Stock Code: 601689 Abbr.: Tuopu Group
Ningbo Tuopu Group Co., Ltd.
Semi-annual Report
2021
August 2021
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 thisreport shall be authentic, accurate and complete and free of any false records, misleadingstatements or material omissions, and they will bear joint and several liability for suchinformation.II. All directors attended the meeting of the Board of Directors.III. This semi-annual report has not yet been audited.IV. Jianshu Wu, a person in charge of the Company, Tieyang Hong, an officer in charge ofaccounting work and accounting institution (Accounting Officer) hereby declare and warrantthat the 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 reserve
funds into additional share capital after consideration by the Board of DirectorsNo profit distribution or conversion of public reserve funds into additional share capital is made inthis reporting periodVI. 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 decision
proceduresNoIX. Whether there are more than half of the directors who cannot guarantee the annual report
disclosed by the Company as to its authenticity, accuracy and completenessNoX. Significant risk statement
The 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 III 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 privateoffering of A-shares of the Company by issuing the “Approval on private offering of shares by NingboTuopu Group Co., Ltd.” (Zheng Jian Permit [2020] No.1982).On 23 February 2021, the Company completed this private offering of shares and go through therecording, custody and restricted sales procedures in relation to additional shares in this private offeringat the premises of China Securities Depository and Clearing Corporation Limited Shanghai Branch.In this private offering, the Company issued 47,058,823 ordinary shares at a price of RMB 42.50/share,the total amount of raised funds is RMB 1,978,417,846.74.The restricted period for the shares subscribed by the intended subjects is 6 months from the end ofthe private offering. These shares will be available for trading on August 23, 2021. In case of legalholidays or rest days, it will be postponed to the next immediately trading day.
This report is prepared in Chinese and English and if there is any disprepancy between two texts,the Chinese text shall apply.
Contents
Section I Definitions ...... 5
Section II Company Profile and Key Financial Indicators ...... 5
Section III Discussion and Analysis of Operation Conditions ...... 8
Section IV Corporate Governance ...... 23
Section V Environmental and Social Responsibility ...... 24
Section VI Significant Events ...... 32
Section VII Changes in Shares and Shareholders ...... 39
Section VIII Information about Preference Shares ...... 48
Section IX Information of Corporate Bonds ...... 48
Section X Financial Report ...... 49
| Catalogue of Files for Future Inspection | (1) Full text and extracts of this semi-annual report affixed with the signature of the company's legal representative and common seal. |
| (2) Financial statements signed and sealed by the legal representative of the company, the officer in charge of accounting work and the person in charge of the accounting institution. | |
| (3) Original and manuscript of all company documents and announcements that are disclosed on the information disclosure media designated by the company during the reporting period |
Section I Definitions
In 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, 2021 to June 30, 2021 |
| 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 | Ningbo Tuopu Group Co., Ltd. |
| 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 | Jianshu Wu |
| Security of the Board | Representative of Securities Affairs | |
| Name | Mingzhen Wang | Yuchao Gong |
| 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 |
| Change History of Registered Address | On 16 June 2020, the company address was changed from “215 Huangshan West Road, Beilun, Ningbo, Zhejiang” to “268 Yuwangshan Rd, Daqi Street, Beilun District, Ningbo, Zhejiang” |
| 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 | |
| Search index of changes during the reporting period | NA |
IV. Information Disclosure and Location
| The Media Selected by the Company for Disclosure | <Securities Times> |
| Website Designated by CSRC for Publishing Semi-annual Report | SSE website (www.sse.com.cn) |
| Location for Annual Report of the Company | Office of Board Secretary |
| Search index of changes during the reporting period | NA |
| Stock Type | Stock Exchange | Stock Abbreviation | Stock Code | Stock Abbreviation Before Change |
| A-share | Shanghai Stock Exchange | Tuopu Group | 601689 | - |
| Key Accounting Data | During this reporting period (January-June) | Figures in previous period | Increase/decrease compared with previous year (%) |
| Operating income | 4,916,747,063.20 | 2,562,015,814.84 | 91.91 |
| Net profit attributable to shareholders of the listed Company | 459,702,187.79 | 215,983,238.50 | 112.84 |
| Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses | 444,689,918.25 | 197,851,324.09 | 124.76 |
| Net cash flow generated by operational activities | 745,334,877.96 | 487,393,567.66 | 52.92 |
| End of this reporting period | End of previous year | Increase/Decrease at the end of the current year compared with the end of the previous year (%) | |
| Net assets attributable to shareholders of the listed company | 10,037,497,070.47 | 7,786,994,893.67 | 28.90 |
| Total assets | 15,616,389,881.17 | 12,115,228,519.89 | 28.90 |
| Key Financial Indicators | During this reporting period (January-June) | Figures in previous period | Increase/decrease compared with previous year (%) |
| Basic Earnings per Share (RMB/Share) | 0.42 | 0.20 | 110.00 |
| Diluted Earnings per Share (RMB/Share) | 0.42 | 0.20 | 110.00 |
| Basic Earnings per Share after deducting non-recurring gains and losses (RMB/Share) | 0.41 | 0.19 | 115.79 |
| Weighted Average ROE | 4.81 | 2.93 | Increased by 1.88% |
| Weighted Average ROE after deducting non-recurring gains and losses (%) | 4.65 | 2.68 | Increased by 1.97% |
| Non-recurring Gains and Losses Items | Amount | Note (if applicable) |
| Gains and losses from disposal of non-current assets | -1,258,747.17 | |
| 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 | 13,938,042.57 | Note X, 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 | 1,711,141.42 | |
| 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 | 3,641,696.58 | |
| Other gains and losses items that fit the definition of non-recurring gains and losses | ||
| Impact of minority equity | -56,934.88 | |
| Impact of income tax | -2,962,928.98 | |
| Total | 15,012,269.54 |
| Unit:Yuan Currency: RMB | ||||||
| Main business operations by industry | ||||||
| By industry | Operating income | Operating cost | Gross profit rate | Increase/Decrease of operating | Increase/Decrease of operating cost | Increase/Decrease of gross profit rate |
| (%) | income over the previous year (%) | over the previous year (%) | over the previous year (%) | |||||
| Automobile parts | 4,771,583,403.09 | 3,848,796,980.15 | 19.34 | 92.86 | 97.39 | Decreased by 1.85% | ||
| 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 (%) | ||
| AVS Products | 1,701,953,814.51 | 1,291,943,066.33 | 24.09 | 68.60 | 73.93 | Decreased by 2.33% | ||
| Interior trims | 1,529,285,656.54 | 1,286,788,666.00 | 15.86 | 77.02 | 80.78 | Decreased by 1.74% | ||
| Chassis products | 890,104,120.95 | 748,079,805.64 | 15.96 | 68.92 | 69.13 | Decreased by 0.10% | ||
| Mechatronics | 80,898,354.46 | 59,520,323.30 | 26.43 | 9.65 | 12.48 | Decreased by 1.84% | ||
| Thermal management system | 569,341,456.63 | 462,465,118.89 | 18.77 | NA | NA | NA | ||
| Main business operations by region | ||||||||
| By region | Operating income in the current period | Increase or decrease of operating income over the previous period (%) | ||||||
| Domestic | 3,500,559,144.09 | 98.27 | ||||||
| Overseas | 1,271,024,259.00 | 79.39 | ||||||
In the first half of 2021, as the global auto market is recovering, it is also impacted by short supplyof chips, raw material prices and rising freight rates. At present, uncertain factors cannot completelyeliminated.II．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; divisionsare subject to the horizontal flat management with sales activities standing in the core, formarket-oriented construction of the organization, pool resources and make quick response; under thepyramid organization, business units 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 has established an integrated, specific and open financialindicator system to transform officers from managers to operators and entrepreneurs.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 has prospectively programmedthe NEV track and is rolling out the "2+3" industrial mapping: automobile NVH vibration controlsystem, vehicle acoustic sets and lightweight chassis products, thermal management system, andintelligent driving system.Chassis products as one of the core in-vehicle systems decides the key performance indicators suchas controllability and stability, which is subject to technical barriers and capital thresholds. It is thepriority product developed by the world’s large automobile parts companies. Chassis products iscomposed of sub-frames, AVS products, and steering knuckles. The Company has cultivated in thissector for nearly 20 years, solved and maintained a number of key technologies and processes, andattained more favorable competitive edge. EV thermal management system comprises three modules:
cabin air conditioning system, battery thermal management system, and electronic control thermalmanagement system. The thermal management system with extraordinary features has integrated thethree modules to optimize the use of energy and solve the driving range of EV, especially the rapidcharge decay in winter and the cold region. Leveraging the electronic control and precisionmanufacturing 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, andheat exchangers. Thermal management system is an incremental project for EVs, the amount ofmounting per vehicle is RMB 6,000-8,000 and the market scale is enormously large, so more productionresources are needed. In addition, the Company has demonstrated the strength in R&D of overallsolution package, system integration and software 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,performance matching, and product calibration, which would in turn substantially reduce the R&Dworkload of carmakers and bring value added 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 market
of 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 in 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.
Under the capacity request and the forecasts, the Company currently has 1,500 mu lands underconstruction, and reached a general intention of construction as to 1,500 mu lands, which in turnguarantees 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.
III. Discussion and Analysis of Operation Conditions
In the first half of 2021, the automotive industry was impacted by several factors such as shortageof chips, skyrocketing material price, and rising freight rates. Owing to the prospective programming ofthe NEV industry, pooled efforts in the expansion of product line and customer group, and many ordersreceived, the Company maintained the fast growth rate and earned revenue at RMB 4,916,747,100, anincrease of 91.91％; its net profit attributed to the parent company was RMB 459,702,200, an increaseof 112.84%.
As the shortage of chips is expected to ease up in the second half of the year and the peak seasoncomes, coupled with the rapid release of key models from key clients, and the batch supply of new
products to FORD, RIVIAN and other new clients, it is expected that revenue and profits will maintain ahigh growth rate and the future outcome is about to release quickly in the second half of the year.In the first half of 2021, the Company will concentrate on the following tasks:
(1) Marketing and sales.
As a platform-based company accessible to many product lines, the Company has implementedTier0.5 model with success. This model features a plurality of automotive components at higher amounts,which can greatly improve efficiency and reduce costs for clients.With this model accepted by intelligent EV enterprises, the Company has established strategicpartnerships with some car makers and solicited many orders. In particular, the value of components pervehicle partnered with RIVIAN is up to RMB 11,000. The Company initiated some products such aslightweight chassis products for key models along with Chonqqing Jinkang, and initiated some productsrelated to thermal management system along with Huawei.Thanks to broad product line, R&D capacity, fast response and other integrated factors in the fieldof NEV, the Company received many orders in the first half of the year, which in turn paves the road forfast-track sustainable development in the future.
(2) New project development.
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, and is pacing up the R&D and validation of V2.0 heat pumpassemblies.
In joint development of digital QC technology partnered with some clients, the Company readilybuilt up the capacity for the volume supply of integrated heat pump assemblies, maintained thezero-defect quality level, received good reviews from clients, and paved the road for soliciting morefollow-up orders.
Lightweight chassis is a product extensively used on NEVs, the Company is equipped with sometechnologies in relation with lightweight chassis and maintains the privileged presence in the industryand first-mover advantage. The aluminum alloy one-piece vacuum casting chassis was approved byclients and supplied in batches, and the aluminum alloy casting welded chassis was approved by someclients including FORD and RIVIAN and supplied in batches.
Ongoing efforts are made to hurry in the verification and matching of intelligent brake system andsteering system, and to seek approval of clients. Ongoing efforts are made to make materials, processand equipment of dampers and vehicle acoustic sets in line with the NEV requirements.
(3) Capacity layout.
With respect to new orders, the Company has paced up the capacity layout. The Company isaccelerating the construction of Xiangtan Base, Phase II, Phase III, Phase IV, Phase V bases in NingboHangzhou Bay New Area, and the production base in Yinzhou, Ningbo, in order to meet the surgingorders. The Company set up new factories in Shanghai, Huzhou, and Xi'an in order to render betterservices to its clients.
Given the fact that the Company is receiving more orders for chassis, integrated heat pumpassemblies and interior trims, the maximum value of components per vehicle is about RMB 6,000, theCompany made further investments in Poland and accelerated the building of production capacity inorder to render better services to clients. To reduce tariffs and distribution cost, render better services toclients and support global platform project, the Company paced up the preparation for Mexican factoryat the client request, the Phase 1 project investment at USD 150 million is intended for capacity build-upof lightweight chassis, thermal management, and interior trims. If the designed capacity of the aboveproject can be reached, the Company anticipates greater economic benefits.
(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) Photovoltaic business.
The Company is highly aware of eco-friendly development and plans to construct 150MWdistributed photovoltaic power station on available roofs, which not only delivers good economicbenefits, but also contributes to carbon peak and neutrality.
Significant changes in operating conditions of the Company during the reporting period, as well asevents that significantly impact its operating conditions during the reporting period and areexpected to have a significant impact in the future
□Applicable √Non-applicable
IV. Main business operations during the reporting period
(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 current period | Amount in previous period | Change as percentage (%) |
| Operating income | 4,916,747,063.20 | 2,562,015,814.84 | 91.91 |
| Operating cost | 3,890,647,152.66 | 1,972,469,869.51 | 97.25 |
| Cost of sales | 67,811,133.02 | 48,374,902.80 | 40.18 |
| Overhead expenses | 138,616,680.48 | 100,232,074.78 | 38.30 |
| Financial expenses | -875,186.94 | 14,651,080.49 | -105.97 |
| R&D cost | 233,873,710.58 | 165,130,113.43 | 41.63 |
| Net cash flow from operating activities | 745,334,877.96 | 487,393,567.66 | 52.92 |
| Net cash flows from investing activities | -1,866,786,551.76 | -167,283,521.77 | NA |
| Net cash flow from financing activities | 2,153,875,320.02 | -227,474,369.47 | NA |
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
(3) Analysis of assets and liabilities
√Applicable □Non-applicable
1. 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 |
| Cash and bank balances | 1,822,102,703.57 | 11.67 | 787,123,646.45 | 6.50 | 131.49 | Attributed to the receipt of funds raised by private offering of shares in the current period |
| Trading financial assets | 401,276,432.56 | 2.57 | 176,111.00 | 0.00 | 227,754.27 | Attributed to the increase in bank financial management products subscribed by the Company in the current period |
| Other receivable | 51,992,724.93 | 0.33 | 31,087,166.38 | 0.26 | 67.25 | Attributed to the increase in the deposit paid in the current period |
| Construction in progress | 1,386,448,449.11 | 8.88 | 943,993,396.96 | 7.79 | 46.87 | Attributed to the increase in plants and equipment under construction in the current period |
| Right-of-use assets | 22,447,341.16 | 0.14 | NA | Attributed to the right-of-use assets recognized by the Company in accordance with the “New Lease Standards” in the current period | ||
| Other non-current assets | 559,073,830.90 | 3.58 | 296,957,402.06 | 2.45 | 88.27 | Attributed to the increase in received prepayments for construction and equipment in the current period |
| Short-term borrowings | 773,129,744.77 | 4.95 | 400,378,888.89 | 3.30 | 93.10 | Attributed to he increase in short-term bank loans in the current period |
| Taxes payable | 149,030,277.59 | 0.95 | 82,865,303.29 | 0.68 | 79.85 | Attributed to the increase in VAT and corporate income tax payable |
| Non-current | 7,333,430.63 | 0.05 | NA | Attributed to the lease liabilities due within |
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
| liabilities due within 1 year | one year recognized by the Company in accordance with the “New Lease Standards” during the current period | |||||
| Other current liabilities | 3,658,909.50 | 0.02 | 1,507,896.52 | 0.01 | 142.65 | Attributed to the increase in output tax to be written off |
| Lease liabilities | 14,138,616.74 | 0.09 | NA | Attributed to the lease liabilities recognized by the Company in accordance with the “New Lease Standards” during the current period | ||
| Capital reserve | 5,340,798,886.81 | 34.20 | 3,409,439,863.07 | 28.14 | 56.65 | Attributed to the increase in the proceeds from the private offering of shares received in the current period and the capital reserve-share premium |
2. Overseas assets
√Applicable □Non-applicable
(1) Scale of assets
Including: overseas assets RMB 555,820,112.75 (Unit: Yuan Currency: RMB), in 3.56 % of total assets.
(2) Notes to overseas assets
□Applicable √Non-applicable
3. 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 |
| Cash and bank balances | 112,805,901.59 | Margins for bank acceptance notes |
| Notes receivable | 350,653,610.60 | Pledge |
| Fixed Assets | 46,907,530.34 | Mortgage |
| Intangible Assets | 6,698,677.70 | Mortgage |
| Receivable financing | 811,941,024.18 | Pledge |
| Total | 1,329,006,744.41 | / |
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
(2) Significant non-equity investment
□Applicable √Non-applicable
ⅰ. Condition of purchased landOn January 19, 2021, Tuopu EV Thermal Management System (Ningbo) Co., Ltd., a wholly-owned subsidiary of the Company, was awarded the right to use308 mu state-owned construction land in Hangzhou Bay New Zone, Ningbo, at a consideration of RMB 61.58 million in bidding process.On February 26, 2021, Tuopu EV Thermal Management System (Ningbo) Co., Ltd., a wholly-owned subsidiary of the Company, was awarded the right to use341 mu state-owned construction land in Hangzhou Bay New Zone, Ningbo, at a consideration of RMB 68.21 million in bidding process.ⅱ. 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 Automotive Electronics 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 Automotive Electronics 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 Chassis products Module Project" as a non-public offering equity investment project in 2020. To date, the main works have |
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
| been substantially completed and it proceeds to the equipment installation. | |||||
| 2 | January 2018 | 2018-002 | Tuopu Group’s announcement on the investment intent agreement signed in Xiangtan | The Company and the Administration Committee of Xiangtan Economic and Technological Development Zone signed the "Investment and Entry Contract" in relation to Hunan Production Base Project, and prospectively constructs the interior trims project with an annual capacity of 300,000 sets and the chassis products production base project with an annual capacity of 600,000 sets in Xiangtan Economic and Technological Development Zone. | In May 2020, the Company was awarded the right to use about 210 mu state-owned construction land in Xiangtan Economic and Technological Development Zone, at a consideration of RMB 47.07 million, which is intended for implementing "Hunan Factory Lightweight Chassis products 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 interior trims 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. |
(3) Financial assets measured at fair value
□Applicable √Non-applicable
| Item | Balance at the end of the period | Note |
| Short-term financial products | 400,000,000.00 | Wealth management products |
| Equity instrument investment | 1,276,432.56 | Debt payment by customer in stocks |
| Total | 401,276,432.56 | / |
| 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 | 5,487.98 | 1,735.96 | 3,752.02 | 8,458.75 | 27.99 |
| Tuopu Imp&Exp. | 20,000.00 | 41,194.51 | 24,711.04 | 16,483.47 | 92,393.12 | 2,466.42 |
| Tuopu Parts | 20,000.00 | 125,695.70 | 105,118.29 | 20,577.41 | 221,275.69 | -461.93 |
| Tuopu Acoustics Vibration | 20,000.00 | 80,036.32 | 64,596.46 | 15,439.86 | 139,661.53 | 360.92 |
| Sichuan Tuopu | 2,000.00 | 6,378.93 | 3,808.64 | 2,570.29 | 8,457.26 | 397.32 |
| Yantai Tuopu | 6,280.00 | 7,627.48 | 1,968.96 | 5,658.52 | 4,186.58 | -17.52 |
| Pinghu Tuopu | 20,800.00 | 26,422.65 | 8,443.06 | 17,979.58 | 19,977.05 | 892.98 |
| Sichuan Maigao | 15,000.00 | 23,275.49 | 3,718.74 | 19,556.74 | 8,829.37 | 162.29 |
| Zhejiang Towin | 18,000.00 | 54,029.66 | 9,615.58 | 44,414.08 | 19,033.73 | 542.08 |
| Tuopu Automotive Electronics | 250,000.00 | 315,777.21 | 72,975.71 | 242,801.50 | 141,832.76 | 10,371.70 |
| Ningbo Qianhui | 2,725.86 | 9,169.87 | 2,456.96 | 6,712.91 | 2,882.54 | 47.46 |
| Tuopu North American Ltd | 5.00 | 4,279.32 | 3,859.37 | 419.95 | 28,041.26 | 634.67 |
| Tuopu Electrical Appliances | 5,000.00 | 12,522.65 | 3,360.51 | 9,162.14 | 6,324.24 | 591.27 |
| Ningbo Borgers | 2,100.00 | 24,558.91 | 7,477.31 | 17,081.60 | 20,437.71 | 1,153.32 |
| Antolin Tuopu | 1,464.22 | 6,636.58 | 4,003.45 | 2,633.12 | 3,401.69 | -72.25 |
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.
(2) Other disclosures
□Applicable √Non-applicable
Section IV Corporate GovernanceI. 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 | Resolution |
| 2021 The 1st extraordinary general meeting of shareholders | March 15, 2021 | www.sse.com.cn | March 16, 2021 | 5 proposals including the “Proposal on amendment of the Articles of Association” were deliberated and approved. More details are available in the "Announcement on Resolutions of the 2021 First Extraordinary General Meeting of Shareholders of Tuopu Group" (Announcement No.: 2021-015) |
| 2020 General meeting of shareholders | May 10, 2021 | www.sse.com.cn | May 11, 2021 | 17 proposals including the "Proposal on the Full Text and Summary of the 2020 Annual Report" and "Proposal on the 2020 Profit Distribution" were deliberated and approved. More details are available in the "Announcement on Resolutions of the 2020 Annual General Meeting of Shareholders of Tuopu Group" (Announcement No.: 2021-041) |
II. Changes in directors, supervisors and officers
□Applicable √Non-applicable
Note to the changes in directors, supervisors and officers
□Applicable √Non-applicable
III. The plan for the profit distribution of common stocks or the transfer of capital reservesThe drafted semi-annual plan for the profit distribution of common stocks or the transfer ofcapital reserves
| Whether for the profit distribution or the transfer of capital reserves | No |
| Number of bonus issues (stocks) every 10 shares | NA |
| Number of dividends distributed (Yuan) (with tax included) every 10 shares | NA |
| Number of additional shares (stocks) every 10 shares | NA |
| Note to the plan for the profit distribution of common stocks or the transfer of capital reserves | |
| No | |
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 2021", as circulated by Ningbo MunicipalBureau of Ecology and Environment on April 30, 2021, 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; the plant addressed atLongtanshan Rd, Beilun District, Ningbo (“Longtanshan Road Plant”) is included on the list of key soilenvironment supervised entities.
(2) Under the "Notice of Ningbo Municipal Bureau of Ecology and Environment on printing andhanding out the list of key emission entities in Ningbo in 2021", as circulated by Ningbo MunicipalBureau of Ecology and Environment on April 30, 2021, the wholly owned subsidiary plant NingboTuopu Automotive Electronics Co., Ltd. (“Tuopu Automotive Electronics”) addressed in Hangzhou BayNew Area, Ningbo, is included on the list of key soil environment supervised entities.
(3) Under the " Notice on release of the list of key emission entities in Jinhua in 2021”, ascirculated by Jinhua Ecological Environment Bureau on 31 March 2021, Zhejiang Towin AutomobileParts Co., Ltd., (“Zhejiang Towin”), the wholly-owned subsidiary addressed at Wuxi County BaihuashanIndustrial Park, Jinhua, is included on the list of key water environment emission entities and the list ofkey soil environment supervised entities.
(4) Under the "Notice on the list of key emission units in Sichuan in 2021 (Suining)”, as circulatedby Suining Ecological Environment Bureau on March 31, 2021, 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) Guanhai Road Plant, Longtanshan Road Plant: diversion of rainwater and sewage, diversion ofclean water and sewage, obtain the permit for urban sewage to the drainage pipeline system, and theemission permits granted by Ningbo Ecological Environment Bureau. The serial numbers of emissionpermits are 91330200761450380T001V, 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, 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, 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 the plant, rubber scraps, non-conforming products in production, and scrap metal generated bymold repair are identified as general solid wastes, sorted out by category, then disposed and recycled.Waste activated carbon, waste paint slags, pickling and phosphate slags, and waste oil generated in theproduction process are identified as hazardous wastes, a yard for storage of hazardous wastes has beenset up in accordance with the national applicable provisions. The application for transfer of hazardouswastes has been submitted in accordance with the applicable management provisions of NingboEcological Environment Bureau. And the agreements for disposal of hazardous wastes have been signedwith Ningbo Beilun Environmental Solid Waste Disposal Co., Ltd., Hangzhou Fuyang Shenneng SolidWaste Environmental Recycling Co., Ltd., and Ningbo Zhende Environmental Technology Co., Ltd.
(2) Tuopu Automotive Electronics: diversion of rainwater and sewage, diversion of clean waterand sewage, obtain the permit for urban sewage to the drainage pipeline system, serial no.: Zhe ZiNo.19119; obtain the emission permit granted from Hangzhou Bay New Area Ecological Environment
Bureau, serial no.: 991330201MA2833A9XR.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. Unacceptable sewage is prohibited from accessing to the municipalsewage pipeline.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 Hangzhou Bay New Area Sewage Treatment Plant, the domesticwastewater will be discharged to the municipal sewage pipeline system.Subject to the treatment process, one pipeline of the above wastewater and sewage is discharged via02WS863 drain outlet, the other pipeline is discharged via 01WS703 drain outlet to the municipalwastewater pipeline Hangzhou Bay New Area, finally treated in the Municipal Wastewater TreatmentPlant.
