive Incomes After Tax | |||
| (1) Other comprehensive income that |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
| cannot be reclassified as P/L | |||
| 1. Re-measure the variation of the defined benefit plan | |||
| 2. Other comprehensive income that cannot be transferred to P/L under the equity method | |||
| 3. Changes in the fair value of investment in other equity instruments | |||
| 4. Changes in the fair value of the credit risk of the enterprise | |||
| (2) Other comprehensive income that will be reclassified as P/L | |||
| 1. Other comprehensive income that can be transferred to P/L under the equity method | |||
| 2. Changes in the fair value of investment in other creditor's rights | |||
| 3. Financial assets reclassified into other comprehensive income | |||
| 4. Provisions for the credit impairment of investment in other creditor's rights | |||
| 5. Cash flow hedge reserves | |||
| 6. Currency translation difference | |||
| 7. Others | |||
| VI. Total Comprehensive Income | 620,890,219.47 | 465,639,019.99 | |
| VII. Earnings per Share: | |||
| (I) Basic Earnings per Share | 0.59 | 0.44 | |
| (II) Diluted Earnings per Share | 0.59 | 0.44 |
| Item | Note | 2020 | 2019 |
| I. Cash Flow Generated by Operational Activities: | |||
| Cash from Sales of Merchandise and Provision of Services | 6,530,642,868.71 | 5,881,514,603.58 | |
| Net Increase in Customer's Bank Deposits and Interbank Deposits | |||
| Net Increase in Borrowings from the Central Bank | |||
| Net Increase in Borrowings from Other Financial Institutions | |||
| Cash Arising from Receiving Premiums for the Original Insurance Contract | |||
| Net Amount Arising from Reinsurance Business | |||
| Net Increase in Deposits and Investments from Policyholders | |||
| Cash Arising from Interests, Service Charges and Commissions | |||
| Net Increase in Borrowings from Banks and Other Financial Institutions |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
| Net Increase in Repurchase Business Funds | |||
| Net Amount of Cash Received from the Vicariously Traded Securities | |||
| Tax Refund | 181,015,889.86 | 190,669,266.10 | |
| Other Received Cashes Related to Operational Activities | VII.78 | 120,356,568.18 | 94,979,182.94 |
| Subtotal of cash inflow from operational activities | 6,832,015,326.75 | 6,167,163,052.62 | |
| Cash Paid for Merchandise and Services | 4,171,704,603.08 | 3,457,045,690.09 | |
| Net Increase in Loans and Advances to Customers | |||
| Net Increase in Deposits with Central Bank and Other Financial Institutions | |||
| Cash Paid for Original Insurance Contract Claims | |||
| Net increase of funds lent | |||
| Cash Paid for Interests, Service Charges and Commissions | |||
| Cash Paid for Policy Dividends | |||
| Cash Paid to and for Employees | 863,443,268.09 | 739,569,655.01 | |
| Cash Paid for Taxes and Surcharges | 339,305,713.24 | 270,854,621.73 | |
| Other Paid Cashes Related to Operational Activities | VII.78 | 333,876,162.33 | 460,271,726.39 |
| Subtotal of cash outflow from operational activities | 5,708,329,746.74 | 4,927,741,693.22 | |
| Net cash flow generated by operating activities | 1,123,685,580.01 | 1,239,421,359.40 | |
| II. Cash Flow from Investment Activities: | |||
| Cash Arising from Disposal of Investments | 1,678,164,183.51 | 2,671,428,822.54 | |
| Cash Arising from Investment Incomes | |||
| Net Cash Arising from Disposal of Fixed Assets, Intangible Assets and Other Long-term Assets | 20,542,230.33 | 1,266,764.21 | |
| Net Cash Arising from Disposal of Subsidiaries and Other Business Units | |||
| Other Received Cashes Related to Investment Activities | |||
| Subtotal of cash inflow from investment activities | 1,698,706,413.84 | 2,672,695,586.75 | |
| Cash Paid for Purchase and Construction of Fixed Assets, Intangible Assets and Other Long-term Assets | 1,405,987,218.49 | 939,849,836.70 | |
| Cash Paid for Investments | 880,000,000.00 | 2,727,000,000.00 | |
| Net Increase in Pledge Loans | |||
| Net Cash Paid for Acquisition of Subsidiaries and Other Business Units | 32,100,000.00 | ||
| Other Paid Cashes Related to Investment Activities | |||
| Subtotal of Cash Outflow from Investment Activities | 2,285,987,218.49 | 3,698,949,836.70 | |
| Net amount of cash flow generated by investment activities | -587,280,804.65 | -1,026,254,249.95 | |
| III. Cash Flow from Financing Activities: | |||
| Cash Arising from Absorbing |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
| Investments | |||
| Including: Cash Arising from Subsidiaries Absorbing Investments by Minority Shareholders | |||
| Cash Arising from Borrowings | 576,775,000.00 | 532,000,000.00 | |
| Other Received Cashes Related to Financing Activities | |||
| Subtotal of cash inflow from financing activities | 576,775,000.00 | 532,000,000.00 | |
| Cash Paid for Debts Repayment | 921,675,000.00 | 445,000,000.00 | |
| Cash Paid for Distribution of Dividends and Profits or Payment of Interests | 220,060,874.38 | 328,140,065.30 | |
| Including: Dividends and Profits Paid to Minority Shareholders by Subsidiaries | |||
| Other Paid Cashes Related to Financing Activities | |||
| Subtotal of cash outflow from financing activities | 1,141,735,874.38 | 773,140,065.30 | |
| Net cash flow generated by financing activities | -564,960,874.38 | -241,140,065.30 | |
| IV. Impact of Fluctuation in Exchange Rate on Cash and Cash Equivalents | -11,759,547.02 | 11,482,675.93 | |
| V. Net Increase in Cash and Cash Equivalents | -40,315,646.04 | -16,490,279.92 | |
| Add: Cash and Cash Equivalents at the Commencement of the Period | 715,182,068.12 | 731,672,348.04 | |
| VI. Cash and Cash Equivalents at the End of the Period | 674,866,422.08 | 715,182,068.12 |
| Item | Note | 2020 | 2019 |
| I. Cash Flow Generated by Operational Activities: | |||
| Cash from Sales of Merchandise and Provision of Services | 2,328,443,759.77 | 2,456,914,650.08 | |
| Tax Refund | 12,413,742.54 | ||
| Other Received Cashes Related to Operational Activities | 52,156,057.09 | 50,231,719.37 | |
| Subtotal of cash inflow from operational activities | 2,380,599,816.86 | 2,519,560,111.99 | |
| Cash Paid for Merchandise and Services | 1,086,508,531.20 | 753,950,126.40 | |
| Cash Paid to and for Employees | 477,432,560.14 | 414,522,563.71 | |
| Cash Paid for Taxes and Surcharges | 244,443,630.66 | 194,690,785.38 | |
| Other Paid Cashes Related to Operational Activities | 198,896,378.47 | 195,358,401.90 | |
| Subtotal of cash outflow from operational activities | 2,007,281,100.47 | 1,558,521,877.39 | |
| Net cash flow generated by operating activities | 373,318,716.39 | 961,038,234.60 | |
| II. Cash Flow from Investment |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
| Activities: | |||
| Cash Arising from Disposal of Investments | 1,691,336,501.55 | 2,449,907,939.14 | |
| Cash Arising from Investment Incomes | 150,000,000.00 | ||
| et Cash Arising from Disposal of Fixed Assets, Intangible Assets and Other Long-term Assets | 128,809,847.55 | 108,441,556.92 | |
| Net Cash Arising from Disposal of Subsidiaries and Other Business Units | |||
| Other Received Cashes Related to Investment Activities | 16,003,000.00 | ||
| Subtotal of cash inflow from investment activities | 1,986,149,349.10 | 2,558,349,496.06 | |
| Cash Paid for Purchase and Construction of Fixed Assets, Intangible Assets and Other Long-term Assets | 418,264,872.95 | 468,426,007.27 | |
| Cash Paid for Investments | 1,515,591,204.56 | 2,947,003,013.09 | |
| Net Cash Paid for Acquisition of Subsidiaries and Other Business Units | |||
| Other Paid Cashes Related to Investment Activities | 50,050,000.00 | 11,950,000.00 | |
| Subtotal of Cash Outflow from Investment Activities | 1,983,906,077.51 | 3,427,379,020.36 | |
| Net amount of cash flow generated by investment activities | 2,243,271.59 | -869,029,524.30 | |
| III. Cash Flow from Financing Activities: | |||
| Cash Arising from Absorbing Investments | |||
| Cash Arising from Borrowings | 400,000,000.00 | 532,000,000.00 | |
| Other Received Cashes Related to Financing Activities | |||
| Subtotal of cash inflow from financing activities | 400,000,000.00 | 532,000,000.00 | |
| Cash Paid for Debts Repayment | 744,900,000.00 | 445,000,000.00 | |
| Cash Paid for Distribution of Dividends and Profits or Payment of Interest | 220,031,735.47 | 328,105,291.64 | |
| Other Paid Cashes Related to Financing Activities | |||
| Subtotal of cash outflow from financing activities | 964,931,735.47 | 773,105,291.64 | |
| Net cash flow generated by financing activities | -564,931,735.47 | -241,105,291.64 | |
| IV. Impact of Fluctuation in Exchange Rate on Cash and Cash Equivalents | |||
| V. Net Increase in Cash and Cash Equivalents | -189,369,747.49 | -149,096,581.34 | |
| Add: Cash and Cash Equivalents at the Commencement of the Period | 381,071,584.55 | 530,168,165.89 | |
| VI. Cash and Cash Equivalents at the End of the Period | 191,701,837.06 | 381,071,584.55 |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
Consolidated Statement of Changes in Owners' EquityFor the Period from January 2020 to December 2020
Unit:Yuan Currency:RMB
| Item | 2020 | ||||||||||||||
| Shareholders' Equity Attributable to the Parent Company's Owner | Minority Shareholders 'Equity | Total Shareholder s' Equity | |||||||||||||
| Paid-in Capital (or Share Capital) | Other Equity Instruments | Capital Reserves | Less: Treasury Shares | Other Comprehensive Incomes | Special Reserves | Surplus Reserves | General Risk Reserves | Undistributed Profits | Others | Subtotal | |||||
| Preferred Stocks | Perpetual Bonds | Others | |||||||||||||
| I. Balance at the End of Last Year | 1,054,987,749.00 | 3,409,439,863.07 | -4,380,983.53 | 412,680,608.91 | 2,502,765,125.43 | 7,375,492,362.88 | 29,156,922.12 | 7,404,649,285.00 | |||||||
| Add: Changes in Accounting Policies | |||||||||||||||
| Correction of Errors in the Previous Period | |||||||||||||||
| Consolidated under the Same Control | |||||||||||||||
| Others | |||||||||||||||
| II. Balance at the Start of This Year | 1,054,987,749.00 | 3,409,439,863.07 | -4,380,983.53 | 412,680,608.91 | 2,502,765,125.43 | 7,375,492,362.88 | 29,156,922.12 | 7,404,649,285.00 | |||||||
| III. Increases or Decreases in This Period (Decreases in "-") | -16,250,685.21 | 62,089,021.95 | 365,664,194.05 | 411,502,530.79 | 1,929,530.09 | 413,432,060.88 | |||||||||
| (I) Total Comprehensive Income | -16,250,685.21 | 628,200,888.31 | 611,950,203.10 | 1,929,530.09 | 613,879,733.19 | ||||||||||
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
| (II) Shareholders' Contribution and Reduction in Capital | |||||||||||||||
| 1. Common stock invested by the owner | |||||||||||||||
| 2. Capital Invested by Holders of Other Equity Instruments | |||||||||||||||
| 3. Amount of Share-based Payments Recorded into Shareholders' Equity | |||||||||||||||
| 4. Others | |||||||||||||||
| (III) Profit Distribution | 62,089,021.95 | -262,536,694.26 | -200,447,672.31 | -200,447,672.31 | |||||||||||
| 1. Appropriation of Surplus Reserves | 62,089,021.95 | -62,089,021.95 | |||||||||||||
| 2. Appropriation of General Risk Reserves | |||||||||||||||
| 3. Distribution | -200,447,672.31 | -200,447,672.31 | -200,447,672.31 |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
| to Owners (or Shareholders) | |||||||||||||||
| 4. Others | |||||||||||||||
| (IV) Internal Carry-forward of Shareholders' Equity | |||||||||||||||
| 1. Capital Reserves Transferred into Capital (or Share Capital) | |||||||||||||||
| 2. Surplus Reserves Transferred into Capital (or Share Capital) | |||||||||||||||
| 3. Surplus Reserves Covering Losses | |||||||||||||||
| 4. Carry-forward retained earnings of the variation of the defined benefit plan | |||||||||||||||
| 5. Other Carry-forward Retained Earnings of the |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
| Comprehensive Income | |||||||||||||||
| 6. Others | |||||||||||||||
| (V) Special Reserves | |||||||||||||||
| 1. Withdrawal in this period | |||||||||||||||
| 2. Used in this period | |||||||||||||||
| (VI) Others | |||||||||||||||
| IV. Balance at the End of This Period | 1,054,987,749.00 | 3,409,439,863.07 | -20,631,668.74 | 474,769,630.86 | 2,868,429,319.48 | 7,786,994,893.67 | 31,086,452.21 | 7,818,081,345.88 |
| Item | 2019 | ||||||||||||||
| Shareholders' Equity Attributable to the Parent Company's Owner | Minority Shareholders' Equity | Total Shareholders' Equity | |||||||||||||
| Paid-in Capital (Or Share Capital) | Capital Reserves | Less: Treasury Share | Other Comprehensive Incomes | Special Reserves | Surplus Reserves | Genera l Risk Reserves | Undistributed Profits | Others | Subtotal | ||||||
| Preferred Stocks | Perpetual Bonds | Others | |||||||||||||
| I. Balance at the End of Last Year | 727,577,758.00 | 3,736,849,854.07 | -2,593,758.39 | 366,116,706.91 | 2,392,885,245.28 | 7,220,835,805.87 | 25,207,706.02 | 7,246,043,511.89 | |||||||
| Add: Changes in Accounting Policies | |||||||||||||||
| Correction of Errors in the Previous Period | |||||||||||||||
| Consolidated under the | |||||||||||||||
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
| Same Control | |||||||||||||||
| Others | |||||||||||||||
| II. Balance at the Start of This Year | 727,577,758.00 | 3,736,849,854.07 | -2,593,758.39 | 366,116,706.91 | 2,392,885,245.28 | 7,220,835,805.87 | 25,207,706.02 | 7,246,043,511.89 | |||||||
| III. Increases or Decreases in This Period (Decreases in “-“) | 327,409,991.00 | -327,409,991.00 | -1,787,225.14 | 46,563,902.00 | 109,879,880.15 | 154,656,557.01 | 3,949,216.10 | 158,605,773.11 | |||||||
| (I) Total Comprehensive Income | -1,787,225.14 | 456,205,818.45 | 454,418,593.31 | 3,949,216.10 | 458,367,809.41 | ||||||||||
| (II) Shareholders' Contribution and Reduction in Capital | |||||||||||||||
| 1. Common stock invested by the owner | |||||||||||||||
| 2. Capital Invested by Holders of Other Equity Instruments | |||||||||||||||
| 3. Amount of Share-based Payments Recorded into Shareholders' Equity |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
| 4. Others | |||||||||||||||
| (III) Profit Distribution | 46,563,902.00 | -346,325,938.30 | -299,762,036.30 | -299,762,036.30 | |||||||||||
| 1. Appropriation of Surplus Reserves | 46,563,902.00 | -46,563,902.00 | |||||||||||||
| 2. Appropriation of General Risk Reserves | |||||||||||||||
| 3. Distribution to Owners (or Shareholders) | -299,762,036.30 | -299,762,036.30 | -299,762,036.30 | ||||||||||||
| 4. Others | |||||||||||||||
| (IV) Internal Carry-forward of Shareholders' Equity | 327,409,991.00 | -327,409,991.00 | |||||||||||||
| 1. Capital Reserves Transferred into Capital (or Share Capital) | 327,409,991.00 | -327,409,991.00 | |||||||||||||
| 2. Surplus Reserves Transferred into Capital (or Share Capital) | |||||||||||||||
| 3. Surplus Reserves Covering |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
| Losses | |||||||||||||||
| 4. Carry-forward retained earnings of the variation of the defined benefit plan | |||||||||||||||
| 5. Other Carry-forward Retained Earnings of the Comprehensive Income | |||||||||||||||
| 6. Others | |||||||||||||||
| (V) Special Reserves | |||||||||||||||
| 1. Withdrawal in this period | |||||||||||||||
| 2. Used in this period | |||||||||||||||
| (VI) Others | |||||||||||||||
| IV. Balance at the End of This Period | 1,054,987,749.00 | 3,409,439,863.07 | -4,380,983.53 | 412,680,608.91 | 2,502,765,125.43 | 7,375,492,362.88 | 29,156,922.12 | 7,404,649,285.00 |
| Item | 2020 | ||||||||||
| Paid-in Capital (or Share Capital) | Other Equity Instruments | Capital Reserves | Less: Treasury Share | Other Comprehensive | Special Reserves | Surplus Reserves | Undistributed Profits | Total Shareholders' Equity | |||
| Preferred Stocks | Perpetual Bonds | Others | |||||||||
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
| Incomes | |||||||||||
| I. Balance at the End of Last Year | 1,054,987,749.00 | 3,409,439,863.07 | 412,680,608.91 | 2,539,788,223.59 | 7,416,896,444.57 | ||||||
| Add: Changes in Accounting Policies | |||||||||||
| Correction of Errors in the Previous Period | |||||||||||
| Others | |||||||||||
| II. Balance at the Start of This Year | 1,054,987,749.00 | 3,409,439,863.07 | 412,680,608.91 | 2,539,788,223.59 | 7,416,896,444.57 | ||||||
| III. Increases or Decreases in This Period (Decreases in “-“) | 62,089,021.95 | 358,353,525.21 | 420,442,547.16 | ||||||||
| (1) Total comprehensive income | 620,890,219.47 | 620,890,219.47 | |||||||||
| II) Shareholders' Contribution and Reduction in Capital | |||||||||||
| 1. Common stock invested by the owner | |||||||||||
| 2. Capital Invested by Holders of Other Equity Instruments | |||||||||||
| 3. Amount of Share-based Payments Recorded into Shareholders' Equity | |||||||||||
| 4. Others | |||||||||||
| (III) Profit Distribution | 62,089,021.95 | -262,536,694.26 | -200,447,672.31 | ||||||||
| 1. Appropriation of Surplus Reserves | 62,089,021.95 | -62,089,021.95 | |||||||||
| 2. Distribution to Owners (or Shareholders) | -200,447,672.31 | -200,447,672.31 | |||||||||
| 3. Others | |||||||||||
| (IV) Internal |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
| Carry-forward of Shareholders' Equity | |||||||||||
| 1. Capital Reserves Transferred into Capital (or Share Capital) | |||||||||||
| 2. Surplus Reserves Transferred into Capital (or Share Capital) | |||||||||||
| 3. Surplus Reserves Covering Losses | |||||||||||
| 4. Carry-forward retained earnings of the variation of the defined benefit plan | |||||||||||
| 5. Other Carry-forward Retained Earnings of the Comprehensive Income | |||||||||||
| 6. Others | |||||||||||
| (V) Special Reserves | |||||||||||
| 1. Withdrawal in this period | |||||||||||
| 2. Used in This Period | |||||||||||
| (VI) Others | |||||||||||
| IV. Balance at the End of This Period | 1,054,987,749.00 | 3,409,439,863.07 | 474,769,630.86 | 2,898,141,748.80 | 7,837,338,991.73 |
| Item | 2019 | ||||||||||
| Paid-in Capital (Or Share Capital) | Other Equity Instruments | Capital Reserves | Less: Treasury Share | Other Comprehensive Incomes | Special Reserves | Surplus Reserves | Undistributed Profits | Total Shareholders' Equity | |||
| Preferred Stocks | Perpetual Bonds | Others | |||||||||
| I. Balance at the End of Last Year | 727,577,758.00 | 3,736,849,854.07 | 366,116,706.91 | 2,420,475,141.90 | 7,251,019,460.88 | ||||||
| Add: Changes in Accounting Policies | |||||||||||
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
| Correction of Errors in the Previous Period | |||||||||||
| Others | |||||||||||
| II. Balance at the Start of This Year | 727,577,758.00 | 3,736,849,854.07 | 366,116,706.91 | 2,420,475,141.90 | 7,251,019,460.88 | ||||||
| III. Increases or Decreases in This Period (Decreases in “-“) | 327,409,991.00 | -327,409,991.00 | 46,563,902.00 | 119,313,081.69 | 165,876,983.69 | ||||||
| (I) Total Comprehensive Income | 465,639,019.99 | 465,639,019.99 | |||||||||
| (II) Shareholders' Contribution and Reduction in Capital | |||||||||||
| 1. Common stock invested by the owner | |||||||||||
| 2. Capital Invested by Holders of Other Equity Instruments | |||||||||||
| 3. Amount of Share-based Payments Recorded into Shareholders' Equity | |||||||||||
| 4. Others | |||||||||||
| (III) Profit Distribution | 46,563,902.00 | -346,325,938.30 | -299,762,036.30 | ||||||||
| 1. Appropriation of Surplus Reserves | 46,563,902.00 | -46,563,902.00 | |||||||||
| 2. Distribution to Owners (or Shareholders) | -299,762,036.30 | -299,762,036.30 | |||||||||
| 3. Others | |||||||||||
| (IV) Internal Carry-forward of Shareholders' Equity | 327,409,991.00 | -327,409,991.00 | |||||||||
| 1. Capital Reserves Transferred into Capital (or Share Capital) | 327,409,991.00 | -327,409,991.00 |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
| 2. Surplus Reserves Transferred into Capital (or Share Capital) | |||||||||||
| 3. Surplus Reserves Covering Losses | |||||||||||
| 4. Carry-forward retained earnings of the variation of the defined benefit plan | |||||||||||
| 5. Other Carry-forward Retained Earnings of the Comprehensive Income | |||||||||||
| 6. Others | |||||||||||
| (V) Special Reserves | |||||||||||
| 1. Withdrawal in this period | |||||||||||
| 2. Used in this period | |||||||||||
| (VI) Others | |||||||||||
| IV. Balance at the End of This Period | 1,054,987,749.00 | 3,409,439,863.07 | 412,680,608.91 | 2,539,788,223.59 | 7,416,896,444.57 |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
III. Basic Information about the Company
1. Company Profile
√Applicable □Non-applicable
Ningbo Tuopu Group Co., Ltd. (hereinafter referred to as "Company" or "The Company"), acompany limited by shares changed from Ningbo Tuopu Brake System Co., Ltd., incorporated byMECCA INTERNATIONAL HOLDING （HK） LIMITED, Ningbo Jinlun Equity InvestmentPartnership (Limited Partnership) and Ningbo Jinrun Equity Investment Partnership (LimitedPartnership), holder of the Corporate Business License (Registration No.: 91330200761450380T), listedon Shanghai Stock Exchange (SSE) in March 2015, is specialized in manufacturing - automobilemanufacturing.As of December 31, 2020, the Company has issued a total of 1,054,987,749 shares, with aregistered capital of RMB 1,054,987,749 million, registered address: 268 Yuwangshan Road, DaqiStreet, Beilun District, Ningbo, Zhejiang, headquartered in 268 Yuwangshan Road, Daqi Street, BeilunDistrict, Ningbo, Zhejiang, is engaged in production and sales of automobile parts. MECCAINTERNATIONAL HOLDING （HK） LIMITED is the parent company of the Company is, and WuJianshu is the actual controller of the Company.
This financial statement was approved for release by the Board of Directors on April 19, 2021.
2. Scope of consolidated statement
√Applicable □Non-applicable
As of December 31
st, 2020, the subsidiaries included in the scope of consolidated statement of theCompany are as follows:
| Name of Subsidiary |
| 1.Ningbo Tuopu Import and Export Co., Ltd. (hereinafter referred to as "Tuopu Imp&Exp.") |
| 2. Ningbo Tuopu Automobile Parts Co., Ltd. (hereinafter referred to as "Tuopu Parts") |
| 3. Ningbo Tuopu Acoustics Vibration Technology Co., Ltd. (hereinafter referred to as "Tuopu Acoustics Vibration") |
| 4. Yantai Tuopu Automobile Parts Co., Ltd. (hereinafter referred to as "Yantai Tuopu") |
| 5. Liuzhou Tuopu Automobile Parts Co., Ltd. (hereinafter referred to as "Liuzhou Tuopu") |
| 6. Shenyang Tuopu Automobile Parts Co., Ltd. (hereinafter referred to as "Shenyang Tuopu") |
| 7. Ningbo Tuopu Intelligent Brake System Co., Ltd. (hereinafter referred to as "Tuopu Intelligent Brake") |
| 8. Tuopu North American Ltd (hereinafter referred to as " North American ") |
| 9. Ningbo Qianhui Automobile Trim Parts Co., Ltd. (hereinafter referred to as "Ningbo Qianhui") |
| 10. Tuopu North American USA Limited,INC (hereinafter referred to as " Tuopu North American USA") |
| 11. Sichuan Tuopu Automobile Parts Co., Ltd. (hereinafter referred to as "Sichuan Tuopu") |
| 12. Wuhan Tuopu Maigao Automobile Parts Co., Ltd. (hereinafter referred to as "Wuhan Tuopu") |
| 13. Pinghu Tuopu Special Fabric Co., Ltd. (hereinafter referred to as "Pinghu Tuopu") |
| 14. Shanghai Towin Automotive Technology Co., Ltd. (hereinafter referred to as "Shanghai Towin") |
| 15. Ningbo Tuopu Industrial Automation Co., Ltd. (hereinafter referred to as "Tuopu Industrial Automation") |
| 16. Ningbo Tuopu Investment Co., Ltd. (hereinafter referred to as "Tuopu Investment") |
| 17. Ningbo Yuxiang E-commerce Co., Ltd. (hereinafter referred to as "Yuxiang E-commerce") |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
| Name of Subsidiary |
| 18. Tuopu Group International Co., Ltd. (hereinafter referred to as "Tuopu International") |
| 19. Baoji Tuopu Maigao Automobile Parts Co., Ltd. (hereinafter referred to as "Baoji Tuopu") |
| 20. Taizhou Tuopu Automobile Parts Co., Ltd. (hereinafter referred to as "Taizhou Tuopu") |
| 21. Ningbo Tuopu Mechatronic System Co., Ltd. (hereinafter referred to as "Tuopu Mechatronic System") |
| 22. Tuopu Do Brasil Autope?as Ltda. (hereinafter referred to as "Tuopu Brasil") |
| 23. Tuopu Sweden Technology AB (hereinafter referred to as "Tuopu Sweden") |
| 24. Jinzhong Tuopu Automobile Parts Co., Ltd. (hereinafter referred to as "Jinzhong Tuopu") |
| 25. Shenzhen Towin Automotive Technology Co., Ltd. (hereinafter referred to as "Shenzhen Towin") |
| 26. Zhejiang Towin Automobile Parts Co., Ltd. (hereinafter referred to as "Zhejiang Towin") |
| 27. Sichuan Maigao Automobile Parts Co., Ltd. (hereinafter referred to as "Sichuan Maigao") |
| 28. Hunan Tuopu Automobile Parts Co., Ltd. (hereinafter referred to as "Hunan Tuopu") |
| 29. TUOPU (MALAYSIA) SDN.BHD. (hereinafter referred to as "Tuopu Malaysia") |
| 30. Tuopu USA, LLC (hereinafter referred to as "Tuopu USA") |
| 31. Ningbo Tuopu Chassis System Co., Ltd. (hereinafter referred to as "Tuopu Chassis") |
| 32. Tuopu EV Thermal Management System (Ningbo) Co., Ltd. (hereinafter referred to as "Tuopu Thermal Management") |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
1. Statement on compliance with Accounting Standards for Business EnterprisesThis financial statement is in compliance with the requirements in the Accounting Standards forBusiness Enterprises promulgated by the Ministry of Finance and presents truly and completely thefinancial position, operating results and cash flows of the Company.
2. Accounting Period
The accounting period of the Company is from 1 January to 31 December of each calendar year.
3. Operating cycle
√Applicable □Non-applicable
The Company's operating cycle is 12 months.
4. Functional currency
The reporting currency is RMB ("RMB").
5. The accounting treatment of business combinations involving enterprises under common controland business combinations not involving enterprises under common control
√Applicable □Non-applicable
Business combination under common control: The assets and liabilities acquired by the merging partyin business combination shall be measured at the book value of the assets, liabilities of the merged party(including goodwill incurred in the acquisition of the merged party by ultimate controlling party) in theconsolidated financial statements of the ultimate controlling party on the date of combination. Thedifference between the book value of the net assets obtained and the book value of the considerationpaid for the combination (or total nominal value of the issued shares) is adjusted to capital premium incapital reserve. Adjustments shall be made to retained earnings in the event that the share premiums inthe capital reserves are not sufficient for write-down.Business combinations involving entities not under common control: The assets paid and liabilitiesincurred or committed as a consideration of business combination by the merging party were measuredat fair value on the date of acquisition and the difference between the fair value and its book value shallbe charged to the profit or loss for the period. Where the cost of combination is higher than the fairvalue of the identifiable net assets acquired from the merging party in business combination, suchdifference shall be recognized as goodwill; where the cost of combination is less than the fair value ofthe identifiable net assets acquired from the merging party in business combination, such differenceshall be charged to the profit or loss for the period. The identifiable assets, liabilities and contingentliabilities of the merged party obtained in business combination that meet the recognition conditions aremeasured at their fair values on the purchase date.The fees which are directly related to the business combination shall be recognized as the profit or lossin the period when the costs are incurred; the transaction expenses of issuing equity securities or debtsecurities for business merger shall be initially capitalized for equity securities or debt securities.
6. Preparation method of consolidated financial statements
√Applicable □Non-applicable
(1). Scope of Consolidation
The scope of consolidation of the consolidated financial statements is based on controlling interestsand includes the Company and all the subsidiaries. Control means that the Company has the rights
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
over the investee, enjoys variable returns through participating in relevant activities of the investee,and has the ability to influence the amount of returns by exercising its rights over the investee.
(2). Procedures of Consolidation
The Company regards the Enterprise Group as an accounting entity and prepares consolidatedfinancial statements in accordance with unified accounting policies to reflect the overall financialposition, operating result and cash flow of the Enterprise Group. The influence of internaltransactions between the Company and the Subsidiaries and between the Subsidiaries shall be offset.Where internal transaction indicates the occurrence of impairment loss to relevant assets, such lossshall be recognized in full. In preparing the consolidated financial statements, where the accountingpolicies and the accounting periods are inconsistent between the Company and subsidiaries, thefinancial statements of subsidiaries are adjusted where necessary in accordance with the accountingpolicies and accounting period of the Company.The owner's equity, the net profit or loss and the comprehensive income attributable to minorityshareholders of a subsidiary of the current period are presented separately under the owners' equity inthe consolidated balance sheet, the net profit and the total comprehensive income in the consolidatedincome statement respectively. Where losses attributable to the minority shareholders of a subsidiaryof the current period exceed the minority shareholders' interest entitled in the shareholders' equity ofthe subsidiary at the beginning of the period, the excess is allocated against the minority shareholdersinterest.
