Stock Code: 601689 Abbr.: Tuopu Group
Ningbo Tuopu Group Co., Ltd.
Annual Report 2021
April 2021
Ningbo Tuopu Group Co., Ltd. Annual Report 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 this reportshall be true, accurate and complete and free of any false records, misleading statements ormaterial omissions, and they will bear joint and several liability for such information.
II. All directors attended the meeting of the Board of Directors.
III. BDO China Shu Lun Pan Certified Public Accountants LLP (Special General Partnership)issued a standard and unqualified audit report for the Company.
IV. Wu Jianshu, a person in charge of the Company, Hong Tieyang, an officer in charge ofaccounting work and accounting institution (Accounting Officer) hereby declare and warrant thatthe financial statements in the annual report are authentic, accurate, and complete.
V. Profit Distribution Plan or Capital Reserve Converted to Additional Shares Plan Approved bythe Board during the Reporting PeriodAs audited by BDO China Shu Lun Pan Certified Public Accountants LLP (Special GeneralPartnership), Ningbo Tuopu Group Co., Ltd. (“The Parent Company”) realized a net profit at RMB690,398,367.25 in 2021, after a statutory surplus reserve at RMB 69,039,836.72 is withdrawn at 10% ofthe realized net profit, the profit available for distribution in the year is RMB 621,358,530.53; with theundistributed profit at the beginning of the year at RMB 2,898,141,748.80 added, and the cash dividendsat RMB 189,552,010.38 distributed in 2021 deducted, the cumulative profit available for distribution atthe end of 2021 is RMB 3,329,948,268.95.
According to the resolution passed at the 18th meeting of the fourth Board of Directors of theCompany, the profit distribution plan laid down for 2021 is: with a total of 1,102,046,572 shares on thedate of plan announcement as the base number, RMB 2.78 per 10 shares (tax included) will bedistributed to all shareholders as cash dividends. Then the gross amount of cash dividends proposed fordistribution is RMB 306,368,947.02 (tax included), in 30.12% of the net profit attributable toshareholders of public company. The remaining undistributed profit rolls over to the next year. TheCompany will not convert any public reserve funds into additional share capital or issue any bonusshares this year.
If there is a change in the said total shares in the period from the date of the announcement of profitdistribution plan to the record date for distribution, the Company is prepared to keep the gross amount ofcash dividends as stated above, adjust the proportion of dividend per share, and otherwise announce theparticulars of adjustment.
The above profit distribution plan is prospectively submitted to the general meeting of theCompany for consideration.
VI. Risk statement of forward-looking statements
√Applicable □Non-applicable
The forward-looking description of the future development strategy, business plan, performanceforecast and other aspects in relation to the Company as contained herein will not constitute a substantialcommitment to investors. All investors of the Company are advised to be cautious about the investmentrisks.VII. Whether there is any non-operating capital occupation by the controlling shareholder and itsaffiliatesNo
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
VIII. Whether there is any external guarantee provided in violation of the prescribed decisionproceduresNoIX. Whether there are more than half of the directors who cannot guarantee the annual reportdisclosed by the Company as to its authenticity, accuracy and completenessNoX. Significant risk statementThe Company has described the significant risks that may adversely affect the future developmentof the Company and the realization of its business objectives herein.Refer to “Section 3 Discussion andAnalysis of Operation Conditions”
XI.Others
√Applicable □Non-applicable
On November 18, 2021, the Company held the 14th session of the Fourth Board of Directors,where the proposal on the public issuance of convertible corporate bonds was considered and approved.On December 6, 2021, the Company held the second extraordinary general meeting in 2021, where thesaid proposal was considered and approved.On December 29, 2021, the application filed by the Company for public issuance of convertiblecorporate bonds was accepted by China Securities Regulatory Commission (CSRC).On January 21, 2022, the Company received the "Notice of CSRC’s Feedback on the Review ofAdministrative Licensing Project" (No. 213502) issued by CSRC.On February 18 and March 9, 2022, the Company disclosed the "Reply to the Feedback on theApplication Documents for the Public Issuance of Convertible Corporate Bonds by Ningbo TuopuGroup Co., Ltd." and "Reply to the Feedback on the Application Documents for the Public Issuance ofConvertible Corporate Bonds by Ningbo Tuopu Group Co., Ltd. (Revised)” respectively.On April 11, 2022, the 41st working meeting of 2022 of the CSRC 18th Issuance ReviewCommittee reviewed the application filed by the Company for public issuance of convertible corporatebonds. According to the review results at the meeting, this application filed by the Company for publicissuance of convertible corporate bonds was reviewed and passed.As of the disclosure of this report, the Company has not yet received any written approvaldocument from CSRC. This event is still in process and the Company is expected to perform itsinformation disclosure obligations in due course where applicable.
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
Contents
Section 1 Definitions ...... 5
Section 2 Company Profile and Key Financial Indicators ...... 5
Section 3 Discussion and Analysis of Operation Conditions ...... 10
Section 4 Corporate Governance ...... 36
Section 5 Environmental and Social Responsibility ...... 52
Section 6 Significant Events ...... 58
Section 7 Changes in Shares and Shareholders ...... 76
Section 8 Information about Preference Shares ...... 88
Section 9 Information of Corporate Bonds ...... 88
Section 10 Financial Report ...... 89
| Directory of Documents Available for Reference | Financial statements affixed with the signatures and seals of the legal representative of the Company, the officer in charge of accounting work and accounting institution |
| Original audit report affixed with the seal of the accounting firm and the signature and seal of CPAs | |
| All original company documents and announcements disclosed on the website designated by CSRC during the reporting period |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
Section 1 Definitions
I. DefinitionsIn this report, unless the context requires otherwise, the following words and terms shall be construed as:
| Common terms and definitions | ||
| The Company, issuer, Tuopu | Refers to | Ningbo Tuopu Group Co., Ltd. |
| MECCA HK | Refers to | MECCA INTERNATIONAL HOLDING （HK） LIMITED, the controlling shareholder of the Company |
| Reporting Period | Refers to | From January 1, 2021 to December 31, 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 |
Section 2 Company Profile and Key Financial Indicators
I. Company Information
| Company Name in Chinese | 宁波拓普集团股份有限公司 |
| Company Abbreviation in Chinese | 拓普集团 |
| Company Name in English | Ningbo Tuopu Group Co.,Ltd. |
| Company Abbreviation in English | Tuopu Group |
| Legal Representative of the Company | Wu Jianshu |
II. Contact Person and Contact Information
| Security of the Board | Representative of Securities Affairs | |
| Name | Wang Mingzhen | Gong Yuchao |
| Contact Address | 268 Yuwangshan Rd, Beilun District, Ningbo, Zhejiang | 268 Yuwangshan Rd, Beilun District, Ningbo, Zhejiang |
| Tel. | 0574-86800850 | 0574-86800850 |
| Fax | 0574-86800877 | 0574-86800877 |
| wmz@tuopu.com | gyc@tuopu.com |
III. General Informaiton Summary
| Registered Address of the Company | 268 Yuwangshan Rd, Daqi Street, Beilun District, Ningbo, Zhejiang |
| Change History of Registered Address of the Company | On June 16, 2020, changed from "No. 215 Huangshan West Road, Beilun District, 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 |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
IV. Information Disclosure and Location
| Media Name and Website where The Company Discloses its Annual Report | Securities Times |
| Stock Exchange Website where The Company Discloses its Annual Report | SSE website (www.sse.com.cn) |
| Location for Annual Report of the Company | Office of Board Secretary |
V. Overview of Stock Information
| Overview of Stock Information | ||||
| Stock Type | Stock Exchange | Stock Abbreviation | Stock Code | Stock Abbreviation Before Change |
| A-share | Shanghai Stock Exchange | Tuopu Group | 601689 | - |
VI. Other Related Information
| Accounting firm appointed by the Company (domestic) | Name | BDO China Shu Lun Pan Certified Public Accountants LLP (Special General Partnership) |
| Office Address | 5/F, 61 East Nanjing Rd, Shanghai | |
| Name of Undersigned Accountants | Yu Weiying, Tang Wei | |
| The sponsor institution hired by the company to perform the continuous supervision in the reporting period | Name | China Merchants Securities Co. Ltd |
| Office Address | 111 Fuhua First Rd, Futian Street, Futian District, Shenzhen, Guangdong | |
| Name of undersigned sponsor’s representatives | Xiao Yan, Tan Guotai | |
| Period of continuous supervision | 201From July 26, 2016 to the date of using up the raised funds |
VII. Key Acccoutning Data and Financial Indicators over the Past Three Years
(1) Key Accounting Data
Unit：Yuan Currency：RMB
| Key Accounting Data | 2021 | 2020 | Increase/decrease compared with previous year | 2019 |
| Operating income | 11,462,693,679.86 | 6,511,094,914.05 | 76.05 | 5,358,953,813.60 |
| Net profit attributable to shareholders of the listed Company | 1,017,253,691.77 | 628,200,888.31 | 61.93 | 456,205,818.45 |
| Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses | 970,594,278.55 | 574,682,817.67 | 68.89 | 414,524,818.47 |
| Net cash flow generated by operational activities | 1,186,819,193.35 | 1,123,685,580.01 | 5.62 | 1,239,421,359.40 |
| End of 2021 | End of 2020 | Increase/Decrease at the end of the current year | End of 2019 |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| compared with the end of the previous year (%) | ||||
| Net assets attributable to shareholders of the listed company | 10,588,767,194.07 | 7,786,994,893.67 | 35.98 | 7,375,492,362.88 |
| Total assets | 18,682,692,767.26 | 12,115,228,519.89 | 54.21 | 11,234,314,273.34 |
(2) Key Financial Indicators
| Key Financial Indicators | 2021 | 2020 | Increase/Decrease at the end of the current year compared with the end of the previous year (%) | 2019 |
| Basic Earnings per Share (RMB/Share) | 0.93 | 0.60 | 55.00 | 0.43 |
| Diluted Earnings per Share (RMB/Share) | 0.93 | 0.60 | 55.00 | 0.43 |
| Basic Earnings per Share after deducting non-recurring gains and losses (RMB/Share) | 0.88 | 0.54 | 62.96 | 0.39 |
| Weighted Average ROE | 10.35 | 8.29 | Increased by 2.06% | 6.25 |
| Weighted Average ROE after deducting non-recurring gains and losses (%) | 9.87 | 7.58 | Increased by 2.29% | 5.68 |
Notes to the key accounting data and financial indicators over the previous three years at the end of thereporting period
□Applicable √Non-applicable
Ⅷ. Differences in Accounting Data under Chinese and International Accounting Standards
(1) Differences in net profit and net assets attributable to shareholders of listed company in thefinancial reports disclosed under international accounting standards and Chinese accountingstandards
□Applicable √Non-applicable
(2) Differences in net profit and net assets attributable to shareholders of listed company in thefinancial report disclosed under international accounting standards and Chinese accountingstandards
□Applicable √Non-applicable
(3) Notes to differences between international and Chinese accounting standards:
□Applicable √Non-applicable
Ⅸ. Key financial data of 2021 by quarter
Unit：Yuan Currency：RMB
| Q1 (From January to March) | Q2 (From April to June) | Q3 (From July to September) | Q4 (From October to December) | |
| Operating income | 2,426,455,130.26 | 2,490,291,932.94 | 2,906,207,812.64 | 3,639,738,804.02 |
| Net profit attributable to shareholders of the listed company | 246,045,799.62 | 213,656,388.17 | 293,624,386.80 | 263,927,117.18 |
| Net profit attributable to shareholders of the | 239,833,607.79 | 204,856,310.46 | 286,196,999.99 | 239,707,360.31 |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| listed company after deducting non-recurring gains and losses | ||||
| Net cash flow generated by operating activities | 156,558,517.95 | 588,776,360.01 | 99,539,984.40 | 341,944,330.99 |
Notes to differences between quarterly data and disclosed periodic report data
□Applicable √Non-applicable
X. Non-recurring Gains and Losses Items and Amounts
√Applicable □Non-applicable
Unit: Yuan Currency: RMB
| Non-recurring Gains and Losses Items | Amount in 2021 | Note (if applicable) | Amount in 2020 | Amount in 2019 |
| Gains and losses from disposal of non-current assets | -1,620,899.20 | 8,703,377.39 | -5,661,936.43 | |
| 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 | 35,898,407.13 | X, VII, 84 | 34,350,267.41 | 27,118,972.85 |
| 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 | 17,563,635.87 | |||
| 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 |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| 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 | 252,506.50 | 18,164,183.51 | 30,527,989.21 | |
| Reversal of the receivables and contract assets depreciation reserves for separate impairment test | ||||
| Gains and losses from external entrusted loans | 311,202.83 | |||
| 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 | 3,575,775.34 | 2,813,550.60 | -3,171,370.86 | |
| Other gains and losses items that fit the definition of non-recurring gains and losses | ||||
| Less：Impact of income tax | 8,942,931.42 | 10,201,281.57 | 7,365,066.09 | |
| Amount of influence of minority shareholders' equity (after tax) | 67,081.00 | 312,026.70 | 78,791.53 | |
| Total | 46,659,413.22 | 53,518,070.64 | 41,680,999.98 |
Notes of the circumstances in which extraordinary gain or loss items as defined or illustrated in theExplanatory Announcement on Information Disclosure for Companies Offering Their Securities to thePublic No.1 – Extraordinary Gains or Losses were defined by the Company as its recurring gain or loss
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
items.
□Applicable√Non-applicable
XI. Items Measured by Fair Value
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
| Item | Opening Balance | Ending Balance | Changes in Current Period | Impact on Current Profit |
| Equity instrument investments | 176,111.00 | 1,507,846.86 | 1,331,735.86 | 252,506.50 |
| Short-term financial products | 320,000,000.00 | 320,000,000.00 | ||
| Receivables Financing | 742,203,122.21 | 972,493,168.64 | 230,290,046.43 | |
| Total | 742,379,233.21 | 1,294,001,015.50 | 551,621,782.29 | 252,506.50 |
XII. Other
√Applicable □Non-applicable
Section 3 Discussion and Analysis of Operation ConditionsⅠ. Discussion and Analysis of Operating Conditions
As driven by the positive influence of broad product line in the NEV industry, systemresearch and development abilities and innovative business practices, rapid increase ofsales revenue and profit was achieved this year, and all operation and managementactivities went smoothly. More details are provided below:
(1) Marketing and sales.
The Tier0.5 cooperation mode rolled out by the Company and its strategic customershas made an exemplary success. Under this mode, the number and amount of componentsper vehicle are higher, and the Company is able to provide better QSTP products andservices to customers, create value for customers, and maintain good customer loyalty.Adhering to the cooperation concept of “quick response and all-out cooperation”, theCompany has been highly rated by strategic customers, and there is an ample potential ofbusiness growth.
In the international market, the Company has engaged in full-on cooperation withsome US innovative car makers such as s RIVIAN and LUCID, technology-intensivecompanies, and traditional car makers such as FORD, GM, and FCA. In the domesticmarket, the Company has updated cooperation levels with Huawei, Jinkang, HiPhi, Xiaomi,Lixiang and other innovative car makers.
With the roll-out of the product platform strategy and the increased level of marketacceptance of the new marketing mode, the number of new orders accepted by theCompany increases substantially compared to prior years, which in turn paves the way forfast-growing sustainable development in future.
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
(2) R&D and innovation.
During the reporting period, the Company intensified the efforts in R&D investment,allocated more resources, and maintained its leading edge in research and development. Forproduct R&D, continuous efforts were made to improve the current product lines anddevelop new products to enrich the product lines. Exploiting the mechanical, electroniccontrol, software and chassis tuning capabilities developed in the R&D process ofbrake-by-wire IBS, referring to the accumulated experience of rubber and vacuum pumps,the Company quickly rolled out the development of the air suspension system project.Under this project, the amount of components per vehicle is RMB 5,000-10,000, whichheralds an enormous market potential in the era of vehicle consumption upgrade. Inaddition, the Company wrapped up the development of some new products such as rotaryscreen drivers and ESC columns, which will be brought to the market step by step.At present,the Company has received aluminum subframe orders placed by Lixiang and heat pump assembly ordersfor some models placed by FAW, and the heat pump sub-components project goes well. In addition, thepower-adjustable steering columns and IBS project goes well.For manufacturing research and development, the Company used virtual simulationtechnology to quicken up the research and development of manufacturing processes andquality control, exploit visual detection, product traceability, AI and other technologies torealize intelligent manufacturing, substantially improve the precision of quality control,reduce the time spent for equipment installation, commissioning and process trial run, andachieve fast and high-quality volume production.Inadequate basic research is supposed to the main reason accounting for technicaldifficulties in the domestic industry. Certain underlying problems concerning material,technology, electronic control, software and testing have to be solved in the process ofpromoting the research and development of product industrialization. Driven by this reason,the Company appointed domestic and foreign experts and specialists in materials,mechanics, chemistry and other related fields, kicked off the basic research fromfundamental knowledge, principles and ideas, “planning ahead ensures slow yet steadyprogress”. Owing to these efforts, good achievements have been accomplished in someaspects. The degradable and eco-friendly material and the aluminum alloy material withoutheat treatment, which are developed in house, have been put into industrial application andrecognized by customers. These invented materials provide important means to carryingout the T0.5 level strategy, which also helps the Company maintain global leading edge infuture.
(3) Capacity landscaping.
According to the updates of new orders and based on the projection of the futurepenetration rate of NEVs, the Company has paced up the capacity landscaping andcompleted the construction of Xiangtan Base, the Phase II and Phase III of Ningbo
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
Hangzhou Bay New District, and the production base in Yinzhou, Ningbo covering about1,500 acres of land.
(4) Cost control.
During the reporting period, the cost of raw materials and labor services has obviouslyrisen, the Company implements cost control by purchasing in large quantity, technologicalinnovation, strict budget control and other proper measures. With a plurality of researchprojects in process, many technical specialists have been recruited, leading to a rapidincrease in R&D expenditure. With new factories built, the management and manufacturingoverhead incurred in production ramp-up and trial production is relatively high. As drivenby the capacity increase needs of the Company, capital expenditure is increasingenormously and the ratio of depreciation and amortization is increasing sharply. In future,R&D cost and capital expenditures are expected to be diluted with the sales growth, so thata reasonable gross profit level would be maintained.
(5) Manufacturing upgrade.
The Company proceeds digital factory, implements MES management system, enableseffective management in respect of quality control, product traceability, lean production,equipment management, and promotes the interconnectivity between the company-widedata and customer data, in order to build an smart factory accredited with Industry 4.0.
After the recall of steering knuckles, the Company made further investments in smartfactories and traceability system, which enhanced the overall satisfaction level ofcustomers.
(6) Launching of convertible bond financing.
As encouraged by the rapid growth of chassis lightweight, the Company launched theissuance of convertible bonds and prospectively raised RMB 2.5 billion, in order to furtherenhance its financial strength and assure the rapid development of the project.I. Industry landscaping during the reporting period
In 2021, despite the adverse factors such as shortage of chips and rising material price, China sold
26.24 million units, an increase of 3.8% over the last year, in which NEVs contributes 3.521 millionunits, an increase up to 157.5% over the last year, marking the penetration of NEVs in the fast-growingperiod.
II. Business operations engaged by the Company during the reporting period
1. Main operations
The Company specializes in the research and development, production and sales ofauto parts. The main products include automobile vibration control system, interior andexterior trim parts, body lightweight products, cabin comfort system, thermal managementsystem, chassis system,air suspension system, intelligent driving system. The major customersit serves include international and domestic smart electric car makers and traditional OEM
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
car makers at home and abroad. In line with the business philosophy of creating value forcustomers, the Company adheres to R&D and innovation, boosts global landscaping,enhances overall competitiveness, and strives to be a more trusted partner for car makers.
2. Business process and operation pattern
III. Analysis of core competitiveness during the reporting period
√Applicable □Non-applicable
The NEVs track in which the Company is currently engaged heralds the marketcapacity at trillion-level, its enormous potential of market development, long business lifecycle, and technology-intensive and capital-intensive character offer a historicalopportunity for the Company to stride forward. In the course of 39 years after founding, theCompany has been consistently enhancing overall competitiveness, raised the competitionthreshold and shaped a moat.
1. Strength of product platform.
Keeping up with the trend of industry development, the Company makes aprospective distribution of NEVs track, expands its product lines, and forms aplatform-based corporation. Now it owns 8 product lines: automobile vibration controlsystem, interior &exterior system, body lightweight products, cabin comfort system,thermal management system, chassis system, air suspension system, intelligent driving system.The unit price of components per vehicle is about 30,000 and these product lines areaccessible to enormous potentials of expansion.
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
The Company has a wide range of product lines which can provide customers withone-stop, system-grade and modularized products and services, and some products arescarce and hardly benchmarked in the global market of automobile parts. In the era ofindustrial transformation and business model innovation, labor collaboration withcustomers can in turn enhance customer satisfaction and pave the way for getting biggerand stronger.
The Company has a wide array of product lines such as suspension system,brake-by-wire and steering-by-wire, impressive chassis tuning capabilities, and requisitefactors to integrate drive-by-wire chassis and skateboard chassis. Drive-by-wire chassis isan essential condition to realize high-level auto piloting. In contrast, skateboard chassis cancreate a new car-making model featuring faster speed of making and lower cost. With aproven ability to render further services to customers, the Company is highly responsive tothe technology development trend of vehicle E/E control architecture and sub-domaincontrol and the creative car-making model that may appear.
The product lines are briefly described here: 1. Damping system, comprisingpowertrain mount support, drive motor damper, cylinder support, torsional damper,sub-frame support, and hydraulic bushing; 2. Interior &exterior system, comprising roof,main carpet, coat rack, heat and sound insulation components, luggage insulationcomponents, and exterior trim products such as sealing strips and decorative strips; 3. Bodylightweight products, comprising one-piece front and rear floor panels, body structural part,door structural part, and battery pack structural part; 4. Cabin comfort system, comprisingrotary screen controller, electric tailgate, electric sliding door, and seat comfort system; 5.Thermal management system, comprising integrated heat pump assembly, multi-port valve,electronic water pump, and electronic expansion valve; 6. Chassis system, comprising frontand rear sub-frames, aluminum sub-frame, control arms, rods, and steering knuckles; 7. Airsuspension system, comprising integrated air supply unit, air spring, and height sensor; 8.Intelligent driving system, comprising steer-by-wire, brake-by-wire, and power-adjustablesteering columns.
2. Strength of customer group.
The Company undertakes the mission statement of creating values for its customersand has been generally accepted by customers in cooperation. The TUOPU brandreputation has been enhanced, along with higher loyalty level of customers. In the era ofintelligent electrification, capitalizing on the core competitiveness generated from QSTP,the Company has established and maintained stable cooperation with domestic andoverseas carmakers.
In line with the key customer strategy, the Company takes resource-focused approachto explore Tier0.5 cooperation pattern, and renders services characterized by “responsiveand highly cooperative” to strategic customers, which in turn earns positive review and
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
recognition from customers, and paves the way for supplying components fit to millions ofvehicles.
3. Strength of R&D.
The only way leading to a world-class automobile parts enterprise is to improvecapabilities of R&D and innovation. Sticking to R&D and innovation, the Company wasthe first participant within the industry to lay down the forward R&D development strategyas early as twenty years ago. After the technological accumulation for years, the Companyhas demonstrated the system-grade synchronous forward R&D capabilities with respect tofive modules and the integrated R&D capabilities of machines, electronic control, andsoftware, and has a number of independent intellectual property rights such as inventionpatents. The Company kicks off basic research works in order to further maintain itsleading edge in research and development. With uninterrupted investments in systemconstruction, recruitment of talents and testing capacity, the Company maintains theaverage percentage of annual R&D investments in operating 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,the Company is able to provide better services to global customers and recruit qualitytalents at home and abroad. Thanks to its efforts, the Company has put a scientific researchteam consisting of nearly 2,000 members in place, including more than 100 holders ofdoctoral and master degrees.
The Company has set up a test center of global excellence which has the testing andvalidation capabilities with respect to materials, products, systems and vehicles. Withcertified CNAS ISO/IEC17025 system, the Company has been appointed by manyautomakers to conduct in-vehicle tests.
Leveraging the top-down R&D capabilities, the Company can expand its product lineand enhance the value of components per vehicle, and also renders T0.5-level service tocustomers.
4. Strength of plant layout and capacity.
The Company has set up manufacturing bases in Ningbo, Chongqing, Wuhan andother places encircling major automobile industry clusters in China. To render betterservices to global customers, the Company has established manufacturing plants orwarehouse centers in the United States, Canada, Brazil and Malaysia, the prospective plantsin Poland and Mexico are in process. Under this plant layout, the Company is able to renderfaster and more efficient services to its customers and guarantee the business developmenton global platforms.
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
The penetration rate of NEVs features by a rapid increase, just as the industryparticipants experience, but the industrial chain capacity of NEVs is obviously insufficient,global auto part makers are under a heavy burden of transformation, their investmentwillingness is weak, and the investment level and rate of home auto part makers are notenough. According to the company-specific capacity requirement and future forecasts, theCompany is expected to build up capacity in order to maintain its leading edge inproduction capacity, technology, and equipment.In addition, the automobile industry requires a large-sum investment in the plantlayout, the construction period is long and the complex equipment and process are involved,so it can hardly be replaced like the cellphone industry chain.
5. Strength of management
Under the IATF16949 quality system, the Company has established a specificmanagement system with typical features through years of innovation efforts. Formanagement structure, the division-based management structure is laid down for the group,which can relieve the stress of management, highlight the business operations, improve theefficiency of operation, and lead to relative competition; divisions are subject to thehorizontal flat management with sales activities standing in the core, for market-orientedconstruction of the organization, pool resources and make quick response; under thepyramid organization, business units enforce standard processes to improve efficiency andreduce cost.
For management system, the Company has established a full set of standard processes,management systems and assessment indicators as directed by process, information,standardization, and lean production, and is leveraging some information tools such as SAP,PLM, OA, and MES to implement exact processes, which in turn improves the efficiencyof management and decision.
For incentive mechanism, the Company lays up a career platform that is adequatelyauthorized for staff members, in which the Company tapes into internal development andpromotion mode that is fair and just, in order to keep the channel of promotion smooth, fitto the growth strategy, and form a positive cycle for business growth and career path.
6. Strength of talents.
The Company puts the screening and training of talents in priority. The post-doctoralworkstation within the Company solicits and recruits technical specialists globally.Adhering to the concept of “recruiting and promoting members on their merits”, theCompany is committed to building a competitive management team. The Company hasestablished an integrated, specific and open financial indicator system to transform officersfrom managers to operators and entrepreneurs.
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
The Company encourages for the formation of a learning organization that is fullyauthorized, and forges a young and experienced international team specialized in sales,R&D activities and production who can pave the way for leapfrog development of theCompany.
7. 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 ofexcellence.
Aligning with the business philosophy of serving the country with industrialachievements, the Company stands at the industry front, gets immersed in R&D andinnovation, goes all out to solve “bottlenecking” technical issues, and contributions to theindustry safety and development. Adhering to the operation concept of legal compliance,the Company undertakes social responsibility and is committed to infusing positive energyinto social development.
The Company gives its employees an access to comfortable workplace, equalinterpersonal relationships, appealing salary and benefits, and an extraordinary careerdevelopment platform, in order to tap into the potentials of all employees. The Companyhas established partnerships with suppliers, respected the business philosophy of seekingequality and win-win results, and driven the common development of the supply chain.
The Company values and protects the interests of investors, strictly abides by the rulesgoverning information disclosure and other provisions, and distributes dividends toinvestors even though the capital expenditures have been increased. All staff members areunited to improve operating performance, in order to maximize the benefits to investors.
8. Strength of equity structure.
The Company is run and operated by founder, which in turn maintains the prudence ofmajor decisions, values long-term benefits and development, makes quick decisions andassures good execution. The founder holds a higher percentage of shares, keeps a clearequity structure, and exercises longstanding control on the Company from the top-leveldesign, in order to keep the Company running steadily for a long time and have an amplepotential for capital expansion. The members of the Board of Directors led by the chairmandemonstrate impressive experience, have clear division of work, keep a low profile, keepambitious and energetic, and use their best endeavors to drive the Company to the forefrontof the industry in the right way.
9. Strength of risk control.
The Company keeps the debt-to-equity ratio at low level and has an abundant cashflow. The well-established financial system and the strict risk control system can in turn
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
guarantee the implementation of strategic plan and investment plan, or allow it to seekmergers and expansion whenever appropriate, or reduce the risk exposure to businessoperation, and maintain its long-term investment value.
IV. Condition of main operations during the reporting period
As of the end of the reporting period, the Company's total assets were RMB 18.683billion, an increase of 54.21% over the previous period; total liabilities were RMB 8.062billion, an increase of 87.62% over the previous period; the asset-liability ratio was 43.15%;the owner's equity attributable to the parent company was RMB 10.589 billion, an increaseof 35.98% over the previous period.
During the reporting period, the Company earned an operating income of RMB 11.463billion, an increase of 76.05% over the previous period; total profit was RMB 1.146 billion,an increase of 61.43% over the previous period; the net profit attributable to shareholders ofthe listed company was RMB 1.017 billion, an increase of 61.93% over the previousperiod.
During the reporting period, the net cash flow generated from operating activities wasRMB 1.187 billion. The rapid increase in sales revenue and accounts receivable andamount of inventories reveal its good operating capabilities; the cash outflow frominvestment activities was RMB 5.291 billion, in which the cash expended for the purchaseand construction of fixed assets and other long-term assets was RMB 3.521 billion, whichin turn prepares it to meet the rapid growth of the NEVs market and level up thecompetition barriers.
(1) Analysis of main business operations
1. Analysis of changes in related items in the 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 | 11,462,693,679.86 | 6,511,094,914.05 | 76.05 |
| Operating cost | 9,184,077,297.76 | 5,034,014,528.39 | 82.44 |
| Cost of sales | 157,043,325.10 | 123,896,252.24 | 26.75 |
| Overhead expenses | 295,450,552.98 | 233,071,874.47 | 26.76 |
| Financial expenses | 35,618,447.47 | 44,118,562.59 | -19.27 |
| R&D cost | 502,493,456.38 | 354,851,747.66 | 41.61 |
| Net cash flow from operating activities | 1,186,819,193.35 | 1,123,685,580.01 | 5.62 |
| Net cash flows from investing activities | -3,736,424,732.92 | -587,280,804.65 | NA |
| Net cash flow from financing activities | 2,823,560,530.55 | -564,960,874.38 | NA |
Note to the reason for changes in operating income: attributed to large volume of orders placed bydomestic and foreign valued customers solicited by the Company in the current periodNote to the reason for changes in operating cost:attributed to an increase of operating income in thecurrent period over the previous periodNote to the reason for changes in cost of sales: attributed to an increase of the wages distributed to salesforce and of business hospitality in the current periodNote to the reason for changes in overhead expenses:attributed to an increase of the number of
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
management staff and of salary paid to them in the current periodNote to the reason for changes in financial expenses:attributed to an increase of interest income in thecurrent periodNote to the reason for changes in R&D expenses: attributed to a continuous intensification of R&D andinnovation efforts and of R&D investments in the current periodNote to the reason for changes in net cash flow from operating activities: attributed to an increase ofpayment received in the current periodNote to the reason for changes in net cash flows from investment activities: attributed to a substantialincrease of cash paid for the purchase and construction of fixed assets, intangible assets and otherlong-term assets in the current period.Note to the reason for the change in net cash flow from financing activities: attributed to the receipt offunds raised by non-public offering of shares in the current period.
Particulars of major changes in the business type, profit composition or source of profit of theCompany during the current period
□Applicable √Non-applicable
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
2. Analysis of revenue and cost
√Applicable □Non-applicable
The revenue and cost of the Company in 2021 can be summarized as:
(1). Condition of main business operations by industry, product, region and selling pattern
Unit:Yuan Currency:RMB
| Main business operations by industry | ||||||
| By industry | Operating income | Operating cost | Gross profit rate (%) | Increase/Decrease of operating income over the previous year (%) | Increase/Decrease of operating cost over the previous year (%) | Increase/Decrease of gross profit rate over the previous year (%) |
| Automobile parts | 11,017,000,524.49 | 8,861,356,542.47 | 19.57 | 75.04 | 78.59 | Decreased by 1.59% |
| Main business operations by product | ||||||
| By product | Operating income | Operating cost | Gross profit rate (%) | Increase/Decrease of operating income over the previous year (%) | Increase/Decrease of operating cost over the previous year (%) | Increase/Decrease of gross profit rate over the previous year (%) |
| Vibration control system | 3,347,130,942.76 | 2,549,744,262.83 | 23.82 | 30.73 | 35.45 | Decreased by 2.66% |
| Trimming system | 3,578,317,237.17 | 2,961,118,834.98 | 17.25 | 60.89 | 62.32 | Decreased by 0.73% |
| Power chassis system | 2,624,152,854.50 | 2,160,202,629.82 | 17.68 | 97.21 | 91.61 | Increased by 2.41% |
| Mechatronic system | 182,721,283.49 | 134,670,732.50 | 26.30 | 2.21 | 5.40 | Decreased by 2.23% |
| Thermal management system | 1,284,678,206.57 | 1,055,620,082.34 | 17.83 | NA | NA | NA |
| Main business operations by region | ||||||
| By region | 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 (%) |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| Domestic | 8,260,898,166.08 | 6,760,489,458.76 | 18.16 | 78.17 | 80.40 | Decreased by 1.01% |
| Overseas | 2,756,102,358.41 | 2,100,867,083.71 | 23.77 | 66.28 | 72.99 | Decreased by 2.96% |
| Condition of main business operations by selling pattern | ||||||
| Selling pattern | 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 (%) |
| Direct selling | 11,017,000,524.49 | 8,861,356,542.47 | 19.57 | 75.04 | 78.59 | Decreased by 1.59% |
(2). Analysis of production output and quantity sold
√Applicable □Non-applicable
| Main product | Unit | Production output | Quantity sold | Quantity of inventories | Increase/Decrease of production output over the previous year (%) | Increase/Decrease of quantity sold over the previous year(%) | Increase/Decrease of inventories over the previous year(%) |
| vibration control system | 10,000 sets | 742.19 | 727.64 | 185.50 | 34.74 | 32.72 | 8.51 |
| Trimming system | 10,000 sets | 435.17 | 442.31 | 11.60 | 60.34 | 64.07 | -38.11 |
| Power chassis system | 10,000 sets | 286.27 | 280.66 | 22.86 | 71.47 | 70.63 | 32.53 |
| Mechatronic system | 10,000 sets | 69.64 | 68.95 | 3.56 | 3.63 | 3.75 | 24.00 |
| Thermal management | 10,000 sets | 53.44 | 51.39 | 2.05 | NA | NA | NA |
(3) Performance condition of major purchase and sales contracts
□Applicable√Non-applicable
(4). Cost analysis
Unit：Yuan
| Summary by industry | |||||||
| By industry | Construction of | Amount in the | As a percentage | Amount in previous | As a | Change in the | Remark |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| cost | current period | of total cost in the current period (%) | year | percentage of total cost in previous year | amount in the current period as a percentage of previous period (%) | ||
| Automobile parts | Direct cost of material | 6,982,110,445.90 | 78.79 | 3,834,145,459.25 | 77.27 | 82.10 | |
| Automobile parts | Direct cost of labor service | 561,987,933.36 | 6.34 | 332,857,963.49 | 6.71 | 68.84 | |
| Automobile parts | Manufacturing expenses | 1,317,258,163.21 | 14.87 | 794,879,320.74 | 16.02 | 65.72 | |
| Summary by product | |||||||
| By product | Construction of cost | Amount in the current period | As a percentage of total cost in the current period (%) | Amount in previous year | As a percentage of total cost in previous year | Change in the amount in the current period as a percentage of previous period (%) | Remark |
| vibration control system | Direct cost of material | 1,906,698,759.74 | 21.52 | 1,407,114,177.14 | 28.36 | 35.50 | |
| vibration control system | Direct cost of labor service | 216,728,262.34 | 2.45 | 152,476,586.42 | 3.07 | 42.14 | |
| vibration control system | Manufacturing expenses | 426,317,240.75 | 4.81 | 322,836,229.27 | 6.51 | 32.05 | |
| Trimming system | Direct cost of material | 2,297,828,215.94 | 25.93 | 1,414,731,639.06 | 28.51 | 62.42 | |
| Trimming system | Direct cost of labor service | 164,045,983.46 | 1.85 | 97,599,152.40 | 1.97 | 68.08 | |
| Trimming system | Manufacturing expenses | 499,244,635.58 | 5.63 | 311,952,431.05 | 6.29 | 60.04 | |
| Power chassis system | Direct cost of material | 1,704,399,874.93 | 19.23 | 896,288,716.30 | 18.06 | 90.16 | |
| Power chassis system | Direct cost of labor service | 154,022,447.51 | 1.74 | 78,016,577.57 | 1.57 | 97.42 | |
| Power chassis | Manufacturing | 301,780,307.38 | 3.41 | 153,101,896.45 | 3.09 | 97.11 | |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| system | expenses | ||||||
| Mechatronic system | Direct cost of material | 122,281,025.11 | 1.38 | 116,010,926.75 | 2.34 | 5.40 | |
| Mechatronic system | Direct cost of labor service | 4,996,284.18 | 0.06 | 4,765,647.10 | 0.10 | 4.84 | |
| Mechatronic system | Manufacturing expenses | 7,393,423.21 | 0.08 | 6,988,763.98 | 0.14 | 5.79 | |
| Thermal management system | Direct cost of material | 950,902,570.17 | 10.73 | 0.00 | 0.00 | Na | |
| Thermal management system | Direct cost of labor service | 22,168,021.73 | 0.25 | 0.00 | 0.00 | Na | |
| Thermal management system | Manufacturing expenses | 82,549,490.44 | 0.93 | 0.00 | 0.00 | Na |
(5) Changes in the scope of consolidation due to changes in the equity of major subsidiaries during the reporting period
□Applicable√Non-applicable
(6) Significant changes or adjustments to business operations, products or services during the reporting period
□Applicable√Non-applicable
(7). Main customers and main suppliers
A. Condition of main customersThe sales amount from the top five customers is RMB 7,201.1105 million, in 62.82% of the annual sales amount; in which, the sales amount from the related partiesof the top five customers is 0, in 0% of the annual sales amount.During the reporting period, the sales to a single customer accounts for 50% of total sales amount, there are circusmtances in which the Company solicits newcustomers or heavily relies on a few customers out of the Top 5 customrs.
□Applicable √Non-applicable
B. Condition of main suppliersThe purchase amount from the top five suppliers is RMB 1,350.9319 million, in 18.16% of the annual purchase amount; in which, the purchase amount from therelated parties of the top five suppliers is 0, in 0% of the annual purchase amount.During the reporting period, the purchase from a single supplier accounts for 50% of total purchase amount, there are are circusmtances in which the Companysolicits new suppliers or heavily relies on a few supplires out of the Top 5 suppliers.
□Applicable √Non-applicable
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
3. Expenses
√Applicable □Non-applicable
Unit:Yuan
| Subject | 2021 | 2020 | Change as Percentage (%) | Reason for Change |
| Cost of sales | 157,043,325.10 | 123,896,252.24 | 26.75 | Attributed to an increase of the wages distributed to sales force and of business hospitality in the current period |
| Overhead expenses | 295,450,552.98 | 233,071,874.47 | 26.76 | Attributed to an increase of the number of management staff and of salary paid to them in the current period |
| Financial expenses | 35,618,447.47 | 44,118,562.59 | -19.27 | Attributed to an increase of interest income in the current period |
| R&D cost | 502,493,456.38 | 354,851,747.66 | 41.61 | Attributed to the further extent of R&D innovation and the increase in R&D cost in the current period |
4. R&D investment
(1). Particulars of R&D investment
√Applicable □Non-applicable
Unit：Yuan
| Expendable R&D investment in the current period | 502,493,456.38 |
| Capitalized R&D investment in the current period | 0 |
| Total R&D investment | 502,493,456.38 |
| Total R&D investment as a percentage of operating income (%) | 4.38% |
| Number of R&D members in the Company | 0 |
(2) List of R&D specialists
√Applicable □Non-applicable
| Number of R&D specialists | 2,350 |
| R&D specialists as a percentage of total staff members (%) | 18.38 |
| Educational level of R&D specialists | |
| Kind of educational level | Number of specialists by academic degrees |
| Holders of doctoral degree | 5 |
| Holders of master degree | 97 |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| Holders of bachelor degree | 1084 |
| Holders of college degree | 1164 |
| Holders of high school degree or below | |
| Age group of R&D specialists | |
| Kind of age group | Number of specialists by age group |
| Below 30 (excluding 30) | 848 |
| 30-40 (including 30, excluding 40) | 984 |
| 40-50 (including 40, excluding 50) | 463 |
| 50-60 (including 50, excluding 60) | 55 |
| 60 and above | |
(3) Particulars
□Applicable √Non-applicable
(4) Reasons for major changes in the structure of R&D specialists and the impact on the futuredevelopment of the Company
□Applicable √Non-applicable
5. Cash flow
√Applicable □Non-applicable
Unit：Yuan
| Item | 2021 | 2020 | Change as percentage (%) | Reason for change |
| Net cash flow from operating activities | 1,186,819,193.35 | 1,123,685,580.01 | 5.62 | Attributed to an increase of the payment received in the current period |
| Net cash flow from investing activities | -3,736,424,732.92 | -587,280,804.65 | NA | Attributed to a substantial increase of the cash paid for the purchase and construction of fixed assets, intangible assets and other long-term assets in the current period |
| Net cash flow from financing activities | 2,823,560,530.55 | -564,960,874.38 | NA | Attributed to the receipt of funds raised by non-public offering of shares in the current period |
(2) Explanation of major changes in profits caused by operations other than main operations
□Applicable √Non-applicable
Ningbo Tuopu Group Co., Ltd. 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 | 1,271,450,147.37 | 6.81 | 787,123,646.45 | 6.50 | 61.53 | Attributed to the receipt of capital raised from non-public offerings in the current period |
| Trading financial assets | 321,507,846.86 | 1.72 | 176,111.00 | 0.00 | 182459.78 | Attributed to an increase of the amount of wealth management products subscribed in the current period |
| Notes receivable | 3,168,220,804.95 | 16.96 | 1,783,267,007.65 | 14.72 | 77.66 | Attributed to an increase of the amount of accounts receivable due to a substantial increase in operating income in the current period |
| Received Prepayments | 84,489,104.36 | 0.45 | 42,883,818.40 | 0.35 | 97.02 | Attributed to an increase of advance payment for materials in the current period |
| Other receivable | 44,679,367.27 | 0.24 | 31,087,166.38 | 0.26 | 43.72 | Attributed to an increase of deposits and security deposits paid in the current period |
| Inventories | 2,296,983,843.07 | 12.29 | 1,502,751,836.88 | 12.40 | 52.85 | Attributed to an increase of amount of inventories due to a substantial increase in operating income in the current period |
| Other Current Assets | 266,187,079.91 | 1.42 | 173,824,691.82 | 1.43 | 53.14 | Attributed to an increase of VAT credit refund in the current period |
| Fixed Assets | 5,831,567,302.57 | 31.21 | 4,248,257,966.73 | 35.07 | 37.27 | Attributed to an increase of the machinery and equipment purchased in the current period |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| Projects under Construction | 1,990,647,471.76 | 10.66 | 943,993,396.96 | 7.79 | 110.88 | Attributed to an increase of the plants and equipment under construction in the current period |
| Right-of-use Assets | 58,788,393.16 | 0.31 | 0.00 | 100.00 | Attributed to the recognition of right-of-use assets under the "New Lease Standards" adopted in the current period | |
| Goodwill | 208,676,584.61 | 1.12 | 253,310,074.24 | 2.09 | -17.62 | Attributed to the provision for impairment of goodwill in the current period |
| Long-term unamortized expenses | 95,018,634.21 | 0.51 | 57,679,259.94 | 0.48 | 64.74 | Attributed to an increase of decoration costs and logistics equipment in the current period |
| Deferred Income Tax Assets | 135,100,879.84 | 0.72 | 94,968,559.88 | 0.78 | 42.26 | Attributed to an increase of deductible temporary differences in the current period |
| Other Non-current Assets | 558,231,000.78 | 2.99 | 296,957,402.06 | 2.45 | 87.98 | Attributed to the increase in received prepayments for construction and equipment in the current period |
| Short-term loan | 1,214,591,106.66 | 6.50 | 400,378,888.89 | 3.30 | 203.36 | Attributed to an increase in bank borrowings in the current period |
| Notes Payable | 2,333,423,633.37 | 12.49 | 1,471,327,551.91 | 12.14 | 58.59 | Attributed to an increase of the amount of purchased materials due to a substantial increase in operating income in the current period |
| Accounts Payable | 3,225,754,064.50 | 17.27 | 1,898,255,116.17 | 15.67 | 69.93 | Attributed to an increase of the amount of purchased materials due to a substantial increase in operating income in the current period |
| Payroll payable | 193,766,884.51 | 1.04 | 138,292,361.67 | 1.14 | 40.11 | Attributed to an increase of the balance of wages payable due to the increase in the staff members in the current period |
| Tax Payable | 148,102,445.81 | 0.79 | 82,865,303.29 | 0.68 | 78.73 | Attributed to an increase of VAT payable, enterprise income tax payable and land use tax payable at the end of the current period |
| Non-current Liabilities Due within 1 Year | 19,018,076.84 | 0.10 | 0.00 | 100.00 | Attributed to the reclassification of financial lease borrowings to this item in the current period |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| Other Current Liabilities | 193,908,274.06 | 1.04 | 1,507,896.52 | 0.01 | 12759.52 | Attributed to an increase in financing lease borrowings in the current period |
| Long-term loan | 310,000,000.00 | 1.66 | 0.00 | 100.00 | Attributed to an increase in long-term bank borrowings in the current period | |
| Lease Liabilities | 40,685,114.26 | 0.22 | 0.00 | 100.00 | Attributed to the recognition of lease liabilities under the "New Lease Standards" adopted in the current period | |
| Deferred Income Tax Liabilities | 75,749,671.63 | 0.41 | 51,907,987.42 | 0.43 | 45.93 | Attributed to an increase in deferred income tax liabilities resulting from the one-off depreciation of equipment and appliances below RMB 5 million in the current period |
2. Overseas assets
√Applicable □Non-applicable
(1) Scale of assets
Including: overseas assets RMB 764,915,141.06 (Unit: Yuan Currency: RMB), in4.09 % of total assets.
(2) Explanation for the reason why overseas assets account for a higher percentage
□Applicable √Non-applicable
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
3. Major asset restrictions as of the end of the reporting period
√Applicable □Non-applicable
Unit：Yuan
| Item | Book value at the end of the period | Reason for restricted use |
| Monetary Funds | 335,777,756.39 | Security deposit |
| Notes receivable | 315,417,218.51 | Pledge |
| Receivable financing | 821,788,525.63 | Pledge |
| Fixed Assets | 853,207,227.97 | Mortgage |
| Intangible Assets | 104,522,557.95 | Mortgage |
| Total | 2,430,713,286.45 | / |
4. Other Notes
□Applicable √Non-applicable
(4) Analysis of industry operational information
□Applicable √Non-applicaAnalysis of Operational Information in Automobile Manufacturing Industry
1. Production capacity
□Applicable √Non-applicable
2. Production output and quantity sold of vehicles
□Applicable √Non-applicable
3. Production output and quantity sold of automobile parts
□Applicable √Non-applicable
4. NEVs
□Applicable √Non-applicable
5. Automobile financing
□Applicable √Non-applicable
6. Other Notes
□Applicable √Non-applicable
(5) Investment condition
Ovverall analysis of external equity investments
□Applicable √Non-applicable
1. Significant equity investment
□Applicable √Non-applicable
2. Significant non-equity investment
□Applicable √Non-applicable
ⅰCondition of purchased land
On January 19, 2021, Tuopu EV Thermal Management System (Ningbo) Co., Ltd., a wholly-ownedsubsidiary of the Company, was awarded the right to use 308 mu state-owned construction land inHangzhou 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., awholly-owned subsidiary of the Company, was awarded the right to use 341 mu state-ownedconstruction land in Hangzhou Bay New Zone, Ningbo, at a consideration of RMB 68.21 million inbidding process.
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
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. | At present, Phase 2 has been completed and shifts to the trial operation stage. |
| 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. | At present, the certificate of real estate title has been granted to the Company and the project has been completed and put into operation. |
| 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 trim parts system project with an annual capacity of 300,000 sets in Toumen Port Economic Development Zone. | At present, the certificate of real estate title has been granted to the Company and the project has been completed and put into operation. |
| 4 | December | 2021-086 | Tuopu Group’s | The Company and the People's Government | On December 30, 2021, the Company |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| 2021 | announcement on the investment intent agreement signed in Chongqing | of Shapingba District, Chongqing signed the “Project Cooperation Agreement for Tuopu NEV Chassis lightweight System - Interior Trim Sound Insulation System Production Base”, with an intent of investing RMB 1.5 billion in Shapingba District to construct the production base for NEV product lines by phase. | incorporated Tuopu Automotive Chassis System (Chongqing) Co., Ltd., a wholly-owned subsidiary in Shapingba District, Chongqing, identified as one of the entities performing this Agreement. On January 17, 2022, the subsidiary bade for the right to use about 180 mu of industrial land for a consideration of RMB 90.21 million. The building program is under the review and approval process of the Planning Department. |
(3) Financial assets measured at fair value
□Applicable √Non-applicable
(6) Disposal of major assets and equity
□Applicable √Non-applicable
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
(7) Analysis of major controlling and participating companies
√Applicable □Non-applicable
Unit：in 10,000 Yuan
| 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 | 5,452.94 | 1,720.86 | 3,732.09 | 18,272.13 | 8.06 |
| Tuopu Imp&Exp. | 20,000.00 | 42,699.33 | 32,426.16 | 10,273.17 | 186,742.86 | -3,743.88 |
| Tuopu Parts | 20,000.00 | 134,148.87 | 113,473.29 | 20,675.58 | 531,944.68 | -363.76 |
| Tuopu Acoustics Vibration | 20,000.00 | 101,277.83 | 85,476.05 | 15,801.77 | 328,846.55 | 722.84 |
| Sichuan Tuopu | 2,000.00 | 7,000.65 | 3,518.63 | 3,482.02 | 16,790.66 | 1,309.05 |
| Yantai Tuopu | 6,280.00 | 7,755.10 | 1,878.78 | 5,876.32 | 8,892.76 | 200.28 |
| Pinghu Tuopu | 20,800.00 | 26,421.89 | 6,680.95 | 19,740.94 | 49,542.78 | 2,654.33 |
| Sichuan Maigao | 15,000.00 | 27,277.00 | 6,750.12 | 20,526.88 | 22,501.85 | 1,132.43 |
| Zhejiang Towin | 18,000.00 | 56,390.05 | 10,850.91 | 45,539.15 | 39,996.56 | 1,667.15 |
| Tuopu Mechatronic System | 250,000.00 | 400,052.27 | 103,493.61 | 296,558.66 | 365,174.87 | 32,588.86 |
| Ningbo Qianhui | 2,725.86 | 9,386.66 | 2,540.37 | 6,846.29 | 6,970.67 | 180.84 |
| Tuopu North American Ltd | 5.00 | 4,196.40 | 4,554.62 | -358.22 | 60,862.90 | -138.05 |
| Tuopu Electrical Appliances | 5,000.00 | 15,338.57 | 5,385.16 | 9,953.42 | 13,005.18 | 1,409.53 |
| Ningbo Borgers | 2,100.00 | 21,022.16 | 6,372.24 | 14,649.92 | 38,563.36 | 2,076.45 |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
(8) Structured entities controlled by the Company
□Applicable √Non-applicable
Ⅵ. Discussion and Analysis on the Future Development of the Company
(1) Industry structure and trend
√Applicable □Non-applicable
The automobile industry is placed in the situation of drastic change and far-reachingchanges are taking place in respect of industry, technology, business model, marketingmodel, profit model and supply chain model.
1. A general consensus as to the revolutionary trend of "electrifying, intelligence, andnetworking" in the automotive industry has been reached across the globe. The issue relatedto technical route, energy saving and environmental protection, battery recycling and otherdirections has been skipped, and global car makers are working towards this trend.
2. Technology-intensive companies make cars with innovative companies acrossborders, stirring up a new trend in the automotive industry. Great innovators like Tesla,who are making cars from the point of consumers, as if they were users, have made greatsuccess. The past industrial OEM pattern has been broken down, it is time for car makers topinpoint a new identity and rebuild core competitiveness.
3. China is expected to get an upper hand in the electrification tide. The strategy ofswapping market share for technology leads to success in high-speed rail and electricalappliance, but not in traditional vehicles. Now there are some opportunities for NEVs dueto the following reasons:
First, the Chinese government has been consistently promoting electrification fiveyears ago; second, the entrepreneurship and dividend of engineers are now prevailing inChina; third, China has technological accumulation and progress in respect of 5G, big data,artificial intelligence, and auto piloting. If a new round of cutting-edge technologies can beapplied to the automotive industry, the technological monopoly of EU, US and Japaneseold-brand car makers will be broken down, Chinese car makers will stand on the samestarting line with global leaders and are expected to get an upper hand in the new round ofcompetition.