The normative standard applicable to sewage discharge of Tuopu Automotive Electronics: Grade 3standard of "Integrated Wastewater Discharge Standard" (GB8978-1996 Ammonia nitrogen and totalphosphorus are subject to the "Zhejiang Local Standard Industrial Enterprise Wastewater Nitrogen andPhosphorus Pollutant Indirect Discharge Limits" (DB33/887-2013 ), then discharged into the municipalsewage pipeline, and finally treated in the sewage treatment plant to meet the Grade 1 standard of the"Urban Sewage Treatment Plant Pollutant Discharge Standard" (GB18918-2002) before beingdischarged into the sea.Subject to treatment, the sewage from the Hangzhou Bay plant enters the urban pipe networkstandard. Actual test data of production wastewater: pH value is 7.10, COD is 7.3mg/L, ammonianitrogen is 4.22MG/L, suspended solids is 8MG/L, petroleum is 0.06MG/L, total phosphorus is
0.08MG/L, Zinc is 0.05MG/L, and anionic surfactant is 0.06MG/L, all of which meet the specifications
In the plant, metal scraps, non-conforming products in production, scrap metal from mold repairs,rubber scraps, and waste packaging are identified as general solid waste, collected, then disposed andutilized. Waste paint slags, pickling and phosphate slags, and waste oil generated in the productionprocess are identified as hazardous wastes, dedicated stacking field and storehouse for hazardous wastesare set up under the national provisions applicable to collection, packaging, storage, conveyance anddisposal of hazardous wastes, the storage registration account is created on Zhejiang Solid WastesMonitoring Information System, the hazardous waste transfer declaration is made on the "NationalSolid Waste and Chemical Management Information System" in line with the hazardous waste controlrequirements of the Environmental Protection Bureau, and hazardous waste disposal agreements havebeen signed with Ningbo Wanrun Special Oil Products Co., Ltd., Hangzhou Fuyang Shenneng Solid
Waste Environmental Recycling Co., Ltd., Ningbo Beilun Environmental Solid Waste Disposal Co.,Ltd., Dongyang Meichen Industry and Trade Co., Ltd., and Ningbo Bochuan Waste Liquid DisposalCo., Ltd.
(3) 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 protectionauthorites 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 90mg/L, ammonia nitrogen is 6.6mg/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,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 monitoring
system is running normally and transmiting 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 forhazardious wastes in accordance with the measures applicable to the control of hazardous wastes, andmaintained the hazardous waste management account and transfer form.
(4) 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.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 the plant 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＜0.156 mg/L, pH value is 7.4, COD is 164 mg/L; ammonia nitrogen is 12.7 mg/L, total phosphorus is
1.63 mg/L, petroleum is 0.89 mg/L. Actual data of domestic wastewater test: pH value is 7, COD is 28mg/L, ammonia nitrogen is 237 mg/L, all data are acceptable.In the plant, rubber scraps, non-conforming products in production, and scrap metal generated bymold repair are identified as general solid wastes, collected, then disposed and utilized. Waste paintslags, pickling and phosphate slags, and waste oil generated in the production process are identified ashazardous wastes, a dedicated yard and storehouse for hazardous wastes is set up under the nationalprovisions applicable to collection, packaging, storage, conveyance and disposal of hazardous wastes,the application for transfer of hazardous wastes has been submitted in accordance with the applicablemanagement provisions of Anju Environmental Protection Bureau, and the agreements for disposal ofhazardous wastes have been signed with Xide County Liangzai Silicon Industry Co., Ltd., MianyangXinkeYuan Environmental Protection Technology Co., Ltd., and Sichuan Zhongming EnvironmentalTreatment Co., Ltd.
The plant arranges production facilities in a reasonable way, improves processes and increase therecycling of water, and reduces the emissions of sewage. The automatic sewage monitoring system isoperating normally and connected to the environmental protection authority for data transmission in real
time, and the environmental protection authorities at the provincial, city and county levels can monitor itin real time.
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.
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. Administrative penalties due to environmental concerns during the reporting period
□Applicable √Non-applicable
7. 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) Statement on the follow-up progress or changes in the environmental information disclosureduring the reporting period
□Applicable √Non-applicable
(4) Relevant information that benefits ecosystem protection, pollution control, and fulfillmentenvironmental responsibilities
□Applicable √Non-applicable
(5) Measures and effects taken to reduce carbon emissions during the reporting period
√Applicable □Non-applicable
In light of business development and capacity extension, the Company has set up many plants. InJune and July 2021, the Company incorporated the wholly-owned sub-subsidiaries Tuopu PhotovoltaicTechnology (Ningbo Hangzhou Bay New Area) Co., Ltd., Tuopu Photovoltaic Technology (NingboBeilun) Co., Ltd., and Tuopu Photovoltaic Technology (Pinghu) Co., Ltd., and intends to capitalize onthe roofs of these plants to build and operate distributed photovoltaic power stations, make full use ofclean energy, directly reduce carbon emissions, reduce energy consumption and cost.
This project stays in line with the company vision and mission statement and improves eco-friendlydevelopment level, signifying its attention to ESG control, contributing to the goal of peak carbondioxide emissions and carbon neutrality. The project is under construction.
II. Particulars of consolidating and expanding the deliverables of poverty alleviation, ruralrevitalization and other tasks
□Applicable √Non-applicable
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
Section VI Significant EventsI. Performance of commitments
(1) Commitments made by actual controllers, shareholders, related parties, acquirers of the Company, and the Company and other related parties makingcommitments 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 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., 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 private offering. | February 2021, 6 months | Yes | Yes | NA | NA |
II. Whether there is any non-operating capital occupation by the controlling shareholder and itsaffiliates
□Applicable √Non-applicable
III. Violation of guarantee
□Applicable √Non-applicable
IV. Audit of the semi-annual report
□Applicable √Non-applicable
V. Changes and handling of matters involved in non-standard audit opinions in the previous year’sannual report
□Applicable √Non-applicable
VI. Matters concerning bankruptcy and reorganization
□Applicable √Non-applicable
VII. 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
VIII. Listed companies and their directors, supervisors, officers, controlling shareholders, andactual controllers suspected of violations of laws and regulations, or subject to punishment andrectification
□Applicable √Non-applicable
IX. Notes to the Credit Standing of the Company and Its Controlling Shareholders and ActualControllers during the Reporting Period
□Applicable √Non-applicable
X. 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
(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) Financial business between the Company and the associated financial company, the Company'sholding financial company and the related party
□Applicable √Non-applicable
(6) Other major related transactions
□Applicable √Non-applicable
(7) Other
□Applicable √Non-applicable
XI. Major contracts and contract performance1 Matters relating to trusteeship, contracting and leasing
□Applicable √Non-applicable
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
2 Significant guarantees performed and unfulfilled during the reporting period
√Applicable □Non-applicable
Unit：Yuan Currency： RMB
| External guarantees by the Company (other than its guarantees to subsidiaries) | |||||||||||||||
| Guarantor | Relation between the guarantor and the listed company | Guaranteed party | Guaranteed amount | Date of guarantee occurred (date of agreement execution) | From | Until | Type of guarantee | Main debts | Collateral (if any) | Whether the guarantee has been fulfilled | Whether the guarantee is overdue | Guarantee overdue amount | Counter-guarantee situation | Whether it is a guarantee for related parties | Associating relation |
| Total amount of guarantees during the reporting period (other than guarantees to subsidiaries) | 0 | ||||||||||||||
| Total balance of guarantees at the end of the reporting period (A) (other than guarantees to subsidiaries) | 0 | ||||||||||||||
| Guarantees by the Company to its subsidiaries | |||||||||||||||
| Total amount of guarantees to subsidiaries during the reporting period | 54,174,400 | ||||||||||||||
| Total balance of guarantees to subsidiaries at the end of the reporting period (B) | 54,174,400 | ||||||||||||||
| Total amount of company guarantees (including its guarantees to subsidiaries) | |||||||||||||||
| Total guarantees (A+B) | 54,174,400 | ||||||||||||||
| Total guarantees as a percentage of the Company's net assets (%) | 0.73 | ||||||||||||||
| Including: | |||||||||||||||
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
| Amount of guarantees provided for shareholders, actual controllers and their related parties (C) | 0 |
| Amount of debt guarantee provided directly or indirectly for the guaranteed object whose asset-liability ratio exceeds 70% (D) | 0 |
| Amount of the total guarantees exceeding 50% of the net assets (E) | 0 |
| Total of the above three guarantees (C+D+E) | 0 |
| Note to unexpired guarantees that may bear joint liability for repayment | NA |
| Statement of guarantees | Tuopu Poland sp.z.o.o, ("Tuopu Poland") is a wholly-owned subsidiary established by Tuopu Group in Poland in March 2021. It leases 7R PROJEKT 35 Sp. z oo ("7R Project Company"). The customized plant will accept and produce European orders and has assigned a lease agreement with 7R Project Company on March 15, 2021. Given business practices and actual needs, the Company provided performance guarantee for the said plant lease agreement signed by Tuopu Poland. The total liability of the letter of guarantee is up to 7 million euros (calculated at the exchange rate on the day before the announcement on March 19, 2021, equivalent to RMB 54.174 million), and the effective term covers the validity period of the said lease agreement (84 months counted from March 15, 2021) and five months after its expiration or termination, but no later than August 1, 2029. Tuopu Poland is required to perform the obligations as tenant stipulated in the above lease agreement on time. Failing to do so, Tuopu Group shall perform the obligations within 15 working days upon the receipt of the claim notice from 7R Project Company. The above performance guarantees have been reviewed and approved at the 5th meeting of the fourth Board of Directors. More details are available in “Announcement of Tuopu Group on Providing Performance Guarantees for the Lease of Industrial Plants for Overseas Wholly-owned Subsidiaries”disclosed by the company on the portal site of Shanghai Stock Exchange on March 19, 2021. (Announcement No. 2021-018). |
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
3 Other major contracts
□Applicable √Non-applicable
XII. Explanation of other important matters
□Applicable √Non-applicable
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
Section VII Changes in Shares and ShareholdersI. Condition in change of equity
(1) Condition in change of shares
1. Condition in change of shares
Unit：shares
| Before this change | Increased or decreased amount in this period (+/-) | After this change | |||||||
| Number of shares | Shares held (%) | New issue | Bonus issue | Shares converted from capital reserves | Other | Subtotal | Number of shares | Shares held (%) | |
| I. Shares held subject to restricted sale | 0 | 0 | 47,058,823 | 47,058,823 | 47,058,823 | 4.27 | |||
| 1. Shares held by the state government | |||||||||
| 2.Shares held by state-owned corporates | |||||||||
| 3. Shares held by other domestic capital | 38,352,472 | 38,352,472 | 38,352,472 | 3.48 | |||||
| Including: shares held by domestic non-state-owned corporates | |||||||||
| Shares held by domestic natural persons | |||||||||
| 4. Shares held by foreign capital | 8,706,351 | 8,706,351 | 8,706,351 | 0.79 | |||||
| Including: shares held by foreign corporates | 8,706,351 | 8,706,351 | 8,706,351 | 0.79 | |||||
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
| shares held by foreign natural persons | |||||||||
| II. Unrestricted tradable shares | 1,054,987,749 | 100 | 1,054,987,749 | 95.73 | |||||
| 1. RMB ordinary shares | 1,054,987,749 | 100 | 1,054,987,749 | 95.73 | |||||
| 2. Foreign shares listed at home | |||||||||
| 3. Foreign shares listed overseas | |||||||||
| 4. Other | |||||||||
| III.Total shares | 1,054,987,749 | 100 | 47,058,823 | 47,058,823 | 1,102,046,572 | 100 |
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
2. Changes in shares
√Applicable □Non-applicable
On February 23, 2021, the Company completed the private offering of A-shares. The Company issued 47,058,823 A-shares to 14 specific investors. Totalnumber of shares increased from 1,054,987,749 to 1,102,046,572.More details are available in the "Announcement of Tuopu Group's Private Offering of Shares and Changes in Share Capital" (Announcement No.: 2021-004)disclosed on the portal site of the Shanghai Stock Exchange on February 25, 2021.
3. Impact of changes in common shares on financial indexes such as EPS and net assets per share from the reporting period to the disclosure of thesemi-annual report (if any)
□Applicable √Non-applicable
4. Other content as the Company deems necessary to disclose or required by the securities regulatory institution
□Applicable √Non-applicable
(2) Changes in restricted sale of shares
□Applicable √Non-applicable
Unit： shares
| Name of shareholder | Number of | Number of | Number of | Number of | Reason for restricted sale | Date of removal of |
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
| shares on restricted sale at the beginning of the reporting period | shares removed from restricted sale in the reporting period | additional shares on restricted sale in the reporting period | shares on restricted sale at the end of the reporting period | restricted sale | ||
| New China Asset Management Co., Ltd. | 0 | 0 | 11,764,705 | 11,764,705 | 6-month lock-up period of shares in private offering | August 23, 2021 |
| UBS AG | 0 | 0 | 5,764,705 | 5,764,705 | 6-month lock-up period of shares in private offering | August 23, 2021 |
| CITIC Securities Co., Ltd. (Self-run) | 0 | 0 | 5,764,705 | 5,764,705 | 6-month lock-up period of shares in private offering | August 23, 2021 |
| China Securities Co., Ltd. | 0 | 0 | 4,705,882 | 4,705,882 | 6-month lock-up period of shares in private offering | August 23, 2021 |
| HFT Investment Management Co., Ltd. | 0 | 0 | 3,529,411 | 3,529,411 | 6-month lock-up period of shares in private offering | August 23, 2021 |
| CITIC Securities Co., Ltd. (asset management) | 0 | 0 | 2,211,302 | 2,211,302 | 6-month lock-up period of shares in private offering | August 23, 2021 |
| New China Fund Management Co., Ltd. | 0 | 0 | 2,141,176 | 2,141,176 | 6-month lock-up period of shares in private offering | August 23, 2021 |
| China Galaxy Securities Co., Ltd. | 0 | 0 | 2,117,647 | 2,117,647 | 6-month lock-up period of shares in private offering | August 23, 2021 |
| Huaneng Guicheng Trust Co., Ltd. | 0 | 0 | 1,882,352 | 1,882,352 | 6-month lock-up period of shares in private offering | August 23, 2021 |
| Goldman Sachs & Co. LLC | 0 | 0 | 1,529,411 | 1,529,411 | 6-month lock-up period of shares in private offering | August 23, 2021 |
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
| MORGAN STANLEY & CO. INTERNATIONAL PLC. | 0 | 0 | 1,412,235 | 1,412,235 | 6-month lock-up period of shares in private offering | August 23, 2021 |
| Zhejiang Zhonghao Investment Co., Ltd. | 0 | 0 | 1,411,764 | 1,411,764 | 6-month lock-up period of shares in private offering | August 23, 2021 |
| Chengdu Fusen-Noble House Co., Ltd. | 0 | 0 | 1,411,764 | 1,411,764 | 6-month lock-up period of shares in private offering | August 23, 2021 |
| Beijing Renaissance Era Investment Management Co., Ltd. | 0 | 0 | 1,411,764 | 1,411,764 | 6-month lock-up period of shares in private offering | August 23, 2021 |
| Total | 0 | 0 | 47,058,823 | 47,058,823 | / | / |
| Total number (accounts) of common shareholders as of the end of the reporting period | 32,899 |
| Total number (accounts) of preferred shareholders whose voting rights have been restored as of the end of the reporting period | NA |
| Shares held by the top ten shareholders | ||||||
| Name of Shareholder (Full Name) | Increase/Decr | Number of shares held at | Percentage | Number of shares held | Condition of pledge of freezing | Nature of shareholder |
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
| ease during the reporting period | the end of the period | (%) | subject to restricted sale | Status of shares | Number of shares | s | |
| MECCA INTERNATIONAL HOLDING （HK） LIMITED | 693,680,000 | 62.94 | No | Foreign corporate | |||
| Hong Kong Securities Clearing Company Limited | 29,793,506 | 2.70 | Unknown | Unknown | |||
| New China Life Insurance Co., Ltd. - Dividend-Group Dividend-018L-FH001 Hu | 12,479,254 | 1.13 | 11,764,705 | Unknown | Unknown | ||
| Kuwait Investment Authority–Own funds | 10,179,542 | 0.92 | Unknown | Foreign corporate | |||
| CITIC Securities Co., Ltd. | 10,082,526 | 0.91 | 7,976,007 | Unknown | Unknown | ||
| Jianshu Wu | 7,210,308 | 0.65 | No | Foreign natural person | |||
| Agricultural Bank of China Co., Ltd.-GT Intelligent Car Stock Securities Investment Fund | 6,768,477 | 0.61 | Unknown | Unknown | |||
| UBS AG | 5,853,548 | 0.53 | 5,764,705 | Unknown | Foreign corporate | ||
| Agricultural Bank of China Co., Ltd.-New China Power Flexible Allocation Hybrid Securities Investment Fund | 5,612,035 | 0.51 | 1,411,764 | Unknown | Unknown | ||
| Industrial and Commercial Bank of China- CIFM Domestic Demand Momentum Securities Investment Fund | 5,608,561 | 0.51 | Unknown | Unknown | |||
| Shares held by the top ten shareholders not subject to restricted sale | |||||||
| Name of Shareholder | Number of tradable shares held not | Class and number of shares | |||||
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
| 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 | 29,793,506 | RMB common shares | 29,793,506 |
| Kuwait Investment Authority – Own funds | 10,179,542 | RMB common shares | 10,179,542 |
| CITIC Securities Co., Ltd. | 10,082,526 | RMB common shares | 10,082,526 |
| Jianshu Wu | 7,210,308 | RMB common shares | 7,210,308 |
| Agricultural Bank of China Co., Ltd.-GT Intelligent Car Stock Securities Investment Fund | 6,768,477 | RMB common shares | 6,768,477 |
| Industrial and Commercial Bank of China- CIFM Domestic Demand Momentum Securities Investment Fund | 5,608,561 | RMB common shares | 5,608,561 |
| Ningbo Zhuyue Investment Management Co., Ltd. | 5,407,630 | RMB common shares | 5,407,630 |
| Shanghai Panjing Investment Management Center (Limited Partnership)-Shengxin Phase 2 Private Placement Securities Investment Fund | 5,230,741 | RMB common shares | 5,230,741 |
| Industrial and Commercial Bank of China Co., Ltd.-Rongtong China Wind No. 1 Tactic Assets Allocation Commingled Securities Investment Fund | 4,872,331 | RMB common shares | 4,872,331 |
| Description of the repurchase of special accounts among the top ten shareholders | NA | ||
| Notes to the above shareholders' entrusted voting rights, entrusted voting rights, and waiver of voting rights | NA | ||
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
| Notes to the associated relationship or concerted action of the above shareholders | Among these shareholders: 1. Mr. Jianshu Wu 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 |
| Seq. | Name of shareholders subject to restricted sale conditions | Number of restricted shares held | Conditions of restricted shares available for trading | Condition of restricted sale | |
| Time available for trading | Additional shares available for trading | ||||
| 1 | New China Life Insurance Co., Ltd. - Dividend-Group Dividend-018L-FH001 Hu | 11,764,705 | August 23, 2021 | 11,764,705 | 6-month lock-up period of shares in private offering |
| 2 | UBS AG | 5,764,705 | August 23, 2021 | 5,764,705 | 6-month lock-up period of shares in private offering |
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
| 3 | Agricultural Bank of China Co., Ltd.-New China Power Flexible Allocation Hybrid Securities Investment Fund | 1,411,764 | August 23, 2021 | 1,411,764 | 6-month lock-up period of shares in private offering |
| Notes to the associated relationship or concerted action of the above shareholders | Unknown | ||||
(3) Strategic investors or general legal persons become the top ten shareholders due to the
□Applicable √Non-applicable
III. Directors, supervisors and officers
(1) Changes in shareholding of current and resigned directors, supervisors and officers during thereporting period
□Applicable √Non-applicable
Other notes
□Applicable √Non-applicable
(2) Share incentives granted by directors, supervisors and officers during the reporting period
□Applicable √Non-applicable
(3) Other notes
□Applicable √Non-applicable
IV. Changes in controlling shareholders or actual controllers
□Applicable √Non-applicable
Section VIII Information about Preference Shares
□Applicable √Non-applicable
Section IX Information of Corporate BondsI. Corporate bonds, debentures and non-financial corporate debt financing instruments
□Applicable √Non-applicable
II. Condition of convertible corporate bonds
□Applicable √Not applicable
Section X Financial ReportI. Audit report
□Applicable √Non-applicable
II. Financial Statements
Consolidated Balance Sheet
As of 30 June 2021Prepared by： Ningbo Tuopu Group Co., Ltd.