(1) Acquisition of subsidiaries or Business
For acquisition of subsidiaries or business due to business combination involving entities undercommon control during the reporting period, the operating results and cash flows of such subsidiariesor business from the beginning to the end of the reporting period when the acquisition occurs shall beincluded in the consolidated financial statements. Adjustments shall be made to the opening balanceof the consolidated financial statements and the related items in the comparative statementssimultaneously as if the consolidated reporting entity has been in existence since the beginning of thecontrol by the ultimate controlling party.Where the control over the investee under common control is made possible due to additionalinvestment or other reasons, the equity investment held before gaining control of the combined partyis recognized as relevant profit or loss, other comprehensive income and changes of other net assetsat the later of the date of acquisition of the original equity and the date when the combining and thecombined parties are under common control, and shall be written down to the opening retainedearnings or current profit or loss in the comparative reporting period.For acquisition of subsidiaries or business due to business combination involving entities notunder common control during the reporting period, the identifiable assets, liabilities and contingentliabilities shall be included in the consolidated financial statements based on the fair valuedetermined on the date of the acquisition.In connection with imposing control over the investee not under joint control due to additionalinvestment and other reasons, the equity of acquiree held before acquisition date shall be remeasuredby the Company at the fair value of such equity on the acquisition date and the difference betweenfair value and book value shall be recognized as investment income in current period. Othercomprehensive income related to the equity held by the Acquiree before the acquisition date which
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
can be reclassified into future profit or loss, and other changes of owners’ equity accounted for underequity
(2) Disposal of Subsidiaries or Business
General TreatmentWhen losing control of the investee due to partial disposal of the equity investment, or any otherreasons, the remaining equity investment is remeasured at fair value at the date in which control is lost.The sum of consideration received from disposal of equity investment and the fair value of theremaining equity investment, net of the difference between the sum of the Company's previous share ofthe subsidiary's net assets recorded from the acquisition date or combination date and the sum ofgoodwill, is recognized in investment income in the period in which control is lost. Other comprehensiveincome related to the equity investment of the original subsidiary that can be reclassified into futureprofit or loss, and other changes of owners’ equity accounted for under equity method shall berecognized in investment income in the period in which control is lost.Disposal of Subsidiary Achieved by StagesWhen disposal of equity interests of subsidiaries through multiple transaction until the control is lost,generally transactions in stages are treatment as a package deal in accounting if the transaction terms,conditions, and economic impact of disposal of the subsidiary's equity interests comply with one or moreof the following:
i. These transactions are achieved at the same time or the mutual effects on each other areconsidered;
ii. A complete set of commercial results can be achieved with reference to the series oftransactions as a whole;
iii. Achieving a transaction depends on at least achieving of one of the other transaction;
iv. One transaction recognized separately is not economical, but it is economical when consideredtogether with other transactions.
When losing control of a subsidiary in disposal of equity interests through multiple transactions isrecognized as a package deal, these transactions shall be in accounting treated as loss control of asubsidiary in disposal of equity interests achieved. However, the differences between price on eachdisposal and disposal of investment on the subsidiary's net assets shall be recognized in othercomprehensive income in the consolidated financial statements, and included in profit or loss for theperiod when the control is lost.When all transactions in disposal of equity interests of subsidiaries are not a package deal, accountingtreatment for partial disposal of equity investments of subsidiary without losing control shall be appliedbefore control is lost. When the control is lost, general accounting treatment for disposal of a subsidiaryshall be used.
(3) Acquisition of Minority Interest of Subsidiaries
The Company shall adjust the share premium in the capital reserve of the consolidated balance sheetwith respect to any difference between the long-term equity investment arising from the purchase ofminority interest and the net assets attributing to the parent company continuously calculated on thebasis of the newly increased share proportion as of the acquisition date or date of combination, adjust theretained earnings if the share premium in the capital reserve is insufficient for write-down.
(4) Partial Disposal of Equity Investment in Subsidiaries without Losing ControlDisposal price and disposal of long-term equity investment shall be entitled to the differencebetween the shares of the net assets of the subsidiaries calculated continuously from the date of purchaseor acquisition. Adjustments shall be made to the equity premiums in the capital reserve of consolidatedbalance sheet. When the equity premiums in the capital reserve are not sufficient for write-down, theretained earnings shall be adjusted.
7. Classification of Joint Arrangement and Accounting Treatment Methods of Joint Operation
√Applicable □Non-applicable
Joint arrangement can be divided into joint operation and joint venture.Joint operation refers to a joint arrangement in which the parties have rights to the assets andobligations for the liabilities relating to the joint operation.
The Company recognizes the following items related to the share of interests in the joint operation:
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
(1) Recognize the assets held separately by the Company and the assets jointly held inaccordance with the share of the Company;
(2) Recognize the liabilities assumed separately by the Company and the liabilities jointlyassumed in accordance with the share of the Company;
(3) Recognize the income generated through the sale of the Company's share of the output ofthe joint operation;
(4) Recognize the income generated through the sale of the output of the joint operation inaccordance with the share of the Company；
(5) Recognize the expenses incurred separately, and the expenses incurred in joint operation inaccordance with the share of the Company .The Company's investment in joint venture is accounted for by the equity method, as specified in thenote “V. 21. Long-term Equity Investment”.
8. Recognition criteria of cash and cash equivalents
Cash equivalents refer to investments held by the Company featuring short duration (it generally refersto the maturity within three months from the purchase date), strong liquidity, easy conversion into cashof known amount and low risk of changes in value.
9. Conversion of transactions and financial statements denominated in foreign currencies
√Applicable □Non-applicable
(1) Foreign currency transactions
Foreign currency transactions shall be translated into RMB at the spot exchange rate on the daywhen the transactions occurred, or at an exchange rate fixed in accordance with a systematic andreasonable method that is similar to the spot exchange rate on the day when the transactions occurred.Balance sheet date foreign currency monetary items shall be translated using the spot exchange rateat the balance sheet date. The resulting exchange differences are recognized in profit or loss for thecurrent period, except for those differences related to the principal and interest on a specific-purposeborrowing denominated in foreign currency for acquisitions, construction or production of the qualifiedassets, which should be capitalized as cost of the assets.
2. Translation of foreign currency financial statements
All assets and liabilities items in balance sheet are translated based on spot exchange rate on thebalance sheet date; owners' equity items other than "undistributed profits" are translated at a spotexchange rate when accrued. Revenue and expense items as contained in the income statement aretranslated at a spot exchange rate at the transaction occurrence date. For disposal of overseas operation,the translation difference as stated in the foreign currency financial statements relating to overseasoperation, is accounted for in the profit and loss account in the current period from owners' equityitems.
10. Financial instruments
√Applicable □Non-applicable
The Company recognizes a financial asset, financial liability or equity instrument when it becomesa party to a financial instrument contract.
1. Classification of the financial instruments
According to the Company's business model for management of the financial assets and the contractualcash flow features of the financial assets, the financial assets, when initially recognized, are classified as:
financial assets at amortized cost, financial assets at fair value through other comprehensive income andfinancial assets at fair value through profit or loss.
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
For financial assets that meet the following conditions and are not designated to be measured at fairvalue through the current profit or loss, the Company classifies them as financial assets at amortizedcost:
— The business model is aimed at collecting contract cash flow;— Contract cash flow is the payment of principal and interest based on the outstanding principalamount.For financial assets that meet the following conditions and are not designated to be measured atfair value through current profit or loss, the Company classifies them as financial assets at fair valuethrough other comprehensive income (debt instruments).
— The business model is aimed at both collecting contract cash flows and selling financial asset;— Contract cash flow is the payment of principal and interest based on the outstanding principalamount.The Company will, at the time of initial recognition, irrevocably designate non-trading investments inequity instruments as financial assets measured at fair value and the change shall be included in othercomprehensive income (equity instrument). The designation is made on the basis of independentinvestment, and the related investments fit the definition of an equity instrument from an issuer’sperspective.In addition to the aforementioned financial assets at amortized cost and at fair value through othercomprehensive income, the Company classifies all other financial assets as financial assets at fair valuethrough current profit or loss. At the time of initial recognition, for financial assets that should havebeen classified as financial assets at amortized cost or fair value through other comprehensive income,the Company can irrevocably designate them as financial assets at fair value through current profit orloss in order to eliminate or significantly reduce the accounting mismatch.The financial liabilities, when initially recognized, are classified as: financial liabilities at fair valuethrough profit or loss and financial liabilities at amortized cost.Financial liabilities which meet one of the following conditions will be, when initially measured,designated as financial liabilities at fair value through profit or loss:
1) Such designation may be able to eliminate or significantly reduce the accounting mismatch.
2) The portfolio of financial liabilities or the portfolio of financial assets and financial liabilitiesshall be subject to management and performance evaluation on the basis of fair value according to theenterprise risk management or investment strategy contained in the formal documentations, and areport shall be made to the key management personnel within the enterprise on this basis.
3) Such financial liabilities shall contain embedded derivatives to be split separately.
2. Recognition and measurement of financial instruments
(1) Financial assets at amortized cost
Financial assets at amortized cost include notes receivable, accounts receivable, other receivables,long-term receivables and creditors investment, which shall be initially measured at fair value, and therelevant transaction expenses should be initially capitalized; The accounts receivable that do notcontain material financing compositions and those for which the Company decides to not take intoaccount the financing compositions of no more than one year shall be initially measured at the contracttransaction price.
The interest calculated by effective interest method during the holding period is recorded into thecurrent profit and loss.
At the time of recovery or disposal, the difference between the price obtained and the book value
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
shall be included in the current profit or loss.
(2) Financial assets measured at fair value and its changes are included in other comprehensiveincome (debt instruments)
Financial assets measured at fair value and its changes are included in other comprehensiveincome (debt instruments) include receivables financing and investments in other creditor's rights.They are initially measured at fair value, and the value, other than the interest, the impairment loss orprofit and the profit or loss on foreign exchange, shall be included in other comprehensive income.Upon derecognition, the cumulative profits or losses previously included in other comprehensiveincome shall be removed from other comprehensive income and included in the profit or loss for theperiod.
(3) Financial assets at fair value through other comprehensive income (equity instruments)Financial assets at fair value through other comprehensive income (equity instruments) includeinvestment in other equity instruments. They are initially measured at fair value, and the transactionexpenses shall be initially capitalized. These financial assets are subsequently measured at fair value,and the change in fair value shall be included in other comprehensive income. The dividends obtainedshall be included in the profit or loss for the period.
Upon derecognition, the cumulative profits or losses previously included in other comprehensiveincome shall be removed from other comprehensive income and included in the carry-forward retainedearnings.
(4) Financial assets at fair value through profit or loss in this period
Financial assets at fair value through profit or loss include trading financial assets, derivativefinancial assets and other non-current financial assets. They are initially measured at fair value, and thetransaction expenses related to them are included in the profit or loss for the period. These financialassets are subsequently measured at fair value, and the change in fair value shall be included in theprofit or loss for the period.
(5) Financial Liabilities Measured in Fair Value with Changes Recorded into Current Profit andLossFinancial liabilities at fair value through profit or loss include trading financial liabilities and derivativefinancial liabilities. They are initially measured at fair value, and the transaction expenses related tothem are included in the profit or loss for the period. These financial liabilities are subsequentlymeasured at fair value, and the change in fair value shall be included in the profit or loss for the period.Upon derecognition, the difference between their book value and the consideration paid is included inthe profit or loss for the period.
(6) Financial liabilities at amortized cost
Financial liabilities at amortized cost include short-term loans, notes payable, accounts payable, otherpayables, long-term loans, bonds payable, and long-term payables. They are initially measured at fairvalue, and the transaction expenses shall be initially capitalized.The interest calculated by effective interest method during the holding period is recorded into the currentprofit and loss.Upon derecognition the difference between the consideration paid and the book value of these financialliabilities is included in the current profit or loss.
3. Derecognition and transfer of financial assets
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
The Company derecognizes financial assets when any one of the following conditions is satisfied:
- The contractual right to receive cash flows of the financial assets has been terminated;- The financial asset have been transferred and virtually all the risks and rewards related to theownership of the financial asset shave been transferred to the transferee;- The financial assets have been transferred, and while the Company has neither transferred norretained virtually all of the risks and rewards related to the ownership of the financial assets, ithas not retained control of the financial assets.The financial assets have been transferred, and while the Company has neither transferred norretained virtually all of the risks and rewards related to the ownership of the financial assets, it has notretained control of the financial assets.The substance-over-form principle shall be adopted while making judgment on whether the transfer offinancial assets satisfies the above conditions for termination of recognition.The transfer of financial assets can be classified into entire transfer and partial transfer. If the transfer ofan entire financial asset satisfies the conditions for termination of recognition, the difference between thetwo amounts below shall be recorded into profit or loss for the period:
(1) The book value of the financial asset transferred;
(2) The consideration received as a result of the transfer, plus the accumulative amount of the changein fair value previously recorded into the owners' equities (in cases where the transferred financial assetsare financial assets at fair value through other comprehensive income (debt instruments)).If the partial transfer of financial assets satisfies the conditions for termination of recognition, theoverall book value of the transferred financial asset shall be apportioned according to their respectiverelative fair value between the recognition terminated part and the remaining part, and the differencebetween the two amounts below shall be recorded into profit or loss for the current period:
(1) The book value of the recognition terminated portion;
(2) The sum of consideration of the recognition terminated portion and the corresponding portion ofaccumulated change in fair value previously recorded into owners' equity (in cases where the transferredfinancial assets are financial assets at fair value through other comprehensive income (debtinstruments)).Financial assets will still be recognized if they fail to satisfy the conditions for termination of recognition,with the consideration received recognized as a financial liability.
4. Recognition for termination of financial liabilities
When the current obligation under a financial liability is completely or partially discharged, therecognition of the whole or relevant portion of the liability is terminated; an agreement is enteredbetween the Company and a creditor to replace the original financial liabilities with new financialliabilities with substantially different terms, terminate the recognition of the original financial liabilitiesas well as recognize the new financial liabilities.If all or part of the contract terms of the original financial liabilities are substantially amended, therecognition of the original financial liabilities will be terminated in full or in part, and the financialliabilities whose terms have been amended shall be recognized as a new financial liability.When recognition of financial liabilities is terminated in full or in part, the difference between the bookvalue of the financial liabilities terminated and the consideration paid (including transferred non-cashassets or new financial liability) is recognized in profit or loss for the current period.Where the Company repurchases part of its financial liabilities, the book value of such financialliabilities will be allocated according to the relative fair value between the continued recognized partand terminated part on the repurchase date. The difference between the book value of the financialliabilities terminated and the consideration paid (including transferred non-cash assets or new financialliability) is recognized in profit or loss for the current period.
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
5. Method of determining the fair values of financial assets and liabilities
The fair value of a financial instrument that is traded in an active market is determined at the quotedprice in the active market. The fair value of a financial instrument that is not traded in an active marketis determined by using a valuation technique. The Company uses the valuation technique when it isapplicable under current conditions and there are enough available data and other information to supportand the technique should maximize the use of relevant observable. It chooses the inputs which areconsistent with the asset or liability's characteristics considered by market participants in the transactionof the relevant asset or liability and makes the maximum use of relevant observable inputs.Unobservable inputs are used under the circumstance that the relevant observable inputs cannot beobtained or not feasible.
6. Test method and accounting treatment for impairment of financial assets
The Company estimates the expected credit loss on the financial assets at amortized cost and thefinancial assets at fair value through other comprehensive income (debt instruments), and financialguarantee contracts, either alone or in combination.The Company calculates the probability-weighted amount of the current value of the difference betweenthe cash flows receivable under the Contract and the cash flows expected to receive, and recognizes theexpected credit loss, by taking into account all the reasonable and well-founded information, includingpast events, current condition and forward-looking economic situation, and weighting the risk ofdefault.If the credit risk of this financial instrument has been significantly increased upon initial recognition, theCompany measures its loss provision in accordance with the amount equivalent to the expected creditloss of the financial instrument throughout the duration; if the credit risk of this financial instrument isnot significantly increased upon initial recognition, the Company will measure the loss provision of thisfinancial instrument by the amount of its expected credit loss in the twelve months to come. Theincreased or reversed amount of the loss provision resulting therefrom is included in the current profit orloss as the impairment loss or profit.The Company recognizes the relative changes in the risk of default within the expected duration offinancial instruments, and assesses whether the credit risk of financial instruments has significantlyincreased since the initial recognition by comparing the risk of default of financial instruments on thebalance sheet date with the risk of default on the initial recognition date. If the financial instrumentbecomes overdue for more than 30 days, the Company believes that the credit risk of this financialinstrument has been significantly increased, unless there are concrete evidences that the credit risk ofthis financial instrument has not been significantly increased upon initial recognition.If the financial instrument carries low credit risk at the balance sheet date, the Company believes thatthe credit risk of this financial instrument is not significantly increased upon initial recognition.If there are objective evidences showing that a certain financial asset has been subject to creditimpairment, the Company will accrue impairment provision for this financial asset on the individualasset basis.The Company will always measure the loss provision for the accounts receivable and contract assetsgenerated by transactions regulated by “Accounting Standards for Enterprises No. 14 – Revenue”(2017), whether they contain material financing compositions or not, by the amount of the expectedcredit loss throughout the duration.
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
The Company will always measure the loss provision for the lease receivable by the amount of theexpected credit loss throughout the duration.The Company shall write down the book balance of a financial asset directly if it no longer reasonablyexpects that the contract cash flow of the financial asset can be recovered in whole or in part.
11. Notes receivable
Determination method and accounting treatment method of expected credit loss of notesreceivable
□Applicable √Non-applicable
12. Accounts receivable
Determination method and accounting treatment method of expected credit loss of accountsreceivable
□Applicable √Non-applicable
13. Receivables financing
□Applicable √Non-applicable
14. Other accounts receivable
Determination method and accounting treatment method of expected credit loss of other accountsreceivable
□Applicable √Non-applicable
15. Inventories
√Applicable □Non-applicable
1. Category and cost of inventories
Inventories are classified as raw materials, turnover materials, commodity stocks, products inprogress and materials commissioned for processing.Inventories are initially measured at cost. Inventory costs include procurement costs, processingcosts, and other expenses incurred to bring the inventory to its current location and condition.
2. Determination of cost for delivered inventory
Cost of inventories is determined using the weighted average method.
3. Basis for the determination of net realizable value and different type of inventories
On the balance sheet date, inventories shall be measured at the lower of cost and net realizablevalue. A provision shall be made for inventory price drops if inventory costs exceed the net realizablevalue. Net realizable value refers to the amount after deducting the estimated costs to be incurred at thetime of completion, the estimated selling expenses and taxes from the estimated sales price ofinventories during daily activities.
Net realizable value of held-for-sale commodity stocks, such as finished goods, goods-in-stock, andheld-for-sale raw materials, during the normal course of production and operation, shall be determinedby their estimated sales less the related selling expenses and taxes; the net realizable value of materialinventories, which need to be processed, during the normal course of production and operation, shall bedetermined by the amount after deducting the estimated cost of completion, estimated selling expensesand relevant taxes from the estimated selling price of finished goods; the net realizable value ofinventories held for execution of sales contracts or labor contracts shall be calculated on the ground ofthe contracted price. If an enterprise holds more inventories than the quantity stipulated in the salescontract, the net realizable value of the exceeding part shall be calculated on the ground of generalselling price.
The inventory falling price reserves withdrawn shall be reversed within the amount withdrawn, andthe reversed amount shall be included in current profit or loss, if the net realizable value of an inventoryis higher than its book value after the withdrawal due to the disappearance of the factors that influencethe writing-down of its value.
4. Inventory system
The perpetual inventory system is adopted.
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
5. Amortization of low-value consumables and packaging materials
Low-value consumables are amortized using the immediate write-off method;Packaging materials are amortized using the immediate write-off method.
16. Contract Assets
(1). Recognition methods and standards of contract assets
√Applicable □Non-applicable
Accounting policies adopted from January 1, 2020The Company shall show the contract assets or contract liabilities in the balance sheet inaccordance with the relationship between the performance of the contract obligations and the Customerpayment. The Company shall list its right to receive consideration due to the transfer of goods orservices to the Customer (and such rights are subject to factors other than the passage of time) ascontractual assets. Contract assets and contract liabilities under the same contract shall be shown on anet basis. The Company’s unconditional right (depending solely on the passage of time) to collectconsideration from the Customer shall be shown separately as a receivable.
(2). Determination method and accounting treatment for the expected credit loss of contractassets
√Applicable □Non-applicable
Accounting policies adopted from January 1, 2020See “10. 6. Testing methods and accounting treatment methods for impairment of financial assets”for specified determination method and accounting treatment for the expected credit loss ofcontract assets.
17. Held-for-sale assets
□Applicable √Non-applicable
18. Debt investment
(1). Determination method and accounting treatment method of expected credit loss of debtinvestment
□Applicable √Non-applicable
19. Other debt investment
(1). Determination methods and accounting treatment methods of expected credit losses of otherdebt investments
□Applicable √Non-applicable
20. Long-term receivables
(1) Determination method and accounting treatment method of long-term expected credit loss of
receivables
□Applicable √Non-applicable
21. Long-term Equity Investment
√Applicable □Non-applicable
1. Joint control or significant influence criterion
Joint control is the contractually agreed sharing of control of an arrangement, and exists only whenrequiring the unanimous consent of the parties sharing control before making decisions about therelevant activities of the arrangement. The Company together with the other joint venture parties canjointly control over the investee and are entitled to the right of the net assets of the investee, as theinvestee is joint venture of the Company.
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
Significant influence refers to the power to participate in making decisions on the financial andoperating policies of an enterprise, but not the power to control, or jointly control, the formulation ofsuch policies with other parties. Where the Company can exercise significant influence over theinvestee, the investee is an associate of the Company.
2. Determination of initial investment cost
(1) Long-term equity investments formed through business combination of entitiesFor long-term equity investment in a subsidiary generated due to business combinations involvingentities under common control, the share of the book value in the consolidated financial statements ofthe ultimate controlling party on the date of combinations shall be taken as the initial investment cost ofthe long-term equity investments. For difference between the initial cost of long-term equity investmentand the book value of the consideration paid, adjustments shall be made to the equity premiums in thecapital reserve. When the equity premiums in the capital reserve are not sufficient for write-down, theretained earnings shall be adjusted. Where control over the investee under common control is availabledue to additional investment or other reasons, for difference between the initial cost of long-term equityinvestment recognized in accordance with the above principles, and the sum of the book value oflong-term equity investment prior to the combination and the book value of newly paid consideration forthe acquisition of further shares on the date of combination, adjustments shall be made to equitypremiums. When the equity premiums are not sufficient for write-down, the retained earnings shall bewritten down.For long-term equity investment in a subsidiary generated due to business combinations involvingentities not under common control, the cost of the combination recognized on the date of combinationshall be taken as the initial investment cost of the long-term equity investments. In relation to imposingcontrol over the investee not under common control as a result of additional investment and otherreasons, the initial investment shall be the sum of the book value of the equity investment originally heldand the newly increased investment cost.
(2) Long-term equity investments acquired by means other than business combinationThe initial cost of a long-term equity investment obtained by cash payment shall be the purchasecosts actually paid.
The initial cost of investment of a long-term equity investment obtained by means of issuance ofequity securities shall be the fair value of the equity securities issued.
3. Subsequent measurement and recognition of profit or loss
(1) Long-term equity investment calculated by cost method
Long-term equity investment in subsidiaries of the company is calculated by cost method, unlessthe investment meets the conditions for holding for sale. except for the actual consideration paid for theacquisition of investment or the declared but not yet distributed cash dividends or profits which areincluded in the consideration, investment gains are recognized as the Company' shares of the cashdividends or profits declared by the investee.
(2) Long-term equity investment accounted for by equity method
Long-term equity investments of associates and jointly controlled entities are calculated usingequity method. Where the initial investment cost exceeds the investment, the difference between theshare of the fair value of the investee’s identifiable net assets shall be enjoyed and no adjustment shall bemade to the initial investment cost of long-term equity investment; where the initial investment cost isless than the investment, the difference between the share of the fair value of the investee’s identifiablenet assets shall be enjoyed and be included in current profit or loss, and adjustments shall be made to theinitial investment cost of long-term equity investment.
The Company recognizes the investment income and other comprehensive income according to theshares of net profit or loss and other comprehensive income realized by the investee which it shall beentitled or shared respectively, and simultaneously makes adjustment to the book value of long-termequity investments; the book value of long-term equity investment shall be reduced by attributable shareof the profit or cash dividends for distribution declared by the investee; in relation to other changes ofowner's equity except for net profits and losses, other comprehensive income and profit distributions ofthe investee (hereinafter referred to as "changes in other owners' equity"), the book value of long-termequity investments shall be adjusted and included in owner's equity.
When recognizing the amount of proportion of net profit or loss, other comprehensive income andother changes of owner’s equity, in the investee which it entitles, fair value of the identifiable assets of
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
the investee at the time when the investment is obtained shall be used as basis, and adjustment shall bemade to the net profit, other comprehensive income and others of the investee in accordance with theaccounting policies and accounting period of the Company.The unrealized profit or loss resulting from internal transactions between the Company and itsassociate or joint venture shall be offset in portion to its equity interests, based on which investmentincome shall be recognized, except when the assets invested or sold constitute transaction. Any lossesresulting from transactions, which are attributable to impairment of assets, shall be fully recognized.The Company shall be liable for net loss incurred by the Company to the joint venture or associate,and shall write it down to zero with the book value of the long-term equity investment and otherlong-term equity which substantially constitute net investment in the joint venture or associate. Where ajoint venture or associate later realizes net profits, the Company shall resume recognition of its share ofincome after the share of income has made up for the unrecognized share of loss.
(3) Disposal of long-term equity investments
For disposal of long-term equity investment, the difference between the book value and theconsideration actually received shall be included in the current profit or loss.For long-term equity investments accounted by partial equity disposal method, the remaining equityis still accounted by the equity method. Other comprehensive income recognized by the original equitymethod shall be carried forward in a corresponding proportion on the same basis as the direct disposal ofrelated assets or liabilities by the investee. Changes in the interests of the owners are carried forward tothe current profit and loss on a pro ratio basis.When losing joint control or significant influence over the investee due to disposal of equityinvestment or other reasons, other comprehensive income of the original equity investment recognizedaccounted by equity method shall be treated using the same basis as the direct disposal of related assetsor liabilities by the investee upon the termination of the use of equity methods. Other changes of owner’sequity shall be converted to the current profit or loss upon the termination of use of equity methods.When losing the control over the investee due to partially disposal of equity investment and otherreasons, the remaining equities after disposal shall be accounted for under equity method in preparationof individual financial statements provided that joint control or significant influence over the investeecan be imposed, and shall be adjusted as if such remaining equities has been accounted for under theequity method since they are obtained. Other comprehensive income recognized prior to the acquisitionof controls over the investee shall be carried over proportionally using the same basis as the directdisposal of related assets or liabilities by the investee. Other changes of owner’s equity due to the use ofequity method shall be carried over into the current profit or loss proportionally. Where the remainingequities after disposal cannot impose joint control or significant influence over the investee, it shall berecognized as financial asset, and the difference between fair value and the book value on the date oflosing control shall be included in the current profit or loss. All the other comprehensive incomes andother changes of owners’ equity recognized prior to the acquisition of controls over the investee shall becarried over.
When losing control over a subsidiary in step-by-step disposal of its equity interests throughmultiple transactions is recognized as a package deals, these transactions shall be in accounting treatedas loss of control of a subsidiary in disposal of equity interests. The differences between price on eachdisposal prior to loss of control and the long-term equity investment book value of the disposed equityshall be recognized as other comprehensive income in individual financial statements, and included inthe current profit or loss when the control is lost. Transactions not recognized as a package deal shall beaccounted for separately.
22. Investment property
(1). In case of cost measurement:
Depreciation or amortization method
Investment property refers to the real estate held to generate rental income or capital appreciation,or both, including leased land use rights, land use rights held for transfer after appreciation, and leasedbuildings (including buildings that are leased after completion of self-construction or developmentactivities and buildings in construction or development that are used for rental in the future).
Subsequent expenditures related to fixed assets shall be included in the cost of fixed assets whenthe relevant economic benefits are likely to flow in and the cost can be measured reliably; otherwise, itshall be included in the current profit and loss when occurred.
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
The Company adopts the cost mode to measure the existing investment property. Other subsequentexpenditures shall be included in current profit or loss at the time of occurrence. Investment propertymeasured at cost - buildings held for leasing shall adopt the same depreciation policy for fixed assets ofthe company, land use rights held for leasing shall adopt the same amortization policy for the intangibleassets.
23. Fixed Assets
(1). Conditions for recognition of fixed assets
√Applicable □Non-applicable
Fixed assets are tangible assets that are held for use in the production or supply of goods or services,for rental to others, or for administrative purposes; and have a service life of more than one accountingyear. Fixed asset is recognized when it meets the following conditions:
(1) It is probable that the economic benefits associated with the fixed asset will flow to theenterprise;
(2) Its cost can be reliably measured.
Fixed assets are initially measured at cost (with the influence of expected disposal costs taken intoconsideration).Subsequent expenditures related to fixed assets shall be included in the cost of fixed assets whenthe relevant economic benefits are likely to flow in and the cost can be measured reliably; the book valueof the replaced part is derecognized; other subsequent expenditures shall be included in current profit orloss at the time of occurrence.
(2). Methods for depreciation
√Applicable □Non-applicable
| Category | Depreciation Method | Useful Lives of Depreciation | Residual Ratio | Annual Depreciation |
| Housing and building | Straight-line method | 20 | 10% | 4.50% |
| Machinery and equipment | Straight-line method | 5-10 | 10% | 18.00%-9.00% |
| Means of transportation | Straight-line method | 5 | 10% | 18.00% |
| Office equipment and others | Straight-line method | 5 | 10% | 18.00% |
| Buildings for commercial use | Straight-line method | Land use certificate indicates the remaining years but no longer than 40 years | 10% |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
1. Criteria for recognition of capitalized borrowing costs
For borrowing costs incurred by the Company that are directly attributable to the acquisition,construction or production of assets qualified for capitalization, the costs will be capitalized andincluded in the costs of the related assets. Other borrowing costs shall be recognized as expense in theperiod in which they are incurred and included in profit or loss for the current period.
Assets qualified for capitalization are assets (fixed assets, investment property, inventories, etc.)that necessarily take a substantial period of time for acquisition, construction or production to get readyfor their intended use or sale.
2. Capitalization period of borrowing costs
The capitalization period shall refer to the period between the commencement and the cessation ofcapitalization of borrowing costs, excluding the period in which capitalization of borrowing costs istemporarily suspended.
Capitalization of borrowing costs begins when the following three conditions are fully satisfied:
(1) Expenditures for the assets (including cash paid, transferred non-currency assets or expenditurefor holding debt liability for the acquisition, construction or production of assets qualified forcapitalization) have been incurred;（(2) Borrowing costs have been incurred;
(3) Acquisition, construction or production that are necessary to enable the asset reach its intendedusable or salable condition have commenced.
Capitalization of borrowing costs shall be suspended during periods in which the qualifying assetunder acquisition and construction or production ready for the intended use or sale.
3. Suspension of capitalization period
Capitalization of borrowing costs shall be suspended during periods in which the acquisition,construction or production of a qualifying asset is interrupted abnormally, when the interruption is for acontinuous period of more than 3 months; if the interruption is a necessary step for making thequalifying asset under acquisition and construction or production ready for the intended use or sale, thecapitalization of the borrowing costs shall continue. The borrowing costs incurred during such periodshall be recognized as profits and losses of the current period. When the acquisition and construction orproduction of the asset resumes, the capitalization of borrowing costs commences.
4. Calculation of capitalization rate and amount of borrowing costs
Specific borrowings for the acquisition, construction or production of assets qualified forcapitalization, borrowing costs of the specific borrowings actually incurred in the current period minusthe interest income earned on the unused borrowing loans as a deposit in the bank or as investmentincome earned from temporary investment will be used to determine the amount of borrowing costs forcapitalization.
General borrowings for the acquisition, construction or production of assets qualified forcapitalization, the to-be-capitalized amount of interests on the general borrowing shall be calculated anddetermined by multiplying the weighted average asset disbursement of the part of the accumulative assetdisbursements minus the specifically borrowed loans by the capitalization rate of the general borrowingused. The capitalization rate shall be calculated and determined according to the weighted averageinterest rate of the general borrowing.
During the period of capitalization, the exchange balance on the principals and interests of specialforeign currency borrowings shall be capitalized and shall be included in the cost of assets eligible forcapitalization. The exchange balance on the principals and interests of foreign currency borrowings otherthan the special foreign currency borrowings shall be included in current profit or loss.
26. Biological Assets
□Applicable √Non-applicable
27. Oil and Gas Assets
□Applicable √Non-applicable
28. Right-of-use assets
□Applicable √Non-applicable
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
29. Intangible Assets
(1). Valuation method, useful life, impairment test
√Applicable □Non-applicable
1. Intangible assets are initially measured at cost upon acquisition
(1) Intangible assets are initially measured at cost upon acquisition
The costs of an externally purchased intangible asset include the purchase price, relevant taxes andexpenses paid, and other expenditures directly attributable to putting the asset into condition for itsintended use.