4. A revolution is projected for China's auto parts industry, which will turn the pastscenario of technology hollowing, small scale, and lack of R&D and innovation. Some autoparts giants with global competitiveness are expected to stand out of China’s auto partsindustry.
(2) Development strategy of the Company
√Applicable □Non-applicable
Amid the great revolution of the automotive industry, the Company is determined tobe a technology-intensive large platform supplier with extensive industrial landscape,intensive product technology, impressive R&D capabilities, and a broad range of customer
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
groups, establish Tier 0.5 cooperation with customers, lead the revolution of the relationsbetween car makers and auto parts suppliers, strive to be a one-hundred-billion-level giantin China’s auto parts industry and a world-class auto parts supplier, empower thedevelopment of NEV industry, and contribute to attaining the goal of “Carbon Peaking andCarbon Neutrality”.
1. Platform strategy. Now the Company owns 8 product lines: automobile vibrationcontrol system, interior &exterior system, body lightweight products, cabin comfort system,thermal management system, chassis system, air suspension system, intelligent drivingsystem. The unit price of components per vehicle is about 30,000 and these product linesare accessible to enormous potentials of expansion.
2. Technology strategy. The Company adheres to R&D and innovation, enhances itsR&D capabilities of mechanics, electronic control, software and chassis tuning, increasesthe technology-intensive level of products, addresses the industry-wide “bottlenecking”technical issue, and make own contribution to the industrial development.
3. Intelligent manufacturing strategy. The Company is intensifying the efforts toimplement the digital factory strategy, improving the quality control level, processcapability, automation and value stream analysis capability through virtual simulation, andendeavoring to change the international impression on “Made in China”.
Its geographical location in Qianwan New Area Industrial Park witnesses the rise of“Wisdom in China”. First, many product types essentially covering all product lines;second, a wide range of processes including stamping, forging, HP die casting, LP casting,differential pressure casting, extrusion casting, injection molding, die pressing, precisionmachining, welding, painting, assembling; third, with state-of-the-art equipment, manysorts of domestic advanced equipment and automated production lines are denselydistributed; fourth, access to leading manufacturing management practice, a wide array ofadvanced manufacturing and management tools such as AGVs and digital Kanban are putinto efficient use; fifth, with products tailored for international and domestic markets.Despite with the sharp rise of tariffs and international freight rates, the internationalcompetitiveness of “Made in China” are highlighted. With sufficient orders, busyproduction activities and trucks coming in and out take on a thriving image, leaving animpression of the rise of China as a great power and the national industry upgrade.
4. T0.5 level market strategy. Capitalizing on the advantages of product line, R&D andOSTP (Quality, Service, Technology, Cost), the Company is trying to create a new Tier0.5business model and increase the amount of components per vehicle.
With a definitive strategic goal, the Company relies on internal development andM&A cases. Sticking to the internal venturing initiative, it doesn’t give up any chance ofseeking value-added mergers and acquisitions. Especially after 2025, the Company is
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
expected to embrace a lot of mergers and acquisitions opportunities, which would in turnkeep its expansion on the fast lane.
(3)Business plan
√Applicable □Non-applicable
In 2022, the Company is anticipated to exploit the market, speed up the massproduction project, improve the management level, control cost, drive the rapiddevelopment, and prepare for attaining the medium-term strategic goal in alignment withthe predefined strategy.
1. Sales and market.
Relying on the overall strength, the Company is anticipated to promote the keyaccount strategy, establish strategic cooperation with key accounts under the Tier 0.5cooperation framework, and to seek collaborations with innovative car makers and exploitthe business opportunities at home and abroad.
As the mechatronic system goes well, the Company will further expand themechatronic system this year. The Company has planned for branding, collaborativemarketing, and marketing highlights, and the performance of mechatronic system isexpected to substantially increase this year.
2. New project development. Efforts will be made to increase R&D investment, carryout project, attain the desired capacity, and to further expand product lines.
3. Capacity landscaping. It is scheduled to complete the construction of Phase 4, 5, 6,7 Project of Qianwan New Area and the Chongqing Factory with a covered area of about1,500 mu this year.
4. Cost control. Efforts will be made to promote the budget control system and leanproduction system for cost cut-down.
5. Digital factory. Efforts will be made to promote digital demonstration factory. Inaddition, other works undertaken by the Company, including quality control, leanproduction, system innovation, are pushed forward.
(4) Potential risks
√Applicable □Non-applicable
1. Exchange rate, tariffs, fluctuations in material prices, and price reduction requestedby customers may expose business operations to risk. The Company intends to resolvethese risks by enhancing overall competitiveness. In the course of 39 years after founding,it has maintained good momentum in spite of this kind of risks, and developed a full set ofrisk control mechanisms based on experience.
2. The NEVs track in which the Company is currently engaged has been fullyrecognized by governments and the industry community and put into practice, with proven
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
signs of right direction and bright future. For this reason, there is no risk borne in thestrategic direction and investments. 1. Exchange rate, tariffs, fluctuations in material prices,and price reduction requested by customers may expose business operations to risk. TheCompany intends to resolve these risks by enhancing overall competitiveness. In the courseof 39 years after founding, it has maintained good momentum in spite of this kind of risks,and developed a full set of risk control mechanisms based on experience.
(5)Others
□Applicable √Non-applicable
VII. Explanation on the circumstances and reasons why the Company did not disclose under thestandards due to inapplicability of the standards or special reasons such as state secrets andbusiness secrets
□Applicable √Non-applicable
Section IV Corporate GovernanceI. Notes to Corporate Governance
□Applicable □Non-applicable
The Company acted in strict compliance with the "Company Law", "Securities Law", relevantregulations of CSRC and SSE, and the provisions under the "Articles of Association", in order toimprove the corporate governance structure, improve internal control system, and operate the internalcontrol system. General meeting, Board of Directors, Board of Supervisors, independent directors andthe management operated precisely by following the internal control procedure, in order to secure thelegitimate rights and interests of the Company and its shareholders.
1. Shareholders and General Meeting
The shareholders reviews the events to the extent permitted in the functions and powers of generalmeeting under the relevant provisions, the “Articles of Association” and the “Rules of Proceedings ofGeneral Meeting”, and appoints lawyers to witness the procedures of holding and convening the generalmeeting and to maintain the legitimate rights and interests of the shareolders, especially the minorityshareholders. The Company holds the general meeting in the form of internet voting and polling and theprocedures of convening and holding the general meeting and voting at the general meeting are legal andvalid. During the reporting period, significant events including regular reports, profit distribution,reappointment of audit institution, related-party transactions, use of raised funds,and initiation of publicissuance of convertible bonds were considered and resolved.
2. Controlling Shareholders and Listed Companies
The controlling shareholder, actual controller and the related parties of the Company exercise theirpowers and assume obligations under the applicable laws and regulations, and there is no activity thatdirectly or indirectly interferes with the business operations beyond the general meeting. During thereporting period, the Company did not provide a guarantee for the controlling shareholder and itsaffiliates, nor did the controlling shareholder occupy the funds of the Company.
3. Directors and Board of Directors
The Board of Directors consists of 9 directors including 3 independent directors. Four specialcommittees, Strategy and Investment Committee, Auditing Committee, Nomination Committee, andRemuneration and Assessment Committee, are affiliated under the Board of Directors. The Board ofDirectors and special committees have laid down the rules of proceedings. Directors are able to presentat the meeting of Board of Directors, perform due diligence, earnestly maintain the legitimate rights andinterests of the Company and all shareholders on time under the “Articles of Associatio” and otherapplicable laws and regulations.
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
4. Supervisors and Board of Supervisors
The Board of Supervisors consists of 3 supervisors including 1 supervisor as staff representative,and has laid down the “Rules of Proceedigns of Board of Supervisors”. The supervisors have fulfilledtheir duties, taken accountability for shareholders by supervising the amendment of the Articles ofAssociation, provision of guarantee to subsidiaries, periodic reports, key decisions in connection withproduction and operations, use of raised funds, launching of public issuance of convertible corporatebonds and related party transactions, and performed the role of the Board of Supervisors in supervising.
5. Officers
During the reporting period, officers have performed due diligence in accordance with the Articlesof Association, to the extent authorized by the general meeting and Board of Directors and permitted bythe rules and regulations of the Company.
6. Information Disclosure and Transparency
The Company discloses relevant information in a true, accurate, complete, timely and fair mannerexactly under the "Guidelines for Governance of Listed Companies", "Rules Governing the Listing ofShares", "Articles of Association" and "Information Disclosure Management System" and otherapplicable regulations. The portal site designated by the Company for its information disclosure is theSSE website and the newspaper designated for its information disclosure is Securities Times.
7. Insider Information Control
With the “Insider Registration Management System” available, the Company intensifies the insiderinformation management practice and specifies the registration and filing process of insiders, which inturn paves the way for proper confidentiality of insider information. During the reporting period, theCompany controls the route and scope of transmtting insider information, make sure that information isdisclosed fairly, and maintain the legitimate rights and interests of investors exactly in accordance withthe “Insider Registration Management System”.
Whether there is a material difference concerning corporate governance provisions betweencorporate governance and laws, administrative regulations, and CSRC regulations on listed companygovernance; in case of material difference, state the reason.
□Applicable √Non-applicable
II.Measures taken by the controlling shareholder and actual controller of the Company to maintain theindependence of the company-specific assets, persons, finance, organization and business, as well as thesolutions, updates on work and follow-up plans that are anticipated to influence its independence
□Applicable √Non-applicable
Conduct of the same or similar business as the Company by the controlling shareholder, actualcontroller and other entities under their respective control, influence of peer-to-peer competition or thedrastic changes of peer-to-peer competition on the Company, countermeasures taken, updates onsolution and follow-up solution plan.
□Applicable √Non-applicable
III. 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 first extraordinary general meeting | March 15, 2021 | www.sse.com.cn | March 16, 2021 | More details are available in “Bulletin on Resolutions of the 2021 First Extraordinary General Meeting of Tuopu Group (Bulletin #: 2021-015). |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| 2020 general meeting | May 10, 2021 | www.sse.com.cn | May 11, 2021 | More details are available in “Bulletin on Resolutions of the 2020 General Meeting of Tuopu Group (Bulletin #: 2021-041). |
| 2021 second extraordinary general meeting | December 6, 2021 | www.sse.com.cn | December 7, 2021 | More details are available in “Bulletin on Resolutions of the 2021 Second Extraordinary General Meeting of Tuopu Group (Bulletin #: 2021-083). |
Preferred shareholders whose voting rights have been restored request to convene anextraordinary general meeting
□Applicable √Non-applicable
Note to General Meeting
√Applicable □Non-applicable
During the reporting period, the Company held three general meetings. These meetings areconvened and held under the applicable laws, regulations and these "Articles of Association"; thepersons present at and convening such meetings hold legal and valid qualifications; the voting procedureis consistent with the applicable relevant laws, regulations, normative documents and these "Articles ofAssociation". The voting results are legal and valid.
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
IV. Information About Directors, Supervisors and Officers
(1) Changes in shares held and remuneration of current and resigned directors, supervisors and officers during the reporting period
√Applicable □Non-applicable
Unit：Shares
| Name | Capacity (Note) | Gender | Age | Date of taking office | Date of leaving | Number of shares held at the beginning of the year | Number of shares held at the end of the year | Increase/Decrease in shares in the year | Reason for increase/decrease | Total pre-tax remuneration received from the Company during the reporting period (in 10,000 Yuan) | Whether receive remuneration from related parties of the Company |
| Wu Jianshu | Chairman, Director | Male | 58 | 2020-10-19 | 2023-10-18 | 7,210,308 | 7,210,308 | 0 | 0 | No | |
| Wang Bin | Chairman, Managing Director | Male | 47 | 2020-10-19 | 2023-10-18 | 0 | 0 | 0 | 250 | No | |
| Pan Xiaoyong | Chairman, Vice general manager | Male | 41 | 2020-10-19 | 2023-10-18 | 0 | 0 | 0 | 450 | No | |
| Wu Weifeng | Chairman, Vice general manager | Male | 45 | 2020-10-19 | 2023-10-18 | 0 | 0 | 0 | 250 | No | |
| Jiang Kaihong | Chairman, Vice general manager | Male | 51 | 2020-10-19 | 2023-10-18 | 0 | 0 | 0 | 200 | No | |
| Wang Weiwei [Note 1] | Director | Male | 38 | 2022-02-10 | 2023-10-18 | 0 | 0 | 0 | 120 | No | |
| Zhou Ying | Independent director | Female | 45 | 2020-10-19 | 2023-10-18 | 0 | 0 | 0 | 5 | No | |
| Zhao Xiangqiu | Independent director | Female | 52 | 2020-10-19 | 2023-10-18 | 0 | 0 | 0 | 5 | No | |
| Wang Yongbin | Independent director | Male | 65 | 2020-10-19 | 2023-10-18 | 0 | 0 | 0 | 5 | No | |
| Wang | Board Secretary | Male | 43 | 2020-10-19 | 2023-10-18 | 0 | 0 | 0 | 60 | No |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| Mingzhen | |||||||||||
| Yan Qunli | Board Chairman, Supervisor | Male | 50 | 2020-10-19 | 2023-10-18 | 0 | 0 | 0 | 66 | No | |
| Duan Xiaocheng | Supervisor | Male | 40 | 2020-10-19 | 2023-10-18 | 0 | 0 | 0 | 72 | No | |
| Li Weiguo [Note 2] | Staff representative, supervisor | Male | 49 | 2022-03-14 | 2023-10-18 | 700 | 0 | -700 | Transacted before taking office | 25 | No |
| Hong Tieyang | Financial Director | Male | 44 | 2020-10-19 | 2023-10-18 | 0 | 0 | 0 | 48 | No | |
| Wang Chengcai(left) | Staff representative, supervisor | Male | 41 | 2020-10-19 | 2022-03-14 | 0 | 0 | 0 | 26.28 | No | |
| Total | / | / | / | / | / | 7,211,008 | 7,210,308 | -700 | / | 1,582.28 | / |
Note 1: On 10 February 2022, Mr. Wang Weiwei was approved by the 2022 first extraordinary general meeting on February 10, 2022 and appointed as a director ofthe Fourth Board of Directors in additional election;Note 2: On 14 March 2022, Mr. Li Weiguo was approved by the congress of workers and staff and appointed as a supervisor of the Fourth Board of Supervisors inby-election.
| Name | Working Experience |
| Wu Jianshu | Formerly as Chairman of Ningbo Tuopu Shock Absorbing System Co., Ltd., Chairman of Ningbo Tuopu Soundproof System Co., Ltd., Chairman of Ningbo Tuopu Coupling Co., Ltd., Chairman of Ningbo Tuopu Automobile Special Rubber Co., Ltd., Chairman of Ningbo Tuopu Brake System Co., Ltd. Currently in the capacity of Chairman of MECCA INTERNATIONAL HOLDING (HK) LIMITED, Chairman and Director of the Company. |
| Wang Bin | Formerly as Vice general manager of Ningbo Economic and Technological Development Zone Tuopu Industrial Co., Ltd., Director and General manager of Ningbo Tuopu Shock Absorbing System Co., Ltd., General manager of Ningbo Tuopu Import and Export Co., Ltd., Vice general manager and Director of Ningbo Tuopu Brake System Co., Ltd. Currently in the capacity of Director and General manager of the Company. |
| Pan Xiaoyong | Formerly as Vice President of Ningbo Tuopu Acoustics Vibration Technology Co., Ltd., Manager of System Development Department of Ningbo Tuopu Acoustics Vibration Technology Co., Ltd., and Director of Ningbo Tuopu Brake System Co., Ltd. Currently in the capacity of President of Ningbo Yuxiang Smart Mobility Co., Ltd. and Director and Deputy GM (Vice President) of the Company. |
| Wu Weifeng | Formerly as Director of of Ningbo Tuopu Acoustics Vibration Technology Co., Ltd., General manager of Ningbo Tuopu Automobile Special Rubber Co., Ltd., General manager of Ningbo Bahe Mould Co., Ltd., Vice general manager of Ningbo Tuopu Soundproof System Co., Ltd., Vice general manager and Director of Ningbo Tuopu Brake System Co., Ltd. Currently in the capacity of Director and Vice general manager of the Company. |
| Jiang Kaihong | Formerly as Manager of Engineering Department of Ningbo Economic and Technological Development Zone, Director of R&D Center of Ningbo Tuopu Shock Absorbing System Co., Ltd., President of Ningbo Tuopu Automobile Parts Co., Ltd., Vice President of Electronic System Division of |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| Ningbo Tuopu Brake System Co., Ltd.Currently in the capacity of Director and Deputy GM (Vice President) of the Company, and Senior General Manager of Ningbo Yuxiang Smart Mobility Co., Ltd. | |
| Wang Weiwei | Formerly as General manager of Intelligent braking system and Stability Control System of Ningbo Tuopu Group Co., Ltd., currently in the capacity of Director of the Company, General Manager of Brake System of Ningbo Yuxiang Smart Mobility Co., Ltd. |
| Zhou Ying | CPA, CPV. Formerly worked in Beilun Finance Bureau, currently serve Ningbo Donghai Accounting Firm. Currently in the capacity of independent director of the Company. |
| Zhao Xiangqiu | Formerly as a practicing lawyer in Zhejiang Fanxin Law Firm, currently as a lawyer, partner and executive director of Zhejiang Yahui Law Firm. Currently as a lawyer and partner of Zhejiang Tai’an Law Firm. Currently as an independent director of the Company. |
| Wang Yongbin | Formerly taught in Zhejiang Agricultural University at Ningbo after graduation, formerly as a professor of machinery at Zhejiang Wanli University, the first tutor of master candidates, General manager of the Institute of Mechatronic System Technology, Director of Mechatronic System Technology Laboratory, now retired. Currently as an independent director of the Company, concurrently hold the office of independent director in Ningbo Jifeng Auto Parts Co., Ltd. (603997.SH), NBTM New Materials Group Co., Ltd. (600114.SH), Zhejiang LERA New Energy Power Technology Co., Ltd., and Ningbo Da Zhi Machine Technology Co., Ltd. |
| Wang Mingzhen | Formerly as General manager of Ningbo Tuopu Import and Export Co., Ltd.., Supervisor of Ningbo Tuopu Group Co., Ltd. Currently as Board Secretary of the Company. |
| Yan Qunli | Formerly as Director of Mold Center, Project Manager of Engineering Department and Manager of Engineering Department of Ningbo Ningbo Economic and Technological Development Zone Tuopu Industrial Co., Ltd., Vice general manager of Marketing of Ningbo Tuopu Automobile Parts Co., Ltd., General manager of Shock Absorbing System NO.1 Department of Ningbo Tuopu Brake System Co., Ltd., and Director and Vice general manager of Ningbo Tuopu Brake System Co., Ltd. Current as the chairman of Board of Supervisors of the Company. |
| Duan Xiaocheng | Formerly as System Integration Section Chief of Ningbo Tuopu Acoustics Vibration Technology Co., Ltd., Chief Engineer of R&D Center of Ningbo Tuopu Group Co., Ltd., and Vice President of R&D Center of Ningbo Tuopu Group Co., Ltd. Currently in the capacity of President of Powertrain and Chassis Division and Supervisor of the Company. |
| Li Weiguo | Formerly as Planning Director and Group Management Representative of Ningbo Tuopu Group Co., Ltd. Currently as Managing Director of Management Department and Staff Representative Supervisor of the Company. |
| Hong Tieyang | Formerly as Financial Officer of Ningbo Huazhong Plastic Products Co., Ltd., Project Manager of Ningbo Zhongcheng Tax Accountant Firm, and Financial Manager of Ningbo Tuopu Group Co., Ltd. Currently as Financial Director of the Company. |
| Wang Chengcai | Holder of Master Degree of Laws, Economist. Formerly as a lecturer at the School of Humanities and Social Sciences of Jingchu Institute of Technology, part-time lawyer at Hubei Fazhixing Law Firm, legal counsel assistant of China Youngman Automobile Group Co., Ltd., legal specialist of SELF Electronics Co., Ltd., Manager of Legal Department of Ningbo Cixing Co., Ltd.Supervisor and Legal Director of the Company, left Tuopu Group on 14 March 2022. |
Other Notes
□Applicable √Non-applicable
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
（2）Office held by current and resigned directors, supervisors and officers during the reportingperiod
1. Office held in corporate shareholder
√Applicable □Non-applicable
| Name of persons in office | Name of corporate shareholder | Office held in corporate shareholder | Date of office held | Date of end of office |
| Wu Jianshu | MECCA INTERNATIONAL HOLDING （HK） LIMITED | Chairman | 2008-07-21 | |
| Note to office held in corporate shareholder | No | |||
2. Office held in other entities
√Applicable □Non-applicable
| Name of persons in office | Name of other entity | Office held in other entity | Date of office held | Date of end of office |
| Zhou Ying | Ningbo Donghai Accounting Firm | Manager | ||
| Zhao Xiangqiu | Zhejiang Yahui Law Firm | Lawyer, partner | ||
| Wang Yongbin | Ningbo Jifeng Auto Parts Co., Ltd. | Independent director | ||
| Wang Yongbin | NBTM New Materials Group Co., Ltd. | Independent director | ||
| Wang Yongbin | Zhejiang LERA New Energy Power Technology Co., Ltd. | Independent director | ||
| Wang Yongbin | Ningbo Da Zhi Machine Technology Co., Ltd. | Independent director | ||
| Notes to office held in other entities | No | |||
（3）Remuneration of Directors, Supervisors and Officers
√Applicable □Non-applicable
| Decision-making procedure as to the remuneration of directors, supervisors and officers | Under the “Articles of Association”, the remuneration of directors and supervisors is decided at the general meeting; the remuneration of officers is decided by the Board of Directors. |
| Basis for fixing the remuneration of directors, supervisors and officers | Fixed according to the industry and local conditions, by referring to the comparable standard of similar listed companies and the actual condition of the Company, where applicable |
| Actuap payment of the remuneration of directors, supervisors and officers | During the reporting period, the remunerations of directors, supervisors and officers have been paid. |
| Total remuneration received by all directors, supervisors and officers at the end of the reporting period | RMB 15.8228 million |
（4）Changes in directors, supervisors and officers
√Applicable □Non-applicable
| Name | Office held | Changes | Reason for change |
| Wang Weiwei | Director | Elected | Director appointed in additional |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| election | |||
| Li Weiguo | Staff representative supervisor | Elected | Appointed in by-election after the former staff representative supervisor resigned |
| Wang Chengcai | Staff representative supervisor | left | Resigned |
(5)Notes to punishments imposed by securities regulatory instutitons over the past three years
□Applicable √Non-applicable
(6)Others
□Applicable √Non-applicable
V. Information about the Board of Directors held during the reporting period
| Session | Date of convention | Resolution |
| The Fourth Board of Directors The Third Meeting | 2021-1-18 | The following proposal was considered and passed: 1. "Proposal on Bidding for the Right to Use State-owned Construction Land" More details are available in the "Bulletin on Resolutions of the Third Meeting of the Fourth Board of Directors of Tuopu Group" available on the SSE website (Bulletin #: 2021-002) |
| The Fourth Board of Directors The Fourth Meeting | 2021-2-24 | The following proposals were considered and passed: 1. "Proposal on Increasing the Entrusted Wealth Management Limit of Idle Raised Funds" 2. "Proposal on Increasing Idle Raised Funds to Supplement Workng Capital Limit" 3. "Proposal on Increasing Capital Stock of Wholly-owned Subsidiary (Hunan Tuopu)" 4. "Proposal on Increasing Capital Stock of Wholly-owned Subsidiary (Tuopu Electronics)" 5. "Proposal on Bidding for the Right to Use State-owned Construction Land" 6. "Proposal on Amending the Articles of Association" 7. "Proposal on Holding the 2021 First Extraordinary General Meeting" More details are available in the "Bulletin on Resolutions of the Fourth Meeting of the Fourth Board of Directors of Tuopu Group" available on the SSE website (Bulletin #: 2021-005) |
| The Fourth Board of Directors The Fifth Meeting | 2021-3-18 | The following proposal was considered and passed: 1. "Proposal on Providing Industrial Plant Lease Guarantee for Overseas Wholly-owned Subsidiary" More details are available in the "Bulletin on Resolutions of the Fifth Meeting of the Fourth Board of Directors of Tuopu Group" available on tne SSE website (Bulletin #: 2021-016) |
| The Fourth Board of Directors The Sixth Meeting | 2021-4-19 | The following proposals were considered and passed: 1. "Proposal on the 2020 Work Report of Board of Directors” 2. "Proposal on the 2020 Performance Report of Independent Directors" 3. "Proposal on the 2020 Performance Report of the Auditing Committee of the Board of Directors" 4. "Proposal on the 2020 Work Report of the General Manager" 5. "Proposal on the 2020 Financial Final Account Report" |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| 6. "Proposal on the 2020 Internal Control Evaluation Report" 7. "Proposal on thedeposit and Use of Raised Funds in 2020" 8. "Proposal on Applying for the Credit Line from Banks in 2021" 9. "Proposal on Conducting Bill Pool Business in 2021" 10. "Proposal on Renewal of Auditing Institution in 2021" 11. "Proposal on Profit Distribution in 2020" 12. "Proposal on the Full Text and Extracts of the <2020 Annual Report>" 13. "Proposal on Confirming Connected Transactions in 2020" 14. "Proposal on Forecasting Routine Connected Transactions in 2021" 15. "Proposal on Using a Part of Temporarily Idle Raised Funds to Entrust Financial Management" 16. "Proposal on Using a Part of Temporarily Idle Raised Funds to Supplement Working Capital" 17. "Proposal on applying New Revenue Accounting Standards and Changing applicable Accounting Policies" 18. "Proposal on applying New Lease Accounting Standards and Changing applicable Accounting Policies" 19. "Proposal on using raised funds to replace self-raised funds that have been previously invested in equity investment projects” 20. "Proposal on using raised funds to replace the bank acceptance bills that have been previously invested in equity investment projects" 21. "Proposal on Increasing the Implementation Subjects of equity Investment Projects" 22. "Proposal on <Distribution Plan of Dividends and Returns to Shareholdersin the Next Three Years (2021-2023)>" 23. "Proposal on holding the 2020 Annual General Meeting" More details are available in the "Bulletin on Resolutions of the Sixth Meeting of the Fourth Board of Directors of Tuopu Group" available on SSE website (Bulletin #: 2021-024) | ||
| The Fourth Board of Directors The Seventh Meeting | 2021-4-26 | The following proposal was considered and passed: 1. "Proposal on <The 2021 Q1 Report>" More details are available in the "The 2021 Q1 Report of Tuopu Group" available on the SSE website |
| The Fourth Board of Directors The Eighth Meeting | 2021-6-1 | The following proposals wereconsidered and passed: 1. "Proposal on Incorporating Tuopu PV Technology (Ningbo Hangzhou Bay New Area) Co., Ltd." 2. "Proposal on Incorporating Tuopu PV Technology (Beilun) Co., Ltd." 3. "Proposal on Incorporating Tuopu PV Technology (Pinghu) Co., Ltd." More details are available in the " Bulletin on Resolutions of the Eighth Meeting of the Fourth Board of Directors of Tuopu Group” (Bulletin #: 2021-045) |
| The Fourth Board of Directors The Ninth Meeting | 2021-7-29 | The following proposals were considered and passed: 1. "Proposal on Making Additional Investments in Polish Subsidiary" More details are available in the " Bulletin on Resolutions of the Ninth Meeting of the Fourth Board of Directors of Tuopu Group” (Bulletin #: 2021-055) |
| The Fourth Board of Directors The Tenth Meeting | 2021-8-19 | The following proposals were considered and passed: 1. "Proposal on <The 2021 Semi-annual Report of Tuopu Group> and the Extracts of Report" 2. "Proposal on the "Special Report on the Deposit and Use of Raised Funds of Tuopu Group in the First Half of 2021" |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| More details are available in the " Bulletin on Resolutions of the Tenth Meeting of the Fourth Board of Directors of Tuopu Group” (Bulletin #: 2021-058) | ||
| The Fourth Board of Directors The Eleventh Meeting | 2021-8-24 | The following proposal was considered and passed: 1. "Proposal on Conducting Financial Leasing Sale and Leaseback Business" More details are available in the "Bulletin on Resolutions of the Eleventh Meeting of the Fourth Board of Directors of Tuopu Group” (Bulletin #: 2021-061) |
| The Fourth Board of Directors The Twelfth Meeting | 2021-9-29 | The following proposals were considered and passed: 1. "Proposal on Changing the Use of Part of Raised Funds and Permanently Supplementing Working Capital" 2. "Proposal on Holding the 2021 Second Extraordinary General Meeting" More details are available in the "Bulletin on Resolutions of the Twelfth Meeting of the Fourth Board of Directors of Tuopu Group” (Bulletin #: 2021-064) |
| The 2021 First Interim Board of Directors | 2021-10-14 | The following proposal was considered and passed: 1. "Proposal on Calling Off the 2021 Second Extraordinary General Meeting" More details are available in the "Bulletin on Resolutions of the 2021 First Interim Board of Directors of Tuopu Group” (Bulletin #: 2021-068) |
| The Fourth Board of Directors The Thirteenth Meeting | 2021-10-21 | The following proposals were considered and passed: 1. "Proposal on <The 2021 Q3 Report of Tuopu Group>" 2. "Proposal on Revocation of the <Proposal on Changing the Use of Part of Raised Funds and Permanently Supplementing Working Capital>" 3. "Proposal on Using Part of Temporarily Idle Raised Funds to Temporarily Supplement Working Capital" More details are available in the "Bulletin on Resolutions of the Thirteenth Meeting of the Fourth Board of Directors of Tuopu Group” (Bulletin #: 2021-070) |
| The Fourth Board of Directors The Fourteenth Meeting | 2021-11-18 | The following proposals were considered and passed: 1. "Proposal on the Company's Eligibility for Public Issuance of Convertible Corporate Bonds" 2. "Proposal on the Company's Plan for Public Issuance of Convertible Corporate Bonds" 3. "Proposal on the Company's Pre-plan for Public Issuance of Convertible Corporate Bonds" 4. "Proposal on the Feasibility Analysis Report on the Use of Funds Raised by the Company's Public Issuance of Convertible Corporate Bonds" 5. "Proposal on the Company's Public Issuance of Convertible Corporate Bonds to Dilute Immediate Returns and Remedial Measures and Commitments Made by Related Subjects" 6. "Proposal on the <Rules of Proceedings of Convertible Corporate Bondholders' Meeting》 of the Company " 7. "Proposal on the Report on the Use of the Funds Previously Raised by Company" 8. "Proposal on Requesting the General Meeting to Authorize the Board of Directors and its Authorized Persons to Deal With the Specific Matters of the Public Issuance of Convertible Corporate Bonds in Full Authority" 9. "Proposal on Providing Guarantee for Wholly-owned |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| Sub-subsidiary to Apply for Bank Loans" 10. "Proposal on Requesting to Hold the “2021 Second Extraordinary General Meeting" More details are available in the "Bulletin on Resolutions of the Fourteenth Meeting of the Fourth Board of Directors of Tuopu Group” (Bulletin #: 2021-075) | ||
| The Fourth Board of Directors The Fifteenth Meeting | 2021-12-27 | The following proposals were considered and passed: 1. "Proposal on Incorporating A Wholly-owned Subsidiary" 2. "Proposal on Bidding for the Right to Use State-owned Construction Land" More details are available in the "Bulletin on Resolutions of the Fifteenth Meeting of the Fourth Board of Directors of Tuopu Group” (Bulletin #: 2021-087) |
VI.Performance of Duties by Directors
(1)Information about the presences of directors in board meeting and general meeting
| Name of director | Whether as independent director | Presences in board meeting | Presences in general meeting | |||||||
| Number of mandatory attendances in board meeting this year | Number of attendances in person | Number of attendances by communication means | Number of attendances by proxy | Number of absences | Whether failed to present in two consecutive meetings in person | Number of presences | ||||
| Wu Jianshu | No | 14 | 14 | 0 | 0 | 0 | No | 3 | ||
| Wang Bin | No | 14 | 14 | 0 | 0 | 0 | No | 3 | ||
| Pan Xiaoyong | No | 14 | 14 | 0 | 0 | 0 | No | 3 | ||
| Wu Weifeng | No | 14 | 14 | 0 | 0 | 0 | No | 3 | ||
| Jiang Kaihong | No | 14 | 14 | 0 | 0 | 0 | No | 3 | ||
| Zhou Ying | Yes | 14 | 14 | 2 | 0 | 0 | No | 3 | ||
| Zhao Xiangqiu | Yes | 14 | 14 | 2 | 0 | 0 | No | 3 | ||
| Wang Yongbin | Yes | 14 | 14 | 2 | 0 | 0 | No | 3 | ||
Notes to failure to be present in two consecutive meetings board meetings
□Applicable √Non-applicable
| Number of board meetings convened in the year | 14 |
| Including: number of on-site meetings | 12 |
| Number of meetings convened by communication means | 0 |
| Number of meetings convened on site by communication means | 2 |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
(2) Information about the objections raised by directors against related matters
□Applicable √Non-applicable
(3)Others
□Applicable √Non-applicable
VII. Information about Special Committees under the Board
√Applicable □Non-applicable
(1) Members of special committees under the Board of Directors
| Category of Special Committees | Name of Member |
| Auditing Committee | Zhou Ying(Chairman, Convenor)、Wang Yongbin、Wang Bin |
| Nomination Committee | Wang Yongbin(Chairman, Convenor)、Zhao Xiangqiu、Wu Jianshu |
| Remuneration and Assessment Committee | Zhao Xiangqiu(Chairman, Convenor)、Zhou Ying、Wu Jianshu |
| Strategy Committee | Wang Bin(Chairman, Convenor)、Pan Xiaoyong、Wu Weifeng |
(2) Four meetings held by the Auditing Committee during the reporting period
| Date of convention | Session | Key Opinions and Suggestions | Other Circumstances about Performance of Duties |
| 9 April 2021 | The Fourth Board of Directors The Second Working Meeting of the Auditing Committee | The following businesses were transacted and passed: I. "Proposal on the Full Text and Abstract of <The 2020 Annual Report>" 2. "Proposal on the Performance Report of the Auditing Committee of the Board of Directors in 2020" 3. "Proposal on the 2020 Internal Control Evaluation Report" 4. "Proposal on Renewing the Appointment of Auditing Institution in 2021" 5. "Proposal on Profit Distribution in 2020" 6. "Proposal on the 2020 Financial Final Account Report" 7. "Proposal on Confirming Related Party Transactions in 2020" 8. "Proposal on the deposit and Use of Raised Funds in 2020" 9. "Proposal on Using a Part of Temporarily Idle Raised Funds to Entrust Financial Management" 10. "Proposal on Using a Part of Temporarily Idle Raised Funds to Supplement Working Capital" 11. "Proposal on applying New Revenue Accounting Standards and Changing applicable Accounting Policies" 12. "Proposal on applying New Lease Accounting Standards and Changing applicable Accounting Policies" 13. "Proposal on using raised funds to replace self-raised funds that have been previously invested in equity investment projects” 14. "Proposal on using raised funds to replace the bank acceptance bills that have been previously invested in |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| equity investment projects" 15. "Proposal on Increasing the Implementation Subjects of equity Investment Projects" | |||
| 16 April 2021 | The Fourth Board of Directors The Third Working Meeting of the Auditing Committee | The following business was transacted and passed: 1. "Proposal on the 2021 Q1 Report" | |
| 19 August 2021 | The Fourth Board of Directors The Fourth Working Meeting of the Auditing Committee | The following business was transacted and passed: 1. "Proposal on the 2021 Semi-annual Report of Tuopu Group and the Extracts of Report” | |
| 21 October 2021 | The Fourth Board of Directors The Fifth Working Meeting of the Auditing Committee | The following business was transacted and passed: 1. "Proposal on the 2021 Q3 Report" |
(3). The Remuneration and Assessment Committee held the meeting during the reporting period
| Date of convention | Session | Key Opinions and Suggestions | Other Circumstances about Performance of Duties |
| 9 April 2021 | The Fourth Board of Directors The First Working Meeting of Remuneration and Assessment Committee | The following business was transacted and passed: In 2020, the Company strictly complied with the "Labor Law"; the management performed the duty of due diligence; the remuneration payable to all employees were paid in full sum and on schedule in accordance with the applicable law. | |
| 19 August 2021 | The Fourth Board of Directors The Second Working Meeting of Remuneration and Assessment Committee | The following business was transacted and passed: I. In the first half of 2021, the Company strictly complied with the "Labor Law"; the management performed the duty of due diligence; the remuneration payable to all employees were paid in full sum and on schedule in accordance with the applicable law. |
(4). The Strategy and Investment Committee held the second meeting during the reporting period
| Date of convention | Session | Key Opinions and Suggestions | Other Circumstances about Performance of Duties |
| 18 January 2021 | The Fourth Board of Directors The Third Working Meeting of Strategy and Investment Committee | The following business was transacted and passed: "Proposal on Bidding for the Right to Use State-owned Construction Land" |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| 18 November 2021 | The Fourth Board of Directors The Fourth Working Meeting of Strategy and Investment Committee | The following business was transacted and passed: The matter related to the initiation of public issuance of convertible corporate bonds; |
(5). Particulars about the Objected Matters
□Applicable √Non-applicable
VIII. Notes to Risks Identified by the Board of Supervisors
□Applicable √Non-applicable
The Supervisory Committee has no objection to the supervision matters during the reporting period.
IX. Employees of the Parent and Major Subsidiaries at the End of The Reporting Period
(1)Staff members
| Number of staff members serving the parent company | 5,065 |
| Number of staff members serving major subsidiaries | 7,719 |
| Total number of staff members in service | 12,784 |
| Number of retiring employees to whom the parent company and other subsidiaries have to bear costs and expenses | |
| Composition of job positions | |
| Category of job positions | Number of specialsits |
| Production staff | 6,708 |
| Marekting staff | 402 |
| Technical staff | 3,371 |
| Financial staff | 187 |
| Administrative staff | 2,116 |
| Total | 12,784 |
| Education Background | |
| Category of education | Number of members (persons) |
| Holders of doctoral, master degrees | 108 |
| Holders of bachelor degrees | 1,372 |
| Graduated from junior college, technical secondary school | 4,638 |
| Others | 6,666 |
| Total | 12,784 |
(2)Salary policy
√Applicable □Non-applicable
In line with the strategic development needs of the Company and considering the general salary ofthe industry and local salary level, the Company has prepared a package of incentive salary rules that aremore favorable to strategic talents. The Company has been adhering to the concept of sustainabledevelopment. Along with the development process, the Company provides more favorable benefits andsalary to staff members, allowing them to share the gains from the development. According to thesituation of development, availability of talents, and the general salary of the industry, the salary policyapplicable to staff members may be subject to a change from time to time, with a view to meeting theneeds of sustainable development and attracting more prominent talents to grow with the Company.
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
(3)Training plan
√Applicable □Non-applicable
Given the characteristics of the automobile industry and the company-specific development plan,the Company has developed a well-organized and efficient training system, in order to prepare necessarytalents for R&D, proceses, tests, quality, production, purchasing activities, transportation, marketingsales, finance, IT and human resources. The Company provides staff members with an access to all sortsof professional learning, take part in industry technical exchanges and management forums. In turn, staffmembers at all levels can attend well-organized training sessions, acquire good job-related skills,improve business and management capabilities, and provide ample talent reserves for the long-termsustainable development.
(4)Outsourcing of labor services
□Applicable √Non-applicable
X.The plan for the profit distribution of common stocks or the transfer of capital reserves
(1) Preparation, execution or adjustment of cash dividend policy
√Applicable □Non-applicable
To maintain the continuity and stability of the profit distribution policy, make the transparency andoperability of dividend distribution decisions more transparent and viable, and protect the legitimaterights and interests of small and medium shareholders, the Company drafted the “Tuopu Group’s Planfor Dividend Distribution to Shareholders in the Next Three Years (2021-2023)” under the relevantregulations released by CSRC, SSE and other authorities, as well as the “Articles of Association”, whichwas considered and passed at the general meeting of 2020. The above plan was disclosed on SSEwebsite on 20 April 2021.
The above plan sets out: if the Company is available for distributing cash dividends, then it isprioritized to distribute dividends in cash. Profit can be distributed in cash, stocks or a combination ofboth. Where the conditions for dividend distribution are satisfied, with an adequate amount of statutoryreserve funds and surplus reserve funds retained, if there is no event of significant cash expenditures, theprofit distributed in cash in a single year shall be in principle no less than 30% of the profit available fordistribution in the current year.
The Company is strictly implementing the above plan of dividend distribution to shareholders.
(2) Special note to cash dividend policy
√Applicable □Non-applicable
| Whether this policy complies with the provisions of these Articles of Association or the requirements of the resolutions of the general meeting | √Y □N |
| Whether the dividend standard and proportion are definitive and clear? | √Y □N |
| Whether the relevant decision procedures and mechanisms are complete? | √Y □N |
| Whether independent directors have performed their duties of due diligence and fulfilled due roles? | √Y □N |
| Whether the minority shareholders have the chance to fully express their opinions and demands, and whether their legitimate rights and interests are fully protected? | √Y □N |
(3) If the Company earns profit during the reporting period and the parent's profit available toshareholders for distribution is positive, but no cash profit distribution plan has been proposed,the Company is required to give the exact reasons and the intended use and the plan of utilizingundistributed profits.
□Applicable √Non-applicable
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
Ⅺ.Conditions and Impact of Equity Incentive Plan, ESOP (employee stock ownership plan) orOther Employee Incentive Measures of the Company
(1)Related incentive events have been disclosed in the provisional announcement and there is noprogress or change in subsequent implementation
□Applicable √Non-applicable
Incentives that are not disclosed in the provisional announcement or there is a progress in subsequentimplementationCondition of equity incentives
□Applicable √Non-applicable
Other notes
□Applicable √Non-applicable
ESOP
□Applicable √Non-applicable
Other incentives
□Applicable √Non-applicable
(2)Share incentives granted by directors, supervisors and officers during the reporting period
□Applicable √Non-applicable
(3)During the reporting period, the evaluation mechanism for officers, as well as the condition ofestablishment and implementation of the incentive mechanism
□Applicable √Non-applicable
Ⅻ. Construction and execution of internal control system during the reporting period
□Applicable □Non-applicable
During the reporting period, the Company has established a strict internal control managementsystem exactly as per the laws and regulatiosn formulated by CSRC and those udner the “Company Law”and “Articles of Association”, continued to modified and specified such internal control managementsystem in consideration of industry-wide characteristics and its business operations, improved theefficiency of business decisions, provided some guarantee for the legal compliance of businessoperations and management and the asset safety, and promoted the steady execution of companystrategies.Such internal control system is structurally reasonable, the internal control system framework suitsthe requirements of five ministries and commissions including the Ministry of Finance and the ChinaSecurities Regulatory Commission that internal control system should be complete, reasonable andeffective, and meets the needs of company management and development. The Company is modifyingthe internal control system and making it work, has attained the anticipated objective as to internalcontrol, and protected the interests of the Company and all shareholders. At the 18th session of theFourth Board of Directors, the "Proposal on the 2021 Internal Control Evaluation Report" was considredand passed, and the full text of the “2021 Internal Control Evaluation Report of Tuopu Group” wasdisclosed on the SSE website on the same day.
Notes to significant deficiencies in internal control during the reporting period
□Applicable √Non-applicable
XIII. Management and control status of subsidiaries during the reporting period
□Applicable □Non-applicable
During the reporting period, the Company subjected its subsidiaries to total budget control andenhanced the early warning competence by modifying the effective internal control mechanism. With aninternal control system deployed from the management level to the business level, the Company further
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
strengthed the ability in total risk control by performing financial data analysis on the OA and ERPsystems.
XIV. Notes to relevant information on the internal control audit report
√Applicable □Non-applicable
The Company appointed BDO China Shu Lun Pan Certified Public Accountants LLP (SpecialGeneral Partnership) to audit its internal control and issued standard unqualified audit report. Moredetails are available in the “2021 Internal Control Audit Report of Ningbo Tuopu Group Co., Ltd.” asdisclosed on the SSE website on the same day (Xin Kuai Bao Zi [2022] No. ZF10293).
Whether the internal control audit report has been disclosed: YesType of internal control audit report： Standard and unqualified audit report
XV. Rectification of self-examining problems in the special action as to listed company governanceNon-applicable
XVI.Others
□Applicable √Non-applicable
Section 5 Environmental and Social Responsibility
Ⅰ.Information about environment
(1)Notes to the environmental protection conditions of companies and their important subsidiariesannounced by the environmental protection authority as key emission entities
√Applicable □Non-applicable
1. Information about emissions
√Applicable □Non-applicable
During the reporting period, the key emissions of relevant companies or subsidiaries announced bythe environmental protection authorities are provided as follows:
(1)Under the "Notice of Ningbo Municipal Bureau of Ecology and Environment on printing andhanding out the list of key emission entities in Ningbo in 2021" (Yong Huan Fa (2021) No.27), ascirculated by Ningbo Municipal Bureau of Ecology and Environment on April 30, 2021, the plantaddressed at Guanhai Road, Chunxiao Street, Beilun District, Ningbo (“Guanhai Road Plant”) isincluded on the list of key water environment emission entities and the list of key soil environmentsupervised entities; the plant addressed at Longtanshan Rd, Beilun District, Ningbo (“Longtanshan RoadPlant”) is included on the list of key soil environment 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" (Yong Huan Fa (2021) No.27), ascirculated by Ningbo Municipal Bureau of Ecology and Environment on April 30, 2021, thewholly-owned subsidiary plant Ningbo Tuopu Automotive Electronics Co., Ltd. (“Tuopu AutomotiveElectronics”) addressed in Hangzhou Bay New Area, Ningbo, is included on the list of key soilenvironment supervised entities.
(3)Under the " Notice on release of the list of key emission entities in Jinhua in 2021 (Updated)”, ascirculated by Jinhua Ecological Environment Bureau on 3 November 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) (Updated)”, ascirculated by Suining Ecological Environment Bureau on 15 November 2021, Sichuan MaigaoAutomobile Parts Co., Ltd. (“Sichuan Maigao”), the wholly-owned subsidiary addressed at IndustrialConcentration Development Zone of Anju, Suining, is included on the list of key soil environmentsupervised entities.
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
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 EnvironmentBureau, serial no.:91330201MA2833A9XR001Q.
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 sewage
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
pipeline 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 7.02, COD is 1.3mg/L, ammonianitrogen is 8.29MG/L, suspended solids is 10MG/L, petroleum is 0.06MG/L, total phosphorus is
0.06MG/L, Zinc is 0.016MG/L, and anionic surfactant is 0.05MG/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 "National SolidWaste 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.,Lanxi Zili Environmental TechnologyCo., Ltd., Ningbo Beilun Environmental Solid Waste Disposal Co., Ltd., Zhejiang Kaikang MetalProducts Co., Ltd., Ningbo Bochuan Waste Liquid Disposal Co., Ltd., and Zhejiang YongliEnvironmental Technology Co., 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, serialno.: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 to
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
treatment process is discharged into the municipal pipeline system. Actual data of production wastewatertest: pH value is 7.20, 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 monitoringsystem 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＜0.09 mg/L, pH value is 7.2, COD is 281 mg/L; ammonia nitrogen is 20.8 mg/L（Category 5 standardvalue applicable to this project）, total phosphorus is 8 mg/L（Category 5 standard value applicable to thisproject）, petroleum is 0.32 mg/L. Actual data of domestic wastewater test: pH value is 7.4,suspendedmatter is 70mg/L, COD is 278 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 Sichuan Maigao and Zigong Jinlong Cement 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 realtime, 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 Sichuan Maigao and Zigong Jinlong Cement Co.,Ltd.
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
3. EIA of construction projects and administrative permits granted to other environmental
protection
√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:330206-2022-013-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
During the reporting period, Pinghu Tuopu Special Fabric Co., Ltd., a wholly-owned subsidiary ofthe Company, subjected to an administrative penalty of RMB 100,000 by Pinghu Branch of JiaxingEcological Environment Bureau on 2 August 2021 for failing to store hazardous wastes under theapplicable national regulations. (Jia Huan (Ping) Fa [2021] No. 45).
In September 2021, Pinghu Tuopu Special Fabric Co., Ltd. rectified the environmental violationunder the above administrative penalties, causing no serious environmental pollution, which should notbe considered a material breach of laws and regulations.
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)Relevant information that benefits ecosystem protection, pollution control, and fulfillmentenvironmental responsibilities
□Applicable √Non-applicable
(4)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 of
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
clean energy, directly reduce carbon emissions, reduce energy consumption and cost. Until now, 32 MWPV power stations have been built and connected to the grid, 20 MW is under construction, 30 MW isscheduled for 2023; 800 KWh energy storage staions are under construction, 2000 Kwh are scheduledfor 2023.
This project stays in line with the company vision and mission statement and improveseco-friendly development level, signifying its attention to ESG control, contributing to the goal of peakcarbon dioxide emissions and carbon neutrality.
Ⅱ.Fulfillment of social responsibility
√Applicable □Non-applicable
The management has consistently valued corporate social responsibility and the Company’s vision is tofaithfully maintain five social relations: to make customers, employees, shareholders, society andpartners statisfied.To make customers satisfied: customer-centered, create value for customers and provide customerswith a full package of QSTP services.
To make shareholders satisfied: with continued efforts to improve business performance, themanagement pays back shareholders with a high rate of return. The Company proposes to distribute thedividends of RMB 306 million to return investors, in a ratio of 30.12% of the net profit attributable tothe parent for the year. In addition, the Company is working to enhance the management of investorrelations. With proper information disclosure, further efforts are made to improve the initiative,pertinence and effectiveness of information disclosure, and to subject to the supervision of investors.The Company proactively creates open, fair, transparent and multi-dimensional investor relationsthrough general meetings, SSE e Interaction, phone calls from and to investors, exchange meetings withinvestors, investors’ survey among other interaction platforms. In June 2021, the Company held anon-site investor exchange meeting, with more than 200 investors present at the meeting. The presidentshared the business scenarios, financial standing and potential development strategy to investors, andenhanced its value and capital market influence, which in turn gained extensive recognition of investorsand market value returns.
To make employees satisfied: the Company strictly abides by the "Labor Law" and other applicablelaws and regulations, and has laid down rules and regulations with a view to maintaining the rights andinterests of staff members. A reasonable human resource management system and well-designedcompensation system have been established. While improving the benefits distributed to staff members,the management also proposes the setup of a learning organization and fosters working scenarios inwhich employees would actively and spontaneously “emulate, learn from, catch up with, help and in turnsurpass each other”. Meanwhile, the Company activates the mechanism of trial and error and faulttolerance to devise career development platform for all staff members to attain their career plans andgoals.
To make the society satisfied: lawful business operations and tax payments, highly responsive toCOVID-19 prevention, fulfilling corporate citizenship obligations; creating job opportunities, boostinglocal economic growth. Practically putting environmental protection and sustainable developmentpolicies into operation, more details are available in “Section 5 I. Information about environment”.
To make partners satisified: strictly following business rules, transmitting advanced businessphilosophies, and helping suppliers grow together.