Unit：Yuan Currency：RMB
| Item | Note | June 30, 2021 | December 31, 2020 |
| Current assets: | |||
| Cash and Bank Balances | 7.1 | 1,822,102,703.57 | 787,123,646.45 |
| Deposit Reservation for Balance | |||
| Loans to Banks and Other Financial Institutions | |||
| Trading Financial Assets | 7.2 | 401,276,432.56 | 176,111.00 |
| Derivative Financial Assets | |||
| Notes receivable | 7.4 | 350,653,610.60 | 296,283,951.73 |
| Accounts receivable | 7.5 | 2,211,356,399.61 | 1,783,267,007.65 |
| Receivables Financing | 7.6 | 874,151,202.33 | 742,203,122.21 |
| Prepayments | 7.7 | 53,564,339.54 | 42,883,818.40 |
| Premium Receivable | |||
| Reinsurance Accounts Receivable | |||
| Reinsurance Contract Reserves Receivable | |||
| Other Receivables | 7.8 | 51,992,724.93 | 31,087,166.38 |
| Including: interest receivable | |||
| Dividends Receivable | |||
| Buying Back the Sale of Financial Assets | |||
| Inventory | 7.9 | 1,611,472,435.16 | 1,502,751,836.88 |
| Contract Assets | |||
| Holding for-sale assets | |||
| Non-current Assets Due within 1 Year | |||
| Other Current Assets | 7.13 | 202,498,278.42 | 173,824,691.82 |
| Subtotal of Current Assets | 7,579,068,126.72 | 5,359,601,352.52 | |
| 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 | 138,737,177.28 | 150,295,983.58 |
| Investment in Other Equity Instruments | |||
| Other Non-current Financial Assets | |||
| Investment Property | 7.20 | 30,766,317.44 | 31,603,418.12 |
| Fixed Assets | 7.21 | 4,613,026,763.88 | 4,248,257,966.73 |
| Projects under Construction | 7.22 | 1,386,448,449.11 | 943,993,396.96 |
| Productive Biological Assets | |||
| Oil and gas assets |
| Right-of-use Assets | 7.25 | 22,447,341.16 | |
| 864,200,803.89 | 678,561,105.86 | ||
| Development Expenditure | |||
| Goodwill | 7.28 | 253,310,074.24 | 253,310,074.24 |
| Long-term unamortized expenses | 7.29 | 68,292,727.75 | 57,679,259.94 |
| Deferred Income Tax Assets | 7.30 | 101,018,268.80 | 94,968,559.88 |
| Other Non-current Assets | 7.31 | 559,073,830.90 | 296,957,402.06 |
| Total Non-current Assets | 8,037,321,754.45 | 6,755,627,167.37 | |
| Total Assets | 15,616,389,881.17 | 12,115,228,519.89 | |
| Current Liabilities: | |||
| Short-term loan | 7.31 | 773,129,744.77 | 400,378,888.89 |
| Borrowings from the Central Bank | |||
| Borrowings from Banks and Other Financial Institutions | |||
| Transactional financial liabilities | |||
| Derivative Financial Liabilities | |||
| Notes Payable | 7.35 | 1,905,569,760.15 | 1,471,327,551.91 |
| Accounts Payable | 7.36 | 2,249,867,855.45 | 1,898,255,116.17 |
| Received Prepayments | 7.37 | ||
| Contract liabilities | 7.38 | 28,149,493.14 | 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 | 123,436,773.37 | 138,292,361.67 |
| Tax Payable | 7.40 | 149,030,277.59 | 82,865,303.29 |
| Other Payables | 7.41 | 15,361,171.00 | 15,722,105.17 |
| 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 | 7,333,430.63 | |
| Other Current Liabilities | 7.44 | 3,658,909.50 | 1,507,896.52 |
| Subtotal of Current Liabilities | 5,255,537,415.60 | 4,031,034,884.03 | |
| Non-current Liabilities: | |||
| Insurance Contract Reserves | |||
| Long-term loan | |||
| Bonds Payable | |||
| Including: Preferred Stocks | |||
| Perpetual Bonds | |||
| Lease Liabilities | 7.47 | 14,138,616.74 | |
| Long-term Payables | |||
| Long-term payroll payable | |||
| Expected Liabilities | |||
| Deferred Income | 7.51 | 216,751,883.66 | 214,204,302.56 |
| Deferred Income Tax Liabilities | 7.30 | 57,717,645.00 | 51,907,987.42 |
| Other Non-current Liabilities | |||
| Total Non-current Liabilities | 288,608,145.40 | 266,112,289.98 |
| Total Liabilities | 5,544,145,561.00 | 4,297,147,174.01 | |
| Owners’ Equity (or Shareholders' Equity): | |||
| Paid-in capital (or share Capital) | 7.53 | 1,102,046,572.00 | 1,054,987,749.00 |
| Other Equity Instruments | |||
| Including: Preferred Stocks | |||
| Perpetual Bonds | |||
| Capital Reserves | 7.55 | 5,340,798,886.81 | 3,409,439,863.07 |
| Less: Treasury Share | |||
| Other Comprehensive Incomes | 7.57 | -18,697,516.09 | -20,631,668.74 |
| Special Reserves | |||
| Surplus Reserves | 7.59 | 474,769,630.86 | 474,769,630.86 |
| General Risk Reserves | |||
| Undistributed Profits | 7.60 | 3,138,579,496.89 | 2,868,429,319.48 |
| Total Shareholders' Equity Attributable to the Parent Company | 10,037,497,070.47 | 7,786,994,893.67 | |
| Minority Shareholders' Equity | 34,747,249.70 | 31,086,452.21 | |
| Total Shareholders' Equity | 10,072,244,320.17 | 7,818,081,345.88 | |
| Total Liabilities and Shareholders' Equity | 15,616,389,881.17 | 12,115,228,519.89 |
| Item | Note | June 30, 2021 | December 31, 2020 |
| Current Assets: | |||
| Cash and Bank Balances | 1,471,609,822.89 | 191,701,837.06 | |
| Trading Financial Assets | 400,000,000.00 | ||
| Derivative Financial Assets | |||
| Notes receivable | |||
| Accounts receivable | 17.1 | 1,257,297,454.89 | 1,840,937,312.96 |
| Receivables Financing | 20,499,293.48 | ||
| Prepayments | 33,622,965.24 | 20,784,751.77 | |
| Other Receivables | 17.2 | 37,523,577.06 | 76,146,034.58 |
| Including: interest receivable | |||
| Dividends Receivable | |||
| Inventory | 654,580,335.92 | 658,887,785.40 | |
| Contract Assets | |||
| Holding for-sale assets | |||
| Non-current Assets Due within 1 Year | |||
| Other Current Assets | |||
| Subtotal of Current Assets | 3,875,133,449.48 | 2,788,457,721.77 | |
| Non-current Assets: | |||
| Investment in Creditor's Rights | |||
| Investment in Other Creditor's Rights | |||
| Long-term Receivables | |||
| Long-term Equity Investment | 17.3 | 5,472,901,460.36 | 4,071,774,944.06 |
| Investment in Other Equity |
| Instruments | |||
| Other Non-current Financial Assets | |||
| Investment Property | 30,766,317.44 | 31,603,418.12 | |
| Fixed Assets | 2,248,882,303.68 | 2,125,534,955.22 | |
| Projects under Construction | 235,522,479.65 | 324,037,109.77 | |
| Productive Biological Assets | |||
| Oil and gas assets | |||
| Right-of-use Assets | |||
| Intangible Assets | 257,194,011.20 | 261,540,370.50 | |
| Development Expenditure | |||
| Goodwill | |||
| Long-term unamortized expenses | 17,605,139.13 | 18,012,648.52 | |
| Deferred Income Tax Assets | 29,859,647.26 | 33,565,021.69 | |
| Other Non-current Assets | 84,955,147.78 | 53,576,040.76 | |
| Total Non-current Assets | 8,377,686,506.50 | 6,919,644,508.64 | |
| Total Assets | 12,252,819,955.98 | 9,708,102,230.41 | |
| Current Liabilities: | |||
| Short-term loan | 550,393,750.00 | 400,378,888.89 | |
| Transactional financial liabilities | |||
| Derivative Financial Liabilities | |||
| Notes Payable | 232,215,340.00 | 165,480,933.26 | |
| 0Accounts Payable | 1,235,003,526.97 | 1,070,753,965.63 | |
| Received Prepayments | |||
| Contract liabilities | 1,954,994.80 | 1,448,964.90 | |
| Payroll payable | 56,020,223.07 | 73,653,497.54 | |
| Tax Payable | 120,859,046.03 | 54,138,713.22 | |
| Other Payables | 7,390,581.99 | 5,126,892.30 | |
| Including: interest payable | |||
| Dividends Payable | |||
| Holding for-sale liabilities | |||
| Non-current Liabilities Due within 1 Year | |||
| Other Current Liabilities | 254,149.33 | 188,365.44 | |
| Subtotal of Current Liabilities | 2,204,091,612.19 | 1,771,170,221.18 | |
| Non-current Liabilities: | |||
| Long-term loan | |||
| Bonds Payable | |||
| Including: Preferred Stocks | |||
| Perpetual Bonds | |||
| Lease Liabilities | |||
| Long-term Payables | |||
| Long-term payroll payable | |||
| Expected Liabilities | |||
| Deferred Income | 67,496,572.31 | 70,962,922.25 | |
| Deferred Income Tax Liabilities | 34,854,159.59 | 28,630,095.25 | |
| Other Non-current Liabilities | |||
| Subtotal of Non-current Liabilities | 102,350,731.90 | 99,593,017.50 | |
| Total Liabilities | 2,306,442,344.09 | 1,870,763,238.68 | |
| Owners’ Equity (or Shareholders' Equity): | |||
| Paid-in Capital (or Share Capital) | 1,102,046,572.00 | 1,054,987,749.00 | |
| Other Equity Instruments |
| Including: Preferred Stocks | |||
| Perpetual Bonds | |||
| Capital Reserves | 5,340,798,886.81 | 3,409,439,863.07 | |
| Less: Treasury Share | |||
| Other Comprehensive Incomes | |||
| Special Reserves | |||
| Surplus Reserves | 474,769,630.86 | 474,769,630.86 | |
| Undistributed Profits | 3,028,762,522.22 | 2,898,141,748.80 | |
| Total Owners’ Equity (or Shareholders' Equity) | 9,946,377,611.89 | 7,837,338,991.73 | |
| Total Liabilities and Owners’ Equity (or Shareholders' Equity) | 12,252,819,955.98 | 9,708,102,230.41 |
| Item | Note | Semi-annual 2021 | Semi-annual 2020 |
| I. Total Operating Revenue | 4,916,747,063.20 | 2,562,015,814.84 | |
| Including: Operating Revenue | 7.61 | 4,916,747,063.20 | 2,562,015,814.84 |
| Interest Income | |||
| Earned Premiums | |||
| Service Charge and Commission Income | |||
| II. Total Operating Cost | 4,363,907,911.44 | 2,326,053,060.58 | |
| Including: Operating Cost | 7.61 | 3,890,647,152.66 | 1,972,469,869.51 |
| 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 | 33,834,421.64 | 25,195,019.57 |
| Sales Expenses | 7.63 | 67,811,133.02 | 48,374,902.80 |
| Administration expenses | 7.64 | 138,616,680.48 | 100,232,074.78 |
| Research and development expense | 7.65 | 233,873,710.58 | 165,130,113.43 |
| Financial Expenses | 7.66 | -875,186.94 | 14,651,080.49 |
| Including: interest expenses | 8,718,663.63 | 13,230,815.39 | |
| Interest Income | 16,268,492.45 | 7,272,076.83 | |
| Add: Other income | 7.67 | 11,183,175.51 | 9,330,641.71 |
| Investment Income (Mark"-" for Loss) | 7.68 | 12,766,068.35 | 17,689,222.45 |
| Including: Investment Income from Affiliates and Joint Ventures | 8,441,193.70 | 6,747,676.66 | |
| 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 (losses marked with "-") | -2,613,733.23 |
| Credit Impairment Losses (Mark"-" for Loss) | 7.71 | -25,601,468.87 | 5,903,018.41 |
| Asset Impairment Losses (Mark"-" for Loss) | 7.72 | -9,508,691.87 | -1,976,118.60 |
| Asset Disposal Income (Mark"-" for Loss) | 7.73 | -1,258,747.17 | -1,048,280.34 |
| III. Operating Profit (Mark"-" for Loss) | 537,805,754.48 | 265,861,237.89 | |
| Add: Non-operating Revenues | 7.74 | 6,804,870.60 | 2,773,493.50 |
| Less: Non-operating Expenses | 7.75 | 436,761.83 | 773,265.73 |
| IV. Total Profit (Mark"-" for Total Loss) | 544,173,863.25 | 267,861,465.66 | |
| Less: Income Tax Expense | 7.76 | 80,832,042.80 | 52,311,704.48 |
| V. Net Profit (Mark"-" for Net Loss) | 463,341,820.45 | 215,549,761.18 | |
| (1) Classified by operation continuit | |||
| 1. Net Profit as a Going Concern (Mark"-" for Net Loss) | 463,341,820.45 | 215,549,761.18 | |
| 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 | 459,702,187.79 | 215,983,238.50 | |
| 2. Minority Shareholders' Profit and Loss | 3,639,632.66 | -433,477.32 | |
| VI. Net Amount of Other Comprehensive Incomes after Tax | 1,955,317.48 | -10,939,297.92 | |
| (1) Net Amount of Other Comprehensive Incomes after Tax Attributable to the Parent Company's Owner | 1,934,152.65 | -10,939,297.92 | |
| 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 | 1,934,152.65 | -10,939,297.92 | |
| (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 | 1,934,152.65 | -10,939,297.92 | |
| (7) Others | |||
| (2) Net Amount of Other Comprehensive Incomes After Tax Attributable to Minority Shareholders | 21,164.83 | ||
| VII. Total Comprehensive Income | 465,297,137.93 | 204,610,463.26 | |
| (1) Total Comprehensive Income Attributable to the Parent Company's Owner | 461,636,340.44 | 205,043,940.58 | |
| (2) Total Comprehensive Income Attributable to Minority Shareholders | 3,660,797.49 | -433,477.32 | |
| VIII. Earnings per Share: | |||
| (1) Basic Earnings per Share | 0.42 | 0.20 | |
| (2) Diluted Earnings per Share | 0.42 | 0.20 |
| Item | Note | Semi-annual 2021 | Semi-annual 2020 |
| I. Operating Revenue | 17.4 | 2,751,171,906.11 | 1,531,170,033.86 |
| Less: Operating Cost | 17.4 | 2,155,104,009.66 | 1,136,771,164.60 |
| Taxes and Surcharges | 18,491,588.19 | 15,537,365.61 | |
| Sales Expenses | 1,374,060.32 | 1,017,251.40 | |
| Administration expenses | 68,430,398.07 | 54,964,680.04 | |
| Research and development expense | 172,022,046.93 | 126,107,509.90 | |
| Financial Expenses | -5,028,375.59 | 11,015,053.19 | |
| Including: interest expenses | 7,741,372.22 | 13,203,733.47 | |
| Interest Income | 13,195,796.71 | 2,347,053.01 | |
| Add: Other income | 4,261,349.94 | 2,113,303.24 | |
| Investment Income (Mark"-" for Loss) | 17.5 | 12,766,068.35 | 127,689,222.45 |
| Including: Investment Income from Affiliates and Joint Ventures | 8,441,193.70 | 6,747,676.66 | |
| 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 "-") | 26,251,726.10 | 400,384.96 | |
| Asset Impairment Losses (loss in "-") | -7,959,800.58 | -1,789,265.35 | |
| Asset Disposal Income (loss in "-") | -1,195,076.16 | -417,287.32 | |
| II. Operating Profit (loss in "-") | 374,902,446.18 | 313,753,367.10 | |
| Add: Non-operating Revenues | 1,350,175.15 | 1,405,561.06 | |
| Less: Non-operating Expenses | 116,965.18 | 27,236.88 | |
| III. Total Profit (total loss in “-“) | 376,135,656.15 | 315,131,691.28 | |
| Less: Income Tax Expense | 55,962,872.35 | 30,115,159.70 | |
| IV. Net Profit (Mark for Net Loss) | 320,172,783.80 | 285,016,531.58 | |
| (I) Net Profit as a Going Concern (net loss in “-“) | 320,172,783.80 | 285,016,531.58 | |
| (II) Net Profit of Discontinued Operation (net loss in “-“) | |||
| V. Net Amount of Other Comprehensive Incomes After Tax | |||
| (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 | |||
| 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 | 320,172,783.80 | 285,016,531.58 | |
| VII. Earnings per Share: | |||
| (I) Basic Earnings per Share | 0.29 | 0.27 | |
| (II) Diluted Earnings per Share | 0.29 | 0.27 |
| Item | Note | Semi-annual 2021 | Semi-annual 2020 |
| I. Cash Flow Generated by Operational Activities: | |||
| Cash from Sales of Merchandise and Provision of Services | 5,385,942,651.69 | 2,753,017,968.76 | |
| 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 |
| Net Increase in Repurchase Business Funds | |||
| Net Amount of Cash Received from the Vicariously Traded Securities | |||
| Tax Refund | 160,277,646.26 | 84,099,026.05 | |
| Other Received Cashes Related to Operational Activities | 7.78 | 32,450,469.95 | 34,220,387.59 |
| Subtotal of cash inflow from operational activities | 5,578,670,767.90 | 2,871,337,382.40 | |
| Cash Paid for Merchandise and Services | 3,842,870,640.13 | 1,646,987,196.40 | |
| 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 | 632,322,899.02 | 366,032,283.95 | |
| Cash Paid for Taxes and Surcharges | 153,927,551.25 | 163,993,755.99 | |
| Other Paid Cashes Related to Operational Activities | 7.78 | 204,214,799.54 | 206,930,578.40 |
| Subtotal of cash outflow from operational activities | 4,833,335,889.94 | 2,383,943,814.74 | |
| Net cash flow generated by operating activities | 745,334,877.96 | 487,393,567.66 | |
| II. Cash Flow from Investment Activities: | |||
| Cash Arising from Disposal of Investments | 504,584,367.13 | 830,941,545.79 | |
| Cash Arising from Investment Incomes | 20,000,000.00 | ||
| Net Cash Arising from Disposal of Fixed Assets, Intangible Assets and Other Long-term Assets | 591,135.78 | 325,100.00 | |
| 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 | 525,175,502.91 | 831,266,645.79 | |
| Cash Paid for Purchase and Construction of Fixed Assets, Intangible Assets and Other Long-term Assets | 1,491,962,054.67 | 408,550,167.56 | |
| Cash Paid for Investments | 900,000,000.00 | 590,000,000.00 | |
| Net Increase in Pledge Loans | |||
| Net Cash Paid for Acquisition of Subsidiaries and Other Business Units | |||
| Other Paid Cashes Related to Investment Activities | |||
| Subtotal of Cash Outflow from Investment Activities | 2,391,962,054.67 | 998,550,167.56 | |
| Net amount of cash flow generated by investment activities | -1,866,786,551.76 | -167,283,521.77 | |
| III. Cash Flow from Financing Activities: | |||
| Cash Arising from Absorbing Investments | 1,978,417,846.74 | ||
| Including: Cash Arising from |
| Subsidiaries Absorbing Investments by Minority Shareholders | |||
| Cash Arising from Borrowings | 560,132,949.77 | 140,000,000.00 | |
| Other Received Cashes Related to Financing Activities | |||
| Subtotal of cash inflow from financing activities | 2,538,550,796.51 | 140,000,000.00 | |
| Cash Paid for Debts Repayment | 187,396,955.00 | 355,000,000.00 | |
| Cash Paid for Distribution of Dividends and Profits or Payment of Interests | 197,278,521.49 | 12,474,369.47 | |
| Including: Dividends and Profits Paid to Minority Shareholders by Subsidiaries | |||
| Other Paid Cashes Related to Financing Activities | |||
| Subtotal of cash outflow from financing activities | 384,675,476.49 | 367,474,369.47 | |
| Net cash flow generated by financing activities | 2,153,875,320.02 | -227,474,369.47 | |
| IV. Impact of Fluctuation in Exchange Rate on Cash and Cash Equivalents | 2,006,733.68 | -8,821,736.48 | |
| V. Net Increase in Cash and Cash Equivalents | 1,034,430,379.90 | 83,813,939.94 | |
| Add: Cash and Cash Equivalents at the Commencement of the Period | 674,866,422.08 | 715,182,068.12 | |
| VI. Cash and Cash Equivalents at the End of the Period | 1,709,296,801.98 | 798,996,008.06 |
| Item | Note | Semi-annual 2021 | Semi-annual 2020 |
| I. Cash Flow Generated by Operational Activities: | |||
| Cash from Sales of Merchandise and Provision of Services | 2,871,660,298.41 | 1,005,798,064.20 | |
| Tax Refund | |||
| Other Received Cashes Related to Operational Activities | 15,259,971.88 | 14,115,969.97 | |
| Subtotal of cash inflow from operational activities | 2,886,920,270.29 | 1,019,914,034.17 | |
| Cash Paid for Merchandise and Services | 1,099,743,097.74 | 394,425,381.89 | |
| Cash Paid to and for Employees | 293,579,139.82 | 202,026,277.93 | |
| Cash Paid for Taxes and Surcharges | 80,386,119.16 | 111,801,665.38 | |
| Other Paid Cashes Related to Operational Activities | 103,714,219.65 | 106,566,862.87 | |
| Subtotal of cash outflow from operational activities | 1,577,422,576.37 | 814,820,188.07 | |
| Net cash flow generated by operating activities | 1,309,497,693.92 | 205,093,846.10 | |
| II. Cash Flow from Investment Activities: | |||
| Cash Arising from Disposal of Investments | 504,584,367.13 | 830,941,545.79 | |
| Cash Arising from Investment Incomes | 20,000,000.00 | 110,000,000.00 | |
| et Cash Arising from Disposal of Fixed Assets, Intangible Assets and Other Long-term Assets | 8,921,586.13 | 18,795,778.23 | |
| Net Cash Arising from Disposal of Subsidiaries |
| and Other Business Units | |||
| Other Received Cashes Related to Investment Activities | 81,200,000.00 | ||
| Subtotal of cash inflow from investment activities | 614,705,953.26 | 959,737,324.02 | |
| Cash Paid for Purchase and Construction of Fixed Assets, Intangible Assets and Other Long-term Assets | 216,749,664.00 | 159,714,219.21 | |
| Cash Paid for Investments | 2,312,685,322.60 | 769,458,199.92 | |
| Net Cash Paid for Acquisition of Subsidiaries and Other Business Units | |||
| Other Paid Cashes Related to Investment Activities | 46,000,000.00 | 11,400,000.00 | |
| Subtotal of Cash Outflow from Investment Activities | 2,575,434,986.60 | 940,572,419.13 | |
| Net amount of cash flow generated by investment activities | -1,960,729,033.34 | 19,164,904.89 | |
| III. Cash Flow from Financing Activities: | |||
| Cash Arising from Absorbing Investments | 1,978,417,846.74 | ||
| Cash Arising from Borrowings | |||
| Other Received Cashes Related to Financing Activities | 150,000,000.00 | ||
| Subtotal of cash inflow from financing activities | 2,128,417,846.74 | ||
| Cash Paid for Debts Repayment | 355,000,000.00 | ||
| Cash Paid for Distribution of Dividends and Profits or Payment of Interest | 197,278,521.49 | 12,447,287.55 | |
| Other Paid Cashes Related to Financing Activities | |||
| Subtotal of cash outflow from financing activities | 197,278,521.49 | 367,447,287.55 | |
| Net cash flow generated by financing activities | 1,931,139,325.25 | -367,447,287.55 | |
| IV. Impact of Fluctuation in Exchange Rate on Cash and Cash Equivalents | |||
| V. Net Increase in Cash and Cash Equivalents | 1,279,907,985.83 | -143,188,536.56 | |
| Add: Cash and Cash Equivalents at the Commencement of the Period | 191,701,837.06 | 381,071,584.55 | |
| VI. Cash and Cash Equivalents at the End of the Period | 1,471,609,822.89 | 237,883,047.99 |
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
Consolidated Statement of Changes in Owners' EquityFor the Period from January 2021 to June 2021
Unit：Yuan Currency：RMB
| Item | Semi-annual 2021 | ||||||||||||||||
| 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 | -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 | |||||||||
| 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 | -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 | |||||||||
| III. Increases or Decreases in This Period (Decreases in "-") | 47,058,823.00 | 1,931,359,023.74 | 1,934,152.65 | 270,150,177.41 | 2,250,502,176.80 | 3,660,797.49 | 2,254,162,974.29 | ||||||||||
| (I) Total Comprehensive | 1,934,152.65 | 459,702,187.79 | 461,636,340.44 | 3,660,797.49 | 465,297,137.93 | ||||||||||||
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
| Income | |||||||||||||||
| (II) Shareholders' Contribution and Reduction in Capital | 47,058,823.00 | 1,931,359,023.74 | 1,978,417,846.74 | 1,978,417,846.74 | |||||||||||
| 1. Common stock invested by the owner | 47,058,823.00 | 1,931,359,023.74 | 1,978,417,846.74 | 1,978,417,846.74 | |||||||||||
| 2. Capital Invested by Holders of Other Equity Instruments | |||||||||||||||
| 3. Amount of Share-based Payments Recorded into Shareholders' Equity | |||||||||||||||
| 4. Others | |||||||||||||||
| (III) Profit Distribution | -189,552,010.38 | -189,552,010.38 | -189,552,010.38 | ||||||||||||
| 1. Appropriation of Surplus Reserves | |||||||||||||||
| 2. Appropriation of General Risk Reserves | |||||||||||||||
| 3. Distribution to Owners (or Shareholders) | -189,552,010.38 | -189,552,010.38 | -189,552,010.38 | ||||||||||||
| 4. Others | |||||||||||||||
| (IV) Internal Carry-forward |
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
| 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 |
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
| 1. Withdrawal in this period | |||||||||||||||
| 2. Used in this period | |||||||||||||||
| (VI) Others | |||||||||||||||
| IV. Balance at the End of This Period | 1,102,046,572.00 | 5,340,798,886.81 | -18,697,516.09 | 474,769,630.86 | 3,138,579,496.89 | 10,037,497,070.47 | 34,747,249.70 | 10,072,244,320.17 |
| Item | Semi-annual 2020 | ||||||||||||||
| Shareholders' Equity Attributable to the Parent Company's Owner | Minority Shareholders' Equity | Total Shareholders' Equity | |||||||||||||
| Paid-in Capital (Or Share Capital) | Other Equity Instruments | Capital Reserves | Less: Treasury Share | Other Comprehensi ve Incomes | Special Reserves | Surplus Reserves | Genera l Risk Reserv es | 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. | -10,939,297.92 | 15,535,566.19 | 4,596,268.27 | -433,477.32 | 4,162,790.95 | ||||||||||
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
| Increases or Decreases in This Period (Decreases in "-") | |||||||||||||||
| (I) Total Comprehensive Income | -10,939,297.92 | 215,983,238.50 | 205,043,940.58 | -433,477.32 | 204,610,463.26 | ||||||||||
| (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 | -200,447,672.31 | -200,447,672.31 | -200,447,672.31 | ||||||||||||
| 1. Appropriation of Surplus Reserves | |||||||||||||||
| 2. Appropriation |
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
| of General Risk Reserves | |||||||||||||||
| 3. Distribution to Owners (or Shareholders) | -200,447,672.31 | -200,447,672.31 | -200,447,672.31 | ||||||||||||
| 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 |
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
| 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 | -15,320,281.45 | 412,680,608.91 | 2,518,300,691.62 | 7,380,088,631.15 | 28,723,444.80 | 7,408,812,075.95 |
| Item | Semi-annual 2021 | ||||||||||
| 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 | 1,054,987,749.00 | 3,409,439,863.07 | 474,769,630.86 | 2,898,141,748.80 | 7,837,338,991.73 | ||||||
| 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 | 474,769,630.86 | 2,898,141,748.80 | 7,837,338,991.73 | ||||||
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
| III. Increases or Decreases in This Period (Decreases in “-“) | 47,058,823.00 | 1,931,359,023.74 | 130,620,773.42 | 2,109,038,620.16 | |||||||
| (1) Total comprehensive income | 320,172,783.80 | 320,172,783.80 | |||||||||
| II) Shareholders' Contribution and Reduction in Capital | 47,058,823.00 | 1,931,359,023.74 | 1,978,417,846.74 | ||||||||
| 1. Common stock invested by the owner | 47,058,823.00 | 1,931,359,023.74 | 1,978,417,846.74 | ||||||||
| 2. Capital Invested by Holders of Other Equity Instruments | |||||||||||
| 3. Amount of Share-based Payments Recorded into Shareholders' Equity | |||||||||||
| 4. Others | |||||||||||
| (III) Profit Distribution | -189,552,010.38 | -189,552,010.38 | |||||||||
| 1. Appropriation of Surplus Reserves | |||||||||||
| 2. Distribution to Owners (or Shareholders) | -189,552,010.38 | -189,552,010.38 | |||||||||
| 3. 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 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 | 1,102,046,572.00 | 5,340,798,886.81 | 474,769,630.86 | 3,028,762,522.22 | 9,946,377,611.89 |
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
| Item | Semi-annual 2020 | ||||||||||||
| 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 | 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 “-“) | 84,568,859.27 | 84,568,859.27 | |||||||||||
| (I) Total Comprehensive Income | 285,016,531.58 | 285,016,531.58 | |||||||||||
| (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 | -200,447,672.31 | -200,447,672.31 | |||||||||||
| 1. Appropriation of Surplus Reserves | |||||||||||||
| 2. Distribution to Owners (or Shareholders) | -200,447,672.31 | -200,447,672.31 | |||||||||||
| 3. Others | |||||||||||||
| (IV) Internal Carry-forward of Shareholders' Equity | |||||||||||||
| 1. Capital Reserves Transferred into Capital (or Share Capital) | |||||||||||||
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
| 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 | 2,624,357,082.86 | 7,501,465,303.84 |
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 30 June, 2021, the Company has issued a total of 1,102,046,572 shares, with a registeredcapital of RMB 1,102,046,572, registered address: 268 Yuwangshan Road, Daqi Street, Beilun District,Ningbo, Zhejiang, headquartered in 268 Yuwangshan Road, Daqi Street, Beilun District, Ningbo,Zhejiang, is engaged in production and sales of automobile parts. MECCA INTERNATIONALHOLDING （HK） LIMITED is the parent company of the Company is, and Jianshu Wu is the actualcontroller of the Company.