(2) Subsequent measurement
The service life of intangible assets shall be analyzed and judged upon acquisition.
As for intangible assets with a finite service life, they are amortized using the straight-line methodover the term in which economic benefits are brought to the firm; If the term in which economic benefitsare brought to the firm by an intangible asset cannot be estimated, the intangible asset shall be taken asan intangible asset with indefinite service life, and shall not be amortized.
2. Estimated useful lives for the intangible assets with finite service life
| Item | Estimated useful lives | Amortization Method | Basis |
| Land use rights | 38-50 years | Straight-line method | Land use certificate |
| Software | 2-10 years | Straight-line method | Expected benefited period |
| Emission rights | 5 years | Straight-line method | Emission permits |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
30. Impairment of long-term assets
√Applicable □Non-applicable
Long-term assets, such as long-term equity investment, investment properties, fixed assets andconstruction in progress that measured at cost, and intangible assets and oil and gas assets with limitedservice life, are tested for impairment if there is any indication that an asset may be impaired on thebalance sheet date. If the result of the impairment test indicates that the recoverable amount of the assetis less than its book value, a provision for impairment and an impairment loss are recognized for theamount by which the asset's book value exceeds its recoverable amount. The recoverable amount is thehigher of an asset's fair value less costs to sell and the present value of the future cash flows expected tobe derived from the asset. Provision for asset impairment is determined and recognized on the individualasset basis. If it is not possible to estimate the recoverable amount of an individual asset, the recoverableamount of a group of assets to which the asset belongs to is determined. A group of assets is the smallestgroup of assets that is able to generate cash inflows independently.Goodwill formed due to business combination, intangible assets with uncertain service life andintangible assets that have not yet reached serviceable conditions, shall be tested for impairment at leastat the end of each year, regardless of whether there is any indication of impairment.When the Company carry out impairment test to goodwill, the Company shall, as of the purchasingday, allocate on a reasonable basis the book value of the goodwill formed by merger of enterprises to therelevant asset groups, or if there is a difficulty in allocation, to allocate it to the sets of asset groups. Therelevant asset group or combination of asset groups is the asset group or combination of asset groupsthat can benefit from the synergies of business combination.For the purpose of impairment test on the relevant asset groups or the sets of asset groupscontaining goodwill, if any evidence shows that the impairment of asset groups or sets of asset groupsrelated to goodwill is possible, an impairment test will be made first on the asset groups or sets of assetgroups not containing goodwill, thus calculating the recoverable amount and comparing it with therelevant book value so as to recognize the corresponding impairment loss. Asset group or combinationof group assets containing goodwill are tested for impairment and the book value and recoverableamount shall be compared. If the recoverable amount is less than the book value, the amount ofimpairment loss shall be deducted and apportioned to the book value of goodwill in asset group orcombination of asset groups, before deducting to the book value of all other assets proportionally basedon the proportion of the book value of all assets other than goodwill in the asset group or combination ofasset groups. Once the above asset impairment loss is recognized, it will not be reversed in thesubsequent accounting periods.
31. Long-term prepaid expenses
√Applicable □Non-applicable
Long-term prepaid expenses are expenses which have occurred but will benefit over 1 year andshall be amortized over the current period and subsequent periods.
| Item | Expected useful live | Basis |
| Renovation cost | 5 years | Expected benefited period |
| Software maintenance fee | 5 years | Expected benefited period |
| Others | 3-5 years | Expected benefited period |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
consideration has been received or receivable are presented as contractual liabilities. Contract assets andcontract liabilities under the same contract shall be shown on a net basis.
33. Employee remuneration
(1). Accountant arrangement method of short-term remuneration
√Applicable □Non-applicable
During the accounting period when the staff provides service, the Company will recognize theshort-term remuneration actually incurred as liabilities, and the liabilities would be charged into currentprofits and loss or costs of assets.The Company will pay social insurance and housing funds, and will make provision of trade unionfunds and staff education costs in accordance with the requirements. During the accounting period whenthe staff provides service, the Company will determine the relevant amount of employee benefits inaccordance with the required provision basis and provision ratios.
The expenses on employee benefit incurred by the Company shall be included in the current profitor loss or related asset cost based on the actual amount when actually incurred, and the non-monetarybenefit shall be measured at its fair value.
(2).Accounting treatment method of retirement benefit plan
√Applicable □Non-applicable
(1) Defined contribution plan
The Company will pay basic pension insurance and unemployment insurance in accordance withthe relevant provisions of the local government for the staff. During the accounting period when the staffprovides service, the Company will calculate the amount payable in accordance with the local stipulatedbasis and proportions which will be recognized as liabilities, and the liabilities would be charged intocurrent profits and loss or costs of assets.
(2) Defined benefit plan
The welfare responsibilities generated from defined benefit scheme based on the formuladetermined by projected unit credit method would be vested to the service period of the staff andcharged into current profits and loss or costs of assets.
The deficit or surplus formed by the present value of obligations of the defined benefit plan minusthe fair value of the assets of the defined benefit plan is recognized as a net liability or net asset of thedefined benefit plan. If there is a surplus in the defined benefit plan, the Company shall use the lower ofthe surplus of the defined benefit plan and the asset ceiling to measure the net assets of the definedbenefit plan.
All defined benefit plan obligations, including obligations expected to be paid within twelvemonths after the end of the annual reporting period in which employees render services, are discountedat the market rate of return in respect of the national debts matching the term and currency of the definedbenefit plan, or in respect of high-quality corporate bonds available on the active market on the balancesheet date.
The service cost incurred by the defined benefit plan and the net interest of the net liabilities or netassets of the defined benefit plan are included in the current profit and loss or the related asset cost; thechanges in the net liabilities or net assets of the defined benefit plan are recorded in other comprehensiveincome, and it will not be reversed to profit or loss in the subsequent accounting period. When theoriginal defined benefit plan is terminated, all that originally included in other comprehensive incomewill be carried forward to undistributed profit within the scope of equity.
At the settlement of the defined benefit plan, the gain or loss from the settlement is recognized bythe difference between the present value of the obligation of the defined benefit plan and the settlementprice determined on the settlement date.
(3).Accountant arrangement method of termination benefits
√Applicable □Non-applicable
Where the Company pays termination benefit to employees, the liabilities of employee remunerationgenerated by termination benefit shall be recognized at the earlier of the following date and included inthe current profit or loss: when the company cannot unilaterally withdraw termination benefit providedby labor relationship termination plan or layoff proposal; when the Company recognizes costs orexpenses related to a restructuring of the payment of termination benefits.
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
(4).Accountant arrangement method of other long-term employee benefits
□Applicable √Non-applicable
34. Lease liabilities
□Applicable √Non-applicable
35. Estimated liabilities
□Applicable √Non-applicable
36. Share-based payment
□Applicable √Non-applicable
37. Preference shares, perpetual bonds and other financial instruments
□Applicable √Non-applicable
38. Revenue
(1). Accounting policies for revenue recognition and measurement
√Applicable □Non-applicable
The Company has fulfilled its contractual obligation to recognize income when the Customerobtains control over the relevant goods or services. Obtaining control over related goods or servicesmeans to be able to dominate the use of the goods or services and obtain virtually all economic benefitsfrom it.Where the Contract contains the performance of two or more obligations, the Company shall, onthe commencement date of the Contract, apportion the transaction price to each individual performanceobligation on the basis of the relative proportion of the individual selling price of the goods or servicecommitted by each individual performance obligation. The Company shall measure its income on thebasis of the transaction price apportioned to each individual performance obligation.The transaction price refers to the amount of consideration the Company is expected to be entitledto receive for the transfer of goods or services to the Customer, excluding payments received on behalfof third parties and the amounts expected to be refunded to the Customer. The Company determines thetransaction price in accordance with Contract terms and by taking into consideration its past practices. Indetermining the transaction price, it takes into consideration the impact of variable consideration,material financing elements in the Contract, non-cash consideration, consideration payable to customersand other factors. The Company determines the transaction price that includes the variable considerationat an amount not exceeding the amount of accumulated recognized income which is not likely to bematerially reversed when the relevant uncertainty is eliminated. Where there is material financingcomponents in the Contract, the Company shall determine the transaction price on the basis of theamount payable based on the assumption that the Customer pays in cash upon obtaining control over thegoods or services, and shall amortize the difference between the transaction price and the Contractconsideration by effective interest method during the Contract period.It shall be deemed as fulfilling performance obligation within a certain period of time if one of thefollowing conditions is satisfied. Otherwise, it shall be deemed as fulfilling performance obligation at acertain point in time:
? The Customer obtains and consumes the economic benefits arising from the Company'sperformance of obligations at the same time of that the Company perform its obligations.? The Customer can control the goods under construction during the process that the Company performits obligations.? The product produced by the Company during the performance of its obligations is irreplaceable inuse, and the Company shall be entitled to receive payment for the accumulated part of the performancecompleted so far during the whole Contract period.
For obligations performed within a certain period of time, the Company shall recognize income onthe basis of the performance progress during that period, except when the performance progress cannotbe reasonably determined. The Company will adopt output method or input method to determine theperformance progress by taking the nature of the goods or services into consideration. Where theperformance progress cannot be reasonably determined and the costs incurred are expected to becompensated, the Company shall recognize income on the basis of the costs incurred until theperformance progress can be reasonably determined.
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
For obligations performed at a certain point of time, the Company recognizes income at the pointwhen the Customer obtain control over relevant goods or services. The Company takes the followingindications into consideration when determining whether the Customer has obtained control overrelevant goods or services:
? The Company is entitled to collect payment in respect of the goods or services immediately, i.e. theCustomer is obliged to make payment in respect of the goods or services immediately? The Company has transferred legal ownership of the goods to the Customer, i.e. the Customer haslegal ownership of the goods.? The Company has physically transferred the goods to the Customer, i.e. the Customer hasphysically possessed the goods.? The Company has transferred the principal risks and rewards in the ownership of the goods to theCustomer, i.e. the Customer has obtained the principal risks and rewards in the ownership of the goods.? The Customer has received the goods or services, etc.
Accounting policy adopted prior to January 01, 2020
1. General principles for the recognition of revenue from commodity sales
（1）Revenue from the sale of goods is recognized when all the significant risks and rewards ofownership of the goods have been transferred to the buyer;
（2）The Company does not retain either continuing managerial involvement to the degree usuallyassociated with ownership or effective control over the sold goods;
（3）The amount of revenue can be reliably measured;
（4）It is probable that the economic benefits associated will flow to the Company;
（5）The relevant amount of costs incurred or to be incurred can be measured reliably.
2. Specific principles
(1) Domestic company
1) Domestic sales
For sales to domestic carmakers, the goods received by customer and the notice of issuing an invoice istreated as the time point of revenue recognition. For domestic after-sales market sales, the time ofdelivery is treated as the time point of revenue recognition.
2) Overseas
For general trade sales, customs declaration and export are treated as the revenue confirmation timepoint. For the sales based on DDU and DDP as contained in the sales contract, the time of arrival at thedestination and the acknowledgment of receipt by customer is treated as the time point of revenuerecognition.
(2) Tuopu North American Ltd
The time of shipment and the acknowledgment of receipt by customer is treated as the time point ofrevenue recognition.
(2). Different business models adopted for similar businesses leading to differences in revenuerecognition accounting policies
□Applicable√ Non-applicable
39. Contract costs
√Applicable □Non-applicable
Accounting policies effective from January 1, 2020
Contract costs include contract performance costs and contract acquisition costs.
The Company recognizes the costs incurred for performing the contract and that not fall within thescope of inventories, fixed assets or intangible assets as stipulated by related standards as an asset whenthe following conditions are met:
? The cost is directly related to a current or anticipated contract.? The cost increases the Company's future resources to perform obligations.? The cost is expected to be recovered
The Company regards the incremental cost incurred to acquire the contract and that are expected tobe recovered as contract acquisition costs, and recognizes them as an asset.
Assets related to contract costs shall be amortized using the same basis as income recognition ofgoods or services related to the asset. However, the Company shall include the amount in current profitor loss if the amortization period of the contract acquisition cost is less than one year.
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
The Company shall draw an impairment provision for the excess part when the book value of anasset related to the contract cost is higher than the difference between the following two items, andrecognize it as an impairment loss of the asset:
1. The remaining consideration expected to be obtained due to the transfer of goods or servicesrelated to the asset;
2. Estimated costs to be incurred for the transfer of goods or services related to the asset.
The Company shall reverse the impairment provision withdrawn and include it in current profit orloss if the impairment factors of the previous period change and cause the aforementioned differencehigher than the book value of the asset. However, the book value of the asset after reverse shall notexceed the book value of the asset on the reverse date under the assumption that no provision for theimpairment is withdrawn.
40. Government subsidies
√Applicable □Non-applicable
1. Type
Government grants are monetary assets and non-monetary assets acquired by the Company fromthe government free of charge. Government grants are classified into government grants related to assetsand government grants related to revenue.
Government grants related to assets refer to government grants acquired by the Company for thepurpose of purchasing or constructing or otherwise forming long-term assets. Government grants relatedto revenue refer to the government grants other than those related to assets.
The company classifies government grants into asset-related grants in accordance with thefollowing criteria:
If the government document specifies the specific intended project of subsidies, it will be classifiedaccording to the relative ratio of the amount paid of the asset and the amount paid included in theexpenses as part of the specific project, and the classification ratio needs to be checked and if necessary,changed on each balance sheet date.
The company classifies government grants into revenue-related grants in accordance with thefollowing criteria:
The government document only makes a general statement on the use and no item is specified, asrevenue-related government subsidies.
2. Confirmation of time point
Government subsidies are confirmed when the company can meet its attached conditions and canbe received.
3. Accounting treatment
Government grants related to assets shall write off the book value of relevant assets or berecognized as deferred income. When recognized as deferred income, the government grant related toassets will be period by period credited to the profits and losses of the current period in a reasonable andsystematic manner within the service life of relevant assets (those related to the Company's dailyactivities shall be recognized as other income; those unrelated to the Company's daily activities shall berecognized as non-operating income).
The revenue-related government grants shall be recognized as deferred income if they are used tocompensate relevant expenses or losses in subsequent periods, and they shall be included in profit andloss of the current period (those related to Company's routine activities shall be included in other income;those unrelated to the Company's routine activities shall be included in non-operating income) or used tooffset relevant expenses or losses during the recognition of related expenses or losses; the grants used tocompensate related expenses or losses incurred shall be included in profit and loss of the current period(those related to Company's routine activities shall be included in other income; those unrelated to theCompany's routine activities shall be included in non-operating income) or used to offset relevantexpenses or losses.
41. Deferred income tax assets/deferred income tax liabilities
√Applicable □Non-applicable
Income tax includes current income tax and deferred income tax. The Company will include currentincome tax and deferred income tax in the current profit or loss, except for income tax arising from
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
business combination and transaction or event directly included in the owners’ equity (including othercomprehensive income).Deferred income tax assets and deferred income tax liabilities shall be calculated and recognized onthe basis of the difference (temporary difference) between the tax basis of the assets and liabilities andtheir book value.Deferred income tax assets are recognized to the extent that it is probable that future taxable profitswill be available against which deductible temporary differences can be utilized. For deductible lossesand tax credits that can be reversed in the future period, deferred tax assets shall be recognized to theextent that it is probable that taxable profit will be available in the future to offset the deductible lossesand tax credits.
Save as the exceptions, deferred income tax liabilities shall be recognized for the taxable temporarydifference.
Special circumstances in which deferred income tax assets or deferred income tax liabilities are notrecognized include:
? Initial recognition of goodwill;? Transaction or event that is not a business combination and would not affect accounting profit andtaxable income (or deductible loss) at the time of occurrence.For taxable temporary differences related to investments in subsidiaries, associates and joint ventures,deferred income tax liability is recognized, unless the Company can control the timing of reversal ofsuch temporary differences and such temporary differences are not likely to be reversed in theforeseeable future. For deductible temporary differences related to the investments of subsidiaries,associates and joint ventures, deferred tax asset is recognized when the temporary differences are likelyto be reversed in the foreseeable future and the taxable income amount used to offset the deductibletemporary differences is likely to be obtained in the future.
On the balance sheet date, the Company reviews the book value of the deferred income tax assets.The book value of the deferred income tax asset will be written down if sufficient taxable income is notlikely to be obtained to offset the benefit of the deferred income tax asset in the future period. Thewrite-down amount will be reversed when sufficient taxable income is likely to be obtained.
After granted the legal rights of net settlement and with the intention to use net settlement or obtainassets and repay debt at the same time, the net amount after offsetting its current income tax assets andcurrent income tax liabilities shall be recorded.
On the balance sheet date, deferred income tax assets and deferred income tax liabilities shall be, asstipulated by tax law, measured by the applicable tax rate of the period of expected recovery of therelevant assets or settlement of the relevant liabilities.? The taxpayer has the legal right to settle the current income tax assets and current income taxliabilities on a net basis;? Deferred income tax assets and deferred tax liabilities are related to the income tax to be paid bythe same entity liable to pay tax to the same tax collection and management authority or related todifferent entities liable to pay tax. The relevant entity liable to pay tax is intended to apply net settlementof current income tax assets and liabilities or, at the same time, obtain assets and repay debt in everyfuture period that deferred income tax assets and liabilities with importance would be reversed.
42. Lease
(1). Accounting of operating lease
√Applicable □Non-applicable
(1) As the lessee of operating leases, rental payments under operating leases are recognized as costsor expenses on a straight line basis over the lease term (including rent free periods). Initial direct coststhat are attributable to an operating lease incurred by the Company are charged to current profit and loss.
When the lesser bears the lease related expenses which should be undertaken by the Company, theCompany shall deduct this part of expense from the rent and amortize the net amount over the leaseterm.
(2) Leasing charges received by the Company for the assets leased out shall be amortized in astraight-line basis over the lease term without deducting the rent-free periods, and recognized as leasingincome. The initial direct fee related to the leasing transactions paid by the Company shall be charged tocurrent expenses; if the mount is significant, it shall be capitalized and charged to current income evenlyon the same basis as the leasing income is recognized over the lease term. When the Company bears the
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
lease related expenses which should be undertaken by the lessee, the Company shall deduct this part ofexpense from the rent income, and amortize the net amount over the lease term.
(2). Accounting treatment method of financing lease
□Applicable √Non-applicable
(3). Determination method and accounting treatment method of lease under the new leasestandard
□Applicable √Non-applicable
43. Other significant accounting policies and accounting estimates
□Applicable √Non-applicable
44. Changes in significant accounting policies and accounting estimates
(1). Changes in significant accounting policies
√Applicable □Non-applicable
| Content and reason of changes in accounting policies | Approval procedure | Remark (Name and amount of the items subject to significant impact) |
| The Ministry of Finance issued the "Accounting Standards for Business Enterprises No. 14-Revenue (2017 Revision)" (Cai Kuai [2017] No. 22) on July 5, 2017, the Company will implement the updated version of revenue standards from January 1, 2020. | "Accounting Standards for Business Enterprises No. 14-Revenue (2017 Revision)" (Cai Kuai [2017] No. 22) | The Company will implement the updated version of revenue standards from January 1, 2020, and adjust the received prepayments at RMB 24,717,751.02 as contained in the consolidated balance sheet at the beginning of the year to contract liabilities at RMB 21,874,115.95 and other current liabilities at RMB 2,843,635.07, respectively; adjust the received prepayments at RMB 10,850,973.20 as contained in the balance sheet of the parent company at the beginning of the year to contract liabilities at RMB 9,602,631.15 and other current liabilities at RMB 1,248,342.05, respectively. |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
Unit: Yuan Currency: RMB
| Item | December 31st, 2019 | January 1st, 2020 | Adjusted amount |
| Current assets: | |||
| Cash and Bank Balances | 822,457,801.96 | 822,457,801.96 | |
| Deposit Reservation for Balance | |||
| Loans to Banks and Other Financial Institutions | |||
| Trading Financial Assets | 780,000,000.00 | 780,000,000.00 | |
| Derivative Financial Assets | |||
| Notes receivable | 440,734,534.85 | 440,734,534.85 | |
| Accounts receivable | 1,357,020,447.94 | 1,357,020,447.94 | |
| Receivables Financing | 587,351,790.19 | 587,351,790.19 | |
| Prepayments | 35,367,527.97 | 35,367,527.97 | |
| Premium Receivable | |||
| Reinsurance Accounts Receivable | |||
| Reinsurance Contract Reserves Receivable | |||
| Other Receivables | 13,981,969.00 | 13,981,969.00 | |
| Including: interest receivable | |||
| Dividends Receivable | |||
| Buying Back the Sale of Financial Assets | |||
| Inventory | 1,239,786,152.44 | 1,239,786,152.44 | |
| Contract Assets | |||
| Holding for-sale assets | |||
| Non-current Assets Due within 1 year | |||
| Other Current Assets | 156,215,913.11 | 156,215,913.11 | |
| Subtotal of Current Assets | 5,432,916,137.46 | 5,432,916,137.46 | |
| Non-current Assets: | |||
| Granting of loans and advances | |||
| Investment in Creditor's Rights | |||
| Investment in Other Creditor's Rights | |||
| Long-term Receivables | |||
| Long-term Equity Investment | 125,215,950.32 | 125,215,950.32 | |
| Investment in Other Equity | |||
| Other Non-current Financial Assets | |||
| Investment Property | 30,960,256.31 | 30,960,256.31 | |
| Fixed Assets | 3,941,027,638.25 | 3,941,027,638.25 | |
| Projects under Construction | 611,737,763.71 | 611,737,763.71 | |
| Productive Biological Assets | |||
| Oil and gas assets | |||
| Right-of-use Assets | |||
| Intangible Assets | 605,767,648.14 | 605,767,648.14 | |
| Development Expenditure | |||
| Goodwill | 253,310,074.24 | 253,310,074.24 | |
| Long-term unamortized expenses | 58,311,175.02 | 58,311,175.02 | |
| Deferred Income Tax Assets | 77,212,058.81 | 77,212,058.81 | |
| Other Non-current Assets | 97,855,571.08 | 97,855,571.08 | |
| Subtotal of Non-current | 5,801,398,135.88 | 5,801,398,135.88 | |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
| Assets | |||
| Total Assets | 11,234,314,273.34 | 11,234,314,273.34 | |
| Current Liabilities: | |||
| Short-term loan | 500,318,635.16 | 500,318,635.16 | |
| Borrowings from the Central Bank | |||
| Borrowings from Banks and Other Financial Institutions | |||
| Transactional financial liabilities | |||
| Derivative Financial Liabilities | |||
| Notes Payable | 1,184,846,663.26 | 1,184,846,663.26 | |
| Accounts Payable | 1,458,517,214.69 | 1,458,517,214.69 | |
| Received Prepayments | 24,717,751.02 | -24,717,751.02 | |
| Contract liabilities | 21,874,115.95 | 21,874,115.95 | |
| Financial Assets Sold for Repurchase | |||
| Deposit Taking and Interbank Deposit | |||
| Receiving from Vicariously Traded Securities | |||
| Receiving from Vicariously Sold Securities | |||
| Payroll payable | 118,780,048.70 | 118,780,048.70 | |
| Tax Payable | 68,557,861.25 | 68,557,861.25 | |
| Other Payables | 8,181,531.69 | 8,181,531.69 | |
| Including: interest payable | |||
| Dividends Payable | |||
| Service Charge and Commission Payable | |||
| Reinsurance Accounts Payable | |||
| Holding for-sale liabilities | |||
| Non-current Liabilities Due within 1 Year | 62,837,810.76 | 62,837,810.76 | |
| Other Current Liabilities | 2,843,635.07 | 2,843,635.07 | |
| Subtotal of Current Liabilities | 3,426,757,516.53 | 3,426,757,516.53 | |
| Non-current Liabilities: | |||
| Insurance Contract Reserves | |||
| Long-term loan | 182,500,000.00 | 182,500,000.00 | |
| Bonds Payable | |||
| Including: Preferred Stocks | |||
| Perpetual Bonds | |||
| Lease Liabilities | |||
| Long-term Payables | |||
| Long-term payroll payable | |||
| Expected Liabilities | |||
| Deferred Income | 172,340,145.15 | 172,340,145.15 | |
| Deferred Income Tax Liabilities | 48,067,326.66 | 48,067,326.66 | |
| Other Non-current Liabilities | |||
| Subtotal of Non-current Liabilities | 402,907,471.81 | 402,907,471.81 | |
| Total Liabilities | 3,829,664,988.34 | 3,829,664,988.34 | |
| Owners’ Equity(or Shareholders' Equity): | |||
| Paid-in Capital (or Share Capital) | 1,054,987,749.00 | 1,054,987,749.00 | |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
| Other Equity Instruments | |||
| Including: Preferred Stocks | |||
| Perpetual Bonds | |||
| Capital Reserves | 3,409,439,863.07 | 3,409,439,863.07 | |
| Less: Treasury Share | |||
| Other Comprehensive Incomes | -4,380,983.53 | -4,380,983.53 | |
| Special Reserves | |||
| Surplus Reserves | 412,680,608.91 | 412,680,608.91 | |
| General Risk Reserves | |||
| Undistributed Profits | 2,502,765,125.43 | 2,502,765,125.43 | |
| Total Owners’ Equity (Shareholders' Equity) Attributable to the Parent Company | 7,375,492,362.88 | 7,375,492,362.88 | |
| Minority Shareholders' Equity | 29,156,922.12 | 29,156,922.12 | |
| Total Owners’ Equity(or Shareholders' Equity) | 7,404,649,285.00 | 7,404,649,285.00 | |
| Total Liabilities and Total Owners’ Equity(or Shareholders' Equity) | 11,234,314,273.34 | 11,234,314,273.34 |
| Item | December 31st, 2019 | January 1st,2020 | Adjusted amount |
| Current assets: | |||
| Cash and Bank Balances | 381,471,584.55 | 381,471,584.55 | |
| Trading Financial Assets | 780,000,000.00 | 780,000,000.00 | |
| Derivative Financial Assets | |||
| Notes receivable | |||
| Accounts receivable | 1,251,021,599.94 | 1,251,021,599.94 | |
| Receivables Financing | |||
| Prepayments | 15,387,320.53 | 15,387,320.53 | |
| Other Receivables | 49,355,223.60 | 49,355,223.60 | |
| Including: interest receivable | |||
| Dividends Receivable | |||
| Inventory | 569,539,150.24 | 569,539,150.24 | |
| Contract Assets | |||
| Holding-for-sale assets | |||
| Non-current Assets Due within 1 Year | |||
| Other Current Assets | |||
| Subtotal of Current Assets | 3,046,774,878.86 | 3,046,774,878.86 | |
| Non-current Assets: | |||
| Investment in Creditor's Rights | |||
| Investment in Other Creditor's Rights | |||
| Long-term Receivables | |||
| Long-term Equity Investment | 3,437,103,706.24 | 3,437,103,706.24 | |
| Investment in Other Equity | |||
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
| Instruments | |||
| Other Non-current Financial Assets | |||
| Investment Property | 30,960,256.31 | 30,960,256.31 | |
| Fixed Assets | 2,163,880,764.04 | 2,163,880,764.04 | |
| Projects under Construction | 255,670,050.01 | 255,670,050.01 | |
| Productive Biological Assets | |||
| Oil and gas assets | |||
| Right-of-use Assets | |||
| Intangible Assets | 263,906,427.20 | 263,906,427.20 | |
| Development Expenditure | |||
| Goodwill | |||
| Long-term unamortized expenses | 24,317,606.15 | 24,317,606.15 | |
| Deferred Income Tax Assets | 25,299,141.67 | 25,299,141.67 | |
| Other Non-current Assets | 28,726,157.69 | 28,726,157.69 | |
| Subtotal of Non-current Assets | 6,229,864,109.31 | 6,229,864,109.31 | |
| Total Assets | 9,276,638,988.17 | 9,276,638,988.17 | |
| Current Liabilities: | |||
| Short-term loan | 500,318,635.16 | 500,318,635.16 | |
| Transactional financial liabilities | |||
| Derivative Financial Liabilities | |||
| Notes Payable | |||
| Accounts Payable | 886,276,735.51 | 886,276,735.51 | |
| Received Prepayments | 10,850,973.20 | -10,850,973.20 | |
| Contract liabilities | 9,602,631.15 | 9,602,631.15 | |
| Payroll payable | 63,291,315.71 | 63,291,315.71 | |
| Tax Payable | 43,013,189.57 | 43,013,189.57 | |
| Other Payables | 31,414,682.50 | 31,414,682.50 | |
| Including: interest payable | |||
| Dividends Payable | |||
| Holding for-sale liabilities | |||
| Non-current Liabilities Due within 1 Year | 62,837,810.76 | 62,837,810.76 | |
| Other Current Liabilities | 1,248,342.05 | 1,248,342.05 | |
| Subtotal of Current Liabilities | 1,598,003,342.41 | 1,598,003,342.41 | |
| Non-current Liabilities: | |||
| Long-term loan | 182,500,000.00 | 182,500,000.00 | |
| Bonds Payable | |||
| Including: Preferred Stocks | |||
| Perpetual Bonds | |||
| Lease Liabilities | |||
| Long-term Payables | |||
| Long-term payroll payable | |||
| Expected Liabilities | |||
| Deferred Income | 53,152,160.61 | 53,152,160.61 | |
| Deferred Income Tax Liabilities | 26,087,040.58 | 26,087,040.58 | |
| Other Non-current Liabilities | |||
| Subtotal of Non-current Liabilities | 261,739,201.19 | 261,739,201.19 | |
| Total Liabilities | 1,859,742,543.60 | 1,859,742,543.60 | |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
| Owners’ Equity(or Shareholders' Equity): | |||
| Paid-in Capital (or Share Capital) | 1,054,987,749.00 | 1,054,987,749.00 | |
| Other Equity Instruments | |||
| Including: Preferred Stocks | |||
| Perpetual Bonds | |||
| Capital Reserves | 3,409,439,863.07 | 3,409,439,863.07 | |
| Less: Treasury Share | |||
| Other Comprehensive Incomes | |||
| Special Reserves | |||
| Surplus Reserves | 412,680,608.91 | 412,680,608.91 | |
| Undistributed Profits | 2,539,788,223.59 | 2,539,788,223.59 | |
| Total Owners’ Equity(or Shareholders' Equity) | 7,416,896,444.57 | 7,416,896,444.57 | |
| Total Liabilities and Total Owners’ Equity(or Shareholders' Equity) | 9,276,638,988.17 | 9,276,638,988.17 | |
| Tax Type | Taxation basis | Tax rate |
| VAT | According to the provisions of the tax law, the sales tax shall be calculated on the basis of the income by selling goods and taxable services. After deducting the input tax that is allowed to be deducted from the sales tax in the current period, the difference shall be the value added tax | 13%, 9%, 6% (Note 1) |
| Consumption tax | ||
| Business tax | ||
| Urban Maintenance and Construction Tax | Calculated based on the actual VAT paid | 7%, 5%, 1% (Note 2) |
| Enterprise income tax | Calculated based on the taxable income | 34%、28%、25%、24%、22.2%、16.5%、15%、13% |
| Education Surcharges | Calculated based on the actual VAT paid | 3% |
| Local Education Surcharges | Calculated based on the actual | 2%, 1.5% (Note 3) |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
VAT paid
Note 1: The VAT tax of technology development service fees are calculated at 6% of the taxableincome; if other VAT taxable sales activities are occurred in the Company, under the “Announcement ofthe Ministry of Finance, the State Administration of Taxation, and the General Administration ofCustoms on deepening the policies of VAT reform" (Announcement of the Ministry of Finance, theState Administration of Taxation, and the General Administration of Customs, 2019 No.39), the tax rateapplicable to VAT will be adjusted to 13% and 9% from April 1
st, 2019.
