Stock Code:603529 Abbreviation: Aima Technology
AIMA TECHNOLOGY GROUP CO., LTD.
2021 Annual Report
Letter to ShareholdersDear Shareholders:
In 1999, Ms. Duan Hua and I jointly founded Taimei Bicycle Business, former Aima Technology. Its growthover 20 years can be described with three major phases: (1) transformation from trading to manufacture (1999-2004), and from wholesale and retail of bicycles to production and management of bicycles; (2) transformationfrom bicycle to electric vehicle (2004-2019), and from production and management of bicycles to developmentand manufacture of electric two-wheel vehicles with self-owned brands; (3) transformation from R&D andmanufacture of electric two-wheel vehicle to digital and smart technological company (2019 to date).TheCompany continues to promote change & transformation, and is committed to becoming the world's leadingplatform-based technology company that provides green and convenient travel solutions. The year 2021 is thefirst year after Aima Technology was public-listed, and is also the milestone year in its development history, andwill start the new development era of Aima Technology.Electric two-wheel vehicle is important short-distance transportation and production tool for Chineseresidents. This industry originated, grew rapidly, and became flourishing in China. A complete industry chain hasbeen formed and relevant products are entering international market after two-decade’s development. In thepast year, the Company, strategically, has deeply developed the market by adhering to its strategic objective tofocus on two-wheel vehicles, expand on multi-wheel vehicles, build around travel, and continue transformation;and also adhering to the strategic axis of “Customer-Centricity, Outstanding Products, Market Cultivation, andDiligent Operations”. The Company has firmly progressed in the transformation to becoming a digital and smarttechnological company. During last year the Company closely cooperated with its suppliers, dealers, staff andstakeholders to build the value chain and sustainable industrial ecosystem, and jointly overcome the adverseimpact of COVID-19. Operationally, the Company has made great efforts in improvement of product power,channel capacity and capability, brand power, technological power, productivity, operational capacity, andachieved significant financial performance. In 2021, the Company recorded revenue of RMB 15,398,710,870.72,representing a year-on-year increase of 19.33%, net profit of RMB 667,721,279.19, representing a year-on-yearincrease of 9.49%, and the profit attributable to owners of the parent of RMB 663,998,092.90, representing ayear-on-year increase of 10.94%. As of 31 December 2021, the total assets of the Company were RMB13,396,944,911.18, an increase of 40.16%, and the net assets attributable to owners of the parent of RMB4,974,827,390.92, an increase of 89.17% compared with the end of last year.
Differentiation, high-end orientation, intelligence and internationalization will be the development trend offuture electric two-wheel vehicle industry. Smart technology and networking technology will become the publictechnologies of the industry. The Company will monitor industry trend; catch industry opportunity; answer touser’s demand; lead innovative development; enhance research, development and application of newtechnologies, new materials and new processes; continually promote marketing, manufacture, decision-making,management and coordination with digital and smart technologies, and achieve its overall empowerment in allaspects.
Based on the operating performance and overall financial condition of the Company in 2021, the board ofdirectors has proposed the profit distribution plan and capitalization of capital reserves for the year 2021, takinginto consideration of the Company’s future business development and reasonable return to shareholders. TheCompany will distribute a cash dividend of RMB 5.00 (tax included) and issue 4 shares converted by capitalreserve, for every 10 shares held by all shareholders of the Company before 30 June 2022, based on the totalshare capital on the registration date. This plan has been submitted to 2021 annual general meeting forconsideration and approval.
We respect the market, respond to our customers, and reward our shareholders. The Company’s excellentperformance is the best return to shareholders, employees and the public. We insist on creating long-term valuefor our shareholders, just like we uphold the belief that “Customer-Centricity”. We are so grateful of allshareholders for the long journey we have taken together, and I thank you all for the long-lasting support andtrust! Aima Technology will cooperate with our shareholders, stick to our core business values, i.e. Customer-Centricity, Hard-Working, Honesty & Integrity, and Openness & Innovation. We will continually develop our mainbusiness and strive to become the leader in providing green and convenient transportation solutions for the world.
I hereby express my gratitude for the staff and management of the Company because it is the teamworkand solidarity of everyone that drives the progress. Those areas of progress are also inseparable from the long-term support and acceptance from our shareholders, customers and suppliers, to whom I also owed a bigappreciation!