This financial statement was approved for release by the Board of Directors on August 19, 2021.
2. Scope of consolidated statement
√Applicable □Non-applicable
As of June 30, 2021, 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") |
| Name of Subsidiary |
| 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") |
| 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 Automotive Electronics Co., Ltd. (hereinafter referred to as "Tuopu Automotive Electronics") |
| 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") |
| 31. Ningbo Tuopu Chassis products Co., Ltd. (hereinafter referred to as "Tuopu Chassis") |
| 32. Tuopu EV Thermal Management System (Ningbo) Co., Ltd. (hereinafter referred to as "Tuopu Thermal Management") |
| 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 products Co., Ltd. (hereinafter referred to as "Tuopu Chassis") |
| 32. Tuopu EV Thermal Management System (Ningbo) Co., Ltd. (hereinafter referred to as "Tuopu Thermal Management") |
| 33. Huzhou Tuopu Automobile Parts Co., Ltd. (hereinafter referred to as “Huzhou Tuopu”) |
| 34. TUOPU POLAND SP.Z.O.O (hereinafter referred to as “Tuopu Poland”) |
| 35. Shanghai Tuopu Automobile Parts Co., Ltd. (hereinafter referred to as “Shanghai Tuopu”) |
| 36. Xi’an Tuopu Automobile Parts Co., Ltd (hereinafter referred to as “Xi’an Tuopu”) |
| 37. Tuopu Photovoltaic Technology (Ningbo Beilun) Co., Ltd. (hereinafter referred to as “Photovoltaic Technology Beilun”) |
| 38. Tuopu Photovoltaic Technology (Ningbo Hangzhou Bay New Area) Co., Ltd. (hereinafter referred to as “Photovoltaic Technology Hangzhou Bay”) |
IV. Basis for Preparing the Financial Statement
1. Basis for the preparation
The Company prepares the financial statement, as a going concern.Based on transactions and matters that have actually occurred, in accordance with “AccountingStandards for Business Enterprises - Basic Standards” issued by the Ministry of Finance and all specificaccounting standards, application guidelines for accounting standards for business enterprises,explanations on the accounting standards for business enterprises and other related regulations(hereinafter collectively as "Accounting Standards for Business Enterprises"), and the disclosureprovisions in the “Preparation Rules for Information Disclosures by Companies Offering Securities tothe Public No. 15 - General Provisions on Financial Reports” issued by CSRC.
2. Going concern
√Applicable □Non-applicable
The Company has the capability to continue as a going concern for at least 12 months as of the endof current reporting period, without any significant item affecting the capability for continuing as agoing concern.
V. Significant Accounting Polices and Accounting EstimatesNotes to specific accounting policies and accounting estimates:
√Applicable □Non-applicable
The following disclosures cover the specific accounting policies and accounting estimatesformulated by the Company according to the characteristics of its production and operation.
1. Statement on compliance with Accounting Standards for Business Enterprises
This 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 Renminbi ("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 mergingparty in business combination shall be measured at the book value of the assets, liabilities of the mergedparty (including goodwill incurred in the acquisition of the merged party by ultimate controlling party)in the consolidated 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 fair valueof the identifiable net assets acquired from the merging party in business combination, such differenceshall be recognized as goodwill; where the cost of combination is less than the fair value of theidentifiable net assets acquired from the merging party in business combination, such difference shall becharged to the profit or loss for the period. The identifiable assets, liabilities and contingent liabilities ofthe merged party obtained in business combination that meet the recognition conditions are measured attheir fair values on the purchase date.The fees which are directly related to the business combination shall be recognized as the profit orloss in the period when the costs are incurred; the transaction expenses of issuing equity securities ordebt securities 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 overthe investee, enjoys variable returns through participating in relevant activities of the investee, and hasthe 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 financial
position, operating result and cash flow of the Enterprise Group. The influence of internal transactionsbetween the Company and the Subsidiaries and between the Subsidiaries shall be offset. Where internaltransaction indicates the occurrence of impairment loss to relevant assets, such loss shall be recognizedin full. In preparing the consolidated financial statements, where the accounting policies and theaccounting periods are inconsistent between the Company and subsidiaries, the financial statements ofsubsidiaries are adjusted where necessary in accordance with the accounting policies and accountingperiod 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 in theconsolidated balance sheet, the net profit and the total comprehensive income in the consolidated incomestatement respectively. Where losses attributable to the minority shareholders of a subsidiary of thecurrent period exceed the minority shareholders' interest entitled in the shareholders' equity of thesubsidiary 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 subsidiaries orbusiness 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 balance ofthe consolidated financial statements and the related items in the comparative statements simultaneouslyas if the consolidated reporting entity has been in existence since the beginning of the control by theultimate 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 party isrecognized as relevant profit or loss, other comprehensive income and changes of other net assets at thelater of the date of acquisition of the original equity and the date when the combining and the combinedparties are under common control, and shall be written down to the opening retained earnings or currentprofit or loss in the comparative reporting period.
For acquisition of subsidiaries or business due to business combination involving entities not undercommon control during the reporting period, the identifiable assets, liabilities and contingent liabilitiesshall be included in the consolidated financial statements based on the fair value determined on the dateof 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 remeasured bythe Company at the fair value of such equity on the acquisition date and the difference between fairvalue and book value shall be recognized as investment income in current period. Other comprehensiveincome related to the equity held by the Acquiree before the acquisition date which can be reclassifiedinto future profit or loss, and other changes of owners’ equity accounted for under equity
(2) Disposal of subsidiaries
①General Treatment
When 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.
②Disposal of Subsidiary Achieved by Stages
When disposal of equity interests of subsidiaries through multiple transaction until the control islost, generally transactions in stages are treatment as a package deal in accounting if the transactionterms, conditions, and economic impact of disposal of the subsidiary's equity interests comply with oneor more of 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 balancesheet with respect to any difference between the long-term equity investment arising from the purchaseof minority interest and the net assets attributing to the parent company continuously calculated on the
basis 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:
(1) Recognize the assets held separately by the Company and the assets jointly held in accordancewith 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 of thejoint 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 excahgne 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 the balancesheet date; owners' equity items other than "undistributed profits" are translated at a spot exchange ratewhen accrued. Revenue and expense items as contained in the income statement are translated at a spotexchange rate at the transaction occurrence date.
For disposal of overseas operation, the translation difference as stated in the foreign currencyfinancial statements relating to overseas operation, is accounted for in the profit and loss account in thecurrent period from owners' equity items.
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 incomeand financial assets at fair value through profit or loss.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 principalFor financial assets that meet the following conditions and are not designated to be measured at fairvalue 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 principal
amount.
The Company will, at the time of initial recognition, irrevocably designate non-trading investmentsin equity 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 have beenclassified as financial assets at amortized cost or fair value through other comprehensive income, theCompany can irrevocably designate them as financial assets at fair value through current profit or loss inorder 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 the currentprofit and loss.At the time of recovery or disposal, the difference between the price obtained and the book value shallbe 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 comprehensive income
(debt instruments) include receivables financing and investments in other creditor's rights. They areinitially measured at fair value, and the value, other than the interest, the impairment loss or profit andthe 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, derivative financialassets 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
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 thechange in fair value previously recorded into the owners' equities (in cases where the transferredfinancial assets are financial assets at fair value through other comprehensive income (debtinstruments)).
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 entered
between 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.
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 is
not 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.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 longerreasonably expects 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.
5. Amortization of low-value consumables and packaging materials
（1）Low-value consumables are amortized using the immediate write-off method;
（2）Packaging materials are amortized using the immediate write-off method.
16. Contract Assets
(1). Recognition methods and standards of contract assets
√Applicable □Non-applicable
The 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 contract assets
√Applicable □Non-applicable
See “V. 10. 6. Testing methods and accounting treatment methods for impairment of financialassets” 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
Determination method and accounting treatment method of expected credit loss of debtinvestment
□Applicable √Non-applicable
19. Other debt investment
Determination methods and accounting treatment methods of expected credit losses of other debtinvestments
□Applicable √Non-applicable
20. Long-term receivables
Determination method and accounting treatment method of long-term expected credit loss ofreceivables
□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.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 ofthe 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 package deals, these transactions shall be in accounting treated asloss 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 methodInvestment 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.
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 | Straight-line | 20 | 10% | 4.50% |
| building | method | |||
| 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 ndicates the remaining years but no longer than 40 years | 10% |
(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
More details are available in Note V. 42. Lease
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 life | 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 |
| Eission rights | 5 years | Straight-line method | Eission permits |
(2) There is intention to complete the intangible asset for use or sale;
(3) The intangible asset can produce economic benefits, including there is evidence that theproducts produced using the intangible asset has a market or the intangible asset itself has a market; ifthe intangible asset is for internal use, there is evidence that there exists usage for the intangible asset;
(4) There is sufficient support in terms of technology, financial resources and other resources inorder to complete the development of the intangible asset, and there is capability to use or sell theintangible asset;
(5) The expenses attributable to the development stage of the intangible asset can be measuredreliably.
The R&D expenditures incurred shall be included in current profit or loss if it is impossible todistinguish expenditure during the research phase and expenditure during the development phase.
(2). Accounting policies for internal research and development expenditures
□Applicable √Non-applicable
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 groups
related 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.
The amortization period and amortization method of all expenses are:
| Item | Expected useful life | Basis |
| Decoration cost | 5 years | Expected benefited period |
| Software maintenance fee | 5 years | Expected benefited period |
| Other | 3-5 years | Expected benefited period |
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.
(4).Accountant arrangement method of other long-term employee benefits
□Applicable √Non-applicable
34. Lease liabilities
□Applicable √Non-applicable
More details are available in Note V, 42. Lease
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 service
committed 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 Companyperform its obligations.
? The product produced by the Company during the performance of its obligations isirreplaceable in use, and the Company shall be entitled to receive payment for the accumulated part ofthe performance completed 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.
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. the Customer 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 Customerhas legal 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 tothe Customer, i.e. the Customer has obtained the principal risks and rewards in the ownership of thegoods.
? The Customer has received the goods or services, etc.
(2). Different business models adopted for similar businesses leading to differences in revenuerecognition accounting policies
□Applicable√ Non-applicable
39. Contract costs
√Applicable □Non-applicable
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.
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 project, and the classification ratio needs to be checked and ifnecessary, 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 timing
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 frombusiness 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 accountingprofit and taxable income (or deductible loss) at the time of occurrence.
For taxable temporary differences related to investments in subsidiaries, associates and jointventures, deferred income tax liability is recognized, unless the Company can control the timing ofreversal of such temporary differences and such temporary differences are not likely to be reversed inthe foreseeable 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 paidby the 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
(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
Accounting policy effective from January 1, 2021
Lease refers to a contract in which the landlord transfers the right to use the asset to the tenant in agiven period to obtain consideration. On the commencement date of the contract, the Company assesseswhether the contract is a lease or includes a lease. If a party in the contract transfers the right to controlthe use of one or more identified assets in a given period in exchange for consideration, the contract is alease or includes a lease.
If the contract contains a plurality of separate leases at the same time, the Company will split thecontract and perform accounting treatments for each of the separate leases. If the contract contains bothlease and non-lease parts, the tenant and landloard shall separate the lease and non-lease parts.
1. The Company as tenant
(1) Right-of-use assets
On the start date of the lease term, the Company recognizes the right-of-use asset for leases otherthan short-term leases and low-value asset leases. Right-of-use assets are initially measured at cost,which includes:
? The initial measurement amount of the lease liability;
? For lease payments paid on or before the start of the lease term, if there is a lease incentive, theamount of the lease incentive already enjoyed is deducted;
? Initial direct expenses incurred by the Company;? The Company's estimated cost for dismantling and removing the leased assets, restoring the sitewhere the leased assets are located, or restoring the leased assets to the state as set out in the lease termsand conditions, except for the costs incurred for the production of inventory.The Company subsequently uses the straight-line method to depreciate the right-of-use assets. If itcan be reasonably determined that the ownership of the leased asset will be obtained at the end of thelease term, the Company shall depreciate the leased asset over the remaining useful life; otherwise, theleased asset will be depreciated over the lease term or the remaining useful life of the leased asset,whichever is shorter.The Company determines whether the right-of-use asset has been impaired under the principles asset out in "Note V. 30. Long-term asset impairment", and performs accounting treatment for theidentified impairment loss.
(2) Lease liabilities
On the commencement of the lease term, the Company recognizes lease liabilities for leases otherthan short-term leases and leases of low-value assets. Lease liabilities are initially measured based on thepresent value of the unpaid lease payments. Lease payments include:
? Fixed payment (including the actual fixed payment), if there is a lease incentive, the relevantamount of the lease incentive will be deducted;
? Variable lease payments that depend on an index or rate;
? The amount expected to be paid based on the residual value of the guarantee provided by thecompany;
? The exercise price of the purchase option, provided that the Company reasonably determines thatit will exercise the option;
? The amount to be paid to exercise the option to terminate the lease, provided that the lease termreflects that the company will exercise the option to terminate the lease.
The Company takes the interest rate implicit in the lease as the discount rate, but if the interest rateimplicit in the lease cannot be reasonably determined, the company's incremental borrowing interest rateis used as the discount rate.
The Company calculates the interest expense of the lease liability during each period of the leaseterm according to a fixed periodic interest rate, and includes it in the current profit and loss or the cost ofrelated assets.
Variable lease payments that are not included in the measurement of lease liabilities are included inthe current profit and loss or the cost of related assets when they actually occur.
After the commencement of the lease term, in any of the following circumstances, the Companyre-measures the lease liability and adjusts the corresponding right-of-use asset. If the book value of theright-of-use asset has been reduced to zero, but the lease liability still needs to be further reduced, it willThe difference is included in the current profit and loss:
? When the evaluation results of the purchase option, the renewal option or the termination optionchange, or the actual exercise of the aforementioned option is inconsistent with the original evaluationresult, the company will discount the lease payment after the change and the revised discount Thepresent value of the rate calculation remeasures the lease liability;? When the actual fixed payment changes, the expected payable amount of the guarantee residualvalue changes, or the index or ratio used to determine the lease payment changes, the companycalculates the present value based on the changed lease payment and the original discount rateRemeasure the lease liability. However, if changes in lease payments originate from changes in floatinginterest rates, the revised discount rate is used to calculate the present value.
(3) Short-term leases and low-value asset leases
The Company elects not to recognize right-of-use assets and lease liabilities for short-term leasesand low-value asset leases, and calculates the relevant lease payments in the current profit and loss orrelated asset costs on a straight-line basis in each period of the lease term. Short-term lease refers to alease that does not include purchase options for a lease period not exceeding 12 months at the beginningof the lease period. Low-value asset leasing refers to a lease with a lower value when a single leasedasset is a new asset. If the Company subleases or expects to sublease the leased assets, the original leaseis not a low-value asset lease.
(4) Lease change
If the lease is changed and the following conditions are met at the same time, the company shalltreat the lease change as a separate lease for accounting treatment:
? The lease change expands the scope of the lease by adding one or more use rights to leased assets;
? The increased consideration is equivalent to the amount of the individual price of the expandedpart of the lease scope adjusted according to the contract conditions.
If the lease change is not accounted for as a separate lease, on the effective date of the lease change,the Company reapportions the consideration of the contract after the change, re-determines the leaseterm, and calculates the current lease payment based on the lease payment after the change and therevised discount rate. The value of the lease liability is remeasured.
If the lease change causes the scope of the lease to be reduced or the lease term is shortened, theCompany will correspondingly reduce the book value of the right-of-use asset, and the relevant gains orlosses from the partial or complete termination of the lease are included in the current profit and loss. Ifother lease changes cause the lease liability to be remeasured, the company adjusts the book value of theright-of-use asset accordingly.
2. The Company as .landlord
On the commencement date of the lease, the Company divides the lease into financial lease andoperating lease. Finance lease refers to a lease in which almost all the risks and rewards related to theownership of the leased asset are transferred regardless of whether the ownership is ultimatelytransferred. Operating leases refer to leases other than financial leases. When the Company acts as asublease lessor, it classifies subleases based on the right-of-use assets generated from the original lease.
(1) Accounting treatment of operating leases
The lease receipts of operating leases are recognized as rental income in each period of the leaseterm according to the straight-line method. The Company capitalizes the initial direct costs incurredrelated to operating leases, and allocates them to the current profit and loss on the same basis as theconfirmation of rental income during the lease term. Variable lease payments that are not included in thelease receipts are included in the current profit and loss when they actually occur. If an operating lease ischanged, the company will account for it as a new lease from the effective date of the change, and theamount of advance receipts or lease receivables related to the lease before the change shall be regardedas the receipts of the new lease.
(2) Accounting treatment of financial leasing
On the commencement date of the lease, the Company recognizes the financial lease receivables forthe financial lease and terminates the recognition of the financial lease assets. When the Companyinitially measures the financial lease receivables, the net lease investment is taken as the entry value ofthe financial lease receivables. The net lease investment is the sum of the unguaranteed residual valueand the present value of the lease payment that has not been received at the beginning of the lease term,discounted at the interest rate implicit in the lease.
The Company calculates and recognizes the interest income for each period of the lease term basedon a fixed periodic interest rate. The derecognition and impairment of financial lease receivables shall beaccounted for in accordance with this Note "V. 10. Financial Instruments".
Variable lease payments that are not included in the measurement of the net lease investment areincluded in the current profit and loss when they actually occur.
If a financial lease is changed and the following conditions are met at the same time, the Companyshall treat the change as a separate lease for accounting treatment:
? The change expands the scope of the lease by adding one or more use rights to leased assets;
? The increased consideration is equivalent to the amount of the individual price of the expandedpart of the lease scope adjusted according to the contract conditions.
If the change of the financial lease is not accounted for as a separate lease, the company shall dealwith the changed lease in the following situations:
? If the change takes effect on the lease start date, the lease will be classified as an operating lease,and the Company will start accounting for it as a new lease from the lease change effective date, and usethe net lease investment before the lease change effective date as The book value of the leased asset;
? If the change takes effect on the lease start date, the lease will be classified as a financial lease,and the company will conduct accounting treatment in accordance with the policy of this note "V. 10.Financial Instruments" on the modification or renegotiation of the contract.
3. Sale and leaseback transaction
The Company evaluates and determines whether the asset transfer in the sale and leasebacktransaction is a sale in accordance with the principles described in "V. 38. Revenue".
(1) As tenant
If the asset transfer in the sale and leaseback transaction is a sale, the company as the lesseemeasures the right-of-use asset formed by the sale and leaseback based on the portion of the originalasset's book value related to the right to use obtained from the leaseback, and only transfers it to thelease The rights of the person confirm the relevant gains or losses; if the asset transfer in the sale andleaseback transaction does not belong to the sale, the company as the lessee continues to confirm thetransferred assets and at the same time confirms a financial liability equal to the transfer income. For theaccounting treatment of financial liabilities, see "V. 10. Financial Instruments".
(2) As landlord
If the asset transfer in the sale and leaseback transaction is a sale, the company acts as the lessor toaccount for the purchase of the asset, and the asset lease is accounted for in accordance with theaforementioned "2. The company as the lessor" policy; in the sale and leaseback transaction If thetransfer of assets is not a sale, the company as the lessor does not recognize the transferred assets, butrecognizes a financial asset equal to the transfer income. For the accounting treatment of financial assets,see "V. 10. Financial Instruments”.
Accounting policy effective before January 1, 2021
Leases are divided into financial leases and operating leases. Finance lease refers to a lease that hassubstantially transferred all the risks and rewards related to asset ownership. Operating leases refer toleases other than financial leases.
1. Accounting treatment of operating leases
(1) The lease fee paid by the Company for rented assets shall be apportioned on a straight-line basisduring the entire lease period without deducting the rent-free period and included in the current expenses.The initial direct expenses related to the lease transaction paid by the Company shall be included in thecurrent expenses.
When the asset lessor bears the lease-related expenses that should be borne by the company, thecompany deducts this part of the cost from the total rent, amortizes the deducted rent during the leaseterm, and counts it into the current expenses.
(2) The lease fee charged by the Company for lease of assets shall be apportioned on a straight-linebasis during the entire lease period without deducting the lease-free period and recognized aslease-related income. The initial direct expenses paid by the company related to the lease transactionshall be included in the current expenses; if the amount is large, it shall be capitalized and included inthe current income in installments based on the same basis as the lease-related income recognitionduring the entire lease period.
When the Company bears the lease-related expenses that should be borne by the lessee, thecompany deducts this part of the expenses from the total rental income, and distributes the deductedrental expenses during the lease term.
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. 21-Lease (2018 Revision)" (Cai Kuai [2017] No. 35) on Dec.7, 2018, the Company will implement the updated version of revenue standards from January 1, 2020. | "Accounting Standards for Business Enterprises No. 21-Lease (2018 Revision)" (Cai Kuai [2017] No. 35) |
4) If there is an option to renew the lease or to terminate the lease, the lease term shall bedetermined according to the actual exercise of the option before the first execution date and other latestconditions;
5) As an alternative to the impairment test of the right-of-use asset, according to the "AccountingStandards for Business Enterprises No. 13-Contingent Events", assess whether the contract containingthe lease is a loss-making contract before the first execution date, and record it in the balance sheetaccording to the first execution date Adjust the amount of loss reserves for the right-of-use asset;
6) For lease changes that occur before the beginning of the year when the new lease standard is firstimplemented, no retrospective adjustment will be made, and the accounting treatment will be carried outin accordance with the new lease standard according to the final arrangement of the lease change.
(2) The Company as landlord
Under the new lease standards, the company, as a sublease lessor, should classify subleases basedon the right-of-use assets generated by the original lease, rather than the underlying assets of the originallease. For sub-leases that are classified as operating leases before the first implementation date andcontinue after the first implementation date, the Company reassesses them based on the remainingcontract duration and terms of the original lease and sub-leases on the first implementation date, andclassifies them in accordance with the new lease standards. If it is reclassified as a finance lease, thecompany treats it as a new finance lease for accounting treatment.
Except for sub-lease, the Company does not need to adjust its lease as a lessor to adjust the amountof retained earnings at the beginning of the year and other related items in the financial statements forthe first time implementing the new lease standard. The Company conducts accounting treatment inaccordance with the new lease standard from the date of first implementation.
(2). Changes in significant accounting estimates
□Applicable √Non-applicable
(3). Since 2020, the company first implemented the revised revenue standards, the new rentstandards, and adjusted related items of the financial statements at the beginning of the year
□Applicable √Non-applicable
(4). Notes to compared data before and after the adjustment according to the first implementationof the new lease accounting standard in 2021
□Applicable √Non-applicable
45. Others
□Applicable √Non-applicable
VI. Taxes
1. Major categories of taxes and tax rates
Main categories of taxes and tax rates
√Applicable □Non-applicable
| Tax category | Taxation basis | Tax rate |
| VAT | Calculate the output tax based on the sales of goods and taxable labor income calculated under the tax law. With the input tax allowable for deduction in the current period deducted, the difference is the VAT payable | 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 VAT paid | 2%, 1.5% (Note 3) |
| 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 Automotive Electronics | 5% |
| Zhejiang Towin | 5% |
| Sichuan Maigao | 5% |
| Shanghai Towin | 1% |
| Name of Taxpayer | Urban Maintenance and Construction Tax Rate |
| 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 Automotive Electronics | 15 |
| Zhejiang Towin | 15 |
| Sichuan Maigao | 28 |
| Tuopu North American Ltd | 13 |
| Tuopu North American USA Limited, INC | 13 |
| Tuopu International | 16.50 |
| Tuopu Sweden | 22.20 |
| TUOPU (MALAYSIA) SDN.BHD. | 24 |
| Tuopu Brasil | 34 |
| Tuopu Poland | 19 |
| Other company | 25 |
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 2020 to 2022. The corporate income tax rate forthe period from January 2021 to June 2021 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), 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 the periodfrom January 2021 to June 2021 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), 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 Automotive Electronics was accredited as ahi-tech enterprise and this accreditation is valid for 3 years. Within this period of validity, thepreferential tax rate for corporate income tax is 15%, which is effective from 2019 to 2021. Thecorporate income tax rate for the period from January 2021 to June 2021 is 15%.
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), 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 the period from January 2021 to June 2021 is 15%.