Note 2: If there are taxable entities applicable to different corporate city maintenance andconstruction tax rates, make a disclosure of statement:
| Name of Taxpayer | Urban Maintenance and Construction Tax Rate |
| Liuzhou Tuopu | 5% |
| Ningbo Qianhui | 5% |
| Sichuan Tuopu | 5% |
| Pinghu Tuopu | 5% |
| Taizhou Tuopu | 5% |
| Tuopu Mechatronic System | 5% |
| Zhejiang Towin | 5% |
| Sichuan Maigao | 5% |
| Shanghai Towin | 1% |
| Other companies | 7% |
| Name of Taxpayer | Local Education Surcharges Rate |
| Wuhan Tuopu | 1.5% |
| Other company | 2% |
| Name of Taxpayer | Income Tax Rate (%) |
| The Company | 15 |
| Ningbo Qianhui | 15 |
| Tuopu Intelligent Brake | 15 |
| Baoji Tuopu | 15 |
| Tuopu Mechatronic System | 15 |
| Zhejiang Towin | 15 |
| Sichuan Maigao | 15 |
| Tuopu North American Ltd | 28 |
| Tuopu North American USA Limited, INC | 13 |
| Tuopu International | 16.50 |
| Tuopu Sweden | 22.20 |
| TUOPU (MALAYSIA) SDN.BHD. | 24 |
| Tuopu Brasil | 34 |
| Other company | 25 |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
2. Preferential tax rate
√Applicable □Non-applicable
1. Under the provisions of the “Administrative measures for the accreditation of hi-tech enterprises”(Guo Ke Fa Huo [2016] No. 32) and the “Guidelines for the accreditation management of hi-techenterprises” (Guo Ke Fa Huo [2016] No.195), Ningbo Science and Technology Bureau, Ningbo FinanceBureau, and Ningbo Tax Service, SAT issued the certificate of hi-tech enterprise (No.GR201833100473). As set out in the certificate, the Company was accredited as a hi-tech enterprise andthis accreditation is valid for 3 years. Within this period of validity, the preferential tax rate for corporateincome tax is 15%, which is effective from 2018 to 2020. The corporate income tax rate for 2020 is15%.
2. Under the provisions of the “Administrative measures for the accreditation of hi-tech enterprises”(Guo Ke Fa Huo [2016] No. 32) and the “Guidelines for the accreditation management of hi-techenterprises” (Guo Ke Fa Huo [2016] No.195), Ningbo Science and Technology Bureau, Ningbo FinanceBureau, and Ningbo Tax Service, SAT issued the certificate of hi-tech enterprise (No.GR202033100564). As set out in the certificate, Ningbo Qianhui was accredited as a hi-tech enterpriseand this accreditation is valid for 3 years. Within this period of validity, the preferential tax rate forcorporate income tax is 15%, which is effective from January 1
st
, 2020 to December 31
st, 2022. Thecorporate income tax rate for 2020 is 15%.
3. Under the provisions of the “Administrative measures for the accreditation of hi-tech enterprises”(Guo Ke Fa Huo [2016] No. 32) and the “Guidelines for the accreditation management of hi-techenterprises” (Guo Ke Fa Huo [2016] No.195), Ningbo Science and Technology Bureau, Ningbo FinanceBureau, and Ningbo Tax Service, SAT issued the certificate of hi-tech enterprise (No.GR201833100196). As set out in the certificate, Tuopu Smart Brake was accredited as a hi-techenterprise and this accreditation is valid for 3 years. Within this period of validity, the preferential taxrate for corporate income tax is 15%, which is effective from 2018 to 2020. The corporate income taxrate for 2020 is 15%.
4. Under the provisions of the “Administrative measures for the accreditation of hi-tech enterprises”(Guo Ke Fa Huo [2016] No. 32) and the “Guidelines for the accreditation management of hi-techenterprises” (Guo Ke Fa Huo [2016] No.195), Shaanxi Department of Science and Technology, ShaanxiDepartment of Finance, and Shaanxi Tax Service, SAT issued the certificate of hi-tech enterprise (No.GR201961001257). As set out in the certificate, Baoji Tuopu was accredited as a hi-tech enterprise andthis accreditation is valid for 3 years. Within this period of validity, the preferential tax rate for corporateincome tax is 15%, which is effective from 2019 to 2021. The corporate income tax rate for 2020 is15%.
5. Under the provisions of the “Administrative measures for the accreditation of hi-tech enterprises”(Guo Ke Fa Huo [2016] No. 32) and the “Guidelines for the accreditation management of hi-techenterprises” (Guo Ke Fa Huo [2016] No.195), Ningbo Science and Technology Bureau, Ningbo FinanceBureau, and Ningbo Tax Service, SAT issued the certificate of hi-tech enterprise (No.GR201933100261). As set out in the certificate, Tuopu Mechatronic System was accredited as a hi-techenterprise and this accreditation is valid for 3 years. Within this period of validity, the preferential taxrate for corporate income tax is 15%, which is effective from 2019 to 2021. The corporate income taxrate for 2020 is 15%.
6. Under the provisions of the “Administrative measures for the accreditation of hi-tech enterprises”(Guo Ke Fa Huo [2016] No. 32) and the “Guidelines for the accreditation management of hi-techenterprises” (Guo Ke Fa Huo [2016] No.195), the Office of the Steering Group for the National Hi-techEnterprise Accrediation Management Work announced the list of hi-tech enterprises prospectivelyaccredited in Zhejiang Province in 2019, in which Zhejiang Towin was accredited as a hi-tech enterprise.The preferential tax rate for corporate income tax is 15%, which is effective from 2019 to 2021. Thecorporate income tax rate for 2020 is 15%.
7. Under the "Notice of the Ministry of Finance, the General Administration of Customs, and theState Administration of Taxation on taxation policy issues concerning the further implementation of theWestern Development Strategy" (Cai Shui [2011] No. 58), any enterprise engaged in an encouragedindustry in Western China will pay corporate income tax at 15% from January 1
st, 2011 to December
st, 2020. Under the “Letter of confirming the main operations of Sichuan Maigao as the stateencouraged industry” (Chuan Jing Xin Gui Chan Han No. [2019]890), as circulated by Sichuan
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
Department of Economic and Information, the main operations of Sichuan Maigao are confirmed as thestate encouraged industry in the “Catalogue of Guidelines for Adjustment of Industrial Structure” and“Catalogue of Encouraged Industries in Western China”, so the tax reduction policy applies. Thecorporate income tax rate for 2020 is 15%.
3. Others
□Applicable √Non-applicable
VII. Notes to the Items in the Consolidated Financial Statement
1. Cash and bank balances
√Applicable □Non-applicable
Unit： Yuan Currency： RMB
| Item | Balance at the End of the Period | Balance at the Beginning of the Period |
| Cash on Hand | 8,899.73 | 8,113.38 |
| Bank Balance | 674,857,522.35 | 715,173,954.74 |
| Other Cash and Bank Balances | 112,257,224.37 | 107,275,733.84 |
| Total | 787,123,646.45 | 822,457,801.96 |
| Including: Total Amount Deposited in Overseas Banks | 70,846,825.02 | 30,805,176.27 |
| Item | Balance at the End of the Period | Balance at the End of Previous Year |
| Documentary Credit Deposit | 112,257,224.37 | 106,875,733.84 |
| L/C Guarantee deposits | 400,000.00 | |
| Total | 112,257,224.37 | 107,275,733.84 |
| Item | Balance at the End of the Period | Balance at the Beginning of the Period |
| Financial assets that are measured at fair value and whose changes are included in the current profit and loss | 176,111.00 | 780,000,000.00 |
| Including: | ||
| Short-term financial products | 780,000,000.00 | |
| Equity instrument investment | 176,111.00 | |
| Financial assets that are designated to be measured at fair value and whose changes are included in the current profit and loss | ||
| Including: | ||
| Total | 176,111.00 | 780,000,000.00 |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
4. Notes Receivable
(1) Notes receivable presented by category
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
| Item | Balance at the End of the Period | Balance at the Beginning of the Period |
| Bank Acceptance Notes | 296,283,951.73 | 422,499,894.27 |
| Commercial Acceptance Notes | 19,194,358.51 | |
| Provision for impairment of commercial acceptance bills | -959,717.93 | |
| Total | 296,283,951.73 | 440,734,534.85 |
| Item | Pledged amount by the end of period |
| Bank Acceptance Notes | 296,225,046.21 |
| Commercial Acceptance Notes | |
| Total | 296,225,046.21 |
| Category | Balance at the Beginning of the Period | Amount Changed in the Current Period | Balance at the End of the Period | ||
| Provision | Withdrawal or Reversal | Write-off | |||
| Provision for bad debts of commercial acceptance bills | 959,717.93 | 959,717.93 | |||
| Total | 959,717.93 | 959,717.93 | |||
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
5. Accounts receivable
(1). Disclosure by aging
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
| Aging | Book Balance at the End of the Period |
| Within 1 year | |
| Including: sub-item within 1 year | |
| Within 1 year | 1,852,308,912.50 |
| Subtotal within 1 year | 1,852,308,912.50 |
| 1 to 2 years | 17,017,466.57 |
| 2 to 3 years | 10,380,883.70 |
| Over 3 years | 8,279,853.97 |
| 3 to 4 years | |
| 4 to 5 years | |
| Over 5 years | 5,627,793.14 |
| Provision for bad debts | -110,347,902.23 |
| Total | 1,783,267,007.65 |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
(2）. Categorical disclosure by provision for bad debts
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
| Category | Balance at the End of the Period | Balance at the Beginning of the Period | ||||||||
| Book Balance | Bad Debt Provision | Book Value | Book Balance | Bad Debt Provision | Book Value | |||||
| Amount | (%) Percentage (%) | Amount | Accrued Proportion (%) | Amount | Percentage (%) | Amount | Accrued Proportion (%) | |||
| Bad debt provision accrued based on single item | 7,929,510.12 | 0.42 | 7,929,510.12 | 100.00 | 7,790,842.99 | 0.54 | 7,790,842.99 | 100.00 | ||
| Including: | ||||||||||
| Bad debt provision accrued based on single item | 7,929,510.12 | 0.42 | 7,929,510.12 | 100.00 | 7,790,842.99 | 0.54 | 7,790,842.99 | 100.00 | ||
| Bad debt provision accrued based on combinations | 1,885,685,399.76 | 99.58 | 102,418,392.11 | 5.43 | 1,783,267,007.65 | 1,434,544,085.11 | 99.46 | 77,523,637.17 | 5.40 | 1,357,020,447.94 |
| Including: | ||||||||||
| Bad debt provision accrued based on aging combinations | 1,885,685,399.76 | 99.58 | 102,418,392.11 | 5.43 | 1,783,267,007.65 | 1,434,544,085.11 | 99.46 | 77,523,637.17 | 5.40 | 1,357,020,447.94 |
| Total | 1,893,614,909.88 | / | 110,347,902.23 | / | 1,783,267,007.65 | 1,442,334,928.10 | / | 85,314,480.16 | / | 1,357,020,447.94 |
| Name | Balance at the End of the Period | |||
| Book Balance | Bad Debt Provision | Accrued Proportion (%) | Reason for Accrual | |
| Henan Dongqi Chenfei Rubber and Plastic Co., Ltd. | 2,438,745.39 | 2,438,745.39 | 100.00 | Expected to be unable to recover |
| Chongqing Hyosow Parts Co., Ltd. | 4,682,782.60 | 4,682,782.60 | 100.00 | Expected to be unable to |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
| recover | ||||
| Zhejiang Green Field Motor Co., Ltd. | 414,778.13 | 414,778.13 | 100.00 | Expected to be unable to recover |
| Chongqing Lifan Passenger Vehicle Co., Ltd. | 393,204.00 | 393,204.00 | 100.00 | Expected to be unable to recover |
| Total | 7,929,510.12 | 7,929,510.12 | 100.00 | / |
| Name | Balance at the End of the Period | ||
| Accounts Receivable | Bad Debt Provision | Accrued Proportion(%) | |
| Within 1 year (including 1 year) | 1,852,308,912.50 | 92,615,445.62 | 5.00 |
| 1-2 years (including 2 years) | 17,017,466.57 | 1,701,746.65 | 10.00 |
| 2-3 years (including 3 years) | 9,966,105.57 | 2,989,831.67 | 30.00 |
| 3-5 years (including 5 years) | 3,203,867.37 | 1,922,320.42 | 60.00 |
| Over 5 years | 3,189,047.75 | 3,189,047.75 | 100.00 |
| Total | 1,885,685,399.76 | 102,418,392.11 | |
| Category | Balance at the Beginning of the Period | Amount Changed in the Current Period | Balance at the End of the Period | |||
| Provision | Withdrawal or Reversal | Write-off | Other Changes | |||
| Bad debt provision accrued based on single item | 7,790,842.99 | 138,667.13 | 7,929,510.12 | |||
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
| Bad debt provision accrued based on combinations | 77,523,637.17 | 24,894,754.94 | 102,418,392.11 | |||
| Total | 85,314,480.16 | 25,033,422.07 | 110,347,902.23 |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
(5). Accounts receivable of the top five closing balances collected by debtors
√Applicable □Non-applicable
| Name of Entity | Balance at the End of the Period | ||
| Accounts Receivable | Proportion in Total Accounts Receivable (%) | Bad Debt Provision | |
| No.1 | 442,999,760.20 | 23.39 | 22,149,988.01 |
| No.2 | 337,923,690.04 | 17.85 | 16,896,184.50 |
| No.3 | 206,946,830.18 | 10.93 | 10,347,341.51 |
| No.4 | 79,593,506.53 | 4.2 | 3,979,675.33 |
| No.5 | 46,199,384.89 | 2.44 | 2,309,969.24 |
| Total | 1,113,663,171.84 | 58.81 | 55,683,158.59 |
| Item | Balance at the End of the Period | Balance at the Beginning of the Period |
| Notes receivable | 742,203,122.21 | 587,351,790.19 |
| Total | 742,203,122.21 | 587,351,790.19 |
| Item | Balance at the End of Previous Year | Increase in the Current Period | Derecognition in the Current Period | Other Changes | Balance at the End of the Period | Cumulative loss provision recognized in other comprehensive income |
| Bank Acceptance Notes | 587,351,790.19 | 4,499,901,156.99 | 4,372,392,149.83 | 714,860,797.35 | ||
| Commercial | 40,692,965.07 | 11,911,570.48 | -1,439,069.73 | 27,342,324.86 |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
| Acceptance Notes | ||||||
| Total | 587,351,790.19 | 4,540,594,122.06 | 4,384,303,720.31 | -1,439,069.73 | 742,203,122.21 |
| Item | Pledged amount by the end of period |
| Bank Acceptance Notes | 605,111,448.46 |
| Commercial Acceptance Notes | 13,474,904.41 |
| Total | 618,586,352.87 |
| Item | Derecognised amount at the end of the period | Not derecognised amount at the end of the period |
| Bank Acceptance Notes | 1,118,453,642.11 | |
| Total | 1,118,453,642.11 |
| Aging | Balance at the End of the Period | Balance at the Start of the Period | ||
| Amount | Percentage(%) | Amount | Percentage(%) | |
| Within 1 year | 38,834,366.57 | 90.56 | 33,352,625.65 | 94.30 |
| 1-2 years | 2,579,881.03 | 6.02 | 1,379,449.26 | 3.90 |
| 2-3 years | 838,134.84 | 1.95 | 89,812.40 | 0.25 |
| Over 3 years | 631,435.96 | 1.47 | 545,640.66 | 1.55 |
| Total | 42,883,818.40 | 100.00 | 35,367,527.97 | 100.00 |
| Prepayments made to | Balance at the end of the period | Proportion in total balance of prepayments at the end of the period |
| GLOBAL GLORY GROUP LIMITED | 2,454,288.53 | 5.72 |
| Sri Trang Agro-Industry (Shanghai) Co., Ltd. | 2,286,718.89 | 5.33 |
| Ningbo Wanguhui Li Plastic Chemical | 1,546,245.00 | 3.61 |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
| Prepayments made to | Balance at the end of the period | Proportion in total balance of prepayments at the end of the period |
| Trading Co., Ltd. | ||
| Lianyi Dawang Rubber Co., Ltd. | 1,321,874.65 | 3.08 |
| Johnson Electric (Guangdong) Co., Ltd. | 951,906.22 | 2.22 |
| Total | 8,561,033.29 | 19.96 |
| Item | Balance at the end of the period | Balance at the beginning of the period |
| Interest receivable | ||
| Dividend receivable | ||
| Other Receivables | 31,087,166.38 | 13,981,969.00 |
| Total | 31,087,166.38 | 13,981,969.00 |
| Aging | Book Balance at the End of the Period |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
| Within 1 year | |
| Including: sub-item within 1 year | |
| Within 1 year | 31,493,515.91 |
| Subtotal within 1 year | 31,493,515.91 |
| 1-2 years | 600,751.95 |
| 2-3 years | 453,930.00 |
| Over 3 years | 774,746.23 |
| 3-4 years | |
| 4-5 years | |
| Over 5 years | 339,600.00 |
| Bad debt provision | -2,575,377.71 |
| Total | 31,087,166.38 |
| Nature of Funds | Book balance at the end of the period | Book balance at the beginning of the period |
| Export tax rebate receivable | 3,067,052.92 | |
| Petty cash funds | 122,815.13 | 670,096.10 |
| Security deposit | 29,417,358.76 | 15,633,181.45 |
| Others | 4,122,370.20 | 3,045,023.12 |
| Total | 33,662,544.09 | 22,415,353.59 |
| Bad debt provision | Phase 1 | Phase 2 | Phase 3 | Total |
| Expected credit loss in the next 12 months | Expected credit loss throughout the duration (no credit impairment occurred) | Expected credit loss throughout the duration (credit impairment has occurred) | ||
| Balance on January 1, 2020 | 8,433,384.59 | 8,433,384.59 | ||
| Balance of the current period on January 1, 2020 | ||||
| --Transfer to Phase 2 | ||||
| --Transfer to Phase 3 | ||||
| --Transfer to Phase 2 | ||||
| --Transfer to Phase 1 | ||||
| Provision made in the current period | ||||
| Reversal in the current period | 5,858,006.88 | 5,858,006.88 | ||
| Write-off in the current period | ||||
| Write-off in the current period |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
| Other changes | ||||
| Balance on December 31, 2020 | 2,575,377.71 | 2,575,377.71 |
| Category | Balance at the Beginning of the Period | Amount Changed in the Current Period | Balance at the End of the Period | |||
| Provision | Withdrawal or Reversal | Write-off | Other Changes | |||
| Accounts receivable with bad debt accrued based on aging portfolio | 8,433,384.59 | 5,858,006.88 | 2,575,377.71 | |||
| Total | 8,433,384.59 | 5,858,006.88 | 2,575,377.71 | |||
| Name of Unit | Nature of funds | Balance at the end of the period | Aging | Proportion in total other receivables at the end of the period (%) | Balance of bad debt provision at the end of the period |
| Ningbo Hangzhou Bay New Zone Administration Committee for Development and Construction | Security deposit | 19,831,703.00 | Within 1 year | 58.91 | 991,585.15 |
| Special account for online security deposits of Cixi Public Resources Trading Center | Security deposit | 6,040,000.00 | Within 1 year | 17.94 | 302,000.00 |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
| Special custody account of Beilun Customs of the People’s Republic of China | Security deposit | 2,039,571.58 | Within 1 year | 6.06 | 101,978.58 |
| Zhejiang Geely Holding Group Automobile Sales Co., Ltd. | Security deposit | 500,000.00 | Within 1 year | 1.49 | 25,000.00 |
| Liu Hongsong | Other | 455,000.00 | Within 1 year | 1.35 | 200,100.00 |
| Total | / | 28,866,274.58 | / | 85.75 | 1,620,663.73 |
Ningbo Tuopu Group Co., Ltd. Annual Report 2020
9. Inventories
(1).Category of inventories
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
| Item | Balance at the End of the Period | Balance at the Start of the Period | ||||
| Book Balance | Inventory depreciation provision or contract performance cost impairment provision | Book Value | Book Balance | Inventory depreciation provision or contract performance cost impairment provision | Book Value | |
| Raw materials | 217,685,102.37 | 217,685,102.37 | 174,632,264.90 | 174,632,264.90 | ||
| WIPs | ||||||
| Finished goods | 617,392,628.62 | 38,312,844.14 | 579,079,784.48 | 479,800,587.16 | 24,824,483.78 | 454,976,103.38 |
| Revolving materials | 15,283,612.95 | 15,283,612.95 | 11,017,609.64 | 11,017,609.64 | ||
| Consumptive biological assets | ||||||
| Contract performance cost | ||||||
| Production cost | 244,417,226.39 | 244,417,226.39 | 209,879,246.83 | 209,879,246.83 | ||
| Delivered goods | 446,286,110.69 | 446,286,110.69 | 389,280,927.69 | 389,280,927.69 | ||
| Total | 1,541,064,681.02 | 38,312,844.14 | 1,502,751,836.88 | 1,264,610,636.22 | 24,824,483.78 | 1,239,786,152.44 |
| Item | Balance at the Start of the Period | Increase in the Current Period | Decrease in the Current Period | Balance at the End of the Period | ||
| Accrued | Others | Reversal or Write-off | Others | |||
| Raw materials | ||||||
| WIPs | ||||||
| Finished goods | 24,824,483.78 | 20,176,862.13 | 6,688,501.77 | 38,312,844.14 | ||
| Revolving materials | ||||||
| Consumptive biological assets | ||||||
| Contract performance cost | ||||||
| Total | 24,824,483.78 | 20,176,862.13 | 6,688,501.77 | 38,312,844.14 | ||
Ningbo Tuopu Group Co., Ltd Annual Report 2020
(3). Notes to the balance at the end of the inventory period with the capitalized amount ofborrowing costs
□Applicable √Non-applicable
(4). Notes to the amortized amount in the current period of contract performance cost
□Applicable √Non-applicable
Other Notes
□Applicable √Non-applicable
10. Contract Assets
(1). Particulars of contract assets
□Applicable √Non-applicable
(2). Amount and reason for the significant change in the book value during the reporting period
□Applicable √Non-applicable
(3). Particulars of impairment provision of contract assets in the current period
□Applicable √Non-applicable
If the bad debt provision is made by the general expected credit loss model, e refer to the disclosure ofother receivables:
□Applicable √Non-applicable
Other Notes:
□Applicable √Non-applicable
11. Holding-for-sale assets
□Applicable √Non-applicable
12. Non-current assets due within one year
□Applicable √Non-applicable
Important debt investments and other debt investments at the end of the period:
□Applicable √Non-applicable
13. Other Current Assets
□Applicable √Non-applicable
Unit：Yuan Currency：RMB
| Item | Balance at the End of the Period | Balance at the Beginning of the Period |
| Contract acquisition cost | ||
| Return cost receivable | ||
| Unpaid VAT | 168,424,657.71 | 151,599,906.30 |
| Prepaid income tax | 5,400,034.11 | 4,616,006.81 |
| Total | 173,824,691.82 | 156,215,913.11 |
Ningbo Tuopu Group Co., Ltd Annual Report 2020
15. Other Debt Investments
(1). Particulars of other debt investments
□Applicable √Non-applicable
(2). Other important debt investments at the end of the period
□Applicable √Non-applicable
(3). Particulars of provision for impairment
□Applicable √Non-applicable
The amount of impairment provision for the current period and the basis for assessing whether the creditrisk of financial instruments has increased significantly
□Applicable √Non-applicable
Other Notes:
□Applicable √Non-applicable
16. Long-term Receivables
(1). Particulars of long-term receivables
□Applicable √Non-applicable
(2). Particulars of provision for bad debts
□Applicable √Non-applicable
The amount of provision for bad debts in the current period and the basis for assessing whether the creditrisk of financial instruments has increased significantly
□Applicable √Non-applicable
(3). Long-term receivables derecognized due to the transfer of financial assets
□Applicable √Non-applicable
(4). The amount of assets and liabilities formed by the transfer of long-term receivables andcontinued involvement
□Applicable √Non-applicable
□Applicable √Non-applicable
Ningbo Tuopu Group Co., Ltd Annual Report 2020
17. Long-term Equity Investment
√Applicable □Non-applicable
Unit： Yuan Currency： RMB
| Invested Entity | Balance at the Beginning of the Period | Decrease/Increase in the current period | Balance at the End of the Period | Balance of impairment provision at the end of the period | |||||||
| Investment Increased | Investment Decreased | Investment profit and loss recognized under the equity method | Adjustment on other comprehensive income | Other changes in equity | Cash dividends or profit declared to distribute | Provision for impairment accrued | Others | ||||
| I. Joint ventures | |||||||||||
| Tuopu Electrical Appliances Co., Ltd. (hereinafter referred to as “Tuopu Electrical Appliances”) | 55,128,214.81 | 7,448,199.22 | 62,576,414.03 | ||||||||
| Ningbo Borgers Tuopu Automobile Parts Co., Ltd. (hereinafter referred to as “Ningbo Borgers) | 59,530,818.39 | 17,551,044.91 | 77,081,863.30 | ||||||||
| Subtotal | 114,659,033.20 | 24,999,244.13 | 139,658,277.33 | ||||||||
| II. Affiliates | |||||||||||
| Chongqing Antolin Tuopu Overhead System Co., Ltd. (hereinafter referred to as “Chongqing Antolin”) | 10,556,917.12 | 80,789.13 | 10,637,706.25 | ||||||||
| Subtotal | 10,556,917.12 | 80,789.13 | 10,637,706.25 | ||||||||
| Total | 125,215,950.32 | 25,080,033.26 | 150,295,983.58 | ||||||||
Ningbo Tuopu Group Co., Ltd Annual Report 2020
18. Other equity instrument investments
(1). Particulars of other equity instrument investments
□Applicable √Non-applicable
(2). Particulars of investment in non-trading equity instruments
□Applicable √Non-applicable
Other Notes:
□Applicable √Non-applicable
19. Other non-current financial assets
□Applicable √Non-applicable
Other Notes:
□Applicable √Non-applicable
20. Investment property
Measurement options of investment property
(1). Investment properties measured by cost method
Unit： Yuan Currency： RMB
| Item | Buildings and constructions | Land use rights | Projects under Construction | Total |
| I . Original book value | ||||
| 1. Balance at the beginning of the period | 44,143,733.52 | 6,689,012.00 | 50,832,745.52 | |
| 2. Increased in the Current Period | 4,919,549.41 | 4,919,549.41 | ||
| (1) Purchase | ||||
| (2) Transfer-in of Inventory\Fixed assets\Construction in progress | 4,919,549.41 | 4,919,549.41 | ||
| (3) Increase from business combination | ||||
| 3. Decreased in the Current Period | ||||
| (1) Disposal | ||||
| (2) Other Transfer-out | ||||
| 4. Balance at the end of the period | 49,063,282.93 | 6,689,012.00 | 55,752,294.93 | |
| II. Accumulated Depreciation and Amortization | ||||
| 1. Balance at the beginning of the period | 17,571,599.87 | 2,300,889.34 | 19,872,489.21 |
Ningbo Tuopu Group Co., Ltd Annual Report 2020
| 2. Increased in the Current Period | 4,115,851.31 | 160,536.29 | 4,276,387.60 | |
| (1) Accrual or Amortization | 2,135,859.41 | 160,536.29 | 2,296,395.70 | |
| (2) Transfer of fixed assets | 1,979,991.90 | 1,979,991.90 | ||
| 3. Decreased in the Current Period | ||||
| (1) Disposal | ||||
| (2) Other transfer-out | ||||
| 4. Balance at the end of the period | 21,687,451.18 | 2,461,425.63 | 24,148,876.81 | |
| III. Provision for Impairment | ||||
| 1. Balance at the beginning of the period | ||||
| 2. Increased in the Current Period | ||||
| (1) Accrual | ||||
| 3. Decreased in the Current Period | ||||
| (1) Disposal | ||||
| (2) Other Transfer-out | ||||
| 4. Balance at the end of the period | ||||
| IV. Book value | ||||
| 1. Book value at the end of the period | 27,375,831.75 | 4,227,586.37 | 31,603,418.12 | |
| 2. Book value at the beginning of the period | 26,572,133.65 | 4,388,122.66 | 30,960,256.31 |
| Item | Balance at the end of the period | Balance at the beginning of the period |
| Fixed assets | 4,248,257,966.73 | 3,941,027,638.25 |
| Disposal of fixed assets | ||
| Total | 4,248,257,966.73 | 3,941,027,638.25 |
Ningbo Tuopu Group Co., Ltd Annual Report 2020
Other Notes:
□Applicable √Non-applicable
Fixed Assets
(1). Particulars of fixed Assets
√Applicable □Non-applicable
Unit： Yuan Currency： RMB
| Item | Houses and buildings | Means of transportation | Machinery and equipment | Office equipment and others | Buildings for commercial use | Total |
| I . Original book value | ||||||
| 1. Balance at the beginning of the period | 2,024,581,827.43 | 32,905,724.82 | 3,189,999,047.12 | 175,950,529.18 | 68,200,328.83 | 5,491,637,457.38 |
| 2. Increased in the Current Period | 72,090,392.25 | 1,935,483.59 | 689,516,728.60 | 23,248,604.92 | 786,791,209.36 | |
| (1) Purchase | 1,556,559.87 | 1,935,483.59 | 128,468,737.46 | 11,106,440.76 | 143,067,221.68 | |
| (2) Transfer-in of construction in progress | 70,533,832.38 | 561,047,991.14 | 12,142,164.16 | 643,723,987.68 | ||
| (3) Increase from business combination | ||||||
| 3. Decreased in the Current Period | 23,408,214.96 | 2,852,595.19 | 33,381,264.33 | 198,405.74 | 59,840,480.22 | |
| (1) Disposal or scrapping | 18,488,665.55 | 2,852,595.19 | 33,381,264.33 | 198,405.74 | 54,920,930.81 | |
| (2) Transfer-in of investment property | 4,919,549.41 | 4,919,549.41 | ||||
| 4. Balance at the end of the period | 2,073,264,004.72 | 31,988,613.22 | 3,846,134,511.39 | 199,000,728.36 | 68,200,328.83 | 6,218,588,186.52 |
| II. Accumulated Depreciation | ||||||
| 1. Balance at the beginning of the period | 272,893,395.21 | 24,022,884.89 | 1,175,732,815.18 | 77,065,969.77 | 894,754.08 | 1,550,609,819.13 |
| 2. Increased in the Current Period | 91,563,567.14 | 2,562,088.83 | 327,479,371.69 | 17,457,307.16 | 1,533,864.14 | 440,596,198.96 |
| (1) Accrual | 91,563,567.14 | 2,562,088.83 | 327,479,371.69 | 17,457,307.16 | 1,533,864.14 | 440,596,198.96 |
| 3. Decreased in the Current Period | 7,250,756.33 | 2,697,140.79 | 10,182,059.21 | 745,841.97 | 20,875,798.30 | |
| (1) Disposal or scrapping | 5,270,764.43 | 2,697,140.79 | 10,182,059.21 | 745,841.97 | 18,895,806.40 | |
| (2) Transfer-in of investment | 1,979,991.90 | 1,979,991.90 |
Ningbo Tuopu Group Co., Ltd Annual Report 2020
| property | ||||||
| 4. Balance at the end of the period | 357,206,206.02 | 23,887,832.93 | 1,493,030,127.66 | 93,777,434.96 | 2,428,618.22 | 1,970,330,219.79 |
| III. Provision for Impairment | ||||||
| 1. Balance at the beginning of the period | ||||||
| 2. Increased in the Current Period | ||||||
| (1) Accrual | ||||||
| 3. Decreased in the Current Period | ||||||
| (1) Disposal or scrapping | ||||||
| 4. Balance at the end of the period | ||||||
| IV. Book value | ||||||
| 1.Book value at the end of the period | 1,716,057,798.70 | 8,100,780.29 | 2,353,104,383.73 | 105,223,293.40 | 65,771,710.61 | 4,248,257,966.73 |
| 2. Book value at the beginning of the period | 1,751,688,432.22 | 8,882,839.93 | 2,014,266,231.94 | 98,884,559.41 | 67,305,574.75 | 3,941,027,638.25 |
Ningbo Tuopu Group Co., Ltd Annual Report 2020
(2). Particulars of temporarily idle fixed assets
□Applicable √Non-applicable
(3). Particulars of fixed assets rented under financial leasing
□Applicable √Non-applicable
Fixed assets rented under operating leases
□Applicable √Non-applicable
(5). Particulars of fixed assets without property right certificate granted
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
| Item | Book Value | Reason for non-granted property right certificate |
| Houses and buildings | 487,949,105.78 | In process |
| Item | Balance at the End of the Period | Balance at the Beginning of the Period |
| Construction in progress | 943,993,396.96 | 611,737,763.71 |
| Construction supplies and materials | ||
| Total | 943,993,396.96 | 611,737,763.71 |
Ningbo Tuopu Group Co., Ltd Annual Report 2020
Construction in Progress
(1). Details of construction in progress
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
| Item | Balance at the end of the period | Balance at the beginning of the period | ||||
| Book Balance | Provision for decline in value | Book value | Book Balance | Provision for decline in value | Book value | |
| Equipment and software installation project | 682,154,841.45 | 682,154,841.45 | 511,861,666.03 | 511,861,666.03 | ||
| Molds of the group under fabrication | 83,278,532.30 | 83,278,532.30 | 51,944,098.87 | 51,944,098.87 | ||
| Intelligent Brake project of the group headquarter | 10,760,304.53 | 10,760,304.53 | 3,223,901.07 | 3,223,901.07 | ||
| Wuhan Tuopu Project | 5,106,988.41 | 5,106,988.41 | 1,944,635.96 | 1,944,635.96 | ||
| Liuzhou Tuopu Project | 77,878.41 | 77,878.41 | ||||
| Taizhou Tuopu Project | 43,526,245.62 | 43,526,245.62 | 15,962,027.86 | 15,962,027.86 | ||
| Mechatronic System Phase II Project | 25,674,905.15 | 25,674,905.15 | ||||
| Zhejiang Towin Project | 19,480,780.07 | 19,480,780.07 | ||||
| Sichuan Maigao Project | 11,545,959.74 | 11,545,959.74 | 6,525,794.31 | 6,525,794.31 | ||
| Hunan Tuopu Project | 27,462,126.30 | 27,462,126.30 | 716,981.13 | 716,981.13 | ||
| Tuopu Thermal Management Project | 10,706,712.33 | 10,706,712.33 | ||||
| Tuopu Chassis Project | 43,776,781.13 | 43,776,781.13 | ||||
| Total | 943,993,396.96 | 943,993,396.96 | 611,737,763.71 | 611,737,763.71 | ||
Ningbo Tuopu Group Co., Ltd Annual Report 2020
| Item | Budget | Balance at the Start of the Period | Increased in the current period | Transfer amounts of fixed assets in this period | Other amounts decreased in current period | Balance at the End of the Period | Project accumulative investment as a percentage of the budget (%) | Project progress | Accumulated capitalized interest amount | Including: capitalized interest amount in the current period | Capitalization rate of the interest in the current period (%) | Capital Source |
| Equipment and software installation project | 511,861,666.03 | 677,083,967.92 | 501,203,495.79 | 5,587,296.71 | 682,154,841.45 | Under construction | Self-funded or raised | |||||
| Molds of the group under fabrication | 51,944,098.87 | 45,280,158.23 | 13,945,724.80 | 83,278,532.30 | Under construction | Self-funded | ||||||
| Intelligent Brake project of the group headquarter | 530,000,000.00 | 3,223,901.07 | 76,651,802.77 | 69,115,399.31 | 10,760,304.53 | 96.86% | Under construction | Self-funded or raised | ||||
| Taizhou Tuopu Project | 45,000,000.00 | 15,962,027.86 | 27,890,810.25 | 326,592.49 | 43,526,245.62 | 97.45% | Under construction | Self-funded | ||||
| Mechatronic System Phase I Sporadic Project | 27,792,808.60 | 27,792,808.60 | As built |
Ningbo Tuopu Group Co., Ltd Annual Report 2020
| Mechatronic System Phase II Project | 130,000,000.00 | 25,674,905.15 | 25,674,905.15 | 19.75% | Under construction | Self-funded or raised | ||||||
| Zhejiang Towin Project | 45,000,000.00 | 19,480,780.07 | 6,790,583.75 | 26,271,363.82 | 100.00% | As built | Self-funded | |||||
| Other houses and structures | 9,265,289.81 | 94,401,879.97 | 5,068,602.87 | 98,598,566.91 | Under construction | Self-funded | ||||||
| Total | 750,000,000.00 | 611,737,763.71 | 981,566,916.64 | 643,723,987.68 | 5,587,296.71 | 943,993,395.96 | / | / | / | / |
Ningbo Tuopu Group Co., Ltd Annual Report 2020
Construction materials and supplies
(4). Particulars of construction materials and supplies
□Applicable √Non-applicable
23. Productive biological assets
(1). Productive biological assets measured at cost
□Applicable √Non-applicable
(2). Productive biological assets measured at fair value
□Applicable √Non-applicable
Other Notes
□Applicable √Non-applicable
24. Oil and gas assets
□Applicable √Non-applicable
25. Right-of-use assets
□Applicable √Non-applicable
Ningbo Tuopu Group Co., Ltd Annual Report 2020
26. Intangible assets
(1). Particulars of intangible assets
√Applicable □Non-applicable
Unit： Yuan Currency： RMB
| Item | Land use rights | Patent rights | Non-patented technologies | Softwares | Emission rights | Total |
| I . Original book value | ||||||
| 1. Opening Balance | 612,079,126.53 | 67,174,814.04 | 1,548,222.50 | 680,802,163.07 | ||
| 2. Increased in the Current Period | 103,547,459.95 | 731,827.92 | 104,279,287.87 | |||
| (1) Purchase | 103,547,459.95 | 731,827.92 | 104,279,287.87 | |||
| (2) Internal research and development | ||||||
| (3) Acquisition | ||||||
| 3. Decreased in the Current Period | 12,232,811.96 | 58,923.97 | 12,291,735.93 | |||
| (1) Disposal | 12,232,811.96 | 58,923.97 | 12,291,735.93 | |||
| 4. Balance at the end of the period | 703,393,774.52 | 67,847,717.99 | 1,548,222.50 | 772,789,715.01 | ||
| II. Accumulated amortization | ||||||
| 1. Balance at the beginning of the period | 54,261,479.05 | 20,348,778.00 | 424,257.88 | 75,034,514.93 | ||
| 2. Increased in the Current Period | 14,762,313.13 | 5,473,209.45 | 309,644.50 | 20,545,167.08 | ||
| (1) Accrual | 14,762,313.13 | 5,473,209.45 | 309,644.50 | 20,545,167.08 | ||
| 3. Decreased in the Current Period | 1,198,387.35 | 152,685.51 | 1,351,072.86 | |||
| (1) Disposal | 1,198,387.35 | 152,685.51 | 1,351,072.86 | |||
| 4. Balance at the end of the period | 67,825,404.83 | 25,669,301.94 | 733,902.38 | 94,228,609.15 |
Ningbo Tuopu Group Co., Ltd Annual Report 2020
| III. Provision for Impairment | ||||||
| 1. Balance at the beginning of the period | ||||||
| 2. Increased in the Current Period | ||||||
| (1) Accrual | ||||||
| 3. Decreased in the Current Period | ||||||
| (1) Disposal | ||||||
| 4. Balance at the end of the period | ||||||
| IV. Book value | ||||||
| 1.Book value at the end of the period | 635,568,369.69 | 42,178,416.05 | 814,320.12 | 678,561,105.86 | ||
| 2.Book value at the beginning of the period | 557,817,647.48 | 46,826,036.04 | 1,123,964.62 | 605,767,648.14 |
Ningbo Tuopu Group Co., Ltd Annual Report 2020
27. Development expenditure
□Applicable √Non-applicable
28. Goodwill
(1) Original book value of goodwill
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
| Name of invested entity or matter forming goodwill | Balance at the beginning of the period | Increased in the current period | Decreased in the current period | Balance at the end of the period | ||
| Generated from business combination | Disposal | |||||
| Tuopu North American USA Limited,INC | 1,080,371.29 | 1,080,371.29 | ||||
| Ningbo Qianhui | 6,058,537.77 | 6,058,537.77 | ||||
| Goodwill formed by the acquisition of chassis business from Zhejiang Towin and Sichuan Maigao | 279,645,980.89 | 279,645,980.89 | ||||
| Total | 286,784,889.95 | 286,784,889.95 | ||||
| Name of invested entity or matter forming goodwill | Balance at the beginning of the period | Increased in the current period | Decreased in the current period | Balance at the end of the period | ||
| Accrual | Disposal | |||||
| Goodwill formed by the acquisition of chassis business from Zhejiang Towin and Sichuan Maigao | 33,474,815.71 | 33,474,815.71 | ||||
| Total | 33,474,815.71 | 33,474,815.71 | ||||
Ningbo Tuopu Group Co., Ltd Annual Report 2020
The recoverable amount of goodwill is calculated at the present value of the expected future cashflow. The expected cash flow is based on the cash flow forecast approved by the Company for a periodof five years(the period from 2021 to 2025 and the stable period after 2025), and estimated from salesrevenue growth rate, gross profit and other key data determined based on the historical experience andmarket development forecast. The discount rate applicable to the Company is a pre-tax interest rate thatreflects the time value of currency in the current market and the particular risks of related asset group.