Ⅲ.Particulars of consolidating and expanding the deliverables of poverty alleviation, ruralrevitalization and other tasks
□Applicable √Non-applicable
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
Section 6 Significant Events
II. Performance of commitments
(1) Commitments made by actual controllers, shareholders, related parties, acquirers of the Company, and the Company and other related partiesmaking commitments during the reporting period or continuing to the reporting period
√Applicable □Non-applicable
| Background of commitment | Type of commitment | Committed by | Content of commitment | Date and deadline of commitment | Whether there is a deadline for performance | Whether performed strictly and timely | If such commitments cannot be completed timely, state the specific reason | If such commitments cannot be completed timely, state the next plan |
| Commitment related to the share reform | ||||||||
| Commitment made in the report of acquisition or the report of equity change | ||||||||
| Commitment related to significant asset restructuring | ||||||||
| Commitment related to IPO | intratype compet | MECCA INTERNATION | 1. The Company does not have, and will not be directly or indirectly engaged in, or by any form including but not limited to holding, participating of shares, joint venture, associate | March 2012, continuous | No | Yes | NA | NA |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| ition | AL HOLDING （HK） LIMITED | partnership, lease, agent operation, trust or other similar form engage in any operation or activity that may have constituted or substantially constitute a current or potential competition against the existing and future operations of Tuopu Group and its holding subsidiaries. 2. For companies and economic entities directly or indirectly controlled by the Company, the Company will procure such companies and economic entities to perform the obligations of avoiding competition as contained in the letter of commitment having equivalent standards to the Company/Enterprise by sending out institutions and persons (including but not limited to directors, managing directors, financial officers) or by gaining the controlling status (e.g.: shareholders’ rights, directors’ rights), so as to keep such companies and economic entities from competing against Tuopu Group and its subsidiaries. 3. If any change in policies and regulations or other reasons that are not attributable to the Company unavoidably causes other companies or economic entities controlled by Company or any company or economic entity that the Company may impose significant impact has constituted or may potentially constitute competition, Tuopu Group shall have the right of first refusal as to the trusted management (contracting operation, leasing operation) or acquisition in respect of such operations that have constituted or may potentially constitute competition. 4. The above commitments are unconditional, if a violation of the above commitments inflicts any financial loss to Tuopu Group, the Company will indemnify other shareholders or interested parties of Tuopu Group against such losses as comprehensive, prompt and sufficient. 5. This letter of commitment shall remain in force and effect whenever the Company and any company controlled by the Company are related to Tuopu Group. | ||||||
| Commitment related to IPO | Resolve related | MECCA INTERNATION | 1. The Company and its controlled entities will do the utmost to avoid related transactions with the issuer and its subsidiaries. 2. If related party transactions are unavoidable, both parties to the | March 2012, continuous | No | Yes | NA | NA |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| party transactions | AL HOLDING （HK） LIMITED | transactions will strictly follow the normal business code of conduct. The pricing policy applicable to related party transactions must follow the principles of fairness, impartiality and openness in the market, and the transaction price is fixed at the price at which the transaction are conducted with an independent third party in the market. For major related party transactions without market price available for comparison or pricing is restricted, the transaction price shall be fixed at the cost of the commodities or labor services traded in accordance with a reasonable profit standard with a view to ensuring fair transaction prices. 3. The Company undertakes to perform the necessary procedures in strict accordance with the current national laws, regulations, normative documents, the “Articles of Association”, the “Related Party Transaction Control System” and other applicable provisions, adhere to the principles of market fairness, fairness and openness, and define the rights and obligations of both parties, and maintain the fairness and reasonableness of related party transactions, without any circumstance prejudicing the interests of all shareholders of Tuopu. 4. The Company and its controlled entities will not illegally occupy the funds and any other assets and resources of Tuopu Group for any reason or in any manner whatsoever, and will not require Tuopu Group to provide any form of guarantee under any circumstances whatsoever. 5. The above commitments are unconditional, if a violation of the above commitments inflicts any financial loss to Tuopu Group, the Company will indemnify other shareholders or interested parties of Tuopu Group against such losses as comprehensive, prompt and sufficient. 6. This letter of commitment shall remain in force and effect whenever the Company and its controlled entities are related to Tuopu Group. | ||||||
| Commitment related to IPO | other | MECCA INTERN | If the issuer's prospectus contains any falsified records, misleading statements or material omissions, which constitutes a | March 2015, continuous | No | Yes | NA | NA |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| ATIONAL HOLDING （HK） LIMITED | significant and substantial impact on determining whether the issuer meets the issuance conditions as prescribed by law, the Company will, within 30 days after the CSRC rules illegal facts, repurchase the restricted shares that are originally transferred, and urge the issuer to repurchase all new shares in this public offering; the Company will fix the repurchase price at the higher of the issuer's stock issue price and the average transaction price of the issuer's stock within 30 trading days before the CSRC rules illegal facts, and repurchase all the original restricted shares that have been sold. If the issuer's shares are involved in the issuance of bonus shares or conversion of capital reserves into share capital, such issue price and repurchase quantity will be adjusted where applicable. The Company will indemnify the investors enduring financial losses in securities transactions due to false records, misleading statements or material omissions in the issuer's prospectus for this public offering of stocks. Within 30 days after such illegal facts are ruled by CSRC, the stock exchange or the judicial authority, the Company will, in line with the principles of simplifying procedures, actively negotiating, compensating in advance, maintaining the interests of investors, especially small and medium investors, and in accordance with the measurable economic losses directly endured by investors, elect to reconcile with investors, mediate with investors through third parties, or otherwise establish investor compensation funds to actively indemnify the investors harmless from and against the direct economic losses endured therein. The standard, scope of subjects and sum of such indemnity shall be subject to the final indemnification plan prevailing in the occurrence of the above circumstances. | |||||||
| Commitment related to IPO | other | MECCA INTERNATIONAL HOLDING | From August 31, 2012, nothing will procure Ningbo Tuopu Group Co., Ltd. to use any raised funds from this issuance and listing for real estate business or real estate enterprises. | August 2012, continuous | No | Yes | NA | NA |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| （HK） LIMITED | ||||||||
| Commitment related to IPO | other | Ningbo Tuopu Group Co., Ltd. | If the issuer's prospectus contains any falsified records, misleading statements or material omissions, which constitutes a significant and substantial impact on determining whether the issuer meets the issuance conditions as prescribed by law, the Company will, within 30 days after the CSRC rules illegal facts, repurchase the restricted shares that are originally transferred, and urge the issuer to repurchase all new shares in this public offering; the Company will fix the repurchase price at the higher of the issuer's stock issue price and the average transaction price of the issuer's stock within 30 trading days before the CSRC rules illegal facts, and repurchase all the original restricted shares that have been sold. If the issuer's shares are involved in the issuance of bonus shares or conversion of capital reserves into share capital, such issue price and repurchase quantity will be adjusted where applicable. The Company will indemnify the investors enduring financial losses in securities transactions due to false records, misleading statements or material omissions in the issuer's prospectus for this public offering of stocks. Within 30 days after such illegal facts are ruled by CSRC, the stock exchange or the judicial authority, the Company will, in line with the principles of simplifying procedures, actively negotiating, compensating in advance, maintaining the interests of investors, especially small and medium investors, and in accordance with the measurable economic losses directly endured by investors, elect to reconcile with investors, mediate with investors through third parties, or otherwise establish investor compensation funds to actively indemnify the investors harmless from and against the direct economic losses endured therein. The standard, scope of subjects and sum of such indemnity shall be subject to the final indemnification plan prevailing in the occurrence of the above circumstances. | March 2015, continuous | No | Yes | NA | NA |
| Commitment related | other | Ningbo | If the company's stock price falls below its audited net assets per | March 2015, | No | Yes | NA | NA |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| to IPO | Tuopu Group Co., Ltd. | share in the previous year within three years after its IPO and listing (hereinafter referred to as "net asset value per share", total number of the ordinary shareholders' equity attributable to the parent in the consolidated financial statements/number of shares of the company at the end of the year, if the company conducts ex-rights or ex-dividends due to distribution of cash dividends, bonus shares, conversion of share capital, additional issuance of new shares, the above price should be adjusted accordingly, hereinafter inclusive). The Company repurchases its shares through centralized bidding, tender offer or other means as approved by the securities regulatory authorities. The Company further commits that total amount of funds used to repurchase shares must not exceed the total sum of funds raised by its IPO of new shares; the amount of funds used to repurchase its shares for stabilizing the stock price within each period of 12 months from the date of listing shall not be less than RMB 50 million, and the repurchase price must not exceed the latest audited net asset value per share before the announcement of such price stability plan. | continuous | |||||
| Commitment related to IPO | other | Ningbo Tuopu Group Co., Ltd. | From August 31, 2012, nothing will procure Ningbo Tuopu Group Co., Ltd. to use any raised funds from this issuance and listing for real estate business or real estate enterprises. | August 2012, continuous | No | Yes | NA | NA |
| Commitment related to IPO | Resolve related party transactions | Wu Jianshu | 1. I and controlled entities will do the utmost to avoid related transactions with the issuer and its subsidiaries. 2. If related party transactions are unavoidable, both parties to the transactions will strictly follow the normal business code of conduct. The pricing policy applicable to related party transactions must follow the principles of fairness, impartiality and openness in the market, and the transaction price is fixed at the price at which the transaction are conducted with an independent third party in the market. For major related party transactions without market price available for comparison or pricing is restricted, the transaction price shall be fixed at the cost of the commodities or labor services traded in accordance with a reasonable profit standard with a view to ensuring fair transaction | March 2012, continuous | No | Yes | NA | NA |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| prices. 3. I undertake to perform the necessary procedures in strict accordance with the current national laws, regulations, normative documents, the “Articles of Association”, the “Related Party Transaction Control System” and other applicable provisions, adhere to the principles of market fairness, fairness and openness, and define the rights and obligations of both parties, and maintain the fairness and reasonableness of related party transactions, without any circumstance prejudicing the interests of all shareholders of Tuopu. 4. I and controlled entities will not illegally occupy the funds and any other assets and resources of Tuopu Group for any reason or in any manner whatsoever, and will not require Tuopu Group to provide any form of guarantee under any circumstances whatsoever. 5. The above commitments are unconditional, if a violation of the above commitments inflicts any financial loss to Tuopu Group, I will indemnify other shareholders or interested parties of Tuopu Group against such losses as comprehensive, prompt and sufficient. 6. This letter of commitment shall remain in force and effect whenever I and any company controlled by I are related to Tuopu Group. | ||||||||
| Commitment related to IPO | Resolve intratype competition | Wu Jianshu | 1. I does not have, and will not be directly or indirectly engaged in, or by any form including but not limited to holding, participating of shares, joint venture, associate partnership, lease, agent operation, trust or other similar form engage in any operation or activity that may have constituted or substantially constitute a current or potential competition against the existing and future operations of Tuopu Group and its holding subsidiaries. 2. For companies and economic entities directly or indirectly controlled by I, I will procure such companies and economic entities to perform the obligations of avoiding competition as contained in the letter of commitment having equivalent standards to I by sending out institutions and persons | March 2012, continuous | No | Yes | NA | NA |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| (including but not limited to directors, managing directors, financial officers) or by gaining the controlling status (e.g.: shareholders’ rights, directors’ rights), so as to keep such companies and economic entities from competing against Tuopu Group and its subsidiaries. 3. If any change in policies and regulations or other reasons that are not attributable to I unavoidably causes other companies or economic entities controlled by Company/Enterprise or any company or economic entity that I may impose significant impact has constituted or may potentially constitute competition, Tuopu Group shall have the right of first refusal as to the trusted management (contracting operation, leasing operation) or acquisition in respect of such operations that have constituted or may potentially constitute competition. 4. The above commitments are unconditional, if a violation of the above commitments inflicts any financial loss to Tuopu Group, I will indemnify other shareholders or interested parties of Tuopu Group against such losses as comprehensive, prompt and sufficient. 5. This letter of commitment shall remain in force and effect whenever I and any company controlled by I are related to Tuopu Group. | |||||||
| Other | Wu Jianshu | The Company will indemnify the investors enduring financial losses in securities transactions due to false records, misleading statements or material omissions in the issuer's prospectus for this public offering of stocks. Within 30 days after such illegal facts are ruled by CSRC, the stock exchange or the judicial authority, the Company will, in line with the principles of simplifying procedures, actively negotiating, compensating in advance, maintaining the interests of investors, especially small and medium investors, and in accordance with the measurable economic losses directly endured by investors, elect to reconcile with investors, mediate with investors through third parties, or otherwise establish investor compensation funds to actively indemnify the investors harmless from and against the direct economic losses endured therein. The standard, scope of subjects and sum of such indemnity shall be subject to the final | March 2015, continuous | No | Yes | NA | NA |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| indemnification plan prevailing in the occurrence of the above circumstances. | ||||||||
| Commitment related to refinancing | ||||||||
| Commitment related to equity incentives | ||||||||
| Other commitments made to the small and medium shareholders of the Company | ||||||||
| Other commitments | ||||||||
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
(2) There is an expected profit as to the assets or projects of the Company, and the reportingperiod still falls in the profit expectation period, the Company states whether the assets or projectsattain the original profit expectation and gives the reason
□Attained □Not attained √Non-applicable
(3) The status of performance of commitments and its impact on the goodwill impairment test
□Applicable √Non-applicable
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. Notes of the Board of Directors to the "Modified Audit Opinion Report" Released by theAccounting Firm
□Applicable √Non-applicable
V. Notes to Analysis of the Reasons and Impact of Changes in Accounting Policies, AccountingEstimates or Corrections of Major Accounting Errors
(1) Notes to analysis of the Reasons and Impact of Changes in Accounting Policies or AccountingEstimates
√Applicable □Non-applicable
The Ministry of Finance issued the "Accounting Standards for Business Enterprises No. 21-Lease (2018Revision)" (Cai Kuai [2018] No. 35) on Dec.7, 2018, the Company will implement the updated versionof revenue standards from January 1, 2021.From the 2021 Q1 report, the accounting statements will bedisclosed under the provisions of the "New Lease Standards", and the amount of retained earnings at thebeginning of the period and other related items in the financial statements will be adjusted according tothe cumulative impact of the first implementation of the standard, and the information of comparableperiods will not be adjusted. This accounting policy change is not expected to have a significant impacton the financial standing and operating results of the Company, nor does it impair the interests of thecompany and shareholders.
(2) Notes to Analysis of the Reasons and Impact of the Correction of Major Accounting Errors
□Applicable √Non-applicable
(3) Communication with the Former Accounting Firm
□Applicable √Non-applicable
(4) Other Notes
□Applicable √Non-applicable
VI. Appointment and Dismissal of Accounting Firm
Unit：in 10,000 Yuan Currency：RMB
| Current Accounting Firm | |
| Name of domestic accounting firm | BDO China Shu Lun Pan Certified Public Accountants LLP (Special General Partnership) |
| Remuneration paid to domestic accounting firm | 225 |
| Audit period of domestic accounting firm | 11 |
| Name | Remuneration | |
| Accounting firm responsible for internal control audit | BDO China Shu Lun Pan Certified Public Accountants LLP (Special General Partnership) | 40 |
| Sponsor | China Merchants Securities Co. Ltd | NA |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
Notes to appointment and dismissal of accounting firm
√Applicable □Non-applicable
The 2020 general meeting convened by the Company on May 10, 2021 considered and passed the“Resolution on Renewal of the Appointment of Audit Institution for 2020”, and decided to renew theappointment of BDO China Shu Lun Pan Certified Public Accountants LLP (Special GeneralPartnership) as the audit institution of 2021, who will provide audit and internal control audit services ofthe financial report of 2021 for the Company.
Notes to change of accounting firm during the reporting period
□Applicable √Non-applicable
VII. Circumstance of delisting risk
(1) Reasons leading to the warning for delisting risk
□Applicable √Non-applicable
(2) Proposed responses by the Company
□Applicable √Non-applicable
（3）Exposure to the risk of delisting and the reason behind it
□Applicable √Non-applicable
VIII. Events concerning bankruptcy and reorganization
□Applicable √Non-applicable
IX. Significant Lawsuits and Arbitrations
□The Company is involved in any significant lawsuits and arbitrations in the current year
√The Company is not involved in any significant lawsuits and arbitrations in the current year
X. Listed companies and their directors, supervisors, offiers, controlling shareholders, and actualcontrollers suspected of violations of laws and regulations and the situation of punishments andrectifications
□Applicable √Non-applicable
XI. Notes to the Credit Standing of the Company and Its Controlling Shareholders and ActualControllers during the Reporting Period
□Applicable √Non-applicable
XII. 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
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
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
□Applicable √Non-applicable
XIII. Major contracts and contract performance1 .Matters relating to trusteeship, contracting and leasing
□Applicable √Non-applicable
2. Contracting
□Applicable √Non-applicable
3. Leasing
□Applicable √Non-applicable
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
(2) Guarantee
√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 | |
| Total amount of guarantees during the reporting period (other than guarantees to subsidiaries) | |||||||||||||||
| Total balance of guarantees at the end of the reporting period (A) (other than guarantees to subsidiaries) | |||||||||||||||
| Guarantees by the Company to its subsidiaries | |||||||||||||||
| Total amount of guarantees to subsidiaries during the reporting period | 114,174,400 | ||||||||||||||
| Total balance of guarantees to subsidiaries at the end of the reporting period (B) | 114,174,400 | ||||||||||||||
| Total amount of company guarantees (including its guarantees to subsidiaries) | |||||||||||||||
| Total guarantees (A+B) | 114,174,400 | ||||||||||||||
| Total guarantees as a percentage of the Company's net assets (%) | 1.08 | ||||||||||||||
| Including: | |||||||||||||||
| 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 | ||||||||||||||
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| 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 | （1）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. 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). (2) Top Hangzhou Bay PV Technology Co., Ltd. is a new wholly-owned sub-subsidiary incorporated on June 11, 2021, specialized in photovoltaic power generation, prospectively applies to China Development Bank Ningbo Branch for a long-term loan project up to RMB 60 million. The Company will provide mortgage guarantees for the loan in the form of its own land, plant and other assets. The above performance guarantees have been reviewed and approved at the 14th meeting of the Fourth Board of Directors. More details are available in “Announcement of Tuopu Group on Providing Performance Guarantees for Bank Loans to Wholly-owned Sub-subsidiary”disclosed by the Company on the portal site of Shanghai Stock Exchange on November 20, 2021. (Announcement No. 2021-079). The gross sum of the above two guarantees is RMB 114,174,400. |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
(3) Entrusting others to manage cash assets
1. Entrusted financial management
(1) General conditions of entrusted financial management
√Applicable □Non-applicable
Unit：in 10,000 Yuan Currency：RMB
| Type | Source of funds | Amount incurred | Unmatured amount | Unrecovered amount after the maturity |
| Structured deposits | Raised funds | 177,000.00 | 32,000.00 | 0.00 |
Other Conditions
□Applicable √Non-applicable
(2) Individual entrusted financial management
√Applicable □Non-applicable
Unit:10000Yuan Currency: RMB
| Trustee | Type of entrusted financial management | Amount of entrusted financial management | Start date of entrusted financial management | End date of entrusted financial management | Source of funds | Use of funds | Method of fixing returns | Annualized returns | Expected returns (if any) | Actual returns or losses | Actual recovery | If subject to statutory procedure | If there is any entrusted financial management plan | Extent of impairment provision (if any) |
| Bank of China Beilun Sub-branch | Structured deposits | 19,900.00 | 2021/3/19 | 2021/6/21 | Raised funds | Guaranteed non-fixed returns | 3.50% | 179.37 | 19,900.00 | Yes |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| Bank of Ningbo Xinqi Sub-branch | Structured deposits | 30,100.00 | 2021/3/19 | 2021/6/21 | Raised funds | Guaranteed non-fixed returns | 3.60% | 279.06 | 30,100.00 | Yes | ||||
| Shanghai Pudong Development Bank Ningbo Development Zone Sub-branch | Structured deposits | 10,000.00 | 2021/6/16 | 2021/9/15 | Raised funds | Guaranteed non-fixed returns | 3.30% | 82.50 | 10,000.00 | Yes | ||||
| Bank of Ningbo Xinqi Sub-branch | Structured deposits | 20,000.00 | 2021/6/21 | 2021/9/22 | Raised funds | Guaranteed non-fixed returns | 3.60% | 183.45 | 20,000.00 | Yes | ||||
| Ping An Bank Beilun Sub-branch | Structured deposits | 10,000.00 | 2021/6/18 | 2021/12/17 | Raised funds | Guaranteed non-fixed returns | 3.35% | 167.04 | 10,000.00 | Yes | ||||
| Bank of | Structure | 10,000.00 | 2021/7/9 | 2021/12/28 | Raised | Guarant | 3.62% | 170.59 | 10,000.0 | Yes |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| China Beilun Sub-branch | d deposits | funds | eed non-fixed returns | 0 | ||||||||||
| Bank of China Beilun Sub-branch | Structured deposits | 5,000.00 | 2021/7/9 | 2021/12/28 | Raised funds | Guaranteed non-fixed returns | 3.62% | 85.29 | 5,000.00 | Yes | ||||
| Bank of Hangzhou Beilun Sub-branch | Structured deposits | 10,000.00 | 2021/7/9 | 2021/12/28 | Raised funds | Guaranteed non-fixed returns | 3.80% | 179.07 | 10,000.00 | Yes | ||||
| Bank of Hangzhou Beilun Sub-branch | Structured deposits | 22,000.00 | 2021/7/9 | 2021/12/28 | Raised funds | Guaranteed non-fixed returns | 3.80% | 393.95 | 22,000.00 | Yes | ||||
| Bank of Hangzhou Beilun Sub-branch | Structured deposits | 8,000.00 | 2021/7/9 | 2021/12/28 | Raised funds | Guaranteed non-fixed returns | 3.80% | 143.25 | 8,000.00 | Yes | ||||
| Bank of China Beilun | Structured deposits | 22,000.00 | 2021/12/30 | 2022/6/28 | Raised funds | Guaranteed non-fix | 3.80% | Yes |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| Sub-branch | ed returns | |||||||||||||
| Bank of Hangzhou Beilun Sub-branch | Structured deposits | 5,000.00 | 2021/12/30 | 2022/3/31 | Raised funds | Guaranteed non-fixed returns | 3.95% | Yes | ||||||
| Bank of Hangzhou Beilun Sub-branch | Structured deposits | 5,000.00 | 2021/12/30 | 2022/3/31 | Raised funds | Guaranteed non-fixed returns | 3.95% | Yes |
Other Conditions
□Applicable √Non-applicabl
(3) Impairment provision for entrusted financial management
□Applicable √Non-applicable
2. Conditions of entrusted loans
(1) General conditions of entrusted loans
□Applicable √Non-applicable
Other conditions
□Applicable √Non-applicable
(2) Individual entrusted loans
□Applicable √Non-applicable
Other Conditions
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
□Applicable √Non-applicable
(3) Impairment provision for entrusted loans
□Applicable √Non-applicable
3. Other Conditions
□Applicable √Non-applicable
(4) Other Significant Contracts
□Applicable √Non-applicable
XIV. Note to other major events that have a significant impact on investors' value judgments and investment decisions
□Applicable √Non-applicable
Section 7 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 | 0 | 0 | 47,058,823 | -47,058,823 | 0 | 0 | 0 | ||
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| sale | |||||||||
| 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 | 0 | 0 | 0 | ||||
| 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 | 0 | 0 | 0 | ||||
| Including: shares held by foreign corporates | 8,706,351 | -8,706,351 | 0 | 0 | 0 | ||||
| I. Shares held subject to restricted sale | |||||||||
| 1. Shares held by the state government | 1,054,987,749 | 100 | 47,058,823 | 47,058,823 | 1,102,046,572 | 100 | |||
| 2.Shares held by state-owned corporates | 1,054,987,749 | 100 | 47,058,823 | 47,058,823 | 1,102,046,572 | 100 | |||
| 3. Shares held by other domestic capital | |||||||||
| Including: shares held by domestic non-state-owned corporates | |||||||||
| Shares held by domestic |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| natural persons | |||||||||
| 4. Shares held by foreign capital | 1,054,987,749 | 100 | 47,058,823 | 0 | 47,058,823 | 1,102,046,572 | 100 |
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 andChanges 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 shares on financial indexes such as EPS and net assets per share in the most recent year and the most recent period (if any)
√Applicable □Non-applicable
On February 23, 2021, the Company concluded the private offering of 47,058,823 A-shares to 14 specific investors. Total number of shares increased from1,054,987,749 to 1,102,046,572. This private offering diluted the EPS and ROE for 2021.
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 shares | Number of shares | Number of additional | Number of | Reason for restricted sale | Date of removal of |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| on restricted sale at the beginning of the year | removed from restricted sale in this year | shares on restricted sale in this year | shares on restricted sale at the end of the year | restricted sale | ||
| New China Asset Management Co., Ltd. | 0 | 11,764,705 | 11,764,705 | 0 | 6-month lock-up period of shares in private offering | 2021-8-23 |
| UBS AG | 0 | 5,764,705 | 5,764,705 | 0 | 6-month lock-up period of shares in private offering | 2021-8-23 |
| CITIC Securities Co., Ltd. (Self-run) | 0 | 5,764,705 | 5,764,705 | 0 | 6-month lock-up period of shares in private offering | 2021-8-23 |
| China Securities Co., Ltd. | 0 | 4,705,882 | 4,705,882 | 0 | 6-month lock-up period of shares in private offering | 2021-8-23 |
| HFT Investment Management Co., Ltd. | 0 | 3,529,411 | 3,529,411 | 0 | 6-month lock-up period of shares in private offering | 2021-8-23 |
| CITIC Securities Co., Ltd. (asset management) | 0 | 2,211,302 | 2,211,302 | 0 | 6-month lock-up period of shares in private offering | 2021-8-23 |
| New China Fund Management Co., Ltd. | 0 | 2,141,176 | 2,141,176 | 0 | 6-month lock-up period of shares in private offering | 2021-8-23 |
| China Galaxy Securities Co., Ltd. | 0 | 2,117,647 | 2,117,647 | 0 | 6-month lock-up period of shares in private offering | 2021-8-23 |
| Huaneng Guicheng Trust Co., Ltd. | 0 | 1,882,352 | 1,882,352 | 0 | 6-month lock-up period of shares in private offering | 2021-8-23 |
| Goldman Sachs & Co. LLC | 0 | 1,529,411 | 1,529,411 | 0 | 6-month lock-up period of shares in private offering | 2021-8-23 |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| MORGAN STANLEY & CO. INTERNATIONAL PLC. | 0 | 1,412,235 | 1,412,235 | 0 | 6-month lock-up period of shares in private offering | 2021-8-23 |
| Zhejiang Zhonghao Investment Co., Ltd. | 0 | 1,411,764 | 1,411,764 | 0 | 6-month lock-up period of shares in private offering | 2021-8-23 |
| Chengdu Fusen-Noble House Co., Ltd. | 0 | 1,411,764 | 1,411,764 | 0 | 6-month lock-up period of shares in private offering | 2021-8-23 |
| Beijing Renaissance Era Investment Management Co., Ltd. | 0 | 1,411,764 | 1,411,764 | 0 | 6-month lock-up period of shares in private offering | 2021-8-23 |
| Total | 0 | 47,058,823 | 47,058,823 | 0 | / | / |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
II. Issuance of Securities and Public Listing
(1) Issuance of securities as of the reporting period
□Applicable √Non-applicable
Unit： shares Currency： RMB
| Kinds of stocks and derivative securities | Date of issuance | Issue price (or interest rate upon issuance) | Shares issued | Date of public trading | Shares approved for public trading | Date of trade closure |
| Common shares | ||||||
| Private offering of common shares | 2021-2-2 | RMB 42.5 | 47,058,823 | 2021-2-24 | 47,058,823 | |
Notes to the issuance of securities as of the reporting period (if there are bonds applicable to differentinterest rates in the period, state the reasons separately):
□Applicable √Non-applicable
Subject to the approval ([2020]1982) granted by CSRC, the Company concluded the privateoffering of 47,058,823 A-shares at an offering price of RMB 42.50 on 23 February 2021, the gross sumof funds raised is RMB 1,999,999,977.50. With the issuance cost of RMB 21,582,130.76 deducted, thenet sum of funds raised is RMB 1,978,417,846.74. BDO CHINA SHU LUN PAN CERTIFIED PUBLICACCOUNTANTS LLP (Special General Partnership) released the “Capital Verification Report” (XinKuai Shi Bao [2021] ZF10047). The lock-up period of this private offering is 6 months.On 23 August2021, the restricted sale of shares was lifted and available for public trading.
(2) Changes in the total number of capital stock of the Company and changes in the structure ofshareholders and changes in the structure of assets and liabilities
√Applicable □Non-applicable
Subject to the approval granted by CSRC, the Company concluded the private offering of47,058,823 A-shares to 14 specific investors on February 23, 2021, with the net sum of funds raised ofRMB 1,978,417,846.74. After the private offering, the capital stock of the Company increased from1,054,987,749 shares to 1,102,046,572 shares, which means an increase in the capital stock and netassets of the Company.
(3)Existing employee shares
□Applicable √Non-applicable
-
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
III. Shareholders and actual controllers
(1) Total shareholders
| Total number (accounts) of common shareholders as of the end of the reporting period | 36,612 |
| Total number of ordinary shareholders (accounts) as of the end of the previous month before the disclosure date of the annual report | 26,103 |
| Total number (accounts) of preferred shareholders whose voting rights have been restored as of the end of the reporting period | NA |
| Total number (accounts) of preferred shareholders whose voting rights were restored at the end of the previous month prior to the disclosure of this annual report | NA |
(2) Shares held by the top ten shareholders and top ten tradable shareholders (or shareholders not subject to restricted sale) as of the end of the reportingperiod
Unit: Shares
| Shares held by the top ten shareholders | |||||||
| Name of Shareholder (Full Name) | Increase/Decrease during the reporting period | Number of shares held at the end of the period | Percentage (%) | Number of shares held subject to restricted sale | Condition of pledge, marking or freezing | Nature of shareholders | |
| Status of shares | Number of shares | ||||||
| MECCA INTERNATIONAL HOLDING （HK） LIMITED | 693,680,000 | 62.94 | 0 | No | Foreign corporate | ||
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| Hong Kong Securities Clearing Company Limited | 38,764,082 | 3.52 | Unknown | Unknown | Unknown | |||||||
| Shanghai Ruiyang Investment Management Co., Ld.-Ruiyang Emerging Growth Private Placement Investment Fund | 17,600,000 | 1.60 | Unknown | Unknown | Unknown | |||||||
| Wu Jianshu | 7,210,308 | 0.65 | 0 | No | Foreign person | |||||||
| Ningbo Zhuyue Investment Management Co., Ltd. | 5,407,630 | 0.49 | 0 | No | Domestic non-SOE corporate | |||||||
| Huaneng Guicheng Trust Co., Ltd. | 4,883,183 | 0.44 | Unknown | Unknown | Unknown | |||||||
| Bank of Communications Co., Ltd.-Southern Growth Pioneer Hybrid Securities Investment Fund | 4,722,095 | 0.43 | Unknown | Unknown | Unknown | |||||||
| Shanghai Pudong Development Bank Co., Ltd.- E Fund Yuxiang Return Bond Securities Investment Fund | 4,303,700 | 0.39 | Unknown | Unknown | Unknown | |||||||
| CITIC Securities-CITIC Bank-CITIC Securities Dividend Value One-year Commingled Collective Asset Management Plan | 4,298,009 | 0.39 | Unknown | Unknown | Unknown | |||||||
| Shanghai Panjing Investment Management Center (Limited Partnership)-Shengxin Phase 2 Private Placement Securities Investment Fund | 4,176,800 | 0.38 | Unknown | Unknown | Unknown | |||||||
| Shares held by the top ten shareholders not subject to restricted sale | ||||||||||||
| Name of Shareholder | Number of tradable shares held not subject to restricted sale | Class and number of shares | ||||||||||
| Class | Number of shares | |||||||||||
| MECCA INTERNATIONAL HOLDING （HK） LIMITED | 693,680,000 | RMB common share | 693,680,000 | |||||||||
| Hong Kong Securities Clearing Company Limited | 38,764,082 | RMB common share | 38,764,082 | |||||||||
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| Shanghai Ruiyang Investment Management Co., Ld.-Ruiyang Emerging Growth Private Placement Investment Fund | 17,600,000 | RMB common share | 17,600,000 |
| Wu Jianshu | 7,210,308 | RMB common share | 7,210,308 |
| Ningbo Zhuyue Investment Management Co., Ltd. | 5,407,630 | RMB common share | 5,407,630 |
| Huaneng Guicheng Trust Co., Ltd. | 4,883,183 | RMB common share | 4,883,183 |
| Bank of Communications Co., Ltd.-Southern Growth Pioneer Hybrid Securities Investment Fund | 4,722,095 | RMB common share | 4,722,095 |
| Shanghai Pudong Development Bank Co., Ltd.- E Fund Yuxiang Return Bond Securities Investment Fund | 4,303,700 | RMB common share | 4,303,700 |
| CITIC Securities-CITIC Bank-CITIC Securities Dividend Value One-year Commingled Collective Asset Management Plan | 4,298,009 | RMB common share | 4,298,009 |
| Shanghai Panjing Investment Management Center (Limited Partnership)-Shengxin Phase 2 Private Placement Securities Investment Fund | 4,176,800 | RMB common share | 4,176,800 |
| Description of the repurchase of special accounts among the top ten shareholders | NA | ||
| Notes to the voting rights entrusted by or to, and waived by the above shareholders | NA | ||
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| Notes to the associated relationship or concerted action of the above shareholders | Among these shareholders: 1. Mr. Wu Jianshu holds 100% of the shares in MECCA INTERNATIONAL HOLDING （HK） LIMITED. 2. Ningbo Zhuyue Investment Management Co., Ltd. is a wholly-owned sub-subsidiary of MECCA INTERNATIONAL HOLDING （HK） LIMITED, the controlling shareholder of the Company, and is a person acting in concert. In addition, the Company doesn’t know whether there is an associated relationship among the above shareholders or whether they are parties acting in concert. |
| Notes to the preferred shareholders whose voting rights have been restored and the number of shares held | NA |
Number of shares held by the top ten shareholders subject to restricted sale and the conditions of restricted sales
□Applicable √Non-applicable
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
(3) Strategic investors or general legal persons becoming the top ten shareholders due to theplacement of new shares
□Applicable √Non-applicable
IV. Controlling Shareholder and Actual Controller
(1) Information about controlling shareholders
1 Corporate
√Applicable □Non-applicable
| Name | MECCA INTERNATIONAL HOLDING （HK） LIMITED |
| Head or legal representative | Wu Jianshu |
| Date of Incorporation | July 21st, 2008 |
| Main business operations | Investment |
| Shareholding status of other domestic and overseas listed companies that hold or participate in shares during the reporting period | NA |
| Other notes | NA |
2 Natural person
□Applicable √Non-applicable
3 Special notes to no controlling shareholders in the Company
□Applicable √Non-applicable
4. Notes to Changes of Controlling Shareholders during the Reporting Period
□Applicable √Non-applicable
5 Block diagram of the equity rights and control relations between the Company and controllingshareholders
√Applicable □Non-applicable
(2) Actual controllers
1 Corporate
□Applicable √Non-applicable
2 Natural person
√Applicable □Non-applicable
| Name | Wu Jianshu |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| Nationality | Hong Kong |
| Whether the above person has acquired the right of residence in other countries or regions | Yes |
| Jobs and titles | Formerly as Chairman of Ningbo Tuopu Shock Absorbing System Co., Ltd., Chairman of Ningbo Tuopu Soundproof System Co., Ltd., Chairman of Ningbo Tuopu Coupling Co., Ltd., Chairman of Ningbo Tuopu Automobile Special Rubber Co., Ltd., Chairman of Ningbo Tuopu Brake System Co., Ltd. Currently in the capacity of Chairman of MECCA INTERNATIONAL HOLDING (HK) LIMITED, Chairman of Ningbo Tuopu Group Co., Ltd. |
| Domestic or overseas listed companies controlled by the above person in the past 10 years | NA |
3 Special notes to no controlling shareholders in the Company
□Applicable √Non-applicable
4 Index and date of changes in controlling shareholders during the reporting period
□Applicable √Non-applicable
5 Block diagram of the equity rights and control relations between the Company and controllingshareholders
□Applicable √Non-applicable
6 Actual controller who controls the company through trust or other asset management methods
□Applicable √Non-applicable
(3) Other information about the controlling shareholder and actual controller
□Applicable √Non-applicable
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
V. The controlling shareholder or the first majority shareholder of the Company and its personsacting in concert, with the accumulative number of pledged shares accounting for more than 80%of the shares held by them
□Applicable √Non-applicable
Ⅵ.Other corporate shareholders holding more than 10% of the shares
□Applicable √Non-applicable
Ⅶ.Notes to restricted reduction of shares
□Applicable √Non-applicable
Ⅷ. Status of share repurchases made during the reporting period
□Applicable √Non-applicable
Section 8 Information about Preference Shares
□Applicable √Non-applicable
Section 9 Information of Corporate Bonds
I. Corporate bonds, debentures and non-financial corporate debt financing instruments
□Applicable √Non-applicable
II. Condition of convertible corporate bonds
□Applicable √Non-applicable
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
Section 10 Financial ReportI. Audit report
√Applicable □Non-applicable
Audit Report
Xin Kuai Shi Bao Zi [2022] No. ZF10292
To the shareholders of Ningbo Tuopu Group Co., Ltd.
I. OpinionWe have audited the financial statements of Ningbo Tuopu Group Co., Ltd. (hereinafter referred to as“Tuopu Group”), including the parent company's and the consolidated balance sheet dated December 31,2021, the parent company's and the consolidated income statement, the parent company's and theconsolidated cash flow statement and the parent company's and the consolidated statement of changes inowners' equity for the year 2021 ended, as well as the notes to relevant financial statements.In our opinion, the attached financial statements are prepared, in all material respects, in accordance with“Accounting Standards for Business Enterprises” , which fairly reflected the consolidated and the parentcompany’s financial position of Ningbo Tuopu Group Co., Ltd. as at December 31, 2021 and theconsolidated and the parent company’s operating results and cash flows for the year 2021 ended.
II. Basis for Our OpinionWe conducted our audit in accordance with the Auditing Standards for Certified Public Accountants inChina. Our responsibilities under those standards are further described in the CPA's Responsibilities forthe Audit of the Financial Statements section of our report. According to the “Code of Ethics for ChineseCertified Public Accountants”, we are independent of Tuopu and have fulfilled our other ethicalresponsibilities in accordance with the Code. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our audit opinions.
III. Key Audit MattersKey audit matters are those matters that, in our professional judgment, were of most significance in ouraudit of the financial statements of the current period. These matters were addressed in the context of ouraudit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide aseparate opinion on these matters.
The key audit matters identified during the audit are summarized as follows:
| Key Audit Matters | How the matter was addressed in the audit |
| (1) Recognition of revenue | |
| More details about the accounting policies for revenue recognition and the analysis of revenue are available in the accounting policies as referred to in Note (38) of “V. Significant Accounting Policies and Accounting Estimates" and Note (61) of “VII. Notes to Items of the Consolidated Financial Statements”. In 2021, Tuopu Group’s income from main business operations is RMB 11,017,000,500. Because revenue is one of the key performance indexes of Tuopu Group, | Our main audit procedures for the above key audit matters related to recognition of revenue are as described below: 1. Understand the internal control system in relation to revenue recognition and the design and implementation of the financial accounting system, and test the effectiveness of its operation; 2. We understand and evaluate whether the revenue recognition policy of the Company is appropriate or not by reviewing sales contracts and interviews with management; 3. Perform an analytical review of revenue and gross profit based on product types and customer types, and determine whether there are abnormal fluctuations in the amount of revenue during the current period; |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| there is an inherent risk of management manipulating the time point of revenue recognition in order to achieve specific goals or expectations. In this regard, we regard Tuopu Group's revenue recognition as a key audit matter. | 4. Classify sales regions, select samples from the income transactions as recorded in respect of this year, check invoices, sales contracts, delivery orders, customs declaration forms, B/Ls and other supporting documents, and evaluate whether the relevant revenue recognition complies with the revenue recognition accounting policies of the Company; 5. Conduct cut-off test on the operating income recognized before and after the balance sheet date in order to evaluate whether the operating income is recognized in the appropriate period; 6. Make external confirmation of the account receivable balance and sales of major customers, and confirm whether the account receivable balance at the end of the period and the current income amount are true and accurate; 7. Check whether the information related to operating income has been properly presented in the financial statements. |
| (2) Impairment of goodwill | |
| The details and analysis of the accounting policies for impairment of goodwill are available in the accounting policies as referred to in Note (30) of “V. Significant Accounting Policies and Accounting Estimates" and Note (28) of “VII. Notes to Items of the Consolidated Financial Statements”. As of December 31, 2021, the original book value of Tuopu Group's goodwill is RMB 286,784,900, and the amount of provision for impairment is RMB 78,108,300. The management conducts an impairment test on the goodwill formed by the business combination at the end of each year. The result of the impairment test of goodwill is fixed by the estimation | Our main audit procedures in respect of the above key audit matters related to the impairment of goodwill are as follows: 1. We evaluate and test the effectiveness of the design and implementation of internal controls related to the goodwill impairment test, including the adoption of key assumptions and the review and approval of the amount of impairment provision; 2. Referring to industry practices, assess the appropriateness of the valuation method used by the management for cash flow forecasts; 3. Comparing key input values such as revenue growth rate, perpetual growth rate and cost increase with past performance, perform prudent evaluation on the key assumptions and judgments used in preparing discounted cash flow forecasts; 4. Discuss with the management and others about the reasonableness of the methods used in the process of goodwill impairment test, the assumptions of key |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| report of relevant asset group recoverable value as prepared by the management. The recoverable amount of the relevant asset group is calculated and fixed by the present value of the estimated future cash flow. The discounted cash flow forecasts are prepared by using major judgments and estimates, especially determining the growth rate during the forecast period, perpetual growth rate, gross profit margin, discount rate. Since the process of goodwill impairment test is very complex, which relates to significant management estimates and judgments, we regard the impairment of goodwill as a key audit matter. | assessments, the selection of parameters, the forecast of future income and the discount rate of cash flow; 5. Conduct a retrospective review by comparing the forecast of the previous year with the performance of this year to assess the reliability and historical accuracy of the management's forecasting process; 6. Evaluate the competence, professionalism and objectivity of the specialists appointed by the management, and reach a consensus on the content of their works; 7. Check whether the information related to the impairment of goodwill has been properly presented and disclosed in the financial statements. |
IV. Other InformationThe management of Tuopu Group(hereinafter referred to as the Management) is responsible for theother information. The other information includes the information covered in Tuopu’s annual report forthe year 2021 ended, other than the financial statements and our audit report.Our opinion on the financial statements does not cover the other information and we do not and willnot express any form of assurance conclusion thereon.In combination with our audit of the financial statements, our responsibility is to read the otherinformation and, in doing so, consider whether the other information is materially inconsistent with thefinancial statements or our knowledge obtained in the audit, or otherwise appears to be materiallymisstated.
If, based on the work we have performed, we conclude that there is a material misstatement ofthis other information, we are required to report that fact. We have nothing to report in this regard.
V. Responsibilities of Management and Those Charged with Governance for the
Financial StatementsThe Management is responsible for preparing the financial statements in accordance with therequirements of Accounting Standards for Business Enterprises to achieve a fair presentation, and fordesigning, implementing and maintaining necessary internal control to ensure that the financialstatements are free from material misstatements, whether due to frauds or errors.In preparing the financial statements, the Management is responsible for assessing Tuopu’s ability tocontinue operating, disclosing matters related to continuous operation (if applicable) and using thehypothesis of continuous operation unless there is a plan to liquidate, terminate operations or no otherrealistic options.The management is responsible for supervising the financial reporting process of Tuopu.
VI. CPA's Responsibilities for the Audit of the Financial StatementsOur objectives are to obtain reasonable assurance about whether the financial statements as a wholeare free from material misstatement, whether due to fraud or error, and to issue an audit report thatincludes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
audit conducted in accordance with the audit standards will always detect a material misstatement whenit exists. Misstatements can arise from fraud or error and are considered material if, individually or in theaggregate, they could reasonably be expected to influence the economic decisions of users made on thebasis of these financial statements.
As part of an audit in accordance with the audit standards, we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements, whetherdue to fraud or error, design and perform audit procedures responsive to those risks, and obtain auditevidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting amaterial misstatement resulting from fraud is higher than one resulting from error, as fraud may involvecollusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to designappropriate audit procedures, but not for the purpose of expressing an opinion on the effectiveness of theCompany's internal control.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by the Management.
(4) Conclude on the appropriateness of using the going concern assumption by theManagement. At the same time, draw a conclusion, based on the audit evidence obtained, on whetherthere is significant uncertainty in matters or situations that may cause major doubts about Tuopu's abilityin continuous operation. If we conclude that a material uncertainty exists, we are required to drawattention in our audit report to the related disclosures in the financial statements or, if such disclosuresare inadequate, to modify our opinion. Our conclusions are based on the information available up to thedate of our audit report. However, future events or conditions may result in Tuopu 's inability to continueoperating.
(5) Evaluate the overall presentation (including the disclosures), structure and content of thefinancial statements, and whether the financial statements fairly reflect the relevant transactions andevents.
(6) Obtain sufficient and appropriate audit evidence regarding the financial information of theentities or business activities within Tuopu to express an opinion on the financial statements. We areresponsible for guiding, supervising and implementing the group audit, and remain solely responsible forour audit opinion.
We have communicated with those charged with governance on such matters as the scope of auditas planned, the schedule and material audit findings, including the defects in the internal control that areworth paying attention to found in this audit.
We have also provided those charged with governance with a statement on observing theprofessional ethics related to independence, and communicated with those charged with governance onall the relationships and other matters that might be reasonably deemed to affect our independence, andrelevant preventative measures (if applicable).
From the matters communicated with those charged with governance, we determine those mattersthat were of most significance in the audit of the financial statements of the current period and aretherefore the key audit matters. We describe these matters in our audit report unless law or regulationprecludes public disclosure about the matter or when, in extremely rare circumstances, we determine thata matter should not be communicated in our report because the adverse consequences of doing so wouldreasonably be expected to outweigh the public interest benefits of such communication.
BDO China Shu Lun Pan Certified Public Accountants LLP Chinese CPA: Yu Weiying(Special General Partnership) (Project partner)
Chinese CPA: Tang Wei
Shanghai, China Date: 13 April 2022
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
II. Financial Statements
Consolidated Balance SheetAs of 31 December 2021Prepared by: Ningbo Tuopu Group Co., Ltd.
Unit:Yuan Currency:RMB
| Item | Note | 2December 31, 2021 | December 31, 2020 |
| Current assets: | |||
| Cash and Bank Balances | Ⅶ、1 | 1,271,450,147.37 | 787,123,646.45 |
| Deposit Reservation for Balance | |||
| Loans to Banks and Other Financial Institutions | |||
| Trading Financial Assets | Ⅶ、2 | 321,507,846.86 | 176,111.00 |
| Derivative Financial Assets | |||
| Notes receivable | Ⅶ、4 | 364,139,072.40 | 296,283,951.73 |
| Accounts receivable | Ⅶ、5 | 3,168,220,804.95 | 1,783,267,007.65 |
| Receivables Financing | Ⅶ、6 | 972,493,168.64 | 742,203,122.21 |
| Prepayments | Ⅶ、7 | 84,489,104.36 | 42,883,818.40 |
| Premium Receivable | |||
| Reinsurance Accounts Receivable | |||
| Reinsurance Contract Reserves Receivable | |||
| Other Receivables | Ⅶ、8 | 44,679,367.27 | 31,087,166.38 |
| Including: interest receivable | |||
| Dividends Receivable | 3,719,979.84 | ||
| Buying Back the Sale of Financial Assets | |||
| Inventory | Ⅶ、9 | 2,296,983,843.07 | 1,502,751,836.88 |
| Contract Assets | |||
| Holding for-sale assets | |||
| Non-current Assets Due within 1 Year | |||
| Other Current Assets | Ⅶ、13 | 266,187,079.91 | 173,824,691.82 |
| Subtotal of Current Assets | 8,790,150,434.83 | 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 | Ⅶ、17 | 129,477,775.53 | 150,295,983.58 |
| Investment in Other Equity Instruments | |||
| Other Non-current Financial Assets | |||
| Investment Property | Ⅶ、20 | 29,929,216.74 | 31,603,418.12 |
| Fixed Assets | Ⅶ、21 | 5,831,567,302.57 | 4,248,257,966.73 |
| Projects under Construction | Ⅶ、22 | 1,990,647,471.76 | 943,993,396.96 |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| Productive Biological Assets | |||
| Oil and gas assets | |||
| Right-of-use Assets | 58,788,393.16 | ||
| Intangible Assets | Ⅶ、26 | 855,105,073.23 | 678,561,105.86 |
| Development Expenditure | |||
| Goodwill | Ⅶ、28 | 208,676,584.61 | 253,310,074.24 |
| Long-term unamortized expenses | Ⅶ、29 | 95,018,634.21 | 57,679,259.94 |
| Deferred Income Tax Assets | Ⅶ、30 | 135,100,879.84 | 94,968,559.88 |
| Other Non-current Assets | Ⅶ、31 | 558,231,000.78 | 296,957,402.06 |
| Total Non-current Assets | 9,892,542,332.43 | 6,755,627,167.37 | |
| Total Assets | 18,682,692,767.26 | 12,115,228,519.89 | |
| Current Liabilities: | |||
| Short-term loan | Ⅶ、32 | 1,214,591,106.66 | 400,378,888.89 |
| Borrowings from the Central Bank | |||
| Borrowings from Banks and Other Financial Institutions | |||
| Transactional financial liabilities | |||
| Derivative Financial Liabilities | |||
| Notes Payable | Ⅶ、35 | 2,333,423,633.37 | 1,471,327,551.91 |
| Accounts Payable | Ⅶ、36 | 3,225,754,064.50 | 1,898,255,116.17 |
| Received Prepayments | Ⅶ、37 | ||
| Contract liabilities | Ⅶ、38 | 22,575,563.28 | 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 | Ⅶ、39 | 193,766,884.51 | 138,292,361.67 |
| Tax Payable | Ⅶ、40 | 148,102,445.81 | 82,865,303.29 |
| Other Payables | Ⅶ、41 | 15,363,015.51 | 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 | Ⅶ、43 | 19,018,076.84 | |
| Other Current Liabilities | Ⅶ、44 | 193,908,274.06 | 1,507,896.52 |
| Subtotal of Current Liabilities | 7,366,503,064.54 | 4,031,034,884.03 | |
| Non-current Liabilities: | |||
| Insurance Contract Reserves | |||
| Long-term loan | Ⅶ、45 | 310,000,000.00 | |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| Bonds Payable | |||
| Including: Preferred Stocks | |||
| Perpetual Bonds | |||
| Lease Liabilities | 40,685,114.26 | ||
| Long-term Payables | |||
| Long-term payroll payable | |||
| Expected Liabilities | |||
| Deferred Income | Ⅶ、51 | 269,329,507.52 | 214,204,302.56 |
| Deferred Income Tax Liabilities | Ⅶ、30 | 75,749,671.63 | 51,907,987.42 |
| Other Non-current Liabilities | |||
| Total Non-current Liabilities | 695,764,293.41 | 266,112,289.98 | |
| Total Liabilities | 8,062,267,357.95 | 4,297,147,174.01 | |
| Owners’ Equity (or Shareholders' Equity): | |||
| Paid-in capital (or share Capital) | Ⅶ、53 | 1,102,046,572.00 | 1,054,987,749.00 |
| Other Equity Instruments | |||
| Including: Preferred Stocks | |||
| Perpetual Bonds | |||
| Capital Reserves | Ⅶ、55 | 5,340,798,886.81 | 3,409,439,863.07 |
| Less: Treasury Share | |||
| Other Comprehensive Incomes | Ⅶ、57 | -24,978,896.47 | -20,631,668.74 |
| Special Reserves | |||
| Surplus Reserves | Ⅶ、59 | 543,809,467.58 | 474,769,630.86 |
| General Risk Reserves | |||
| Undistributed Profits | Ⅶ、60 | 3,627,091,164.15 | 2,868,429,319.48 |
| Total Shareholders' Equity Attributable to the Parent Company | 10,588,767,194.07 | 7,786,994,893.67 | |
| Minority Shareholders' Equity | 31,658,215.24 | 31,086,452.21 | |
| Total Shareholders' Equity | 10,620,425,409.31 | 7,818,081,345.88 | |
| Total Liabilities and Shareholders' Equity | 18,682,692,767.26 | 12,115,228,519.89 | |
Legal Representative: Wu Jianshu Accounting Work Officer: Hong Tieyang Accounting InstitutionOfficer: Hong Tieyang
Balance Sheet of the Parent Company
As of 31 December 2021Prepared by: Ningbo Tuopu Group Co., Ltd.