6. 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" (Notice of the Ministry of Finance, the General Administration ofCustoms, and the State Administration of Taxation [2020] No.23), any enterprise engaged in anencouraged industry in Western China will pay corporate income tax at 15% from January 1
st, 2021 toDecember 31
st, 2030. Under the “Letter of confirming the main operations of Sichuan Maigao as thestate encouraged industry” (Chuan Jing Xin Gui Chan Han No. [2019]890), as circulated by Sichuan
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 the period from January 2021 to June 2021 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 | 10,329.69 | 8,899.73 |
| Bank Balance | 1,709,286,472.29 | 674,857,522.35 |
| Other Cash and Bank Balances | 112,805,901.59 | 112,257,224.37 |
| Total | 1,822,102,703.57 | 787,123,646.45 |
| Including: Total Amount Deposited in Overseas Banks | 132,717,659.65 | 70,846,825.02 |
| Item | Balance at the End of the Period | Balance at the End of Previous Year |
| Documentary Credit Deposit | 112,805,901.59 | 112,257,224.37 |
| Total | 112,805,901.59 | 112,257,224.37 |
| 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 | 401,276,432.56 | 176,111.00 |
| Including: | ||
| Short-term financial products | 400,000,000.00 | |
| Equity instrument investment | 1,276,432.56 | 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 | 401,276,432.56 | 176,111.00 |
□Applicable √Non-applicable
3. Derivative Financial Assets
□Applicable √Non-applicable
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 | 350,653,610.60 | 296,283,951.73 |
| Commercial Acceptance Notes | ||
| Total | 350,653,610.60 | 296,283,951.73 |
| Item | Pledged amount by the end of period |
| Bank Acceptance Notes | 350,653,610.60 |
| Commercial Acceptance Notes | |
| Total | 350,653,610.60 |
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 | 2,297,430,093.66 |
| Subtotal within 1 year | 2,297,430,093.66 |
| 1 to 2 years | 20,926,705.04 |
| 2 to 3 years | 12,488,487.23 |
| Over 3 years | 8,463,231.93 |
| 3 to 4 years | |
| 4 to 5 years | |
| Over 5 years | 5,627,793.14 |
| Provision for bad debts | -133,579,911.39 |
| Total | 2,211,356,399.61 |
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
(2）. Categorial 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 | 7,536,306.12 | 0.32 | 7,536,306.12 | 100.00 | 7,929,510.12 | 0.42 | 7,929,510.12 | 100.00 | ||
| Including: | ||||||||||
| Bad debt provision accrued based on single item | 7,536,306.12 | 0.32 | 7,536,306.12 | 100.00 | 7,929,510.12 | 0.42 | 7,929,510.12 | 100.00 | ||
| Bad debt provision accrued based on combinations | 2,337,400,004.88 | 99.68 | 126,043,605.27 | 5.39 | 2,211,356,399.61 | 1,885,685,399.76 | 99.58 | 102,418,392.11 | 5.43 | 1,783,267,007.65 |
| Including: | ||||||||||
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
| Bad debt provision accrued based on aging combinations | 2,337,400,004.88 | 99.68 | 126,043,605.27 | 5.39 | 2,211,356,399.61 | 1,885,685,399.76 | 99.58 | 102,418,392.11 | 5.43 | 1,783,267,007.65 |
| Total | 2,344,936,311.00 | / | 133,579,911.39 | / | 2,211,356,399.61 | 1,893,614,909.88 | / | 110,347,902.23 | / | 1,783,267,007.65 |
| 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 recover |
| Zhejiang Green Field Motor Co., Ltd. | 414,778.13 | 414,778.13 | 100.00 | Expected to be unable to recover |
| Total | 7,536,306.12 | 7,536,306.12 | 100.00 | / |
| Name | Balance at the End of the Period | ||
| Accounts Receivable | Bad Debt Provision | Accrued Proportion (%) | |
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
| Within 1 year (including 1 year) | 2,297,430,093.66 | 114,871,504.69 | 5.00 |
| 1-2 years (including 2 years) | 20,926,705.04 | 2,092,670.50 | 10.00 |
| 2-3 years (including 3 years) | 12,073,709.10 | 3,622,112.73 | 30.00 |
| 3-5 years (including 5 years) | 3,780,449.33 | 2,268,269.60 | 60.00 |
| Over 5 years | 3,189,047.75 | 3,189,047.75 | 100.00 |
| Total | 2,337,400,004.88 | 126,043,605.27 | 5.39 |
| 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 | 7,929,510.12 | 7,929,510.12 | 393,204.00 | 7,536,306.12 | ||
| Bad debt provision accrued based on combinations | 102,418,392.11 | 102,418,392.11 | 23,625,213.16 | 126,043,605.27 | ||
| Total | 110,347,902.23 | 110,347,902.23 | 23,625,213.16 | 393,204.00 | 133,579,911.39 | |
(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 | 1,070,467,059.43 | 45.65 | 53,523,352.97 |
| No.2 | 339,484,850.86 | 14.48 | 16,974,242.54 |
| No.3 | 268,728,678.08 | 11.46 | 13,436,433.90 |
| No.4 | 102,505,770.89 | 4.37 | 5,125,288.54 |
| No.5 | 83,466,268.17 | 3.56 | 4,173,313.41 |
| Total | 1,864,652,627.43 | 79.52 | 93,232,631.36 |
| Item | Balance at the End of the Period | Balance at the Beginning of the Period |
| Notes receivable | 874,151,202.33 | 742,203,122.21 |
| Total | 874,151,202.33 | 742,203,122.21 |
| 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 |
| Bank Acceptance Notes | 714,860,797.35 | 2,877,137,811.80 | 2,750,625,657.48 | -20,000,000.00 | 821,372,951.67 |
| Commercial Acceptance Notes | 27,342,324.86 | 59,186,053.33 | 30,972,324.86 | -2,777,802.67 | 52,778,250.66 |
| Total | 742,203,122.21 | 2,936,323,865.13 | 2,781,597,982.34 | -22,777,802.67 | 874,151,202.33 |
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
1. Notes receivable pledged by the Company at the end of the period
| Item | Pledged amount by the end of period |
| Bank Acceptance Notes | 766,338,805.85 |
| Commercial Acceptance Notes | 45,602,218.33 |
| Total | 811,941,024.18 |
| Item | Derecognised amount at the end of the period | Non-derecognised amount at the end of the period |
| Bank Acceptance Notes | 1,893,265,656.73 | |
| Total | 1,893,395,656.73 |
| Aging | Balance at the End of the Period | Balance at the Start of the Period | ||
| Amount | Percentage(%) | Amount | Percentage(%) | |
| Within 1 year | 49,242,145.75 | 91.93 | 38,834,366.57 | 90.56 |
| 1-2 years | 2,840,257.74 | 5.30 | 2,579,881.03 | 6.02 |
| 2-3 years | 850,500.09 | 1.59 | 838,134.84 | 1.95 |
| Over 3 years | 631,435.96 | 1.18 | 631,435.96 | 1.47 |
| Total | 53,564,339.54 | 100.00 | 42,883,818.40 | 100.00 |
| Prepayments made to | Balance at the end of the period | Proportion in total balance of prepayments at the end of the period |
| 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 | 2,399,517.09 | 4.48 |
| 联益达旺橡胶有限公司 Lianyi Dawang Rubber Co., Ltd. | 2,255,140.27 | 4.21 |
| Johnson Electric (Guangdong) Co., Ltd. | 2,057,903.56 | 3.84 |
| Sri Trang Agro-Industry (Shanghai) Co., Ltd. | 1,290,566.03 | 2.41 |
| Groz-Beckert Trading (Shenzhen) Co., Ltd. | 752,132.98 | 1.40 |
| Total | 8,755,259.93 | 16.34 |
| Item | Balance at the end of the period | Balance at the beginning of the period |
| Interest receivable | ||
| Dividend receivable | ||
| Other Receivables | 51,992,724.93 | 31,087,166.38 |
| Total | 51,992,724.93 | 31,087,166.38 |
(5). Important dividend receivable with an aging over 1 year
□Applicable √Non-applicable
(3). Particulars of bad debt provision
□Applicable √Non-applicable
Other Notes:
□Applicable √Non-applicable
Other Receivables
(4). 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 | 53,597,851.23 |
| Subtotal within 1 year | 53,597,851.23 |
| 1-2 years | 537,251.95 |
| 2-3 years | 336,230.00 |
| Over 3 years | 889,696.23 |
| 3-4 years | |
| 4-5 years | |
| Over 5 years | 237,800.00 |
| Bad debt provision | -3,606,104.48 |
| Total | 51,992,724.93 |
| Nature of Funds | Book balance at the end of the period | Book balance at the beginning of the period |
| Petty cash funds | 316,225.00 | 122,815.13 |
| Security deposit | 50,221,574.97 | 29,417,358.76 |
| Other | 5,061,029.44 | 4,122,370.20 |
| Total | 55,598,829.41 | 33,662,544.09 |
| 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, 2021 | 2,575,377.71 | 2,575,377.71 | ||
| Balance of the current period on January 1, 2021 | ||||
| --Transfer to |
| Phase 2 | ||||
| --Transfer to Phase 3 | ||||
| --Transfer to Phase 2 | ||||
| --Transfer to Phase 1 | ||||
| Provision made in the current period | 1,030,726.77 | 1,030,726.77 | ||
| Reversal in the current period | ||||
| Write-off in the current period | ||||
| Write-off in the current period | ||||
| Other changes | ||||
| Balance on December 31, 2021 | 3,606,104.48 | 3,606,104.48 |
| 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 | 2,575,377.71 | 1,030,726.77 | 3,606,104.48 | |||
| Total | 2,575,377.71 | 1,030,726.77 | 3,606,104.48 | |||
Unit：Yuan Currency：RMB
| 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 | 46,237,313.00 | Within 1 year | 83.16 | 2,311,865.65 |
| Special custody account of Beilun Customs of the People’s Republic of China | Security deposit | 982,393.23 | Within 1 year | 1.77 | 49,119.66 |
| Zhejiang Geely Holding Group Automobile Sales Co., Ltd. | Security deposit | 800,000.00 | Within 1 year | 1.44 | 40,000.00 |
| Ningbo Hangzhou Bay New Area Haichuang Industrial Co., Ltd. | Security deposit | 666,000.00 | Within 1 year | 1.20 | 33,300.00 |
| Liu Hongsong | Other | 455,000.00 | 2-4 years | 0.82 | 259,500.00 |
| Total | / | 49,140,706.23 | / | 88.39 | 2,693,785.31 |
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
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 | 298,956,473.92 | 298,956,473.92 | 217,685,102.37 | 217,685,102.37 | ||
| WIPs | ||||||
| Finished goods | 463,604,033.64 | 44,191,371.19 | 419,412,662.45 | 617,392,628.62 | 38,312,844.14 | 579,079,784.48 |
| Revolving materials | 47,125,476.98 | 47,125,476.98 | 15,283,612.95 | 15,283,612.95 | ||
| Consumptive biological assets | ||||||
| Contract performance cost | ||||||
| Production cost | 271,130,489.15 | 271,130,489.15 | 244,417,226.39 | 244,417,226.39 | ||
| Delivered goods | 574,847,332.66 | 574,847,332.66 | 446,286,110.69 | 446,286,110.69 | ||
| Total | 1,655,663,806.35 | 44,191,371.19 | 1,611,472,435.16 | 1,541,064,681.02 | 38,312,844.14 | 1,502,751,836.88 |
| 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 | Other | Reversal or Write-off | Other | |||
| Raw materials | ||||||
| WIPs | ||||||
| Finished goods | 38,312,844.14 | 9,508,691.87 | 3,630,164.82 | 44,191,371.19 | ||
| Revolving materials | ||||||
| Consumptive biological assets | ||||||
| Contract performance cost | ||||||
| Total | 38,312,844.14 | 9,508,691.87 | 3,630,164.82 | 44,191,371.19 | ||
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
(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
Other notes:
□Applicable √Non-applicable
11. Held-for-sale assets
□Applicable √Non-applicable
12. Non-current assets due within one year
□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 | 201,241,840.10 | 168,424,657.71 |
| Prepaid income tax | 1,256,438.32 | 5,400,034.11 |
| Total | 202,498,278.42 | 173,824,691.82 |
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
(2). Important debt investment at the end of the period
□Applicable √Non-applicable
(3). Particulars of provision for impairment
□Applicable √Non-applicable
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
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
(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
Other notes:
□Applicable √Non-applicable
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
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 | Other | ||||
| I. Joint ventures | |||||||||||
| Tuopu Electrical Appliances Co., Ltd. (hereinafter referred to as “Tuopu Electrical Appliances”) | 62,576,414.03 | 2,956,361.83 | 20,000,000.00 | 45,532,775.86 | |||||||
| Ningbo Borgers Tuopu Automobile Parts Co., Ltd. (hereinafter referred to as “Ningbo Borgers) | 77,081,863.30 | 5,766,621.32 | 82,848,484.62 | ||||||||
| Subtotal | 139,658,277.33 | 8,722,983.15 | 20,000,000.00 | 128,381,260.48 | |||||||
| II. Affiliates | |||||||||||
| Chongqing Antolin Tuopu Overhead System Co., Ltd. (hereinafter referred to as “Chongqing Antolin”) | 10,637,706.25 | -281,789.45 | 10,355,916.80 | ||||||||
| Subtotal | 10,637,706.25 | -281,789.45 | 10,355,916.80 | ||||||||
| Total | 150,295,983.58 | 8,441,193.70 | 20,000,000.00 | 138,737,177.28 | |||||||
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
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 | 49,063,282.93 | 6,689,012.00 | 55,752,294.93 | |
| 2. Increased in the Current Period | ||||
| (1) Purchase | ||||
| (2) Transfer-in of Inventory\Fixed assets\Construction in progress | ||||
| (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 | 21,687,451.18 | 2,461,425.63 | 24,148,876.81 | |
| 2. Increased in the Current Period | 746,933.78 | 90,166.90 | 837,100.68 | |
| (1) Accrual or Amortization | 746,933.78 | 90,166.90 | 837,100.68 | |
| 3. Decreased in the Current Period | ||||
| (1) Disposal |
| (2) Other transfer-out | ||||
| 4. Balance at the end of the period | 22,434,384.96 | 2,551,592.53 | 24,985,977.49 | |
| 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 | 26,628,897.97 | 4,137,419.47 | 30,766,317.44 | |
| 2. Book value at the beginning of the period | 27,375,831.75 | 4,227,586.37 | 31,603,418.12 |
| Item | Balance at the end of the period | Balance at the beginning of the period |
| Fixed assets | 4,613,026,763.88 | 4,248,257,966.73 |
| Disposal of fixed assets | ||
| Total | 4,613,026,763.88 | 4,248,257,966.73 |
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
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 and equipment and others | Buildings for commercial use | Total |
| I . Original book value | ||||||
| 1. Balance at the beginning of the period | 2,073,264,004.72 | 3,846,134,511.39 | 31,988,613.22 | 199,000,728.36 | 68,200,328.83 | 6,218,588,186.52 |
| 2. Increased in the Current Period | 13,078,376.93 | 602,982,926.19 | 1,461,747.71 | 12,921,559.93 | 630,444,610.76 | |
| (1) Purchase | 201,492.45 | 102,450,430.80 | 1,461,747.71 | 10,163,459.09 | 114,277,130.05 | |
| (2) Transfer-in of construction in progress | 12,876,884.48 | 500,532,495.39 | 2,758,100.84 | 516,167,480.71 | ||
| (3) Increase from business combination | ||||||
| 3. Decreased in the Current Period | 28,195,028.09 | 535,977.18 | 456,571.95 | 29,187,577.22 | ||
| (1) Disposal or scrapping | 28,195,028.09 | 535,977.18 | 456,571.95 | 29,187,577.22 | ||
| 4. Balance at the end of the period | 2,086,342,381.65 | 4,420,922,409.49 | 32,914,383.75 | 211,465,716.34 | 68,200,328.83 | 6,819,845,220.06 |
| II. Accumulated Depreciation | ||||||
| 1. Balance at the beginning of the period | 357,206,206.02 | 1,493,030,127.66 | 23,887,832.93 | 93,777,434.96 | 2,428,618.22 | 1,970,330,219.79 |
| 2. Increased in the Current Period | 46,221,286.31 | 190,228,349.98 | 2,049,061.34 | 10,016,266.62 | 792,441.95 | 249,307,406.20 |
| (1) Accrual | 46,221,286.31 | 183,511,553.81 | 2,049,061.34 | 9,831,737.49 | 792,441.95 | 242,406,080.90 |
| (2) Other increases | 6,716,796.17 | 184,529.13 | 6,901,325.30 | |||
| 3. Decreased in the Current Period | 11,973,817.25 | 505,359.51 | 339,993.05 | 12,819,169.81 | ||
| (1) Disposal or scrapping | 11,973,817.25 | 505,359.51 | 339,993.05 | 12,819,169.81 | ||
| 4. Balance at the end of the period | 403,427,492.33 | 1,671,284,660.39 | 25,431,534.76 | 103,453,708.53 | 3,221,060.17 | 2,206,818,456.18 |
| 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 | 1,682,914,889.32 | 2,749,637,749.10 | 7,482,848.99 | 108,012,007.81 | 64,979,268.66 | 4,613,026,763.88 |
| 2. Book value at the beginning of the period | 1,716,057,798.70 | 2,353,104,383.73 | 8,100,780.29 | 105,223,293.40 | 65,771,710.61 | 4,248,257,966.73 |
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
(2). Particulars of temporarily idle fixed assets
□Applicable √Non-applicable
(3). Particulars of fixed assets rented under financial leasing
□Applicable √Non-applicable
(4). 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 | 475,629,099.61 | In process |
| Item | Balance at the End of the Period | Balance at the Beginning of the Period |
| Construction in progress | 1,386,448,449.11 | 943,993,396.96 |
| Construction supplies and materials | ||
| Total | 1,386,448,449.11 | 943,993,396.96 |
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
Construction in Progress
(1). Particulars 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 | 670,942,694.26 | 670,942,694.26 | 682,154,841.45 | 682,154,841.45 | ||
| Molds of the group under fabrication | 85,502,602.27 | 85,502,602.27 | 83,278,532.30 | 83,278,532.30 | ||
| Intelligent Brake project of the group headquarter | 11,700,259.32 | 11,700,259.32 | 10,760,304.53 | 10,760,304.53 | ||
| Wuhan Tuopu Project | 4,310,110.11 | 4,310,110.11 | 5,106,988.41 | 5,106,988.41 | ||
| Liuzhou Tuopu Project | 869,724.78 | 869,724.78 | ||||
| Taizhou Tuopu Project | 46,982,354.92 | 46,982,354.92 | 43,526,245.62 | 43,526,245.62 | ||
| Mechatronics Project | 103,846,158.54 | 103,846,158.54 | 25,674,905.15 | 25,674,905.15 | ||
| Sichuan Maigao Project | 13,001,251.20 | 13,001,251.20 | 11,545,959.74 | 11,545,959.74 | ||
| Hunan Tuopu Project | 85,413,703.66 | 85,413,703.66 | 27,462,126.30 | 27,462,126.30 | ||
| Tuopu Thermal Management Project | 235,668,333.75 | 235,668,333.75 | 10,706,712.33 | 10,706,712.33 | ||
| Tuopu Chassis Project | 128,211,256.30 | 128,211,256.30 | 43,776,781.13 | 43,776,781.13 | ||
| Total | 1,386,448,449.11 | 1,386,448,449.11 | 943,993,396.96 | 943,993,396.96 | ||
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
(2). Changes in significant construction in progress during the current period
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
| 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 | Accumu lated capitaliz ed interest amount | Including: capitalized interest amount in the current period | Capitaliza tion rate of the interest in the current period (%) | Capital Source |
| Equipment and software installation project | 682,154,841.45 | 440,294,123.85 | 451,506,271.04 | 670,942,694.26 | Under construction | Self-funded or raised | ||||||
| Molds of the group under fabrication | 83,278,532.30 | 54,027,263.08 | 51,803,193.11 | 85,502,602.27 | Under construction | Self-funded | ||||||
| Intelligent Brake project of the group headquarter | 530,000,000.00 | 10,760,304.53 | 12,688,671.02 | 11,748,716.23 | 11,700,259.32 | 99.25 | Under construction | Self-funded or raised | ||||
| Taizhou Tuopu Project | 45,000,000.00 | 43,526,245.62 | 3,456,109.30 | 46,982,354.92 | 97.45 | Under construction | Self-funded | |||||
| Tuopu Chassis Project | 240,000,000.00 | 43,776,781.13 | 84,434,475.17 | 128,211,256.30 | 53.42 | Under construction | Self-funded |
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
| Mechatronics Phase II Project | 130,000,000.00 | 25,674,905.15 | 78,171,253.39 | 103,846,158.54 | 79.88 | Under construction | Self-funded or raised | |||||
| Tuopu Thermal Management Project | 1,100,000,000.00 | 10,706,712.33 | 224,961,621.42 | 235,668,333.75 | 21.42 | Under construction | Self-funded | |||||
| Other house and building project | 98,598,566.91 | 6,105,523.17 | 1,109,300.33 | 103,594,789.75 | Under construction | Self-funded | ||||||
| Total | 2,045,000,000.00 | 998,476,889.42 | 904,139,040.40 | 516,167,480.71 | 1,386,448,449.11 | / | / | / | / |
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
24. Oil and gas assets
□Applicable √Non-applicable
25. Right-of-use assets
□Applicable √Non-applicable
Unit：Yuan Currency：RMB
| Item | Houses and buildings | Total |
| I . Original book value | ||
| 1. Opening Balance | ||
| 2. Increased in the Current Period | 25,409,428.46 | 25,409,428.46 |
| (1) Purchase | 25,409,428.46 | 25,409,428.46 |
| 3. Decreased in the Current Period | ||
| 4. Balance at the end of the period | 25,409,428.46 | 25,409,428.46 |
| II. Accumulated amortization | ||
| 1. Balance at the beginning of the period | ||
| 2. Increased in the Current Period | 2,962,087.30 | 2,962,087.30 |
| (1) Accrual | 2,962,087.30 | 2,962,087.30 |
| 3. Decreased in the Current Period | ||
| (1) Disposal | ||
| 4. Balance at the end of the period | 2,962,087.30 | 2,962,087.30 |
| 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 | 22,447,341.16 | 22,447,341.16 |
| 2.Book value at the beginning of the period |
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
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 | 703,393,774.52 | 67,847,717.99 | 1,548,222.50 | 772,789,715.01 | ||
| 2. Increased in the Current Period | 195,887,989.84 | 2,157,254.01 | 198,045,243.85 | |||
| (1) Purchase | 195,887,989.84 | 2,157,254.01 | 198,045,243.85 | |||
| (2) Internal research and development | ||||||
| (3) Acquisition | ||||||
| 3. Decreased in the Current Period | ||||||
| (1) Disposal | ||||||
| 4. Balance at the end of the period | 899,281,764.36 | 70,004,972.00 | 1,548,222.50 | 970,834,958.86 | ||
| II. Accumulated amortization | ||||||
| 1. Balance at the beginning of the period | 67,825,404.83 | 25,669,301.94 | 733,902.38 | 94,228,609.15 | ||
| 2. Increased in the Current Period | 8,411,259.95 | 3,828,960.30 | 165,325.57 | 12,405,545.82 | ||
| (1) Accrual | 8,411,259.95 | 3,828,960.30 | 165,325.57 | 12,405,545.82 | ||
| 3. Decreased in the Current Period | ||||||
| (1) Disposal | ||||||
| 4. Balance at the end of the period | 76,236,664.78 | 29,498,262.24 | 899,227.95 | 106,634,154.97 | ||
| III. Provision for Impairment |
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
| 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 | 823,045,099.58 | 40,506,709.76 | 648,994.55 | 864,200,803.89 | ||
| 2.Book value at the beginning of the period | 635,568,369.69 | 42,178,416.05 | 814,320.12 | 678,561,105.86 |
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 | ||||
(4). Explain the process of impairment testing of goodwill, key parameters (for example, theforecast period growth rate, stable period growth rate, profit rate, discount rate, forecast period,etc., if applicable) and business Recognition method of reputation impairment loss
√Applicable □Non-applicable
(1) Impairment test of goodwill formed by the acquisition of chassis business of Zhejiang Towinand Sichuan Maigao
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. | 22,615,107.37 | 5,640,684.43 | 144,777.77 | 16,829,645.17 | |
| Others | 35,064,152.57 | 34,249,670.86 | 17,310,617.39 | 540,123.46 | 51,463,082.58 |
| Total | 57,679,259.94 | 34,249,670.86 | 22,951,301.82 | 684,901.23 | 68,292,727.75 |
| 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 | 184,155,189.70 | 40,811,411.41 | 152,675,193.81 | 33,337,345.97 |
| Unrealized profits from internal transactions | 100,134,827.73 | 24,037,036.89 | 111,200,512.26 | 25,696,889.57 |
| Deductible loss | ||||
| Deferred income | 216,751,883.66 | 36,169,820.50 | 214,204,302.56 | 35,934,324.34 |
| Total | 501,041,901.09 | 101,018,268.80 | 478,080,008.63 | 94,968,559.88 |
| 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 same control | 45,103,667.40 | 11,275,916.85 | 46,761,294.44 | 11,690,323.61 |
| Changes in the fair value of other equity instrument investments | ||||
| Changes in the fair value of other debt investments | ||||
| Accelerated depreciation of fixed assets | 309,611,521.00 | 46,441,728.15 | 268,117,758.73 | 40,217,663.81 |
| Total | 354,715,188.40 | 57,717,645.00 | 314,879,053.17 | 51,907,987.42 |
| 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 for construction equipment | 559,073,830.90 | 559,073,830.90 | 296,957,402.06 | 296,957,402.06 | ||
| Total | 559,073,830.90 | 559,073,830.90 | 296,957,402.06 | 296,957,402.06 |
| Item | Balance at the end of the period | Balance at the beginning of the period |
| Pledge loan | ||
| Mortgage loan | 550,393,750.00 | 400,378,888.89 |
| Guaranteed loan | ||
| Credit loan | 222,735,994.77 | |
| Total | 773,129,744.77 | 400,378,888.89 |
| Category | Balance at the end of the period | Balance at the beginning of the period |
| Commercial acceptance bill | ||
| Bank acceptance bill | 1,905,569,760.15 | 1,471,327,551.91 |
| Total | 1,905,569,760.15 | 1,471,327,551.91 |
36. Accounts payable
(1). Presentation of accounts payable
√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) | 2,200,772,909.89 | 1,853,269,995.18 |
| 1-2 years (including 2 years) | 35,568,125.74 | 31,986,841.31 |
| 2-3 years (including 3 years) | 7,641,626.24 | 7,239,675.36 |
| Over 3 years | 5,885,193.58 | 5,758,604.32 |