(3). Impact of goodwill impairment test
√Applicable □Non-applicable
After testing, the recoverable amount of the asset group containing goodwill formed by the acquisitionof chassis business of Zhejiang Towin and Sichuan Maigao exceeds the book value of the asset groupcontaining goodwill. Referring to the result of impairment test, no provision for goodwill impairment isrequired at the end of the period.Other Notes
□Applicable √Non-applicable
29. Long-term prepaid expenses
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
| Item | Balance at the beginning of the period | Increased in the current period | Prepaid Expenses in This Period | Other Amounts Decreased | Balance at the End of the Period |
| Decoration cost et al. | 25,395,786.69 | 8,417,595.79 | 10,427,214.10 | 771,061.01 | 22,615,107.37 |
| Others | 32,915,388.33 | 49,890,848.32 | 36,503,461.10 | 11,238,622.98 | 35,064,152.57 |
| Total | 58,311,175.02 | 58,308,444.11 | 46,930,675.20 | 12,009,683.99 | 57,679,259.94 |
| Item | Balance at the end of the period | Balance at the beginning of the period | ||
| Taxable temporary difference | Deferred Income Tax Liabilities | Taxable temporary difference | Deferred Income Tax Liabilities | |
| Provision for impairment of assets | 152,675,193.81 | 33,337,345.97 | 119,526,467.48 | 25,959,050.93 |
| Unrealized profits from internal transactions | 111,200,512.26 | 25,696,889.57 | 101,961,915.76 | 23,798,120.81 |
| Deductible loss | ||||
| Deferred income | 214,204,302.56 | 35,934,324.34 | 172,340,145.15 | 27,454,887.07 |
| Total | 478,080,008.63 | 94,968,559.88 | 393,828,528.39 | 77,212,058.81 |
| Item | Balance at the end of the period | Balance at the beginning of the period | ||
| Taxable temporary difference | Deferred Income Tax Liabilities | Taxable temporary difference | Deferred Income Tax Liabilities | |
| Assessed appreciation of assets from business combination of the companies not under the | 46,761,294.44 | 11,690,323.61 | 50,076,548.48 | 12,519,137.12 |
Ningbo Tuopu Group Co., Ltd Annual Report 2020
| same control | ||||
| Changes in the fair value of other equity instrument investments | ||||
| Changes in the fair value of other debt investments | ||||
| Accelerated depreciation of fixed assets | 268,117,758.73 | 40,217,663.81 | 236,987,930.23 | 35,548,189.54 |
| Total | 314,879,053.17 | 51,907,987.42 | 287,064,478.71 | 48,067,326.66 |
| Item | Balance at the end of the period | Balance at the beginning of the period | ||||
| Book balance | Provision for decline in value | Book value | Book balance | Provision for decline in value | Book Value | |
| Contract acquisition cost | ||||||
| Contract performance cost | ||||||
| Return cost receivable | ||||||
| Contract assets | ||||||
| Prepayments or construction equipment | 296,957,402.06 | 296,957,402.06 | 97,855,571.08 | 97,855,571.08 | ||
| Total | 296,957,402.06 | 296,957,402.06 | 97,855,571.08 | 97,855,571.08 | ||
| Item | Balance at the end of the period | Balance at the beginning of the period |
| Pledge loan |
Ningbo Tuopu Group Co., Ltd Annual Report 2020
| Mortgage loan | 400,378,888.89 | 500,318,635.16 |
| Guaranteed loan | ||
| Credit loan | ||
| Total | 400,378,888.89 | 500,318,635.16 |
| Category | Balance at the end of the period | Balance at the beginning of the period |
| Commercial acceptance bill | ||
| Bank acceptance bill | 1,471,327,551.91 | 1,184,846,663.26 |
| Total | 1,471,327,551.91 | 1,184,846,663.26 |
| Item | Balance at the end of the period | Balance at the beginning of the period |
| Within 1 year (including 1 year) | 1,853,269,995.18 | 1,407,097,012.11 |
| 1-2 years (including 2 years) | 31,986,841.31 | 42,806,138.81 |
| 2-3 years (including 3 years) | 7,239,675.36 | 4,545,216.35 |
| Over 3 years | 5,758,604.32 | 4,068,847.42 |
| Total | 1,898,255,116.17 | 1,458,517,214.69 |
Ningbo Tuopu Group Co., Ltd Annual Report 2020
Other Notes
□Applicable √Non-applicable
(9) Contract liabilities
(1). Particulars of contract liabilities
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
| Item | Balance at the end of the period | Balance at the beginning of the period |
| Within 1 year (including 1 year) | 11,522,861.56 | 17,236,132.93 |
| 1-2 years (including 2 years) | 6,673,269.49 | 1,058,243.59 |
| 2-3 years (including 3 years) | 838,769.34 | 1,478,054.64 |
| Over 3 years | 3,650,760.02 | 2,101,684.79 |
| Total | 22,685,660.41 | 21,874,115.95 |
Ningbo Tuopu Group Co., Ltd Annual Report 2020
(10) Payroll payable
(1). Presentation of payroll payable
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
| Item | Balance at the Beginning of the Period | Increased in the current period | Decreased in the current period | Balance at the End of the Period |
| I . Short-term remuneration | 118,223,468.37 | 867,319,746.28 | 847,365,105.18 | 138,178,109.47 |
| II. Demission benefits - defined contribution scheme | 556,580.33 | 15,736,450.33 | 16,178,778.46 | 114,252.20 |
| III. Dismissal benefits | ||||
| IV. Other benefits due within 1 year | ||||
| Total | 118,780,048.70 | 883,056,196.61 | 863,543,883.64 | 138,292,361.67 |
| Item | Balance at the Beginning of the Period | Increased in the current period | Decreased in the current period | Balance at the End of the Period |
| 1. Wages or salaries, bonuses, allowances and subsidies | 112,070,603.88 | 737,879,686.59 | 714,014,521.90 | 135,935,768.57 |
| 2. Staff welfare | 140,000.00 | 52,259,436.97 | 52,292,876.17 | 106,560.80 |
| 3. Social insurance contributions | 325,905.23 | 32,779,101.13 | 32,900,852.09 | 204,154.27 |
| Including: medical insurance premium | 270,457.28 | 6,471,171.61 | 6,582,153.15 | 159,475.74 |
| Work injury insurance premium | 26,896.10 | 24,943,816.83 | 24,972,393.01 | -1,680.08 |
| Birth insurance premium | 28,551.85 | 1,364,112.69 | 1,346,305.93 | 46,358.61 |
| 4. Housing funds | 78,708.00 | 36,191,139.54 | 36,159,452.54 | 110,395.00 |
| 5. Labor union and education funds | 5,608,251.26 | 8,210,382.05 | 11,997,402.48 | 1,821,230.83 |
| 6. Short-term paid absences | ||||
| 7. Short-term profit sharing plan | ||||
| Total | 118,223,468.37 | 867,319,746.28 | 847,365,105.18 | 138,178,109.47 |
Ningbo Tuopu Group Co., Ltd Annual Report 2020
(3). Presentation of defined contribution plan
√Applicable □Non-applicable
Unit： Yuan Currency： RMB
| Item | Balance at the beginning of the period | Increased in the current period | Decreased in the current period | Balance at the end of the period |
| 1. Basic pension insurance premium | 532,289.25 | 14,580,697.02 | 15,008,591.35 | 104,394.92 |
| 2. Unemployment insurance premium | 24,291.08 | 1,155,753.31 | 1,170,187.11 | 9,857.28 |
| 3. Corporate annuity payment | ||||
| Total | 556,580.33 | 15,736,450.33 | 16,178,778.46 | 114,252.20 |
| Item | Balance at the end of the period | Balance at the beginning of the period |
| VAT | 37,476,861.48 | 12,909,472.50 |
| Consumption tax | ||
| Business tax | ||
| Enterprise Income Tax | 13,247,733.04 | 30,198,542.41 |
| Individual income tax | 1,126,989.40 | 1,900,456.99 |
| Urban Maintenance and Construction Tax | 2,555,965.45 | 866,128.41 |
| Property tax | 17,409,122.91 | 14,423,301.45 |
| Education surcharges | 1,124,111.62 | 380,160.53 |
| Local education surcharges | 748,551.75 | 253,440.39 |
| Land use tax | 8,463,193.68 | 7,091,250.59 |
| Environmental protection tax | 454.86 | 546.99 |
| Disabled security fund | 313,642.20 | 207,441.16 |
| Special funds for water conservancy construction | 8,547.00 | 8,323.08 |
| Stamp duty | 390,129.90 | 318,796.75 |
| Total | 82,865,303.29 | 68,557,861.25 |
| Item | Balance at the end of the period | Balance at the beginning of the period |
| Interest Payable | ||
| Dividends Payable | ||
| Other payables | 15,722,105.17 | 8,181,531.69 |
| Total | 15,722,105.17 | 8,181,531.69 |
Ningbo Tuopu Group Co., Ltd Annual Report 2020
Interest Payable
(1). Presentation by category
□Applicable √Non-applicable
Dividends payable
(2). Presentation by category
□Applicable √Non-applicable
Other payables
(1) Other payables presented by nature of funds
√Applicable □Non-applicable
Unit： Yuan Currency： RMB
| Item | Balance at the end of the period | Balance at the beginning of the period |
| Security deposits | 8,120,598.94 | 3,416,048.96 |
| Others | 7,601,506.23 | 4,765,482.73 |
| Total | 15,722,105.17 | 8,181,531.69 |
| Item | Balance at the end of the period | Balance at the beginning of the period |
| Long-term loans due within 1 year | 62,837,810.76 | |
| Bonds payable due within 1 year | ||
| Long-term payables due within 1 year | ||
| Lease liabilities due within 1 year | ||
| Total | 62,837,810.76 |
| Item | Balance at the end of the period | Balance at the beginning of the period |
| Short-term bonds payable | ||
| Return payment payable | ||
| Prepaid and deferred output tax | 1,507,896.52 | 2,843,635.07 |
| Total | 1,507,896.52 | 2,843,635.07 |
Ningbo Tuopu Group Co., Ltd Annual Report 2020
Changes in short-term bonds payable:
□Applicable √Non-applicable
Other Notes:
□Applicable √Non-applicable
(5) Long-term loans
(1). Category of long-term loans
√Applicable □Non-applicable
Unit： Yuan Currency： RMB
| Item | Balance at the end of the period | Balance at the beginning of the period |
| Pledge loans | ||
| Mortgage loans | 182,500,000.00 | |
| Guaranteed loans | ||
| Credit loans | ||
| Total | 182,500,000.00 |
Ningbo Tuopu Group Co., Ltd Annual Report 2020
Special payables
(2). Special payables presented by the nature of payments
□Applicable √Non-applicable
(9) Long-term payroll payable
□Applicable √Non-applicable
(10) Estimated liabilities
□Applicable √Non-applicable
Ningbo Tuopu Group Co., Ltd Annual Report 2020
(11) Deferred income
Deferred income
√Applicable □Non-applicable
Unit： Yuan Currency： RMB
| Item | Balance at the beginning of the period | Increased in the period | Decreased in the period | Balance at the end of the period | Reason |
| Government grants | 172,340,145.15 | 56,728,451.00 | 14,864,293.59 | 214,204,302.56 | |
| Total | 172,340,145.15 | 56,728,451.00 | 14,864,293.59 | 214,204,302.56 | / |
| Item | Balance at the beginning of the period | Additional grants increased in the period | Amount included in non-operating income in the period | Amount included in other income in this period | Other changes | Balance at the end of the period | Assets-related/income-related |
| Machine substitution for human project with an annual capacity of 700,000 sets of vibration control products | 2,714,000.00 | 472,000.00 | 2,242,000.00 | Assets-related | |||
| Automobile composite fiber production project | 541,666.67 | 100,000.00 | 441,666.67 | Assets-related | |||
| Tuopu Intelligent Mechatronic System Industrial Park Project | 16,504,166.67 | 10,000,000.00 | 983,928.57 | 25,520,238.10 | Assets-related | ||
| Production line transformation project of high-performance vibration control system for cars | 3,307,428.00 | 551,238.00 | 2,756,190.00 | Assets-related | |||
| Production and application technology transformation project of lightweight materials for vehicles | 5,249,999.96 | 874,999.96 | 4,375,000.00 | Assets-related | |||
| Technological Transformation | 6,285,946.52 | 1,638,992.00 | 794,849.79 | 7,130,088.73 | Assets-related |
Ningbo Tuopu Group Co., Ltd Annual Report 2020
| Project of Automobile High-Performance Vibration control System | |||||||
| Technological Transformation Project of Automobile Interior and Exterior Trimming System | 6,067,981.05 | 1,539,712.00 | 729,926.93 | 6,877,766.12 | Assets-related | ||
| Technological Transformation Project of Automobile Lightweight Control Arms | 6,117,222.31 | 1,663,312.00 | 777,533.25 | 7,003,001.06 | Assets-related | ||
| Technological Transformation Project of Automobile Lightweight Parts Production Line | 6,363,749.43 | 1,769,472.00 | 811,169.86 | 7,322,051.57 | Assets-related | ||
| Technological Transformation Project of Automobile High-Performance Vibration control System | 1,723,800.00 | 1,723,800.00 | Assets-related | ||||
| Technological transformation project of lightweight auto parts | 1,875,120.00 | 1,875,120.00 | Assets-related | ||||
| Digital workshop project with an annual capacity of 120,000 sets of intelligent brake systems | 3,696,000.00 | 3,696,000.00 | Assets-related | ||||
| Auto parts production and industrial automation projects | 84,666,861.65 | 4,500,000.00 | 80,166,861.65 | Assets-related | |||
| Technological transformation project for the production line of automotive lightweight alloy parts with an annual capacity of 300,000 sets | 9,226,229.99 | 537,200.00 | 973,140.06 | 8,790,289.93 | Assets-related | ||
| Technological Transformation Project of Automobile High-Performance Vibration control System | 5,564,300.00 | 92,738.34 | 5,471,561.66 | Assets-related | |||
| Shenyang Tuopu Auto Parts Base Project | 687,500.05 | 1,000,000.00 | 388,888.85 | 1,298,611.20 | Assets-related | ||
| Intelligent factory construction | 815,833.31 | 110,000.00 | 705,833.31 | Assets-related |
Ningbo Tuopu Group Co., Ltd Annual Report 2020
| project with an annual capacity of 2 million sets of automotive trimming system | |||||||
| Technological transformation project of car roof, carpet assembly and other trimming system with an annual capacity of 1.6 million sets | 1,155,000.00 | 165,000.00 | 990,000.00 | Assets-related | |||
| Auto Parts Production Project of Liudong New District | 1,446,790.70 | 84,279.07 | 1,362,511.63 | Assets-related | |||
| Automobile Fabric Production Line Project | 379,112.15 | 3,677,000.00 | 369,302.10 | 3,686,810.05 | Assets-related | ||
| Pinghu Tuopu Auto Parts Production Project | 6,149,750.00 | 7,235,000.00 | 651,150.00 | 12,733,600.00 | Assets-related | ||
| Production line project with an annual capacity of 300,000 sets of related auto parts | 748,340.50 | 86,798.28 | 661,542.22 | Assets-related | |||
| Automobile chassis parts project with an annual capacity of 500,000 sets | 4,610,917.54 | 103,229.50 | 4,507,688.04 | Assets-related | |||
| Tuopu Chassis Auto Parts Industry Base Project | 8,000,000.00 | 8,000,000.00 | Assets-related | ||||
| Auxiliary project outside the factory | 4,519,916.40 | 2,268,553.00 | 303,202.77 | 6,485,266.63 | Assets-related | ||
| Hunan Xiangtan Auto Parts Industry Base Project | 2,000,000.00 | 2,000,000.00 | Assets-related | ||||
| Relocation project with an annual capacity of 300,000 sets of automotive trimming system | 884,750.38 | 110,593.80 | 774,156.58 | Assets-related | |||
| Technological transformation project for the production line of automobile front and rear axle with an annual output of 200,000 sets | 1,921,712.84 | 378,110.76 | 1,543,602.08 | Assets-related | |||
| Technological transformation | 322,936.40 | 48,688.54 | 274,247.86 | Assets-related |
Ningbo Tuopu Group Co., Ltd Annual Report 2020
| project of automobile suspension chassis production line with annual capacity of 300,000 sets | |||||||
| Production line of automobile suspension chassis with an annual capacity of 300,000 sets | 1,652,332.63 | 240,498.68 | 1,411,833.95 | Assets-related | |||
| Passenger vehicle chassis suspension project with an annual capacity of 500,000 sets | 2,539,990.00 | 163,026.48 | 2,376,963.52 | Assets-related | |||
| Total | 172,340,145.15 | 56,728,451.00 | 14,864,293.59 | 214,204,302.56 |
Ningbo Tuopu Group Co., Ltd Annual Report 2020
at RMB 7,000,000.00 for production and application technology transformation project of lightweight materials for vehicles. As of January 2018, the said projectwas substantially completed and put into production operation. Amortized by the depreciation years corresponding to the machinery and equipment purchased usingthe above grants, as of December 31, 2020, there was a remaining sum of RMB 4,375,000.00 to be amortized over the remaining years.
6. The Company received three grants at RMB 2,772,000.00, RMB 3,840,000.00 and RMB 1,638,992.00 respectively in February 2019, November 2019 andJuly 2020 respectively, and used the sums for Technological Transformation Project of Automobile High-Performance Vibration control System. As of December2018, the said project was substantially completed and put into production operation. Amortized by the depreciation years corresponding to the machinery andequipment transformed using the above grants, as of December 31, 2020, there was a remaining sum of RMB 7,130,088.73 to be amortized over the remainingyears.
7. The Company received three grants at RMB 2,654,400.00, RMB 3,600,000.00 and RMB 1,539,712.00 respectively in February 2019, December 2019 andJuly 2020 respectively, and used the sums for Technological Transformation Project of Automobile Interior and Exterior Trimming System. As of June 2019, thesaid project was substantially completed and put into production operation. Amortized by the depreciation years corresponding to the machinery and equipmenttransformed using the above grants, as of December 31, 2020, there was a remaining sum of RMB 6,877,766.12 to be amortized over the remaining years.
8. The Company received three grants at RMB 2,532,000.00, RMB 3,890,000.00 and RMB 1,663,312.00 respectively in February 2019, November 2019 andJuly 2020 respectively, and used the sums for Technological Transformation Project of Automobile Lightweight Control Arms. As of December 2018, the saidproject was substantially completed and put into production operation. Amortized by the depreciation years corresponding to the machinery and equipmenttransformed using the above grants, as of December 31, 2020, there was a remaining sum of RMB 7,003,001.06 to be amortized over the remaining years.
9. The Company received three grants at RMB 2,544,000.00, RMB 4,130,000.00 and RMB 1,769,472.00 respectively in February 2019, November 2019 andJuly 2020 respectively, and used the sums for Technological Transformation Project of Automobile Lightweight Parts Production Line. As of December 2018, thesaid project was substantially completed and put into production operation. Amortized by the depreciation years corresponding to the machinery and equipmenttransformed using the above grants, as of December 31, 2020, there was a remaining sum of RMB 7,322,051.57 to be amortized over the remaining years.
10. The Company received the grants at RMB 1,723,800.00 in September 2020 and used the sums for Technological Transformation Project of AutomobileHigh-Performance Vibration control System. As of December 31, 2020, this project has not yet been completed and no amortization is made in this period.
11. The Company received the grants at RMB 1,875,120.00 in September 2020 and used the sums for technological transformation project of lightweight autoparts. As of December 31, 2020, this project has not yet been completed and no amortization is made in this period.
12. The Company received the grants at RMB 3,696,000.00 in September 2020 and used the sums for digital workshop project with an annual capacity of120,000 sets of intelligent brake systems. As of December 31, 2020, this project has not yet been completed and no amortization is made in this period.
13. Tuopu Mechatronic System received two grants at RMB 60,000,000.00 and RMB 30,000,000.00 in August 2017 and December 2018 and used the sumsfor auto parts production and industrial automation projects. The said project was substantially completed and put into production operation in 2018. Amortized bythe depreciation years (20 years) corresponding to the buildings and structures constructed using the above grants, as of December 31, 2020, there was a remainingsum of RMB 80,166,861.65 to be amortized over the remaining years.
14. Tuopu Mechatronic System received two grants at RMB 9,462,800.00 and RMB 537,200.00 in October 2019 and July 2020 and used the sums fortechnological transformation project for the production line of automotive lightweight alloy parts with an annual capacity of 300,000 sets. As of December 2018, thesaid project was substantially completed and put into production operation. Amortized by the depreciation years corresponding to the machinery and equipmenttransformed using the above grants, as of December 31, 2020, there was a remaining sum of RMB 8,790,289.93 to be amortized over the remaining years.
15. Tuopu Mechatronic System received the grants at RMB 5,564,300.00 in November 2020 and used the sums for technological transformation project forTechnological Transformation Project of Automobile High-Performance Vibration control System. As of November 2020, the said project was substantially
Ningbo Tuopu Group Co., Ltd Annual Report 2020
completed and put into production operation. Amortized by the depreciation years corresponding to the machinery and equipment transformed using the abovegrants, as of December 31, 2020, there was a remaining sum of RMB 5,471,561.66 to be amortized over the remaining years.
16. Tuopu Mechatronic System received two grants at RMB 1,000,000.00 and RMB 1,000,000.00 in October 2018 and August 2020 respectively, in a grosssum of RMB 2,000,000.00, and used the sums for Shenyang Tuopu Auto Parts Base Project. The said project was completed and put into operation in 2013.Amortized by the depreciation years corresponding to the fixed assets using the above grants, as of December 31, 2020, there was a remaining sum of RMB1,298,611.20元to be amortized over the remaining years.
17. Under the “Notice on issuing special funds for information and industrial development of Guangxi Zhuang Autonomous Region in 2017” Gui Cai GongJiao 【2017】 No.57, as circulated by Department of Finance of Guangxi Zhuang Autonomous Region, Liuzhou Tuopu received the technological transformationproject funds at RMB 1,100,000.00 and used the sums for Intelligent factory construction project with an annual capacity of 2 million sets of automotive trimmingsystem in August 2017. As of May 31, 2017, the said project was substantially completed and put into production operation. Amortized by the depreciation yearscorresponding to the machinery and equipment purchased using the above funds, as of December 31, 2020, there was a remaining sum of RMB 705,833.31 to beamortized over the remaining years.
18. Under the “Notice on issuing the first batch of Liuzhou enterprise support funding project investment plans in 2017” Liu Gong Xin Tong 【2017】 No.164,as circulated by Liuzhou Industry and Information Technology Commission and Liuzhou Finance Bureau, Liuzhou Tuopu received the potential exploitationtransformation funds at RMB 1,650,000.00 and used the sums for technological transformation project of car roof, carpet assembly and other trimming system withan annual capacity of 1.6 million sets in December 2017. As of December 26, 2016, the said project was substantially completed and put into production operation.Amortized by the depreciation years (10 years) corresponding to the machinery and equipment purchased using the above funds, as of December 31, 2020, there wasa remaining sum of RMB 990,000.00 to be amortized over the remaining years.
19. Liuzhou Tuopu received the grants at RMB 1,510,000.00 and used the sums for Auto Parts Production Project of Liudong New District in April 2019. Asof February 2017, the said project was substantially completed and put into production operation. Amortized by the depreciation years corresponding to thebuildings and structures constructed and acquired using the above grants, as of December 31, 2020, there was a remaining sum of RMB 1,362,511.63 to beamortized over the remaining years.