Unit: Yuan Currency:RMB
| Item | Note | December 31, 2021 | December 31, 2020 |
| Current Assets: | |||
| Cash and Bank Balances | 495,802,119.38 | 191,701,837.06 | |
| Trading Financial Assets | 320,000,000.00 | ||
| Derivative Financial Assets | |||
| Notes receivable | |||
| Accounts receivable | XVII、1 | 1,778,649,685.56 | 1,840,937,312.96 |
| Receivables Financing | 248,682,850.00 | ||
| Prepayments | 46,040,551.32 | 20,784,751.77 | |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| Other Receivables | XVII、2 | 136,297,080.46 | 76,146,034.58 |
| Including: interest receivable | |||
| Dividends Receivable | 3,719,979.84 | ||
| Inventory | 827,202,417.23 | 658,887,785.40 | |
| Contract Assets | |||
| Holding for-sale assets | |||
| Non-current Assets Due within 1 Year | |||
| Other Current Assets | |||
| Subtotal of Current Assets | 3,852,674,703.95 | 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 | XVII、3 | 6,970,931,120.31 | 4,071,774,944.06 |
| Investment in Other Equity Instruments | |||
| Other Non-current Financial Assets | |||
| Investment Property | 29,929,216.74 | 31,603,418.12 | |
| Fixed Assets | 2,351,941,233.80 | 2,125,534,955.22 | |
| Projects under Construction | 236,446,945.07 | 324,037,109.77 | |
| Productive Biological Assets | |||
| Oil and gas assets | |||
| Right-of-use Assets | |||
| Intangible Assets | 253,862,756.23 | 261,540,370.50 | |
| Development Expenditure | |||
| Goodwill | |||
| Long-term unamortized expenses | 18,599,173.24 | 18,012,648.52 | |
| Deferred Income Tax Assets | 38,776,770.35 | 33,565,021.69 | |
| Other Non-current Assets | 84,846,194.82 | 53,576,040.76 | |
| Total Non-current Assets | 9,985,333,410.56 | 6,919,644,508.64 | |
| Total Assets | 13,838,008,114.51 | 9,708,102,230.41 | |
| Current Liabilities: | |||
| Short-term loan | 800,806,666.66 | 400,378,888.89 | |
| Transactional financial liabilities | |||
| Derivative Financial Liabilities | |||
| Notes Payable | 531,091,664.57 | 165,480,933.26 | |
| Accounts Payable | 1,417,930,187.52 | 1,070,753,965.63 | |
| Received Prepayments | |||
| Contract liabilities | 988,691.79 | 1,448,964.90 | |
| Payroll payable | 73,996,046.73 | 73,653,497.54 | |
| Tax Payable | 69,719,441.49 | 54,138,713.22 | |
| Other Payables | 5,080,317.49 | 5,126,892.30 | |
| Including: interest payable | |||
| Dividends Payable | |||
| Holding for-sale liabilities | |||
| Non-current Liabilities Due within 1 Year | |||
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| Other Current Liabilities | 192,538,221.24 | 188,365.44 | |
| Subtotal of Current Liabilities | 3,092,151,237.49 | 1,771,170,221.18 | |
| Non-current Liabilities: | |||
| Long-term loan | 300,000,000.00 | ||
| Bonds Payable | |||
| Including: Preferred Stocks | |||
| Perpetual Bonds | |||
| Lease Liabilities | |||
| Long-term Payables | |||
| Long-term payroll payable | |||
| Expected Liabilities | |||
| Deferred Income | 74,925,064.60 | 70,962,922.25 | |
| Deferred Income Tax Liabilities | 54,328,617.08 | 28,630,095.25 | |
| Other Non-current Liabilities | |||
| Subtotal of Non-current Liabilities | 429,253,681.68 | 99,593,017.50 | |
| Total Liabilities | 3,521,404,919.17 | 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 | 543,809,467.58 | 474,769,630.86 | |
| Undistributed Profits | 3,329,948,268.95 | 2,898,141,748.80 | |
| Total Owners’ Equity (or Shareholders' Equity) | 10,316,603,195.34 | 7,837,338,991.73 | |
| Total Liabilities and Owners’ Equity (or Shareholders' Equity) | 13,838,008,114.51 | 9,708,102,230.41 | |
Legal Representative: Wu Jianshu Accounting Work Officer: Hong Tieyang Accounting InstitutionOfficer: Hong Tieyang
Consolidated Income StatementFor the Period from January 2021 to December 2021
Unit: Yuan Currency: RMB
| Item | Note | 2021 | 2020 |
| I. Total Operating Revenue | 11,462,693,679.86 | 6,511,094,914.05 | |
| Including: Operating Revenue | VII、61 | 11,462,693,679.86 | 6,511,094,914.05 |
| Interest Income | |||
| Earned Premiums | |||
| Service Charge and Commission Income | |||
| II. Total Operating Cost | 10,244,907,294.48 | 5,848,025,496.26 | |
| Including: Operating Cost | VII、61 | 9,184,077,297.76 | 5,034,014,528.39 |
| Interest Expenditures |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| 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 | VII、62 | 70,224,214.79 | 58,072,530.91 |
| Sales Expenses | VII、63 | 157,043,325.10 | 123,896,252.24 |
| Administration expenses | VII、64 | 295,450,552.98 | 233,071,874.47 |
| Research and development expense | VII、65 | 502,493,456.38 | 354,851,747.66 |
| Financial Expenses | VII、66 | 35,618,447.47 | 44,118,562.59 |
| Including: interest expenses | 22,173,845.92 | 19,744,058.04 | |
| Interest Income | 23,748,186.60 | 17,108,552.05 | |
| Add: Other income | VII、67 | 35,952,112.57 | 33,135,066.17 |
| Investment Income (Mark"-" for Loss) | VII、68 | 35,465,407.66 | 43,244,216.77 |
| Including: Investment Income from Affiliates and Joint Ventures | 17,901,771.79 | 25,080,033.26 | |
| 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 "-") | VII、70 | 252,506.50 | |
| Credit Impairment Losses (Mark"-" for Loss) | VII、71 | -75,923,630.95 | -19,654,766.99 |
| Asset Impairment Losses (Mark"-" for Loss) | VII、72 | -69,095,096.13 | -22,439,872.62 |
| Asset Disposal Income (Mark"-" for Loss) | VII、73 | 195,282.02 | 8,747,482.63 |
| III. Operating Profit (Mark"-" for Loss) | 1,144,632,967.05 | 706,101,543.75 | |
| Add: Non-operating Revenues | VII、74 | 8,055,283.76 | 5,654,672.25 |
| Less: Non-operating Expenses | VII、75 | 6,415,200.41 | 1,670,025.65 |
| IV. Total Profit (Mark"-" for Total Loss) | 1,146,273,050.40 | 710,086,190.35 | |
| Less: Income Tax Expense | VII、76 | 128,441,109.88 | 79,951,976.75 |
| V. Net Profit (Mark"-" for Net Loss) | 1,017,831,940.52 | 630,134,213.60 | |
| (1) Classified by operation continuity | |||
| 1. Net Profit as a Going Concern (Mark"-" for Net Loss) | 1,017,831,940.52 | 630,134,213.60 | |
| 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 | 1,017,253,691.77 | 628,200,888.31 | |
| 2. Minority Shareholders' Profit and Loss | 578,248.75 | 1,933,325.29 | |
| VI. Net Amount of Other Comprehensive Incomes after Tax | -4,353,713.45 | -16,254,480.41 | |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| (1) Net Amount of Other Comprehensive Incomes after Tax Attributable to the Parent Company's Owner | -4,347,227.73 | -16,250,685.21 | |
| 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 | -4,347,227.73 | -16,250,685.21 | |
| (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 | -4,347,227.73 | -16,250,685.21 | |
| (7) Others | |||
| (2) Net Amount of Other Comprehensive Incomes After Tax Attributable to Minority Shareholders | -6,485.72 | -3,795.20 | |
| VII. Total Comprehensive Income | 1,013,478,227.07 | 613,879,733.19 | |
| (1) Total Comprehensive Income Attributable to the Parent Company's Owner | 1,012,906,464.04 | 611,950,203.10 | |
| (2) Total Comprehensive Income Attributable to Minority Shareholders | 571,763.03 | 1,929,530.09 | |
| VIII. Earnings per Share: | |||
| (1) Basic Earnings per Share | 0.93 | 0.60 | |
| (2) Diluted Earnings per Share | 0.93 | 0.60 | |
If there is a business combination under the same control in the current period, the net profit earned bythe combined party before the combination is: RMB 0, and the net profit earned by the combined partyin the previous period is: RMB 0.Legal Representative: Wu Jianshu Accounting Work Officer: Hong Tieyang Accounting InstitutionOfficer: Hong Tieyang
Income Statement of the Parent CompanyFor the Period from January 2021 to December 2021
Unit:Yuan Currency:RMB
| Item | Note | 2021 | 2020 |
| I. Operating Revenue | XVII、4 | 5,953,933,512.30 | 3,812,588,627.87 |
| Less: Operating Cost | XVII、4 | 4,689,682,162.26 | 2,834,521,118.72 |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| Taxes and Surcharges | 35,012,834.25 | 34,558,652.15 | |
| Sales Expenses | 8,181,542.00 | 3,458,522.18 | |
| Administration expenses | 138,293,024.79 | 116,526,814.41 | |
| Research and development expense | 334,185,990.08 | 291,842,003.68 | |
| Financial Expenses | 1,617,645.39 | 14,801,082.01 | |
| Including: interest expenses | 16,038,069.45 | 19,206,506.13 | |
| Interest Income | 17,786,838.32 | 4,849,517.72 | |
| Add: Other income | 12,194,311.65 | 14,345,810.36 | |
| Investment Income (Mark"-" for Loss) | XVII、5 | 35,465,407.66 | 180,416,534.81 |
| Including: Investment Income from Affiliates and Joint Ventures | 17,901,771.79 | 25,080,033.26 | |
| 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 "-") | -24,390,573.22 | -38,718,677.92 | |
| Asset Impairment Losses (loss in "-") | -8,494,568.12 | -5,058,272.24 | |
| Asset Disposal Income (loss in "-") | 941,236.12 | -601,831.86 | |
| II. Operating Profit (loss in "-") | 762,676,127.62 | 667,263,997.87 | |
| Add: Non-operating Revenues | 1,576,264.30 | 1,864,571.67 | |
| Less: Non-operating Expenses | 2,296,967.69 | 448,631.07 | |
| III. Total Profit (total loss in “-“) | 761,955,424.23 | 668,679,938.47 | |
| Less: Income Tax Expense | 71,557,056.98 | 47,789,719.00 | |
| IV. Net Profit (Mark for Net Loss) | 690,398,367.25 | 620,890,219.47 | |
| (I) Net Profit as a Going Concern (net loss in “-“) | 690,398,367.25 | 620,890,219.47 | |
| (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 |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| 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 | 690,398,367.25 | 620,890,219.47 | |
| VII. Earnings per Share: | |||
| (I) Basic Earnings per Share | 0.63 | 0.59 | |
| (II) Diluted Earnings per Share | 0.63 | 0.59 | |
Legal Representative: Wu Jianshu Accounting Work Officer: Hong Tieyang Accounting InstitutionOfficer: Hong Tieyang
Consolidated Cash Flow StatementFor the Period from January 2021 to December 2021
Unit：Yuan Currency：RMB
| Item | Note | 2021 | 2020 |
| I. Cash Flow Generated by Operational Activities: | |||
| Cash from Sales of Merchandise and Provision of Services | 12,258,008,436.31 | 6,530,642,868.71 | |
| 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 | 308,679,642.97 | 181,015,889.86 | |
| Other Received Cashes Related to Operational Activities | VII、78 | 132,210,754.56 | 120,356,568.18 |
| Subtotal of cash inflow from operational activities | 12,698,898,833.84 | 6,832,015,326.75 | |
| Cash Paid for Merchandise and Services | 9,413,188,151.08 | 4,171,704,603.08 | |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| 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 | 1,292,836,037.31 | 863,443,268.09 | |
| Cash Paid for Taxes and Surcharges | 366,068,479.39 | 339,305,713.24 | |
| Other Paid Cashes Related to Operational Activities | VII、78 | 439,986,972.71 | 333,876,162.33 |
| Subtotal of cash outflow from operational activities | 11,512,079,640.49 | 5,708,329,746.74 | |
| Net cash flow generated by operating activities | 1,186,819,193.35 | 1,123,685,580.01 | |
| II. Cash Flow from Investment Activities: | |||
| Cash Arising from Disposal of Investments | 1,467,563,635.87 | 1,678,164,183.51 | |
| Cash Arising from Investment Incomes | 35,000,000.00 | ||
| Net Cash Arising from Disposal of Fixed Assets, Intangible Assets and Other Long-term Assets | 51,659,857.46 | 20,542,230.33 | |
| Net Cash Arising from Disposal of Subsidiaries and Other Business Units | |||
| Other Received Cashes Related to Investment Activities | |||
| Subtotal of cash inflow from investment activities | 1,554,223,493.33 | 1,698,706,413.84 | |
| Cash Paid for Purchase and Construction of Fixed Assets, Intangible Assets and Other Long-term Assets | 3,520,648,226.25 | 1,405,987,218.49 | |
| Cash Paid for Investments | 1,770,000,000.00 | 880,000,000.00 | |
| 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 | 5,290,648,226.25 | 2,285,987,218.49 | |
| Net amount of cash flow generated by investment activities | -3,736,424,732.92 | -587,280,804.65 | |
| 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 | |||
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| Shareholders | |||
| Cash Arising from Borrowings | 2,179,755,470.00 | 576,775,000.00 | |
| Other Received Cashes Related to Financing Activities | VII、78 | 1,000,000.00 | |
| Subtotal of cash inflow from financing activities | 4,159,173,316.74 | 576,775,000.00 | |
| Cash Paid for Debts Repayment | 1,056,449,918.89 | 921,675,000.00 | |
| Cash Paid for Distribution of Dividends and Profits or Payment of Interests | 207,000,683.79 | 220,060,874.38 | |
| Including: Dividends and Profits Paid to Minority Shareholders by Subsidiaries | |||
| Other Paid Cashes Related to Financing Activities | VII、78 | 72,162,183.51 | |
| Subtotal of cash outflow from financing activities | 1,335,612,786.19 | 1,141,735,874.38 | |
| Net cash flow generated by financing activities | 2,823,560,530.55 | -564,960,874.38 | |
| IV. Impact of Fluctuation in Exchange Rate on Cash and Cash Equivalents | -13,149,022.08 | -11,759,547.02 | |
| V. Net Increase in Cash and Cash Equivalents | 260,805,968.90 | -40,315,646.04 | |
| 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 | 935,672,390.98 | 674,866,422.08 |
Legal Representative: Wu Jianshu Accounting Work Officer: Hong Tieyang Accounting InstitutionOfficer: Hong Tieyang
Cash Flow Statement of the Parent CompanyFor the Period from January 2021 to December 2021
Unit:Yuan Currency:RMB
| Item | Note | 2021 | 2020 |
| I. Cash Flow Generated by Operational Activities: | |||
| Cash from Sales of Merchandise and Provision of Services | 5,102,705,556.30 | 2,328,443,759.77 | |
| Tax Refund | |||
| Other Received Cashes Related to Operational Activities | 36,545,686.42 | 52,156,057.09 | |
| Subtotal of cash inflow from operational activities | 5,139,251,242.72 | 2,380,599,816.86 | |
| Cash Paid for Merchandise and Services | 2,672,538,944.20 | 1,086,508,531.20 | |
| Cash Paid to and for Employees | 541,182,194.28 | 477,432,560.14 | |
| Cash Paid for Taxes and Surcharges | 225,107,365.46 | 244,443,630.66 | |
| Other Paid Cashes Related to Operational Activities | 197,961,036.02 | 198,896,378.47 | |
| Subtotal of cash outflow from operational activities | 3,636,789,539.96 | 2,007,281,100.47 | |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| Net cash flow generated by operating activities | 1,502,461,702.76 | 373,318,716.39 | |
| II. Cash Flow from Investment Activities: | |||
| Cash Arising from Disposal of Investments | 1,467,563,635.87 | 1,691,336,501.55 | |
| Cash Arising from Investment Incomes | 35,000,000.00 | 150,000,000.00 | |
| et Cash Arising from Disposal of Fixed Assets, Intangible Assets and Other Long-term Assets | 24,383,813.88 | 128,809,847.55 | |
| Net Cash Arising from Disposal of Subsidiaries and Other Business Units | |||
| Other Received Cashes Related to Investment Activities | 311,900,000.00 | 16,003,000.00 | |
| Subtotal of cash inflow from investment activities | 1,838,847,449.75 | 1,986,149,349.10 | |
| Cash Paid for Purchase and Construction of Fixed Assets, Intangible Assets and Other Long-term Assets | 394,695,648.75 | 418,264,872.95 | |
| Cash Paid for Investments | 4,689,974,384.30 | 1,515,591,204.56 | |
| Net Cash Paid for Acquisition of Subsidiaries and Other Business Units | |||
| Other Paid Cashes Related to Investment Activities | 369,704,073.13 | 50,050,000.00 | |
| Subtotal of Cash Outflow from Investment Activities | 5,454,374,106.18 | 1,983,906,077.51 | |
| Net amount of cash flow generated by investment activities | -3,615,526,656.43 | 2,243,271.59 | |
| III. Cash Flow from Financing Activities: | |||
| Cash Arising from Absorbing Investments | 1,978,417,846.74 | ||
| Cash Arising from Borrowings | 1,250,000,000.00 | 400,000,000.00 | |
| Other Received Cashes Related to Financing Activities | 1,000,000.00 | ||
| Subtotal of cash inflow from financing activities | 3,229,417,846.74 | 400,000,000.00 | |
| Cash Paid for Debts Repayment | 550,378,888.89 | 744,900,000.00 | |
| Cash Paid for Distribution of Dividends and Profits or Payment of Interest | 204,783,413.17 | 220,031,735.47 | |
| Other Paid Cashes Related to Financing Activities | 57,090,308.69 | ||
| Subtotal of cash outflow from financing activities | 812,252,610.75 | 964,931,735.47 | |
| Net cash flow generated by financing activities | 2,417,165,235.99 | -564,931,735.47 | |
| IV. Impact of Fluctuation in Exchange Rate on Cash and Cash Equivalents | |||
| V. Net Increase in Cash and Cash Equivalents | 304,100,282.32 | -189,369,747.49 | |
| Add: Cash and Cash Equivalents at the | 191,701,837.06 | 381,071,584.55 | |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| Commencement of the Period | |||
| VI. Cash and Cash Equivalents at the End of the Period | 495,802,119.38 | 191,701,837.06 |
Legal Representative: Wu Jianshu Accounting Work Officer: Hong Tieyang Accounting InstitutionOfficer: Hong Tieyang
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
Consolidated Statement of Changes in Owners' EquityFor the Period from January 2021 to December 2021
Unit:Yuan Currency:RMB
| Item | 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 | 47,058,823.00 | 1,931,359,023.74 | -4,347,227.73 | 69,039,836.72 | 758,661,844.67 | 2,801,772,300.40 | 571,763.03 | 2,802,344,063.43 | |||||||
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| in This Period (Decreases in "-") | |||||||||||||||
| (I) Total Comprehensive Income | -4,347,227.73 | 1,017,253,691.77 | 1,012,906,464.04 | 571,763.03 | 1,013,478,227.07 | ||||||||||
| (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' |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| Equity | |||||||||||||||
| 4. Others | |||||||||||||||
| (III) Profit Distribution | 69,039,836.72 | -258,591,847.10 | -189,552,010.38 | -189,552,010.38 | |||||||||||
| 1. Appropriation of Surplus Reserves | 69,039,836.72 | -69,039,836.72 | |||||||||||||
| 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 of Shareholders' Equity | |||||||||||||||
| 1. Capital Reserves Transferred into Capital (or Share Capital) | |||||||||||||||
| 2. Surplus Reserves Transferred into Capital (or Share Capital) |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| 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 | -24,978,896.47 | 543,809,467.58 | 3,627,091,164.15 | 10,588,767,194.07 | 31,658,215.24 | 10,620,425,409.31 |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| Item | 2020 | ||||||||||||||
| Shareholders' Equity Attributable to the Parent Company's Owner | Minority Shareholders' Equity | Total Shareholders' Equity | |||||||||||||
| Paid-in Capital (Or Share Capital) | Capital Reserves | Less: Treasury Share | Other Comprehensive Incomes | Special Reserves | Surplus Reserves | Genera l Risk Reserves | Undistributed Profits | Others | Subtotal | ||||||
| Preferred Stocks | Perpetual Bonds | Others | |||||||||||||
| I. Balance at the End of Last Year | 1,054,987,749.00 | 3,409,439,863.07 | -4,380,983.53 | 412,680,608.91 | 2,502,765,125.43 | 7,375,492,362.88 | 29,156,922.12 | 7,404,649,285.00 | |||||||
| Add: Changes in Accounting Policies | |||||||||||||||
| Correction of Errors in the Previous Period | |||||||||||||||
| Consolidated under the Same Control | |||||||||||||||
| Others | |||||||||||||||
| II. Balance at the Start of This Year | 1,054,987,749.00 | 3,409,439,863.07 | -4,380,983.53 | 412,680,608.91 | 2,502,765,125.43 | 7,375,492,362.88 | 29,156,922.12 | 7,404,649,285.00 | |||||||
| III. Increases or Decreases in This Period (Decreases in “-“) | -16,250,685.21 | 62,089,021.95 | 365,664,194.05 | 411,502,530.79 | 1,929,530.09 | 413,432,060.88 | |||||||||
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| (I) Total Comprehensive Income | -16,250,685.21 | 628,200,888.31 | 611,950,203.10 | 1,929,530.09 | 613,879,733.19 | ||||||||||
| (II) Shareholders' Contribution and Reduction in Capital | |||||||||||||||
| 1. Common stock invested by the owner | |||||||||||||||
| 2. Capital Invested by Holders of Other Equity Instruments | |||||||||||||||
| 3. Amount of Share-based Payments Recorded into Shareholders' Equity | |||||||||||||||
| 4. Others | |||||||||||||||
| (III) Profit Distribution | 62,089,021.95 | -262,536,694.26 | -200,447,672.31 | -200,447,672.31 | |||||||||||
| 1. Appropriation of Surplus Reserves | 62,089,021.95 | -62,089,021.95 | |||||||||||||
| 2. |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| Appropriation 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 |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| 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 | -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 |
Legal Representative: Wu Jianshu Accounting Work Officer: Hong Tieyang Accounting Institution Officer: Hong Tieyang
Statement of Changes in Owners' Equity of the Parent Company
For the Period from January 2021 to December 2021
Unit:Yuan Currency:RMB
| Item | 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 | |||||||||||
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| 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 | ||||||
| III. Increases or Decreases in This Period (Decreases in “-“) | 47,058,823.00 | 1,931,359,023.74 | 69,039,836.72 | 431,806,520.15 | 2,479,264,203.61 | ||||||
| (1) Total comprehensive income | 690,398,367.25 | 690,398,367.25 | |||||||||
| 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 | 69,039,836.72 | -258,591,847.10 | -189,552,010.38 | ||||||||
| 1. Appropriation of Surplus Reserves | 69,039,836.72 | -69,039,836.72 | |||||||||
| 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) |
Ningbo Tuopu Group Co., Ltd. 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 | 1,102,046,572.00 | 5,340,798,886.81 | 543,809,467.58 | 3,329,948,268.95 | 10,316,603,195.34 |
| Item | 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 | |||||||||||
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| in the Previous Period | |||||||||||
| Others | |||||||||||
| II. Balance at the Start of This Year | 1,054,987,749.00 | 3,409,439,863.07 | 412,680,608.91 | 2,539,788,223.59 | 7,416,896,444.57 | ||||||
| III. Increases or Decreases in This Period (Decreases in “-“) | 62,089,021.95 | 358,353,525.21 | 420,442,547.16 | ||||||||
| (I) Total Comprehensive Income | 620,890,219.47 | 620,890,219.47 | |||||||||
| (II) Shareholders' Contribution and Reduction in Capital | |||||||||||
| 1. Common stock invested by the owner | |||||||||||
| 2. Capital Invested by Holders of Other Equity Instruments | |||||||||||
| 3. Amount of Share-based Payments Recorded into Shareholders' Equity | |||||||||||
| 4. Others | |||||||||||
| (III) Profit Distribution | 62,089,021.95 | -262,536,694.26 | -200,447,672.31 | ||||||||
| 1. Appropriation of Surplus Reserves | 62,089,021.95 | -62,089,021.95 | |||||||||
| 2. Distribution to Owners (or Shareholders) | -200,447,672.31 | -200,447,672.31 | |||||||||
| 3. Others | |||||||||||
| (IV) Internal Carry-forward of Shareholders' Equity | |||||||||||
| 1. Capital Reserves Transferred into Capital (or Share Capital) | |||||||||||
| 2. Surplus Reserves |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| Transferred into Capital (or Share Capital) | |||||||||||
| 3. Surplus Reserves Covering Losses | |||||||||||
| 4. Carry-forward retained earnings of the variation of the defined benefit plan | |||||||||||
| 5. Other Carry-forward Retained Earnings of the Comprehensive Income | |||||||||||
| 6. Others | |||||||||||
| (V) Special Reserves | |||||||||||
| 1. Withdrawal in this period | |||||||||||
| 2. Used in this period | |||||||||||
| (VI) Others | |||||||||||
| IV. Balance at the End of This Period | 1,054,987,749.00 | 3,409,439,863.07 | 474,769,630.86 | 2,898,141,748.80 | 7,837,338,991.73 |
Legal Representative: Wu Jianshu Accounting Work Officer: Hong Tieyang Accounting Institution Officer: Hong Tieyang
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
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 (Limited Partnership),holder of the Corporate Business License (Registration No.: 91330200761450380T), listed on ShanghaiStock Exchange (SSE) in March 2015, is specialized in manufacturing - automobile manufacturing.As of December 31, 2021, the Company has issued a total of 1,102,046,572 shares, with a registeredcapital of RMB 1,102,046,572 million, registered address: 268 Yuwangshan Road, Daqi Street, BeilunDistrict, Ningbo, Zhejiang, headquartered in 268 Yuwangshan Road, Daqi Street, Beilun District, Ningbo,Zhejiang, is engaged in R&D, production and sales of automobile parts. MECCA INTERNATIONALHOLDING （HK） LIMITED is the parent company of the Company is, and Wu Jianshu is the actualcontroller of the Company.
This financial statement was approved for release by the Board of Directors on April 13, 2022.
2. Scope of consolidated statement
√Applicable □Non-applicable
As of December 31
st, 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 braking system Co., Ltd. (hereinafter referred to as "Tuopu Intelligent Brake") |
| 8. Tuopu North American Ltd (hereinafter referred to as " North American ") |
| 9. Ningbo Qianhui Automobile Trim Parts Co., Ltd. (hereinafter referred to as "Ningbo Qianhui") |
| 10. Tuopu North American USA Limited,INC (hereinafter referred to as " Tuopu North American USA") |
| 11. Sichuan Tuopu Automobile Parts Co., Ltd. (hereinafter referred to as "Sichuan Tuopu") |
| 12. Wuhan Tuopu Maigao Automobile Parts Co., Ltd. (hereinafter referred to as "Wuhan Tuopu") |
| 13. Pinghu Tuopu Special Fabric Co., Ltd. (hereinafter referred to as "Pinghu Tuopu") |
| 14. Shanghai Towin Automotive Technology Co., Ltd. (hereinafter referred to as "Shanghai Towin") |
| 15. Ningbo Tuopu Industrial Automation Co., Ltd. (hereinafter referred to as "Tuopu Industrial Automation") |
| 16. Ningbo Tuopu Investment Co., Ltd. (hereinafter referred to as "Tuopu Investment") |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| Name of Subsidiary |
| 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 Mechatronic System Co., Ltd. (hereinafter referred to as "Tuopu Mechatronic System") |
| 22. Tuopu Do Brasil Autope?as Ltda. (hereinafter referred to as "Tuopu Brasil") |
| 23. Tuopu Sweden Technology AB (hereinafter referred to as "Tuopu Sweden") |
| 24. Jinzhong Tuopu Automobile Parts Co., Ltd. (hereinafter referred to as "Jinzhong Tuopu") |
| 25. Shenzhen Towin Automotive Technology Co., Ltd. (hereinafter referred to as "Shenzhen Towin") |
| 26. Zhejiang Towin Automobile Parts Co., Ltd. (hereinafter referred to as "Zhejiang Towin") |
| 27. Sichuan Maigao Automobile Parts Co., Ltd. (hereinafter referred to as "Sichuan Maigao") |
| 28. Hunan Tuopu Automobile Parts Co., Ltd. (hereinafter referred to as "Hunan Tuopu") |
| 29. TUOPU (MALAYSIA) SDN.BHD. (hereinafter referred to as "Tuopu Malaysia") |
| 30. Tuopu USA, LLC (hereinafter referred to as "Tuopu USA") |
| 31. Ningbo Tuopu Chassis System Co., Ltd. (hereinafter referred to as "Tuopu Chassis") |
| 32. Tuopu EV Thermal Management System (Ningbo) Co., Ltd. (hereinafter referred to as "Tuopu Thermal Management") |
| 33. Huzhou Tuopu Automobile Parts Co., Ltd. (hereinafter referred to as “Huzhou Tuopu”) |
| 34、Xi’an Tuopu Automobile Parts Co., Ltd (hereinafter referred to as “Xi’an Tuopu”) |
| 35、Shanghai Tuopu Automobile Parts Co., Ltd. (hereinafter referred to as “Shanghai Tuopu”) |
| 36、TUOPU POLAND SP.Z.O.O (hereinafter referred to as “Tuopu Poland”) |
37、Tuopu Photovoltaic Technology (Ningbo Beilun) Co., Ltd. (hereinafter referred to as “Tuopu Photovoltaic Technology(Ningbo Beilun)”)
| 38、Tuopu Photovoltaic Technology (Ningbo Hangzhou Bay New Area) Co., Ltd. (hereinafter referred to as “Tuopu Photovoltaic Technology (Ningbo Hangzhou Bay New Area)”) |
| 39、Tuopu Photovoltaic Technology (Pinghu) Co., Ltd.(hereinafter referred to as “Tuopu Photovoltaic Technology (Tuopu Photovoltaic Technology (Pinghu))”) |
| 40. Ningbo Yuxiang Smart Mobility Co., Ltd. (hereinafter referred to as “Yuxiang Smart Mobility”) |
| 41. Tuopu Automotive Chassis (Chongqing) Co., Ltd. (hereinafter referred to as "Chongqing Chassis") |
More details about the subsidiaries of the Company are available in “IX. Interests in other entities”.More details about the changes in the scope of consolidation are available in “VIII. Changes in thescope of consolidation”.
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
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 “Accounting Standardsfor Business Enterprises - Basic Standards” issued by the Ministry of Finance and all specific accountingstandards, application guidelines for accounting standards for business enterprises, explanations on theaccounting standards for business enterprises and other related regulations (hereinafter collectively as"Accounting Standards for Business Enterprises"), and the disclosure provisions in the “Preparation Rulesfor Information Disclosures by Companies Offering Securities to the Public No. 15 - General Provisionson Financial Reports” issued by CSRC.
2. Going concern
√Applicable □Non-applicable
These financial statements have been prepared on a going concern basis.
The Company has going-concern ability for at least 12 months from the end of the reporting period,without any significant item affecting the capability for continuing as a going 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 estimates formulated bythe Company according to the characteristics of its production and operation.
1. Statement on compliance with Accounting Standards for Business Enterprises
These financial statements are in line with the provisions of the “Accounting Standards for BusinessEnterprises”as enacted by the Ministry of Finance, and truly and fully reflect the consolidated and theparent’s financial standing as of December 31, 2021, as well as the consolidated and the parent’soperating results and cash flows in 2021.
2. Accounting Period
The period from the 1st day of January to the 31st day of December in the Gregorian calendar iscounted as an accounting period.
3. Operating cycle
√Applicable □Non-applicable
The Company's operating cycle is 12 months.
4. Functional currency
The functional currency applicable to the Company is Renminbi. Subsidiaries affiliated to theCompany determine their functional currency according to the main economic environment in which theyare operating. These financial statements will be presented in RMB.
5. The accounting treatment of business combinations involving enterprises under common controland business combinations not involving enterprises under common control
√Applicable □Non-applicable
Business combination under common control: The assets and liabilities acquired by the merging party inbusiness combination shall be measured at the book value of the assets, liabilities of the merged party(including goodwill incurred in the acquisition of the merged party by ultimate controlling party) in theconsolidated financial statements of the ultimate controlling party on the date of combination. Thedifference between the book value of the net assets obtained and the book value of the consideration paidfor the combination (or total nominal value of the issued shares) is adjusted to capital premium in capital
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
reserve. Adjustments shall be made to retained earnings in the event that the share premiums in thecapital 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 or loss inthe period when the costs are incurred; the transaction expenses of issuing equity securities or debtsecurities for business merger shall be initially capitalized for equity securities or debt securities.
6. Preparation method of consolidated financial statements
√Applicable □Non-applicable
(1). Scope of Consolidation
The scope of consolidation of the consolidated financial statements is based on controlling interestsand includes the Company and all the subsidiaries. Control means that the Company has the rightsover the investee, enjoys variable returns through participating in relevant activities of the investee,and has the ability to influence the amount of returns by exercising its rights over the investee.
(2). Procedures of Consolidation
The Company regards the Enterprise Group as an accounting entity and prepares consolidatedfinancial statements in accordance with unified accounting policies to reflect the overall financialposition, operating result and cash flow of the Enterprise Group. The influence of internal transactionsbetween the Company and the Subsidiaries and between the Subsidiaries shall be offset. Whereinternal transaction indicates the occurrence of impairment loss to relevant assets, such loss shall berecognized in full. In preparing the consolidated financial statements, where the accounting policiesand the accounting periods are inconsistent between the Company and subsidiaries, the financialstatements of subsidiaries are adjusted where necessary in accordance with the accounting policies andaccounting period of the Company.The owner's equity, the net profit or loss and the comprehensive income attributable to minorityshareholders of a subsidiary of the current period are presented separately under the owners' equity inthe consolidated balance sheet, the net profit and the total comprehensive income in the consolidatedincome statement respectively. Where losses attributable to the minority shareholders of a subsidiaryof the current period exceed the minority shareholders' interest entitled in the shareholders' equity ofthe subsidiary at the beginning of the period, the excess is allocated against the minority shareholdersinterest.
(1) Acquisition of subsidiaries or Business
For acquisition of subsidiaries or business due to business combination involving entities undercommon control during the reporting period, the operating results and cash flows of such subsidiaries
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
or business from the beginning to the end of the reporting period when the acquisition occurs shall beincluded in the consolidated financial statements. Adjustments shall be made to the opening balance ofthe consolidated financial statements and the related items in the comparative statementssimultaneously as if the consolidated reporting entity has been in existence since the beginning of thecontrol by the ultimate controlling party.Where the control over the investee under common control is made possible due to additionalinvestment or other reasons, the equity investment held before gaining control of the combined partyis recognized as relevant profit or loss, other comprehensive income and changes of other net assets atthe later of the date of acquisition of the original equity and the date when the combining and thecombined parties are under common control, and shall be written down to the opening retainedearnings or current profit or loss in the comparative reporting period.For acquisition of subsidiaries or business due to business combination involving entities notunder common control during the reporting period, the identifiable assets, liabilities and contingentliabilities shall be included in the consolidated financial statements based on the fair value determinedon the date of the acquisition.
In connection with imposing control over the investee not under joint control due to additionalinvestment and other reasons, the equity of acquiree held before acquisition date shall be remeasuredby the Company at the fair value of such equity on the acquisition date and the difference between fairvalue and book value shall be recognized as investment income in current period. Othercomprehensive income related to the equity held by the Acquiree before the acquisition date which canbe reclassified into future profit or loss, and other changes of owners’ equity accounted for underequity
(2) Disposal of Subsidiaries or Business
General 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 the remainingequity investment, net of the difference between the sum of the Company's previous share of thesubsidiary's net assets recorded from the acquisition date or combination date and the sum of goodwill, isrecognized in investment income in the period in which control is lost. Other comprehensive incomerelated to the equity investment of the original subsidiary that can be reclassified into future profit or loss,and other changes of owners’ equity accounted for under equity method shall be recognized in investmentincome in the period in which control is lost.Disposal of Subsidiary Achieved by StagesWhen disposal of equity interests of subsidiaries through multiple transaction until the control is lost,generally transactions in stages are treatment as a package deal in accounting if the transaction terms,conditions, and economic impact of disposal of the subsidiary's equity interests comply with one or moreof the following:
i. These transactions are achieved at the same time or the mutual effects on each other areconsidered;ii. A complete set of commercial results can be achieved with reference to the series oftransactions as a whole;iii. Achieving a transaction depends on at least achieving of one of the other transaction;iv. One transaction recognized separately is not economical, but it is economical when consideredtogether with other transactions.
When losing control of a subsidiary in disposal of equity interests through multiple transactions isrecognized as a package deal, these transactions shall be in accounting treated as loss control of asubsidiary in disposal of equity interests achieved. However, the differences between price on eachdisposal and disposal of investment on the subsidiary's net assets shall be recognized in other
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
comprehensive income in the consolidated financial statements, and included in profit or loss for theperiod when the control is lost.When all transactions in disposal of equity interests of subsidiaries are not a package deal, accountingtreatment for partial disposal of equity investments of subsidiary without losing control shall be appliedbefore control is lost. When the control is lost, general accounting treatment for disposal of a subsidiaryshall be used.
(3) Acquisition of Minority Interest of Subsidiaries
The Company shall adjust the share premium in the capital reserve of the consolidated balance sheetwith respect to any difference between the long-term equity investment arising from the purchase ofminority interest and the net assets attributing to the parent company continuously calculated on the basisof 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 inaccordance with the share of the Company;
(2) Recognize the liabilities assumed separately by the Company and the liabilities jointlyassumed in accordance with the share of the Company;
(3) Recognize the income generated through the sale of the Company's share of the output ofthe joint operation;
(4) Recognize the income generated through the sale of the output of the joint operation inaccordance with the share of the Company；
(5) Recognize the expenses incurred separately, and the expenses incurred in joint operation inaccordance with the share of the Company .The Company's investment in joint venture is accounted for by the equity method, as specified in the note“V. 21. Long-term Equity Investment”.
8. Recognition criteria of cash and cash equivalents
Cash refers to the cash on hand of the Company and deposits that are available for payment at anytime. Cash equivalents refer to investments held by the Company featuring short duration, strongliquidity, easy conversion into cash of known amount and low risk of changes in value.
9. Conversion of transactions and financial statements denominated in foreign currencies
√Applicable □Non-applicable
(1) Foreign currency transactions
Foreign currency transactions shall be translated into RMB at the spot exchange rate on the daywhen the transactions occurred, or at an exchange rate fixed in accordance with a systematic andreasonable method that is similar to the spot exchange rate on the day when the transactions occurred.Balance sheet date foreign currency monetary items shall be translated using the spot exchange rateat the balance sheet date. The resulting exchange differences are recognized in profit or loss for thecurrent period, except for those differences related to the principal and interest on a specific-purpose
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
borrowing denominated in foreign currency for acquisitions, construction or production of the qualifiedassets, which should be capitalized as cost of the assets.
2. Translation of foreign currency financial statements
All assets and liabilities items in balance sheet are translated based on spot exchange rate on thebalance sheet date; owners' equity items other than "undistributed profits" are translated at a spotexchange rate when accrued. Revenue and expense items as contained in the income statement aretranslated at a spot exchange rate at the transaction occurrence date. For disposal of overseas operation,the translation difference as stated in the foreign currency financial statements relating to overseasoperation, is accounted for in the profit and loss account in the current period from owners' equity items.
10. Financial instruments
√Applicable □Non-applicable
The Company recognizes a financial asset, financial liability or equity instrument when it becomes aparty to a financial instrument contract.
1. Classification of the financial instruments
According to the Company's business model for management of the financial assets and the contractualcash flow features of the financial assets, the financial assets, when initially recognized, are classified as:
financial assets at amortized cost, financial assets at fair value through other comprehensive income andfinancial assets at fair value through profit or loss.For financial assets that meet the following conditions and are not designated to be measured at fairvalue through the current profit or loss, the Company classifies them as financial assets at amortizedcost:
— The business model is aimed at collecting contract cash flow;
— Contract cash flow is the payment of principal and interest based on the outstanding principalamount.
For financial assets that meet the following conditions and are not designated to be measured at fairvalue through current profit or loss, the Company classifies them as financial assets at fair value throughother comprehensive income (debt instruments).
— The business model is aimed at both collecting contract cash flows and selling financial asset;
— Contract cash flow is the payment of principal and interest based on the outstanding principalamount.The Company will, at the time of initial recognition, irrevocably designate non-trading investments inequity instruments as financial assets measured at fair value and the change shall be included in othercomprehensive income (equity instrument). The designation is made on the basis of independentinvestment, and the related investments fit the definition of an equity instrument from an issuer’sperspective.In addition to the aforementioned financial assets at amortized cost and at fair value through othercomprehensive income, the Company classifies all other financial assets as financial assets at fair valuethrough current profit or loss. At the time of initial recognition, for financial assets that should 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:
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
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 liabilities shallbe 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 a reportshall 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 not containmaterial financing compositions and those for which the Company decides to not take into account thefinancing compositions of no more than one year shall be initially measured at the contract transactionprice.
The interest calculated by effective interest method during the holding period is recorded into thecurrent profit and loss.At the time of recovery or disposal, the difference between the price obtained and the book value 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 comprehensiveincome (debt instruments) include receivables financing and investments in other creditor's rights. Theyare initially measured at fair value, and the value, other than the interest, the impairment loss or profitand the profit or loss on foreign exchange, shall be included in other comprehensive income.Upon derecognition, the cumulative profits or losses previously included in other comprehensive incomeshall be removed from other comprehensive income and included in the profit or loss for the period.
(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, andthe change in fair value shall be included in other comprehensive income. The dividends obtained shallbe included in the profit or loss for the period.
Upon derecognition, the cumulative profits or losses previously included in other comprehensiveincome shall be removed from other comprehensive income and included in the carry-forward retainedearnings.
(4) Financial assets at fair value through profit or loss in this period
Financial assets at fair value through profit or loss include trading financial assets, derivativefinancial assets and other non-current financial assets. They are initially measured at fair value, and thetransaction expenses related to them are included in the profit or loss for the period. These financialassets are subsequently measured at fair value, and the change in fair value shall be included in the profitor loss for the period.
(5) Financial Liabilities Measured in Fair Value with Changes Recorded into Current Profit and Loss
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
Financial 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 to themare included in the profit or loss for the period. These financial liabilities are subsequently measured atfair 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 in theprofit 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 the changein fair value previously recorded into the owners' equities (in cases where the transferred financial assetsare financial assets at fair value through other comprehensive income (debt instruments)).If the partial transfer of financial assets satisfies the conditions for termination of recognition, theoverall book value of the transferred financial asset shall be apportioned according to their respectiverelative fair value between the recognition terminated part and the remaining part, and the differencebetween the two amounts below shall be recorded into profit or loss for the current period:
(1) The book value of the recognition terminated portion;
(2) The sum of consideration of the recognition terminated portion and the corresponding portion ofaccumulated change in fair value previously recorded into owners' equity (in cases where the transferredfinancial assets are financial assets at fair value through other comprehensive income (debt instruments)).Financial assets will still be recognized if they fail to satisfy the conditions for termination of recognition,with the consideration received recognized as a financial liability.
4. Recognition for termination of financial liabilities
When the current obligation under a financial liability is completely or partially discharged, therecognition of the whole or relevant portion of the liability is terminated; an agreement is enteredbetween the Company and a creditor to replace the original financial liabilities with new financial
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
liabilities 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 part andterminated part on the repurchase date. The difference between the book value of the financial liabilitiesterminated and the consideration paid (including transferred non-cash assets or new financial liability) isrecognized 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 market isdetermined 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. Unobservableinputs are used under the circumstance that the relevant observable inputs cannot be obtained or notfeasible.
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 of default.If the credit risk of this financial instrument has been significantly increased upon initial recognition, theCompany measures its loss provision in accordance with the amount equivalent to the expected creditloss of the financial instrument throughout the duration; if the credit risk of this financial instrument isnot significantly increased upon initial recognition, the Company will measure the loss provision of thisfinancial instrument by the amount of its expected credit loss in the twelve months to come. Theincreased or reversed amount of the loss provision resulting therefrom is included in the current profit orloss as the impairment loss or profit.The Company recognizes the relative changes in the risk of default within the expected duration offinancial instruments, and assesses whether the credit risk of financial instruments has significantlyincreased since the initial recognition by comparing the risk of default of financial instruments on the
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
balance 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 of thisfinancial 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 that thecredit 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 individual assetbasis.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 expected credit lossthroughout 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 longer reasonablyexpects that the contract cash flow of the financial asset can be recovered in whole or in part.
11. Notes receivable
Determination method and accounting treatment method of expected credit loss of notes receivable
□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 realizable value.A provision shall be made for inventory price drops if inventory costs exceed the net realizable value. Netrealizable value refers to the amount after deducting the estimated costs to be incurred at the time of
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
completion, the estimated selling expenses and taxes from the estimated sales price of inventories duringdaily 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 determined bytheir 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 of thecontracted price. If an enterprise holds more inventories than the quantity stipulated in the sales contract,the net realizable value of the exceeding part shall be calculated on the ground of general selling 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 inventory ishigher than its book value after the withdrawal due to the disappearance of the factors that influence thewriting-down of its value.
4. Inventory system
The perpetual inventory system is adopted.
5. Amortization of low-value consumables and packaging materials
Low-value consumables are amortized using the immediate write-off method;Packaging materials are amortized using the immediate write-off method.
16. Contract Assets
(1). Recognition methods and standards of contract assets
√Applicable □Non-applicable
The Company shall show the contract assets or contract liabilities in the balance sheet in accordancewith the relationship between the performance of the contract obligations and the Customer payment. TheCompany shall list its right to receive consideration due to the transfer of goods or services to theCustomer (and such rights are subject to factors other than the passage of time) as contractual assets.Contract assets and contract liabilities under the same contract shall be shown on a net basis. TheCompany’s unconditional right (depending solely on the passage of time) to collect consideration fromthe 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 “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
(1). Determination method and accounting treatment method of expected credit loss of debtinvestment
□Applicable √Non-applicable
19. Other debt investment
(1). Determination methods and accounting treatment methods of expected credit losses of otherdebt investments
□Applicable √Non-applicable
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
20. Long-term receivables
(1) 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 of theultimate controlling party on the date of combinations shall be taken as the initial investment cost of thelong-term equity investments. For difference between the initial cost of long-term equity investment andthe book value of the consideration paid, adjustments shall be made to the equity premiums in the capitalreserve. When the equity premiums in the capital reserve are not sufficient for write-down, the retainedearnings shall be adjusted. Where control over the investee under common control is available due toadditional 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 other reasons,the initial investment shall be the sum of the book value of the equity investment originally held and thenewly 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, unless theinvestment 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
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
Long-term equity investments of associates and jointly controlled entities are calculated using equitymethod. Where the initial investment cost exceeds the investment, the difference between the share of thefair value of the investee’s identifiable net assets shall be enjoyed and no adjustment shall be made to theinitial investment cost of long-term equity investment; where the initial investment cost is less than theinvestment, the difference between the share of the fair value of the investee’s identifiable net assets shallbe enjoyed and be included in current profit or loss, and adjustments shall be made to the initialinvestment 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 assets orliabilities 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 preparation ofindividual financial statements provided that joint control or significant influence over the investee can beimposed, and shall be adjusted as if such remaining equities has been accounted for under the equitymethod since they are obtained. Other comprehensive income recognized prior to the acquisition ofcontrols over the investee shall be carried over proportionally using the same basis as the direct disposalof related assets or liabilities by the investee. Other changes of owner’s equity due to the use of equitymethod shall be carried over into the current profit or loss proportionally. Where the remaining equitiesafter disposal cannot impose joint control or significant influence over the investee, it shall be recognizedas financial asset, and the difference between fair value and the book value on the date of losing controlshall be included in the current profit or loss. All the other comprehensive incomes and other changes ofowners’ equity recognized prior to the acquisition of controls over the investee shall be carried over.
When losing control over a subsidiary in step-by-step disposal of its equity interests through multipletransactions is recognized as a package deals, these transactions shall be in accounting treated as loss ofcontrol of a subsidiary in disposal of equity interests. The differences between price on each disposal
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
prior to loss of control and the long-term equity investment book value of the disposed equity shall berecognized as other comprehensive income in individual financial statements, and included in the currentprofit or loss when the control is lost. Transactions not recognized as a package deal shall be accountedfor 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, orboth, 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 when therelevant economic benefits are likely to flow in and the cost can be measured reliably; otherwise, it shallbe 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 the enterprise;
(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 when therelevant economic benefits are likely to flow in and the cost can be measured reliably; the book value ofthe replaced part is derecognized; other subsequent expenditures shall be included in current profit or lossat the time of occurrence.
(2). Methods for depreciation
√Applicable □Non-applicable
| Category | Depreciation Method | Useful Lives of Depreciation | Residual Ratio | Annual Depreciation |
| Housing and building | Straight-line method | 20 | 10% | 4.50% |
| Machinery and equipment | Straight-line method | 5-10 | 10% | 18.00%-9.00% |
| Means of transportation | Straight-line method | 5 | 10% | 18.00% |
| Office equipment and others | Straight-line method | 5 | 10% | 18.00% |
| Buildings for commercial use | Straight-line method | Land use certificate indicates the remaining years but no longer than 40 years | 10% |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
The depreciation of fixed assets is classified and accrued using the straight-line method, and thedepreciation rate is fixed according to the type of fixed assets, estimated useful life and estimated netresidual value rate. Fixed assets with impairment provision made, the depreciation amount shall bedetermined according to the book value net of the depreciation reserves and the remaining useful life inthe future period. If the userful life of each part of fixed assets is different or provides economic benefitsto the enterprise in different manners, different depreciation rates or depreciation methods shall be chosenand depreciation shall be accrued separately.
(3). Recognition basis, valuation and depreciation method of fixed assets under financing lease
□Applicable √Non-applicable
24. Projects under construction
√Applicable □Non-applicable
Construction in progress is measured at the actual costs incurred. The actual cost includesconstruction costs, installation costs, borrowing costs that meet the capitalization conditions, and othernecessary expenditures incurred before the construction in progress reaches its intended use status.Construction in progress reaching predetermined serviceable conditions shall be converted to fixed assetsand begin counting for depreciation the following month.
25. Borrowing Costs
√Applicable □Non-applicable
1. Criteria for recognition of capitalized borrowing costs
For borrowing costs incurred by the Company that are directly attributable to the acquisition,construction or production of assets qualified for capitalization, the costs will be capitalized and includedin the costs of the related assets. Other borrowing costs shall be recognized as expense in the period inwhich they are incurred and included in profit or loss for the current period.
Assets qualified for capitalization are assets (fixed assets, investment property, inventories, etc.) thatnecessarily take a substantial period of time for acquisition, construction or production to get ready fortheir intended use or sale.
2. Capitalization period of borrowing costs
The capitalization period shall refer to the period between the commencement and the cessation ofcapitalization of borrowing costs, excluding the period in which capitalization of borrowing costs istemporarily suspended.
Capitalization of borrowing costs begins when the following three conditions are fully satisfied:
(1) Expenditures for the assets (including cash paid, transferred non-currency assets or expenditurefor holding debt liability for the acquisition, construction or production of assets qualified forcapitalization) have been incurred;（(2) Borrowing costs have been incurred;
(3) Acquisition, construction or production that are necessary to enable the asset reach its intendedusable or salable condition have commenced.
Capitalization of borrowing costs shall be suspended during periods in which the qualifying assetunder acquisition and construction or production ready for the intended use or sale.
3. Suspension of capitalization period
Capitalization of borrowing costs shall be suspended during periods in which the acquisition,construction or production of a qualifying asset is interrupted abnormally, when the interruption is for acontinuous period of more than 3 months; if the interruption is a necessary step for making the qualifyingasset 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 investment
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
income 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 average interestrate 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
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 as anintangible asset with indefinite service life, and shall not be amortized.
2. Estimated useful lives for the intangible assets with finite service life
| Item | Estimated useful lives | Amortization Method | Basis |
| Land use rights | 38-50 years | Straight-line method | Land use certificate |
| Software | 2-10 years | Straight-line method | Expected benefited period |
| Emission rights | 5 years | Straight-line method | Emission permits |
3. basis for the judgment of intangible assets with uncertain service life and the procedure forreviewing their service life
As of December 31
st
, 2021, the Company has no intangible assets with uncertain useful life.
4. Specific criteria for the division of research phase and development phase
The expenses for internal research and development projects of the Company are divided intoexpenses in the research phase and expenses in the development phase.
Research phase: Scheduled innovative investigations and research activities to obtain and understandscientific or technological knowledge.
Development phase: Apply the research outcomes or other knowledge to a plan or design prior to acommercial production or use in order to produce new or essentially-improved materials, devices,products, etc.
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
5. Specific condition for capitalizing expenditure during the development phaseExpenses in the research phase are recorded into the profits and losses for the current period whenthey occur. Expenditure during the development phase that simultaneously satisfies the followingconditions shall be recognized as intangible assets. Otherwise shall be included in current profit or loss:
(1) It is technically feasible to complete such intangible asset so that it will be available for useor for sale;
(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; if theintangible 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, right-of-use assets，and intangible 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 asset isless than its book value, a provision for impairment and an impairment loss are recognized for the amountby which the asset's book value exceeds its recoverable amount. The recoverable amount is the higher ofan asset's fair value less costs to sell and the present value of the future cash flows expected to be derivedfrom the asset. Provision for asset impairment is determined and recognized on the individual asset basis.If it is not possible to estimate the recoverable amount of an individual asset, the recoverable amount of agroup of assets to which the asset belongs to is determined. A group of assets is the smallest group ofassets 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 least atthe 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 groups thatcan benefit from the synergies of business combination.