| Total | 2,249,867,855.45 | 1,898,255,116.17 |
| Item | Balance at the end of the period | Balance at the beginning of the period |
| Within 1 year (including 1 year) | 17,978,909.33 | 11,522,861.56 |
| 1-2 years (including 2 years) | 6,142,833.02 | 6,673,269.49 |
| 2-3 years (including 3 years) | 742,273.75 | 838,769.34 |
| Over 3 years | 3,285,477.04 | 3,650,760.02 |
| Total | 28,149,493.14 | 22,685,660.41 |
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
39. 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 | 138,178,109.47 | 588,139,234.88 | 603,299,420.99 | 123,017,923.36 |
| II. Dimission benefits - defined contribution scheme | 114,252.20 | 29,262,349.25 | 28,957,751.44 | 418,850.01 |
| III. Dismissal benefits | ||||
| IV. Other benefits due within 1 year | ||||
| Total | 138,292,361.67 | 617,401,584.13 | 632,257,172.43 | 123,436,773.37 |
| 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 | 135,935,768.57 | 509,425,452.57 | 524,965,476.64 | 120,395,744.50 |
| 2. Staff welfare | 106,560.80 | 40,522,060.01 | 40,526,404.03 | 102,216.78 |
| 3. Social insurance contributions | 204,154.27 | 15,598,657.61 | 15,513,151.99 | 289,659.89 |
| Including: medical insurance premium | 159,475.74 | 14,113,234.61 | 14,039,045.62 | 233,664.73 |
| Work injury insurance premium | -1,680.08 | 1,372,145.87 | 1,334,076.90 | 36,388.89 |
| Birth insurance premium | 46,358.61 | 113,277.13 | 140,029.47 | 19,606.27 |
| 4. Housing funds | 110,395.00 | 17,257,095.47 | 17,224,234.67 | 143,255.80 |
| 5. Labor union and education funds | 1,821,230.83 | 5,335,969.22 | 5,070,153.66 | 2,087,046.39 |
| 6. Short-term paid absences | ||||
| 7. Short-term profit sharing plan | ||||
| Total | 138,178,109.47 | 588,139,234.88 | 603,299,420.99 | 123,017,923.36 |
(3). Presentatioon 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 | 104,394.92 | 28,010,859.88 | 27,716,982.72 | 398,272.08 |
| 2. Unemployment insurance premium | 9,857.28 | 1,251,489.37 | 1,240,768.72 | 20,577.93 |
| 3. Corporate annuity payment | ||||
| Total | 114,252.20 | 29,262,349.25 | 28,957,751.44 | 418,850.01 |
| Item | Balance at the end of the period | Balance at the beginning of the period |
| VAT | 54,399,747.16 | 37,476,861.48 |
| Consumption tax | ||
| Business tax | ||
| Enterprise Income Tax | 60,560,837.61 | 13,247,733.04 |
| Individual income tax | 1,048,780.70 | 1,126,989.40 |
| Urban Maintenance and Construction Tax | 587,913.99 | 2,555,965.45 |
| Property tax | 20,098,111.37 | 17,409,122.91 |
| Education surcharges | 287,571.80 | 1,124,111.62 |
| Local education surcharges | 161,020.77 | 748,551.75 |
| Land use tax | 9,835,675.11 | 8,463,193.68 |
| Environmental protection tax | 454.86 | 454.86 |
| Disabled security fund | 1,663,759.84 | 313,642.20 |
| Special funds for water conservancy construction | 6,973.11 | 8,547.00 |
| Stamp duty | 379,431.27 | 390,129.90 |
| Total | 149,030,277.59 | 82,865,303.29 |
| Item | Balance at the end of the period | Balance at the beginning of the period |
| Interest Payable | ||
| Dividends Payable | ||
| Other payables | 15,361,171.00 | 15,722,105.17 |
| Total | 15,361,171.00 | 15,722,105.17 |
Dividends payable
□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 | 7,883,598.94 | 8,120,598.94 |
| Other | 7,477,572.06 | 7,601,506.23 |
| Total | 15,361,171.00 | 15,722,105.17 |
| Item | Balance at the end of the period | Balance at the beginning of the period |
| Long-term loans due within 1 year | ||
| Bonds payable due within 1 year | ||
| Long-term payables due within 1 year | ||
| Lease liabilities due within 1 year | 7,333,430.63 | |
| Total | 7,333,430.63 |
| 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 | 3,658,909.50 | 1,507,896.52 |
| Total | 3,658,909.50 | 1,507,896.52 |
45. Long-term loans
1). Category of long-term loans
√Applicable □Non-applicable
Other note: including interest rate range
□Applicable √Non-applicable
46. Bonds payable
(1). Bonds payable
□Applicable √Non-applicable
(2). Changes in bonds payable: (excluding preferred stocks, perpetual bonds and other financialinstruments classified as financial liabilities)
□Applicable √Non-applicable
(3). Conversion conditions and time of convertible corporate bonds
□Applicable √Non-applicable
(4). Notes to ther financial instruments classified as financial liabilities
General particulars of other financial instruments such as preferred stocks and perpetual bonds issued atthe end of the period
□Applicable √Non-applicable
Changes in financial instruments such as preferred stocks and perpetual bonds issued at the end of theperiod
□Applicable √Non-applicable
Notes to the basis for classification of other financial instruments as financial liabilities:
□Applicable √Non-applicable
Other Notes:
□Applicable √Non-applicable
47. Lease liabilities
□Applicable √Non-applicable
Unit：Yuan Currency：RMB
| Item | Balance at the end of the period | Balance at the beginning of the period |
| Lease liabilities | 21,472,047.37 | |
| Less: Lease liabilities due within one year | -7,333,430.63 | |
| Total | 14,138,616.74 |
Long-term payables
□Applicable √Non-applicable
Special payables
□Applicable √Non-applicable
49. Long-term payroll payable
□Applicable √Non-applicable
50. Estimated liabilities
□Applicable √Non-applicable
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
51. 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 | 214,204,302.56 | 11,615,416.00 | 9,067,834.90 | 216,751,883.66 | |
| Total | 214,204,302.56 | 11,615,416.00 | 9,067,834.90 | 216,751,883.66 | / |
| 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 damping products | 2,242,000.00 | 235,999.98 | 2,006,000.02 | Assets-related | |||
| Automobile composite fiber production project | 441,666.67 | 49,999.98 | 391,666.69 | Assets-related | |||
| Tuopu Intelligent Mechatronics Industrial Park Project | 25,520,238.10 | 692,857.14 | 24,827,380.96 | Assets-related | |||
| Production line transformation project of high-performance vibration control system for cars | 2,756,190.00 | 275,619.04 | 2,480,570.96 | Assets-related | |||
| Production and application technology transformation project of lightweight materials for vehicles | 4,375,000.00 | 437,499.98 | 3,937,500.02 | Assets-related | |||
| Technological Transformation Project of Automobile High-Performance Vibration control system | 7,130,088.73 | 445,630.56 | 6,684,458.17 | Assets-related | |||
| Technological Transformation Project of Automobile Interior and Exterior Trim Parts | 6,877,766.12 | 407,733.24 | 6,470,032.88 | Assets-related |
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
| Technological Transformation Project of Automobile Lightweight Control Arms | 7,003,001.06 | 437,687.58 | 6,565,313.48 | Assets-related | |||
| Technological Transformation Project of Automobile Lightweight Parts Production Line | 7,322,051.57 | 457,628.16 | 6,864,423.41 | Assets-related | |||
| Technological Transformation Project of Automobile High-Performance Vibration control system | 1,723,800.00 | 86,190.00 | 1,637,610.00 | Assets-related | |||
| Technological transformation project of lightweight auto parts | 1,875,120.00 | 93,756.00 | 1,781,364.00 | Assets-related | |||
| Digital workshop project with an annual capacity of 120,000 sets of intelligent brake systems | 3,696,000.00 | 345,000.00 | 190,748.28 | 3,850,251.72 | Assets-related | ||
| Auto parts production and industrial automation projects | 80,166,861.65 | 2,250,000.00 | 77,916,861.65 | Assets-related | |||
| Technological transformation project for the production line of automotive lightweight alloy parts with an annual capacity of 300,000 sets | 8,790,289.93 | 500,000.04 | 8,290,289.89 | Assets-related | |||
| Technological Transformation Project of Automobile High-Performance Vibration control system | 5,471,561.66 | 278,215.02 | 5,193,346.64 | Assets-related | |||
| Tuopu Automobile Electronics Auto Parts Production Project | 7,729,116.00 | 26,379.24 | 7,702,736.76 | Assets-related | |||
| Shenyang Tuopu Auto Parts Base Project | 1,298,611.20 | 291,666.66 | 1,006,944.54 | Assets-related | |||
| Intelligent factory construction project with an annual capacity of 2 million sets of automotive interior trims | 705,833.31 | 55,000.00 | 650,833.31 | Assets-related | |||
| Technological transformation project of car roof, carpet assembly and other interior trims with an annual capacity of 1.6 million sets | 990,000.00 | 82,500.00 | 907,500.00 | Assets-related | |||
| Auto Parts Production Project of Liudong New District | 1,362,511.63 | 42,139.54 | 1,320,372.09 | Assets-related | |||
| Automobile Fabric Production Line Project | 3,686,810.05 | 345,358.18 | 3,341,451.87 | Assets-related | |||
| Pinghu Tuopu Auto Parts Production Project | 12,733,600.00 | 397,925.00 | 12,335,675.00 | Assets-related | |||
| Production line project with an annual capacity of 300,000 sets of related auto parts | 661,542.22 | 43,399.14 | 618,143.08 | Assets-related |
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
| Automobile chassis parts project with an annual capacity of 500,000 sets | 4,507,688.04 | 51,614.75 | 4,456,073.29 | Assets-related | |||
| Tuopu Chassis Auto Parts Industry Base Project | 8,000,000.00 | - | 8,000,000.00 | Assets-related | |||
| Auxiliary project outside the factory | 6,485,266.63 | 196,523.24 | 6,288,743.39 | 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 interior trims | 774,156.58 | 55,296.90 | 718,859.68 | Assets-related | |||
| Technological transformation project for the production line of automobile front and rear axle with an annual output of 200,000 sets | 1,543,602.08 | 189,055.38 | 1,354,546.70 | Assets-related | |||
| Technological transformation project of AVS products & chassis production line with annual capacity of 300,000 sets | 274,247.86 | 24,344.27 | 249,903.59 | Assets-related | |||
| Production line of AVS products & chassis with an annual capacity of 300,000 sets | 1,411,833.95 | 120,249.34 | 1,291,584.61 | Assets-related | |||
| Passenger vehicle chassis AVS products project with an annual capacity of 500,000 sets | 2,376,963.52 | 3,541,300.00 | 306,818.26 | 5,611,445.26 | Assets-related | ||
| Total | 214,204,302.56 | 11,615,416.00 | 9,067,834.90 | 216,751,883.66 |
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
As of September 30, 2015, the said project was substantially completed and put into production operation. Amortized by the depreciation years (10 years)corresponding to the machinery and equipment transformed using the above grants, as of June 30, 2021, there was a remaining sum of RMB 391,666.69 to beamortized over the remaining years.
3. The Company received two grants at RMB 17,000,000.00 and RMB 10,000,000.00 respectively in September 2016 and October 2020, in a gross sum ofRMB 27,000,000.00, and used the sums for Tuopu Intelligent Mechatronics Industrial Park Project. In May 2019, this project was completed step by step and putinto production operation. Amortized by the depreciation years (20 years) corresponding to the buildings and structures constructed using the above grants, as ofJune 30, 2021, there was a remaining sum of RMB 24,827,380.96 to be amortized over the remaining years.
4. Under the “Notice on releasing the subsidies for the first and second batches of district-level partial as-built projects of 2017 Industrial Investment (TechnicalTransformation) in Ningbo” Lun Jing Xin 【2018】 No.55, as circulated by Beilun District Finance Bureau of Ningbo, the Company received the automobilecomposite fiber production project. The Company received the grants at RMB 4,409,904.0 for automobile composite fiber production project in September 2018. Asof January 2018, the said project was substantially completed and put into production operation. Amortized by the remaining useful life corresponding to themachinery and equipment purchased using the above grants, as of June 30, 2021, there was a remaining sum of RMB 2,480,570.96 to be amortized over theremaining years.
5. Under the “Notice on releasing the subsidies for the first and second batches of district-level partial as-built projects of 2017 Industrial Investment (TechnicalTransformation) in Ningbo” Lun Jing Xin 【2018】 No.55, as circulated by Beilun District Finance Bureau of Ningbo, the Company received the grants at RMB7,000,000.00 for production and application technology transformation project of lightweight materials for vehicles. As of January 2018, the said project wassubstantially completed and put into production operation. Amortized by the remaining useful life corresponding to the machinery and equipment purchased usingthe above grants, as of June 30, 2021, 2020, there was a remaining sum of RMB 3,937,500.02 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 remaining useful life corresponding to the machinery andequipment transformed using the above grants, as of June 30, 2021, there was a remaining sum of RMB 6,684,458.17 to be amortized over the remaining years.
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 Trim Parts. As of June 2019, the said
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
project was substantially completed and put into production operation. Amortized by the remaining useful life corresponding to the machinery and equipmenttransformed using the above grants, as of June 30, 2021, there was a remaining sum of RMB 6,470,032.88 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 remaining useful life corresponding to the machinery and equipmenttransformed using the above grants, as of June 30, 2021, there was a remaining sum of RMB 6,565,313.48 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 remaining useful life corresponding to the machinery and equipmenttransformed using the above grants, as of June 30, 2021, there was a remaining sum of RMB 6,864,423.41 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. Amortized by the remaining useful life corresponding to the machinery and equipment transformed using the abovegrants, as of June 30, 2021, there was a remaining sum of RMB 1,637,610.00 to be amortized over the remaining years.
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. Amortized by the remaining useful life corresponding to the machinery and equipment transformed using the above grants, as of June 30, 2021, there was aremaining sum of RMB 1,781,364.00 to be amortized over the remaining years.
12. The Company received the grants at RMB 3,696,000.00 in September 2020 and RMB 3,450,000,000 in May 2021 and used the sums for digital workshopproject with an annual capacity of 120,000 sets of intelligent brake systems. Amortized by the depreciation years corresponding to the machinery and equipmenttransformed using the above grants, as of June 30, 2021, there was a remaining sum of RMB 3,850,251.72 to be amortized over the remaining years.
13. Tuopu Automotive Electronics 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 June 30, 2021, there was a remaining sumof RMB 77,916,861.65 to be amortized over the remaining years.
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
14. Tuopu Automotive Electronics 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 remaining useful life corresponding to the machinery and equipmenttransformed using the above grants, as of June 30, 2021, there was a remaining sum of RMB 8,290,289.89 to be amortized over the remaining years.
15. Tuopu Automotive Electronics 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 substantiallycompleted and put into production operation. Amortized by the remaining useful life corresponding to the machinery and equipment transformed using the abovegrants, as of June 30, 2021, there was a remaining sum of RMB 5,193,346.64 to be amortized over the remaining years.
16. Tuopu Automotive Electronics received the land grants at RMB 7,729,116.00. Amortized by the remaining useful life corresponding to the remaininguseful life corresponding to the land using the above grants, as of June 30, 2021, there was a remaining sum of RMB 7,702,736.76 to be amortized over theremaining years.
17. Tuopu Automotive Electronics 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 June 30, 2021, there was a remaining sum of RMB 1,006,944.54to be amortized over the remaining years.
18. 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 interiortrims 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 June 30, 2021, there was a remaining sum of RMB 650,833.31 to beamortized over the remaining years.
19. 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 interior trims with an
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
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 June 30, 2021, there was aremaining sum of RMB 907,500.00 to be amortized over the remaining years.
20. 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 remaining useful life corresponding to thebuildings and structures constructed and acquired using the above grants, as of June 30, 2021, there was a remaining sum of RMB 1,320,372.09 to be amortized overthe remaining years.
21. 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 remaining useful life corresponding to the machinery and equipment purchased using the above grants, as of June 30, 2021, there was aremaining sum of RMB 3,341,451.87 to be amortized over the remaining years.
22. 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 Interior Trims Production Project. As of January 2017, the said project was substantially completed and put intoproduction operation. Amortized by the depreciation years (20 years) corresponding to the buildings and structures constructed and acquired using the above grants,as of June 30, 2021, there was a remaining sum of RMB 12,335,675.00 to be amortized over the remaining years.
23. Under the “Request for application of special funds for Technological Transformation and Transformation and Upgrading of Sichuan Province in 2015” SuiJing Xin 【2015】 No.28, as circulated by Suining Industrial and Information Technology Commission and Suining Finance Bureau, Sichuan Maigao received thetechnological transformation and upgrading funds in October 2015 at RMB 1,110,000.00, and used the sums for production line project with an annual capacity of300,000 sets of related auto parts. As of October 2015, the said project was substantially completed and put into production operation. Amortized by the remaininguseful life corresponding to the purchased machinery and equipment and constructed plants using the above funds, as of June 30, 2021, there was a remaining sumof RMB 618,143.08 to be amortized over the remaining years.
24. 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 into
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
production operation. Amortized by the depreciation years (48.75 years) corresponding to the land subsidies, as of June 30, 2021, there was a remaining sum ofRMB 4,456,073.29 to be amortized over the remaining years.
25. 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 ofJune 30, 2021, this project has not yet been completed and no amortization is made in this period.
26. 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 remaining useful life corresponding to the buildings and structures using the abovegrants, as of June 30, 2021, there was a remaining sum of RMB 6,288,743.39 to be amortized over the remaining years.
27. 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. As ofJune 30, 2021, this project has not yet been completed and no amortization is made in this period.
28. 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 interior trims. As of January 2018, the said project was substantially completed and put into production operation. Amortized by theremaining useful life corresponding to the machinery and equipment purchased using the above grants, as of June 30, 2021, there was a remaining sum of RMB718,859.68 to be amortized over the remaining years.
29. 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 remaining useful life corresponding to the machinery and equipment purchased using the above funds, as of June 30, 2021, there was aremaining sum of RMB 1,354,546.70 to be amortized over the remaining years.
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
30. 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 AVS products & 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 June 30, 2021, there was a remaining sum of RMB 249,903.59 to beamortized over the remaining years.
31. 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 AVS products & chassis production line with annual capacityof 300,000 sets. As of January 2018, the said project was substantially completed and put into production operation. Amortized by the remaining useful lifecorresponding to the machinery and equipment purchased using the above funds, as of June 30, 2021, there was a remaining sum of RMB1,291,584.61 to beamortized over the remaining years.
32. Zhejiang Towin received technological transformation funds at RMB 2,539,990.00 for passenger vehicle chassis AVS products 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 the remaininguseful life corresponding to the machinery and equipment purchased using the above funds, as of June 30, 2021, there was a remaining sum of RMB 5,611,445.26 tobe amortized over the remaining years.
52. Other non-current liabilities
□Applicable √Non-applicable
53. 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 | Other | Subtotal | |||
| Total sahres | 1,054,987,749.00 | 47,058,823.00 | 47,058,823.00 | 1,102,046,572.00 | |||
| 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 | 1,931,359,023.74 | 5,340,788,538.03 | |
| Other capital reserves | 10,348.78 | 10,348.78 | ||
| Total | 3,409,439,863.07 | 1,931,359,023.74 | 5,340,798,886.81 |
In February 2021, the Company recorded the share premium of RMB 1,931,359,023.74 in thecapital reserve through private offering of stocks. The capital contribution has been verified by BDOCHINA SHUn LUN PAN CERTIFIED PUBLIC ACCOUNTANTS LLP, and a capital verificationreport of Xin Kuai Shi Bao Zi [2021] No. ZF10047 has been issued.
56. Treasury stocks
□Applicable √Non-applicable
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
57. 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 | ||||||||
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
| 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 | -20,631,668.74 | 1,955,317.48 | 1,934,152.65 | 21,164.83 | -18,697,516.09 | |||
| 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 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 | -20,631,668.74 | 1,955,317.48 | 1,934,152.65 | 21,164.83 | -18,697,516.09 | |||
| Total | -20,631,668.74 | 1,955,317.48 | 1,934,152.65 | 21,164.83 | -18,697,516.09 |
58. Special reserves
□Applicable √Non-applicable
59. Surplus reserve
√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 |
| Statutory surplus reserve | 474,769,630.86 | 474,769,630.86 | ||
| Discretionary surplus reserve | ||||
| Reserve fund | ||||
| Business development fund | ||||
| Other | ||||
| Total | 474,769,630.86 | 474,769,630.86 |
| Item | Current period | Previous period |
| Undistributed Profit before Adjustment at the End of Previous Period | 2,868,429,319.48 | 2,502,765,125.43 |
| Adjust the total undistributed profits at the start of the period (increase +, decrease -) | ||
| Undistributed Profit after Adjustment at the Start of the Period | 2,868,429,319.48 | 2,502,765,125.43 |
| Add: net profit attributable to parent company's owner in current period | 459,702,187.79 | 628,200,888.31 |
| Less: withdrawal of statutory surplus reserve | 62,089,021.95 | |
| Withdrawal of discretionary surplus reserve | ||
| Withdrawal of general risk reserve | ||
| Ordinary stock dividend payable | 189,552,010.38 | 200,447,672.31 |
| Ordinary stock dividends converted into equity | ||
| Undistributed profit at the end of the period | 3,138,579,496.89 | 2,868,429,319.48 |
5. The gross impact of other adjustments on the undistributed profit at the beginning of the period isRMB 0.Other notes to undistributed profits:
According to the resolution passed at 2020 Annual General Meeting, the Company distributedRMB 1.72 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 189,552,010.38 weredistributed.