Chairman of the Board:
April 15, 2022
Important NoticeI. The Board of Directors (the “Board”), the Board of Supervisors, the directors, the supervisors and
senior executives of the Company warrant that there are no false representations or misleadingstatements contained in, or material omissions from, this report; and jointly and severally accept fullresponsibility for the truthfulness, accuracy and completeness of the information contained in thisreport.II. All members of the Board attended the Board Meeting.III. Ernst & Young Hua Ming LLP audited and issued a standard unqualified opinion on the annual
financial statements of the Company.IV. Zhang Jian, representative of the Company, Zheng Hui, person in charge of accounting operation,and head of Accounting Department, make representations in respect of the truthfulness, accuracyand completeness of the financial statements contained in the annual report.V. Proposal for profit distribution and proposal for the capitalization of capital reserve during the
reporting period approved by the BoardUpon the audit by Ernst & Young Hua Ming LLP, the Company recorded the profit attributable to owners ofthe parent of RMB 663,998,092.90, and the parent company recorded the net profit of RMB 467,275,778.15 in2021. By 31 December 2021, the undistributed accumulated profit of the Company amounted to RMB1,547,164,343.56. Pursuant to the resolution at the 25th meeting of the fourth session of the Board, the Companyintends to take the total shares on the registration date as the basis to execute the profit distribution andcapitalization of capital reserve in year 2021 as below:
1. The Company intends to distribute a cash dividend of RMB 5.00 (tax included) per 10 shares to allshareholders. Based on the total share capital of 410,440,003 shares of the Company so far, the cash dividendto be distributed as above will be RMB 205,220,001.50 in total (tax included). The cash dividend of the Companyin this year accounts for 30.91% in the net profit attributable to common shareholders of the Company. After theprofit distribution, the remaining balance of undistributed profit will be accumulated for further distribution in theyears to come.
2. The Company intends to issue 4 shares converted by capital reserve, per 10 shares to all shareholders.Based on the total share capital of 410,440,003 shares of the Company so far, the total shares of the Companywill increase to 574,616,004 shares after this conversion (the total share capital of the Company is based on thefinal registration result of China Securities Depository and Clearing Corporation Limited Shanghai Branch, incase of the rounding differences if any).
Before the equity registration date of equity distribution, if the total equity of the Company changes due toequity-based incentives, repurchase and cancellation of shares granted by equity-based incentives and othermatters, the Company intends to maintain the ratio of distribution and conversion unchanged, andcorrespondingly adjust the amount of profit distribution and capital reserve capitalization. This matter needs tobe submitted to the 2021 annual general meeting of the Company for consideration.VI. Risk relating to forward-looking statements
√Applicable ?Not applicable
The future plan, development strategy and other forward-looking statements contained in the report do notconstitute any substantive commitments to investors of the Company. Investors should be fully aware of therelevant risks and the difference among plan, forecast and commitments, and pay attention to investment risk.VII. Whether controlling shareholder and its affiliated parties occupy fund on a non-operating purposeNoVIII. Whether there was any violation of regulations, decisions or procedures in relation to provisions ofexternal guaranteesNoIX. Whether over half of board members cannot guarantee the truthfulness, accuracy and completenessof the annual report declared by the CompanyNoX. Significant risk notice
In the reporting period, there was no significant risk with material impact on the production and managementof the Company. The Company had described in details relevant risks that may face in the course of productionand operation in the report. Please refer to Section 3, VI. (IV)Possible risks.XI. Other?Applicable √Not applicable
Table of Contents
Section 1 | Definition |
Section 2 | Company Profile and Key Financial Indexes |
Section 3 | Discussion and Analysis of the Management |
Section 4 | Corporate Governance |
Section 5 | Environmental and Social Responsibility |
Section 6 | Significant Events |