For the purpose of impairment test on the relevant asset groups or the sets of asset groups containinggoodwill, if any evidence shows that the impairment of asset groups or sets of asset groups related togoodwill is possible, an impairment test will be made first on the asset groups or sets of asset groups notcontaining goodwill, thus calculating the recoverable amount and comparing it with the relevant bookvalue so as to recognize the corresponding impairment loss. Asset group or combination of group assetscontaining goodwill are tested for impairment and the book value and recoverable amount shall becompared. If the recoverable amount is less than the book value, the amount of impairment loss shall bededucted and apportioned to the book value of goodwill in asset group or combination of asset groups,before deducting to the book value of all other assets proportionally based on the proportion of the bookvalue of all assets other than goodwill in the asset group or combination of asset groups. Once the aboveasset impairment loss is recognized, it will not be reversed in the subsequent accounting periods.
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
31. Long-term prepaid expenses
√Applicable □Non-applicable
Long-term prepaid expenses are expenses which have occurred but will benefit over 1 year and shallbe amortized over the current period and subsequent periods.
| Item | Amortization Method | Amortization period |
| Renovation cost | Straight-line method | 5 years |
| Software maintenance fee | Straight-line method | 5 years |
| Others | Straight-line method | 3-5 years |
32. Contract liabilities
(1).Recognition method of contract liabilities
√Applicable □Non-applicable
The Company shall show the contract assets or contract liabilities in the balance sheet in accordancewith the relationship between the performance of the contract obligations and the Customer payment. TheCompany’s obligation to transfer goods or provide services to customers for which consideration hasbeen received or receivable are presented as contractual liabilities. Contract assets and contract liabilitiesunder the same contract shall be shown on a net basis.
33. Employee remuneration
(1). Accountant arrangement method of short-term remuneration
√Applicable □Non-applicable
During the accounting period when the staff provides service, the Company will recognize theshort-term remuneration actually incurred as liabilities, and the liabilities would be charged into currentprofits and loss or costs of assets.
The Company will pay social insurance and housing funds, and will make provision of trade unionfunds and staff education costs in accordance with the requirements. During the accounting period whenthe staff provides service, the Company will determine the relevant amount of employee benefits inaccordance with the required provision basis and provision ratios.
The expenses on employee benefit incurred by the Company shall be included in the current profit orloss or related asset cost based on the actual amount when actually incurred, and the non-monetary benefitshall 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 with therelevant 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 formula determinedby projected unit credit method would be vested to the service period of the staff and charged into currentprofits 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 defined benefitplan.
All defined benefit plan obligations, including obligations expected to be paid within twelve monthsafter the end of the annual reporting period in which employees render services, are discounted at themarket rate of return in respect of the national debts matching the term and currency of the defined
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
benefit 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 income willbe 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 by thedifference between the present value of the obligation of the defined benefit plan and the settlement pricedetermined 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 provided bylabor relationship termination plan or layoff proposal; when the Company recognizes costs or expensesrelated 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
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 Customer obtainscontrol over the relevant goods or services. Obtaining control over related goods or services meansto be able to dominate the use of the goods or services and obtain virtually all economic benefits from it.
Where the Contract contains the performance of two or more obligations, the Company shall, on thecommencement date of the Contract, apportion the transaction price to each individual performanceobligation on the basis of the relative proportion of the individual selling price of the goods or servicecommitted by each individual performance obligation. The Company shall measure its income on thebasis of the transaction price apportioned to each individual performance obligation.
The transaction price refers to the amount of consideration the Company is expected to be entitled toreceive for the transfer of goods or services to the Customer, excluding payments received on behalf ofthird 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, materialfinancing elements in the Contract, non-cash consideration, consideration payable to customers and otherfactors. The Company determines the transaction price that includes the variable consideration at anamount not exceeding the amount of accumulated recognized income which is not likely to be materiallyreversed when the relevant uncertainty is eliminated. Where there is material financing components in theContract, the Company shall determine the transaction price on the basis of the amount payable based onthe assumption that the Customer pays in cash upon obtaining control over the goods or services, and
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
shall amortize the difference between the transaction price and the Contract consideration by effectiveinterest 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's performanceof obligations at the same time of that the Company perform its obligations.? The Customer can control the goods under construction during the process that the Company perform itsobligations.? The product produced by the Company during the performance of its obligations is irreplaceable inuse, and the Company shall be entitled to receive payment for the accumulated part of the performancecompleted so far during the whole Contract period.For obligations performed within a certain period of time, the Company shall recognize income onthe basis of the performance progress during that period, except when the performance progress cannot bereasonably 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 over relevantgoods or services:
? The Company is entitled to collect payment in respect of the goods or services immediately, i.e. theCustomer is obliged to make payment in respect of the goods or services immediately? The Company has transferred legal ownership of the goods to the Customer, i.e. the Customer haslegal ownership of the goods.? The Company has physically transferred the goods to the Customer, i.e. the Customer has physicallypossessed the goods.? The Company has transferred the principal risks and rewards in the ownership of the goods to theCustomer, i.e. the Customer has obtained the principal risks and rewards in the ownership of the goods.? The Customer has received the goods or services, etc.
2. Specific principles
(1) Domestic company
1) Domestic sales
For sales to domestic carmakers, the goods received by customer and the notice of issuing an invoice istreated as the time point of revenue recognition. For domestic after-sales market sales, the time ofdelivery is treated as the time point of revenue recognition.
2) Overseas
For general trade sales, customs declaration and export are treated as the revenue confirmation timepoint. For the sales based on DDU and DDP as contained in the sales contract, the time of arrival at thedestination and the acknowledgment of receipt by customer is treated as the time point of revenuerecognition.
(2) Tuopu North American Ltd
The time of shipment and the acknowledgment of receipt by customer is treated as the time point ofrevenue recognition.
(2). Different business models adopted for similar businesses leading to differences in revenuerecognition accounting policies
□Applicable√ Non-applicable
39. Contract costs
√Applicable □Non-applicable
Contract costs include contract performance costs and contract acquisition costs.
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
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 profit orloss 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 from thegovernment free of charge. Government grants are classified into government grants related to assets andgovernment 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 the followingcriteria:
If the government document specifies the specific intended project of subsidies, it will be classifiedaccording to the relative ratio of the amount paid of the asset and the amount paid included in theexpenses as part of the specific project, and the classification ratio needs to be checked and if necessary,changed on each balance sheet date.
The company classifies government grants into revenue-related grants in accordance with thefollowing criteria:
If the government documents have not yet specified the intended subjects of grants, the Companywill classify the government grants as asset-related or income-related according to the following criteria:
2. Confirmation of time point
Government subsidies are confirmed when the company can meet its attached conditions and can bereceived.
3. Accounting treatment
Government grants related to assets shall write off the book value of relevant assets or be recognizedas deferred income. When recognized as deferred income, the government grant related to assets will beperiod by period credited to the profits and losses of the current period in a reasonable and systematicmanner within the service life of relevant assets (those related to the Company's daily activities shall berecognized as other income; those unrelated to the Company's daily activities shall be recognized asnon-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 to
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
offset 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 accounting profit andtaxable income (or deductible loss) at the time of occurrence.For taxable temporary differences related to investments in subsidiaries, associates and joint ventures,deferred income tax liability is recognized, unless the Company can control the timing of reversal of suchtemporary differences and such temporary differences are not likely to be reversed in the foreseeablefuture. For deductible temporary differences related to the investments of subsidiaries, associates andjoint ventures, deferred tax asset is recognized when the temporary differences are likely to be reversed inthe foreseeable future and the taxable income amount used to offset the deductible temporary differencesis likely to be obtained in the future.
On the balance sheet date, the Company reviews the book value of the deferred income tax assets.The book value of the deferred income tax asset will be written down if sufficient taxable income is notlikely to be obtained to offset the benefit of the deferred income tax asset in the future period. Thewrite-down amount will be reversed when sufficient taxable income is likely to be obtained.
After granted the legal rights of net settlement and with the intention to use net settlement or obtainassets and repay debt at the same time, the net amount after offsetting its current income tax assets andcurrent income tax liabilities shall be recorded.
On the balance sheet date, deferred income tax assets and deferred income tax liabilities shall be, asstipulated by tax law, measured by the applicable tax rate of the period of expected recovery of therelevant assets or settlement of the relevant liabilities.? The taxpayer has the legal right to settle the current income tax assets and current income taxliabilities on a net basis;? Deferred income tax assets and deferred tax liabilities are related to the income tax to be paid bythe same entity liable to pay tax to the same tax collection and management authority or related todifferent entities liable to pay tax. The relevant entity liable to pay tax is intended to apply net settlementof current income tax assets and liabilities or, at the same time, obtain assets and repay debt in everyfuture period that deferred income tax assets and liabilities with importance would be reversed.
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
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 lease standard
√Applicable □Non-applicable
Accounting policy effective from January 1, 2021Lease 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.
For rent derates, late payments and other rent reductions in connection with current lease contractsdirectly caused by the outbreak of COVID-19, if all of the following conditions are satisfied, theCompany will apply a simplified method to all lease options, and does not evaluate whether there is alease change or reassess lease classification:
? The lease consideration subject to deduction is reduced or basically remains unchangedcompared to that before deduction, in which the lease consideration can be undiscounted or discounted atthe discount rate before deduction;
? The deduction only applies to the lease payments payable before June 30, 2022, an increase inlease payments payable after June 30, 2022 will not impact this condition, and a decrease in leasepayments payable after June 30, 2022 will not satisfy this condition; and
? Other terms and conditions of the lease have not changed significantly after consideringqualitative and quantitative factors.
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, whichincludes:
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 III. (XIX). 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;
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
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 that itwill 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 The presentvalue 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 company calculatesthe present value based on the changed lease payment and the original discount rate Remeasure the leaseliability. However, if changes in lease payments originate from changes in floating interest rates, therevised 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 leased assetis a new asset. If the Company subleases or expects to sublease the leased assets, the original lease is nota low-value asset lease.
(4) Lease change
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
If the lease is changed and the following conditions are met at the same time, the company shall treatthe 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 expanded partof 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 lease term,and calculates the current lease payment based on the lease payment after the change and the reviseddiscount 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.
(5) Rent reductions related to COVID-19
For rents applicable to the simplified method of rent deducts in connection with the outbreak ofCOVID-19, the Company does not assess whether there is a lease change, continues to calculate theinterest expense of the lease liability at the same discount rate as that before reduction and record it in thecurrent gain and loss, and continues to accrue the depreciation of right-of-use assets in the same way asthat before reduction. In the event of rent deducts, the Company will treat the reduced rent as the variablelease payment amount. Where the original rent payment obligation is discharged by reaching deductionagreement, the discounted amount at the undiscounted or pre-discount discount rate will write down thecost or expense of relevant assets and adjust the lease liabilities accordingly; in the event of a delay in therent payment, the Company will write down the lease liabilities recognized in the previous period whenthe actual payment is incurred.
For short-term leases and low-value asset leases, the Company continues to record the originalcontract rent in the cost or expense of the relevant assets in the same way as that before reduction. In theevent of rent deducts, the Company will treat the reduced rent as the variable lease payment and writedown the costs or expenses of relevant assets during the period of reduction; in the event of a delay in therent payment, the Company will recognize the rent payable as payable during the period of originalpayment and write down the payables recognized before write-down when the actual payment is incurred.
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 ultimately transferred.Operating leases refer to leases other than financial leases. When the Company acts as a sublease lessor, itclassifies 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 the
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
amount of advance receipts or lease receivables related to the lease before the change shall be regarded asthe 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 value andthe 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 "III. (X). 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 expanded partof 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, andthe company will conduct accounting treatment in accordance with the policy of this note "III. (X).Financial Instruments" on the modification or renegotiation of the contract.
(3) Rent reductions related to COVID-19
? For operating leases applicable to the simplified method of rent reduction in connection withthe outbreak of COVID-19, the Company continues to recognize the original contract rent as rentalincome in the same way as that before reduction; in the event of rent deducts, the Company treats thereduced rent as variable lease payments and write down the lease income during the period of reduction;in the event of a delay in the rent payment, the Company will recognize the receivable rent as an accountreceivable during the period of original collection and write down the receivable recognized beforewrite-down when actually received.
? For financial leasing applicable to the simplified method of rent deducts in connection with theoutbreak of COVID-19, the Company continues to calculate the interest expense of the lease liability atthe same discount rate as that before reduction and recognize it as rent income. In the event of rentdeducts, the Company will treat the reduced rent as variable lease payments, where the right to collectoriginal rent is waived by reaching deduction agreement, the discounted amount at the undiscounted orpre-discount discount rate is used to write down the originally recognized lease income, and the partinsufficient to write down is recorded in the investment income and the financial lease receivables areadjusted accordingly; in the event of a delay in the rent collection, the Company will write down thefinance lease receivables recognized before write-down when actually received.
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 "III. (XXIV). Revenue".
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
(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 the leaseThe rights of the person confirm the relevant gains or losses; if the asset transfer in the sale and leasebacktransaction does not belong to the sale, the company as the lessee continues to confirm the transferredassets and at the same time confirms a financial liability equal to the transfer income. For the accountingtreatment of financial liabilities, see "III. (x). 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 the transferof assets is not a sale, the company as the lessor does not recognize the transferred assets, but recognizes afinancial asset equal to the transfer income. For the accounting treatment of financial assets, see "III. (X).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.
For rent derates, late payments and other rent reductions in connection with current lease contractsdirectly caused by the outbreak of COVID-19, if all of the following conditions are satisfied, theCompany will apply a simplified method to all lease options, and does not evaluate whether there is alease change or reassess lease classification:
? The lease consideration subject to deduction is reduced or basically remains unchangedcompared to that before deduction, in which the lease consideration can be undiscounted or discounted atthe discount rate before deduction;
? The deduction only applies to the lease payments payable before June 30, 2022, an increase inlease payments payable after June 30, 2022 will not impact this condition, and a decrease in leasepayments payable after June 30, 2022 will not satisfy this condition; and
? Other terms and conditions of the lease have not changed significantly after consideringqualitative and quantitative factors.
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.
For operating leases applicable to the simplified method of rent reduction in connection with theoutbreak of COVID-19, the Company continues to recognize the original contract rent as rental income inthe same way as that before reduction; in the event of rent deducts, the Company treats the reduced rentas contingent rent and record it in gain or loss during the period of deducts; in the event of a delay in rentpayment, the Company will recognize the payable rent as an account payable during the period of originalpayment and write down the payable recognized before write-down when actually paid.
(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 transaction shallbe included in the current expenses; if the amount is large, it shall be capitalized and included in the
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
current income in installments based on the same basis as the lease-related income recognition during theentire lease period.When the Company bears the lease-related expenses that should be borne by the lessee, the companydeducts this part of the expenses from the total rental income, and distributes the deducted rental expensesduring the lease term.For operating leases applicable to the simplified method of rent reduction in connection with theoutbreak of COVID-19, the Company continues to recognize the original contract rent as rental income inthe same way as that before reduction; in the event of rent deducts, the Company treats the reduced rentas variable lease payments and write down the lease income during the period of reduction; in the eventof a delay in the rent payment, the Company will recognize the receivable rent as an account receivableduring the period of original collection and write down the receivable recognized before write-downwhen actually received.
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, 2021. | "Accounting Standards for Business Enterprises No. 21-Lease (2018 Revision)" (Cai Kuai [2018] No. 35) | The company will carry out the new lease standards from January 1, 2021. On the consolidated balance sheet at the beginning of the year, the right-of-use assets will be recognized at RMB 5,692,642.06, and the lease liabilities will be recognized at RMB 1,887,412.42. The lease liabilities due within one year are reclassified as non-current liabilities due within one year with the amount recognized as RMB 3,805,229.64. |
Other Notes? The Company as tenant
The Company elects to adjust the amount of retained earnings and other related items in the financialstatements at the beginning of the year when the new lease standard was first implemented based on thecumulative impact of the new lease standard implementation for the first time, without adjusting thecomparable period information.For operating leases existing before the date of initial application, the Company measures the leaseliability at the present value of the remaining lease payments on the date of initial application discountedat the rate applicable to its incremental borrowings on the date of initial application, and chooses one ofthe following two methods for each lease to measure the right-of-use asset:
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
- Assume that the book value of the new lease standard is adopted from the commencement date of thelease term, the rate applicable to its incremental borrowings on the date of initial application is treated asthe discount rate.- An amount equal to the lease liability and adjusted as necessary for prepaid rent.For operating leases prior to the date of initial application, the Company applies one or more of thefollowing simplified treatments for each lease while adopting the said method:
1) Leases that will be completed within 12 months after the first implementation date are treated asshort-term leases;
2) To measure lease liabilities, use the same discount rate for leases with similar characteristics;
3) The measurement of right-of-use assets does not include initial direct costs;
4) If there is an option to renew the lease or to terminate the lease, the lease term shall be determinedaccording to the actual exercise of the option before the first execution date and other latest conditions;
5) As an alternative to the impairment test of the right-of-use asset, according to this accompanyingnote "III. (23) Estimated liabilities", assess whether the contract containing the lease is a loss-makingcontract before the first execution date, and record it in the balance sheet according to the first executiondate 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.To measure the lease liability, the Company discounts the lease payments using the rate applicable to thetenant’s incremental borrowings as at 1 January 2021.
| Outstanding minimum lease payments for significant operating leases disclosed in the consolidated financial statements as at december 31, 2020 | 7,104,781.98 |
| Present value discounted at the rate applicable to the Company's incremental borrowing as of January 1, 2021 | 5,692,642.06 |
| Lease liabilities under the new leases standard as at 1 January 2021 | 5,692,642.06 |
| Differences between the above discounted present value and the lease liability |
For the financial leases that existed before the date of initial application, the Company shall measure theright-of-use assets and lease liabilities according to the original book values of the assets under thefinancial lease and the financial lease payments payable on the date of initial application.
? The Company as landlordFor sub-leases classified as operating leases before the date of initial application and still existing after thedate of initial application, the Company reassesses based on the remaining contract terms and terms of theoriginal lease and sub-lease on the date of initial application, and classifies them under the provisions ofthe new lease standards . If it is reclassified as finance lease, the Company will treat it as a new financelease.Except for sub-lease, the Company does not have to adjust the lease as tenant under the new leasestandards. The Company conducts accounting treatment under the new lease standards from the date ofinitial application.? The main impacts of the Company's application of the new lease standards on the financial statementsare stated below:
| Content and reasons for changes in accounting policies | Impacted financial statement items | Impact amount on balance as at January 1, 2021 | |
| Consolidated | Parent | ||
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| Content and reasons for changes in accounting policies | Impacted financial statement items | Impact amount on balance as at January 1, 2021 | |
| Consolidated | Parent | ||
| (1) Adjustment of the Company as tenant to the existing operating lease before the date of initial application | Right-of-use assets | 5,692,642.06 | |
| Lease liabilities | 1,887,412.42 | ||
| Non-current liabilities due within one year | 3,805,229.64 | ||
(2) “Interpretation No.14 of Accounting Standards for Business Enterprises” in forceOn February 2, 2021, the Ministry of Finance issued the “Interpretation No. 14 of Accounting Standardsfor Business Enterprises” (Cai Kuai [2021] No. 1, hereinafter referred to as "Interpretation No. 14"),which will come into force on the date of publication. The relevant business operations added fromJanuary 1, 2021 to the date of application shall be adjusted under the Interpretation No. 14.
①Government-Private Partnership (PPP) project contracts
Interpretation No. 14 is applicable to PPP project contracts that meet both the "dual characteristics"and "dual controls" as described in the Interpretation. Retrospective adjustments should be made torelevant PPP project contracts that commenced before December 31, 2020 and have not been completedon the date of application, if retrospective adjustment is inoperable, it shall be applied from the beginningof the earliest period of the retrospective adjustment, and the information of the comparable period shallnot be adjusted to the retained earnings at the beginning of the current year and other relevant items of thefinancial statement on the date of application of the cumulative effect adjustment.
The application of this provision has no material impact on the financial position and operatingresults of the Company.
②Benchmark interest rate reform
Interpretation No. 14 simplifies the accounting treatment for circumstances in which the benchmarkinterest rate reform leads to changes of the basis for determining cash flows related to financialinstrument contracts and lease contracts.
Under the provisions of the Interpretation, the business related to the benchmark interest rate reformthat occurred before December 31, 2020 should be subject to retrospective adjustment, except whereretrospective adjustment is inoperable, without need to adjust the data in the comparative financialstatements of the previous period. On the application date of the interpretation, the difference between theoriginal book value and the new book value of financial assets and financial liabilities is recorded in theretained earnings or other comprehensive income at the beginning of the annual reporting period in whichthe interpretation is applied. The application of this provision has no material impact on the financialposition and operating results of the Company.
(3) "Notice on Adjusting the Scope of Application of the Regulations on the Accounting Treatment ofRent Concessions Related to the Outbreak of COVID-19" in force
On June 19, 2020, the Ministry of Finance issued the "Regulations on the Accounting Treatment ofRent Concessions Related to the Outbreak of COVID-19" (Cai Kuai [2020] No. 10), the Company mayelect to adopt a simplified approach for accounting treatment of rent deducts, delay in rent payment andother rent concessions directly caused by the outbreak of COVID-19.
On May 26, 2021, the Ministry of Finance issued the "Notice on Adjusting the Scope of Applicationof the Regulations on the Accounting Treatment of Rent Concessions Related to the Outbreak ofCOVID-19" (Cai Kuai [2021] No. 9), which will come into force from May 26, 2021, the scope ofapplication of rent concessions related to the outbreak of COVID-19 applicable to simplified approachunder the “Regulations on the Accounting Treatment of Rent Concessions Related to the Outbreak ofCOVID-19" is adjusted from “such concessions are only applicable to lease payments due before June 30,2021” to “such concessions oare nly applicable to lease payments payable before June 30, 2021”, andother applicable conditions remain unchanged.
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
The Company has elected to applied simplified approach for accounting treatment of all leasecontracts satisfying the requirements before the adjustment of the scope of application, apply simplifiedapproach for accounting treatment of similar lease contracts satisfying the conditions after the adjustmentof the scope of application, and subject the relevant lease contracts for which the accounting treatment isconducted with lease change before the release of such notice to retrospective adjustments, withoutdjusting the comparative financial statement data of the previous period; for relevant rent concessions thathave occurred between January 1, 2021 and the effective date of such notice, but not yet subject toaccounting treatment under the provisions of such notice, adjustment will be made against such notice.
The application of this provision has no material impact on the financial position and operatingresults of the Company.
(4) Presentation of the centralized management of funds as contained in the “Interpretation No. 15ofAccounting Standards for Business Enterprises” in force
On December 30, 2021, the Ministry of Finance issued the “Interpretation No. 15 of AccountingStandards for Business Enterprises” (Cai Kuai [2021] No. 35, hereinafter referred to as "Interpretation No.15"), and the content of "Presentation of Centralized Fund Management" will come into force from thedate of publication, and the financial statement data of the comparable period will be adjustedaccordingly.
Interpretation No. 15 specifies how the balance related to the centralized and consistent managementof the funds of the parent and member units through internal settlement centers and financial firms shouldbe presented and disclosed in the balance sheet. The application of this provision has no material impacton the financial position and operating results of the Company.
(2). Changes in significant accounting estimates
□Applicable √Non-applicable
(3). Since 2021, 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
Consolidated Balance Sheet
Unit: Yuan Currency: RMB
| Item | December 31st, 2020 | January 1st, 2021 | Adjustd Figures |
| Current assets: | |||
| Cash and Bank Balances | 787,123,646.45 | 787,123,646.45 | |
| Deposit Reservation for Balance | |||
| Loans to Banks and Other Financial Institutions | |||
| Trading Financial Assets | 176,111.00 | 176,111.00 | |
| Derivative Financial Assets | |||
| Notes receivable | 296,283,951.73 | 296,283,951.73 | |
| Accounts receivable | 1,783,267,007.65 | 1,783,267,007.65 | |
| Receivables Financing | 742,203,122.21 | 742,203,122.21 | |
| Prepayments | 42,883,818.40 | 42,883,818.40 | |
| Premium Receivable | |||
| Reinsurance Accounts Receivable | |||
| Reinsurance Contract Reserves Receivable | |||
| Other Receivables | 31,087,166.38 | 31,087,166.38 | |
| Including: interest receivable | |||
| Dividends Receivable | |||
| Buying Back the Sale of Financial Assets | |||
| Inventory | 1,502,751,836.88 | 1,502,751,836.88 | |
| Contract Assets | |||
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| Holding for-sale assets | |||
| Non-current Assets Due within 1 year | |||
| Other Current Assets | 173,824,691.82 | 173,824,691.82 | |
| Subtotal of Current Assets | 5,359,601,352.52 | 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 | 150,295,983.58 | 150,295,983.58 | |
| Investment in Other Equity | |||
| Other Non-current Financial Assets | |||
| Investment Property | 31,603,418.12 | 31,603,418.12 | |
| Fixed Assets | 4,248,257,966.73 | 4,248,257,966.73 | |
| Projects under Construction | 943,993,396.96 | 943,993,396.96 | |
| Productive Biological Assets | |||
| Oil and gas assets | |||
| Right-of-use Assets | 5,692,642.06 | 5,692,642.06 | |
| Intangible Assets | 678,561,105.86 | 678,561,105.86 | |
| Development Expenditure | |||
| Goodwill | 253,310,074.24 | 253,310,074.24 | |
| Long-term unamortized expenses | 57,679,259.94 | 57,679,259.94 | |
| Deferred Income Tax Assets | 94,968,559.88 | 94,968,559.88 | |
| Other Non-current Assets | 296,957,402.06 | 296,957,402.06 | |
| Subtotal of Non-current Assets | 6,755,627,167.37 | 6,761,319,809.43 | 5,692,642.06 |
| Total Assets | 12,115,228,519.89 | 12,120,921,161.95 | 5,692,642.06 |
| Current Liabilities: | |||
| Short-term loan | 400,378,888.89 | 400,378,888.89 | |
| Borrowings from the Central Bank | |||
| Borrowings from Banks and Other Financial Institutions | |||
| Transactional financial liabilities | |||
| Derivative Financial Liabilities | |||
| Notes Payable | 1,471,327,551.91 | 1,471,327,551.91 | |
| Accounts Payable | 1,898,255,116.17 | 1,898,255,116.17 | |
| Received Prepayments | |||
| Contract liabilities | 22,685,660.41 | 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 | 138,292,361.67 | 138,292,361.67 | |
| Tax Payable | 82,865,303.29 | 82,865,303.29 | |
| Other Payables | 15,722,105.17 | 15,722,105.17 | |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| Including: interest payable | |||
| Dividends Payable | |||
| Service Charge and Commission Payable | |||
| Reinsurance Accounts Payable | |||
| Holding for-sale liabilities | |||
| Non-current Liabilities Due within 1 Year | 3,805,229.64 | 3,805,229.64 | |
| Other Current Liabilities | 1,507,896.52 | 1,507,896.52 | |
| Subtotal of Current Liabilities | 4,031,034,884.03 | 4,034,840,113.67 | 3,805,229.64 |
| Non-current Liabilities: | |||
| Insurance Contract Reserves | |||
| Long-term loan | |||
| Bonds Payable | |||
| Including: Preferred Stocks | |||
| Perpetual Bonds | |||
| Lease Liabilities | 1,887,412.42 | 1,887,412.42 | |
| Long-term Payables | |||
| Long-term payroll payable | |||
| Expected Liabilities | |||
| Deferred Income | 214,204,302.56 | 214,204,302.56 | |
| Deferred Income Tax Liabilities | 51,907,987.42 | 51,907,987.42 | |
| Other Non-current Liabilities | |||
| Subtotal of Non-current Liabilities | 266,112,289.98 | 267,999,702.40 | 1,887,412.42 |
| Total Liabilities | 4,297,147,174.01 | 4,302,839,816.07 | 5,692,642.06 |
| Owners’ Equity(or Shareholders' Equity): | |||
| Paid-in Capital (or Share Capital) | 1,054,987,749.00 | 1,054,987,749.00 | |
| Other Equity Instruments | |||
| Including: Preferred Stocks | |||
| Perpetual Bonds | |||
| Capital Reserves | 3,409,439,863.07 | 3,409,439,863.07 | |
| Less: Treasury Share | |||
| Other Comprehensive Incomes | -20,631,668.74 | -20,631,668.74 | |
| Special Reserves | |||
| Surplus Reserves | 474,769,630.86 | 474,769,630.86 | |
| General Risk Reserves | |||
| Undistributed Profits | 2,868,429,319.48 | 2,868,429,319.48 | |
| Total Owners’ Equity (Shareholders' Equity) Attributable to the Parent Company | 7,786,994,893.67 | 7,786,994,893.67 | |
| Minority Shareholders' Equity | 31,086,452.21 | 31,086,452.21 | |
| Total Owners’ Equity(or Shareholders' Equity) | 7,818,081,345.88 | 7,818,081,345.88 | |
| Total Liabilities and Total Owners’ Equity(or Shareholders' Equity) | 12,115,228,519.89 | 12,120,921,161.95 | 5,692,642.06 |
Notes to adjustment of all items:
√Applicable □Non-applicable
The Company will carry out the new lease standards from January 1, 2021. On the consolidated
balance sheet at the beginning of the year, the right-of-use assets will be recognized at RMB 5,692,642.06,
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
and the lease liabilities will be recognized at RMB 1,887,412.42. The lease liabilities due within one yearare reclassified as non-current liabilities due within one year, with the recognized amount of RMB3,805,229.64.
Balance Sheet of the Parent Company
Unit: Yuan Currency: RMB
| Item | December 31st, 2020 | January 1st,2021 | Adjusted amount |
| Current assets: | |||
| Cash and Bank Balances | 191,701,837.06 | 191,701,837.06 | |
| Trading Financial Assets | |||
| Derivative Financial Assets | |||
| Notes receivable | |||
| Accounts receivable | 1,840,937,312.96 | 1,840,937,312.96 | |
| Receivables Financing | |||
| Prepayments | 20,784,751.77 | 20,784,751.77 | |
| Other Receivables | 76,146,034.58 | 76,146,034.58 | |
| Including: interest receivable | |||
| Dividends Receivable | |||
| Inventory | 658,887,785.40 | 658,887,785.40 | |
| Contract Assets | |||
| Holding-for-sale assets | |||
| Non-current Assets Due within 1 Year | |||
| Other Current Assets | |||
| Subtotal of Current Assets | 2,788,457,721.77 | 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 | 4,071,774,944.06 | 4,071,774,944.06 | |
| Investment in Other Equity Instruments | |||
| Other Non-current Financial Assets | |||
| Investment Property | 31,603,418.12 | 31,603,418.12 | |
| Fixed Assets | 2,125,534,955.22 | 2,125,534,955.22 | |
| Projects under Construction | 324,037,109.77 | 324,037,109.77 | |
| Productive Biological Assets | |||
| Oil and gas assets | |||
| Right-of-use Assets | |||
| Intangible Assets | 261,540,370.50 | 261,540,370.50 | |
| Development Expenditure | |||
| Goodwill | |||
| Long-term unamortized expenses | 18,012,648.52 | 18,012,648.52 | |
| Deferred Income Tax Assets | 33,565,021.69 | 33,565,021.69 | |
| Other Non-current Assets | 53,576,040.76 | 53,576,040.76 | |
| Subtotal of Non-current Assets | 6,919,644,508.64 | 6,919,644,508.64 | |
| Total Assets | 9,708,102,230.41 | 9,708,102,230.41 | |
| Current Liabilities: | |||
| Short-term loan | 400,378,888.89 | 400,378,888.89 | |
| Transactional financial liabilities | |||
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| Derivative Financial Liabilities | |||
| Notes Payable | 165,480,933.26 | 165,480,933.26 | |
| Accounts Payable | 1,070,753,965.63 | 1,070,753,965.63 | |
| Received Prepayments | |||
| Contract liabilities | 1,448,964.90 | 1,448,964.90 | |
| Payroll payable | 73,653,497.54 | 73,653,497.54 | |
| Tax Payable | 54,138,713.22 | 54,138,713.22 | |
| Other Payables | 5,126,892.30 | 5,126,892.30 | |
| Including: interest payable | |||
| Dividends Payable | |||
| Holding for-sale liabilities | |||
| Non-current Liabilities Due within 1 Year | |||
| Other Current Liabilities | 188,365.44 | 188,365.44 | |
| Subtotal of Current Liabilities | 1,771,170,221.18 | 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 | 70,962,922.25 | 70,962,922.25 | |
| Deferred Income Tax Liabilities | 28,630,095.25 | 28,630,095.25 | |
| Other Non-current Liabilities | |||
| Subtotal of Non-current Liabilities | 99,593,017.50 | 99,593,017.50 | |
| Total Liabilities | 1,870,763,238.68 | 1,870,763,238.68 | |
| Owners’ Equity(or Shareholders' Equity): | |||
| Paid-in Capital (or Share Capital) | 1,054,987,749.00 | 1,054,987,749.00 | |
| Other Equity Instruments | |||
| Including: Preferred Stocks | |||
| Perpetual Bonds | |||
| Capital Reserves | 3,409,439,863.07 | 3,409,439,863.07 | |
| Less: Treasury Share | |||
| Other Comprehensive Incomes | |||
| Special Reserves | |||
| Surplus Reserves | 474,769,630.86 | 474,769,630.86 | |
| Undistributed Profits | 2,898,141,748.80 | 2,898,141,748.80 | |
| Total Owners’ Equity(or Shareholders' Equity) | 7,837,338,991.73 | 7,837,338,991.73 | |
| Total Liabilities and Total Owners’ Equity(or Shareholders' Equity) | 9,708,102,230.41 | 9,708,102,230.41 | |
Notes to adjustment of all items:
□Applicable √Non-applicable
(4). Notes to compared data before and after the adjustment according to the first implementationof the new revenue recognition standard and the new lease accounting standard in 2021
□Applicable √Non-applicable
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
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 Type | Taxation basis | Tax rate |
| VAT | According to the provisions of the tax law, the sales tax shall be calculated on the basis of the income by selling goods and taxable services. After deducting the input tax that is allowed to be deducted from the sales tax in the current period, the difference shall be the value added tax | 13%、9%、6%（注1） |
| Consumption tax | ||
| Business tax | ||
| Urban Maintenance and Construction Tax | Calculated based on the actual VAT paid | 7%、5%、1%（注2） |
| Education Surcharges | Calculated based on the actual VAT paid | 3% |
| Local Education Surcharges | Calculated based on the actual VAT paid | 2% |
| Enterprise income tax | Calculated based on the taxable income | 34%、27.88%、27%、26.5%、25%、24%、22.2%、19%、16.5%、15%、 |
Note 1: The VAT tax of technology development service fees are calculated at 6% of the taxableincome; if other VAT taxable sales activities are occurred in the Company, under the “Announcement ofthe Ministry of Finance, the State Administration of Taxation, and the General Administration ofCustoms on deepening the policies of VAT reform" (Announcement of the Ministry of Finance, the StateAdministration of Taxation, and the General Administration of Customs, 2019 No.39), the tax rateapplicable to VAT will be adjusted to 13% and 9% from April 1
st
, 2019.
Note 2: If there are taxable entities applicable to different corporate city maintenance andconstruction tax rates, make a disclosure of statement:
| Name of Taxpayer | Urban Maintenance and Construction Tax Rate |
| Liuzhou Tuopu | 5% |
| Ningbo Qianhui | 5% |
| Sichuan Tuopu | 5% |
| Pinghu Tuopu | 5% |
| Taizhou Tuopu | 5% |
| Tuopu Mechatronic System | 5% |
| Zhejiang Towin | 5% |
| Hunan Tuopu | 5% |
| Tuopu EV Thermal Management System (Ningbo) Co., Ltd. | 5% |
| Shanghai Towin | 1% |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| Name of Taxpayer | Urban Maintenance and Construction Tax Rate |
| Other companies | 7% |
If there are taxpayers applicable to different corporate local education surcharge rates, make a disclosureof the description
√Applicable □Non-applicable
| Name of Taxpayer | Income Tax Rate (%) |
| The Company | 15 |
| Ningbo Qianhui | 15 |
| Baoji Tuopu | 15 |
| Tuopu Mechatronic System | 15 |
| Zhejiang Towin | 15 |
| Sichuan Maigao | 15 |
| Tuopu North American Ltd | 26.50 |
| Tuopu North American USA Limited, INC | 27 |
| Tuopu International | 16.50 |
| Tuopu Poland | 19 |
| Tuopu Sweden | 22.20 |
| TUOPU (MALAYSIA) SDN.BHD. | 24 |
| Tuopu USA, LLC | 27.88 |
| Tuopu Brasil | 34 |
| Other company | 25 |
2. Preferential tax rate
√Applicable □Non-applicable
1. Under the provisions of the “Administrative measures for the accreditation of hi-tech enterprises”(Guo Ke Fa Huo [2016] No. 32) and the “Guidelines for the accreditation management of hi-techenterprises” (Guo Ke Fa Huo [2016] No.195), Ningbo Science and Technology Bureau, Ningbo FinanceBureau, and Ningbo Tax Service, SAT issued the certificate of hi-tech enterprise (No. GR202133100574).As set out in the certificate, the Company was accredited as a hi-tech enterprise and this accreditation isvalid for 3 years. Within this period of validity, the preferential tax rate for corporate income tax is 15%,which is effective from 2021 to 2023 The corporate income tax rate for 2020 is 15%.
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 enterprise and this accreditationis valid for 3 years. Within this period of validity, the preferential tax rate for corporate income tax is 15%,which is effective from January 1
st
, 2020 to December 31
st, 2022. The corporate income tax rate for 2021is 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 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 Smart Brake was accredited as a hi-tech enterprise and thisaccreditation 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 2021 is 15%.
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
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 2021 is 15%.
6. Under the relevant provisions of the "Announcement on Continuing the Enterprise Income TaxPolicy for the Great Western Development" (Announcement No. 23 [2020] of the NDRC) and the "List ofEncouraged Industries in the Western Region", Sichuan Department of Economics and InformationTechnology accredited Sichuan Maigao as encouraged industry enterprise and the preferential tax rate forcorporate income tax is 15%, which is effective from January 1, 2021 to December 31, 2030. Therefore,the corporate income tax rate effective in 2021 will be 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 | 9,367.02 | 8,899.73 |
| Bank Balance | 935,663,023.96 | 674,857,522.35 |
| Other Cash and Bank Balances | 335,777,756.39 | 112,257,224.37 |
| Total | 1,271,450,147.37 | 787,123,646.45 |
| Including: Total Amount Deposited in Overseas Banks | 162,601,396.46 | 70,846,825.02 |
Other notes
Schedule of the cash and bank balances restricted for use
| Item | Balance at the End of the Period | Balance at the Beginning of the Period |
| Documentary Credit Deposit | 328,627,756.39 | 112,257,224.37 |
| L/C Guarantee deposits | 7,150,000.00 | |
| Total | 335,777,756.39 | 112,257,224.37 |
2. Trading Financial Assets
√Applicable □Non-applicable
Unit： Yuan Currency： RMB
| 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 | 321,507,846.86 | 176,111.00 |
| Including: | ||
| Investment in debt instruments | ||
| Equity instrument investment | 1,507,846.86 | 176,111.00 |
| Short-term financial products | 320,000,000.00 | |
| Financial assets that are designated to be measured at fair value and whose changes are included in the current | ||
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| profit and loss | ||
| Including: | ||
| Total | 321,507,846.86 | 176,111.00 |
Other Notes
□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 | 364,139,072.40 | 296,283,951.73 |
| Commercial Acceptance Notes | ||
| Total | 364,139,072.40 | 296,283,951.73 |
(2). Notes receivable pledged by the Company at the end of the period
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
| Item | Pledged amount by the end of period |
| Bank Acceptance Notes | 315,417,218.51 |
| Commercial Acceptance Notes | |
| Total | 315,417,218.51 |
(3). Notes receivable that the Company has endorsed or discounted at the end of the period and thathave not yet expired on the balance sheet date
□Applicable √Non-applicable
(4). Notes that the Company has transferred to accounts receivable due to a failure of contractperformance at the end of the period.
□Applicable √Non-applicable
(5). Categorical disclosure of accounts receivable
□Applicable √Non-applicable
Provision for bad debts by single item:
□Applicable √Non-applicable
Provision for bad debts by combination:
□Applicable √Non-applicable
If the bad debt provision is made by the general expected credit loss model, e refer to the disclosure ofother receivables:
□Applicable √Non-applicable
(6). Provision for bad debts
□Applicable √Non-applicable
(7). Notes receivable actually written off in the current period
□Applicable √Non-applicable
Other notes
□Applicable √Non-applicable
5. Accounts receivable
(1). Disclosure by aging
√Applicable □Non-applicable
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
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 | 3,314,227,792.25 |
| Subtotal within 1 year | 3,314,227,792.25 |
| 1 to 2 years | 17,038,956.67 |
| 2 to 3 years | 3,521,656.24 |
| Over 3 years | 9,858,015.54 |
| 3 to 4 years | |
| 4 to 5 years | |
| Over 5 years | 6,838,046.63 |
| Total | 3,351,484,467.33 |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
(2）. Categorical disclosure by provision for bad debts
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
| Category | Balance at the End of the Period | Balance at the Beginning of the Period | ||||||||||||||
| Book Balance | Bad Debt Provision | Book Value | Book Balance | Bad Debt Provision | Book Value | |||||||||||
| Amount | (%) Percentage (%) | Amount | Accrued Proportion (%) | Amount | Percentage (%) | Amount | Accrued Proportion (%) | |||||||||
| Bad debt provision accrued based on single item | 7,536,306.12 | 0.22 | 7,536,306.12 | 100.00 | 7,929,510.12 | 0.42 | 7,929,510.12 | 100.00 | ||||||||
| Bad debt provision accrued based on single item | 3,343,948,161.21 | 99.78 | 175,727,356.26 | 5.26 | 3,168,220,804.95 | 1,885,685,399.76 | 99.58 | 102,418,392.11 | 5.43 | 1,783,267,007.65 | ||||||
| Including: | ||||||||||||||||
| Bad debt provision accrued based on aging combinations | 3,343,948,161.21 | 99.78 | 175,727,356.26 | 5.26 | 3,168,220,804.95 | 1,885,685,399.76 | 99.58 | 102,418,392.11 | 5.43 | 1,783,267,007.65 | ||||||
| Total | 3,351,484,467.33 | / | 183,263,662.38 | / | 3,168,220,804.95 | 1,893,614,909.88 | / | 110,347,902.23 | / | 1,783,267,007.65 | ||||||
Bad debt provision accrued based on single item
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
| Name | Balance at the End of the Period | |||
| Book Balance | Bad Debt Provision | Accrued Proportion (%) | Reason for Accrual | |
| Chongqing Hyosow Parts Co., Ltd. | 4,682,782.60 | 4,682,782.60 | 100.00 | Expected to be unable to recover |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| Henan Dongqi Chenfei Rubber and Plastic Co., Ltd. | 2,438,745.39 | 2,438,745.39 | 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 | / |
Notes to Bad debt provision accrued based on single item:
□Applicable √Non-applicable
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
Bad debt provision accrued based on combinations
√Applicable □Non-applicable
Accrued items based on combinations: Accrued items based on aging group
Unit：Yuan Currency：RMB
| Name | Balance at the End of the Period | ||
| Accounts Receivable | Bad Debt Provision | Accrued Proportion(%) | |
| Within 1 year (including 1 year) | 3,314,227,792.25 | 165,711,389.60 | 5.00 |
| 1-2 years (including 2 years) | 17,038,956.67 | 1,703,895.67 | 10.00 |
| 2-3 years (including 3 years) | 3,521,656.24 | 1,056,496.87 | 30.00 |
| 3-5 years (including 5 years) | 4,760,454.81 | 2,856,272.88 | 60.00 |
| Over 5 years | 4,399,301.24 | 4,399,301.24 | 100 |
| Total | 3,343,948,161.21 | 175,727,356.26 | |
Recognition criteria for and notes to bad debt provision by combinations
□Applicable √Non-applicable
If the bad debt provision is made by the general expected credit loss model, e refer to the disclosure ofother receivables:
□Applicable √Non-applicable
(3). Bad debt provision
√Applicable□Non-applicable
Unit：Yuan Currency：RMB
| 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 | 393,204.00 | 7,536,306.12 | |||
| Bad debt provision accrued based on combinations | 102,418,392.11 | 73,308,964.15 | 175,727,356.26 | |||
| Total | 110,347,902.23 | 73,308,964.15 | 393,204.00 | 183,263,662.38 | ||
Significant withdrawal or reversal amount of provision for bad debts in the current period:
□Applicable √Non-applicable
(4). Accounts receivable actually written off in the current period
□Applicable √Non-applicable
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
(5). Accounts receivable of the top five closing balances collected by debtors
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
| Name of Entity | Balance at the End of the Period | Proportion in Total Accounts Receivable (%) | Bad Debt Provision |
| No.1 | 1,194,730,156.60 | 35.65 | 59,736,507.83 |
| No.2 | 220,869,428.46 | 6.59 | 11,043,471.42 |
| No.3 | 130,775,004.82 | 3.90 | 6,538,750.24 |
| No.4 | 108,405,089.04 | 3.23 | 5,420,254.45 |
| No.5 | 72,052,791.34 | 2.15 | 3,602,639.57 |
| Total | 1,726,832,470.26 | 51.52 | 86,341,623.51 |
(6).Accounts receivable derecognized due to the transfer of financial assets
□Applicable √Non-applicable
(7). Amount of assets and liabilities formed by the transfer of accounts receivable and continuedinvolvement
□Applicable √Non-applicable
Other Notes:
□Applicable √Non-applicable
6. Receivables Financing
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
| Item | Balance at the End of the Period | Balance at the Beginning of the Period |
| Notes receivable | 972,493,168.64 | 742,203,122.21 |
| Accounts receivable | ||
| Total | 972,493,168.64 | 742,203,122.21 |
Changes in the financing of receivables and changes in fair value in the current period:
√Applicable □Non-applicable
| Item | Balance at the End of Previous Year | Increase in the Current Period | Derecognition in the Current Period | Other Changes | Balance at the End of the Period | Cumulative loss provision recognized in other comprehensive income |
| Bank Acce | 714,860,797.35 | 2,185,275,119.25 | 1,990,530,963.19 | 909,604,953.41 |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| ptance Notes | ||||||
| Commercial Acceptance Notes | 27,342,324.86 | 217,309,287.56 | 179,892,560.86 | -1,870,836.33 | 62,888,215.23 | |
| Total | 742,203,122.21 | 2,402,584,406.81 | 2,170,423,524.05 | 972,493,168.64 |
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
Unit：Yuan Currency：RMB
| Item | Pledged amount by the end of period |
| Bank Acceptance Notes | 810,828,525.63 |
| Commercial Acceptance Notes | 10,960,000.00 |
| Total | 821,788,525.63 |
2. Notes receivable that the Company has endorsed or discounted at the end of the period and thathave not yet expired on the balance sheet date
Unit：Yuan Currency：RMB
| Item | Derecognised amount at the end of the period | Not derecognised amount at the end of the period |
| Bank Acceptance Notes | 1,518,056,240.48 | |
| Total | 1,518,056,240.48 |
3. Provision for impairment of accounts receivable financing
As of December 31
st, 2021, the amount of commercial acceptance notes was RMB 66,198,121.29,the Company managed the unmatured commercial acceptance notes as accounts receivable according tothe principle of prudence and made a provision for bad debts of unmatured commercial acceptance notesin RMB 3,309,906.06 according to the principle of continuous calculation in respect of the age of itscorresponding accounts receivable.