20. Wuhan Tuopu received the grants at RMB 427,000.00,RMB 1,767,000.00 and RMB 1,910,000.00 in January 2019, April 2020 and June 2020respectively, and used the sums for Fabric Production Line Project. As of November 2017, the said project was substantially completed and put into productionoperation. Amortized by the depreciation years corresponding to the machinery and equipment purchased using the above grants, as of December 31, 2020, therewas a remaining sum of RMB 3,686,810.05 to be amortized over the remaining years.
21. Pinghu Tuopu received two grants at RMB 7,235,000.00 and RMB 7,235,000.00 in January 2016 and May 2020 respectively, in a gross sum of RMB14,470,000.00, and used the sums for Automotive Trimming System Production Project. As of January 2017, the said project was substantially completed and putinto production operation. Amortized by the depreciation years (20 years) corresponding to the buildings and structures constructed and acquired using the abovegrants, as of December 31, 2020, there was a remaining sum of RMB 12,733,600.00to be amortized over the remaining years.
22. Under the “Request for application of special funds for Technological Transformation and Transformation and Upgrading of Sichuan Province in 2015”Sui Jing Xin 【2015】 No.28, as circulated by Suining Industrial and Information Technology Commission and Suining Finance Bureau, Sichuan Maigao receivedthe technological transformation and upgrading funds in October 2015 at RMB 1,110,000.00, and used the sums for production line project with an annual capacityof 300,000 sets of related auto parts. As of October 2015, the said project was substantially completed and put into production operation. Amortized by thedepreciation years (20 years) corresponding to the purchased machinery and equipment and constructed plants using the above funds, as of December 31, 2020,there was a remaining sum of RMB 661,542.22 to be amortized over the remaining years.
Ningbo Tuopu Group Co., Ltd Annual Report 2020
23. Under the “Investment Agreement” Nr. B-ZS-GY/(2013)4 signed between and by Anju Industrial Concentration Development Committee of Suining andZhejiang Fortuna Auto Parts Co., Ltd. On January 28, 2013, Sichuan Maigao received land subsidies at RMB 5,032,438.00 in December 2015 and used the sums forAutomobile chassis parts project with an annual capacity of 500,000 sets. As of December 2015, the said project was substantially completed and put intoproduction operation. Amortized by the depreciation years (48.75 years) corresponding to the land subsidies, as of December 31, 2020, there was a remaining sumof RMB 4,507,688.04 to be amortized over the remaining years.
24. Tuopu Chassis received the grants at RMB 8,000,000.00 in September 2020 and used the sums for Tuopu Chassis Auto Parts Industry Base Project. As ofDecember 31, 2020, this project has not yet been completed and no amortization is made in this period.
25. Under the investment contract made between Yantai Tuopu and the Investment Promotion Bureau of Yantai Economic and Technological DevelopmentZone, Yantai Tuopu received five grants at RMB 2,330,000.00, RMB 290,000.00, RMB 301,458.00, RMB 1,810,000.00 and RMB 2,268,533.00 in July 2018, May2019, July 2019, December 2019 and September 2020 respectively, and used the sums for auxiliary project outside the factory. As of July 2018, the said project wassubstantially completed and put into production operation. Amortized by the depreciation years corresponding to the buildings and structures using the above grants,as of December 31, 2020, there was a remaining sum of RMB 6,485,266.63 to be amortized over the remaining years.
24. Tuopu Chassis received the grants at RMB 2,000,000.00 in September 2020 and used the sums for Hunan Xiangtan Auto Parts Industry Base Project. Asof December 31, 2020, this project has not yet been completed and no amortization is made in this period.
27. Under the “Notice on issuing special fiscal funds for provincial industrial and information development of Linhai in 2018” (Lin Cai Qi [2018]30), ascirculated by Linhai Finance Bureau and Linhai Economic and Information Bureau, Taizhou Tuopu received four grants at RMB 175,100.00, RMB 193,300.00,RMB 70,900.00 and RMB 526,000.00 in September 2018, November 2019 and December 2019, and used the sums for relocation project with an annual capacity of300,000 sets of automotive trimming system. As of January 2018, the said project was substantially completed and put into production operation. Amortized by thedepreciation years corresponding to the machinery and equipment purchased using the above grants, as of December 31, 2020, there was a remaining sum of RMB774,156.58 to be amortized over the remaining years.
28. Under the “Review comment on the second batch of technological renovation and industrial and information project grants for industrial enterprises in2016”, as circulated by Wuxi County People’s Government and Wuyi County Economic and Commercial Bureau, Zhejiang Towin received the technologicaltransformation and upgrading funds at RMB 3,056,045.00 in December 2016, and used the sums for technological transformation project for the production line ofautomobile front and rear axle with an annual output of 200,000 sets. As of December 2016, the said project was substantially completed and put into productionoperation. Amortized by the depreciation years corresponding to the machinery and equipment purchased using the above funds, as of December 31, 2020, therewas a remaining sum of RMB 1,543,602.08 to be amortized over the remaining years.
29. Under the “Review comment on the first batch of technological renovation and industrial and information project grants for industrial enterprises in 2017”,as circulated by Wuxi County People’s Government and Wuyi County Economic and Commercial Bureau, Zhejiang Towin received the county-level robot purchasegrants at RMB 448,715.00 in May 2017, and used the sums for Technological transformation project of automobile suspension chassis production line with annualcapacity of 300,000 sets. As of May 2017, the said project was substantially completed and put into production operation. Amortized by the depreciation yearscorresponding to the machinery and equipment purchased using the above funds, as of December 31, 2020, there was a remaining sum of RMB 274,247.86 to beamortized over the remaining years.
30. Under the “Notice on appropriating special fiscal funds (Investment and Development) for provincial industrial and information development in 2016”, ascirculated by Wuyi County Economic and Commercial Bureau and Wuyi County Finance Bureau, Zhejiang Towin received technological transformation funds atRMB 2,133,330.00 in December 2017 and used the sums for technological transformation project of automobile suspension chassis production line with annualcapacity of 300,000 sets. As of January 2018, the said project was substantially completed and put into production operation. Amortized by the depreciation years
Ningbo Tuopu Group Co., Ltd Annual Report 2020
corresponding to the machinery and equipment purchased using the above funds, as of December 31, 2020, there was a remaining sum of RMB1,411,833.95 to beamortized over the remaining years.
31. Zhejiang Towin received technological transformation funds at RMB 2,539,990.00 for passenger vehicle chassis suspension project with an annualcapacity of 500,000 sets in July 2020. As of July 2020, the said project was substantially completed and put into production operation. Amortized by thedepreciation years corresponding to the machinery and equipment purchased using the above funds, as of December 31, 2020, there was a remaining sum of RMB2,376,963.52 to be amortized over the remaining years.
Ningbo Tuopu Group Co., Ltd Annual Report 2020
(12) Other non-current liabilities
□Applicable √Non-applicable
(13) Equity
√Applicable □Non-applicable
Unit： Yuan Currency： RMB
| Balance at the beginning of the period | Increased or decreased amount in this period (+/-) | Balance at the end of the period | |||||
| New issue | Bonus issue | Shares converted from capital reserves | Others | Subtotal | |||
| Total shares | 1,054,987,749.00 | 1,054,987,749.00 | |||||
| Item | Balance at the beginning of the period | Increased in the period | Decreased in the period | Balance at the end of the period |
| Capital premium (equity premium) | 3,409,429,514.29 | 3,409,429,514.29 | ||
| Other capital reserves | 10,348.78 | 10,348.78 | ||
| Total | 3,409,439,863.07 | 3,409,439,863.07 |
Ningbo Tuopu Group Co., Ltd Annual Report 2020
(17) Other comprehensive income
√Applicable □Non-applicable
Unit： Yuan Currency： RMB
| Item | Balance at the beginning of the period | Amount incurred in the current period | Balance at the end of the period | |||||
| Amount incurred before income tax in the current period | Less: recorded into other comprehensive incomes in previous period and transferred to P/L in current period | Less: Recorded into other comprehensive incomes in previous period and transferred to retained income in current period | Less: Income Tax Expense | Attributable to the Company after tax | Attributable to the minority shareholders after tax | |||
| 1. Other comprehensive income that cannot be reclassified into profit and loss | ||||||||
| Including: re-measurement of changes in defined benefit plans | ||||||||
| Other comprehensive income that cannot be transferred to profit and loss under the equity method | ||||||||
| Changes in the fair value of other equity instrument investments | ||||||||
| Changes in fair value of the enterprise's own credit risk | ||||||||
| 2. Other comprehensive income that will be reclassified into profit and loss | -4,380,983.53 | -16,254,480.41 | -16,250,685.21 | -3,795.20 | -20,631,668.74 | |||
| Including: other comprehensive income that can be transferred to profit or loss under the equity method | ||||||||
| Changes in the fair value of other debt investments | ||||||||
| Amount of financial assets | ||||||||
Ningbo Tuopu Group Co., Ltd Annual Report 2020
| reclassified and included in other comprehensive income | ||||||||
| Provision for impairment of other debt investment | ||||||||
| Cash flow hedge reserves | ||||||||
| Translation difference of foreign currency financial statements | -4,380,983.53 | -16,254,480.41 | -16,250,685.21 | -3,795.20 | -20,631,668.74 | |||
| Total | -4,380,983.53 | -16,254,480.41 | -16,250,685.21 | -3,795.20 | -20,631,668.74 |
Ningbo Tuopu Group Co., Ltd Annual Report 2020
(18) Special reserves
□Applicable √Non-applicable
(19) Surplus reserve
√Applicable □Non-applicable
Unit： Yuan Currency：人 RMB
| Item | Balance at the beginning of the period | Increased in the current period | Decreased in the current period | Balance at the end of the period |
| Statutory surplus reserve | 412,680,608.91 | 62,089,021.95 | 474,769,630.86 | |
| Discretionary surplus reserve | ||||
| Reserve fund | ||||
| Business development fund | ||||
| Others | ||||
| Total | 412,680,608.91 | 62,089,021.95 | 474,769,630.86 |
| Item | Current period | Previous period |
| Undistributed Profit before Adjustment at the End of Previous Period | 2,502,765,125.43 | 2,392,885,245.28 |
| Adjust the total undistributed profits at the start of the period (increase +, decrease -) | ||
| Undistributed Profit after Adjustment at the Start of the Period | 2,502,765,125.43 | 2,392,885,245.28 |
| Add: net profit attributable to parent company's owner in current period | 628,200,888.31 | 456,205,818.45 |
| Less: withdrawal of statutory surplus reserve | 62,089,021.95 | 46,563,902.00 |
| Withdrawal of discretionary surplus reserve | ||
| Withdrawal of general risk reserve | ||
| Ordinary stock dividend payable | 200,447,672.31 | 299,762,036.30 |
| Ordinary stock dividends converted into equity | ||
| Undistributed profit at the end of the period | 2,868,429,319.48 | 2,502,765,125.43 |
Ningbo Tuopu Group Co., Ltd Annual Report 2020
Other notes to undistributed profits:
According to the resolution passed at 2019 Annual General Meeting, the Company distributedRMB 1.90 per 10 shares (tax included) to all shareholders as cash dividends with total shares on therecord date for distribution plan as the base number, and total dividends at 200,447,672.31 weredistributed.
(21) Operating income and operating cost
(1). Particulars of operating income and operating cost
√Applicable □Non-applicable
Unit： Yuan Currency： RMB
| Item | Amount incurred in the current period | Amount incurred in previous period | ||
| Income | Cost | Income | Cost | |
| Main operation | 6,293,917,541.95 | 4,961,882,743.49 | 5,167,036,145.83 | 3,890,238,683.98 |
| Other operations | 217,177,372.10 | 72,131,784.90 | 191,917,667.77 | 59,754,660.08 |
| Total | 6,511,094,914.05 | 5,034,014,528.39 | 5,358,953,813.60 | 3,949,993,344.06 |
| Item | Amount incurred in the current period | Amount incurred in previous period |
| Consumption tax | ||
| Business tax | ||
| Urban Maintenance and Construction Tax | 13,570,057.87 | 11,262,152.38 |
| Education Surcharges | 5,956,703.64 | 5,016,149.58 |
| Resource tax | ||
| Property tax | 20,117,208.23 | 17,752,678.64 |
| Land use tax | 10,461,916.66 | 10,165,783.97 |
| Vehicle and vessel use tax | 10,234.20 | 20,703.80 |
| Stamp duty | 3,021,739.93 | 2,737,793.40 |
| Local education surcharges | 3,971,135.24 | 3,332,064.93 |
| Environmental protection tax | 10,262.22 | 4,406.54 |
| Franchise tax | 8,272.92 | |
| Land VAT | 945,000.00 | |
| Total | 58,072,530.91 | 50,291,733.24 |
| Item | Amount incurred in the current period | Amount incurred in previous period |
Ningbo Tuopu Group Co., Ltd Annual Report 2020
| Transportation and vehicle expenses | 135,879,033.92 | |
| Service expense | 37,448,497.63 | 36,716,218.98 |
| Payroll | 31,090,097.76 | 27,053,953.83 |
| Business hospitality expense | 17,554,681.58 | 26,722,100.66 |
| Storage fee | 29,408,219.61 | |
| Repair cost | 26,297,852.61 | 19,652,605.57 |
| Travel expense | 1,427,006.29 | 3,488,768.15 |
| Packaging fee | 3,833,817.82 | 1,625,847.62 |
| Vehicle cost | 1,982,733.62 | 2,308,113.24 |
| Exhibition fee | 28,514.85 | 185,679.24 |
| Others | 4,233,050.08 | 4,038,182.22 |
| Total | 123,896,252.24 | 287,078,723.04 |
| Item | Amount incurred in the current period | Amount incurred in previous period |
| Payroll | 129,407,881.39 | 124,126,882.92 |
| Depreciation expense | 30,504,149.76 | 24,364,820.33 |
| Business hospitality expense | 2,659,235.25 | 2,457,752.71 |
| Vehicle cost | 3,513,929.80 | 3,591,320.09 |
| Taxes | 2,128,205.29 | 1,938,578.48 |
| Travel expenses | 1,812,974.57 | 4,026,965.61 |
| Amortization of intangible assets | 15,182,606.65 | 15,128,248.66 |
| Office expenses | 4,061,233.20 | 6,614,027.93 |
| Insurance premiums | 3,745,476.72 | 3,784,683.44 |
| Intermediary fee | 3,219,840.84 | 2,905,434.21 |
| Utility bills | 2,460,308.10 | 3,262,667.44 |
| Service charge | 11,734,847.31 | 13,168,122.20 |
| Rent | 719,363.07 | 1,849,888.81 |
| Others | 21,921,822.52 | 22,424,061.57 |
| Total | 233,071,874.47 | 229,643,454.40 |
| Item | Amount incurred in the current period | Amount incurred in previous period |
| Material | 109,027,532.14 | 85,965,457.50 |
| Payroll | 147,953,842.51 | 142,560,480.32 |
| Depreciation and amortization | 58,210,594.82 | 42,347,773.52 |
| Transportation and storage fee | 2,864,077.02 | 5,285,814.38 |
| Energy consumption fee | 14,812,836.86 | 15,012,653.31 |
| Travel expense | 2,872,311.90 | 4,367,891.16 |
| Trial production expense | 4,015,146.73 | 7,958,697.31 |
| Others | 15,095,405.68 | 10,808,423.72 |
| Total | 354,851,747.66 | 314,307,191.22 |
Ningbo Tuopu Group Co., Ltd Annual Report 2020
(26) Financial expense
√Applicable □Non-applicable
Unit： Yuan Currency： RMB
| Item | Amount incurred in the current period | Amount incurred in previous period |
| Interest expense | 19,744,058.04 | 28,508,893.08 |
| Interest income | -17,108,552.05 | -24,504,258.91 |
| Gain and loss from exchange | 39,191,206.52 | -3,143,730.18 |
| Handling charge | 2,291,850.08 | 2,237,121.82 |
| Total | 44,118,562.59 | 3,098,025.81 |
| Item | Amount incurred in the current period | Amount incurred in previous period |
| Government grants | 33,135,066.17 | 26,527,210.85 |
| Total | 33,135,066.17 | 26,527,210.85 |
| Item | Amount in the current period | Amount in previous period | Assets-related/Income-related |
| Special funds for promoting industrial restructuring | 820,000.00 | Income-related | |
| Technology project subsidies | 60,000.00 | 1,010,900.00 | Income-related |
| Information support subsidies | 3,100,000.00 | Income-related | |
| Special subsidies for patents | 182,600.00 | 800,000.00 | Income-related |
| Foreign economic and trade support funds | 518,600.00 | 50,000.00 | Income-related |
| R&D patent subsidies | 72,184.00 | 2,231,577.50 | Income-related |
| Investment promotion incentives | 1,759,000.00 | Income-related | |
| Stable employment subsidies | 522,523.95 | 154,358.55 | Income-related |
| Tax subsidies | 395,862.09 | 2,925,895.58 | Income-related |
| Social security premium subsidies | 121,216.54 | 1,732,996.40 | Income-related |
| Technology project funds | 2,103,600.00 | 300,000.00 | Income-related |
| Industrial enterprise subsidies | 594,664.00 | Income-related | |
| Energy-saving evaluation report subsidies | 130,000.00 | 5,000.00 | Income-related |
| Incentives for overfulfill production target by business enterprises | 300,000.00 | 50,000.00 | Income-related |
| Intellectual property rights subsidies | 120,000.00 | Income-related |
Ningbo Tuopu Group Co., Ltd Annual Report 2020
| Power bill subsidies | 50,000.00 | 100,000.00 | Income-related |
| Corporate funding subsidies | 2,000.00 | 100,000.00 | Income-related |
| Innovation and entrepreneurship subsidies | 100,000.00 | Income-related | |
| Subsidies for small and micro enterprises featuring innovation and business startups | 100,000.00 | Income-related | |
| Bonus for enterprise above designated size | 20,000.00 | Income-related | |
| Enterprise transformation and upgrading incentives | 321,600.00 | 299,100.00 | Income-related |
| Machine substitution for human project with an annual capacity of 700,000 sets of vibration control products | 472,000.00 | 472,000.00 | Assets-related |
| Automobile composite fiber production project | 100,000.00 | 100,000.00 | Assets-related |
| Tuopu Intelligent Mechatronic System Industrial Park Project | 983,928.57 | 495,833.33 | Assets-related |
| Production line transformation project of high-performance vibration control system for cars | 551,238.00 | 551,238.00 | Assets-related |
| Production and application technology transformation project of lightweight materials for vehicles | 874,999.96 | 875,000.04 | Assets-related |
| Wuhan Automobile Fabric Production Line Project | 369,302.10 | 47,887.85 | Assets-related |
| Shenyang Tuopu Auto Parts Base Project | 388,888.85 | 249,999.96 | Assets-related |
| Intelligent factory construction project with an annual capacity of 2 million sets of automotive trimming system | 110,000.00 | 110,000.00 | Assets-related |
| Technological transformation project of car roof, carpet assembly and other trimming system with an annual capacity of 1.6 million sets | 165,000.00 | 165,000.00 | Assets-related |
| Auto Parts Production Project of Liudong New District | 84,279.07 | 63,209.30 | Assets-related |
| Auxiliary project outside the factory | 303,202.77 | 150,225.81 | Assets-related |
| Pinghu Tuopu Auto Parts Production Project | 651,150.00 | 361,750.00 | Assets-related |
| Relocation project with an | 110,593.80 | 43,709.62 | Assets-related |
Ningbo Tuopu Group Co., Ltd Annual Report 2020
| annual capacity of 300,000 sets of automotive trimming system | |||
| Auto parts production and industrial automation projects | 4,500,000.00 | 4,246,468.39 | Assets-related |
| transformation project for the production line of automotive lightweight alloy parts with an annual capacity of 300,000 sets | 973,140.06 | 236,570.01 | Assets-related |
| Technological transformation project of production line for automobile front and rear axle with annual output of 200,000 sets | 378,110.76 | 378,110.72 | Assets-related |
| County-level subsidies for purchasing robots | 48,688.54 | 48,688.56 | Assets-related |
| 2017 Technological Transformation Project | 240,498.68 | 240,498.76 | Assets-related |
| Production line project with an annual capacity of 300,000 sets of related auto parts | 86,798.28 | 86,798.28 | Assets-related |
| Automobile chassis parts project with an annual capacity of 500,000 sets | 103,229.50 | 103,229.50 | Assets-related |
| Technological Transformation Project of Automobile High-Performance Vibration control System | 794,849.79 | 326,053.48 | Assets-related |
| Technological Transformation Project of Automobile Interior and Exterior Trimming System | 729,926.93 | 186,418.95 | Assets-related |
| Technological Transformation Project of Automobile Lightweight Control Arms | 777,533.25 | 304,777.69 | Assets-related |
| Technological Transformation Project of Automobile Lightweight Parts Production Line | 811,169.86 | 310,250.57 | Assets-related |
| Incentive post-subsidies for the transformation of scientific and technological achievements of automotive trimming system | 600,000.00 | Income-related | |
| Technology subsidies | 1,607,000.00 | Income-related | |
| "One District, Multiple Parks" Development Fund | 500,000.00 | Income-related | |
| Design report grants of initial solution for | 100,000.00 | Income-related |
Ningbo Tuopu Group Co., Ltd Annual Report 2020
| intelligent transformation | |||
| VAT exemption for veterans | 9,000.00 | Income-related | |
| Industrial production and capacity expansion rewards | 1,700,000.00 | Income-related | |
| Import discount subsidies | 1,344,164.00 | Income-related | |
| Information and industrialization management system certification | 100,000.00 | Income-related | |
| Annual fee grants for domestic authorized invention patents | 4,680.00 | Income-related | |
| Funding grants for science and technology plan projects | 795,000.00 | Income-related | |
| Strategic emerging industry development funds (recognized by the National Enterprise Technology Center) | 1,000,000.00 | Income-related | |
| Talent grants | 647,650.00 | Income-related | |
| Intellectual property project subsidies | 35,600.00 | Income-related | |
| 2018 invention patent annual fee grants | 720.00 | Income-related | |
| 2018 technology transaction post grants | 59,000.00 | Income-related | |
| 2019 “Going Global” project grants | 178,500.00 | Income-related | |
| Enterprise R&D post-grants | 892,800.00 | Income-related | |
| Subsidies for resumption of work and epidemic response supplies | 1,144,872.00 | Income-related | |
| High-tech Enterprise Award | 100,000.00 | Income-related | |
| Construction fund for slope protection project in Guang'an High-tech Zone | 30,000.00 | Income-related | |
| Statistical funding subsidies granted from Economic and Information Bureau | 86,000.00 | Income-related | |
| 2020 Industrial Special Fund Subsidies | 697,900.00 | Income-related | |
| “2-year exemption, 3-year collection of corporate income tax by half” government subsidies | 1,347,700.00 | Income-related | |
| Premium investment project award on the " Leaderboard" of New District Industrial Economy | 50,000.00 | Income-related | |
| High-tech enterprise grants | 400,000.00 | Income-related |
Ningbo Tuopu Group Co., Ltd Annual Report 2020
| 2019 pollution source monitoring system operation and maintenance subsidies | 60,000.00 | Income-related | |
| Automobile high-performance vibration control system production project | 92,738.34 | Assets-related | |
| Passenger vehicle chassis suspension project with an annual capacity of 500,000 sets | 163,026.48 | Assets-related | |
| Total | 33,135,066.17 | 26,527,210.85 |
| Item | Amount incurred in the current period | Amount incurred in previous period |
| Long-term equity investment income calculated by the equity method | 25,080,033.26 | 24,507,700.52 |
| Investment income from disposal of long-term equity investments | ||
| Investment income of trading financial assets during the holding period | ||
| Dividend income from other equity instrument investments during the holding period | ||
| Interest income from debt investment during the holding period | ||
| Interest income from other debt investments during the holding period | ||
| Investment income from disposal of trading financial assets | ||
| Investment income from the disposal of other equity instrument investments | ||
| Investment income from disposal of debt investment | ||
| Investment income from the disposal of other debt investments | ||
| Investment income from financial management products | 18,164,183.51 | 26,928,822.54 |
| Total | 43,244,216.77 | 51,436,523.06 |
| Item | Amount incurred in the current period | Amount incurred in previous period |
| Bad debt loss on accounts receivable | 479,351.80 | 959,717.93 |
| Bad debt loss on accounts receivable | 25,033,422.07 | 11,866,290.11 |
Ningbo Tuopu Group Co., Ltd Annual Report 2020
| Bad debt loss on other receivables | -5,858,006.88 | 2,197,687.05 |
| Impairment loss of debt investment | ||
| Impairment loss of other debt investment | ||
| Bad debt loss of long-term receivables | ||
| Impairment loss of contract assets | ||
| Total | 19,654,766.99 | 15,023,695.09 |
| Item | Amount incurred in the current period | Amount incurred in previous period |
| 1. Loss of bad debts | ||
| 2. Loss of inventory falling price and loss of contract performance cost impairment | 22,439,872.62 | 16,948,061.74 |
| 3. Long-term equity investment impairment losses | ||
| 4. Impairment loss of investment real estate | ||
| 5. Impairment loss of fixed assets | ||
| 6. Impairment loss of construction materials | ||
| 7. Impairment loss of construction in progress | ||
| 8. Impairment loss of productive biological assets | ||
| 9. Impairment losses of oil and gas assets | ||
| 10. Intangible assets impairment loss | ||
| 11. Goodwill impairment loss | 33,474,815.71 | |
| 12. Others | ||
| Total | 22,439,872.62 | 50,422,877.45 |
| Item | Amount incurred in the current period | Amount incurred in previous period |
| Income from disposal of assets | 8,747,482.63 | -5,522,498.81 |
| Total | 8,747,482.63 | -5,522,498.81 |
| Item | Amount incurred in the current period | Amount incurred in previous period | Amount included in the current non-recurring profit and loss |
| Total gains from disposal of non-current assets |
Ningbo Tuopu Group Co., Ltd Annual Report 2020
| Including: gains from disposal of fixed assets | |||
| Gains from disposal of intangible assets | |||
| Gains from debt restructuring | |||
| Gains from non-monetary asset exchange | |||
| Capital from donation | |||
| Government grants | 1,215,201.24 | 591,762.00 | 1,215,201.24 |
| Compensation income | 3,168,618.05 | 66,366.70 | 3,168,618.05 |
| Others | 1,270,852.96 | 632,764.95 | 1,270,852.96 |
| Total | 5,654,672.25 | 1,290,893.65 | 5,654,672.25 |
| Item | Amount incurred in the current period | Amount incurred in previous period | Assets-related/Income-related |
| Foreign economic and trade subsidies | 167,600.00 | Income-related | |
| Stable employment subsidies | 296,701.24 | 5,612.00 | Income-related |
| Enterprise upgrade and level-up incentives | 50,000.00 | Income-related | |
| Industrial strong district subsidies | 40,000.00 | Income-related | |
| Real economy booster incentives | 800.00 | Income-related | |
| Science and technology project subsidies | 100,000.00 | Income-related | |
| Step-up subsidies | 100,000.00 | Income-related | |
| Poverty relief subsidies | 50,000.00 | Income-related | |
| SMEs subsidies | 9,000.00 | Income-related | |
| VAT incentive subsidies | 30,000.00 | Income-related | |
| Subsidies for recruitment of veterans | 38,750.00 | Income-related | |
| Zhejiang Cloud-based Benchmark Enterprise | 100,000.00 | Income-related | |
| Epidemic response subsidies for foreign trade enterprise | 500,000.00 | Income-related | |
| "Two direct subsidies" for small and micro enterprises | 20,000.00 | Income-related | |
| Business cultivation incentives from Shanxi Finance Bureau | 10,000.00 | Income-related | |
| Information and industrialization management system certification | 283,500.00 | Income-related | |
| 2019 invention patents | 5,000.00 | Income-related | |
| Total | 1,215,201.24 | 591,762.00 |
Ningbo Tuopu Group Co., Ltd Annual Report 2020
(35) Non-operating expenses
√Applicable □Non-applicable
Unit： Yuan Currency： RMB
| Item | Amount incurred in the current period | Amount incurred in previous period | Amount included in the current non-recurring profit and loss |
| Total loss from disposal of non-current assets | 44,105.24 | 139,437.62 | 44,105.24 |
| Including: Loss on disposal of fixed assets | 44,105.24 | 139,437.62 | 44,105.24 |
| Loss on disposal of intangible assets | |||
| Loss from debt restructuring | |||
| Loss from exchange of non-monetary assets | |||
| External donation | 466,097.35 | 52,000.00 | 466,097.35 |
| Special funds for water conservancy construction | 88,561.51 | 64,551.35 | |
| Others | 1,071,261.55 | 3,818,502.51 | 1,071,261.55 |
| Total | 1,670,025.65 | 4,074,491.48 | 1,581,464.14 |
| Item | Amount incurred in the current period | Amount incurred in previous period |
| Income tax expense in the current period | 93,867,817.06 | 60,522,841.72 |
| Deferred income tax expense | -13,915,840.31 | 8,182,932.82 |
| Total | 79,951,976.75 | 68,705,774.54 |
| Item | Amount incurred in the current period |
| Total profits | 710,086,190.35 |
| Income tax expense calculated at the statutory/applicable tax rate | 106,512,928.55 |
| Impact of different tax rates applied to subsidiaries | 8,556,115.80 |
| Adjusted impact of income tax in prior periods | |
| Impact of non-taxable income | |
| Impact of non-deductible costs, expenses and losses | 4,803,754.01 |
| Impact of using deductible losses of deferred income tax assets that have not been recognized in the previous period | |
| Impact of deductible temporary differences or deductible losses on unrecognized deferred income tax assets in the current period | |
| Impact of additional tax deductions for enterprise research and development | -39,920,821.61 |
| Others | |
| Income tax expense | 79,951,976.75 |
Ningbo Tuopu Group Co., Ltd Annual Report 2020
□Applicable √Non-applicable
(37) Other Comprehensive Income