Section 7 | Changes in Common Shares and Information about Shareholders |
Section 8 | Preferred Shares |
Section 9 | Corporate Bonds |
Section 10 | Financial Report |
Documents Available for Reference | (I) Full text and Abstract of the Company’s Annual Report signed by the legal representative of the Company and stamped by the Company; |
(II) Financial statements signed by the legal representative, the Financial Controller, and the head of the accounting department (accounting supervisor) and stamped by the Company; | |
(III) The originals of all the Company’s documents and announcements disclosed on newspapers designed by China Securities Regulatory Commission during the reporting period. |
Section 1 DefinitionI. DefinitionIn this report, unless otherwise stated in the context, the following terms have the following meanings:
Definition of common terms | ||
Aima Technology /Aima /Company/the Company /the Group /Aima Group | refers to | Aima Technology Group Co., LTD. |
Changxing Dingai | refers to | Changxing Dingai Investment Management Partnership (Limited Partnership) |
Guangdong Aima | refers to | Guangdong Aima Vehicle Technology Co., Ltd, a subsidiary of Aima Technology |
Jiangsu Aima | refers to | Jiangsu Aima Vehicle Technology Co., Ltd, a subsidiary of Aima Technology |
Aima Nanfang | refers to | Aima Nanfang Co., Ltd., a subsidiary of Aima Technology |
Tianjin Aima/Tianjin Vehicle | refers to | Tianjin Aima Vehicle Technology Co., Ltd., a subsidiary of Aima Technology |
Zhejiang Aima | refers to | Zhejiang Aima Vehicle Technology Co., Ltd., a subsidiary of Aima Technology |
Henan Aima | refers to | Henan Aima Vehicle Co., Ltd., a subsidiary of Aima Technology |
Aima Sports/Tianjin Sports | refers to | Tianjin Aima Sports Goods Co., Ltd., a subsidiary of Aima Technology |
Guangxi Aima | refers to | Guangxi Aima Vehicle Co., Ltd., a subsidiary of Aima Technology |
Tianjin Suiwanwan | refers to | Tianjin Suiwanwan Cultural Communication Co., Ltd., a subsidiary of Aima Technology |
Tianjin Jinge | refers to | Tianjin Jinge Industrial Design Co., Ltd., a subsidiary of Aima Technology |
Xiaopa Electric Technology /Xiaopa Technology | refers to | Xiaopa Electric Technology (Shanghai) Co., Ltd., a subsidiary of Aima Technology |
Wuxi Zhuoyue | refers to | Wuxi Zhuoyue Industrial Design Co., Ltd., a subsidiary transferred by Aima Technology in the period of report |
Sichuan Aima Technology | refers to | Sichuan Aima Technology., Ltd., a subsidiary of Aima Technology |
Aima Share | refers to | Tianjin Aima Share Technology Services Co., Ltd., a subsidiary of Aima Technology |
Xiaoma Network | refers to | Tianjin Xiaoma Network Technology Co., Ltd., a subsidiary of Aima Technology |
Tianjin Tianli | refers to | Tianjin Tianli Electric Bicycle Co., Ltd., a subsidiary of Aima Technology |
Chongqing Aima | refers to | Aima Technology (Chongqing) Co., Ltd., a subsidiary of Aima Technology |
Hainan Aima | refers to | Aima Technology (Hainan) Co., Ltd., a subsidiary of Aima Technology |
Chongqing Vehicle | refers to | Chongqing Aima Vehicle Technology Co., Ltd., a subsidiary of Aima Technology |
Zhejiang Technology | refers to | Aima Technology (Zhejiang) Co., Ltd., a subsidiary of Aima Technology |
Taizhou Aima | refers to | Taizhou Aima Vehicle Manufacture Co., Ltd., a subsidiary of Aima Technology |
Ningbo Venture Capital | refers to | Aima Growth Venture Capital (Ningbo) Co., Ltd., a subsidiary of Aima Technology |
Shenzhen Zhixing | refers to | Shenzhen Aima Zhixing Technology Co., Ltd., a subsidiary of AIMA TECHNOLOG |
Zhejiang Beisite | refers to | Zhejiang Beisite Supply Chain Management Co., Ltd., a subsidiary of Aima Technology |
Lishui Vehicle | refers to | Lishui Aima Vehicle Technology Co., Ltd., a subsidiary of Aima Technology |
Suoteng Technology | refers to | Suoteng Technology Hong Kong Co., Ltd., a subsidiary of Aima Technology |
Tianjin Jiema | refers to | Tianjin Jiema Electric Technology Co., Ltd., a company in which Aima Technology holds shares |
Today Sunshine | refers to | Zhejiang Today Sunshine New Energy Vehicle Co., Ltd., a company in which Aima Technology holds shares |
Shandong Geling | refers to | Shandong Geling Electric Vehicle Co., Ltd., a company in which Aima Technology holds shares |
Taizhou Jinfu | refers to | Taizhou Jinfu Venture Capital Partnership (Limited Partnership),a company in which Aima Technology holds shares |
Aidebang | refers to | Shandong Aidebang Intelligent Technology Co., Ltd., a company in which Taizhou Jinfu holds shares |
Beijing Zhongzhong | refers to | Beijing Zhongzhong Travel Technology Co., Ltd., a company in which Aima Technology holds shares |