7. Prepayments
(1). Aging analysis of prepayments is as follows
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
| Aging | Balance at the End of the Period | Balance at the Start of the Period | ||
| Amount | Percentage(%) | Amount | Percentage(%) | |
| Within 1 year | 81,259,561.39 | 96.18 | 38,834,366.57 | 90.56 |
| 1-2 years | 1,651,762.16 | 1.96 | 2,579,881.03 | 6.02 |
| 2-3 years | 179,441.10 | 0.21 | 838,134.84 | 1.95 |
| Over 3 years | 1,398,339.71 | 1.65 | 631,435.96 | 1.47 |
| Total | 84,489,104.36 | 100.00 | 42,883,818.40 | 100.00 |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
(2).Particulars of advance payment of the top five closing balances by prepayment parties
√Applicable □Non-applicable
| Name of Entity | Balance at the end of the period | Proportion in total balance of prepayments at the end of the period |
| IPS SHANGHAI INC. COMPANY | 10,000,000.00 | 11.84 |
| SHANGHAI YAOTANG TECHNOLOGY CO LTD | 2,999,999.71 | 3.55 |
| JOHNSON ELECTRIC (GUANGDONG) CO., LTD. | 2,133,257.16 | 2.52 |
| SRI TRANG INTERNATIONAL PTE.LTD | 1,994,493.38 | 2.36 |
| GROZ-BECKERT TRADING (SHENZHEN) CO. LTD. | 1,753,161.34 | 2.08 |
| Total | 18,880,911.59 | 22.35 |
Other Notes
□Applicable √Non-applicable
8. Other Receivables
Presentation of items
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
| Item | Balance at the end of the period | Balance at the beginning of the period |
| Interest receivable | ||
| Dividend receivable | 3,719,979.84 | |
| Other Receivables | 40,959,387.43 | 31,087,166.38 |
| Total | 44,679,367.27 | 31,087,166.38 |
Other Notes:
□Applicable √Non-applicable
Interest receivable
(1). Category of interest receivable
□Applicable √Non-applicable
(2). Important late payment interest
□Applicable √Non-applicable
(3). Particulars of bad debt provision
□Applicable √Non-applicable
Other Notes:
□Applicable √Non-applicable
Dividend receivable
(4). Dividend Receivable
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
| Item (or Invested Entity) | Balance at the end of the period | Balance at the beginning of the period |
| Chongqing Antolin Tuopu Overhead System Co., Ltd. | 3,719,979.84 | |
| Less：Bad debt provision |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| Total | 3,719,979.84 |
(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
(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 | 37,827,479.46 |
| Subtotal within 1 year | 37,827,479.46 |
| 1-2 years | 5,026,322.41 |
| 2-3 years | 280,002.55 |
| Over 3 years | 758,975.00 |
| 3-4 years | |
| 4-5 years | |
| Over 5 years | 779,020.19 |
| Bad debt provision | 44,671,799.61 |
(7). Categorized by the nature of funds
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
| Nature of Funds | Book balance at the end of the period | Book balance at the beginning of the period |
| Petty cash funds | 1,785,350.00 | 122,815.13 |
| Security deposit | 37,215,851.82 | 29,417,358.76 |
| Others | 5,670,597.79 | 4,122,370.20 |
| Total | 44,671,799.61 | 33,662,544.09 |
(8). Particulars of bad debt provision
√Applicable □Non-applicable
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 | 2,575,377.71 | 2,575,377.71 | ||
| Balance of the current period on January 1, 2021 | ||||
| --Transfer to Phase 2 | ||||
| --Transfer to |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| Phase 3 | ||||
| --Transfer to Phase 2 | ||||
| --Transfer to Phase 1 | ||||
| Provision made in the current period | 1,137,034.47 | 1,137,034.47 | ||
| Reversal in the current period | ||||
| Write-off in the current period | ||||
| Write-off in the current period | ||||
| Other changes | ||||
| Balance on December 31, 2021 | 3,712,412.18 | 3,712,412.18 |
Notes to significant changes in the book balance of other receivables that have changed in the currentperiod:
□Applicable √Non-applicable
Amount of bad debt provision in the current period and the basis for assessing whether the credit risk offinancial instruments has increased significantly:
□Applicable √Non-applicable
(9). Particulars of bad debt provision
√Applicable □Non-applicable
Unit： Yuan Currency： RMB
| 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 | 1,137,034.47 | 3,712,412.18 | |||
| Total | 2,575,377.71 | 1,137,034.47 | 3,712,412.18 | |||
Bad debt provision in the current period with significant amount of withdrawal or reversal:
□Applicable √Non-applicable
(10). Particulars of other receivables actually written off in the current period
□Applicable √Non-applicable
(11). Particulars of other receivables of the top five closing balances collected by debtors
√Applicable □Non-applicable
Unit： Yuan Currency： RMB
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| 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 | 33,259,433.00 | Within 1 year | 74.45 | 1,662,971.65 |
| Ningbo Hangzhou Bay New Area Haichuang Industrial Co., Ltd. | Security deposit | 868,500.00 | Within 1 year | 1.94 | 43,425.00 |
| Liu Hongsong | Other | 455,000.00 | 2 to 5 years | 1.02 | 264,900.00 |
| Shenbei New District Station of Shenyang Construction Engineering Quality Supervision Station | Security deposit | 340,000.00 | Over 5 years | 0.76 | 340,000.00 |
| Li Dongmei | Other | 255,800.00 | 3 to 5 years | 0.57 | 153,480.00 |
| Total | / | 35,178,733.00 | / | 78.74 | 2,464,776.65 |
(12). Accounts receivable related to government subsidies
□Applicable √Non-applicable
(13). Other accounts receivable derecognised due to transfer of financial assets
□Applicable √Non-applicable
(14). Amount of assets and liabilities generated due to transfer of other receivables and continuedinvolvement
□Applicable √Non-applicable
Other Notes:
□Applicable √Non-applicable
Ningbo Tuopu Group Co., Ltd. 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 | 295,991,257.60 | 295,991,257.60 | 217,685,102.37 | 217,685,102.37 | |||||
| WIPs | |||||||||
| Finished goods | 1,018,334,344.47 | 58,225,344.98 | 960,108,999.49 | 617,392,628.62 | 38,312,844.14 | 579,079,784.48 | |||
| Revolving materials | 26,763,189.32 | 26,763,189.32 | 15,283,612.95 | 15,283,612.95 | |||||
| Consumptive biological assets | |||||||||
| Contract performance cost | |||||||||
| Production cost | 453,562,883.94 | 453,562,883.94 | 244,417,226.39 | 244,417,226.39 | |||||
| Delivered goods | 560,557,512.72 | 560,557,512.72 | 446,286,110.69 | 446,286,110.69 | |||||
| Total | 2,355,209,188.05 | 58,225,344.98 | 2,296,983,843.07 | 1,541,064,681.02 | 38,312,844.14 | 1,502,751,836.88 | |||
(2). Inventory depreciation provision and contract performance cost impairment provision
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
| Item | Balance at the Start of the Period | Increase in the Current Period | Decrease in the Current Period | Balance at the End of the Period | ||
| Accrued | Others | Reversal or Write-off | Others | |||
| Raw materials | ||||||
| WIPs | ||||||
| Finished goods | 38,312,844.14 | 24,461,606.50 | 4,549,105.66 | 58,225,344.98 | ||
| Revolving materials | ||||||
| Consumptive biological assets | ||||||
| Contract performance cost | ||||||
| Total | 38,312,844.14 | 24,461,606.50 | 4,549,105.66 | 58,225,344.98 | ||
Ningbo Tuopu Group Co., Ltd. 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
If the bad debt provision is made by the general expected credit loss model, e refer to the disclosure ofother receivables:
□Applicable √Non-applicable
Other Notes:
□Applicable √Non-applicable
11. Holding-for-sale assets
□Applicable √Non-applicable
12. Non-current assets due within one year
□Applicable √Non-applicable
Important debt investments and other debt investments at the end of the period:
□Applicable √Non-applicable
13. Other Current Assets
□Applicable √Non-applicable
Unit：Yuan Currency：RMB
| Item | Balance at the End of the Period | Balance at the Beginning of the Period |
| Contract acquisition cost | ||
| Prepaid income tax | 1,763,396.48 | 5,400,034.11 |
| Prepayments of other taxes | 3,166.41 | |
| Unpaid VAT | 264,420,517.02 | 168,424,657.71 |
| Total | 266,187,079.91 | 173,824,691.82 |
14. Debt Investment
(1). Particulars of debt investment
□Applicable √Non-applicable
(2). Important debt investment at the end of the period
□Applicable √Non-applicable
(3). Particulars of provision for impairment
□Applicable √Non-applicable
The amount of impairment provision for the current period and the basis for assessing whether the creditrisk of financial instruments has increased significantly
□Applicable √Non-applicable
Other Notes
□Applicable √Non-applicable
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
15. Other Debt Investments
(1). Particulars of other debt investments
□Applicable √Non-applicable
(2). Other important debt investments at the end of the period
□Applicable √Non-applicable
(3). Particulars of provision for impairment
□Applicable √Non-applicable
The amount of impairment provision for the current period and the basis for assessing whether the creditrisk of financial instruments has increased significantly
□Applicable √Non-applicable
Other Notes:
□Applicable √Non-applicable
16. Long-term Receivables
(1). Particulars of long-term receivables
□Applicable √Non-applicable
(2). Particulars of provision for bad debts
□Applicable √Non-applicable
The amount of provision for bad debts in the current period and the basis for assessing whether the creditrisk of financial instruments has increased significantly
□Applicable √Non-applicable
(3). Long-term receivables derecognized due to the transfer of financial assets
□Applicable √Non-applicable
(4). The amount of assets and liabilities formed by the transfer of long-term receivables andcontinued involvement
□Applicable √Non-applicable
Other Notes
□Applicable √Non-applicable
Ningbo Tuopu Group Co., Ltd. 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 | Others | |||||||||||
| I. Joint ventures | ||||||||||||||||||
| Tuopu Electrical Appliances Co., Ltd. | 62,576,414.03 | 7,071,034.74 | 20,000,000.00 | 49,647,448.77 | ||||||||||||||
| Ningbo Borgers Tuopu Automobile Parts Co., Ltd. | 77,081,863.30 | 10,360,123.92 | 15,000,000.00 | 72,441,987.22 | ||||||||||||||
| Subtotal | 139,658,277.33 | 17,431,158.66 | 35,000,000.00 | 122,089,435.99 | ||||||||||||||
| II. Affiliates | ||||||||||||||||||
| Chongqing Antolin Tuopu Overhead System Co., Ltd. | 10,637,706.25 | 470,613.13 | 3,719,979.84 | 7,388,339.54 | ||||||||||||||
| Subtotal | 10,637,706.25 | 470,613.13 | 3,719,979.84 | 7,388,339.54 | ||||||||||||||
| Total | 150,295,983.58 | 17,901,771.79 | 38,719,979.84 | 129,477,775.53 | ||||||||||||||
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
18. Other equity instrument investments
(1). Particulars of other equity instrument investments
□Applicable √Non-applicable
(2). Particulars of investment in non-trading equity instruments
□Applicable √Non-applicable
Other Notes:
□Applicable √Non-applicable
19. Other non-current financial assets
□Applicable √Non-applicable
Other Notes:
□Applicable √Non-applicable
20. Investment property
Measurement options of investment property
(1). Investment properties measured by cost method
Unit： Yuan Currency： RMB
| Item | Buildings and constructions | Land use rights | Projects under Construction | Total |
| I . Original book value | ||||
| 1. Balance at the beginning of the period | 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 | |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| 2. Increased in the Current Period | 1,493,867.57 | 180,333.81 | 1,674,201.38 | |
| (1) Accrual or Amortization | 1,493,867.57 | 180,333.81 | 1,674,201.38 | |
| 3. Decreased in the Current Period | ||||
| (1) Disposal | ||||
| (2) Other transfer-out | ||||
| 4. Balance at the end of the period | 23,181,318.75 | 2,641,759.44 | 25,823,078.19 | |
| 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 | 25,881,964.18 | 4,047,252.56 | 29,929,216.74 | |
| 2. Book value at the beginning of the period | 27,375,831.75 | 4,227,586.37 | 31,603,418.12 | |
(2). Particulars of investment property without the property right certificate granted
□Applicable √Non-applicable
Other Notes
□Applicable √Non-applicable
21. Fixed assets
Presentation of items
√Applicable □Non-applicable
Unit： Yuan Currency： RMB
| Item | Balance at the end of the period | Balance at the beginning of the period |
| Fixed assets | 5,831,567,302.57 | 4,248,257,966.73 |
| Disposal of fixed assets | ||
| Total | 5,831,567,302.57 | 4,248,257,966.73 |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
Other Notes:
□Applicable √Non-applicable
Fixed Assets
(1). Particulars of fixed Assets
√Applicable □Non-applicable
Unit： Yuan Currency： RMB
| Item | Houses and buildings | Means of transportation | Machinery and equipment | Office equipment and others | Buildings for commercial use | Total |
| 1. Balance at the beginning of the period | ||||||
| 2. Increased in the Current Period | 2,073,264,004.72 | 31,988,613.22 | 3,846,134,511.39 | 199,000,728.36 | 68,200,328.83 | 6,218,588,186.52 |
| (1) Purchase | 344,538,698.41 | 5,321,654.83 | 1,743,394,019.29 | 27,455,948.67 | 2,120,710,321.20 | |
| (2) Transfer-in of construction in progress | 14,735,529.03 | 5,238,132.71 | 195,224,356.01 | 17,368,633.10 | 232,566,650.85 | |
| (3) Increase from business combination | 329,803,169.38 | 83,522.12 | 1,548,169,663.28 | 10,087,315.57 | 1,888,143,670.35 | |
| 3. Decreased in the Current Period | ||||||
| (1) Disposal or scrapping | 1,481,503.88 | 41,637,733.09 | 964,652.98 | 44,083,889.95 | ||
| 2. Increased in the Current Period | 1,481,503.88 | 41,637,733.09 | 964,652.98 | 44,083,889.95 | ||
| （2）other | ||||||
| 4. Balance at the end of the period | 2,417,802,703.13 | 35,828,764.17 | 5,547,890,797.59 | 225,492,024.05 | 68,200,328.83 | 8,295,214,617.77 |
| II. Accumulated Depreciation | ||||||
| 1. Balance at the beginning of the period | 357,206,206.02 | 23,887,832.93 | 1,493,030,127.66 | 93,777,434.96 | 2,428,618.22 | 1,970,330,219.79 |
| 2. Increased in the Current Period | 95,450,149.02 | 2,566,833.15 | 404,206,936.84 | 19,715,792.20 | 1,533,864.14 | 523,473,575.35 |
| (1) Accrual | 95,450,149.02 | 2,566,833.15 | 404,206,936.84 | 19,715,792.20 | 1,533,864.14 | 523,473,575.35 |
| 3. Decreased in the Current Period | 1,383,118.38 | 28,137,118.58 | 636,242.98 | 30,156,479.94 | ||
| (1) Disposal or scrapping | 1,383,118.38 | 28,137,118.58 | 636,242.98 | 30,156,479.94 | ||
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| 4. Balance at the end of the period | 452,656,355.04 | 25,071,547.70 | 1,869,099,945.92 | 112,856,984.18 | 3,962,482.36 | 2,463,647,315.20 |
| 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 | 1,965,146,348.09 | 10,757,216.47 | 3,678,790,851.67 | 112,635,039.87 | 64,237,846.47 | 5,831,567,302.57 |
| 2. Book value at the beginning of the period | 1,716,057,798.70 | 8,100,780.29 | 2,353,104,383.73 | 105,223,293.40 | 65,771,710.61 | 4,248,257,966.73 |
Ningbo Tuopu Group Co., Ltd 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
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 | 558,148,734.36 | In process |
Other Notes:
√Applicable □Non-applicable
The above factories are under construction with a full set of documents and relevant procedures are gonethrough. The process of obtaining property right certificates is expedited, some construction projectshave been accepted and recorded by competent authority, and there is no substantial obstacle in thisprocess.Disposal of Fixed Assets
√Applicable □Non-applicable
22. Construction in progress
Presentation of items
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
| Item | Balance at the End of the Period | Balance at the Beginning of the Period |
| Construction in progress | 1,990,647,471.76 | 943,993,396.96 |
| Construction supplies and materials | ||
| Total | 1,990,647,471.76 | 943,993,396.96 |
Other Notes:
□Applicable √Non-applicable
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
Construction in Progress
(1). Details of construction in progress
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
| Item | Balance at the end of the period | Balance at the beginning of the period | |||||
| Book Balance | Provision for decline in value | Book value | Book Balance | Provision for decline in value | Book value | ||
| Equipment and software installation project | 918,204,256.60 | 918,204,256.60 | 682,154,841.45 | 682,154,841.45 | |||
| Molds of the group under fabrication | 97,943,256.42 | 97,943,256.42 | 83,278,532.30 | 83,278,532.30 | |||
| Intelligent Brake project of the group headquarter | 387,660.57 | 387,660.57 | 10,760,304.53 | 10,760,304.53 | |||
| Wuhan Tuopu Project | 489,259.22 | 489,259.22 | 5,106,988.41 | 5,106,988.41 | |||
| Taizhou Tuopu Project | 43,526,245.62 | 43,526,245.62 | |||||
| Mechatronic System Phase II Project | 2,792,014.72 | 2,792,014.72 | 25,674,905.15 | 25,674,905.15 | |||
| Zhejiang Towin Project | 11,545,959.74 | 11,545,959.74 | |||||
| Sichuan Maigao Project | 27,462,126.30 | 27,462,126.30 | |||||
| Tuopu EV project | 741,854,318.80 | 741,854,318.80 | 10,706,712.33 | 10,706,712.33 | |||
| Tuopu Chassis Project | 167,456,827.87 | 167,456,827.87 | 43,776,781.13 | 43,776,781.13 | |||
| Poland plant construction project | 33,701,866.37 | 33,701,866.37 | |||||
| Tuopu Photovoltaic Technology (Beilun) Project | 6,489,718.13 | 6,489,718.13 | |||||
| Tuopu Photovoltaic Technology (Hangzhou Bay) Project | 18,914,514.91 | 18,914,514.91 | |||||
| Tuopu Photovoltaic Technology (Pinghu) project | 2,032,852.20 | 2,032,852.20 | |||||
| Other sporadic construction projects | 380,925.95 | 380,925.95 | |||||
| Total | 1,990,647,471.76 | 1,990,647,471.76 | 943,993,396.96 | 943,993,396.96 | |||
Ningbo Tuopu Group Co., Ltd. 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 | Accumulated capitalized interest amount | Including: capitalized interest amount in the current period | Capitalization rate of the interest in the current period (%) | Capital Source |
| Equipment and software installation project | 682,154,841.45 | 1,744,495,118.54 | 1,488,252,281.74 | 20,193,421.65 | 918,204,256.60 | Under construction | Self-funded or raised | |||||
| Molds of the group under fabrication | 83,278,532.30 | 78,572,942.52 | 62,602,496.63 | 1,305,721.77 | 97,943,256.42 | Under construction | Self-funded | |||||
| Intelligent Brake project of the group headquarter | 530,000,000.00 | 10,760,304.53 | 3,808,028.03 | 14,180,671.99 | 387,660.57 | 97.58 | Under construction | Self-funded or raised |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| Sichuan Maigao Project | 11,545,959.74 | 2,977,860.26 | 13,762,535.60 | 761,284.40 | As built | Self-funded | ||||||
| Mechatronic System Phase II Project | 130,000,000.00 | 25,674,905.15 | 109,753,338.31 | 127,010,877.41 | 5,625,351.33 | 2,792,014.72 | 104.18 | Under construction | Self-funded or raised | |||
| Taizhou Tuopu Project | 55,000,000.00 | 43,526,245.62 | 12,358,231.23 | 55,884,476.85 | 101.61 | As built | Self-funded | |||||
| Hunan plant construction project | 150,000,000.00 | 27,462,126.30 | 96,330,117.54 | 121,832,600.94 | 1,959,642.90 | 81.22 | As built | Self-funded or raised | ||||
| Tuopu Chassis Project | 350,000,000.00 | 43,776,781.13 | 123,680,046.74 | 167,456,827.87 | 47.84 | Under construction | Self-funded | |||||
| Tuopu EV project | 1,300,000,000.00 | 10,706,712.33 | 731,147,606.47 | 741,854,318.80 | 57.07 | Under construction | Self-funded or raised | |||||
| Tuopu Wuhan project | 5,106,988.41 | 4,617,729.19 | 489,259.22 | Under construction | Self-funded | |||||||
| Poland plant construction project | 50,000,000.00 | 33,701,866.37 | 33,701,866.37 | 67.40 | Under construction | Self-funded |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| Tuopu Photovoltaic Technology (Beilun) Project | 30,000,000.00 | 6,489,718.13 | 6,489,718.13 | 21.63 | Under construction | Self-funded | ||||||
| Tuopu Photovoltaic Technology (Hangzhou Bay) Project | 50,000,000.00 | 18,914,514.91 | 18,914,514.91 | 37.83 | Under construction | Self-funded | ||||||
| Tuopu Photovoltaic Technology (Pinghu) project | 10,000,000.00 | 2,032,852.20 | 2,032,852.20 | 20.33 | Under construction | Self-funded | ||||||
| Other sporadic construction projects | 380,925.95 | 380,925.95 | Under construction | Self-funded | ||||||||
| Total | 2,655,000,000.00 | 943,993,396.96 | 2,964,643,167.20 | 1,888,143,670.35 | 29,845,422.05 | 1,990,647,471.76 | / | / | / | / |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
(3). Provision for impairment of construction in progress in the current period
□Applicable √Non-applicable
Other Notes
□Applicable √Non-applicable
Construction materials and supplies
(4). Particulars of construction materials and supplies
□Applicable √Non-applicable
23. Productive biological assets
(1). Productive biological assets measured at cost
□Applicable √Non-applicable
(2). Productive biological assets measured at fair value
□Applicable √Non-applicable
Other Notes
□Applicable √Non-applicable
24. Oil and gas assets
□Applicable √Non-applicable
25. Right-of-use assets
√Applicable □Non-applicable
Unit： Yuan Currency： RMB
| Item | Houses and buildings | Total |
| I . Original book value | ||
| 1. Balance at the beginning of the period | 5,692,642.06 | 5,692,642.06 |
| 2. Increased in the Current Period | 66,978,720.47 | 66,978,720.47 |
| (1)New leases | 66,978,720.47 | 66,978,720.47 |
| (2) Acquisition | ||
| (3)Revaluation adjustment | ||
| 3.Decreased in the Current Period | ||
| (1)Transfer out to fixed assets | ||
| (2)Disposal | ||
| 4. Balance at the end of the period | 72,671,362.53 | 72,671,362.53 |
| II. Accumulated amortization | ||
| 1. Balance at the beginning of the period | ||
| 2. Increased in the Current Period | 13,882,969.37 | 13,882,969.37 |
| (1) Accrual | 13,882,969.37 | 13,882,969.37 |
| 3.Decreased in the Current Period | ||
| (1) Disposal | ||
| (2)Transfer out to fixed assets | ||
| 4. Balance at the end of the period | 13,882,969.37 | 13,882,969.37 |
| III. Provision for Impairment | ||
| 1. Balance at the beginning of the period | ||
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| 2. Increased in the Current Period | ||
| (1) Accrual | ||
| 3.Decreased in the Current Period | ||
| (1) Disposal | ||
| (2)Transfer out to fixed assets | ||
| 4. Balance at the end of the period | ||
| IV. Book value | ||
| 1.Book value at the end of the period | 58,788,393.16 | 58,788,393.16 |
| 2.Book value at the beginning of the period | 5,692,642.06 | 5,692,642.06 |
Ningbo Tuopu Group Co., Ltd 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 | 195,895,700.00 | 5,487,899.87 | 201,383,599.87 | |||
| (1) Purchase | 195,895,700.00 | 5,487,899.87 | 201,383,599.87 | |||
| (2) Internal research and development | ||||||
| (3) Acquisition | ||||||
| (4)Other | ||||||
| 3. Decreased in the Current Period | 17,752.42 | 24,822.48 | 42,574.90 | |||
| 3. Decreased in the Current Period | 24,822.48 | 24,822.48 | ||||
| (2)Lapsed and derecognized part | ||||||
| (3)Other | 17,752.42 | 17,752.42 | ||||
| 4. Balance at the end of the period | 899,271,722.10 | 73,310,795.38 | 1,548,222.50 | 974,130,739.98 | ||
| 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 | 15,254,604.74 | 9,235,868.15 | 309,644.50 | 24,800,117.39 | ||
| (1) Accrual | 15,254,604.74 | 9,235,868.15 | 309,644.50 | 24,800,117.39 | ||
| 3. Decreased in the Current | 3,059.79 | 3,059.79 | ||||
Ningbo Tuopu Group Co., Ltd Annual Report 2021
| Period | ||||||
| (1) Disposal | 3,059.79 | 3,059.79 | ||||
| (2)Lapsed and derecognized part | ||||||
| (3)Other | ||||||
| 4. Balance at the end of the period | 83,080,009.57 | 34,902,110.30 | 1,043,546.88 | 119,025,666.75 | ||
| 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 | 816,191,712.53 | 38,408,685.08 | 504,675.62 | 855,105,073.23 | ||
| 2.Book value at the beginning of the period | 635,568,369.69 | 42,178,416.05 | 814,320.12 | 678,561,105.86 | ||
Intangible assets formed through the R&D activities within the company at the end of the period as a percentage in the balance of intangible assets
(2). Particulars of land use rights without property right certificate granted
□Applicable √Non-applicable
Other Notes:
□Applicable √Non-applicable
Ningbo Tuopu Group Co., Ltd Annual Report 2021
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 | ||||
(2) Provision of impairment in 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 | ||
| Accrual | Disposal | |||||
| Goodwill formed by the acquisition of chassis business from Zhejiang Towin and Sichuan Maigao | 33,474,815.71 | 44,633,489.63 | 78,108,305.34 | |||
| Total | 33,474,815.71 | 44,633,489.63 | 78,108,305.34 | |||
（3）Information about the asset group or combination of asset groups where the goodwill is a part
√Applicable □Non-applicable
For the goodwill impairment test concerning Zhejiang Towin and Sichuan Maigao, the chassis businesscomprising Zhejiang Towin and Sichuan Maigao, and Tuopu Parts that ultimately carries out the sales ofthe chassis business are deemed as asset groups for impairment testing. The main cash inflows areindependent of cash inflows from other assets or asset groups.
Ningbo Tuopu Group Co., Ltd Annual Report 2021
(4) Explanation of the goodwill impairment test process, key parameters and the recognitionmethod of goodwill impairment loss
√Applicable □Non-applicable
(1) Impairment test of goodwill formed by the acquisition of chassis business of Zhejiang Towinand Sichuan MaigaoThe 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 2022 to 2026 and the stable period after 2026), 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.
（5）Impact of goodwill impairment test
√Applicable □Non-applicable
After test. the recoverable amount of the asset group containing goodwill formedfrom theacquisition of the chassis business of Zhejiang Towin and Sichuan Maigao is lower than the book valueof the asset group containing goodwill. According to the results of impairment test, the provision forgoodwill impairment is RMB 44,633,489.63.
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 | 24,093,339.78 | 10,903,828.35 | 39,823.01 | 35,764,795.79 |
| Others | 35,064,152.57 | 53,038,098.95 | 28,717,299.97 | 131,113.13 | 59,253,838.42 |
| Total | 57,679,259.94 | 77,131,438.73 | 39,621,128.32 | 170,936.14 | 95,018,634.21 |
30. Deferred income tax assets/deferred income tax liabilities
(1). Deferred income tax assets not written off
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
| 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 | 248,511,325.60 | 56,418,547.35 | 152,675,193.81 | 33,337,345.97 | |
| Unrealized profits from internal transactions | 138,020,992.35 | 33,806,756.49 | 111,200,512.26 | 25,696,889.57 | |
| Deductible loss | |||||
| Deferred income | 269,329,507.52 | 44,837,700.02 | 214,204,302.56 | 35,934,324.34 | |
| Transactional financial assets | 252,506.50 | 37,875.98 | |||
| Total | 656,114,331.97 | 135,100,879.84 | 478,080,008.63 | 94,968,559.88 | |
(2). Deferred income tax liabilities not written-off
√Applicable □Non-applicable
Ningbo Tuopu Group Co., Ltd Annual Report 2021
Unit：Yuan Currency：RMB
| 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 | 43,446,040.40 | 10,861,510.10 | 46,761,294.44 | 11,690,323.61 | |
| Changes in the fair value of other equity instrument investments | |||||
| Accelerated depreciation of fixed assets | 432,587,743.52 | 64,888,161.53 | 268,117,758.73 | 40,217,663.81 | |
| Total | 476,033,783.92 | 75,749,671.63 | 314,879,053.17 | 51,907,987.42 | |
(3) Deferred Income Tax Assets or Liabilities Listed by Net Amount after Offset
□Applicable √Non-applicable
(4).Particulars of unrecognized deferred income tax asset
□Applicable √Non-applicable
(5). The deductible losses of unrecognized deferred income tax assets will expire in the followingyears
□Applicable √Non-applicable
Other Notes:
□Applicable √Non-applicable
31.Other non-current assets
√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 | |
| Contract acquisition cost | ||||||
| Contract performance cost | ||||||
| Return cost receivable | ||||||
| Contract assets | ||||||
| Prepayments or construction equipment | 558,231,000.78 | 558,231,000.78 | 296,957,402.06 | 296,957,402.06 | ||
| Total | 558,231,000.78 | 558,231,000.78 | 296,957,402.06 | 296,957,402.06 | ||
Ningbo Tuopu Group Co., Ltd Annual Report 2021
32. Short-term loans
(1). Categories of short-term loan
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
| Item | Balance at the end of the period | Balance at the beginning of the period |
| Pledge loan | ||
| Mortgage loan | 700,000,000.00 | 400,378,888.89 |
| Guaranteed loan | ||
| Credit loan | 513,684,440.00 | |
| Unmatured interest | 906,666.66 | |
| Total | 1,214,591,106.66 | 400,378,888.89 |
(2). Short-term loans that have been late for repayment
□Applicable √Non-applicable
Significant short-term loans that have been late for repayment:
□Applicable √Non-applicable
Other Notes
□Applicable √Non-applicable
33.Transactional financial liabilities
□Applicable √Non-applicable
34.Derivative financial liabilities
□Applicable √Non-applicable
35. Notes payable
(1).Presentation of notes payable
√Applicable □Non-applicable
Unit： Yuan Currency： RMB
| Category | Balance at the end of the period | Balance at the beginning of the period |
| Commercial acceptance bill | ||
| Bank acceptance bill | 2,333,423,633.37 | 1,471,327,551.91 |
| Total | 2,333,423,633.37 | 1,471,327,551.91 |
At the end of the current period, total amount of notes payable that have not yet been paid is 0 Yuan.
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) | 3,189,803,122.51 | 1,853,269,995.18 |
| 1-2 years (including 2 years) | 25,672,355.16 | 31,986,841.31 |
| 2-3 years (including 3 years) | 5,382,102.73 | 7,239,675.36 |
| Over 3 years | 4,896,484.10 | 5,758,604.32 |
| Total | 3,225,754,064.50 | 1,898,255,116.17 |
Ningbo Tuopu Group Co., Ltd Annual Report 2021
(2). Important accounts payable aged over 1 year
□Applicable √Non-applicable
Other Notes
□Applicable √Non-applicable
37. Advance receipts
(1). Presentation of advance receipts
□Applicable √Non-applicable
(2). Important accounts payable aged over 1 year
□Applicable √Non-applicable
Other Notes
□Applicable √Non-applicable
38. Contract liabilities
(1). Particulars of contract liabilities
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
| Item | Balance at the end of the period | Balance at the beginning of the period |
| Within 1 year (including 1 year) | 14,378,979.25 | 11,522,861.56 |
| 1-2 years (including 2 years) | 565,925.37 | 6,673,269.49 |
| 2-3 years (including 3 years) | 3,937,527.97 | 838,769.34 |
| Over 3 years | 3,693,130.69 | 3,650,760.02 |
| Total | 22,575,563.28 | 22,685,660.41 |
(2). The amount and reason for significant change in the book value during the reporting period
□Applicable √Non-applicable
Other Notes:
□Applicable √Non-applicable
Ningbo Tuopu Group Co., Ltd. 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 | 1,275,739,215.87 | 1,220,809,759.36 | 193,107,565.98 |
| II. Demission benefits - defined contribution scheme | 114,252.20 | 73,125,876.23 | 72,580,809.90 | 659,318.53 |
| III. Dismissal benefits | ||||
| IV. Other benefits due within 1 year | ||||
| Total | 138,292,361.67 | 1,348,865,092.10 | 1,293,390,569.26 | 193,766,884.51 |
(2) . Presentation of short-term remuneration
√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. Wages or salaries, bonuses, allowances and subsidies | 135,935,768.57 | 1,125,251,900.22 | 1,069,287,604.06 | 191,900,064.73 |
| 2. Staff welfare | 106,560.80 | 55,647,563.22 | 55,640,474.90 | 113,649.12 |
| 3. Social insurance contributions | 204,154.27 | 32,655,735.28 | 32,430,864.12 | 429,025.43 |
| Including: medical insurance premium | 159,475.74 | 29,000,265.30 | 28,796,753.42 | 362,987.62 |
| Work injury insurance premium | -1,680.08 | 3,433,116.26 | 3,381,983.84 | 49,452.34 |
| Birth insurance premium | 46,358.61 | 222,353.72 | 252,126.86 | 16,585.47 |
| 4. Housing funds | 110,395.00 | 50,819,692.24 | 50,781,609.44 | 148,477.80 |
| 5. Labor union and education funds | 1,821,230.83 | 11,364,324.91 | 12,669,206.84 | 516,348.90 |
| 6. Short-term paid absences | ||||
| 7. Short-term profit sharing plan | ||||
| Total | 138,178,109.47 | 1,275,739,215.87 | 1,220,809,759.36 | 193,107,565.98 |
Ningbo Tuopu Group Co., Ltd Annual Report 2021
(3). Presentation of defined contribution plan
√Applicable □Non-applicable
Unit： Yuan Currency： RMB
| Item | Balance at the beginning of the period | Increased in the current period | Decreased in the current period | Balance at the end of the period |
| 1. Basic pension insurance premium | 104,394.92 | 70,149,797.68 | 69,628,771.72 | 625,420.88 |
| 2. Unemployment insurance premium | 9,857.28 | 2,976,078.55 | 2,952,038.18 | 33,897.65 |
| 3. Corporate annuity payment | ||||
| Total | 114,252.20 | 73,125,876.23 | 72,580,809.90 | 659,318.53 |
Other Notes
□Applicable √Non-applicable
40. Taxes payable
√Applicable □Non-applicable
Unit： Yuan Currency： RMB
| Item | Balance at the end of the period | Balance at the beginning of the period |
| VAT | 59,457,554.67 | 37,476,861.48 |
| Consumption tax | ||
| Business tax | ||
| Enterprise Income Tax | 47,368,757.82 | 13,247,733.04 |
| Individual income tax | 1,681,521.35 | 1,126,989.40 |
| Urban Maintenance and Construction Tax | 2,279,742.18 | 2,555,965.45 |
| Property tax | 18,831,478.02 | 17,409,122.91 |
| Education surcharges | 1,001,931.95 | 1,124,111.62 |
| Local education surcharges | 667,098.49 | 748,551.75 |
| Land use tax | 14,114,234.70 | 8,463,193.68 |
| Environmental protection tax | 629.00 | 454.86 |
| Disabled security fund | 1,666,524.94 | 313,642.20 |
| Special funds for water conservancy construction | 30,880.13 | 8,547.00 |
| Stamp duty | 1,002,092.56 | 390,129.90 |
| Total | 148,102,445.81 | 82,865,303.29 |
41. Other payables
Presentation of items
√Applicable □Non-applicable
Unit： Yuan Currency： RMB
| Item | Balance at the end of the period | Balance at the beginning of the period |
| Interest Payable | ||
| Dividends Payable | ||
| Other payables | 15,363,015.51 | 15,722,105.17 |
| Total | 15,363,015.51 | 15,722,105.17 |
Other Notes:
□Applicable √Non-applicable
Ningbo Tuopu Group Co., Ltd Annual Report 2021
Interest Payable
(1). Presentation by category
□Applicable √Non-applicable
Dividends payable
(2). Presentation by category
□Applicable √Non-applicable
Other payables
(1) Other payables presented by nature of funds
√Applicable □Non-applicable
Unit： Yuan Currency： RMB
| Item | Balance at the end of the period | Balance at the beginning of the period |
| Security deposits | 6,556,518.94 | 8,120,598.94 |
| Others | 8,806,496.57 | 7,601,506.23 |
| Total | 15,363,015.51 | 15,722,105.17 |
(2). Significant other payables aged over 1 year
□Applicable √Non-applicable
Other Notes:
□Applicable √Non-applicable
42. Held-for-sale liabilities
□Applicable √Non-applicable
43. Non-current liabilities due within 1 year
√Applicable □Non-applicable
Unit： Yuan Currency： RMB
| 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 | 19,018,076.84 | 3,805,229.64 |
| Total | 19,018,076.84 | 3,805,229.64 |
44. Other current liabilities
Particulars of other current liabilities
√Applicable □Non-applicable
Unit： Yuan Currency： RMB
| Item | Balance at the end of the period | Balance at the beginning of the period |
| Short-term bonds payable | ||
| Return payment payable | ||
| Prepaid and deferred output tax | 1,498,582.75 | 1,507,896.52 |
| Financial lease loan | 192,409,691.31 | |
| Total | 193,908,274.06 | 1,507,896.52 |
Ningbo Tuopu Group Co., Ltd Annual Report 2021
Changes in short-term bonds payable:
□Applicable √Non-applicable
Other Notes:
□Applicable √Non-applicable
45. Long-term loans
(1). Category of long-term loans
√Applicable □Non-applicable
Unit： Yuan Currency： RMB
| Item | Balance at the end of the period | Balance at the beginning of the period |
| Pledge loans | ||
| Mortgage loans | 310,000,000.00 | |
| Guaranteed loans | ||
| Credit loans | ||
| Total | 310,000,000.00 |
Other notes, 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 other 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 | 59,703,191.10 | 5,692,642.06 |
| Less: Lease liabilities due within one year | -19,018,076.84 | -3,805,229.64 |
| Total | 40,685,114.26 | 1,887,412.42 |
Ningbo Tuopu Group Co., Ltd Annual Report 2021
48. Long-term payables
Presentation of items
□Applicable √Non-applicable
Other Notes:
□Applicable √Non-applicable
Long-term payables
(1). Long-term payables presented by the nature of payments
□Applicable √Non-applicable
Special payables
(2). Special payables presented by the nature of payments
□Applicable √Non-applicable
49. Long-term payroll payable
□Applicable √Non-applicable
50. Estimated liabilities
□Applicable √Non-applicable
Ningbo Tuopu Group Co., Ltd. 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 | 74,801,216.00 | 19,676,011.04 | 269,329,507.52 | |
| Total | 214,204,302.56 | 74,801,216.00 | 19,676,011.04 | 269,329,507.52 | / |
Items related to government grants:
√Applicable □Non-applicable
Unit： Yuan Currency： RMB
| 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 shock absorbing products | 2,242,000.00 | 472,000.00 | 1,770,000.00 | Assets-related | |||
| Automobile composite fiber production project | 441,666.67 | 99,999.96 | 341,666.71 | Assets-related | |||
| Tuopu Intelligent Mechatronic System Industrial Park Project | 25,520,238.10 | 1,385,714.25 | 24,134,523.85 | Assets-related | |||
| Production line transformation project of high-performance shock absorbing system for cars | 2,756,190.00 | 551,238.00 | 2,204,952.00 | Assets-related | |||
| Production and application technology transformation project of lightweight materials for vehicles | 4,375,000.00 | 875,000.00 | 3,500,000.00 | Assets-related | |||
| Technological Transformation Project of Automobile High-Performance Shock Absorbing System | 7,130,088.73 | 891,261.09 | 6,238,827.64 | Assets-related |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| Technological Transformation Project of Automobile interior &exterior system | 6,877,766.12 | 815,466.48 | 6,062,299.64 | Assets-related | |||
| Technological Transformation Project of Automobile Lightweight Control Arms | 7,003,001.06 | 875,375.13 | 6,127,625.93 | Assets-related | |||
| Technological Transformation Project of Automobile Lightweight Parts Production Line | 7,322,051.57 | 915,256.45 | 6,406,795.12 | Assets-related | |||
| Technological Transformation Project of Automobile High-Performance Shock Absorbing System | 1,723,800.00 | 172,380.00 | 1,551,420.00 | Assets-related | |||
| Technological transformation project of lightweight auto parts | 1,875,120.00 | 187,512.00 | 1,687,608.00 | Assets-related | |||
| Digital workshop project with an annual capacity of 120,000 sets of intelligent braking systems | 3,696,000.00 | 345,000.00 | 393,393.10 | 3,647,606.90 | Assets-related | ||
| Auto parts production and industrial automation projects | 80,166,861.65 | 4,500,000.00 | 75,666,861.65 | 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 | 1,000,000.10 | 7,790,289.83 | Assets-related | |||
| Technological Transformation Project of Automobile High-Performance Shock Absorbing System | 5,471,561.66 | 149,600.00 | 559,226.26 | 5,061,935.40 | Assets-related | ||
| Shenyang Tuopu Auto Parts Base Project | 1,298,611.20 | 583,333.32 | 715,277.88 | Assets-related | |||
| Intelligent factory construction project with an annual capacity of 2 million sets of automotive trimming system | 705,833.31 | 110,000.00 | 595,833.31 | Assets-related | |||
| Technological transformation project of car roof, carpet assembly and other trimming system with an annual capacity of 1.6 million sets | 990,000.00 | 165,000.00 | 825,000.00 | Assets-related |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| Auto Parts Production Project of Liudong New District | 1,362,511.63 | 84,279.07 | 1,278,232.56 | Assets-related | |||
| Automobile Fabric Production Line Project | 3,686,810.05 | 533,032.78 | 3,153,777.27 | Assets-related | |||
| Pinghu Tuopu Auto Parts Production Project | 12,733,600.00 | 795,850.00 | 11,937,750.00 | Assets-related | |||
| Production line project with an annual capacity of 300,000 sets of related auto parts | 661,542.22 | 86,798.28 | 574,743.94 | Assets-related | |||
| Automobile chassis parts project with an annual capacity of 500,000 sets | 4,507,688.04 | 103,229.49 | 4,404,458.55 | Assets-related | |||
| Tuopu Chassis Auto Parts Industry Base Project | 8,000,000.00 | 67,796.60 | 7,932,203.40 | Assets-related | |||
| Auxiliary project outside the factory | 6,485,266.62 | 392,165.00 | 6,093,101.62 | Assets-related | |||
| Hunan Xiangtan Auto Parts Industry Base Project | 2,000,000.00 | 4,000,000.00 | 6,000,000.00 | Assets-related | |||
| Relocation project with an annual capacity of 300,000 sets of automotive trimming system | 774,156.58 | 110,593.80 | 663,562.78 | 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 | 378,110.76 | 1,165,491.32 | Assets-related | |||
| Technological transformation project of automobile suspension chassis production line with annual capacity of 300,000 sets | 1,686,081.82 | 289,187.22 | 1,396,894.60 | Assets-related | |||
| Passenger vehicle chassis suspension components project with an annual capacity of 500,000 sets | 2,376,963.52 | 326,052.96 | 2,050,910.56 | Assets-related | |||
| Technological transformation project of automobile chassis lightweight production line | 1,000,500.00 | 27,040.52 | 973,459.48 | Assets-related | |||
| Technological transformation project of automobile chassis lightweight | 10,458,600.00 | 180,320.67 | 10,278,279.33 | Assets-related |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| components | |||||||
| Technological transformation project of NEVs front and rear axle assembly | 20,000,000.00 | 333,333.33 | 19,666,666.67 | Assets-related | |||
| Subsidies for land leveling | 7,729,116.00 | 105,516.94 | 7,623,599.06 | Assets-related | |||
| Technological transformation project of Automobile High-Performance Shock Absorbing System with an annual capacity of 2,000,000 sets | 6,500,000.00 | 270,833.34 | 6,229,166.66 | Assets-related | |||
| Technological transformation project of automotive NVH interior trim parts system | 2,889,100.00 | 120,379.20 | 2,768,720.80 | Assets-related | |||
| Technological transformation project of automotive lightweight components | 6,500,000.00 | 270,833.33 | 6,229,166.67 | Assets-related | |||
| Technological transformation project of automotive lightweight components an annual capacity of 3,000,000 sets | 6,500,000.00 | 270,833.33 | 6,229,166.67 | Assets-related | |||
| Government subsidies for technological transformation of the real economy in 2021 | 5,188,000.00 | 5,188,000.00 | Assets-related | ||||
| Technological transformation project of automotive suspension chassis production line with an annual capacity of 500,000 sets | 3,541,300.00 | 377,668.28 | 3,163,631.72 | Assets-related | |||
| Total | 214,204,302.56 | 74,801,216.00 | 19,676,011.04 | 269,329,507.52 |
Ningbo Tuopu Group Co., Ltd Annual Report 2021
Other Notes:
√Applicable □Non-applicable
1. Under the "Notice of Ningbo Economic and Information Commission on Announcement of 2016As-built Technical Transformation Projects in Ningbo" Yong Jing Xin Ji Gai [2016] No. 95, ascirculated by Ningbo Economic and Information Commission, the Company received the grants at RMB4,720,000.00 for machine substitution for human project with an annual capacity of 700,000 sets ofshock absorbing products. As of September 30, 2015, the said project was substantially completed andput into production operation. Amortized by the depreciation years (10 years) corresponding to themachinery and equipment purchased using the above grants, as of December 31, 2021, there was aremaining sum of RMB 1,770,000.0 to be amortized over the remaining years.
2. Under the “Notice on releasing incentives for 2016 Ningbo Strategic Emerging IndustryDevelopment Projects” Yong Cai Zheng Fa 【2016】 No.584, as circulated by Ningbo Finance Bureau,the Company received the grants at RMB 1,000,000.00 for automobile composite fiber productionproject in September 2016. As of September 30, 2015, the said project was substantially completed andput into production operation. Amortized by the depreciation years (10 years) corresponding to themachinery and equipment transformed using the above grants, as of December 31, 2021, there was aremaining sum of RMB 341,666.71 to be amortized over the remaining years.
3. The Company received two grants at RMB 17,000,000.00 and RMB 10,000,000.00 respectivelyin September 2016 and October 2020, in a gross sum of RMB 27,000,000.00, and used the sums forTuopu Intelligent Mechatronic System Industrial Park Project. In May 2019, this project was completedstep by step and put into production operation. Amortized by the depreciation years (20 years)corresponding to the buildings and structures constructed using the above grants, as of December 31,2021, there was a remaining sum of RMB 24,134,523.85 to be amortized over the remaining years.
4. Under the “Notice on releasing the subsidies for the first and second batches of district-levelpartial as-built projects of 2017 Industrial Investment (Technical Transformation) in Ningbo” Lun JingXin 【2018】 No.55, as circulated by Beilun District Finance Bureau of Ningbo, the Company receivedthe automobile composite fiber production project. The Company received the grants at RMB4,409,904.0 for automobile composite fiber production project in September 2018. As of January 2018,the said project was substantially completed and put into production operation. Amortized by thedepreciation years corresponding to the machinery and equipment purchased using the above grants, asof December 31, 2021, there was a remaining sum of RMB 2,204,952.0 to be amortized over theremaining years.
5. Under the “Notice on releasing the subsidies for the first and second batches of district-levelpartial as-built projects of 2017 Industrial Investment (Technical Transformation) in Ningbo” Lun JingXin 【2018】 No.55, as circulated by Beilun District Finance Bureau of Ningbo, the Company receivedthe grants at RMB 7,000,000.00 for production and application technology transformation project oflightweight materials for vehicles. As of January 2018, the said project was substantially completed andput into production operation. Amortized by the depreciation years corresponding to the machinery andequipment purchased using the above grants, as of December 31, 2021, there was a remaining sum ofRMB 3,500,000.0 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 RMB1,638,992.00 respectively in February 2019, November 2019 and July 2020 respectively, and used thesums for Technological Transformation Project of Automobile High-Performance Shock AbsorbingSystem. As of December 2018, the said project was substantially completed and put into productionoperation. Amortized by the depreciation years corresponding to the machinery and equipmenttransformed using the above grants, as of December 31, 2021, there was a remaining sum of RMB6,238,827.64 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 RMB1,539,712.00 respectively in February 2019, December 2019 and July 2020 respectively, and used thesums for Technological Transformation Project of Automobile interior &exterior System. As of June2019, the said project was substantially completed and put into production operation. Amortized by thedepreciation years corresponding to the machinery and equipment transformed using the above grants, asof December 31, 2021, there was a remaining sum of RMB 6,062,299.64 to be amortized over theremaining years.
Ningbo Tuopu Group Co., Ltd Annual Report 2021
8. The Company received three grants at RMB 2,532,000.00, RMB 3,890,000.00 and RMB1,663,312.00 respectively in February 2019, November 2019 and July 2020 respectively, and used thesums for Technological Transformation Project of Automobile Lightweight Control Arms. As ofDecember 2018, the said project was substantially completed and put into production operation.Amortized by the depreciation years corresponding to the machinery and equipment transformed usingthe above grants, as of December 31, 2021, there was a remaining sum of RMB 6,127,625.93 to beamortized over the remaining years.
9. The Company received three grants at RMB 2,544,000.00, RMB 4,130,000.00 and RMB1,769,472.00 respectively in February 2019, November 2019 and July 2020 respectively, and used thesums for Technological Transformation Project of Automobile Lightweight Parts Production Line. As ofDecember 2018, the said project was substantially completed and put into production operation.Amortized by the depreciation years corresponding to the machinery and equipment transformed usingthe above grants, as of December 31, 2021, there was a remaining sum of RMB 6,406,795.12 to beamortized over the remaining years.
10. The Company received the grants at RMB 1,723,800.00 in September 2020 and used the sumsfor Technological Transformation Project of Automobile High-Performance Shock Absorbing System.As of January 2021, the said project was substantially completed and put into production operation.Amortized by the depreciation years corresponding to the machinery and equipment transformed usingthe above grants, as of December 31, 2021, there was a remaining sum of RMB 1,551,420.00 to beamortized over the remaining years.
11. The Company received the grants at RMB 1,875,120.00 in September 2020 and used the sumsfor technological transformation project of lightweight auto parts. As of January 2021, the said projectwas substantially completed and put into production operation. Amortized by the depreciation yearscorresponding to the machinery and equipment transformed using the above grants, as of December 31,2021, there was a remaining sum of RMB 1,687,608.00 to be amortized over the remaining years.
12、As of January 2021, the said project was substantially completed and put into productionoperation. Amortized by the depreciation years corresponding to the machinery and equipmenttransformed using the above grants, as of December 31, 2021, there was a remaining sum of RMB3,647,606.90 to be amortized over the remaining years.
13. Tuopu Mechatronic System received two grants at RMB 60,000,000.00 and RMB30,000,000.00 in August 2017 and December 2018 and used the sums for auto parts production andindustrial automation projects. The said project was substantially completed and put into productionoperation in 2018. Amortized by the depreciation years (20 years) corresponding to the buildings andstructures constructed using the above grants, as of December 31, 2021, there was a remaining sum ofRMB 75,666,861.65 to be amortized over the remaining years.
14. Tuopu Mechatronic System received two grants at RMB 9,462,800.00 and RMB 537,200.00in October 2019 and July 2020 and used the sums for technological transformation project for theproduction line of automotive lightweight alloy parts with an annual capacity of 300,000 sets. As ofDecember 2018, the said project was substantially completed and put into production operation.Amortized by the depreciation years corresponding to the machinery and equipment transformed usingthe above grants, as of December 31, 2021, there was a remaining sum of RMB 8,790,289.83 to beamortized over the remaining years.
15、Tuopu Automotive Electronics received two grants at RMB 5,564,300.00, 149,600.00 inNovember 2020 and November 2021 respectively for production project of automotivehigh-performance shock absorbing system. As of November 2020, the said project was substantiallycompleted and put into production operation. Amortized by the depreciation years corresponding to themachinery and equipment transformed using the above grants, as of December 31, 2021, there was aremaining sum of RMB 5,061,935.40 to be amortized over the remaining years.
16. Tuopu Mechatronic System received two grants at RMB 1,000,000.00 and RMB 1,000,000.00in October 2018 and August 2020 respectively, in a gross sum of RMB 2,000,000.00, and used the sumsfor Shenyang Tuopu Auto Parts Base Project. The said project was completed and put into operation in2013. Amortized by the depreciation years corresponding to the fixed assets using the above grants, as ofDecember 31, 2021, there was a remaining sum of RMB 715,277.88 to be amortized over the remainingyears.
17. Under the “Notice on issuing special funds for information and industrial development ofGuangxi Zhuang Autonomous Region in 2017” Gui Cai Gong Jiao 【2017】 No.57, as circulated byDepartment of Finance of Guangxi Zhuang Autonomous Region, Liuzhou Tuopu received the
Ningbo Tuopu Group Co., Ltd Annual Report 2021
technological transformation project funds at RMB 1,100,000.00 and used the sums for Intelligentfactory construction project with an annual capacity of 2 million sets of automotive trimming system inAugust 2017. As of May 31, 2017, the said project was substantially completed and put into productionoperation. Amortized by the depreciation years corresponding to the machinery and equipmentpurchased using the above funds, as of December 31, 2021, there was a remaining sum of RMB595,833.31 to be amortized over the remaining years.
18. Under the “Notice on issuing the first batch of Liuzhou enterprise support funding projectinvestment plans in 2017” Liu Gong Xin Tong 【2017】 No.164, as circulated by Liuzhou Industry andInformation Technology Commission and Liuzhou Finance Bureau, Liuzhou Tuopu received thepotential exploitation transformation funds at RMB 1,650,000.00 and used the sums for technologicaltransformation project of car roof, carpet assembly and other trimming system with an annual capacityof 1.6 million sets in December 2017. As of December 26, 2016, the said project was substantiallycompleted and put into production operation. Amortized by the depreciation years (10 years)corresponding to the machinery and equipment purchased using the above funds, as of December 31,2021, there was a remaining sum of RMB 825,000.00 to be amortized over the remaining years.
19. Liuzhou Tuopu received the grants at RMB 1,510,000.00 and used the sums for Auto PartsProduction Project of Liudong New District in April 2019. As of February 2017, the said project wassubstantially completed and put into production operation. Amortized by the depreciation yearscorresponding to the buildings and structures constructed and acquired using the above grants, as ofDecember 31, 2021, there was a remaining sum of RMB 1,278,232.56 to be amortized over theremaining years.
20. Wuhan Tuopu received the grants at RMB 427,000.00,RMB 1,767,000.00 and RMB1,910,000.00 in January 2019, April 2020 and June 2020 respectively, and used the sums for FabricProduction Line Project. As of November 2017, the said project was substantially completed and putinto production operation. Amortized by the depreciation years corresponding to the machinery andequipment purchased using the above grants, as of December 31, 2021, there was a remaining sum ofRMB 3,153,777.27 to be amortized over the remaining years.
21. Pinghu Tuopu received two grants at RMB 7,235,000.00 and RMB 7,235,000.00 in January2016 and May 2020 respectively, in a gross sum of RMB 14,470,000.00, and used the sums forAutomotive Trimming System Production Project. As of January 2017, the said project was substantiallycompleted and put into production operation. Amortized by the depreciation years (20 years)corresponding to the buildings and structures constructed and acquired using the above grants, as ofDecember 31, 2021, there was a remaining sum of RMB 11,937,750.00to be amortized over theremaining years.
22. Under the “Request for application of special funds for Technological Transformation andTransformation and Upgrading of Sichuan Province in 2015” Sui Jing Xin 【2015】 No.28, as circulatedby Suining Industrial and Information Technology Commission and Suining Finance Bureau, SichuanMaigao received the technological transformation and upgrading funds in October 2015 at RMB1,110,000.00, and used the sums for production line project with an annual capacity of 300,000 sets ofrelated auto parts. As of October 2015, the said project was substantially completed and put intoproduction operation. Amortized by the depreciation years (20 years) corresponding to the purchasedmachinery and equipment and constructed plants using the above funds, as of December 31, 2021, therewas a remaining sum of RMB 574,743.94 to be amortized over the remaining years.
23. Under the “Investment Agreement” Nr. B-ZS-GY/(2013)4 signed between and by AnjuIndustrial Concentration Development Committee of Suining and Zhejiang Fortuna Auto Parts Co., Ltd.On January 28, 2013, Sichuan Maigao received land subsidies at RMB 5,032,438.00 in December 2015and used the sums for Automobile chassis parts project with an annual capacity of 500,000 sets. As ofDecember 2015, the said project was substantially completed and put into production operation.Amortized by the depreciation years (48.75 years) corresponding to the land subsidies, as of December31, 2021, there was a remaining sum of RMB 4,404,458.55 to be amortized over the remaining years.
24. Tuopu Chassis received the grants at RMB 8,000,000.00 in September 2020 and used the sumsfor Tuopu Chassis Auto Parts Industry Base Project. As of August 2021, this project was substantiallycompleted and put into production. According to the special land grants, the amortization shall be madeover the remaining useful life of the land, as of December 31, 2021, there was a remaining sum of RMB7,932,203.40 to be amortized over the remaining years.
25. Under the investment contract made between Yantai Tuopu and the Investment PromotionBureau of Yantai Economic and Technological Development Zone, Yantai Tuopu received five grants at
Ningbo Tuopu Group Co., Ltd Annual Report 2021
RMB 2,330,000.00, RMB 290,000.00, RMB 301,458.00, RMB 1,810,000.00 and RMB 2,268,533.00 inJuly 2018, May 2019, July 2019, December 2019 and September 2020 respectively, and used the sumsfor auxiliary project outside the factory. As of July 2018, the said project was substantially completedand put into production operation. Amortized by the depreciation years corresponding to the buildingsand structures using the above grants, as of December 31, 2021, there was a remaining sum of RMB6,093,101.62 to be amortized over the remaining years.
26、Tuopu Chassis received two grants at RMB 2,000,000.00 and RMB 4,000,000.00 in December2020 and December 2021 respectively for Hunan Xiangtan Auto Parts Industry Base Project. As ofDecember 31, 2021, this project has not yet been completed and no amortization is made in this period.