√Applicable □Non-applicable
More details are available in“Note VII. 57. Other comprehensive income”
(38) Cash flow statement items
(1). Other cash received related to operating activities
√Applicable □Non-applicable
Unit： Yuan Currency： RMB
| Item | Amount incurred in the current period | Amount incurred in previous period |
| Receipt of temporary loans | 22,053,972.32 | 12,213,952.22 |
| Interest income | 17,108,552.05 | 24,504,258.91 |
| Government grants | 76,335,520.04 | 57,325,812.03 |
| Income from compensation and fines | 3,169,158.05 | 42,366.70 |
| Others | 1,689,365.72 | 892,793.08 |
| Total | 120,356,568.18 | 94,979,182.94 |
| Item | Amount incurred in the current period | Amount incurred in previous period |
| Payment of temporary loans | 28,824,851.17 | 1,891,089.29 |
| Transportation expense | 135,879,033.92 | |
| Storage expense | 29,408,219.61 | |
| Business hospitality expense | 20,213,916.83 | 29,179,853.37 |
| Repair cost | 26,285,029.83 | 19,652,605.57 |
| R&D spending | 148,687,310.33 | 129,384,072.21 |
| Travel expense | 3,239,980.86 | 7,515,733.76 |
| Insurance premium | 3,745,476.72 | 3,784,683.44 |
| Office expense | 4,061,233.20 | 6,614,027.93 |
| Vehicle expense | 5,496,663.42 | 5,899,433.33 |
| Service charge | 49,183,344.94 | 49,884,341.18 |
| Intermediary fee | 2,409,261.29 | 2,905,434.21 |
| Packaging fee | 3,833,817.82 | 1,625,847.62 |
| Utility bill | 2,460,308.10 | 3,262,667.44 |
| Rent | 719,363.07 | 2,886,877.27 |
| Others | 34,715,604.75 | 30,497,806.24 |
| Total | 333,876,162.33 | 460,271,726.39 |
Ningbo Tuopu Group Co., Ltd Annual Report 2020
(6). Other cash paid related to financing activities
□Applicable √Non-applicable
(39) Additional information on cash flow statement
(1). Additional information on cash flow statement
√Applicable □Non-applicable
Unit： Yuan Currency： RMB
| Additional Information | Amount in the current period | Amount in previous period |
| 1. Reconciliation of net profit to cash flows from operational activities: | ||
| Net Profit | 630,134,213.60 | 460,046,632.02 |
| Add: provision for impairment of assets | 22,439,872.62 | 50,422,877.45 |
| Credit impairment provision | 19,654,766.99 | 15,023,695.09 |
| Depreciation of fixed assets, oil and gas assets, productive biological assets | 442,576,190.86 | 341,112,804.96 |
| Depreciation of right-of-use assets | ||
| Amortization of Intangible Assets | 20,545,167.08 | 19,263,054.98 |
| Amortization of long-term prepaid expenses | 46,930,675.20 | 27,942,088.74 |
| Losses on disposal of fixed assets, intangible assets and other long-term assets (income as in “-”) | -8,747,482.63 | 5,522,498.81 |
| Losses on scrapping of fixed assets (income as in “-”) | 44,105.24 | 139,437.62 |
| Losses on fair value changes (income as in “-”) | ||
| Financial expenses (income as in “-”) | 14,740,711.65 | 15,347,394.54 |
| Losses on investment (income as in “-”) | -43,244,216.77 | -51,436,523.06 |
| Decrease on deferred income tax assets (increase as in “-”) | -17,756,501.07 | -6,997,345.49 |
| Increase on deferred income tax liabilities (decrease as in “-”) | 3,840,660.76 | 15,180,278.31 |
| Decrease on inventories (increase as in “-”) | -271,657,035.93 | -32,905,566.69 |
| Decrease on operational receivables (increase as in “-”) | -385,860,564.15 | 110,183,234.16 |
| Increase on operational payables (decrease as in “-”) | 650,045,016.56 | 270,576,797.96 |
| Others | ||
| Net cash flow generated by operating activities | 1,123,685,580.01 | 1,239,421,359.40 |
| 2. Major investing and financing activities not involving cash receipts and payment: | ||
| Conversion of debt into capital | ||
| Convertible corporate bonds due within one year | ||
| Fixed assets under financing lease | ||
| 3. Net changes in cash and cash equivalents: | ||
| Closing balance of cash | 674,866,422.08 | 715,182,068.12 |
| Less: opening balance of cash | 715,182,068.12 | 731,672,348.04 |
| Add: closing balance of cash equivalents | ||
| Less: opening balance of cash equivalents | ||
| Net additions to balance of equivalents | -40,315,646.04 | -16,490,279.92 |
Ningbo Tuopu Group Co., Ltd Annual Report 2020
(4). Composition of cash and cash equivalents
√Applicable □Non-applicable
Unit： Yuan Currency： RMB
| Item | Balance at the end of the period | Balance at the beginning of the period |
| 1. Cash | 674,866,422.08 | 715,182,068.12 |
| Including: cash on hand | 8,899.73 | 8,113.38 |
| Bank deposits that can be used for payment at any time | 674,857,522.35 | 715,173,954.74 |
| Other currency funds that can be used for payment at any time | ||
| Deposits in the central bank that can be used for payment | ||
| Deposits in Other Financial Institutions | ||
| Call loans from Other Financial Institutions | ||
| 2. Cash equivalents | ||
| Including: bond investments due within three months | ||
| 3. Balance of cash and cash equivalents at the end of the period | 674,866,422.08 | 715,182,068.12 |
| Including: cash and cash equivalents that are restricted for us by the parent company or subsidiary within the group |
| Item | Book value at the end of the period | Reason for restricted use |
| Monetary funds | 112,257,224.37 | Bank Acceptance Draft Deposit |
| Notes receivable | 296,225,046.21 | Pledge |
| Inventories | ||
| Fixed assets | 47,372,168.16 | Mortgage |
| Intangible assets | 6,804,936.88 | Mortgage |
| Receivables financing | 618,586,352.87 | Pledge |
| Total | 1,081,245,728.49 | / |
Ningbo Tuopu Group Co., Ltd Annual Report 2020
(42) Foreign currency balance at the end of the period
(1). Foreign currency balance at the end of the period
√Applicable □Non-applicable
Unit： Yuan
| Item | Foreign currency balance at the end of the period | Converted exchange rate | Balance converted to RMB at the end of the period |
| Monetary funds | - | - | 60,893,777.03 |
| Including: USD | 4,934,280.28 | 6.5249 | 32,195,685.40 |
| EUR | 393,352.18 | 8.025 | 3,156,651.24 |
| CAD | 726,129.80 | 5.1161 | 3,714,952.67 |
| AUD | 0.56 | 5.0163 | 2.81 |
| BRL | 17,381,926.34 | 1.2557 | 21,826,484.91 |
| Accounts receivable | - | - | 322,987,297.71 |
| Including: USD | 32,221,918.03 | 6.5249 | 210,244,792.96 |
| EUR | 2,464,813.94 | 8.025 | 19,780,131.83 |
| CAD | 14,340,054.16 | 5.1161 | 73,365,151.09 |
| GBP | 3,931.20 | 8.8903 | 34,949.55 |
| BRL | 15,578,778.60 | 1.2557 | 19,562,272.29 |
| Long-term loans | - | - | |
| Including: USD | |||
| EUR | |||
| HKD | |||
| Accounts payable | - | - | 75,271,306.14 |
| Including: USD | 6,098,864.80 | 6.5249 | 39,794,482.93 |
| EUR | 996,419.00 | 8.025 | 7,996,262.48 |
| CAD | 4,963,830.08 | 5.1161 | 25,395,451.07 |
| BRL | 1,660,515.78 | 1.2557 | 2,085,109.66 |
| Category | Amount | Presented Item | Amount included into current profit |
Ningbo Tuopu Group Co., Ltd Annual Report 2020
| and loss | |||
| Machine substitution for human project with an annual capacity of 700,000 sets of vibration control products | 4,720,000.00 | Deferred income | 472,000.00 |
| Automobile composite fiber production project | 1,000,000.00 | Deferred income | 100,000.00 |
| Tuopu Intelligent Mechatronic System Industrial Park Project | 27,000,000.00 | Deferred income | 983,928.57 |
| Production line transformation project of high-performance vibration control system for cars | 4,409,904.00 | Deferred income | 551,238.00 |
| Production and application technology transformation project of lightweight materials for vehicles | 7,000,000.00 | Deferred income | 874,999.96 |
| Technological Transformation Project of Automobile High-Performance Vibration control System | 8,250,992.00 | Deferred income | 794,849.79 |
| Technological Transformation Project of Automobile Interior and Exterior Trimming System | 7,794,112.00 | Deferred income | 729,926.93 |
| Technological Transformation Project of Automobile Lightweight Control Arms | 8,085,312.00 | Deferred income | 777,533.25 |
| Technological Transformation Project of Automobile Lightweight Parts Production Line | 8,443,472.00 | Deferred income | 811,169.86 |
| Technological Transformation Project of Automobile High-Performance Vibration control System | 1,723,800.00 | Deferred income | |
| Lightweight auto parts technological transformation project | 1,875,120.00 | Deferred income | |
| Digital workshop project with an annual capacity of 120,000 sets of intelligent brake systems | 3,696,000.00 | Deferred income | |
| Auto parts production and industrial automation projects | 90,000,000.00 | Deferred income | 4,500,000.00 |
| Technological transformation project for the production line of automotive lightweight alloy parts with an annual capacity of 300,000 sets | 10,000,000.00 | Deferred income | 973,140.06 |
| Automobile high-performance vibration control system production project | 5,564,300.00 | Deferred income | 92,738.34 |
| Shenyang Tuopu Auto Parts Base Project | 2,000,000.00 | Deferred income | 388,888.85 |
| Intelligent factory construction project with an annual capacity of 2 million sets of automotive trimming system | 1,100,000.00 | Deferred income | 110,000.00 |
| Technological transformation project of car roof, carpet assembly and other trimming system with an annual capacity of 1.6 million sets | 1,650,000.00 | Deferred income | 165,000.00 |
| Auto Parts Production Project of Liudong New District | 1,510,000.00 | Deferred income | 84,279.07 |
| Wuhan Automobile Fabric Production Line Project | 4,104,000.00 | Deferred income | 369,302.10 |
| Pinghu Tuopu Auto Parts Production Project | 14,470,000.00 | Deferred income | 651,150.00 |
| Relocation project with an annual capacity of | 1,110,000.00 | Deferred | 86,798.28 |
Ningbo Tuopu Group Co., Ltd Annual Report 2020
| 300,000 sets of automotive trimming system | income | ||
| Automobile chassis parts project with an annual capacity of 500,000 sets | 5,032,438.00 | Deferred income | 103,229.50 |
| Tuopu Chassis Auto Parts Industry Base Project | 8,000,000.00 | Deferred income | |
| Auxiliary project outside the factory | 7,000,011.00 | Deferred income | 303,202.77 |
| Hunan Xiangtan Auto Parts Industry Base Project | 2,000,000.00 | Deferred income | |
| Relocation project with an annual capacity of 300,000 sets of automotive trimming system | 965,300.00 | Deferred income | 110,593.80 |
| Technological transformation project of production line for automobile front and rear axle with annual output of 200,000 sets | 3,056,045.00 | Deferred income | 378,110.76 |
| Technological transformation project of production line with annual capacity of 300,000 sets of automobile suspension chassis | 448,715.00 | Deferred income | 48,688.54 |
| Technological transformation project of production line with annual capacity of 300,000 sets of automobile suspension chassis | 2,133,330.00 | Deferred income | 240,498.68 |
| Passenger vehicle chassis suspension project with an annual capacity of 500,000 sets | 2,539,990.00 | Deferred income | 163,026.48 |
| Science and technology project subsidies | 60,000.00 | Other income | 60,000.00 |
| Special subsidies for patents | 182,600.00 | Other income | 182,600.00 |
| Foreign economic and trade support funds | 518,600.00 | Other income | 518,600.00 |
| R&D patent subsidies | 72,184.00 | Other income | 72,184.00 |
| Stable employment subsidies | 522,523.95 | Other income | 522,523.95 |
| Tax subsidies | 395,862.09 | Other income | 395,862.09 |
| Social security premium subsidies | 121,216.54 | Other income | 121,216.54 |
| Technology project funds | 2,103,600.00 | Other income | 2,103,600.00 |
| Energy-saving evaluation report subsidies | 130,000.00 | Other income | 130,000.00 |
| Incentives for overfulfill production target by business enterprises | 300,000.00 | Other income | 300,000.00 |
| Power bill subsidies | 50,000.00 | Other income | 50,000.00 |
| Corporate funding subsidies | 2,000.00 | Other income | 2,000.00 |
| Enterprise transformation and upgrading incentives | 321,600.00 | Other income | 321,600.00 |
| Incentive post-subsidies for the transformation of scientific and technological achievements of automotive trimming system | 600,000.00 | Other income | 600,000.00 |
| Technology subsidies | 1,607,000.00 | Other income | 1,607,000.00 |
| "One District, Multiple Parks" Development | 500,000.00 | Other | 500,000.00 |
Ningbo Tuopu Group Co., Ltd Annual Report 2020
| Fund | income | ||
| Design report grants of initial solution for intelligent transformation | 100,000.00 | Other income | 100,000.00 |
| VAT exemption for veterans | 9,000.00 | Other income | 9,000.00 |
| Industrial production and capacity expansion rewards | 1,700,000.00 | Other income | 1,700,000.00 |
| Import discount subsidies | 1,344,164.00 | Other income | 1,344,164.00 |
| Information and industrialization management system certification | 100,000.00 | Other income | 100,000.00 |
| Annual fee grants for domestic authorized invention patents | 4,680.00 | Other income | 4,680.00 |
| Funding grants for science and technology plan projects | 795,000.00 | Other income | 795,000.00 |
| Strategic emerging industry development funds (recognized by the National Enterprise Technology Center) | 1,000,000.00 | Other income | 1,000,000.00 |
| Talent grants | 647,650.00 | Other income | 647,650.00 |
| Intellectual property project subsidies | 35,600.00 | Other income | 35,600.00 |
| 2018 invention patent annual fee grants | 720.00 | Other income | 720.00 |
| 2018 technology transaction post grants | 59,000.00 | Other income | 59,000.00 |
| 2019 “Going Global” project grants | 178,500.00 | Other income | 178,500.00 |
| Enterprise R&D post-grants | 892,800.00 | Other income | 892,800.00 |
| Subsidies for resumption of work and epidemic response supplies | 1,144,872.00 | Other income | 1,144,872.00 |
| High-tech Enterprise Award | 100,000.00 | Other income | 100,000.00 |
| Construction fund for slope protection project in Guang'an High-tech Zone | 30,000.00 | Other income | 30,000.00 |
| Statistical funding subsidies granted from Economic and Information Bureau | 86,000.00 | Other income | 86,000.00 |
| 2020 Industrial Special Fund Subsidies | 697,900.00 | Other income | 697,900.00 |
| “2-year exemption, 3-year collection of corporate income tax by half” government subsidies | 1,347,700.00 | Other income | 1,347,700.00 |
| Premium investment project award on the " Leaderboard" of New District Industrial Economy | 50,000.00 | Other income | 50,000.00 |
| High-tech enterprise grants | 400,000.00 | Other income | 400,000.00 |
| 2019 pollution source monitoring system operation and maintenance subsidies | 60,000.00 | Other income | 60,000.00 |
| Stable employment subsidies | 296,701.24 | Non-operating income | 296,701.24 |
| Zhejiang Cloud-based Benchmark Enterprise | 100,000.00 | Non-operating income | 100,000.00 |
Ningbo Tuopu Group Co., Ltd Annual Report 2020
| Epidemic response subsidies for foreign trade enterprise | 500,000.00 | Non-operating income | 500,000.00 |
| "Two direct subsidies" for small and micro enterprises | 20,000.00 | Non-operating income | 20,000.00 |
| Business cultivation incentives from Shanxi Finance Bureau | 10,000.00 | Non-operating income | 10,000.00 |
| Information and industrialization management system certification | 283,500.00 | Non-operating income | 283,500.00 |
| 2019 invention patents | 5,000.00 | Non-operating income | 5,000.00 |
| Total | 266,168,814.82 | 34,350,267.41 |
Ningbo Tuopu Group Co., Ltd Annual Report 2020
4. Disposal of subsidiaries
Whether there is a situation where a single disposal of the investment in the subsidiary will immediately lead to loss of control
□Applicable √Non-applicable
Other Notes:
□Applicable √Non-applicable
5. Changes in the scope of consolidation due to other reasons
Notes to changes in the scope of consolidation due to other reasons (e.g.: incorporated new subsidiaries, subsidiaries on liquidation) and relevant conditions:
√Applicable □Non-applicable
1. Two combined entities were added during the reporting period, due to:
The Company incorporated Ningbo Tuopu Chassis System Co., Ltd. and Tuopu Electric Vehicle Thermal Management System (Ningbo) Co., Ltd., which wereincluded into the scope of consolidation from the date of establishment.
2. Two combined entities were decreased during the reporting period, due to:
The Company struke off its subsidiaries Qingdao Maigao Auto Parts Co., Ltd. and Ningbo Tuopu Drive Technology Co., Ltd. in this period, which wereexcluded from the scope of consolidation fromthe date of strike-off.
6. Others
□Applicable √Non-applicable
Ningbo Tuopu Group Co., Ltd Annual Report 2020
IX. Equity in Other Entities
1. Equity in Subsidiaries
(1). Composition of the group
√Applicable □Non-applicable
| Name of Subsidiary | Principal Business Site | Registered Address | Nature of Business | Percentage of Shares (%) | Method of Acquisition | |
| Direct | Indirect | |||||
| Tuopu Imp&Exp. | Ningbo | Ningbo | Trading | 100.00 | Business combination under the same control | |
| Tuopu Parts | Ningbo | Ningbo | Trading | 100.00 | Business combination under the same control | |
| Tuopu Acoustics Vibration | Ningbo | Ningbo | Trading | 100.00 | Business combination under the same control | |
| Yantai Tuopu | Yantai | Yantai | Manufacturing | 100.00 | Business combination under the same control | |
| Liuzhou Tuopu | Liuzhou | Liuzhou | Manufacturing | 100.00 | Business combination under the same control | |
| Shenyang Tuopu | Shenyang | Shenyang | Manufacturing | 100.00 | Establishment | |
| Tuopu Intelligent Brake | Ningbo | Ningbo | Manufacturing | 100.00 | Establishment | |
| Tuopu North American | Canada | Canada | Trading | 51.00 | Business combination not under the same control | |
| Ningbo Qianhui | Ninghai | Ninghai | Manufacturing | 51.00 | Business combination not under the same control | |
| Tuopu North American USA Limited, INC | USA | USA | Service | 51.00 | Establishment | |
| Sichuan Tuopu | Lingshui | Lingshui | Manufacturing | 100.00 | Establishment | |
| Wuhan Tuopu | Wuhan | Wuhan | Manufacturing | 100.00 | Establishment | |
| Pinghu Tuopu | Jiaxing | Jiaxing | Manufacturing | 100.00 | Establishment | |
| Shanghai Towin | Shanghai | Shanghai | Manufacturing | 100.00 | Establishment | |
| Tuopu Industrial Automation | Ningbo | Ningbo | Manufacturing | 100.00 | Establishment | |
| Tuopu Investment | Ningbo | Ningbo | Investment | 100.00 | Establishment | |
Ningbo Tuopu Group Co., Ltd Annual Report 2020
| Yuxiang E-commerce | Ningbo | Ningbo | Service | 100.00 | Establishment | |
| Tuopu International | Hong Kong | Hong Kong | Investment | 100.00 | Establishment | |
| Baoji Tuopu | Baoji | Baoji | Manufacturing | 100.00 | Establishment | |
| Taizhou Tuopu | Linhai | Linhai | Manufacturing | 100.00 | Establishment | |
| Tuopu Mechatronic System | Ningbo | Ningbo | Manufacturing | 100.00 | Establishment | |
| Tuopu Brasil | Brasil | Brasil | Manufacturing | 99.96 | 0.04 | Establishment |
| Tuopu Sweden | Sweden | Sweden | R&D | 100.00 | Establishment | |
| Jinzhong Tuopu | Jinzhong | Jinzhong | Manufacturing | 100.00 | Establishment | |
| Shenzhen Towin | Shenzhen | Shenzhen | Manufacturing | 100.00 | Establishment | |
| Zhejiang Towin | Jinhua | Jinhua | Manufacturing | 100.00 | Business combination not under the same control | |
| Sichuan Maigao | Suining | Suining | Manufacturing | 100.00 | Business combination not under the same control | |
| Hunan Tuopu | Xiangtan | Xiangtan | Manufacturing | 100.00 | Establishment | |
| TUOPU (MALAYSIA) SDN.BHD. | Malaysia | Malaysia | Manufacturing | 100.00 | Establishment | |
| Tuopu USA, LLC | USA | USA | Trading | 100.00 | Establishment | |
| Tuopu Chassis | Ningbo | Ningbo | Manufacturing | 100.00 | Establishment | |
| Tuopu Thermal Management | Ningbo | Ningbo | Manufacturing | 100.00 | Establishment |
| Name of Subsidiary | Percentage of shares held by minority shareholders | Profit and loss attributable to minority shareholders in the current period | Dividends declared to minority shareholders in the current period | Balance of minority shareholders' equity at the end of the period |
| Tuopu North American USA Limited, INC | 49.00% | -398,125.85 | -1,543,869.72 |
Ningbo Tuopu Group Co., Ltd Annual Report 2020
Notes to the percentage of shares held by minority shareholder that is different from the percentage ofvoting rights:
□Applicable √Non-applicable
Other Notes:
□Applicable √Non-applicable
Ningbo Tuopu Group Co., Ltd Annual Report 2020
(3). Main financial information of important non-wholly-owned subsidiaries
√Applicable □Non-applicable
Unit: Yuan Currency: RMB
| Name of subsidiary | Balance at the end of the period | Balance at the beginning of the period | ||||||||||
| Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total Liabilities | Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total Liabilities | |
| Tuopu North American USA Limited, INC | 17,873,744.68 | 6,467,320.70 | 24,341,065.38 | 27,491,819.92 | 27,491,819.92 | 86,433,797.07 | 5,105,967.08 | 91,539,764.15 | 93,870,271.64 | 93,870,271.64 | ||
| Name of Subsidiary | Amount incurred in the current period | Amount incurred in previous period | ||||||
| Operating income | Net profit | Total comprehensive income | Cash flow from operating activities | Operating income | Net profit | Total comprehensive income | Cash flow from operating activities | |
| Tuopu North American USA Limited, INC | 394,096,953.97 | -812,501.74 | -812,501.74 | -6,673,583.68 | 422,562,875.82 | 4,729,398.22 | 4,950,627.86 | 9,022,087.34 |
Ningbo Tuopu Group Co., Ltd Annual Report 2020
(4). Significant restrictions on the use of group assets and the settlement of group debts
□Applicable √Non-applicable
(5). Financial support or other support provided to structured entities included in the scope ofconsolidated financial statements
□Applicable √Non-applicable
Other Notes:
□Applicable √Non-applicable
2. Transactions leading to a change in the share of owner's equity in the subsidiary and thecontrol over the subsidiary remains
□Applicable √Non-applicable
3. Rights and interests in joint ventures or associates
□Applicable √Non-applicable
(1). Important joint ventures or associates
√Applicable □Non-applicable
Unit: Yuan Currency: RMB
| Name of joint venture or associate | Principal Business Site | Registered Address | Business Nature | Percentage of Shares Held (%) | Accounting treatment of investment in joint ventures or associate | |
| Direct | Indirect | |||||
| Tuopu Electrical Appliances | Ningbo | Ningbo | Manufacturing | 50.00 | Equity method | |
| Ningbo Borgers | Ningbo | Ningbo | Manufacturing | 50.00 | Equity method | |
| Antolin Tuopu | Chongqing | Chongqing | Manufacturing | 39.00 | Equity method | |
| Balance at the end of the period/Amount incurred in the current period | Balance at the beginning of the period/Amount incurred in previous period | |||
| Tuopu Electrical Appliances | Ningbo Borgers | Tuopu Electrical Appliances | Ningbo Borgers | |
| Current assets | 138,270,376.94 | 195,623,586.03 | 118,735,688.53 | 160,188,647.78 |
| Including: cash and cash equivalents | 21,987,735.55 | 37,219,502.34 | 20,725,262.95 | 15,455,285.23 |
| Non-current assets | 36,800,692.85 | 33,719,670.26 | 39,174,903.00 | 38,287,224.08 |
| Total assets | 175,071,069.79 | 229,343,256.29 | 157,910,591.53 | 198,475,871.86 |
| Current liabilities | 49,632,204.32 | 73,608,535.10 | 47,230,496.81 | 74,005,621.65 |
| Non-current liabilities | ||||
| Total liabilities | 49,632,204.32 | 73,608,535.10 | 47,230,496.81 | 74,005,621.65 |
| Minority shareholders' equity | ||||
| Equity attributable to shareholders of the parent company | 125,438,865.47 | 155,734,721.19 | 110,680,094.72 | 124,470,250.21 |
| Share of net assets calculated at the percentage of shares held | 62,719,432.74 | 77,867,360.60 | 55,340,047.36 | 62,235,125.11 |
| Adjusted events | -143,018.70 | -785,497.31 | -211,832.55 | -2,704,306.72 |
| --Goodwill | ||||
Ningbo Tuopu Group Co., Ltd Annual Report 2020
| --Unrealized profits from internal transactions | -143,018.70 | -785,497.31 | -211,832.55 | -2,704,306.72 |
| - -Others | ||||
| Book value of equity investment in joint ventures | 62,576,414.04 | 77,081,863.29 | 55,128,214.81 | 59,530,818.39 |
| Fair value of equity investment in joint ventures with public offers | ||||
| Operating income | 108,952,145.74 | 401,650,158.77 | 114,834,878.54 | 415,941,250.33 |
| Financial expenses | -379,571.01 | 78,053.73 | -332,604.61 | 460,535.38 |
| Income tax expense | 1,757,999.77 | 1,083,664.74 | 2,227,985.94 | 7,646,950.43 |
| Net profit | 14,758,770.75 | 31,264,470.98 | 16,818,130.01 | 32,815,829.76 |
| Net profit from discontinued operations | ||||
| Other comprehensive income | ||||
| Total comprehensive income | 14,758,770.75 | 31,264,470.98 | 16,818,130.01 | 32,815,829.76 |
| Dividends received from joint ventures in this year |
| Balance at the end of the period/Amount incurred in the current period | Balance at the beginning of the period/Amount incurred in previous period | |||
| Antolin Tuopu | Antolin Tuopu | |||
| Current assets | 74,131,960.92 | 92,197,475.73 | ||
| Non-current assets | 6,611,365.37 | 10,122,468.68 | ||
| Total assets | 80,743,326.29 | 102,319,944.41 | ||
| Current liabilities | 53,467,156.43 | 75,250,926.16 | ||
| Non-current liabilities | ||||
| Total Liabilities | 53,467,156.43 | 75,250,926.16 | ||
| Minority shareholders' equity | ||||
| Equity attributable to shareholders of the parent company | 27,276,169.86 | 27,069,018.25 | ||
| Share of net assets calculated by the percentage of shares held | 10,637,706.25 | 10,556,917.12 | ||
| Adjusted events | ||||
| --Goodwill | ||||
| --Unrealized profits from internal transactions | ||||
| --Others | ||||
| Book value of equity investment in associates | 10,637,706.25 | 10,556,917.12 | ||
| Fair value of equity investment in associates with public offers | ||||
| Operating income | 115,226,112.33 | 115,671,649.03 | ||
| Net profit | 207,151.61 | 285,664.43 | ||
| Net profit from discontinued operations | ||||
| Other comprehensive income | ||||
Ningbo Tuopu Group Co., Ltd Annual Report 2020
| Total comprehensive income | 207,151.61 | 285,664.43 | ||
| Dividends received from associates in this year |
Ningbo Tuopu Group Co., Ltd Annual Report 2020
The credit risk exposed to the Company mainly arises from monetary funds, notes receivable,accounts receivable, accounts receivable financing, other receivables, as well as those debt instrumentinvestments and derivative financial assets that are not included in the scope of impairment assessmentand are measured at fair value and whose changes are included in the current profit and loss. On thebalance sheet date, the book value of the Company's financial assets has represented its maximum creditrisk exposure.
The monetary funds owned by the Company are mainly bank deposits deposited in well-reputatedstate-owned banks with high credit ratings and other large and medium-sized listed banks. In the opinionof the Company, there is no significant credit risk, and there will be almost no critical loss caused bybank defaults.
The Company lays down relevant policies to control credit risk exposure in respect of notesreceivable, accounts receivable, financing receivables and other receivables. The Company assesses thecredit profile of each customer and defines the credit term based on its financial standing, the possibilityof obtaining guarantees from a third party, credit record and other factors such as current marketcondition. The Company will monitor the credit record of each customer at regular intervals. For thosefound with poor credit record, the Company will maintain its overall credit risk to the extent controllableby written demand, shortening or cancellation of credit term.
(2) Liquidity risk
Liquidity risk refers to the risk of a shortage of funds when an enterprise fulfills its obligation ofsettlement by cash or other financial assets.
The Company's policy is to ensure that there is sufficient cash to repay the liabilities due. Theliquidity risk is under the concentrated control of the Company's Financial Department. Throughmonitoring the balance of cash and securities cashable at any time and rolling forecasting the cash flowin the next 12 months, the Financial Department ensures that the Company has sufficient funds to repayits debts under all reasonable predictions. And it will continue to monitor whether the Companycomplies with the provisions of the borrowing agreement and obtains commitments from major financialinstitutions to provide sufficient reserve funds to meet its funding needs, whether short term or longterm.
(3) Market risk
The market risk of financial instruments refers to the risk of fluctuation at fair value of financialinstruments or future cash flows with the change of market prices, including exchange rate risk, interestrate risk and other price risks.
1. Interest rate risk
The interest rate risk refers to the risk in which the fair value or future cash flow of financialinstruments changes due to the change of market interest rate.
Interest-bearing financial instruments applicable to fixed interest rates and floating interest ratesbring the Company up to fair value interest rate risk and cash flow interest rate risk respectively. TheCompany ascertains the ratio of fixed interest rates to floating interest rate instruments based on themarket environment, and maintains an appropriate portfolio of fixed and floating interest rateinstruments at regular intervals. If necessary, the Company will adopt interest rate swap instruments tohedge interest rate risk.
On December 31, 2020, if other variables remain the same, the borrowing interest rate calculatedby floating interest rate rises or falls by 100 base points, the Company's net profit will decrease orincrease by RMB 4,003,788.89. In the opinion of the management,100 base points can reasonably reflectthe reasonable range of possible changes in interest rates in the next year.
2. Exchange rate risk
Exchange rate risk refers to the risk that the fair value of financial instruments or future cash flowswill fluctuate due to changes in foreign exchange rates.
The Company will try its best to match the revenues with the expenses in foreign currency, tolower the exchange rate risk. In addition, the Company may also sign forward foreign exchangecontracts or currency swap contracts to avoid exchange rate risks. In the current period and the previousperiod, the company did not sign any forward foreign exchange contracts or currency swap contracts.