61. 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 | 4,771,583,403.09 | 3,848,796,980.15 | 2,474,078,712.50 | 1,949,836,859.05 |
| Other operations | 145,163,660.11 | 41,850,172.51 | 87,937,102.34 | 22,633,010.46 |
| Total | 4,916,747,063.20 | 3,890,647,152.66 | 2,562,015,814.84 | 1,972,469,869.51 |
| Item | Amount incurred in the current period | Amount incurred in previous period |
| Consumption tax | ||
| Business tax | ||
| Urban Maintenance and Construction Tax | 6,987,224.84 | 5,145,221.44 |
| Education Surcharges | 3,097,328.39 | 2,243,231.45 |
| Resource tax | ||
| Property tax | 10,863,776.45 | 9,774,405.02 |
| Land use tax | 7,573,624.46 | 5,402,129.57 |
| Vehicle and vessel use tax | 2,940.00 | 2,254.20 |
| Stamp duty | 3,239,904.97 | 1,130,206.25 |
| Local education surcharges | 2,064,885.50 | 1,495,487.08 |
| Environmental protection tax | 2,796.57 | 2,084.56 |
| Franchise tax | 1,940.46 | |
| Total | 33,834,421.64 | 25,195,019.57 |
63. Cost of sales
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
| Item | Amount incurred in the current period | Amount incurred in previous period |
| Service expense | 29,531,427.34 | 23,142,909.69 |
| Payroll | 17,233,933.57 | 12,950,448.75 |
| Business hospitality expense | 11,056,660.16 | 6,068,149.72 |
| Repair cost | 6,047,882.34 | 205,042.20 |
| Travel expense | 602,156.99 | 476,473.31 |
| Packaging fee | 96,467.24 | 413,278.89 |
| Vehicle cost | 903,723.57 | 885,612.70 |
| Exhibition fee | 26,663.16 | |
| Other | 2,312,218.65 | 4,232,987.54 |
| Total | 67,811,133.02 | 48,374,902.80 |
| Item | Amount incurred in the current period | Amount incurred in previous period |
| Payroll | 80,651,461.49 | 51,553,859.19 |
| Depreciation expense | 16,725,375.77 | 15,055,379.93 |
| Business hospitality expense | 2,026,288.73 | 1,040,805.06 |
| Vehicle cost | 1,932,384.37 | 1,443,969.29 |
| Taxes | 1,303,839.64 | 754,997.59 |
| Travel expenses | 897,665.31 | 769,304.69 |
| Amortization of intangible assets | 9,358,516.34 | 7,773,710.50 |
| Office expenses | 2,620,048.32 | 1,934,306.52 |
| Insurance premiums | 2,281,744.16 | 2,040,700.64 |
| Intermediary fee | 2,363,351.13 | 2,296,375.51 |
| Utility bills | 1,674,698.17 | 1,161,219.34 |
| Service charge | 4,887,204.46 | 4,994,618.55 |
| Rent | 927,544.88 | 326,112.10 |
| Other | 10,966,557.71 | 9,086,715.87 |
| Total | 138,616,680.48 | 100,232,074.78 |
| Item | Amount incurred in the current period | Amount incurred in previous period |
| Material | 75,976,147.05 | 45,099,044.76 |
| Payroll | 103,433,263.82 | 76,277,851.01 |
| Depreciation and amortization | 30,240,100.76 | 27,617,482.73 |
| Transportation and storage fee | 1,499,838.43 | 1,371,914.97 |
| Energy consumption fee | 10,086,641.70 | 5,841,507.97 |
| Travel expense | 1,479,159.73 | 785,181.94 |
| Trial production expense | 2,023,727.07 | 4,107,806.75 |
| Other | 9,134,832.02 | 4,029,323.30 |
| Total | 233,873,710.58 | 165,130,113.43 |
66. Financial expense
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
| Item | Amount incurred in the current period | Amount incurred in previous period |
| Interest expense | 8,718,663.63 | 13,230,815.39 |
| Less: interest income | -16,268,492.45 | -7,272,076.83 |
| Gain and loss from exchange | 5,154,538.67 | 7,599,266.37 |
| Handling charge | 1,520,103.21 | 1,093,075.56 |
| Total | -875,186.94 | 14,651,080.49 |
| Item | Amount incurred in the current period | Amount incurred in previous period |
| Pinghu Tuopu Auto Parts Production Project | 397,925.00 | 253,225.00 |
| Machine substitution for human project with an annual capacity of 700,000 sets of damping products | 235,999.98 | 236,000.00 |
| Automobile composite fiber production project | 49,999.98 | 50,000.00 |
| Auto parts production and industrial automation projects | 2,250,000.00 | 2,123,234.20 |
| Intelligent factory construction project with an annual capacity of 2 million sets of automotive interior trims | 55,000.00 | 55,000.00 |
| Technological transformation project of car roof, carpet assembly and other interior trims with an annual capacity of 1.6 million sets | 82,500.00 | 82,500.00 |
| Production line project with an annual capacity of 300,000 sets of related auto parts | 43,399.14 | 43,399.14 |
| Automobile chassis parts project with an annual capacity of 500,000 sets | 51,614.75 | 51,614.75 |
| Technological transformation project of production line for automobile front and rear axle with annual output of 200,000 sets | 189,055.38 | 189,055.36 |
| Technological transformation project of production line with annual capacity of 300,000 sets of AVS products & chassis | 24,344.27 | 24,344.28 |
| Technological transformation project of production line with annual capacity of 300,000 sets of AVS products & chassis | 120,249.34 | 120,249.38 |
| Production line transformation project of high-performance vibration control system for cars | 275,619.04 | 275,619.00 |
| Production and application technology transformation project of lightweight materials for vehicles | 437,499.98 | 437,500.02 |
| Auxiliary project outside the factory | 196,523.24 | 226,881.18 |
| Relocation project with an annual capacity of 300,000 sets of automotive interior trims | 55,296.90 | 59,637.72 |
| Shenyang Tuopu Auto Parts Base Project | 291,666.66 | 124,999.98 |
| Tuopu Intelligent Mechatronics Industrial Park Project | 692,857.14 | 247,916.66 |
| Production line transformation project of high-performance vibration control system for cars | 445,630.56 | 163,026.74 |
| Technological Transformation Project of Automobile Interior and Exterior Trim Parts | 407,733.24 | 186,418.95 |
| Technological Transformation Project of Automobile Lightweight Control Arms | 437,687.58 | 152,388.85 |
| Technological Transformation Project of Automobile Lightweight Parts Production Line | 457,628.16 | 155,125.29 |
| Wuhan Automobile Fabric Production Line Project | 345,358.18 | 84,035.57 |
| Auto Parts Production Project of Liudong New District | 42,139.54 | 42,139.58 |
| Technological transformation project for the production line of automotive lightweight alloy parts with an annual capacity of 300,000 sets | 500,000.04 | 473,140.02 |
| Technological Transformation Project of Automobile High-Performance Vibration control system | 86,190.00 | |
| Lightweight auto parts technological transformation project | 93,756.00 | |
| Digital workshop project with an annual capacity of 120,000 sets of intelligent brake systems | 190,748.28 | |
| Auto parts production and industrial automation projects | 278,215.02 | |
| Production Project of Tuopu Automobile Electronics auto parts | 26,379.24 | |
| Passenger vehicle chassis AVS products project with an annual capacity of 500,000 sets | 306,818.26 | |
| Baoji Technological Transformation project subsidies | 33,333.33 | |
| Tax subsidies | 1,245,120.75 | |
| Special funds for epidemic prevention | 20,000.00 | |
| Stable employment subsidies | 390,070.02 | 682,915.55 |
| Slope protection project construction subsidies | 30,000.00 | |
| Statistical funding subsidies granted | 6,000.00 | |
| Tax incentives | 350.23 | |
| Subsidies for resumption of work and epidemic response supplies | 2,250.00 | |
| Social security premium subsidies | 897.00 | 566,466.18 |
| District foreign trade incentives | 90,200.00 | |
| Patent subsidies | 55,000.00 | |
| Energy saving subsidies | 130,000.00 | |
| Subsidies granted from finance bureau | 50,000.00 | |
| Power grants | 1,066,871.59 | 54,360.00 |
| Subsidies offered for resumption of work and production activities | 507,194.00 | |
| Capacity increase incentives | 450,000.00 | |
| Subsidies for “on-the-job training” | 102,000.00 | |
| R&D subsidies | 105,502.00 | |
| Total | 11,183,175.51 | 9,330,641.71 |
| Item | Amount incurred in the current period | Amount incurred in previous period |
| Long-term equity investment income measured by cost method | 8,441,193.70 | 6,747,676.66 |
| Long-term equity investment income measured by equity method | ||
| Investment income from disposal of long-term equity investment | ||
| 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 | ||
| Income from debt restructuring | ||
| Investment income from wealth management products | 4,324,874.65 | 10,941,545.79 |
| Total | 12,766,068.35 | 17,689,222.45 |
| Sources of income from changes in fair value | Amount incurred in the current period | Amount incurred in previous period |
| Transactional financial assets | -2,613,733.23 | |
| Including: income from changes in fair value generated by derivative financial instruments | ||
| Transactional financial liabilities | ||
| Investment real estate measured at fair value | ||
| Total | -2,613,733.23 |
| Item | Amount incurred in the current period | Amount incurred in previous period |
| Bad debt loss on accounts receivable | -1,338,732.94 | 119,653.36 |
| Bad debt loss on accounts receivable | -23,131,411.91 | -1,422,975.30 |
| Bad debt loss on other receivables | -1,131,324.02 | 7,206,340.35 |
| Impairment loss of debt investment | ||
| Impairment loss of other debt investment | ||
| Bad debt loss of long-term receivables | ||
| Impairment loss of contract assets | ||
| Total | -25,601,468.87 | 5,903,018.41 |
| 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 | -9,508,691.87 | -1,976,118.60 |
| 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 | ||
| 12. Others | ||
| Total | -9,508,691.87 | -1,976,118.60 |
| Item | Amount incurred in the current period | Amount incurred in previous period |
| Income from disposal of assets | -1,258,747.17 | -1,048,280.34 |
| Total | -1,258,747.17 | -1,048,280.34 |
| 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 | |||
| 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 | 2,754,867.06 | 2,708,400.00 | 2,754,867.06 |
| Compensation income | 3,931,684.14 | 3,931,684.14 | |
| Other | 118,319.40 | 65,093.50 | 118,319.40 |
| Total | 6,804,870.60 | 2,773,493.50 | 6,804,870.60 |
| Item | Amount incurred in the current period | Amount incurred in previous period | Assets-related/Income-related |
| Import and export project subsidies | 1,200,000.00 | Income-related | |
| District Foreign Trade Reward | 528,400.00 | Income-related | |
| High-tech subsidies | 700,000.00 | Income-related | |
| Industrial transformation and upgrading subsidies | 200,000.00 | Income-related | |
| Industrial Development Bureau Fund | 30,000.00 | Income-related |
| Enterprises Billboard Bonus | 50,000.00 | Income-related | |
| Special fund subsidies for scientific and technological development | 900,000.00 | Income-related | |
| "Made in Zhejiang Selected Products" Award | 200,000.00 | Income-related | |
| Tax refund | 410,369.58 | Income-related | |
| VAT exempts for veterans and poor households | 26,850.00 | Income-related | |
| Tax exempt in two years and tax reduced by half in three years | 277,722.00 | Income-related | |
| VAT additional deduction | 65,225.48 | Income-related | |
| "Economy Billboard" subsidies | 100,000.00 | Income-related | |
| Production safety subsidies | 10,000.00 | Income-related | |
| Invention patent subsidies | 4,200.00 | Income-related | |
| Technology subsidies | 490,500.00 | Income-related | |
| Positive incentives for steady growth | 20,000.00 | Income-related | |
| “Specialized and specific new” SMEs incentives | 100,000.00 | Income-related | |
| Plant expansion incentives | 150,000.00 | Income-related | |
| Total | 2,754,867.06 | 2,708,400.00 |
| 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 | |||
| Including: Loss on disposal of fixed assets | |||
| Loss on disposal of intangible assets | |||
| Loss from debt restructuring | |||
| Loss from exchange of non-monetary assets | |||
| External donation | |||
| Special funds for water conservancy construction | 28,454.87 | 44,509.74 | |
| Other | 408,306.96 | 728,755.99 | 408,306.96 |
| Total | 436,761.83 | 773,265.73 | 408,306.96 |
| Item | Amount incurred in the current period | Amount incurred in previous period |
| Income tax expense in the current | 78,718,313.52 | 49,948,061.03 |
| period | ||
| Deferred income tax expense | 2,113,729.28 | 2,363,643.45 |
| Total | 80,832,042.80 | 52,311,704.48 |
| Item | Amount incurred in the current period |
| Total profits | 544,173,863.25 |
| Income tax expense calculated at the statutory/applicable tax rate | 81,626,079.49 |
| Impact of different tax rates applied to subsidiaries | -5,786,263.60 |
| Adjusted impact of income tax in prior periods | |
| Impact of non-taxable income | |
| Impact of non-deductible costs, expenses and losses | 4,992,226.91 |
| 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 | |
| Income tax expense | 80,832,042.80 |
| Item | Amount incurred in the current period | Amount incurred in previous period |
| Receipt of temporary loans | -4,343,921.23 | 8,074,520.09 |
| Interest income | 16,268,492.45 | 7,272,076.83 |
| Government grants | 16,475,895.19 | 18,667,256.71 |
| Income from compensation and fines | 3,931,684.14 | |
| Other | 118,319.40 | 206,533.96 |
| Total | 32,450,469.95 | 34,220,387.59 |
| Item | Amount incurred in the current period | Amount incurred in previous period |
| Payment of temporary loans | 310,455.18 | |
| Transportation expense | 56,405,466.66 | |
| Storage expense | 19,474,853.58 | |
| Business hospitality expense | 13,082,948.89 | 7,108,954.78 |
| Repair cost | 6,035,707.07 | 205,042.20 |
| R&D spending | 100,200,346.00 | 61,234,779.69 |
| Travel expense | 1,499,822.30 | 1,245,778.00 |
| Insurance premium | 2,281,744.16 | 2,040,700.64 |
| Office expense | 2,620,048.32 | 1,934,306.52 |
| Vehicle expense | 2,836,107.94 | 2,329,581.99 |
| Service charge | 34,418,631.80 | 26,209,658.82 |
| Intermediary fee | 2,185,372.26 | 2,296,375.51 |
| Packaging fee | 96,467.24 | 413,278.89 |
| Utility bill | 1,674,698.17 | 1,161,219.34 |
| Rent | 927,544.88 | 326,112.10 |
| Other | 36,355,360.51 | 24,234,014.50 |
| Total | 204,214,799.54 | 206,930,578.40 |
| Additional Information | Amount in the current period | Amount in previous period |
| 1. Reconciliation of net profit to cash flows from operational activities: | ||
| Net profit | 463,341,820.45 | 215,549,761.18 |
| Add: provision for impairment of assets | 9,508,691.87 | 1,976,118.60 |
| Credit impairment provision | 25,601,468.87 | -5,903,018.41 |
| Depreciation of fixed assets, oil and gas assets, productive biological assets | 243,243,181.58 | 208,556,734.98 |
| Depreciation of right-of-use assets | ||
| Amortization of Intangible Assets | 12,405,545.82 | 10,093,483.56 |
| Amortization of long-term prepaid expenses | 22,951,301.82 | 16,770,882.46 |
| Losses on disposal of fixed assets, intangible assets and other long-term assets (income as in “-”) | 1,258,747.17 | 1,048,280.34 |
| Losses on scrapping of fixed assets (income as in “-”) | ||
| Losses on fair value changes (income as in “-”) | 2,613,733.23 | |
| Financial expenses (income as in “-”) | 7,745,204.27 | 11,113,253.95 |
| Losses on investment (income as in “-”) | -12,766,068.35 | -17,689,222.45 |
| Decrease on deferred income tax assets (increase as in “-”) | -6,049,708.92 | -935,368.31 |
| Increase on deferred income tax liabilities (decrease as in “-”) | 5,809,657.58 | 3,299,011.76 |
| Decrease on inventories (increase as in “-”) | -114,599,125.33 | 101,550,734.64 |
| Decrease on operational receivables (increase as in “-”) | -717,851,822.93 | 190,358,408.01 |
| Increase on operational payables (decrease as in “-”) | 802,122,250.83 | -248,395,492.65 |
| Other | ||
| Net cash flow generated by operating activities | 745,334,877.96 | 487,393,567.66 |
| 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 | 1,709,296,801.98 | 798,996,008.06 |
| Less: opening balance of cash | 674,866,422.08 | 715,182,068.12 |
| Add: closing balance of cash equivalents | ||
| Less: opening balance of cash equivalents | ||
| Net additions to balance of equivalents | 1,034,430,379.90 | 83,813,939.94 |
| Item | Balance at the end of the period | Balance at the beginning of the period |
| 1. Cash | 1,709,296,801.98 | 674,866,422.08 |
| Including: cash on hand | 10,329.69 | 8,899.73 |
| Bank deposits that can be used for payment at any time | 1,709,286,472.29 | 674,857,522.35 |
| Other cash and bank balances 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 | 1,709,296,801.98 | 674,866,422.08 |
| Includnig: cash and cash equivalents that are restricted for us by the parent company or subsidiary within the group |
as contained in the consolidated balance sheet, because the note margin deposit for security at RMB112,805,901.59 is not deemed as cash and cash equivalents.
80. Notes to items in the statement of changes in owners' equity
Give the name of the item “others” adjusting the balance at the end of previous year and the amount ofadjustment:
□Applicable √Non-applicable
81. Assets with restricted ownership or use rights
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
| Item | Book value at the end of the period | Reason for restricted use |
| Cash and bank balances | 112,805,901.59 | Bank Acceptance Draft Deposit |
| Notes receivable | 350,653,610.60 | Pledge |
| Inventories | ||
| Fixed assets | 46,907,530.34 | Mortgage |
| Intangible assets | 6,698,677.70 | Mortgage |
| Receivables financing | 811,941,024.18 | Pledge |
| Total | 1,329,006,744.41 | / |
| Item | Foreign currency balance at the end of the period | Converted exchange rate | Balance converted to RMB at the end of the period |
| Cash and bank balances | - | - | 134,802,841.82 |
| Including: USD | 10,735,701.11 | 6.4601 | 69,353,702.74 |
| EUR | 171,142.09 | 7.6862 | 1,315,432.31 |
| HKD | |||
| AUD | 0.56 | 4.8528 | 2.72 |
| CAD | 869,179.60 | 5.2097 | 4,528,164.96 |
| SEK | 581,275.41 | 0.7579 | 440,548.63 |
| BRL | 25,240,456.81 | 1.3037 | 32,905,983.54 |
| RM | 10,734,828.79 | 1.5560 | 16,703,393.60 |
| PLN | 5,617,974.79 | 1.7009 | 9,555,613.32 |
| Accounts receivable | - | - | 398,464,440.61 |
| Including: USD | 39,975,089.32 | 6.4601 | 258,243,074.52 |
| EUR | 3,470,895.04 | 7.6862 | 26,677,993.46 |
| HKD | |||
| CAD | 19,764,367.57 | 5.2097 | 102,966,425.73 |
| BRL | 3,389,196.79 | 1.3037 | 4,418,495.86 |
| RM | 3,935,284.18 | 1.5560 | 6,123,302.18 |
| GBP | 3,931.20 | 8.9410 | 35,148.86 |
| Long-term loans | - | - | |
| Including: USD | |||
| EUR | |||
| HKD | |||
| Accounts payable | - | - | 87,994,808.51 |
| Including: USD | 6,550,089.01 | 6.4601 | 42,314,230.01 |
| EURO | 541,155.32 | 7.6862 | 4,159,428.02 |
| CAD | 7,408,048.44 | 5.2097 | 38,593,709.94 |
| BRL | 272,241.82 | 1.3037 | 354,921.66 |
| RM | 1,374,696.93 | 1.5560 | 2,139,028.43 |
| PLN | 65,322.41 | 1.7009 | 111,106.89 |
| SEK | 425,364.24 | 0.7579 | 322,383.56 |
| Category | Amount | Presented Item | Amount included into current profit and loss |
| Machine substitution for human project with an annual capacity of 700,000 sets of damping products | 4,720,000.00 | Deferred income | 235,999.98 |
| Automobile composite fiber production project | 1,000,000.00 | Deferred income | 49,999.98 |
| Tuopu Intelligent Mechatronics Industrial Park Project | 27,000,000.00 | Deferred income | 692,857.14 |
| Production line transformation project of high-performance vibration control system for cars | 4,409,904.00 | Deferred income | 275,619.04 |
| Production and application technology transformation project of lightweight materials for vehicles | 7,000,000.00 | Deferred income | 437,499.98 |
| Technological Transformation Project of Automobile High-Performance Vibration control system | 8,250,992.00 | Deferred income | 445,630.56 |
| Technological Transformation Project of Automobile Interior and Exterior Trim Parts | 7,794,112.00 | Deferred income | 407,733.24 |
| Technological Transformation Project of Automobile Lightweight Control Arms | 8,085,312.00 | Deferred income | 437,687.58 |
| Technological Transformation Project of Automobile Lightweight Parts Production Line | 8,443,472.00 | Deferred income | 457,628.16 |
| Technological Transformation Project of Automobile High-Performance Vibration control system | 1,723,800.00 | Deferred income | 86,190.00 |
| Technological transformation project of lightweight auto parts | 1,875,120.00 | Deferred income | 93,756.00 |
| Digital workshop project with an annual capacity of 120,000 sets of intelligent brake systems | 4,041,000.00 | Deferred income | 190,748.28 |
| Auto parts production and industrial automation projects | 90,000,000.00 | Deferred income | 2,250,000.00 |
| 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 | 500,000.04 |
| Technological Transformation Project of Automobile High-Performance Vibration control system | 5,564,300.00 | Deferred income | 278,215.02 |
| Tuopu Automobile Electronics Auto Parts Production Project | 7,729,116.00 | Deferred income | 26,379.24 |
| Shenyang Tuopu Auto Parts Base Project | 2,000,000.00 | Deferred income | 291,666.66 |
| Intelligent factory construction project with an annual capacity of 2 million sets of automotive interior trims | 1,100,000.00 | Deferred income | 55,000.00 |
| Technological transformation project of car roof, carpet assembly and other interior trims with an annual capacity of 1.6 million sets | 1,650,000.00 | Deferred income | 82,500.00 |
| Auto Parts Production Project of Liudong New District | 1,510,000.00 | Deferred income | 42,139.54 |
| Automobile Fabric Production Line Project | 4,104,000.00 | Deferred income | 345,358.18 |
| Pinghu Tuopu Auto Parts Production Project | 14,470,000.00 | Deferred income | 397,925.00 |
| Production line project with an annual capacity of 300,000 sets of related auto parts | 1,110,000.00 | Deferred income | 43,399.14 |
| Automobile chassis parts project with an annual capacity of 500,000 sets | 5,032,438.00 | Deferred income | 51,614.75 |
| Tuopu Chassis Auto Parts Industry Base Project | 8,000,000.00 | Deferred income | |
| Auxiliary project outside the factory | 7,000,011.00 | Deferred income | 196,523.24 |
| 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 interior trims | 965,300.00 | Deferred income | 55,296.90 |
| Technological transformation project for the production line of automobile front and rear axle with an annual output of 200,000 sets | 3,056,045.00 | Deferred income | 189,055.38 |
| Technological transformation project of AVS products & chassis production line with annual capacity of 300,000 sets | 448,715.00 | Deferred income | 24,344.27 |
| Production line of AVS products & chassis with an annual capacity of 300,000 sets | 2,133,330.00 | Deferred income | 120,249.34 |
| Passenger vehicle chassis AVS products project with an annual capacity of 500,000 sets | 6,081,290.00 | Deferred income | 306,818.26 |
| Capacity increase incentives | 450,000.00 | Other income | 450,000.00 |
| employment retention grants | 390,070.02 | Other income | 390,070.02 |
| Subsidies for “on-the-job training” | 102,000.00 | Other income | 102,000.00 |
| R&D subsidies | 105,502.00 | Other income | 105,502.00 |
| Power grants | 1,066,871.59 | Other income | 1,066,871.59 |
| Social security premium subsidies | 897.00 | Other income | 897.00 |
| Special fund subsidies for scientific and technological development | 900,000.00 | Non-operating income | 900,000.00 |
| "Made in Zhejiang Selected Products" Award | 200,000.00 | Non-operating income | 200,000.00 |
| Tax refund | 410,369.58 | Non-operating income | 410,369.58 |
| VAT exempts for veterans and poor households | 26,850.00 | Non-operating income | 26,850.00 |
| Tax exempt in two years and tax reduced by half in three years | 277,722.00 | Non-operating income | 277,722.00 |
| VAT additional deduction | 65,225.48 | Non-operating income | 65,225.48 |
| "Economy Billboard" subsidies | 100,000.00 | Non-operating income | 100,000.00 |
| Production safety subsidies | 10,000.00 | Non-operating income | 10,000.00 |
| Invention patent subsidies | 4,200.00 | Non-operating income | 4,200.00 |
| Technology subsidies | 490,500.00 | Non-operating income | 490,500.00 |
| Positive incentives for steady growth | 20,000.00 | Non-operating income | 20,000.00 |
| “Specialized and specific new” SMEs incentives | 100,000.00 | Non-operating income | 100,000.00 |
| Plant expansion incentives | 150,000.00 | Non-operating income | 150,000.00 |
| Total | 263,168,464.67 | 13,938,042.57 |
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
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 note:
□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
6 combined entities were added during the reporting period, due to:
The Company incorporated TUOPU POLAND SP.Z.O.O, Huzhou Tuopu Automobile Parts Co., Ltd, Xi’an Tuopu Automobile Parts Co., Ltd, Shanghai TuopuAutomobile Parts Co., Ltd, Tuopu Photovoltaic Technology (Ningbo Beilun) Co., Ltd., and Tuopu Photovoltaic Technology (Ningbo Hangzhou Bay New Area) Co.,Ltd., which were included into the scope of consolidation from the date of establishment.