27. Under the “Notice on issuing special fiscal funds for provincial industrial and informationdevelopment of Linhai in 2018” (Lin Cai Qi [2018]30), as circulated by Linhai Finance Bureau andLinhai 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 andDecember 2019, and used the sums for relocation project with an annual capacity of 300,000 sets ofautomotive trimming system. As of January 2018, the said project was substantially completed and putinto production operation. Amortized by the depreciation years corresponding to the machinery andequipment purchased using the above grants, as of December 31, 2021, there was a remaining sum ofRMB 663,562.78 to be amortized over the remaining years.
28. Under the “Review comment on the second batch of technological renovation and industrial andinformation project grants for industrial enterprises in 2016”, as circulated by Wuxi County People’sGovernment and Wuyi County Economic and Commercial Bureau, Zhejiang Towin received thetechnological transformation and upgrading funds at RMB 3,056,045.00 in December 2016, and usedthe sums for technological transformation project for the production line of automobile front and rearaxle with an annual output of 200,000 sets. As of December 2016, the said project was substantiallycompleted and put into production operation. Amortized by the depreciation years corresponding to themachinery and equipment purchased using the above funds, as of December 31, 2021, there was aremaining sum of RMB 1,165,491.32 to be amortized over the remaining years.
29. Under the “Review comment on the first batch of technological renovation and industrial andinformation project grants for industrial enterprises in 2017”, as circulated by Wuxi County People’sGovernment and Wuyi County Economic and Commercial Bureau, Zhejiang Towin received thecounty-level robot purchase grants at RMB 448,715.00 in May 2017, and used the sums forTechnological transformation project of automobile suspension chassis production line with annualcapacity of 300,000 sets. As of May 2017, the said project was substantially completed and put intoproduction operation. Amortized by the depreciation years corresponding to the machinery andequipment purchased using the above funds, as of December 31, 2021, there was a remaining sum ofRMB 225,559.32 to be amortized over the remaining years.Under the “Notice on appropriating specialfiscal funds (Investment and Development) for provincial industrial and information development in2016”, as circulated by Wuyi County Economic and Commercial Bureau and Wuyi County FinanceBureau, Zhejiang Towin received technological transformation funds at RMB 2,133,330.00 in December2017 and used the sums for technological transformation project of automobile suspension chassisproduction line with annual capacity of 300,000 sets. As of January 2018, the said project wassubstantially completed and put into production operation. Amortized by the depreciation yearscorresponding to the machinery and equipment purchased using the above funds, as of December 31,2021, there was a remaining sum of RMB1,171,335.28 to be amortized over the remaining years.
30. Zhejiang Towin received technological transformation funds at RMB 2,539,990.00 forpassenger vehicle chassis suspension project with an annual capacity of 500,000 sets in July 2020. As ofJuly 2020, the said project was substantially completed and put into production operation. Amortized bythe depreciation years corresponding to the machinery and equipment purchased using the above funds,as of December 31, 2021, there was a remaining sum of RMB 2,050,910.56 to be amortized over theremaining years.
31、The company received one grant at RMB 1,000,500.00 in October 2021 for the technologicaltransformation project of automotive chassis lightweight system production lines. As of October 2021,the said project was substantially completed and put into production operation.Amortized by thedepreciation years corresponding to the machinery and equipment transformed using the above grants, asof December 31, 2021, there was a remaining sum of RMB 973,459.48 to be amortized over theremaining years.
Ningbo Tuopu Group Co., Ltd Annual Report 2021
32. The Company received one grant at RMB 10,458,600.00 in November 2021 for thetechnological transformation project of automotive chassis lightweight components. As of October 2021,the said project was substantially completed and put into production operation.Amortized by thedepreciation years corresponding to the machinery and equipment transformed using the above grants, asof December 31, 2021, there was a remaining sum of RMB 10,278,279.33 to be amortized over theremaining years.
33. Tuopu Automotive Electronics Co., Ltd. received one grant at RMB 20,000,000.00 inNovember 2021 for the technological transformation project of NEVs front and rear axle assembly. Asof November 2021, the said project was substantially completed and put into productionoperation.Amortized by the depreciation years corresponding to the machinery and equipmenttransformed using the above grants, as of December 31, 2021, there was a remaining sum of RMB19,666,666.67 to be amortized over the remaining years.
34、Tuopu Automotive Electronics Co., Ltd. received one grant at RMB 7,729,116.00 in May 2021for land leveling. According to the special land grant, the amortization should be made over theremaining useful life of the land, as of December 31, 2021, there was a remaining sum of RMB7,623,599.06 to be amortized over the remaining years.
35、Tuopu Automotive Electronics Co., Ltd. received one grant at RMB 6,500,000.00 in August2021 for the production project of automotive high-performance shock absorbing system with an annualcapacity of 2,000,000 sets. As of August 2021, the said project was substantially completed and put intoproduction operation.Amortized by the depreciation years corresponding to the machinery andequipment transformed using the above grants, as of December 31, 2021, there was a remaining sum ofRMB 6,229,166.66 to be amortized over the remaining years.
36、Tuopu Automotive Electronics Co., Ltd. received one grant at RMB 2,899,100.00 in August2021 for the technological transformation project of automotive NVH interior trim functional parts. Asof August 2021, the said project was substantially completed and put into productionoperation.Amortized by the depreciation years corresponding to the machinery and equipmenttransformed using the above grants, as of December 31, 2021, there was a remaining sum of RMB2,768,720.80 to be amortized over the remaining years.
37、Tuopu Automotive Electronics Co., Ltd. received one grant at RMB 6,500,000.00 0 in August2021 for the technological transformation project of automotive lightweight parts. As of August 2021,the said project was substantially completed and put into production operation.Amortized by thedepreciation years corresponding to the machinery and equipment transformed using the above grants, asof December 31, 2021, there was a remaining sum of RMB 6229,166.67 to be amortized over theremaining years.
38、Tuopu Automotive Electronics Co., Ltd. received one grant at RMB 6,500,000.00 for thetechnological transformation project of automotive lightweight parts with an annual capacity of3,000,000 sets. As of August 2021, the said project was substantially completed and put into productionoperation.Amortized by the depreciation years corresponding to the machinery and equipmenttransformed using the above grants, as of December 31, 2021, there was a remaining sum of RMB6,229,166.67 to be amortized over the remaining years.
39、Taizhou Tuopu received one grant at RMB 5,188,000.00 in November 2021 for thetechnological transformation project of real economy in 2021. As of December 31, 2021, this project hasnot yet been completed and no amortization is made in this period.
40、Zhejiang Towin received one grant at RMB 3,541,300.00 in February 2021 for thetechnological transformation project of automotive suspension chassis with an annual capacity of500,000 sets. As of February 2021, the said project was substantially completed and put into productionoperation.Amortized by the depreciation years corresponding to the machinery and equipmenttransformed using the above grants, as of December 31, 2021, there was a remaining sum of RMB3,163,631.72 to be amortized over the remaining years.
52. Other non-current liabilities
□Applicable √Non-applicable
53. Equity
√Applicable □Non-applicable
Ningbo Tuopu Group Co., Ltd Annual Report 2021
Unit： Yuan Currency： RMB
| Balance at the beginning of the period | Increased or decreased amount in this period (+/-) | Balance at the end of the period | |||||
| New issue | Bonus issue | Shares converted from capital reserves | Others | Subtotal | |||
| Total shares | 1,054,987,749.00 | 47,058,823.00 | 47,058,823.00 | 1,102,046,572.00 | |||
Other notes:
Under the resolutions of the 20th session of the Third Board of Directors held on May 15, 2020 andthe 2019 Annual General Meeting held on June 8, 2020, and as approved by CSRC [2020] No. 1982"Approval on the Private Offering of Shares by Ningbo Tuopu Group Co., Ltd.", the private offering ofA shares is 47,058,823 shares, and the face value per share is RMB 1.00. Subject to the change, theshare capital is RMB 1,102,046,572.00.
54. Other equity instruments
(1). Basic information of other financial instruments such as preferred stocks and perpetualbonds issued at the end of the period
□Applicable √Non-applicable
(2). Changes in financial instruments such as preferred stocks and perpetual bonds issued at theend of the period
□Applicable √Non-applicable
Changes in other equity instruments during the current period, the reason for the changes, and the basisfor related accounting treatments:
□Applicable √Non-applicable
Other Notes
□Applicable √Non-applicable
55.Capital reserve
√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 |
| 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 |
Other notes, including changes in the current period and note to the reason for the changes:
Under the resolutions of the 20th session of the Third Board of Directors held on May 15, 2020 andthe 2019 Annual General Meeting of Shareholders held on June 8, 2020, and as approved by the ChinaSecurities Regulatory Commission [ 2020] No. 1982 " Approval on the Private Offering of Shares byNingbo Tuopu Group Co., Ltd.", the private offering of A shares is 47,058,823 shares, and the facevalue per share is RMB 1.00, the issue price per share is RMB 42.50, the total amount of funds raised isRMB 1,999,999,977.50, netting of the issue expenses at RMB 21,582,130.76, the net amount of fundsraised is RMB 1,978,417,846.74, including additional shares at RMB 47,058,823.00 and additional sharecapital at RMB 1,931,359,023.74.
56.Treasury stocks
□Applicable √Non-applicable
Ningbo Tuopu Group Co., Ltd 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 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 | -4,353,713.45 | -4,347,227.73 | -6,485.72 | -24,978,896.47 | |||
| 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 | ||||||||
Ningbo Tuopu Group Co., Ltd Annual Report 2021
| 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 | -4,353,713.45 | -4,347,227.73 | -6,485.72 | -24,978,896.47 | |||
| Total | -20,631,668.74 | -4,353,713.45 | -4,347,227.73 | -6,485.72 | -24,978,896.47 |
Ningbo Tuopu Group Co., Ltd Annual Report 2021
58. Special reserves
□Applicable √Non-applicable
59. Surplus reserve
√Applicable □Non-applicable
Unit： Yuan Currency：人 RMB
| Item | Balance at the beginning of the period | Increased in the current period | Decreased in the current period | Balance at the end of the period |
| Statutory surplus reserve | 474,769,630.86 | 69,039,836.72 | 543,809,467.58 | |
| Discretionary surplus reserve | ||||
| Reserve fund | ||||
| Business development fund | ||||
| Others | ||||
| Total | 474,769,630.86 | 69,039,836.72 | 543,809,467.58 |
Notes to the surplus reserve, including the changes in the current period and the reason for suchchanges:
The statutory surplus reserve at RMB 60,039,836.72 shall be withdrawn at 10% of the parentcompany's net profit in 2021.
60. Undistributed profit
√Applicable □Non-applicable
Unit： Yuan Currency： RMB
| 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 | 1,017,253,691.77 | 628,200,888.31 |
| Less: withdrawal of statutory surplus reserve | 69,039,836.72 | 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 | 3,627,091,164.15 | 2,868,429,319.48 |
Adjust the particulars of undistributed profit at the beginning of the period:
1. The impact of the retrospective adjustment of the "Accounting Standards for Business Enterprises"and updated regulations on undistributed profit at the beginning of the period is RMB 0.
Ningbo Tuopu Group Co., Ltd Annual Report 2021
2. The impact of changes in accounting policies on undistributed profit at the beginning of the period isRMB 0.
3. The impact of the correction of major accounting errors on undistributed profit at the beginning ofthe period is RMB 0.
4. The impact of change in the scope of business combination as a result of the same control onundistributed profit at the beginning of the period is RMB 0.
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 | 11,017,000,524.49 | 8,861,356,542.47 | 6,293,917,541.95 | 4,961,882,743.49 | |
| Other operations | 445,693,155.37 | 322,720,755.29 | 217,177,372.10 | 72,131,784.90 | |
| Total | 11,462,693,679.86 | 9,184,077,297.76 | 6,511,094,914.05 | 5,034,014,528.39 | |
(2). Particulars of the income generated from contract
□Applicable √Non-applicable
Notes to the income generated from contract:
□Applicable √Non-applicable
(3). Notes to discharge of obligation
□Applicable √Non-applicable
(4). Notes to allocation to remaining performance obligations
□Applicable √Non-applicable
62.Taxes and surcharges
√Applicable □Non-applicable
Unit： Yuan Currency： RMB
| Item | Amount incurred in the current period | Amount incurred in previous period |
| Consumption tax | ||
| Business tax | ||
| Urban Maintenance and Construction Tax | 14,577,493.66 | 13,570,057.87 |
| Education Surcharges | 6,455,753.70 | 5,956,703.64 |
| Local education surcharges | 4,303,835.79 | 3,971,135.24 |
| Resource tax | ||
| Property tax | 21,515,066.02 | 20,117,208.23 |
| Land use tax | 16,449,340.89 | 10,461,916.66 |
| Vehicle and vessel use tax | 12,364.20 | 10,234.20 |
| Stamp duty | 6,852,247.53 | 3,021,739.93 |
| Environmental protection tax | 5,438.02 | 10,262.22 |
| Land VAT | 945,000.00 | |
| Other | 52,674.98 | 8,272.92 |
Ningbo Tuopu Group Co., Ltd Annual Report 2021
| Total | 70,224,214.79 | 58,072,530.91 |
63. Sales expense
√Applicable □Non-applicable
Unit： Yuan Currency： RMB
| Item | Amount incurred in the current period | Amount incurred in previous period |
| Service expense | 50,940,416.94 | 37,448,497.63 |
| Payroll | 38,437,400.69 | 31,090,097.76 |
| Business hospitality expense | 24,433,913.11 | 17,554,681.58 |
| Repair cost | 29,420,327.87 | 26,297,852.61 |
| Travel expense | 1,596,474.90 | 1,427,006.29 |
| Packaging fee | 4,271,537.36 | 3,833,817.82 |
| Vehicle cost | 1,954,686.43 | 1,982,733.62 |
| Exhibition fee | 152,003.55 | 28,514.85 |
| Others | 5,836,564.25 | 4,233,050.08 |
| Total | 157,043,325.10 | 123,896,252.24 |
64. Overhead expense
√Applicable □Non-applicable
Unit： Yuan Currency： RMB
| Item | Amount incurred in the current period | Amount incurred in previous period |
| Payroll | 171,416,024.47 | 129,407,881.39 |
| Depreciation expense | 30,407,710.34 | 30,504,149.76 |
| Business hospitality expense | 3,957,890.66 | 2,659,235.25 |
| Vehicle cost | 4,542,149.34 | 3,513,929.80 |
| Taxes | 2,128,205.29 | |
| Travel expenses | 1,947,584.16 | 1,812,974.57 |
| Amortization of intangible assets | 18,998,330.47 | 15,182,606.65 |
| Office expenses | 6,012,157.49 | 4,061,233.20 |
| Insurance premiums | 4,837,503.52 | 3,745,476.72 |
| Intermediary fee | 2,969,590.10 | 3,219,840.84 |
| Utility bills | 3,348,375.98 | 2,460,308.10 |
| Service charge | 18,238,900.61 | 11,734,847.31 |
| Rent | 841,545.66 | 719,363.07 |
| Others | 27,932,790.18 | 21,921,822.52 |
| Total | 295,450,552.98 | 233,071,874.47 |
65. R&D expenses
√Applicable □Non-applicable
Unit： Yuan Currency： RMB
| Item | Amount incurred in the current period | Amount incurred in previous period |
| Material | 162,342,968.61 | 109,027,532.14 |
| Payroll | 214,518,848.62 | 147,953,842.51 |
| Depreciation and amortization | 62,981,076.35 | 58,210,594.82 |
| Transportation and storage fee | 3,168,860.40 | 2,864,077.02 |
| Energy consumption fee | 22,188,941.44 | 14,812,836.86 |
| Travel expense | 4,221,736.13 | 2,872,311.90 |
| Trial production expense | 8,192,628.32 | 4,015,146.73 |
| Others | 24,878,396.51 | 15,095,405.68 |
| Total | 502,493,456.38 | 354,851,747.66 |
Ningbo Tuopu Group Co., Ltd Annual Report 2021
66. Financial expense
√Applicable □Non-applicable
Unit： Yuan Currency： RMB
| Item | Amount incurred in the current period | Amount incurred in previous period |
| Interest expense | 22,173,845.92 | 19,744,058.04 |
| Incl.: lease liability interest expense | 2,103,703.39 | |
| Less: interest income | -23,748,186.60 | -17,108,552.05 |
| Gain and loss from exchange | 33,623,332.61 | 39,191,206.52 |
| Handling charge | 3,569,455.54 | 2,291,850.08 |
| Total | 35,618,447.47 | 44,118,562.59 |
67.Other income
√Applicable □Non-applicable
Unit： Yuan Currency： RMB
| Item | Amount incurred in the current period | Amount incurred in previous period |
| Government grants | 35,898,407.13 | 33,135,066.17 |
| Withholding personal income tax fees | 53,705.44 | |
| Total | 35,952,112.57 | 33,135,066.17 |
Other Notes:
Government grants included in other income:
Unit： Yuan Currency： RMB
| Item | Amount in the current period | Amount in previous period | Assets-related/Income-related |
| Machine substitution for human project with an annual capacity of 700,000 sets of damping products | 472,000.00 | 472,000.00 | Assets-related |
| Automobile composite fiber production project | 99,999.96 | 100,000.00 | Assets-related |
| Tuopu Intelligent Mechatronics Industrial Park Project | 1,385,714.25 | 983,928.56 | Assets-related |
| Production line transformation project of high-performance vibration control system for cars | 551,238.00 | 551,238.00 | Assets-related |
| Production and application technology transformation project of lightweight materials for vehicles | 875,000.00 | 874,999.96 | Assets-related |
| Technological Transformation Project of Automobile High-Performance Vibration control system | 891,261.09 | 794,849.79 | Assets-related |
| Technological Transformation Project of Automobile Interior and Exterior Trim Parts | 815,466.48 | 729,926.93 | Assets-related |
| Technological Transformation Project of Automobile Lightweight Control Arms | 875,375.13 | 777,533.25 | Assets-related |
| Technological Transformation Project of Automobile | 915,256.45 | 811,169.86 | Assets-related |
Ningbo Tuopu Group Co., Ltd Annual Report 2021
| Lightweight Parts Production Line | |||
| Technological Transformation Project of Automobile High-Performance Vibration control system | 172,380.00 | Assets-related | |
| Technological transformation project of lightweight auto parts | 187,512.00 | Assets-related | |
| Digital workshop project with an annual capacity of 120,000 sets of intelligent braking systems | 393,393.10 | Assets-related | |
| Auto parts production and industrial automation projects | 4,500,000.00 | 4,500,000.00 | Assets-related |
| Technological transformation project for the production line of automotive lightweight alloy parts with an annual capacity of 300,000 sets | 1,000,000.10 | 973,140.06 | Assets-related |
| Technological Transformation Project of Automobile High-Performance Vibration control system | 559,226.26 | 92,738.34 | Assets-related |
| Shenyang Tuopu Auto Parts Base Project | 583,333.32 | 388,888.85 | Assets-related |
| Intelligent factory construction project with an annual capacity of 2 million sets of automotive interior trims | 110,000.00 | 110,000.00 | Assets-related |
| Technological transformation project of car roof, carpet assembly and other interior trims with an annual capacity of 1.6 million sets | 165,000.00 | 165,000.00 | Assets-related |
| Auto Parts Production Project of Liudong New District | 84,279.07 | 84,279.07 | Assets-related |
| Automobile Fabric Production Line Project | 533,032.78 | 369,302.10 | Assets-related |
| Pinghu Tuopu Auto Parts Production Project | 795,850.00 | 651,150.00 | Assets-related |
| Production line project with an annual capacity of 300,000 sets of related auto parts | 86,798.28 | 86,798.28 | Assets-related |
| Automobile chassis parts project with an annual capacity of 500,000 sets | 103,229.49 | 103,229.50 | Assets-related |
| Tuopu Chassis Auto Parts Industry Base Project | 67,796.60 | Assets-related | |
| Auxiliary project outside the factory | 392,165.00 | 303,202.78 | Assets-related |
| Relocation project with an annual capacity of 300,000 sets of automotive interior trims | 110,593.80 | 110,593.80 | Assets-related |
| Technological transformation project of production line for automobile front and rear axle with annual output of 200,000 | 378,110.76 | 378,110.76 | Assets-related |
Ningbo Tuopu Group Co., Ltd Annual Report 2021
| sets | |||
| Technological transformation project of AVS products & chassis production line with annual capacity of 300,000 sets | 289,187.22 | 289,187.22 | Assets-related |
| Passenger vehicle chassis AVS products project with an annual capacity of 500,000 sets | 326,052.96 | 163,026.48 | Assets-related |
| Technological transformation project of automobile chassis lightweight production line | 27,040.52 | Assets-related | |
| Technological transformation project of automobile chassis lightweight components | 180,320.67 | Assets-related | |
| Technological transformation project of NEVs front and rear axle assembly | 333,333.33 | Assets-related | |
| Subsidies for land leveling | 105,516.94 | Assets-related | |
| Technological transformation project of Automobile High-Performance Shock Absorbing System with an annual capacity of 2,000,000 sets | 270,833.34 | Assets-related | |
| Technological transformation project of automotive NVH interior trim parts system | 120,379.20 | Assets-related | |
| Technological transformation project of automotive lightweight components | 270,833.33 | Assets-related | |
| Technological transformation project of automotive lightweight components an annual capacity of 3,000,000 sets | 270,833.33 | Assets-related | |
| Technological transformation project of automotive suspension chassis production line with an annual capacity of 500,000 sets | 377,668.28 | Assets-related | |
| Science and technology project subsidies | 490,500.00 | 60,000.00 | Income-related |
| Special subsidies for patents | 22,400.00 | 182,600.00 | Income-related |
| Foreign economic and trade support funds | 518,600.00 | Income-related | |
| R&D patent subsidies | 72,184.00 | Income-related | |
| Stable employment subsidies | 673,175.94 | 522,523.95 | Income-related |
| Tax subsidies | 6,164,774.00 | 395,862.09 | Income-related |
| Social security premium subsidies | 121,216.54 | Income-related | |
| Technology project funds | 2,000,000.00 | 2,103,600.00 | Income-related |
| Energy-saving evaluation report subsidies | 130,000.00 | Income-related | |
| Incentives for overfulfill production target by business enterprises | 300,000.00 | Income-related | |
| Power bill subsidies | 1,066,871.59 | 50,000.00 | Income-related |
| Corporate funding subsidies | 9,728.48 | 2,000.00 | Income-related |
Ningbo Tuopu Group Co., Ltd Annual Report 2021
| Enterprise transformation and upgrading incentives | 321,600.00 | Income-related | |
| Technology incentive subsidies | 303,000.00 | 600,000.00 | Income-related |
| Technology subsidies | 500,000.00 | 1,607,000.00 | Income-related |
| "One District, Multiple Parks" Development Fund | 500,000.00 | Income-related | |
| Design report grants of initial solution for intelligent transformation | 100,000.00 | Income-related | |
| VAT exemption for veterans | 95,250.00 | 9,000.00 | Income-related |
| Industrial production and capacity expansion rewards | 1,370,000.00 | 1,700,000.00 | Income-related |
| Import discount subsidies | 816,312.00 | 1,344,164.00 | Income-related |
| Information and industrialization management system certification | 100,000.00 | Income-related | |
| Annual fee grants for domestic authorized invention patents | 4,680.00 | Income-related | |
| Funding grants for science and technology plan projects | 795,000.00 | Income-related | |
| Strategic emerging industry development funds (recognized by the National Enterprise Technology Center) | 1,000,000.00 | Income-related | |
| Talent grants | 647,650.00 | Income-related | |
| Intellectual property project subsidies | 35,600.00 | Income-related | |
| 2018 invention patent annual fee grants | 720.00 | Income-related | |
| 2018 technology transaction post grants | 59,000.00 | Income-related | |
| 2019 “Going Global” project grants | 178,500.00 | Income-related | |
| Enterprise R&D post-grants | 632,502.00 | 892,800.00 | Income-related |
| Subsidies for resumption of work and epidemic response supplies | 1,144,872.00 | Income-related | |
| High-tech Enterprise Award | 100,000.00 | Income-related | |
| Construction fund for slope protection project in Guang'an High-tech Zone | 30,000.00 | Income-related | |
| Statistical funding subsidies granted from Economic and Information Bureau | 86,000.00 | Income-related | |
| Industrial Special Fund Subsidies | 708,000.00 | 697,900.00 | Income-related |
| “2-year exemption, 3-year collection of corporate income tax by half” government subsidies | 1,347,700.00 | Income-related | |
| Premium investment project award on the " Leaderboard" of New District Industrial Economy | 100,000.00 | 50,000.00 | Income-related |
| High-tech enterprise grants | 100,000.00 | 400,000.00 | Income-related |
| 2019 pollution source monitoring system operation and maintenance subsidies | 60,000.00 | Income-related |
Ningbo Tuopu Group Co., Ltd Annual Report 2021
| Made in Zhejiang Selected Products | 200,000.00 | Income-related | |
| Allowances for unemployment | 59,150.00 | Income-related | |
| Allowances for recruited talents | 37,397.00 | Income-related | |
| Notice of "training by work" subsidies for special account of unemployment insurance | 315,613.08 | Income-related | |
| Subsidies for operation and maintenance of pollution self-control system | 60,000.00 | Income-related | |
| Subsidies for production safety standard enterprise | 60,000.00 | Income-related | |
| Government subsidies for the 7th batch of special funds for high-quality development of manufacturing in 2021 | 100,000.00 | Income-related | |
| High-tech zone investment promotion award | 277,722.00 | Income-related | |
| Incentive funds for cleaner production qualified enterprises | 50,000.00 | Income-related | |
| Business cultivation incentives | 10,000.00 | Income-related | |
| Total | 35,898,407.13 | 33,135,066.17 |
68. Investment income
√Applicable □Non-applicable
Unit： Yuan Currency： RMB
| Item | Amount incurred in the current period | Amount incurred in previous period |
| Long-term equity investment income calculated by the equity method | 17,901,771.79 | 25,080,033.26 |
| Investment income from disposal of long-term equity investments | ||
| Investment income of trading financial assets during the holding period | ||
| Dividend income from other equity instrument investments during the holding period | ||
| Interest income from debt investment during the holding period | ||
| Interest income from other debt investments during the holding period | ||
| Investment income from disposal of trading financial assets | ||
| Investment income from the disposal of other equity instrument investments | ||
| Investment income from disposal of debt investment | ||
| Investment income from the disposal of other debt investments | ||
| Income from debt restructuring | ||
| Investment income from financial management products | 17,563,635.87 | 18,164,183.51 |
| Total | 35,465,407.66 | 43,244,216.77 |
Ningbo Tuopu Group Co., Ltd Annual Report 2021
69. Net exposure hedging income
□Applicable √Non-applicable
70.Gains from changes in fair value
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
| Sources of income from changes in fair value | Amount incurred in the current period | Amount incurred in previous period |
| Transactional financial assets | 252,506.50 | |
| Including: income from changes in fair value generated by derivative financial instruments | ||
| Transactional financial liabilities | ||
| Investment real estate measured at fair value | ||
| Total | 252,506.50 |
71. Credit impairment loss
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
| Item | Amount incurred in the current period | Amount incurred in previous period |
| Bad debt loss on accounts receivable | 1,870,836.33 | 479,351.80 |
| Bad debt loss on accounts receivable | 72,915,760.15 | 25,033,422.07 |
| Bad debt loss on other receivables | 1,137,034.47 | -5,858,006.88 |
| Impairment loss of debt investment | ||
| Impairment loss of other debt investment | ||
| Bad debt loss of long-term receivables | ||
| Impairment loss of contract assets | ||
| Total | 75,923,630.95 | 19,654,766.99 |
72. Asset impairment loss
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
| 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 | 24,461,606.50 | 22,439,872.62 |
| 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 | 44,633,489.63 | |
| 12. Others | ||
| Total | 69,095,096.13 | 22,439,872.62 |
73. Income from disposal of assets
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
Ningbo Tuopu Group Co., Ltd Annual Report 2021
| Item | Amount incurred in the current period | Amount incurred in previous period |
| Income from disposal of assets | 195,282.02 | 8,747,482.63 |
| Total | 195,282.02 | 8,747,482.63 |
74. Non-operating income
Particulars about non-operating income
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
| Item | Amount incurred in the current period | Amount incurred in previous period | Amount included in the current non-recurring profit and loss |
| Total gains from disposal of non-current assets | 473,734.86 | 473,734.86 | |
| Including: gains from disposal of fixed assets | 473,734.86 | 473,734.86 | |
| Gains from disposal of intangible assets | |||
| Gains from non-monetary asset exchange | |||
| Capital from donation | |||
| Government grants | 1,215,201.24 | ||
| Compensation income | 5,095,707.41 | 3,168,618.05 | 5,095,707.41 |
| Other | 2,485,841.49 | 1,270,852.96 | 2,485,841.49 |
| Total | 8,055,283.76 | 5,654,672.25 | 8,055,283.76 |
Government grants included in current profit and loss
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
| Item | Amount incurred in the current period | Amount incurred in previous period | Assets-related/Income-related |
| Stable employment subsidies | 296,701.24 | Income-related | |
| Zhejiang Cloud-based Benchmark Enterprise | 100,000.00 | Income-related | |
| Epidemic response subsidies for foreign trade enterprise | 500,000.00 | Income-related | |
| "Two direct subsidies" for small and micro enterprises | 20,000.00 | Income-related | |
| Business cultivation incentives from Shanxi Finance Bureau | 10,000.00 | Income-related | |
| Information and industrialization management system certification | 283,500.00 | Income-related | |
| 2019 invention patents | 5,000.00 | Income-related | |
| Total | 1,215,201.24 |
Other Notes:
□Applicable √Non-applicable
75. Non-operating expenses
√Applicable □Non-applicable
Unit： Yuan Currency： RMB
| Item | Amount incurred in | Amount incurred in | Amount included |
Ningbo Tuopu Group Co., Ltd Annual Report 2021
| the current period | previous period | in the current non-recurring profit and loss | |
| Total loss from disposal of non-current assets | 2,289,916.08 | 44,105.24 | 2,289,916.08 |
| Including: Loss on disposal of fixed assets | 2,289,916.08 | 44,105.24 | 2,289,916.08 |
| Loss on disposal of intangible assets | |||
| Loss from exchange of non-monetary assets | |||
| External donation | 52,000.00 | 466,097.35 | 52,000.00 |
| Special funds for water conservancy construction | 119,510.77 | 88,561.51 | |
| Loss from debt restructuring | 2,634,825.43 | 2,634,825.43 | |
| Others | 1,318,948.13 | 1,071,261.55 | 1,318,948.13 |
| Total | 6,415,200.41 | 1,670,025.65 | 6,295,689.64 |
76. Income tax expense
(1). Schedule of income tax expense
√Applicable □Non-applicable
Unit： Yuan Currency： RMB
| Item | Amount incurred in the current period | Amount incurred in previous period |
| Income tax expense in the current period | 144,731,745.63 | 93,867,817.06 |
| Deferred income tax expense | -16,290,635.75 | -13,915,840.31 |
| Total | 128,441,109.88 | 79,951,976.75 |
(2). Adjustment process of accounting profit and income tax expense
√Applicable □Non-applicable
Unit： Yuan Currency： RMB
| Item | Amount incurred in the current period |
| Total profits | 1,146,273,050.40 |
| Income tax expense calculated at the statutory/applicable tax rate | 171,940,957.56 |
| Impact of different tax rates applied to subsidiaries | 3,123,866.08 |
| Adjusted impact of income tax in prior periods | 9,478,118.01 |
| Impact of non-taxable income | -2,685,265.77 |
| Impact of non-deductible costs, expenses and losses | 12,125,598.34 |
| Impact of using deductible losses of deferred income tax assets that have not been recognized in the previous period | -18,338,765.65 |
| Impact of deductible temporary differences or deductible losses on unrecognized deferred income tax assets in the current period | 15,854,553.93 |
| Impact of additional tax deductions for enterprise research and development | -62,618,440.16 |
| Changes in deferred tax assets/liabilities at the beginning of the period due to tax rate adjustments | -439,512.46 |
| Income tax expense | 128,441,109.88 |
Ningbo Tuopu Group Co., Ltd Annual Report 2021
Other Notes:
□Applicable √Non-applicable
77. Other Comprehensive Income
√Applicable □Non-applicable
More details are available in Notes
78. Cash flow statement items
(1). Other cash received related to operating activities
√Applicable □Non-applicable
Unit： Yuan Currency： RMB
| Item | Amount incurred in the current period | Amount incurred in previous period |
| Receipt of temporary loans | 9,870,651.53 | 22,053,972.32 |
| Interest income | 23,748,186.60 | 17,108,552.05 |
| Government grants | 91,023,612.09 | 76,335,520.04 |
| Income from compensation and fines | 5,095,707.41 | 3,169,158.05 |
| Others | 2,472,596.93 | 1,689,365.72 |
| Total | 132,210,754.56 | 120,356,568.18 |
(2). Other cash paid related to operating activities
√Applicable □Non-applicable
Unit： Yuan Currency： RMB
| Item | Amount incurred in the current period | Amount incurred in previous period |
| Payment of temporary loans | 21,307,017.67 | 28,824,851.17 |
| Business hospitality expense | 28,639,513.45 | 20,213,916.83 |
| Repair cost | 31,860,199.53 | 26,285,029.83 |
| R&D spending | 221,890,701.22 | 148,687,310.33 |
| Travel expense | 7,765,795.19 | 3,239,980.86 |
| Insurance premium | 5,781,916.33 | 3,745,476.72 |
| Office expense | 8,636,977.49 | 4,061,233.20 |
| Vehicle expense | 7,884,317.20 | 5,496,663.42 |
| Service charge | 67,304,477.69 | 49,183,344.94 |
| Intermediary fee | 2,969,590.10 | 2,409,261.29 |
| Packaging fee | 4,271,537.36 | 3,833,817.82 |
| Utility bill | 7,224,430.01 | 2,460,308.10 |
| Rent | 1,092,235.11 | 719,363.07 |
| Others | 23,358,264.35 | 34,715,604.75 |
| Total | 439,986,972.71 | 333,876,162.33 |
(3). Other cash received related to investment activities
□Applicable √Non-applicable
(4). Other cash paid related to investment activities
□Applicable √Non-applicable
(5). Other cash received related to financing activities
√Applicable □Non-applicable
Ningbo Tuopu Group Co., Ltd Annual Report 2021
Unit： Yuan Currency： RMB
| Item | Amount incurred in the current period | Amount incurred in previous period |
| Cash received from finance leases | 1,000,000.00 | |
| Total | 1,000,000.00 |
(6). Other cash paid related to financing activities
Applicable □Non-applicable
Unit： Yuan Currency： RMB
| Item | Amount incurred in the current period | Amount incurred in previous period |
| Cash paid for lease liabilities | 15,071,874.82 | |
| Repayment of borrowings to the the financial leasing company | 57,090,308.69 | |
| Total | 72,162,183.51 |
79. Additional information on cash flow statement
(1). Additional information on cash flow statement
√Applicable □Non-applicable
Unit： Yuan Currency： RMB
| Additional Information | Amount in the current period | Amount in previous period |
| 1. Reconciliation of net profit to cash flows from operational activities: | ||
| Net Profit | 1,017,831,940.52 | 630,134,213.60 |
| Add: provision for impairment of assets | 69,095,096.13 | 22,439,872.62 |
| Credit impairment provision | 75,923,630.95 | 19,654,766.99 |
| Depreciation of fixed assets, oil and gas assets, productive biological assets | 524,967,442.92 | 442,576,190.86 |
| Depreciation of right-of-use assets | 13,882,969.37 | |
| Amortization of Intangible Assets | 24,980,451.20 | 20,545,167.08 |
| Amortization of long-term prepaid expenses | 39,621,128.32 | 46,930,675.20 |
| Losses on disposal of fixed assets, intangible assets and other long-term assets (income as in “-”) | -195,282.02 | -8,747,482.63 |
| Losses on scrapping of fixed assets (income as in “-”) | 1,816,181.22 | 44,105.24 |
| Losses on fair value changes (income as in “-”) | -252,506.50 | |
| Financial expenses (income as in “-”) | 44,973,507.21 | 14,740,711.65 |
| Losses on investment (income as in “-”) | -35,465,407.66 | -43,244,216.77 |
| Decrease on deferred income tax assets (increase as in “-”) | -40,132,319.96 | -17,756,501.07 |
| Increase on deferred income tax liabilities (decrease as in “-”) | 23,841,684.21 | 3,840,660.76 |
| Decrease on inventories (increase as in “-”) | -818,693,612.69 | -271,657,035.93 |
| Decrease on operational receivables (increase as in “-”) | -685,956,317.99 | -385,860,564.15 |
| Increase on operational payables (decrease as in “-”) | 930,580,608.12 | 650,045,016.56 |
| Others | ||
| Net cash flow generated by operating activities | 1,186,819,193.35 | 1,123,685,580.01 |
| 2. Major investing and financing activities not involving cash receipts and payment: | ||
Ningbo Tuopu Group Co., Ltd Annual Report 2021
| 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 | 935,672,390.98 | 674,866,422.08 |
| 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 | 260,805,968.90 | -40,315,646.04 |
(2). Net cash receipts from disposal of subsidiaries in this period
□Applicable √Non-applicable
(3). Net cash received from disposal of subsidiaries in the current period
□Applicable √Non-applicable
(4). Composition of cash and cash equivalents
√Applicable □Non-applicable
Unit： Yuan Currency： RMB
| Item | Balance at the end of the period | Balance at the beginning of the period |
| 1. Cash | 935,672,390.98 | 674,866,422.08 |
| Including: cash on hand | 9,367.02 | 8,899.73 |
| Bank deposits that can be used for payment at any time | 935,663,023.96 | 674,857,522.35 |
| Other currency funds that can be used for payment at any time | ||
| Deposits in the central bank that can be used for payment | ||
| Deposits in Other Financial Institutions | ||
| Call loans from Other Financial Institutions | ||
| 2. Cash equivalents | ||
| Including: bond investments due within three months | ||
| 3. Balance of cash and cash equivalents at the end of the period | 935,672,390.98 | 674,866,422.08 |
| Including: cash and cash equivalents that are restricted for us by the parent company or subsidiary within the group |
Other Notes:
√Applicable □Non-applicable
“Balance of cash and cash equivalents at the end of the period” as contained in the current cashflow statement is RMB 335,777,756.39 less than the "monetary funds" at the end of the period ascontained in the consolidated balance sheet, because the deposit of RMB 335,777,756.39 for bills andL/C is not treated as cash and cash equivalents.
Ningbo Tuopu Group Co., Ltd Annual Report 2021
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 |
| Monetary funds | 335,777,756.39 | Bank Acceptance Draft Deposit |
| Notes receivable | 315,417,218.51 | Pledge |
| Inventories | ||
| Fixed assets | 853,207,227.97 | Mortgage |
| Intangible assets | 104,522,557.95 | Mortgage |
| Receivables financing | 821,788,525.63 | Pledge |
| Total | 2,430,713,286.45 | / |
82. Foreign currency balance at the end of the period
(1). Foreign currency balance at the end of the period
√Applicable □Non-applicable
Unit： Yuan
| Item | Foreign currency balance at the end of the period | Converted exchange rate | Balance converted to RMB at the end of the period |
| Cash and bank balances | - | - | 213,427,336.21 |
| Including: USD | 13,658,859.44 | 6.3757 | 87,084,790.13 |
| EUR | 461,332.11 | 7.2197 | 3,330,679.43 |
| CAD | 5,607,931.74 | 5.0046 | 28,065,455.19 |
| BRL | 29,064,055.41 | 1.6983 | 49,359,485.30 |
| MYR | 8,824,007.28 | 1.5266 | 13,470,729.51 |
| SEK | 575,500.47 | 0.7050 | 405,727.83 |
| PLN | 20,175,904.32 | 1.5717 | 31,710,468.82 |
| Accounts receivable | - | - | 691,906,058.02 |
| Including: USD | 80,687,510.78 | 6.3757 | 514,439,362.50 |
| EUR | 3,256,710.24 | 7.2197 | 23,512,470.92 |
| CAD | 22,875,085.58 | 5.0046 | 114,480,653.29 |
| GBP | 37,518.19 | 8.6064 | 322,896.55 |
| BRL | 12,781,569.04 | 1.6983 | 21,706,938.70 |
| MYR | 11,426,526.96 | 1.5266 | 17,443,736.06 |
| Other Receivables | 462,260.92 | ||
| Including: USD | 10,345.84 | 6.3757 | 65,961.97 |
| SEK | 562,126.17 | 0.7050 | 396,298.95 |
| Short-term loan | 313,684,440.00 | ||
| Including: USD | 49,200,000.00 | 6.3757 | 313,684,440.00 |
| Accounts payable | 378,002,857.89 | ||
| Including: USD | 50,507,524.86 | 6.3757 | 322,020,826.25 |
| CAD | 9,100,865.48 | 5.0046 | 45,546,191.38 |
| BRL | 859,048.50 | 1.6983 | 1,458,922.07 |
| MYR | 5,302,666.61 | 1.5266 | 8,095,050.85 |
| SEK | 513,061.00 | 0.7050 | 361,708.01 |
| PLN | 330,953.32 | 1.5717 | 520,159.33 |
Ningbo Tuopu Group Co., Ltd Annual Report 2021
| Other Payables | 1,537,285.60 | ||
| Including: USD | 855.91 | 6.3757 | 5,457.03 |
| BRL | 3,953.39 | 1.6983 | 6,714.04 |
| MYR | 828,418.59 | 1.5266 | 1,264,663.82 |
| SEK | 369,433.63 | 0.7050 | 260,450.71 |
(2). Notes to overseas business entities, overseas business locations, functional currency and thebasis for selection in respect of important overseas business enttiies should be disclosed; if there isa change in the functional currency, the reason for the change should be further disclosed.
√Applicable □Non-applicable
The Company has seven subsidiaries outside of China, i.e.: Tuopu North American USALimited,INC, currently operating in Canada and with Canadian dollars as the functional currency; TuopuNorth American USA Limited, INC, currently operating in the United States and with U.S. dollars as thefunctional currency; Tuopu Brasil, currently operating in Brasil and with Brasilian Real as the functionalcurrency; Tuopu Sweden, currently operating in Sweden and with Swedish krona as the functionalcurrency; Tuopu International, currently operating in Hong Kong and with Hong Kong dollar as thefunctional currency; TUOPU (MALAYSIA) SDN.BHD., currently operating in Malaysia and withRinggit as the functional currency; Tuopu USA, LLC,, currently operating in the United States and withU.S. dollars as the functional currency; Tuopu Poland sp.z.o.o, currently operating in Poland and withPLN as the functional currenc.
83. Hedging
□Applicable √Non-applicable
84. Government subsidies
1. General information of government subsidies
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
| 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 | 472,000.00 |
| Automobile composite fiber production project | 1,000,000.00 | Deferred income | 99,999.96 |
| Tuopu Intelligent Mechatronics Industrial Park Project | 27,000,000.00 | Deferred income | 1,385,714.25 |
| Production line transformation project of high-performance vibration control system for cars | 4,409,904.00 | Deferred income | 551,238.00 |
| Production and application technology transformation project of lightweight materials for vehicles | 7,000,000.00 | Deferred income | 875,000.00 |
| Technological Transformation Project of Automobile High-Performance Vibration control system | 8,250,992.00 | Deferred income | 891,261.09 |
Ningbo Tuopu Group Co., Ltd Annual Report 2021
| Technological Transformation Project of Automobile Interior and Exterior Trim Parts | 7,794,112.00 | Deferred income | 815,466.48 |
| Technological Transformation Project of Automobile Lightweight Control Arms | 8,085,312.00 | Deferred income | 875,375.13 |
| Technological Transformation Project of Automobile Lightweight Parts Production Line | 8,443,472.00 | Deferred income | 915,256.45 |
| Technological Transformation Project of Automobile High-Performance Vibration control system | 1,723,800.00 | Deferred income | 172,380.00 |
| Technological transformation project of lightweight auto parts | 1,875,120.00 | Deferred income | 187,512.00 |
| Digital workshop project with an annual capacity of 120,000 sets of intelligent braking systems | 4,041,000.00 | Deferred income | 393,393.10 |
| Auto parts production and industrial automation projects | 90,000,000.00 | Deferred income | 4,500,000.00 |
| Technological transformation project for the production line of automotive lightweight alloy parts with an annual capacity of 300,000 sets | 10,000,000.00 | Deferred income | 1,000,000.10 |
| Technological Transformation Project of Automobile High-Performance Vibration control system | 5,713,900.00 | Deferred income | 559,226.26 |
| Shenyang Tuopu Auto Parts Base Project | 2,000,000.00 | Deferred income | 583,333.32 |
| Intelligent factory construction project with an annual capacity of 2 million sets of automotive interior trims | 1,100,000.00 | Deferred income | 110,000.00 |
| Technological transformation project of car roof, carpet | 1,650,000.00 | Deferred income | 165,000.00 |
Ningbo Tuopu Group Co., Ltd Annual Report 2021
| assembly and other interior trims with an annual capacity of 1.6 million sets | |||
| Auto Parts Production Project of Liudong New District | 1,510,000.00 | Deferred income | 84,279.07 |
| Automobile Fabric Production Line Project | 4,104,000.00 | Deferred income | 533,032.78 |
| Pinghu Tuopu Auto Parts Production Project | 14,470,000.00 | Deferred income | 795,850.00 |
| Production line project with an annual capacity of 300,000 sets of related auto parts | 1,110,000.00 | Deferred income | 86,798.28 |
| Automobile chassis parts project with an annual capacity of 500,000 sets | 5,032,438.00 | Deferred income | 103,229.49 |
| Tuopu Chassis Auto Parts Industry Base Project | 8,000,000.00 | Deferred income | 67,796.60 |
| Auxiliary project outside the factory | 7,000,011.00 | Deferred income | 392,165.00 |
| Hunan Xiangtan Auto Parts Industry Base Project | 6,000,000.00 | Deferred income | |
| Relocation project with an annual capacity of 300,000 sets of automotive interior trims | 965,300.00 | Deferred income | 110,593.80 |
| 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 | 378,110.76 |
| Technological transformation project of AVS products & chassis production line with annual capacity of 300,000 sets | 2,582,045.00 | Deferred income | 289,187.22 |
| Passenger vehicle chassis AVS products project with an annual capacity of 500,000 sets | 2,539,990.00 | Deferred income | 326,052.96 |
| Technological transformation project of automobile chassis lightweight production line | 1,000,500.00 | Deferred income | 27,040.52 |
| Technological | 10,458,600.00 | Deferred income | 180,320.67 |
Ningbo Tuopu Group Co., Ltd Annual Report 2021
| transformation project of automobile chassis lightweight components | |||
| Technological transformation project of NEVs front and rear axle assembly | 20,000,000.00 | Deferred income | 333,333.33 |
| Subsidies for land leveling | 7,729,116.00 | Deferred income | 105,516.94 |
| Technological transformation project of Automobile High-Performance Shock Absorbing System with an annual capacity of 2,000,000 sets | 6,500,000.00 | Deferred income | 270,833.34 |
| Technological transformation project of automotive NVH interior trim parts system | 2,889,100.00 | Deferred income | 120,379.20 |
| Technological transformation project of automotive lightweight components | 6,500,000.00 | Deferred income | 270,833.33 |
| Technological transformation project of automotive lightweight components an annual capacity of 3,000,000 sets | 6,500,000.00 | Deferred income | 270,833.33 |
| Government subsidies for technological transformation of the real economy in 2021 | 5,188,000.00 | Deferred income | |
| Technological transformation project of automotive suspension chassis production line with an annual capacity of 500,000 sets | 3,541,300.00 | Deferred income | 377,668.28 |
| Science and technology project subsidies | 490,500.00 | Other income | 490,500.00 |
| Special subsidies for patents | 22,400.00 | Other income | 22,400.00 |
| Stable employment subsidies | 673,175.94 | Other income | 673,175.94 |
| Tax subsidies | 6,164,774.00 | Other income | 6,164,774.00 |
| Technology project funds | 2,000,000.00 | Other income | 2,000,000.00 |
| Power grants | 1,066,871.59 | Other income | 1,066,871.59 |
Ningbo Tuopu Group Co., Ltd Annual Report 2021
| Corporate funding subsidies | 9,728.48 | Other income | 9,728.48 |
| Technology incentive subsidies | 303,000.00 | Other income | 303,000.00 |
| Technology subsidies | 500,000.00 | Other income | 500,000.00 |
| VAT exemption for veterans | 95,250.00 | Other income | 95,250.00 |
| Industrial production and capacity expansion rewards | 1,370,000.00 | Other income | 1,370,000.00 |
| Import discount subsidies | 816,312.00 | Other income | 816,312.00 |
| Enterprise R&D post-grants | 632,502.00 | Other income | 632,502.00 |
| Industrial Special Fund Subsidies | 708,000.00 | Other income | 708,000.00 |
| Premium investment project award on the " Leaderboard" of New District Industrial Economy | 100,000.00 | Other income | 100,000.00 |
| High-tech enterprise grants | 100,000.00 | Other income | 100,000.00 |
| Made in Zhejiang Selected Products | 200,000.00 | Other income | 200,000.00 |
| Allowances for unemployment | 59,150.00 | Other income | 59,150.00 |
| Allowances for recruited talents | 37,397.00 | Other income | 37,397.00 |
| Notice of "training by work" subsidies for special account of unemployment insurance | 315,613.08 | Other income | 315,613.08 |
| Subsidies for operation and maintenance of pollution self-control system | 60,000.00 | Other income | 60,000.00 |
| Subsidies for production safety standard enterprise | 60,000.00 | Other income | 60,000.00 |
| Government subsidies for the 7th batch of special funds for high-quality development of manufacturing in 2021 | 100,000.00 | Other income | 100,000.00 |
| High-tech zone investment promotion award | 277,722.00 | Other income | 277,722.00 |
| Incentive funds for cleaner production qualified enterprises | 50,000.00 | Other income | 50,000.00 |
| Business cultivation incentives | 10,000.00 | Other income | 10,000.00 |
| Total | 337,706,453.09 | 35,898,407.13 |
Ningbo Tuopu Group Co., Ltd Annual Report 2021
(2). Refund of government subsidies
□Applicable √Non-applicable
85. Others
□Applicable √Non-applicable
VIII. Changes in the scope of consolidation
1. Business combination not under common control
□Applicable √Non-applicable
2. Business combination under the same control
□Applicable √Non-applicable
3. Reverse purchase
□Applicable √Non-applicable
4. Disposal of subsidiaries
Whether there is a situation where a single disposal of the investment in the subsidiary will immediatelylead to loss of control
□Applicable √Non-applicable
Other Notes:
□Applicable √Non-applicable
5. Changes in the scope of consolidation due to other reasons
Notes to changes in the scope of consolidation due to other reasons and relevant conditions:
√Applicable □Non-applicable
9 combined entities were added during the reporting period, due to:
The Company incorporated Huzhou Tuopu Automobile Parts Co., Ltd, Xi’an Tuopu AutomobileParts Co., Ltd, Shanghai Tuopu Automobile Parts Co., Ltd, Tuopu Poland sp.z.o.o, Tuopu PhotovoltaicTechnology (Ningbo Beilun) Co., Ltd.,Tuopu Photovoltaic Technology (Ningbo Hangzhou Bay NewArea) Co., Ltd.,Tuopu Photovoltaic Technology (Pinghu) Co., Ltd.,Ningbo Yuxiang Smart Mobility Co.,Ltd., and Tuopu Automotive Chassis (Chongqing) Co., Ltd. These subsidiaries will be incorporated to the financial
statements from the date of incorporation.