The exchange rate risk faced with by the Company is mainly from financial assets and liabilities inUSD. The amounts of assets and liabilities in foreign currencies and converted into RMB are presentedas below:
| Item | Balance at the end of the period | Balance at the beginning of the year | ||||
| US | Other | Total | US | Other foreign | Total | |
Ningbo Tuopu Group Co., Ltd Annual Report 2020
| dollars | foreign currencies | dollars | currencies | |||
| Monetary funds | 32,195,685.40 | 28,698,091.63 | 60,893,777.03 | 22,817,284.07 | 8,210,455.99 | 31,027,740.06 |
| Accounts receivable | 210,244,792.96 | 112,742,504.75 | 322,987,297.71 | 122,207,238.03 | 98,880,833.02 | 221,088,071.05 |
| Accounts payable | 39,794,482.93 | 35,476,823.21 | 75,271,306.14 | 11,245,861.82 | 99,380,742.65 | 110,626,604.48 |
| Total | 282,234,961.29 | 176,917,419.59 | 459,152,380.88 | 156,270,383.92 | 206,472,031.66 | 362,742,415.59 |
| Item | Fair value at the end of the period | |||
| Fair value measurement at the first-level | Fair value measurement at the second-level | Fair value measurement at the third-level | Total | |
| I. Constant measurement at fair value | ||||
| (I) Trading Financial Assets | 176,111.00 | 176,111.00 | ||
| 1. Financial assets at fair value through profit or loss in this period | 176,111.00 | 176,111.00 | ||
| (1) Investment in debt instruments | ||||
| (2) Investment in equity instrument | 176,111.00 | 176,111.00 | ||
| 3)Derivative Financial Assets | ||||
| 2. Designated financial assets that are measured at fair value and whose changes are included in the current profit and loss | ||||
| (1) Investment in debt instruments | ||||
| (2) Investment in equity instrument | ||||
| (II) Investment in Other Creditor's Rights | ||||
| (III) Investment in Other Equity Instruments | ||||
Ningbo Tuopu Group Co., Ltd Annual Report 2020
| (IV) Investment Property | ||||
| 1. Land use rights for lease | ||||
| 2. Rented buildings | ||||
| 3. Land use rights held and prepared to transfer after appreciation | ||||
| (V) Biological assets | ||||
| 1. Consumable biological assets | ||||
| 2. Productive Biological Assets | ||||
| (VI) Receivables Financing | 742,203,122.21 | 742,203,122.21 | ||
| Total assets constantly measured at fair value | 176,111.00 | 742,203,122.21 | 742,379,233.21 | |
| (VIII) Transactional financial liabilities | ||||
| 1. Financial liabilities that are measured at fair value and whose changes are included in the current profit and loss | ||||
| Including: issued trading bonds | ||||
| Derivative Financial Liabilities | ||||
| Others | ||||
| 2. Designated Financial Liabilities Measured in Fair Value with Changes Recorded into Current Profit and Loss | ||||
| Total amount of liabilities constantly measured at their fair values | ||||
| II. Non-continuous fair value measurement | ||||
| (1) Holding-for-sale assets | ||||
| Total assets that are not continuously measured at fair value | ||||
| Total liabilities not continuously measured at fair value |
Ningbo Tuopu Group Co., Ltd Annual Report 2020
4. Continuous and non-sustainable third-level fair value measurement projects, qualitative andquantitative information on valuation techniques and important parameters used
□Applicable √Non-applicable
5. Continuous third-level fair value measurement items, adjustment information between thebook value at the beginning of the period and that at the end of the period and sensitivity analysisof unobservable parameters
□Applicable √Non-applicable
6. Continuous fair value measurement items, if there is a conversion between levels occurred inthe current period, the reasons for the conversion and the policies for determining the time pointof the conversion
□Applicable √Non-applicable
7. Changes in valuation technique in the current period and reasons for the changes
□Applicable √Non-applicable
8. The fair value of financial assets and financial liabilities not measured at fair value
□Applicable √Non-applicable
9. Others
□Applicable √Non-applicable
XII. Related Parties and Related-party Transactions
1. The parent company
√Applicable □Non-applicable
Unit： Yuan Currency： HKD
| Name of parent company | Registered address | Nature of business | Registered capital | Percentage of the Company’s shares held by the parent company | Percentage of the Company’s voting rights held by the parent company |
| MECCA INTERNATIONAL HOLDING （HK） LIMITED | Hong Kong | Investment | 1,000,000.00 | 65.75 | 65.75 |
| Name of Joint Ventures or Associates | Relationship with the Company |
| Tuopu Electrical Appliances | Joint venture of the Company |
| Ningbo Borgers | Joint venture of the Company |
| Antolin Tuopu | Associate of the Company |
Ningbo Tuopu Group Co., Ltd Annual Report 2020
√Applicable □Non-applicable
4. Other Related Parties
√Applicable □Non-applicable
| Name of Other Related Party | Relationship between Other Related Party and the Company |
| Ninghai Jinsuoer Auto Parts Factory (hereinafter referred to as "Ninghai Jinsuoer") | A company controlled by the niece of the actual controller of the Company |
| Ninghai Jinsuoer Auto Parts Factory (hereinafter referred to as "Ninghai Jinsuoer") | A company controlled by the niece of the actual controller of the Company |
| Ninghai Saipu Rubber and Plastic Parts Factory (hereinafter referred to as "Ninghai Saipu") | A company controlled by the niece of the actual controller of the Company |
| Ninghai Jinxin Packaging Co., Ltd. (hereinafter referred to as "Ninghai Jinxin") | A company controlled by the young sister of the actual controller of the Company |
| Ninghai Zhonghao Plastic Products Co., Ltd. (hereinafter referred to as "Ninghai Zhonghao") | An officer’s brother-in-law holds 40% of the shares and serves as an executive director of the company |
| Ninghai Xidian Qingqing Plastic Factory (hereinafter referred to as "Ninghai Qingqing") | A company controlled by the elder sister and brother-in-law of the officer of the Company |
| Ningbo Hongke Auto Parts Co., Ltd. (hereinafter referred to as "Ningbo Hongke") | A company controlled by the niece’s husband of the actual controller of the Company |
| Ningbo Gloyel Intelligent Technology Co. Ltd. (hereinafter referred to as "Gloyel Intelligent”) | Other company controlled by the actual controller of the Company |
| Ningbo Gloyel Motor Technology Co., Ltd. (hereinafter referred to as "Ningbo Gloyel”) | Other company controlled by the actual controller of the Company |
| Related party | Related-party transaction | Amount incurred in the current period | Amount incurred in previous period |
| Ninghai Jinsuoer | Material | 11,279,423.57 | 11,977,259.01 |
| Ninghai Saipu | Material | 2,352,171.89 | 2,466,379.94 |
| Ninghai Jinxin | Material | 8,944,151.65 | 4,216,114.02 |
| Tuopu Electrical Appliances | Material | 67,985.88 | 1,307,347.51 |
| Ninghai Zhonghao | Material | 12,318,377.23 | 11,145,970.34 |
| Ninghai Qingqing | Material | 6,178,391.42 | 5,385,836.82 |
| Ningbo Borgers | Material | 11,172,984.21 | 12,901,108.60 |
| Ningbo Hongke | Material | 69,767,683.10 | 57,495,964.42 |
| Gloyel Intelligent | Equipment | 575,203.54 | 1,491,777.87 |
| Gloyel Motor | Material, equipment | 33,186,089.13 | 11,977,626.48 |
| Total | 155,842,461.62 | 120,365,385.01 |
Ningbo Tuopu Group Co., Ltd Annual Report 2020
| Related party | Content of related transaction | Amount incurred in the current period | Amount incurred in previous period |
| Tuopu Electrical Appliances | Goods, labor services, et al. | 5,173,521.78 | 5,313,812.77 |
| Ningbo Borgers | Goods, labor services, et al. | 108,487,714.27 | 108,828,334.13 |
| Antolin Tuopu | Goods, labor services, et al. | 10,605,090.50 | 90,805.25 |
| Gloyel Intelligent | Goods, labor services, et al. | 51,403.31 | 48,708.26 |
| Total | 124,317,729.86 | 114,281,660.41 |
| Name of tenant | Kind of lease assets | Rental income recognized in the current period | Rental income recognized in previous period |
| Ningbo Borgers | Houses and structures | 619,266.06 | 633,551.77 |
| Gloyel Motor | Houses and structures | 198,165.14 | 198,165.14 |
| Total | 817,431.20 | 831,716.91 |
Ningbo Tuopu Group Co., Ltd Annual Report 2020
(7). Remuneration of key management members
√Applicable □Non-applicable
Unit： Yuan Currency： RMB
| Item | Amount incurred in the current period | Amount incurred in previous period |
| Remuneration from key management members | 10,694,500.00 | 10,535,000.00 |
| Item | Related party | Balance at the end of the period | Balance at the beginning of the period | ||
| Book balance | Bad debt provision | Book balance | Bad debt provision | ||
| Accounts receivable | Ningbo Borgers | 29,293,492.21 | 1,464,674.61 | 26,408,959.54 | 1,320,447.98 |
| Accounts receivable | Tuopu Electrical Appliances | 2,638,160.39 | 131,908.02 | 2,534,988.97 | 126,749.45 |
| Accounts receivable | Antolin Tuopu | 2,326,696.22 | 116,334.81 | 102,609.93 | 5,130.50 |
| Accounts receivable | Gloyel Motor | 216,000.00 | 10,800.00 | ||
| Other non-current assets | Gloyel Intelligent | 16,200,000.00 | |||
| Item | Related party | Book balance at the end of the period | Book balance at the beginning of the period |
| Accounts payable | Ningbo Borgers | 5,202,246.00 | 11,296,473.75 |
| Accounts payable | Ninghai Jinsuoer | 5,293,108.17 | 4,467,887.02 |
| Accounts payable | Ninghai Saipu | 1,108,699.60 | 989,169.44 |
| Accounts payable | Ninghai Jinxin | 5,191,550.61 | 1,950,672.19 |
| Accounts payable | Tuopu Electrical Appliances | 160,365.20 | 812,456.00 |
| Accounts payable | Ninghai Zhonghao | 4,949,234.52 | 4,552,653.23 |
| Accounts payable | Ninghai Qingqing | 2,135,445.47 | 1,614,046.32 |
| Accounts payable | Ningbo Hongke | 35,419,299.60 | 28,377,443.19 |
| Accounts payable | Gloyel Motor | 7,111,998.16 | 2,518,944.01 |
| Accounts payable | Gloyel Intelligent | 155,500.00 |
Ningbo Tuopu Group Co., Ltd Annual Report 2020
XIII. Share-based payment
1. General situation of share-based payment
□Applicable √Non-applicable
2. Particulars of equity-settled share-based payment
□Applicable √Non-applicable
3. Particulars of cash-settled share-based payment
□Applicable √Non-applicable
4. Modification and termination of share-based payment
□Applicable √Non-applicable
5. Others
□Applicable √Non-applicable
XIV. Commitments and Contingencies
1. Important commitments
√Applicable □Non-applicable
Important external commitments, nature, and amount on the balance sheet date
(1) On 13 July 2020, the Company signed a loan contract with the Export-Import Bank of ChinaNingbo Branch, with the granted credit line at RMB 210 million, under the loan contract number (2020)Jin Chu Yin (Yong Xin He) No. 1-061, the length of maturity of short-term loans is up to 24 months, therevolving use of credit loans is allowed, with the length of each sum up to 12 months. The form ofguarantee is setting houses and structures on mortgage, under the guarantee contract number (2020) JinChu Yin (Yong Zui Xin Di) No. 1-004. As of December 31, 2020, the short-term loan balance under thecontrtact is RMB 210 million, the original value and net value of properties on mortgage is RMB118,839,780.32 and RMB 47,372,168.16 respectively; the original value and net value of land onmortgage is RMB 10,659,462.00 and RMB 6,804,936.8 respectively.
(1) On 27 August 2020, the Company signed a loan contract with the Export-Import Bank ofChina Ningbo Branch, with the granted credit line at RMB 190 million, under the loan contract number(2020) Jin Chu Yin (Yong Xin He) No. 1-068, the length of maturity of short-term loans is up to 24months, the revolving use of credit loans is allowed, with the length of each sum up to 12 months. Theform of guarantee is setting houses and structures on mortgage, under the guarantee contract number(2020) Jin Chu Yin (Yong Zui Xin Di) No. 1-004. As of December 31, 2020, the short-term loan balanceunder the contrtact is RMB 190 million, the original value and net value of properties on mortgage isRMB 118,839,780.32 and RMB 47,372,168.16 respectively; the original value and net value of land onmortgage is RMB 10,659,462.00 and RMB 6,804,936.88 respectively.
(3) On April 18, 2016, the Company signed the state-owned construction land use rightsassignment contract No. 3302062016A21006 with Ningbo Bureau of Land and Resources, and signedthe industrial land investment agreement with Administration Committee of Ningbo Economic &Technological Development Zone (NETD). Under the said industrial land investment agreement, if theCompany fails to pay taxes at RMB 20.00/mu in any year within the period from October 31, 2019 toOctober 31, 2022, it must pay RMB 5 million as penalty to Ningbo Economic & TechnologicalDevelopment Zone (NETD).
On July 21, 2016, the Company signed the "Irrevocable Bank Guarantee" at the maximum sum ofRMB 5 million with Bank of China Ningbo Branch in the beneficiary of Administration Committee ofNingbo Economic & Technological Development Zone (NETD), under the bank guarantee numberGC1901316000107, with the term of bank guarantee effective from 1 May 2022 to 30 April 2023. Thebank guarantee specifies that the Company must pay a penalty up to RMB 5 million to AdministrationCommittee of Ningbo Economic & Technological Development Zone (NETD), upon the time in whichthe Bank of China Ningbo Branch receives the original written notice of notice in printed form and theproof of default from Administration Committee of Ningbo Economic & Technological DevelopmentZone (NETD).
(4) Tuopu Parts signed the note pool cooperation agreement 33100000 Zhe Shang Piao Chi Zi2017 No.01470, the asset pool cooperation agreement 33100000 Zhe Shang Zi Chan Chi Zi 2017No.01470, and the asset pool pledge guarantee contract 33100000 Zhe Shang Zi Chan Chi Zi 2017No.01471 with China Zheshang Bank Beilun Branch. As of December 31, 2020, there were bank
Ningbo Tuopu Group Co., Ltd Annual Report 2020
acceptance notes in a sum of RMB 497,822,268.70 under pledge and accordingly, the notes payable in asum of RMB 492,826.372.62 were issued.
(5) Tuopu Acoustics Vibration signed the note pool cooperation agreement 33100000 Zhe ShangPiao Chi Zi 2017 No.01472, the asset pool cooperation agreement 33100000 Zhe Shang Zi Chan Chi Zi2017 No.01472, and the asset pool pledge guarantee contract 33100000 Zhe Shang Zi Chan Chi Zi 2017No.01473 with China Zheshang Bank Beilun Branch. As of December 31, 2020, there were bankacceptance notes in a sum of RMB 296,225,046.21 under pledge and accordingly, the notes payable in asum of RMB 363,014,210.16 were issued.
(6) On July 5, 2018, Tuopu Parts signed the note pool cooperation and note pledge agreement05101PC20188002 with Bank of Ningbo Beilun branch, and 7 November 2018, signed the additionalnote pool cooperation and note pledge agreement 05101PC20188002 with Bank of Ningbo Beilunbranch. As of December 31st, 2020, there were bank acceptance notes in a sum of RMB 94,235,731.30under pledge and accordingly, the notes payable in a sum of RMB 60,772,323.25 were issued.
(7) Tuopu Intelligent Brake signed the note pool cooperation agreement 9411202000000006 andthe maximum pledge contract ZZ9411202000000006 with SPDB Ningbo Development ZoneSub-branch. As of December 31st, 2020, the bank acceptance notes in a sum of RMB 19,150,000.00were put under pledge and the notes payable in a sum of RMB 10,258,954.96 were issued.
(8) Ningbo Qianhui signed the maximum pledge contract 06001PC20198005 with Bank ofNingbo Ninghai Branch. As of December 31, 2020, there were bank acceptance notes in a sum of RMB7,378,352.87 under pledge and a part of notes receivable were discharged and converted to the bankdeposits under pledge in a sum of RMB 3,085,111.32 upon the maturity and accordingly, the notespayable in a sum of RMB 9,768,277.75 were issued.
2. Contingencies
(1). Important contingencies existing on the balance sheet date
□Applicable √Non-applicable
(2). Even if the Company has no important contingencies to be disclosed, also state:
□Applicable √Non-applicable
3. Others
□Applicable √Non-applicable
XV. Events after the Balance Sheet Date
1. Important non-adjusting events
□Applicable √Non-applicable
2. Profit distribution
√Applicable □Non-applicable
Unit： Yuan Currency： RMB
| Proposed distribution of profits or dividends | 189,552,010.38 |
| Profits or dividends declared after deliberation and approval | 189,552,010.38 |
Ningbo Tuopu Group Co., Ltd Annual Report 2020
4. Notes to Other Events after the Balance Sheet Date
□Applicable √Non-applicable
VI. Other Significant Events
1. Correction of previous accounting errors
(1). Retrospective restatement
□Applicable √Non-applicable
(2). Prospective application
□Applicable √Non-applicable
2. Debt restructuring
□Applicable √Non-applicable
3. Replacement of assets
(1). Exchange of non-monetary assets
□Applicable √Non-applicable
(2). Exchange of other assets
□Applicable √Non-applicable
4. Annuity plan
□Applicable √Non-applicable
5. Discontinuing operation
□Applicable √Non-applicable
6. Segment information
(1). Determination basis and accounting policies of the reportable segment
□Applicable √Non-applicable
(2). Financial information of the reportable segment
□Applicable √Non-applicable
(3). If the Company has no reportable segments or cannot disclose the total assets and totalliabilities of individual reportable segment, state the reason
□Applicable √Non-applicable
(4). Other notes
□Applicable √Non-applicable
7. Other significant transactions and event that have an impact on investors' decisions
□Applicable √Non-applicable
8. Others
□Applicable √Non-applicable
XVII. Notes to the Main Items of the Financial Statements of the Parent Company
1. Accounts receivable
(1). Disclosure by age
√Applicable □Non-applicable
Unit： Yuan Currency： RMB
| Aging | Book balance at the end of the period |
| Within 1 year | |
| Including: sub-items within 1 year | |
| Within 1 year | 1,738,258,183.77 |
| Subtotal within 1 year | 1,738,258,183.77 |
| 1 to 2 years | 152,316,371.05 |
| 2-3 years | 75,010,434.91 |
| Over 3 years | |
| 3 to 4 years | |
| 4 to 5 years | |
Ningbo Tuopu Group Co., Ltd Annual Report 2020
| Over 5 years | 323,215.01 |
| Bad debt provision | -124,970,891.78 |
| Total | 1,840,937,312.96 |
Ningbo Tuopu Group Co., Ltd Annual Report 2020
(2). Categorical disclosure by provision for bad debts
√Applicable □Non-applicable
Unit： Yuan Currency： RMB
| Category | Balance at the End of the Period | Balance at the Beginning of the Period | ||||||||
| Book Balance | Bad Debt Provision | Book Value | Book Balance | Bad Debt Provision | Book Value | |||||
| Amount | Percentage (%) | Amount | Accrued Proportion (%) | Amount | Percentage (%) | Amount | Accrued Proportion (%) | |||
| Bad debt provision accrued based on single item | ||||||||||
| Including: | ||||||||||
| Bad debt provision accrued based on single item | 1,965,908,204.74 | 100.00 | 124,970,891.78 | 6.36 | 1,840,937,312.96 | 1,330,943,270.95 | 100.00 | 79,921,671.01 | 6.00 | 1,251,021,599.94 |
| Including: | ||||||||||
| Bad debt provision accrued based on aging combinations | 1,965,908,204.74 | 100.00 | 124,970,891.78 | 6.36 | 1,840,937,312.96 | 1,330,943,270.95 | 100.00 | 79,921,671.01 | 6.00 | 1,251,021,599.94 |
| Total | 1,965,908,204.74 | / | 124,970,891.78 | / | 1,840,937,312.96 | 1,330,943,270.95 | / | 79,921,671.01 | / | 1,251,021,599.94 |
Ningbo Tuopu Group Co., Ltd Annual Report 2020
Bad debt provision accrued based on single item:
□Applicable √Non-applicable
Bad debt provision accrued based on combinations
√Applicable □Non-applicable
Accrued items based on combinations: accounts receivable with bad debt provision by aging portfolio
Unit： Yuan Currency： RMB
| Name | Balance at the End of the Period | ||
| Accounts Receivable | Bad Debt Provision | Accrued Proportion(%) | |
| Within 1 year | 1,738,258,183.77 | 86,912,909.19 | 5.00 |
| 1 to 2 years | 152,316,371.05 | 15,231,637.11 | 10.00 |
| 2 to 3 years | 75,010,434.91 | 22,503,130.47 | 30.00 |
| 3 to 5 years | 100.00 | ||
| Over 5 years | 323,215.01 | 323,215.01 | 100.00 |
| Total | 1,965,908,204.74 | 124,970,891.78 | |
| Category | Balance at the Beginning of the Period | Amount Changed in the Current Period | Balance at the End of the Period | |||
| Provision | Withdrawal or Reversal | Write-off | Other Changes | |||
| Bad debt provision accrued based on combinations | 79,921,671.01 | 45,049,220.77 | 124,970,891.78 | |||
| Total | 79,921,671.01 | 45,049,220.77 | 124,970,891.78 | |||
| Name of Entity | Balance at the End of the Period | ||
| Accounts Receivable | Proportion in Total Accounts Receivable (%) | Bad Debt Provision | |
| No.1 | 423,965,566.97 | 21.57 | 21,198,278.35 |
| No.2 | 379,908,659.48 | 19.32 | 18,995,432.97 |
| No.3 | 361,078,264.66 | 18.37 | 20,217,547.57 |
Ningbo Tuopu Group Co., Ltd Annual Report 2020
| Name of Entity | Balance at the End of the Period | ||
| Accounts Receivable | Proportion in Total Accounts Receivable (%) | Bad Debt Provision | |
| No.4 | 216,857,080.61 | 11.03 | 10,842,854.03 |
| No.5 | 142,887,408.14 | 7.27 | 9,663,608.14 |
| Total | 1,524,696,979.86 | 77.56 | 80,917,721.06 |
| Item | Balance at the end of the period | Balance at the beginning of the period |
| Interest receivable | ||
| Dividend receivable | ||
| Other Receivables | 76,146,034.58 | 49,355,223.60 |
| Total | 76,146,034.58 | 49,355,223.60 |
Ningbo Tuopu Group Co., Ltd Annual Report 2020
applicable
(7). Particulars of bad debt provision
□Applicable √Non-applicable
Other Notes:
□Applicable √Non-applicable
Other Receivables
(1). Disclosure by aging
√Applicable □Non-applicable
Unit： Yuan Currency： RMB
| Aging | Book Balance at the End of the Period |
| Within 1 year | |
| Including: sub-item within 1 year | |
| Within 1 year | 50,728,275.68 |
| Subtotal within 1 year | 50,728,275.68 |
| 1 to 2 years | 20,371,000.00 |
| 2 to 3 years | 11,745,400.00 |
| Over 3 years | 3,496,231.71 |
| 3 to 4 years | |
| 4 to 5 years | |
| Over 5 years | 205,800.00 |
| Provision for bad debts | -10,400,672.81 |
| Total | 76,146,034.58 |
| Nature of Funds | Book balance at the end of the period | Book balance at the beginning of the period |
| Temporary borrowings | 84,615,981.71 | 50,568,981.71 |
| Petty cash funds | 88,700.00 | 84,000.00 |
| Security deposit | 19,250.00 | 13,948,225.00 |
| Others | 1,822,775.68 | 1,485,232.55 |
| Total | 86,546,707.39 | 66,086,439.26 |
| Bad Debt Provision | Phase 1 | Phase 2 | Phase 3 | Total |
| Expected credit loss in the next 12 months | Expected credit loss throughout the duration (no credit impairment occurred) | Expected credit loss throughout the duration (credit impairment has occurred) | ||
| Balance on January 1, 2020 | 16,731,215.66 | 16,731,215.66 | ||
| Balance of the current period on January 1, 2020 | ||||
| --Transfer to Phase 2 | ||||
| --Transfer to |
Ningbo Tuopu Group Co., Ltd Annual Report 2020
| Phase 3 | ||||
| --Transfer to Phase 2 | ||||
| --Transfer to Phase 1 | ||||
| Provision made in the current period | ||||
| Reversal in the current period | 6,330,542.85 | 6,330,542.85 | ||
| Write-off in the current period | ||||
| Write-off in the current period | ||||
| Other changes | ||||
| Balance on December 31, 2020 | 10,400,672.81 | 10,400,672.81 |
| Category | Balance at the Beginning of the Period | Amount Changed in the Current Period | Balance at the End of the Period | |||
| Provision | Withdrawal or Reversal | Write-off | Other Changes | |||
| Accounts receivable with bad debt accrued based on aging portfolio | 16,731,215.66 | 6,330,542.85 | 10,400,672.81 | |||
| Total | 16,731,215.66 | 6,330,542.85 | 10,400,672.81 | |||
| Name of Unit | Nature of funds | Balance at the end of the period | Aging | Proportion in total other receivables at the end of the period (%) | Balance of bad debt provision at the end of the period |
| Shanghai Towin | Temporary borrowings | 53,115,981.71 | 1 to 4 years | 61.37 | 8,194,589.03 |
| Hunan Tuopu | Temporary borrowings | 31,500,000.00 | Within 2 years | 36.40 | 1,622,500.00 |
Ningbo Tuopu Group Co., Ltd Annual Report 2020
| Liu Hongsong | Other | 455,000.00 | Within 2 years | 0.53 | 200,100.00 |
| Li Dongmei | Other | 255,800.00 | Within 1 year | 0.30 | 229,800.00 |
| Xu Longhui | Other | 153,500.00 | 1 to 2 years | 0.18 | 14,375.00 |
| Total | / | 85,480,281.71 | / | 98.78 | 10,261,364.03 |
Ningbo Tuopu Group Co., Ltd Annual Report 2020
3. Long-term Equity Investment
√Applicable □Non-applicable
Unit： Yuan Currency： RMB
| Item | Balance at the end of the period | Balance at the beginning of the period | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Investments in subsidiaries | 3,921,478,960.48 | 3,921,478,960.48 | 3,311,887,755.92 | 3,311,887,755.92 | ||
| Investments in joint ventures and associates | 150,295,983.58 | 150,295,983.58 | 125,215,950.32 | 125,215,950.32 | ||
| Total | 4,071,774,944.06 | 4,071,774,944.06 | 3,437,103,706.24 | 3,437,103,706.24 | ||
| Invested Entity | Balance at the beginning of the period | Increased in current period | Decreased in current period | Balance at the end of the period | Impairment provision accrued in the current period | Balance at the end of the period of impairment provision |
| Tuopu Imp&Exp. | 178,081,940.48 | 178,081,940.48 | ||||
| Tuopu Parts | 196,984,594.91 | 196,984,594.91 | ||||
| Tuopu Acoustics Vibration | 184,685,004.03 | 184,685,004.03 | ||||
| Yantai Tuopu | 62,800,000.00 | 62,800,000.00 | ||||
| Liuzhou Tuopu | 100,000,000.00 | 100,000,000.00 | ||||
| Shenyang Tuopu | 10,000,000.00 | 10,000,000.00 | ||||
| Tuopu Intelligent Brake | 20,000,000.00 | 20,000,000.00 | ||||
| Ningbo Qianhui | 31,210,000.00 | 31,210,000.00 | ||||
| Sichuan Tuopu | 20,000,000.00 | 20,000,000.00 | ||||
| Qingdao Maigao | 2,800,000.00 | 17,200,000.00 | 20,000,000.00 | |||
| Wuhan Tuopu | 150,000,000.00 | 150,000,000.00 | ||||
| Pinghu Tuopu | 208,000,000.00 | 208,000,000.00 | ||||
| Shanghai Towin | 10,000,000.00 | 10,000,000.00 | ||||
| Tuopu Industrial Automation | 17,700,000.00 | 17,700,000.00 |
Ningbo Tuopu Group Co., Ltd Annual Report 2020
| Tuopu Investment | 100,000.00 | 100,000.00 | ||||
| Yuxiang E-commerce | 3,300,000.00 | 200,000.00 | 3,500,000.00 | |||
| Qudong Technology | 6,000,000.00 | 6,000,000.00 | ||||
| Baoji Tuopu | 18,980,000.00 | 18,980,000.00 | ||||
| Taizhou Tuopu | 50,000,000.00 | 14,650,000.00 | 64,650,000.00 | |||
| Tuopu Mechatronic System | 1,031,750,000.00 | 426,050,000.00 | 1,457,800,000.00 | |||
| Tuopu Brasil | 32,623,203.41 | 32,623,203.41 | ||||
| Jinzhong Tuopu | 11,900,000.00 | 1,900,000.00 | 13,800,000.00 | |||
| Shenzhen Towin | 53,653,013.09 | 53,653,013.09 | ||||
| Zhejiang Towin | 571,320,000.00 | 571,320,000.00 | ||||
| Sichuan Maigao | 290,000,000.00 | 290,000,000.00 | ||||
| Hunan Tuopu | 50,000,000.00 | 50,000,000.00 | ||||
| Tuopu USA, LLC | 35,091,204.56 | 35,091,204.56 | ||||
| Tuopu Chassis | 107,500,000.00 | 107,500,000.00 | ||||
| Tuopu Thermal Management | 33,000,000.00 | 33,000,000.00 | ||||
| Total | 3,311,887,755.92 | 635,591,204.56 | 26,000,000.00 | 3,921,478,960.48 |
| Invested Entity | Balance at the Beginning of the Period | Decrease/Increase in the current period | Balance at the End of the Period | Balance of impairment provision at the end of the period | |||||||
| Investment Increased | Investment Decreased | Investment profit and loss recognized under the equity method | Adjustment on other comprehensive income | Other changes in equity | Cash dividends or profit declared to distribute | Provision for impairment accrued | Other | ||||
| I. Joint ventures | |||||||||||
| Tuopu Electrical Appliances | 55,128,214.81 | 7,448,199.22 | 62,576,414.03 | ||||||||
| Ningbo | 59,530,818.39 | 17,551,044.91 | 77,081,863.30 | ||||||||
Ningbo Tuopu Group Co., Ltd Annual Report 2020
| Borgers | |||||||||||
| Subtotal | 114,659,033.20 | 24,999,244.13 | 139,658,277.33 | ||||||||
| II. Associates | |||||||||||
| Antolin Tuopu | 10,556,917.12 | 80,789.13 | 10,637,706.25 | ||||||||
| Subtotal | 10,556,917.12 | 80,789.13 | 10,637,706.25 | ||||||||
| Total | 125,215,950.32 | 25,080,033.26 | 150,295,983.58 | ||||||||
Ningbo Tuopu Group Co., Ltd Annual Report 2020
4. Operating Income and Operating Cost
√Applicable □Non-applicable
Unit： Yuan Currency： RMB
| Item | Amount incurred in the current period | Amount incurred in previous period | ||
| Income | Cost | Income | Cost | |
| Main business operations | 3,596,392,949.37 | 2,699,235,104.32 | 3,260,143,299.90 | 2,382,543,990.84 |
| Other business operations | 216,195,678.50 | 135,286,014.40 | 211,308,530.65 | 138,755,303.77 |
| Total | 3,812,588,627.87 | 2,834,521,118.72 | 3,471,451,830.55 | 2,521,299,294.61 |
| Item | Amount incurred in the current period | Amount incurred in previous period |
| Long-term equity investment income measured by cost method | 150,000,000.00 | |
| Long-term equity investment income measured by equity method | 25,080,033.26 | 24,507,700.52 |
| Investment income from disposal of long-term equity investment | -12,827,681.96 | |
| Investment income of trading financial assets during the holding period | ||
| Dividend income from other equity instrument investments during the holding period | ||
| Interest income from debt investment during the holding period | ||
| Interest income from other debt investments during the holding period | ||
| Investment income from disposal of trading financial assets | ||
| Investment income from the disposal of other equity instrument investments | ||
| Investment income from disposal of debt investments | ||
| Investment income from the disposal of other debt investments | ||
| Investment income from wealth management products | 18,164,183.51 | 25,407,939.14 |
| Total | 180,416,534.81 | 49,915,639.66 |
Ningbo Tuopu Group Co., Ltd Annual Report 2020
XVIII. Additional Information
1. Current non-recurring profit and loss schedule
√Applicable □Non-applicable
Unit： Yuan Currency： RMB
| Item | Amount | Note |
| Gains and losses from disposal of non-current assets | 8,703,377.39 | |
| Approval beyond authority, or without formal approval document, or incidental tax rebates, deducts and exempts | ||
| Government subsidies included in the current profit and loss, but closely associated with the regular business operations of the Company, except for government subsidies that are consistent with national policies and continuously granted at a fixed quota or amount under certain national standard | 34,350,267.41 | XI、 VII、84 |
| Payment for the use of funds charged from non-financial enterprises that is included in current profit and loss | ||
| Income generated from the investment cost of the Company in acquiring subsidiaries, associates and joint ventures that is less than the fair value of the identifiable net assets held by the invested entity at the acquisition of investment | ||
| Gains and losses from exchange of non-monetary assets | ||
| Gains and losses from the engagement of others in investment or management | ||
| Provisions for impairment of various assets due to force majeure factors including natural disasters | ||
| Gains and losses from restructuring of debts | ||
| Expenses incurred in enterprise restructuring, including those incurred in staff placement and integration | ||
| Gains and losses from the part of transactions whose prices are clearly unfair in excess of the fair value | ||
| Net profits and losses for the current period from the beginning of the period to the date of the merger arising from a business combination under the same control | ||
| Profits and losses generated from contingent events that are unrelated to the regular business operations of the Company | ||
| Profits and losses resulting from the changes in fair value for holding trading financial assets, derivative financial assets and trading financial liabilities, derivative financial liabilities and investment income from disposal of trading financial assets, derivative financial assets, trading financial liabilities, derivative financial liabilities and other obligatory right investments, except for valid hedging businesses associated with the regular business operations of the Company | 18,164,183.51 | |
| Reversal of the receivables and contract assets depreciation reserves for separate impairment test | ||
| Gains and losses from external entrusted loans | ||
| Profits and losses generated from a change in the fair value of investment real estates that are subsequently measured by the fair value model | ||
| Impact of one-off adjustment to the current profit and loss under the requirements of taxation, accounting and other laws and regulations on the current profit and loss | ||
| Custody fee income from entrusted operations | ||
| Non-operating income and expenses other than the above | 2,813,550.60 | |
| Other gains and losses items that fit the definition of non-recurring gains and losses | ||
| Impact of income tax | -10,201,281.57 |
Ningbo Tuopu Group Co., Ltd Annual Report 2020
| Impact of minority equity | -312,026.70 | |
| Total | 53,518,070.64 |
| Profit for the reporting period | Weighted Average ROE (%) | EPS | |
| Basic EPS | Diluted EPS | ||
| Net profit attributable to common shareholders of the Company | 8.29 | 0.60 | 0.60 |
| Net profit attributable to common shareholders of the Company after deducting non-recurring gains and losses | 7.58 | 0.54 | 0.54 |
| Directory of Documents Available for Reference | Financial statements affixed with the signatures and seals of the legal representative of the Company, the officer in charge of accounting work and accounting institution |
| Directory of Documents Available for Reference | Original audit report affixed with the seal of the accounting firm and the signature and seal of CPAs |
| Directory of Documents Available for Reference | All original company documents and announcements disclosed on the website designated by CSRC during the reporting period |