6. Other
□Applicable √Non-applicable
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
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 | Business Nature | Percentage of shares held (%) | 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 | Trading | 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 | |
| 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 Automotive Electronics | 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 | |
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
| 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 | |
| Tuopu Poland | Poland | Poland | Manufacturing | 100.00 | Establishment | |
| Huzhou Tuopu | Huzhou | Huzhou | Manufacturing | 100.00 | Establishment | |
| Shanghai Tuopu | Shanghai | Shanghai | Manufacturing | 100.00 | Establishment | |
| i’an Tuopu | Xi’an | Xi’an | Manufacturing | 100.00 | Establishment | |
| Photovoltaic Technology Beilun | Ningbo | Ningbo | Manufacturing | 100.00 | Establishment | |
| Photovoltaic Technology Hangzhou Bay | 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 | 3,109,869.44 | 2,057,754.36 |
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
(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 | 期初余额 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 | 39,671,843.05 | 3,121,365.58 | 42,793,208.63 | 38,593,709.94 | 38,593,709.94 | 17,873,744.68 | 6,467,320.70 | 24,341,065.38 | 27,491,819.92 | 27,491,819.92 | ||
| 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 | 280,412,603.97 | 6,346,672.32 | 6,346,672.32 | 11,115,861.92 | 143,869,719.63 | -821,466.97 | -866,978.43 | -1,527,841.01 |
(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 note:
□Applicable √Non-applicable
2. Transactions leading to a change in the share of owner's equity in the subsidiary and the controlover 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 | 88,352,024.40 | 210,065,642.81 | 138,270,376.94 | 195,623,586.03 |
| Including: cash and cash equivalents | 6,134,984.58 | 66,032,557.54 | 21,987,735.55 | 37,219,502.34 |
| Non-current assets | 36,874,516.36 | 35,523,468.77 | 36,800,692.85 | 33,719,670.26 |
| Total assets | 125,226,540.76 | 245,589,111.58 | 175,071,069.79 | 229,343,256.29 |
| Current liabilities | 33,605,109.38 | 74,773,116.93 | 49,632,204.32 | 73,608,535.10 |
| Non-current liabilities | ||||
| Total liabilities | 33,605,109.38 | 74,773,116.93 | 49,632,204.32 | 73,608,535.10 |
| Minority shareholders' equity | ||||
| Equity attributable to shareholders of the parent company | 91,621,431.38 | 170,815,994.65 | 125,438,865.47 | 155,734,721.19 |
| Share of net assets calculated at the percentage of shares held | 45,810,715.69 | 85,407,997.33 | 62,719,432.74 | 77,867,360.60 |
| Adjusted events | -277,939.83 | -2,559,512.71 | -143,018.70 | -785,497.31 |
| --Goodwill | ||||
| --Unrealized profits from internal transactions | -277,939.83 | -2,559,512.71 | -143,018.70 | -785,497.31 |
| -Others | ||||
| Book value of equity investment in joint ventures | 45,532,775.86 | 82,848,484.62 | 62,576,414.04 | 77,081,863.29 |
| Fair value of equity investment in joint ventures with public offers | ||||
| Operating income | 63,242,426.20 | 204,377,100.32 | 44,353,074.46 | 179,258,283.48 |
| Financial expenses | 81,910.01 | -445,129.03 | -278,259.13 | 126,656.79 |
| Income tax expense | 1,043,421.81 | 2,160,269.23 | 883,012.09 | 3,525,086.15 |
| Net profit | 5,912,723.66 | 11,533,242.64 | 5,003,735.18 | 9,615,010.33 |
| Net profit from discontinued operations | ||||
| Other comprehensive income | ||||
| Total comprehensive income | 5,912,723.66 | 11,533,242.64 | 5,003,735.18 | 9,615,010.33 |
| 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 | 60,695,988.94 | 74,131,960.92 | ||
| Non-current assets | 5,669,768.74 | 6,611,365.37 | ||
| Total assets | 66,365,757.68 | 80,743,326.29 | ||
| Current liabilities | 40,034,510.50 | 53,467,156.43 | ||
| Non-current liabilities | ||||
| Total Liabilities | 40,034,510.50 | 53,467,156.43 | ||
| Minority shareholders' equity | ||||
| Equity attributable to shareholders of the parent company | 26,331,247.18 | 27,276,169.86 | ||
| Share of net assets calculated by the percentage of shares held | 10,269,186.40 | 10,637,706.25 | ||
| Adjusted events | 86,730.40 | |||
| --Goodwill | ||||
| --Unrealized profits from internal transactions | 86,730.40 | |||
| --Other | ||||
| Book value of equity investment in associates | 10,355,916.80 | 10,637,706.25 | ||
| Fair value of equity investment in associates with public offers | ||||
| Operating income | 34,016,896.86 | 32,485,456.91 | ||
| Net profit | -722,537.06 | -1,339,172.95 | ||
| Net profit from discontinued operations | ||||
| Other comprehensive income | ||||
| Total comprehensive income | -722,537.06 | -1,339,172.95 | ||
| Dividends received from associates in this year |
X. Risks related to financial instruments
√Applicable □Non-applicable
The Company faces various financial risks in the course of its operations: credit risk, liquidity riskand market risk (including exchange rate risk, interest rate risk and other price risks). The said financialrisks and the risk management policies adopted by the Company to reduce these risks are describedbelow:
The Board of Directors is responsible for planning and establishing the risk management structureapplicable to the Company, laying down the risk management policies and guidelines, and supervisingthe implementation of risk management measures. The Company has laid down some risk managementpolicies to identify and analyze the risks exposed to it. These risk management policies clearly identifyspecific risks, ranging from market risk, credit risk to liquidity risk management. The Company assessesthe market environment and changes in its business activities at regular intervals in order to decidewhether to update the risk management policy and system or not. Its risk management is carried out bythe financial department in accordance with the policies approved by the Board of Directors. FinancialDivision will identify, evaluate and avoid related risks by maintaining a close cooperation with otherbusiness units within the Company. The internal audit division conducts regular audits on riskmanagement control and procedures, and reports the audit results to the Auditing Committee of theCompany.
The Company carries out the diversification of risks in financial instruments through appropriatediversified investment and business portfolios, and prepares appropriate risk management policies toreduce the risk concentrated in a single industry, specific region or specific counterparty.
(1) Credit risk
Credit risk refers to the risk of the company's financial losses due to the failure of the counterpartyto perform its contractual obligations.
The credit risk exposed to the Company mainly arises from Cash and bank balances, notesreceivable, accounts receivable, accounts receivable financing, other receivables, as well as those debtinstrument investments and derivative financial assets that are not included in the scope of impairmentassessment and are measured at fair value and whose changes are included in the current profit and loss.On the balance sheet date, the book value of the Company's financial assets has represented itsmaximum credit risk exposure.
The Cash and bank balances owned by the Company are mainly bank deposits deposited inwell-repuated state-owned banks with high credit ratings and other large and medium-sized listed banks.In the opinion of the Company, there is no significant credit risk, and there will be almost no critical losscaused by bank 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 market
condition. The Company will monitor the credit record of each customer at regular intervals. For thosfound 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 June 30, 2021, if other variables remain the same, the borrowing interest rate calculated byfloating interest rate rises or falls by 100 base points, the Company's net profit will decrease or increaseby RMB 7,731,297.45. In the opinion of the management,100 base points can reasonably reflect thereasonable 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, to lowerthe exchange rate risk. In addition, the Company may also sign forward foreign exchange contracts orcurrency swap contracts to avoid exchange rate risks. In the current period and the previous period, thecompany 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 dollars | Other foreign currencies | Total | US dollars | Other foreign currencies | Total | |
| Cash and bank balances | 69,353,702.74 | 65,449,139.08 | 134,802,841.82 | 32,195,685.40 | 28,698,091.63 | 60,893,777.03 |
| Accounts receivable | 258,243,074.52 | 140,221,366.09 | 398,464,440.61 | 210,244,792.96 | 112,742,504.75 | 322,987,297.71 |
| Accounts payable | 42,314,230.01 | 45,680,578.50 | 87,994,808.51 | 39,794,482.93 | 35,476,823.21 | 75,271,306.14 |
| Total | 369,911,007.27 | 251,351,083.67 | 621,262,090.94 | 282,234,961.29 | 176,917,419.59 | 459,152,380.88 |
| 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 | 401,276,432.56 | 401,276,432.56 | ||
| 1. Financial assets at fair value through profit or loss in this period | 401,276,432.56 | 401,276,432.56 | ||
| (1) Investment in debt instruments | ||||
| (2) Investment in equity instrument | 1,276,432.56 | 1,276,432.56 | ||
| 3)Derivative Financial Assets | ||||
| (4) Short-term wealth management products | 400,000,000.00 | 400,000,000.00 | ||
| 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 | ||||
| (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 | 874,151,202.33 | 874,151,202.33 | ||
| Total assets constantly measured at fair value | 401,276,432.56 | 874,151,202.33 | 1,275,427,634.89 | |
| (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) Held-for-sale assets | ||||
| Total assets that are not continuously measured at fair value |
| Total liabilities not continuously measured at fair value |
| 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 | 62.94 | 62.94 |
The ultimate controlling party of the Company is Jianshu Wu.
2. Subsidiaries of the Company
More details of the subsidiaries of the Company are available in “Note IX. Equity in Other Entities”.
√Applicable □Non-applicable
3. Joint ventures and associates of the Company
More details of important joint ventures or associates of the Company are available in “Note IX.Equity in Other Entities”.
□Applicable √Non-applicable
The situation of other joint ventures or associates that have related party transactions with the companyduring the current period or the balance of the related party transactions with the Company in theprevious period is listed as follows.
√Applicable □Non-applicable
| 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 |
| 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") | A company controlled by the brother-in-law of the officer 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 |
| Gloyel Electrical (Ningbo) Co., Ltd. (hereinafter referred to as " Gloyel Electrical”) | 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 |
| Ningbo Hongke | Material | 40,937,837.26 | 27,140,831.80 |
| Ninghai Jinsuoer | Material | 6,563,661.02 | 4,873,697.05 |
| Ninghai Saipu | Material | 1,424,042.76 | 1,101,835.90 |
| Ninghai Jinxin | Material | 6,908,172.56 | 2,414,671.66 |
| Ninghai Zhonghao | Material | 7,989,179.29 | 5,188,217.35 |
| Ninghai Qingqing | Material | 2,946,705.13 | 2,469,393.63 |
| Tuopu Electrical Appliances | Material | 793,100.56 | 571,615.71 |
| Ningbo Borgers | Material | 5,159,310.50 | 4,463,648.28 |
| Gloyel Motor | Material, equipment | 13,211,110.14 | 13,124,686.35 |
| Gloyel Intelligent | Equipment | 5,175,221.23 | 28,318.59 |
| Total | 91,108,340.45 | 61,376,916.32 |
| 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. | 3,982,471.60 | 2,100,976.08 |
| Ningbo Borgers | Goods, labor services, et al. | 57,294,993.02 | 49,116,653.23 |
| Antolin Tuopu | Goods, labor services, et al. | 3,080,494.76 | 4,043,360.77 |
| Total | 64,357,959.38 | 55,260,990.08 |
□Applicable √Non-applicable
Related management/outsourcing
□Applicable √Non-applicable
(3). Related leases
The Company as landlord:
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
| 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 | 337,500.00 | 325,000.00 |
| Gloyel Motor | Houses and structures | 108,000.00 | 108,000.00 |
| Total | 445,500.00 | 433,000.00 |
| Name of tenant | Kind of lease assets | Rental income recognized in the current period | Rental income recognized in previous period |
| Gloyel Electrical | Houses and structures | 3,129,489.91 | 0.00 |
| Item | Amount incurred in the current period | Amount incurred in previous period |
| Remuneration from key management members | 2,707,471.80 | 2,646,987.58 |
(8). Other related-party transactions
□Applicable √Non-applicable
6. Accounts receivable and payable of related parties
(1). Receivables
√Applicable□Non-applicable
Unit：Yuan Currency：RMB
| 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 | 23,677,969.25 | 1,183,898.46 | 29,293,492.21 | 1,464,674.61 |
| Accounts receivable | Tuopu Electrical Appliances | 2,206,002.44 | 110,300.12 | 2,638,160.39 | 131,908.02 |
| Accounts receivable | Antolin Tuopu | 2,083,239.87 | 104,161.99 | 2,326,696.22 | 116,334.81 |
| Other non-current assets | Gloyel Intelligent | 31,125,255.00 | 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 | 1,184,149.75 | 5,202,246.00 |
| Accounts payable | Ninghai Jinsuoer | 4,866,872.90 | 5,293,108.17 |
| Accounts payable | Ninghai Saipu | 1,333,115.40 | 1,108,699.60 |
| Accounts payable | Ninghai Jinxin | 5,495,590.77 | 5,191,550.61 |
| Accounts payable | Tuopu Electrical Appliances | 511,566.94 | 160,365.20 |
| Accounts payable | Ninghai Zhonghao | 7,724,971.72 | 4,949,234.52 |
| Accounts payable | Ninghai Qingqing | 5,223,923.06 | 2,135,445.47 |
| Accounts payable | Ningbo Hongke | 39,169,025.52 | 35,419,299.60 |
| Accounts payable | Gloyel Motor | 6,296,698.16 | 7,111,998.16 |
3. Particulars of cash-settled share-based payment
□Applicable √Non-applicable
4. Modification and termination of share-based payment
□Applicable √Non-applicable
5. Other
□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 thecontract is RMB 210 million, the original value and net value of properties on mortgage is RMB118,839,780.32 and RMB 46,907,530.34 respectvely; the original value and net value of land onmortgage is RMB 10,659,462.00 and RMB 6,698,677.70 respectvely.
(2) On 27 August 2020, the Company signed a loan contract with the Export-Import Bank of ChinaNingbo 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 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 ofJune 30, 2021, the short-term loan balance under thecontract is RMB 190 million, the original value and net value of properties on mortgage is RMB118,839,780.32 and RMB 46,907,530.34 respectvely; the original value and net value of land onmortgage is RMB 10,659,462.00 and RMB 6,698,677.70 respectvely.
(3) On 24 June 2021, the Company signed a loan contract with the Export-Import Bank of ChinaNingbo Branch, with the granted credit line at RMB 150 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 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 June 30, 2021, the short-term loan balance under thecontrtact is RMB 190 million, the original value and net value of properties on mortgage is RMB118,839,780.32 and RMB 46,907,530.34 respectvely; the original value and net value of land onmortgage is RMB 10,659,462.00 and RMB 6,698,677.70 respectvely.
(4) 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 invesmtnet agreement with Administration Committee of Ningbo Economic &Technological Development Zone (NETD). Under the said industrial land invesmtnet 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).
(5) Tuopu Parts signed the note pool cooperation agreement 33100000 Zhe Shang Piao Chi Zi 2017No.01470, the asset pool cooperation agreement 33100000 Zhe Shang Zi Chan Chi Zi 2017 No.01470,and the asset pool pledge guarantee contract 33100000 Zhe Shang Zi Chan Chi Zi 2017 No.01471 withChina Zheshang Bank Beilun Branch. As of June 30, 2021, there were bank acceptance notes in a sumof RMB 563,979,236.34 under pledge and a part of the pledged notes receivable converted into pledgedbank deposits in a sum of RMB 74,301,803.59, and the notes payable in a sum of RMB 632,281,039.93were issued.
(6) 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 June 30, 2021, there were bank acceptancenotes in a sum of RMB 350,653,610.60 under pledge and a part of the pledged notes receivableconverted into pledged bank deposits in a sum of RMB 35,961,339.23, and the notes payable in a sum ofRMB 309,853,212.61 were issued.
(7) 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 June 30, 2021, there were bank acceptance notes in a sum of RMB 228,688,761.20 underpledge, and the notes payable in a sum of RMB 189,953,767.34were issued.
(8) Tuopu Intelligent Brake signed the note pool cooperation agreement 9411202000000006 andthe maximum pledge contract ZZ9411202000000006 with SPDB Ningbo Development Zone
Sub-branch. As of June 30, 2021, the bank acceptance notes in a sum of RMB 23,140,000.00 were putunder pledge and the notes payable in a sum of RMB 15,969,585.96 were issued.
(9) Ningbo Qianhui signed the maximum pledge contract 06001PC20198005 with Bank of NingboNinghai Branch. As of June 30, 2021, there were bank acceptance notes in a sum of RMB 13,633,026.64under pledge and a part of the pledged notes receivable converted into pledged bank deposits in a sum ofRMB 2,542,758.77, and the notes payable in a sum of RMB 15,450,827.54 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
3. Sales return
□Applicable √Non-applicable
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). Pospective 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 | 1,119,078,106.37 |
| Subtotal within 1 year | 1,119,078,106.37 |
| 1 to 2 years | 154,974,823.30 |
| 2-3 years | 78,137,018.39 |
| Over 3 years | |
| 3 to 4 years | |
| 4 to 5 years | |
| Over 5 years | 323,215.01 |
| Bad debt provision | -95,215,708.18 |
| Total | 1,257,297,454.89 |
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
(2). Categorial 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 | 1,352,513,163.07 | 100.00 | 95,215,708.18 | 7.04 | 1,257,297,454.89 | 1,965,908,204.74 | 100.00 | 124,970,891.78 | 6.36 | 1,840,937,312.96 |
| Including: | ||||||||||
| Bad debt provision accrued based on aging combinations | 1,352,513,163.07 | 100.00 | 95,215,708.18 | 7.04 | 1,257,297,454.89 | 1,965,908,204.74 | 100.00 | 124,970,891.78 | 6.36 | 1,840,937,312.96 |
| Total | 1,352,513,163.07 | / | 95,215,708.18 | / | 1,257,297,454.89 | 1,965,908,204.74 | / | 124,970,891.78 | / | 1,840,937,312.96 |
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 | 1,119,078,106.37 | 55,953,905.32 | 5.00 |
| 1 to 2 years | 154,974,823.30 | 15,497,482.33 | 10.00 |
| 2 to 3 years | 78,137,018.39 | 23,441,105.52 | 30.00 |
| 3 to 5 years | |||
| Over 5 years | 323,215.01 | 323,215.01 | 100.00 |
| Total | 1,352,513,163.07 | 95,215,708.18 | 7.04 |
| 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 combination | 124,970,891.78 | 29,755,183.60 | 95,215,708.18 | |||
| Total | 124,970,891.78 | 29,755,183.60 | 95,215,708.18 | |||
| Name of Entity | Balance at the End of the Period | ||
| Accounts Receivable | Proportion in Total Accounts Receivable (%) | Bad Debt Provision | |
| No.1 | 266,499,051.55 | 19.70 | 13,324,952.58 |
| No.2 | 265,819,553.17 | 19.65 | 13,290,977.66 |
| No.3 | 193,165,299.23 | 14.28 | 12,177,502.69 |
| Name of Entity | Balance at the End of the Period | ||
| Accounts Receivable | Proportion in Total Accounts Receivable (%) | Bad Debt Provision | |
| No.4 | 169,639,799.62 | 12.54 | 10,645,624.31 |
| No.5 | 94,265,738.35 | 6.97 | 4,713,286.92 |
| Total | 989,389,441.92 | 73.14 | 54,152,344.16 |
| Item | Balance at the end of the period | Balance at the beginning of the period |
| Interest receivable | ||
| Dividend receivable | ||
| Other Receivables | 37,523,577.06 | 76,146,034.58 |
| Total | 37,523,577.06 | 76,146,034.58 |
(5). Important dividend receivable with an aging over 1 year
□Applicable √Non-applicable
(6). Particulars of bad debt provision
□Applicable √Non-applicable
Other Notes:
□Applicable √Non-applicable
Other Receivables
(7). Disclosure by aging
√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 | 12,120,025.66 |
| Subtotal within 1 year | 12,120,025.66 |
| 1 to 2 years | 9,857,500.00 |
| 2-3 years | 18,133,500.00 |
| Over 3 years | 11,110,881.71 |
| 3 to 4 years | |
| 4 to 5 years | |
| Over 5 years | 205,800.00 |
| Bad debt provision | -13,904,130.31 |
| Total | 37,523,577.06 |
| Nature of Funds | Book balance at the end of the period | Book balance at the beginning of the period |
| Temporary borrowings | 49,415,981.71 | 84,615,981.71 |
| Petty cash funds | 137,500.00 | 88,700.00 |
| Security deposit | 19,250.00 | 19,250.00 |
| Other | 1,854,975.66 | 1,822,775.68 |
| Total | 51,427,707.37 | 86,546,707.39 |
| Nature of Funds | Book balance at the end of the period | Book balance at the beginning of the period |
| Temporary borrowings | 49,415,981.71 | 84,615,981.71 |
| Petty cash funds | 137,500.00 | 88,700.00 |
| Security deposit | 19,250.00 | 19,250.00 |
| Other | 1,854,975.66 | 1,822,775.68 |
| Total | 51,427,707.37 | 86,546,707.39 |
Unit：Yuan Currency：RMB
| 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, 2021 | 10,400,672.81 | 10,400,672.81 | ||
| Balance of the current period on January 1, 2021 | ||||
| --Transfer to Phase 2 | ||||
| --Transfer to Phase 3 | ||||
| --Transfer to Phase 2 | ||||
| --Transfer to Phase 1 | ||||
| Provision made in the current period | 3,503,457.50 | 3,503,457.50 | ||
| Reversal in the current period | ||||
| Charge-off in the current period | ||||
| Write-off in the current period | ||||
| Other changes | ||||
| Balance on June 30, 2021 | 13,904,130.31 | 13,904,130.31 |
| 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 | Charge-off or write-off | Other Changes | |||
| Accounts receivable with bad debt accrued based on aging portfolio | 10,400,672.81 | 3,503,457.50 | 13,904,130.31 | |||
| Total | 10,400,672.81 | 3,503,457.50 | 13,904,130.31 | |||
Bad debt provision in the current period with significant amount of withdrawal or reversal:
□Applicable √Non-applicable
(12). Particulars of other receivables actually written off in the current period
□Applicable √Non-applicable
Other note to write-off of receivables:
□Applicable √Non-applicable
(13). Particulars of other receivables of the top five closing balances collected by debtors
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
| 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 | 49,415,981.71 | 1 to 4 years | 96.09 | 13,286,239.03 |
| Liu Hongsong | Other | 455,000.00 | 2 to 4 years | 0.88 | 259,500.00 |
| Li Dongmei | Other | 255,800.00 | 3 to 5 years | 0.50 | 229,800.00 |
| Xu Longhui | Other | 183,500.00 | 1 to 2 years | 0.36 | 16,850.00 |
| Cao Yuzhuo | Other | 114,000.00 | Within 1 year | 0.22 | 5,700.00 |
| Total | / | 50,424,281.71 | / | 98.05 | 13,798,089.03 |
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
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 | 5,334,164,283.08 | 5,334,164,283.08 | 3,921,478,960.48 | 3,921,478,960.48 | ||
| Investments in joint ventures and associates | 138,737,177.28 | 138,737,177.28 | 150,295,983.58 | 150,295,983.58 | ||
| Total | 5,472,901,460.36 | 5,472,901,460.36 | 4,071,774,944.06 | 4,071,774,944.06 | ||
| 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 | ||||
| Huzhou Tuopu | 10,900,000.00 | 10,900,000.00 | ||||
| Wuhan Tuopu | 150,000,000.00 | 150,000,000.00 | ||||
| Wuhan 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 | ||||
| Tuopu Investment | 100,000.00 | 100,000.00 |
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
| Yuxiang E-commerce | 3,500,000.00 | 200,000.00 | 3,700,000.00 | |||
| Tuopu Poland | 18,000,000.00 | 18,000,000.00 | ||||
| Baoji Tuopu | 18,980,000.00 | 18,980,000.00 | ||||
| Taizhou Tuopu | 64,650,000.00 | 35,350,000.00 | 100,000,000.00 | |||
| Tuopu Automotive Electronics | 1,457,800,000.00 | 665,200,000.00 | 2,123,000,000.00 | |||
| Jinzhong Tuopu | 8,000,000.00 | 8,000,000.00 | ||||
| Shenzhen Towin | 11,300,000.00 | 11,300,000.00 | ||||
| Tuopu Brasil | 80,776,216.50 | 80,776,216.50 | ||||
| Zhejiang Tuowin | 571,320,000.00 | 571,320,000.00 | ||||
| Sichuan Maigao | 290,000,000.00 | 290,000,000.00 | ||||
| Hunan Tuopu | 50,000,000.00 | 111,000,000.00 | 161,000,000.00 | |||
| Tuopu USA, LLC | 35,091,204.56 | 35,091,204.56 | ||||
| Tuopu Chassis | 107,500,000.00 | 104,800,000.00 | 212,300,000.00 | |||
| Tuopu Thermal Management | 33,000,000.00 | 467,235,322.60 | 500,235,322.60 | |||
| Total | 3,921,478,960.48 | 1,412,685,322.60 | 5,334,164,283.08 |
| 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 comprehe nsive income | Other changes in equity | Cash dividends or profit declared to distribute | Provision for impairment accrued | Other | ||||
| I. Joint ventures | |||||||||||
| Tuopu Electrical | 62,576,414.03 | 2,956,361.83 | 20,000,000.00 | 45,532,775.86 | |||||||
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
| Appliances | |||||||||||
| Ningbo Borgers | 77,081,863.30 | 5,766,621.32 | 82,848,484.62 | ||||||||
| Subtotal | 139,658,277.33 | 8,722,983.15 | 20,000,000.00 | 128,381,260.48 | |||||||
| II. Associates | |||||||||||
| Antolin Tuopu | 10,637,706.25 | -281,789.45 | 10,355,916.80 | ||||||||
| Subtotal | 10,637,706.25 | -281,789.45 | 10,355,916.80 | ||||||||
| Total | 150,295,983.58 | 8,441,193.70 | 20,000,000.00 | 138,737,177.28 |
4. 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 business operations | 2,608,935,777.52 | 2,065,485,916.16 | 1,453,977,894.42 | 1,083,822,438.24 |
| Other business operations | 142,236,128.59 | 89,618,093.50 | 77,192,139.44 | 52,948,726.36 |
| Total | 2,751,171,906.11 | 2,155,104,009.66 | 1,531,170,033.86 | 1,136,771,164.60 |
| Item | Amount incurred in the current period | Amount incurred in previous period |
| Long-term equity investment income measured by cost method | 110,000,000.00 | |
| Long-term equity investment income measured by equity method | 8,441,193.70 | 6,747,676.66 |
| Investment income from disposal of long-term equity investment | ||
| Investment income of trading financial assets during the holding period | 4,324,874.65 | 10,941,545.79 |
| 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 | ||
| Total | 12,766,068.35 | 127,689,222.45 |
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 | -1,258,747.17 | |
| 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 | 13,938,042.57 | 附注十、七、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 loss 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 | 1,711,141.42 | |
| 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 | 3,641,696.58 | |
| Other gains and losses items that fit the definition of non-recurring gains and losses |
| Impact of income tax | -2,962,928.98 | |
| Impact of minority equity | -56,934.88 | |
| Total | 15,012,269.54 |
| Profit for the reporting period | Weighted Average ROE (% | EPS | |
| Basic EPS | Diluted EPS | ||
| Net profit attributable to common shareholders of the Company | 4.81 | 0.42 | 0.42 |
| Net profit attributable to common shareholders of the Company after deducting non-recurring gains and losses | 4.65 | 0.41 | 0.41 |