6. Others
□Applicable √Non-applicable
IX. Equity in Other Entities
1. Equity in Subsidiaries
(1). Composition of the group
√Applicable □Non-applicable
| Name of Subsidiary | Principal Business Site | Registered Address | Nature of Business | Percentage of Shares (%) | Method of Acquisition | ||
| Direct | Indirect | ||||||
| Tuopu Imp&Exp. | Ningbo | Ningbo | Trading | 100.00 | Business combination under the same control | ||
| Tuopu Parts | Ningbo | Ningbo | Trading | 100.00 | Business combination under the same | ||
Ningbo Tuopu Group Co., Ltd Annual Report 2021
| control | ||||||
| Tuopu Acoustics Vibration | Ningbo | Ningbo | Trading | 100.00 | Business combination under the same control | |
| Yantai Tuopu | Yantai | Yantai | Manufacturing | 100.00 | Business combination under the same control | |
| Liuzhou Tuopu | Liuzhou | Liuzhou | Manufacturing | 100.00 | Business combination under the same control | |
| Shenyang Tuopu | Shenyang | Shenyang | Manufacturing | 100.00 | Establishment | |
| Tuopu Intelligent Brake | Ningbo | Ningbo | Manufacturing | 100.00 | Establishment | |
| Tuopu North American | Canada | Canada | Trading | 51.00 | Business combination not under the same control | |
| Ningbo Qianhui | Ninghai | Ninghai | Manufacturing | 51.00 | Business combination not under the same control | |
| Tuopu North American USA Limited, INC | USA | USA | Service | 51.00 | Establishment | |
| Sichuan Tuopu | Lingshui | Lingshui | Manufacturing | 100.00 | Establishment | |
| Wuhan Tuopu | Wuhan | Wuhan | Manufacturing | 100.00 | Establishment | |
| Pinghu Tuopu | Jiaxing | Jiaxing | Manufacturing | 100.00 | Establishment | |
| Shanghai Towin | Shanghai | Shanghai | Manufacturing | 100.00 | Establishment | |
| Tuopu Industrial Automation | Ningbo | Ningbo | Manufacturing | 100.00 | Establishment | |
| Tuopu Investment | Ningbo | Ningbo | Investment | 100.00 | Establishment | |
| Yuxiang E-commerce | Ningbo | Ningbo | Service | 100.00 | Establishment | |
| Tuopu International | Hong Kong | Hong Kong | Investment | 100.00 | Establishment | |
| Baoji Tuopu | Baoji | Baoji | Manufacturing | 100.00 | Establishment | |
| Taizhou Tuopu | Linhai | Linhai | Manufacturing | 100.00 | Establishment | |
| Tuopu Mechatronic System | Ningbo | Ningbo | Manufacturing | 100.00 | Establishment | |
| Tuopu Brasil | Brasil | Brasil | Manufacturing | 99.96 | 0.04 | Establishment |
| Tuopu Sweden | Sweden | Sweden | R&D | 100.00 | Establishment | |
| Jinzhong Tuopu | Jinzhong | Jinzhong | Manufacturing | 100.00 | Establishment | |
| Shenzhen Towin | Shenzhen | Shenzhen | Manufacturing | 100.00 | Establishment | |
| Zhejiang Towin | Jinhua | Jinhua | Manufacturing | 100.00 | Business combination not under the same control |
Ningbo Tuopu Group Co., Ltd Annual Report 2021
| 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 | |
| Huzhou Tuopu | Huzhou | Huzhou | Manufacturing | 100.00 | Establishment | |
| Xi’an Tuopu | Xi’an | Xi’an | Manufacturing | 100.00 | Establishment | |
| Shanghai Tuopuyu | Shangha | Shangha | Manufacturing | 100.00 | Establishment | |
| Tuopu Poland | Poland | Poland | Manufacturing | 100.00 | Establishment | |
| Tuopu Photovoltaic（Ningbo Beilun） | Ningbo | Ningbo | Manufacturing | 100.00 | Establishment | |
| Tuopu Photovoltaic（Ningbo Hangzhou Bay） | Ningbo | Ningbo | Manufacturing | 100.00 | Establishment | |
| Tuopu Photovoltaic（Pinghu） | Jiaxing | Jiaxing | Manufacturing | 100.00 | Establishment | |
| Yuxiang Smart Mobility | Ningbo | Ningbo | Manufacturing | 100.00 | Establishment | |
| Chongqing Chassis | Chongqing | Chongqing | Manufacturing | 100.00 | Establishment |
(2). Important non-wholly owned subsidiaries
√Applicable □Non-applicable
Unit: Yuan Currency: RMB
| 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% | -307,869.44 | -1,858,224.88 |
Notes to the percentage of shares held by minority shareholder that is different from the percentage ofvoting rights:
□Applicable √Non-applicable
Other Notes:
□Applicable √Non-applicable
Ningbo Tuopu Group Co., Ltd. Annual Report 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 | 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 | 35,231,400.21 | 6,610,172.92 | 41,841,573.13 | 45,633,868.81 | 45,633,868.81 | 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 | 608,628,971.93 | -628,304.97 | -628,304.97 | 15,857,300.37 | 394,096,953.97 | -812,501.74 | -812,501.74 | -6,673,583.68 |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
(4). Significant restrictions on the use of group assets and the settlement of group debts
□Applicable √Non-applicable
(5). Financial support or other support provided to structured entities included in the scope ofconsolidated financial statements
□Applicable √Non-applicable
Other Notes:
□Applicable √Non-applicable
2. Transactions leading to a change in the share of owner's equity in the subsidiary and thecontrol over the subsidiary remains
□Applicable √Non-applicable
3. Rights and interests in joint ventures or associates
□Applicable √Non-applicable
(1). Important joint ventures or associates
√Applicable □Non-applicable
Unit: Yuan Currency: RMB
| Name of joint venture or associate | Principal Business Site | Registered Address | Business Nature | Percentage of Shares Held (%) | Accounting treatment of investment in joint ventures or associate | |
| Direct | Indirect | |||||
| Tuopu Electrical Appliances | Ningbo | Ningbo | Manufacturing | 50.00 | Equity method | |
| Ningbo Borgers | Ningbo | Ningbo | Manufacturing | 50.00 | Equity method | |
| Antolin Tuopu | Chongqing | Chongqing | Manufacturing | 39.00 | Equity method | |
(2). Main financial information of important joint ventures
√Applicable □Non-applicable
Unit: Yuan Currency: RMB
| 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 | 115,959,930.24 | 174,115,922.71 | 138,270,376.94 | 195,623,586.03 |
| Including: cash and cash equivalents | 17,964,903.52 | 30,668,327.53 | 21,987,735.55 | 37,219,502.34 |
| Non-current assets | 37,425,815.26 | 36,105,633.27 | 36,800,692.85 | 33,719,670.26 |
| Total assets | 153,385,745.50 | 210,221,555.98 | 175,071,069.79 | 229,343,256.29 |
| Current liabilities | 53,851,583.03 | 63,722,353.69 | 49,632,204.32 | 73,608,535.10 |
| Non-current liabilities | ||||
| Total liabilities | 53,851,583.03 | 63,722,353.69 | 49,632,204.32 | 73,608,535.10 |
| Minority shareholders' equity | ||||
| Equity attributable to | 99,534,162.47 | 146,499,202.29 | 125,438,865.47 | 155,734,721.19 |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| shareholders of the parent company | ||||
| Share of net assets calculated at the percentage of shares held | 49,767,081.24 | 73,249,601.15 | 62,719,432.74 | 77,867,360.60 |
| Adjusted events | -119,632.47 | -807,613.93 | -143,018.70 | -785,497.31 |
| --Goodwill | ||||
| --Unrealized profits from internal transactions | -119,632.47 | -807,613.93 | -143,018.70 | -785,497.31 |
| - -Others | ||||
| Book value of equity investment in joint ventures | 49,647,448.77 | 72,441,987.22 | 62,576,414.04 | 77,081,863.29 |
| Fair value of equity investment in joint ventures with public offers | ||||
| Operating income | 130,051,841.60 | 385,633,598.42 | 108,952,145.74 | 401,650,158.77 |
| Financial expenses | 309,206.05 | -691,850.23 | -379,571.01 | 78,053.73 |
| Income tax expense | 1,731,157.25 | 5,678,971.20 | 1,757,999.77 | 1,083,664.74 |
| Net profit | 14,095,297.00 | 20,764,481.10 | 14,758,770.75 | 31,264,470.98 |
| Net profit from discontinued operations | ||||
| Other comprehensive income | ||||
| Total comprehensive income | 14,095,297.00 | 20,764,481.10 | 14,758,770.75 | 31,264,470.98 |
| Dividends received from joint ventures in this year | 20,000,000.00 | 15,000,000.00 | ||
(3). Main financial information of important associates
√Applicable □Non-applicable
Unit: Yuan Currency: RMB
| 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 | 73,213,573.15 | 74,131,960.92 | ||
| Non-current assets | 4,510,410.28 | 6,611,365.37 | ||
| Total assets | 77,723,983.43 | 80,743,326.29 | ||
| Current liabilities | 58,779,523.07 | 53,467,156.43 | ||
| Non-current liabilities | ||||
| Total Liabilities | 58,779,523.07 | 53,467,156.43 | ||
| Minority shareholders' equity | ||||
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| Equity attributable to shareholders of the parent company | 18,944,460.36 | 27,276,169.86 | ||
| Share of net assets calculated by the percentage of shares held | 7,388,339.54 | 10,637,706.25 | ||
| Adjusted events | ||||
| --Goodwill | ||||
| --Unrealized profits from internal transactions | ||||
| --Others | ||||
| Book value of equity investment in associates | 7,388,339.54 | 10,637,706.25 | ||
| Fair value of equity investment in associates with public offers | ||||
| Operating income | 89,926,195.13 | 115,226,112.33 | ||
| Net profit | 1,206,700.35 | 207,151.61 | ||
| Net profit from discontinued operations | ||||
| Other comprehensive income | ||||
| Total comprehensive income | 1,206,700.35 | 207,151.61 | ||
| Dividends received from associates in this year | ||||
(4). Summary of financial information of unimportant joint ventures and associates
□Applicable √Non-applicable
(5). Notes to significant restrictions on the ability of joint ventures or associates to transfer fundsto the Company
□Applicable √Non-applicable
(6). Excess losses suffered by joint ventures or associates
□Applicable √Non-applicable
(7). Unconfirmed commitments related to joint venture investment
□Applicable √Non-applicable
(8). Contingent liabilities related to investment in joint ventures or associates
□Applicable √Non-applicable
4. Important joint operations
□Applicable √Non-applicable
5. Equity in structured entities not included in the scope of consolidated financial statementsNotes to structured entities not included in the scope of the consolidated financial statements:
□Applicable √Non-applicable
6. Others
□Applicable √Non-applicable
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
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 Risk Management Committee in accordance with the policies approved by the Board of Directors.Risk Management Committee will identify, evaluate and avoid related risks by maintaining a closecooperation with other business units within the Company. The internal audit division conducts regularaudits on risk management control and procedures, and reports the audit results to the AuditingCommittee of the Company.
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 monetary funds, notes receivable,accounts receivable, accounts receivable financing, other receivables, as well as those debt instrumentinvestments and derivative financial assets that are not included in the scope of impairment assessmentand are measured at fair value and whose changes are included in the current profit and loss. On thebalance sheet date, the book value of the Company's financial assets has represented its maximum creditrisk exposure.
The monetary funds owned by the Company are mainly bank deposits deposited in well-reputatedstate-owned banks with high credit ratings and other large and medium-sized listed banks. In the opinionof the Company, there is no significant credit risk, and there will be almost no critical loss caused bybank defaults.
The Company lays down relevant policies to control credit risk exposure in respect of notesreceivable, accounts receivable, financing receivables and other receivables. The Company assesses thecredit profile of each customer and defines the credit term based on its financial standing, the possibilityof obtaining guarantees from a third party, credit record and other factors such as current marketcondition. The Company will monitor the credit record of each customer at regular intervals. For thosefound with poor credit record, the Company will maintain its overall credit risk to the extent controllableby written demand, shortening or cancellation of credit term.
(2) Liquidity risk
Liquidity risk refers to the risk of a shortage of funds when an enterprise fulfills its obligation ofsettlement by cash or other financial assets.
The Company's policy is to ensure that there is sufficient cash to repay the liabilities due. Theliquidity risk is under the concentrated control of the Company's Financial Department. Throughmonitoring the balance of cash and securities cashable at any time and rolling forecasting the cash flowin the next 12 months, the Financial Department ensures that the Company has sufficient funds to repayits debts under all reasonable predictions. And it will continue to monitor whether the Companycomplies with the provisions of the borrowing agreement and obtains commitments from major financialinstitutions to provide sufficient reserve funds to meet its funding needs, whether short term or longterm.
(3) Market risk
The market risk of financial instruments refers to the risk of fluctuation at fair value of financialinstruments or future cash flows with the change of market prices, including exchange rate risk, interestrate risk and other price risks.
1. Interest rate risk
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
The interest rate risk refers to the risk in which the fair value or future cash flow of financialinstruments changes due to the change of market interest rate.Interest-bearing financial instruments applicable to fixed interest rates and floating interest ratesbring the Company up to fair value interest rate risk and cash flow interest rate risk respectively. TheCompany ascertains the ratio of fixed interest rates to floating interest rate instruments based on themarket environment, and maintains an appropriate portfolio of fixed and floating interest rateinstruments at regular intervals. If necessary, the Company will adopt interest rate swap instruments tohedge interest rate risk.On December 31, 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 15,245,911.07. 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, tolower the exchange rate risk. In addition, the Company may also sign forward foreign exchangecontracts or currency swap contracts to avoid exchange rate risks. In the current period and the previousperiod, the company did not sign any forward foreign exchange contracts or currency swap contracts.
The exchange rate risk faced with by the Company is mainly from financial assets and liabilities inUSD. The amounts of assets and liabilities in foreign currencies and converted into RMB are presentedas below:
| Item | Balance at the end of the period | Balance at the beginning of the year | ||||||
| US dollars | Other foreign currencies | Total | US dollars | Other foreign currencies | Total | |||
| Cash and bank balances | 87,084,790.13 | 126,342,546.08 | 213,427,336.21 | 32,195,685.40 | 28,698,091.63 | 60,893,777.03 | ||
| Accounts receivable | 514,439,362.50 | 177,466,695.52 | 691,906,058.02 | 210,244,792.96 | 112,742,504.75 | 322,987,297.71 | ||
| Other Receivables | 65,961.97 | 396,298.95 | 462,260.92 | |||||
| Short-term borrowings | 313,684,440.00 | 313,684,440.00 | ||||||
| Accounts payable | 322,020,826.25 | 55,982,031.64 | 378,002,857.89 | 39,794,482.93 | 35,476,823.21 | 75,271,306.14 | ||
| Other Payables | 5,457.03 | 1,531,828.57 | 1,537,285.60 | |||||
| Total | 1,237,300,837.88 | 361,719,400.76 | 1,599,020,238.64 | 282,234,961.29 | 176,917,419.59 | 459,152,380.88 | ||
On December 31, 2021, if all other variables remain the same, if the exchange rate of RMBagainst any of foreign currencies (principally USD, Euro, CAD, BRL, MYR, SEK, PLN) appreciates ordepreciates by 5%, the Company will Increase or decrease the net profit by RMB 10,628,553.58. In theopinion of the management, 5% can reasonably reflect the reasonable range of possible changes in theexchange rate of RMB against USD in the next year.
3. Other price risks
Other price risk refers to the risk that the fair value or future cash flow of financial instrumentswill fluctuate due to changes in market prices other than exchange rate risk and interest rate risk.
Other price risks exposed to the Company mainly arise from investments in various equityinstruments, and there is a risk of changes in the price of equity instruments.
XI. Disclosure of Fair Values
1. Fair values of the assets and liabilities at the end of the period
√Applicable □Non-applicable
Unit: Yuan Currency: RMB
| Item | Fair value at the end of the period | |||
| Fair value measurement at the first-level | Fair value measurement at the | Fair value measurement at the third-level | Total | |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| second-level | |||||
| I. Constant measurement at fair value | |||||
| (I) Trading Financial Assets | 321,507,846.86 | 321,507,846.86 | |||
| 1. Financial assets at fair value through profit or loss in this period | 321,507,846.86 | 321,507,846.86 | |||
| (1) Investment in debt instruments | |||||
| (2) Investment in equity instrument | |||||
| 3)Derivative Financial Assets | |||||
| 2. Designated financial assets that are measured at fair value and whose changes are included in the current profit and loss | |||||
| (1) Investment in debt instruments | |||||
| (2) Investment in equity instrument | |||||
| (II) Investment in Other Creditor's Rights | |||||
| (III) Investment in Other Equity Instruments | |||||
| (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 | 972,493,168.64 | 972,493,168.64 | |||
| Total assets constantly measured at fair value | 321,507,846.86 | 972,493,168.64 | 1,294,001,015.50 | ||
| (VIII) Transactional financial liabilities | |||||
| 1. Financial liabilities that are measured at fair value and whose changes are included in the current profit and loss |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| Including: issued trading bonds | ||||
| Derivative Financial Liabilities | ||||
| Others | ||||
| 2. Designated Financial Liabilities Measured in Fair Value with Changes Recorded into Current Profit and Loss | ||||
| Total amount of liabilities constantly measured at their fair values | ||||
| II. Non-continuous fair value measurement | ||||
| (1) Holding-for-sale assets | ||||
| Total assets that are not continuously measured at fair value | ||||
| Total liabilities not continuously measured at fair value |
2. Determination basis for the market price of continuous and non-continuous first-level fairvalue measurement projects
□Applicable √Non-applicable
3. Qualitative and quantitative information on the valuation techniques used and importantparameters for continuous and non-continuous second-level fair value measurement items
□Applicable √Non-applicable
4. Continuous and non-sustainable third-level fair value measurement projects, qualitative andquantitative information on valuation techniques and important parameters used
□Applicable √Non-applicable
5. Continuous third-level fair value measurement items, adjustment information between thebook value at the beginning of the period and that at the end of the period and sensitivity analysisof unobservable parameters
□Applicable √Non-applicable
6. Continuous fair value measurement items, if there is a conversion between levels occurred inthe current period, the reasons for the conversion and the policies for determining the time pointof the conversion
□Applicable √Non-applicable
7. Changes in valuation technique in the current period and reasons for the changes
□Applicable √Non-applicable
8. The fair value of financial assets and financial liabilities not measured at fair value
□Applicable √Non-applicable
9. Others
□Applicable √Non-applicable
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
XII. Related Parties and Related-party Transactions
1. The parent company
√Applicable □Non-applicable
Unit： Yuan Currency： HKD
| Name of parent company | Registered address | Nature of business | Registered capital | Percentage of the Company’s shares held by the parent company | Percentage of the Company’s voting rights held by the parent company |
| MECCA INTERNATIONAL HOLDING （HK） LIMITED | Hong Kong | Investment | 1,000,000.00 | 62.94 | 62.94 |
The ultimate controlling party of the Company is Wu Jianshu.
2. Subsidiaries of the Company
More details of the subsidiaries of the Company are available in the notes.
√Applicable □Non-applicable
More details of the subsidiaries of the Company are available in “Note VII. Equity in OtherEntities”.
3. Joint ventures and associates of the Company
More details of the subsidiaries of the Company are available in the note.
√Applicable □Non-applicable
More details of important joint ventures or associates of the Company are available in “Note VII.Equity in Other Entities”.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 |
Other Notes
√Applicable □Non-applicable
4. Other Related Parties
√Applicable □Non-applicable
| Name of Other Related Party | Relationship between Other Related Party and the Company |
| Ninghai Jinsuoer Auto Parts Factory (hereinafter referred to as "Ninghai Jinsuoer") | A company controlled by the niece of the actual controller of the Company |
| Ninghai Saipu Rubber and Plastic Parts Factory (hereinafter referred to as "Ninghai Saipu") | A company controlled by the niece of the actual controller of the Company |
| Ninghai Jinxin Packaging Co., Ltd. (hereinafter referred to as "Ninghai Jinxin") | A company controlled by the young sister of the actual controller of the Company |
| Ninghai Zhonghao Plastic Products Co., Ltd. (hereinafter referred to as "Ninghai Zhonghao") | An officer’s brother-in-law holds 40% of the shares and serves as an executive director of the company |
| Ninghai Xidian Qingqing Plastic Factory (hereinafter referred | A company controlled by the elder |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| to as "Ninghai Qingqing") | 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 |
5. Related party transactions
(1). Related-party transactions of purchase and sale of goods, rendering and acceptance of laborservicesList of purchase of goods/acceptance of labor services
√Applicable □Non-applicable
Unit： Yuan Currency： RMB
| Related party | Related-party transaction | Amount incurred in the current period | Amount incurred in previous period |
| Tuopu Electrical Appliances | Material | 1,470,987.91 | 67,985.88 |
| Ningbo Borgers | Material | 532,406.41 | 11,172,984.21 |
| Ninghai Jinsuoer | Material | 10,727,069.14 | 11,279,423.57 |
| Ninghai Saipu | Material | 2,777,913.09 | 2,352,171.89 |
| Ninghai Jinxin | Material | 15,196,918.89 | 8,944,151.65 |
| Ninghai Zhonghao | Material | 17,114,295.64 | 12,318,377.23 |
| Ninghai Qingqing | Material | 6,296,088.44 | 6,178,391.42 |
| Ningbo Hongke | Material | 90,461,785.31 | 69,767,683.10 |
| Gloyel Intelligent | Equipment | 36,373,136.28 | 575,203.54 |
| Gloyel Motor | Material, equipment | 30,331,884.00 | 33,186,089.13 |
| Gloyel Electrical | labor services | 2,104,843.25 | |
| Total | 213,387,328.36 | 155,842,461.62 |
List of sale of goods/rendering of labor services
□Applicable √Non-applicable
Unit： Yuan Currency： RMB
| 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. | 6,789,828.13 | 5,173,521.78 |
| Ningbo Borgers | Goods, labor services, et al. | 107,941,553.64 | 108,487,714.27 |
| Chongqing Antolin | Goods, labor services, et al. | 13,103,293.72 | 10,605,090.50 |
| Gloyel Intelligent | Goods, labor services, et al. | 51,403.31 | |
| Total | 127,834,675.49 | 124,317,729.86 |
Notes to related-party transactions in the purchase and sale of goods, rendering and acceptance of laborservices
□Applicable √Non-applicable
(2). Related trusteeship management/contracting and entrusted management/outsourcingList of trusteeship management/contracting of the Company:
□Applicable √Non-applicable
Related trusteeship/contracting
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
□Applicable √Non-applicable
List of entrusted management/outsourcing
□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 | 619,266.06 | 619,266.06 |
| Gloyel Motor | Houses and structures | 198,165.14 | 198,165.14 |
| Total | 817,431.20 | 817,431.20 |
The Company as tenant:
√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 |
| Gloyel Electrical | Houses and structures | 3,129,489.91 |
Affiliated leases
□Applicable √Non-applicable
(4). Related guarantees
The Company as guarantor
√Applicable □Non-applicable
Unit：in 10,000 Yuan Currency：RMB
| Guaranteed party | Guaranteed amount | From | Until | Whether the guarantee has been fulfilled |
| Tuopu Poland | 5,417.44 | More details are available in Note 1 | More details are available in Note 1 | NO |
| Tuopu Photovoltaic (Hangzhou Bay) | 6,000.00 | 2021-12-9 | 2033-12-9 | NO |
The Company as guaranteed party
□Applicable √Non-applicable
Notes to related guarantees
√Applicable □Non-applicable
Note 1: For smooth conduct of business operations in Europe, Tuopu Poland sp.z.o.o, ("TuopuPoland") is a wholly-owned subsidiary established by Tuopu Group in Poland in March 2021. It leases7R PROJEKT 35 Sp. z oo ("7R Project Company"), customized industrial plants in Poland (includingoffice areas, production areas and warehouses). According to business practice and actual needs, theCompany provided performance bond for the said lease agreement, and authorized the chairman orauthorized representative to sign the relevant guarantee. The total liability of the letter of guarantee mustnot exceed 7 million euros (about RMB 54.1744 million), and the maturity period covers the entire term
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
of the said lease agreement and five months after its expiration or termination, but no later than August 1,2029.The above guarantees were considered and approved at the fifth session of the Fourth Board ofDirectors.
(16) On 9 December 2021, Tuopu Photovoltaic Technology (Hangzhou Bay) signed a RMB capitalloan contract (NO.: 3302202101100001111) with China Development Bank Ningbo Branch, with a loanamount of RMB 60 million. The term of such loan is from December 9, 2021 to December 9, 2033. Thecompany provided guarantee for Tuopu Photovoltaic Technology under the mortgage of houses andbuildings. As of December 31, 2021, the balance of the long-term loan under the contract is RMB10,000,000, the original value of the property used for mortgage is RMB 45,324,720.72, and the netvalue is RMB 38,989,563.42; the original value of the land used for mortgage is RMB 13,070,562.81,and the net value is RMB 10,107,902.01.
(5). Borrowed funds from related parties
□Applicable √Non-applicable
(6). Asset transfer and debt restructuring of related parties
√Applicable □Non-applicable
(7). Remuneration of key management members
√Applicable □Non-applicable
Unit： Yuan Currency： RMB
| Item | Amount incurred in the current period | Amount incurred in previous period |
| Remuneration from key management members | 15,822,800.00 | 10,694,500.00 |
(8). Other related-party transactions
□Applicable √Non-applicable
6. Accounts receivable and payable of related parties
(1). Items of receivable
√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 | Tuopu Electrical Appliances | 2,990,343.13 | 149,517.16 | 2,638,160.39 | 131,908.02 |
| Accounts receivable | Ningbo Borgers | 18,944,379.66 | 947,218.98 | 29,293,492.21 | 1,464,674.61 |
| Accounts receivable | Chongqing Antolin | 1,933,285.45 | 96,664.27 | 2,326,696.22 | 116,334.81 |
| Other non-current assets | Gloyel Intelligent | 25,273,020.00 | 16,200,000.00 | ||
(2). Items of payable
√Applicable □Non-applicable
Unit: Yuan Currency: RMB
| Item | Related party | Book balance at the end of the period | Book balance at the beginning of the period |
| Accounts payable | Tuopu Electrical | 779,489.56 | 160,365.20 |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| Appliances | |||
| Accounts payable | Ningbo Borgers | 107,350.32 | 5,202,246.00 |
| Accounts payable | Ninghai Jinsuoer | 3,378,282.14 | 5,293,108.17 |
| Accounts payable | Ninghai Saipu | 1,062,872.50 | 1,108,699.60 |
| Accounts payable | Ninghai Jinxin | 6,085,792.76 | 5,191,550.61 |
| Accounts payable | Ninghai Zhonghao | 7,440,703.72 | 4,949,234.52 |
| Accounts payable | Ninghai Qingqing | 2,192,180.40 | 2,135,445.47 |
| Accounts payable | Ningbo Hongke | 40,588,197.56 | 35,419,299.60 |
| Accounts payable | Gloyel Intelligent | 1,009,518.20 | |
| Accounts payable | Gloyel Motor | 7,391,444.20 | 7,111,998.16 |
| Accounts payable | Gloyel Electrical | 106.64 |
7. Related-party commitments
□Applicable √Non-applicable
8. Others
□Applicable √Non-applicable
XIII. Share-based payment
1. General situation of share-based payment
□Applicable √Non-applicable
2. Particulars of equity-settled share-based payment
□Applicable √Non-applicable
3. Particulars of cash-settled share-based payment
□Applicable √Non-applicable
4. Modification and termination of share-based payment
□Applicable √Non-applicable
5. Others
□Applicable √Non-applicable
XIV. Commitments and Contingencies
1. Important commitments
√Applicable □Non-applicable
Important external commitments, nature, and amount on the balance sheet date
1.Important external commitments on the balance sheet date
(1) On 20 July 2021, 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. 1-061-1, the length of maturity of short-term loans is up to 24 months,the revolving 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, 2021, 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 43,074,192.60 respectvely; the original value and net value of land onmortgage is RMB 10,659,462.00 and RMB 6,592,418.56 respectvely.
(2) On 31 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. 1-068-1, the length of maturity of short-term loans is up to 24 months,the revolving use of credit loans is allowed, with the length of each sum up to 12 months. The form of
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
guarantee 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, 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 43,074,192.60 respectvely; the original value and net value of land onmortgage is RMB 10,659,462.00 and RMB 6,592,418.56 respectvely.
(3) On 17 December 2021, the Company signed a loan contract with the Export-Import Bank ofChina Ningbo Branch, with the granted credit line at RMB 300 million, under the loan contract number(2021) Jin Chu Yin (Yong Xin He) No. 1-113, the length of maturity of short-term loans is up to 24months, the revolving use of credit loans is allowed, with the length of each sum up to 12 months. Theform of guarantee is setting houses and structures on mortgage, under the guarantee contract number(2021) Jin Chu Yin (Yong Zui Xin Di) No. 1-018. As of December 31, 2021, the short-term loan balanceunder the contrtact is RMB 300 million, the original value and net value of properties on mortgage isRMB 557,705,718.41 and RMB 498,341,446.04 respectvely; the original value and net value of land onmortgage is RMB 92,039,214.40 and RMB 81,608,103.45 respectvely.
(4) On 27 December 2021, the Company signed a loan contract with the Export-Import Bank ofChina Ningbo Branch, with the granted credit line at RMB 300 million, under the loan contract number(2021) Jin Chu Yin (Yong Xin He) No. 1-117, the length of maturity of long-term loans is up to 24months, the revolving use of credit loans is allowed. The form of guarantee is setting houses andstructures on mortgage, under the guarantee contract number (2021) Jin Chu Yin (Yong Zui Xin Di) No.1-018. As of December 31, 2021, the short-term loan balance under the contract is RMB 300 million, theoriginal value and net value of properties on mortgage is RMB 557,705,718.41 and RMB498,341,446.04 respectvely; the original value and net value of land on mortgage is RMB 92,039,214.40and RMB 81,608,103.45 respectvely.
(5) 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 the
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
proof of default from Administration Committee of Ningbo Economic & Technological DevelopmentZone (NETD).
(6) 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 December 31, 2021, there were bank acceptance notes in asum of RMB 354,415,440.97 under pledge, and the notes payable in a sum of RMB 459,946,336.30were issued.
(7) Tuopu Acoustics Vibration signed the note pool cooperation agreement 33100000 Zhe ShangPiao Chi Zi 2017 No.01472, the asset pool cooperation agreement 33100000 Zhe Shang Zi Chan Chi Zi2017 No.01472, and the asset pool pledge guarantee contract 33100000 Zhe Shang Zi Chan Chi Zi 2017No.01473 with China Zheshang Bank Beilun Branch. As of December 31, 2021, there were bankacceptance notes in a sum of RMB 315,417,218.51 under pledge , and the notes payable in a sum ofRMB 462,925,322.70 were issued.
(8) On July 5, 2018, Tuopu Parts signed the note pool cooperation and note pledge agreement05101PC20188002 with Bank of Ningbo Beilun branch, and 7 November 2018, signed the additionalnote pool cooperation and note pledge agreement 05101PC20188002 with Bank of Ningbo Beilunbranch. As of December 31, 2021, there were bank acceptance notes in a sum of RMB 177,161,261.91under pledge, the amount of commercial acceptance notes was RMB 10,960,000.00 and the notespayable in a sum of RMB 215,160,842.99were issued.
(9) Tuopu Intelligent Brake signed the note pool cooperation agreement 9411202000000006 andthe maximum pledge contract ZZ9411202000000006 with SPDB Ningbo Development ZoneSub-branch. As of December 31, 2021, the bank acceptance notes in a sum of RMB 17,310,500.00 wereput under pledge and the notes payable in a sum of RMB 15,197,468.44 were issued.
(10) Ningbo Qianhui signed the maximum pledge contract 06001PC20198005 with Bank ofNingbo Ninghai Branch. As of December 31, 2021, there were bank acceptance notes in a sum of RMB13,441,322.75 under pledgeand the notes payable in a sum of RMB 11,810,240.46 were issued.
(11) On August 25, 2021, the Company signed a financial leasing contract with MaxwealthFinancial Leasing Co., Ltd., the leased property is machinery and equipment, the original book value ofthe leased property is RMB 120,303,100, and the net book value of the lease property at the end of 2021is RMB 96,793,100. The financial lease contract number is 2021YYZL0208073-ZL-01, the repaymentprincipal of the financial lease is RMB 100,000,000, the interest is RMB 302,200, and the leaserepayment period is 12 months. As of December 31, 2021, the balance of other current liabilities underthe contract is RMB 66.6667 million.
(12) On 27 August 2021, the Company signed a leaseback contract with Ping An InternationalFinancial Leasing Co., Ltd., the leased property is machinery and equipment, the original book value ofthe lease property is RMB 44.689 million, the net book value of the leased object at the end of 2021 isRMB 41.4532 million. The leaseback contract number is 2021PAZL0101959-ZL-01. The repaymentprincipal of this financial lease is RMB 49.500 million, the interest is RMB 108,000, and the leaserepayment period is 12 months. As of December 31, 2021, the balance of other current liabilities underthe contract is RMB 35.3009 million.
(1) On 18 November 2021, the company signed leaseback contract with Ping An InternationalFinancial Leasing Co., Ltd., the leased property is machinery and equipment. The original purchase
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
value of the leased property is RMB 116.5203 million, and the net book value of the leased property atthe end of 2021 is RMB 113.6973 million. The leaseback contract number is 2021PAZL0102607-ZL-01.The real estate mortgage contract was further signed, the mortgage contract number is2021PAZL0102607-DY-01, the original value of the property under mortgage is RMB 50,754,271.44,and the net value is RMB 20,858,402.07; the original value of the land used for mortgage is RMB8,793,892.34, and the net value is RMB 6,214,133.93. The repayment principal of the financial lease isRMB 100,000,000, the interest is RMB 216,000, and the lease repayment period is 12 months. As ofDecember 31, 2021, the balance of other current liabilities under the contract is 90.4421 million yuan.
(14) The Company and Ping An Bank Ningbo Branch signed a special agreement on the creditextension business (Ping Yin Bei Lun Piao Chi Zi 20210913 No.001) and Additional to the MaximumAmount Pledge Contract for Bill Pool Credit Business (Yin Bei Lun Piao Chi Zhi Bu Zi 20210914No.001). As of December 31, 2021, there were bank acceptance notes in a sum of RMB 99,000,000.00under pledge, and the notes payable of RMB 31,451,451.22 were issued.
(15) The Company signed Bank of Ningbo signed the additional clauses of the Asset PoolBusiness Cooperation and Pledge Agreement (No.: 0510100014087) and the Master Agreement forAsset Pool Billing Pass (No.: 05100AT21B7KKBM). As of December 31, 2021, there were bankacceptance notes in a sum of RMB 149,500,000.00 under pledge, and the notes payable of RMB149,488,818.92 were issued.
(16) On 9 December 2021, Tuopu Photovoltaic Technology (Hangzhou Bay) signed a RMBcapital loan contract (NO.: 3302202101100001111) with China Development Bank Ningbo Branch,with a loan amount of RMB 60 million. The term of such loan is from December 9, 2021 to December 9,2033. The company provided guarantee for Tuopu Photovoltaic Technology under the mortgage ofhouses and buildings. As of December 31, 2021, the balance of the long-term loan under the contract isRMB 10,000,000, the original value of the property used for mortgage is RMB 45,324,720.72, and thenet value is RMB 38,989,563.42; the original value of the land used for mortgage is RMB 13,070,562.81,and the net value is RMB 10,107,902.01.
2. Contingencies
(1). Important contingencies existing on the balance sheet date
□Applicable √Non-applicable
(2). Even if the Company has no important contingencies to be disclosed, also state:
□Applicable √Non-applicable
3. Others
□Applicable √Non-applicable
XV. Events after the Balance Sheet Date
1. Important non-adjusting events
□Applicable √Non-applicable
2. Profit distribution
√Applicable □Non-applicable
Unit： Yuan Currency： RMB
| Proposed distribution of profits or dividends | 306,368,947.02 |
| Profits or dividends declared after deliberation and approval | 306,368,947.02 |
3. Sales return
□Applicable √Non-applicable
4. Notes to Other Events after the Balance Sheet Date
√Applicable □Non-applicable
1. According to the 2021 profit distribution plan passed at the 18th session of the Fourth Board ofDirectors on April 13, 2022, the Company intends to use the number of shares registered on the date of
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
equity registration for equity distribution as the base number, and distribute it to all registeredshareholders on the date of equity registration at cash dividends of RMB 2.78 (tax included) for every 10shares. The above profit distribution plan is submitted to the 2021 annual general meeting forconsideration.
2. On March 15, 2022, the Company and Antolin (China) Investment Co., Ltd. (hereinafter referredto as "Antonin China" or "Transferor"), the foreign shareholder of Chongqing Antolin Tuopu RoofSystem Co., Ltd. (hereinafter referred to as “Chongqing Antolin”), signed the Share Transfer Agreement(hereinafter referred to as the "Agreement"), the Company intends to acquire 61% shares in ChongqingAntolin held by Antolin China for a consideration of 11,556,120.82 in cash. After this trading,Chongqing Antolin will become a wholly-owned subsidiary of the Company.
VI. Other Significant Events
1. Correction of previous accounting errors
(1). Retrospective restatement
□Applicable √Non-applicable
(2). Prospective application
□Applicable √Non-applicable
2. Debt restructuring
□Applicable √Non-applicable
3. Replacement of assets
(1). Exchange of non-monetary assets
□Applicable √Non-applicable
(2). Exchange of other assets
□Applicable √Non-applicable
4. Annuity plan
□Applicable √Non-applicable
5. Discontinuing operation
□Applicable √Non-applicable
6. Segment information
(1). Determination basis and accounting policies of the reportable segment
□Applicable √Non-applicable
(2). Financial information of the reportable segment
□Applicable √Non-applicable
(3). If the Company has no reportable segments or cannot disclose the total assets and totalliabilities of individual reportable segment, state the reason
□Applicable √Non-applicable
(4). Other notes
□Applicable √Non-applicable
7. Other significant transactions and event that have an impact on investors' decisions
□Applicable √Non-applicable
8. Others
□Applicable √Non-applicable
XVII. Notes to the Main Items of the Financial Statements of the Parent Company
1. Accounts receivable
(1). Disclosure by age
√Applicable □Non-applicable
Unit： Yuan Currency： RMB
| Aging | Book balance at the end of the period |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| Within 1 year | |
| Including: sub-items within 1 year | |
| Within 1 year | 1,646,307,290.12 |
| Subtotal within 1 year | 1,646,307,290.12 |
| 1 to 2 years | 162,512,305.33 |
| 2-3 years | 71,849,161.98 |
| Over 3 years | 45,255,679.40 |
| 3 to 4 years | |
| 4 to 5 years | |
| Over 5 years | 323,215.01 |
| Total | 1,926,247,651.84 |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
(2). Categorical disclosure by provision for bad debts
√Applicable □Non-applicable
Unit： Yuan Currency： RMB
| Category | Balance at the End of the Period | Balance at the Beginning of the Period | ||||||||
| Book Balance | Bad Debt Provision | Book Value | Book Balance | Bad Debt Provision | Book Value | |||||
| Amount | Percentage (%) | Amount | Accrued Proportion (%) | Amount | Percentage (%) | Amount | Accrued Proportion (%) | |||
| Bad debt provision accrued based on single item | ||||||||||
| Including: | ||||||||||
| Bad debt provision accrued based on single item | 1,926,247,651.84 | 100.00 | 147,597,966.28 | 7.66 | 1,778,649,685.56 | 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 | 1,926,247,651.84 | 100.00 | 147,597,966.28 | 7.66 | 1,778,649,685.56 | 1,965,908,204.74 | 100.00 | 124,970,891.78 | 6.36 | 1,840,937,312.96 |
| Total | 1,926,247,651.84 | / | 147,597,966.28 | / | 1,778,649,685.56 | 1,965,908,204.74 | / | 124,970,891.78 | / | 1,840,937,312.96 |
Ningbo Tuopu Group Co., Ltd Annual Report 2021
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 | 1,646,307,290.12 | 82,315,364.51 | 5.00 |
| 1 to 2 years | 162,512,305.33 | 16,251,230.53 | 10.00 |
| 2 to 3 years | 71,849,161.98 | 21,554,748.59 | 30.00 |
| 3 to 5 years | 45,255,679.40 | 27,153,407.64 | 60.00 |
| Over 5 years | 323,215.01 | 323,215.01 | 100.00 |
| Total | 1,926,247,651.84 | 147,597,966.28 | |
Recognition criteria for and notes to bad debt provision by combinations
□Applicable √Non-applicable
If the bad debt provision is made by the general expected credit loss model, e refer to the disclosure ofother receivables:
□Applicable √Non-applicable
(3). Bad debt provision
√Applicable □Non-applicable
Unit： Yuan Currency： RMB
| Category | Balance at the Beginning of the Period | Amount Changed in the Current Period | Balance at the End of the Period | |||
| Provision | Withdrawal or Reversal | Write-off | Other Changes | |||
| Bad debt provision accrued based on combinations | 124,970,891.78 | 22,627,074.50 | 147,597,966.28 | |||
| Total | 124,970,891.78 | 22,627,074.50 | 147,597,966.28 | |||
Significant withdrawal or reversal amount of provision for bad debts in the current period:
□Applicable √Non-applicable
(4). Accounts receivable actually written off in the current period
□Applicable √Non-applicable
Write-off of significant accounts receivable
□Applicable √Non-applicable
(5). Accounts receivable of the top five closing balances collected by debtors
√Applicable □Non-applicable
Unit： Yuan Currency： RMB
| Name of Entity | Balance at the End of the Period | Proportion in Total Accounts Receivable (%) | Bad Debt Provision |
| No.1 | 471,164,614.19 | 24.46 | 23,558,230.71 |
Ningbo Tuopu Group Co., Ltd Annual Report 2021
| No.2 | 280,630,454.47 | 14.57 | 14,031,522.72 |
| No.3 | 264,085,222.96 | 13.71 | 13,204,261.15 |
| No.4 | 231,459,699.38 | 12.02 | 24,088,915.35 |
| No.5 | 151,669,599.61 | 7.87 | 7,583,479.98 |
| Total | 1,399,009,590.61 | 72.63 | 82,466,409.91 |
(6).Accounts receivable derecognized due to the transfer of financial assets
□Applicable √Non-applicable
(7). Amount of assets and liabilities formed by the transfer of accounts receivable and continuedinvolvement
□Applicable √Non-applicable
Other Notes:
□Applicable √Non-applicable
2. Other Receivables
Presentation of items
√Applicable □Non-applicable
Unit： Yuan Currency： RMB
| Item | Balance at the end of the period | Balance at the beginning of the period |
| Interest receivable | ||
| Dividend receivable | 3,719,979.84 | |
| Other Receivables | 132,577,100.62 | 76,146,034.58 |
| Total | 136,297,080.46 | 76,146,034.58 |
Other Notes:
□Applicable √Non-applicable
Interest receivable
(1). Category of interest receivable
□Applicable √Non-applicable
(2). Important late payment interest
□Applicable √Non-applicable
(3). Particulars of bad debt provision
□Applicable √Non-applicable
Other Notes:
□Applicable √Non-applicable
Dividend receivable
(1). Dividend Receivable
√Applicable □Non-applicabl
Unit： Yuan Currency： RMB
| Item (or Invested Entity) | Balance at the end of the period | Balance at the beginning of the period |
| Chongqing Antolin Tuopu Overhead System Co., Ltd. | 3,719,979.84 | |
| Total | 3,719,979.84 |
Ningbo Tuopu Group Co., Ltd Annual Report 2021
(4). Important dividend receivable with an aging over 1 year
□Applicable √Non-applicable
(5). Particulars of bad debt provision
□Applicable √Non-applicable
Other Notes:
□Applicable √Non-applicable
Other Receivables
(1). Disclosure by aging
√Applicable □Non-applicable
Unit： Yuan Currency： RMB
| Aging | Book Balance at the End of the Period |
| Within 1 year | |
| Including: sub-item within 1 year | |
| Within 1 year | 110,672,440.44 |
| Subtotal within 1 year | 110,672,440.44 |
| 1 to 2 years | 19,760,650.00 |
| 2 to 3 years | 13,486,481.71 |
| Over 3 years | 532,900.00 |
| 3 to 4 years | |
| 4 to 5 years | |
| Over 5 years | 288,800.00 |
| Total | 144,741,272.15 |
(2）. Categorical disclosure by provision for bad debts
√Applicable□Non-applicable
Unit： Yuan Currency： RMB
| Nature of Funds | Book balance at the end of the period | Book balance at the beginning of the period |
| Temporary borrowings | 142,648,612.96 | 84,615,981.71 |
| Petty cash funds | 199,202.76 | 88,700.00 |
| Security deposit | 19,250.00 | 19,250.00 |
| Others | 1,874,206.43 | 1,822,775.68 |
| Total | 144,741,272.15 | 86,546,707.39 |
(3). Categorized by the nature of funds
√Applicable □Non-applicable
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 |
Ningbo Tuopu Group Co., Ltd Annual Report 2021
| Phase 3 | ||||
| --Transfer to Phase 2 | ||||
| --Transfer to Phase 1 | ||||
| Provision made in the current period | 1,763,498.72 | 1,763,498.72 | ||
| Reversal in the current period | ||||
| Write-off in the current period | ||||
| Write-off in the current period | ||||
| Other changes | ||||
| Balance on December 31, 2021 | 12,164,171.53 | 12,164,171.53 |
Notes to significant changes in the book balance of other receivables that have changed in the currentperiod:
□Applicable √Non-applicable
Amount of bad debt provision in the current period and the basis for assessing whether the credit risk offinancial instruments has increased significantly:
□Applicable √Non-applicable
(4). Particulars of bad debt provision
√Applicable □Non-applicable
Unit： Yuan Currency： RMB
| 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 | 10,400,672.81 | 1,763,498.72 | 12,164,171.53 | |||||
| Total | 10,400,672.81 | 1,763,498.72 | 12,164,171.53 | |||||
Bad debt provision in the current period with significant amount of withdrawal or reversal:
□Applicable √Non-applicable
(5). Particulars of other receivables actually written off in the current period
□Applicable √Non-applicable
(6). 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 |
Ningbo Tuopu Group Co., Ltd Annual Report 2021
| Shanghai Towin Automotive Technology Co., Ltd. | Temporary borrowings | 59,815,981.71 | 1 to 3 years | 41.33 | 7,294,794.51 |
| Tuopu Poland sp.z.o.o | Temporary borrowings | 58,604,073.13 | Within 1 year | 40.49 | 2,930,203.66 |
| Ningbo Tuopu Automotive Electronics Co., Ltd. | Temporary borrowings | 24,000,000.00 | 1 to 3 years | 16.58 | 1,200,000.00 |
| Liu Hongsong | Other | 455,000.00 | 2 to 5 years | 0.31 | 264,900.00 |
| Li Dongmei | Other | 255,800.00 | Over 3 to 5 years | 0.18 | 247,800.00 |
| Total | / | 143,130,854.84 | / | 98.89 | 11,937,698.17 |
(7). Accounts receivable related to government subsidies
□Applicable √Non-applicable
(8). Other accounts receivable derecognised due to transfer of financial assets
□Applicable √Non-applicable
(9). Amount of assets and liabilities generated due to transfer of other receivables and continuedinvolvement
□Applicable √Non-applicable
Other Notes:
□Applicable √Non-applicable
Ningbo Tuopu Group Co., Ltd. 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 | 6,841,453,344.78 | 6,841,453,344.78 | 3,921,478,960.48 | 3,921,478,960.48 | ||||||
| Investments in joint ventures and associates | 129,477,775.53 | 129,477,775.53 | 150,295,983.58 | 150,295,983.58 | ||||||
| Total | 6,970,931,120.31 | 6,970,931,120.31 | 4,071,774,944.06 | 4,071,774,944.06 | ||||||
(1). Investments in subsidiaries
√Applicable □Non-applicable
Unit： Yuan Currency： RMB
| 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 | ||||
| Wuhan Tuopu | 150,000,000.00 | 150,000,000.00 | ||||
| Pinghu Tuopu | 208,000,000.00 | 208,000,000.00 | ||||
| Shanghai Towin | 10,000,000.00 | 10,000,000.00 | ||||
| Tuopu Industrial Automation | 17,700,000.00 | 17,700,000.00 | ||||
| Tuopu Investment | 100,000.00 | 27,170,000.00 | 27,270,000.00 | |||
| Yuxiang E-commerce | 3,500,000.00 | 200,000.00 | 3,700,000.00 |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| Tuopu International | ||||||
| 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 Mechatronic System | 1,457,800,000.00 | 980,600,000.00 | 2,438,400,000.00 | |||
| Tuopu Brasil | 32,623,203.41 | 32,623,203.41 | ||||
| Jinzhong Tuopu | 13,800,000.00 | 13,800,000.00 | ||||
| Shenzhen Towin | 53,653,013.09 | 53,653,013.09 | ||||
| Zhejiang Towin | 571,320,000.00 | 571,320,000.00 | ||||
| Sichuan Maigao | 290,000,000.00 | 290,000,000.00 | ||||
| Hunan Tuopu | 50,000,000.00 | 203,800,000.00 | 253,800,000.00 | |||
| Tuopu USA, LLC | 35,091,204.56 | 35,091,204.56 | ||||
| Tuopu Chassis | 107,500,000.00 | 234,402,468.30 | 341,902,468.30 | |||
| Tuopu Thermal Management | 33,000,000.00 | 1,359,400,000.00 | 1,392,400,000.00 | |||
| Huzhou Tuopu | 32,220,000.00 | 32,220,000.00 | ||||
| Tuopu Poland sp.z.o.o | 18,000,000.00 | 18,000,000.00 | ||||
| Shanghai Tuopuyu | 16,500,000.00 | 16,500,000.00 | ||||
| Xi’an Tuopu | 12,331,916.00 | 12,331,916.00 | ||||
| Total | 3,921,478,960.48 | 2,919,974,384.30 | 6,841,453,344.78 |
(2). Investments in joint ventures and associates
√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 | 62,576,414.03 | 7,071,034.74 | 20,000,000.00 | 49,647,448.77 | ||||||||||||
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| Electrical Appliances | |||||||||||
| Ningbo Borgers | 77,081,863.30 | 10,360,123.92 | 15,000,000.00 | 72,441,987.22 | |||||||
| Subtotal | 139,658,277.33 | 17,431,158.66 | 35,000,000.00 | - | 122,089,435.99 | ||||||
| II. Associates | |||||||||||
| Antolin Tuopu | 10,637,706.25 | 470,613.13 | 3,719,979.84 | 7,388,339.54 | |||||||
| Subtotal | 10,637,706.25 | 470,613.13 | 3,719,979.84 | - | 7,388,339.54 | ||||||
| Total | 150,295,983.58 | 17,901,771.79 | 38,719,979.84 | - | 129,477,775.53 | ||||||
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
4. Operating Income and Operating Cost
√Applicable □Non-applicable
Unit： Yuan Currency： RMB
| Item | Amount incurred in the current period | Amount incurred in previous period | ||
| Income | Cost | Income | Cost | |
| Main business operations | 5,618,865,696.60 | 4,436,557,763.66 | 3,596,392,949.37 | 2,699,235,104.32 |
| Other business operations | 335,067,815.70 | 253,124,398.60 | 216,195,678.50 | 135,286,014.40 |
| Total | 5,953,933,512.30 | 4,689,682,162.26 | 3,812,588,627.87 | 2,834,521,118.72 |
(2). Income generated by contracts
□Applicable √Non-applicable
(3). Notes to discharge of obligations
□Applicable √Non-applicable
(4). Notes to allocation to remaining discharge of obligations
□Applicable √Non-applicable
5. Investment income
√Applicable □Non-applicable
Unit： Yuan Currency： RMB
| Item | Amount incurred in the current period | Amount incurred in previous period |
| Long-term equity investment income measured by cost method | 150,000,000.00 | |
| Long-term equity investment income measured by equity method | 17,901,771.79 | 25,080,033.26 |
| Investment income from disposal of long-term equity investment | -12,827,681.96 | |
| Investment income of trading financial assets during the holding period | ||
| Dividend income from other equity instrument investments during the holding period | ||
| Interest income from debt investment during the holding period | ||
| Interest income from other debt investments during the holding period | ||
| Investment income from disposal of trading financial assets | ||
| Investment income from the disposal of other equity instrument investments | ||
| Investment income from disposal of debt investments | ||
| Investment income from the disposal of other debt investments | ||
| Income from debt restructuring | ||
| Investment income from wealth management products | 17,563,635.87 | 18,164,183.51 |
| Total | 35,465,407.66 | 180,416,534.81 |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
6. Others
□Applicable √Non-applicable
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 | -1,620,899.20 | |
| 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 | 35,898,407.13 | 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 | 17,563,635.87 | |
| 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 | 252,506.50 |
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
| 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 | ||
| 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 | 3,575,775.34 | |
| Other gains and losses items that fit the definition of non-recurring gains and losses | ||
| Less: Impact of income tax | 8,942,931.42 | |
| Impact of minority equity | 67,081.00 | |
| Total | 46,659,413.22 |
For items defined as non-recurring gains and losses according to the No. 1 Explanatory Announcementon Information Disclosure for Companies Offering Their Securities to Public - Non-recurring Gains andLosses, or non-recurring gains and losses items listed in the said document defined as recurring ones,state the reasons.
□Applicable √Non-applicable
2. ROE and EPS
√Applicable □Non-applicable
| Profit for the reporting period | Weighted Average ROE (%) | EPS | |
| Basic EPS | Diluted EPS | ||
| Net profit attributable to common shareholders of the Company | 10.35 | 0.93 | 0.93 |
| Net profit attributable to common shareholders of the Company after deducting non-recurring gains and losses | 9.87 | 0.88 | 0.88 |
3. Differences between international and Chinese accounting standards
□Applicable √Non-applicable
4. Others
□Applicable √Non-applicable
Ningbo Tuopu Group Co., Ltd. Annual Report 2021
Chairman: Wu JianshuDate of Submission to Board of Directors: April 15, 2022
Revisions
□Applicable √Non-applicable