CITIC Investment | refers to | CITIC Securities Investment Co., Ltd. |
GoldStone Zhiyu | refers to | GoldStone Zhiyu Equity Investment (Hangzhou) Partnership (Limited Partnership) |
GoldStone Haofeng | refers to | GoldStone Haofeng Equity Investment (Hangzhou) Partnership (Limited Partnership) |
Three Gorges GoldStone | refers to | Three Gorges GoldStone (Shenzhen) Equity Investment Fund Partnership (Limited Partnership) |
New National Standard | refers to | GB17761-2018 Safety Technical Specification for Electric Bicycle |
CRSC | Refers to | China Securities Regulatory Commission |
SSE | refers to | Shanghai Stock Exchange |
Company Law | refers to | Company Law of the People’s Republic of China |
Securities Law | refers to | Securities Law of the People’s Republic of China |
RMB, RMB’0000 | refers to | Expressed in the Chinese currency of RMB Expressed in tens of thousands of RMB |
Articles of Association | refers to | Articles of Tianjin Aima Technology Co., Ltd. |
Reporting Period | refers to | January 1, 2021 to December 31, 2021 |
Same period of last year | refers to | January 1, 2020 to December 31, 2020 |
Electric two-wheel vehicles | refers to | Electric two-wheel vehicles contain “electric bicycles” defined according to the standard Safety Technical Specification for Electric Bicycle (GB17761-2018) and “electric moped” and “electric motorcycle” with two wheels defined according to Technical Terms of Motorcycle and Moped Part 1: Type of Vehicle (GB/T5359.1-2019). |
Electric two-wheel motorcycle | refers to | “Electric moped” and “electric motorcycle” with two wheels defined according to Technical Terms of Motorcycle and Moped Part 1: Type of Vehicle (GB/T5359.1-2019). |
Section 2 Company Profile and Key Financial Indexes
I. Company’s Information
Chinese name | 爱玛科技集团股份有限公司 |
Abbreviation of Chinese name | 爱玛科技 |
English name | Aima Technology Group Co.,Ltd. |
Abbreviation of English name | AIMA |
Legal representative | Zhang Jian |
II. Contact Information
Board Secretary | Securities Representative | |
Name | Wang Chunyan | Li Xin, Yang Fei |
Address | 22/F, Global Financial Center, No. 2 Dagu North Road, Heping District, Tianjin City | 22/F, Global Financial Center, No. 2 Dagu North Road, Heping District, Tianjin City |
Tel | 022-5959 6888 | 022-5959 6888 |
Fax | 022-5959 9570 | 022-5959 9570 |
amkj@aimatech.com | amkj@aimatech.com |
III. General Company Information
Registered address | No. 5 Aima Road, South Area, Jinghai Economic Development Area, Tianjin City |
Changes of registered address | Not applicable |
Office address | No. 5 Aima Road, South Area, Jinghai Economic Development Area, Tianjin City |
Zip code | 301600 |
Website | www.aimatech.com |
amkj@aimatech.com |
IV. Information Disclosure and Place of Preparation
Media and websites where this Report is disclosed | Securities Times, Securities Daily, China Securities Journal,Shanghai Securities News |
Stock exchange website where this Report is disclosed | http://www.sse.com.cn |
Place where this Report is lodged | The Securities Department of the Company |
V. Stock Profile
Stock profile | ||||
Category of stock | Stock exchange | Abbreviation of stock | Stock code | Abbreviation of stock before change |
A share | Shanghai Stock Exchange | Aima Technology | 603529 | Not applicable |
VI. Other Relevant Information
Accounting firm engaged by the Company (domestic) | Name | Ernst & Young Hua Ming LLP |
Office address | 16/F Ernst & Young Building, Eastern Square, No. 1 Dongchangan Street, Dongcheng District, Beijing City | |
Signed by the Accountants | Zhang Jiong, Zhang Bin | |
Sponsor that exercised supervision over the Company in the Reporting Period | Name | CITIC Securities Co., Ltd. |
Office address | CITIC Securities Building, No. 48 Liangmaqiao Road, Chaoyang District, Beijing City | |
Name of sponsor representative signing | Luan Peiqiang, Qin Guoan | |
Period of continual direction and supervision | June 15, 2021 to December 31, 2023 |
VII. Major Accounting Data and Financial Indexes in Recent Three Years(I) Major accounting data
In: Yuan currency: RMB
Major accounting data | 2021 | 2020 | Change (%) | 2019 |
Revenue | 15,398,710,870.72 | 12,904,586,099.11 | 19.33 | 10,423,830,989.66 |
Profit attributable to owners of the parent | 663,998,092.90 | 598,524,584.35 | 10.94 | 521,528,433.85 |
Net profit excluding non-recurring gains or losses attributable to owners of the parent | 616,214,620.89 | 513,503,070.76 | 20.00 | 509,692,003.38 |
Net cash flows from operating activities | 2,094,187,373.97 | 1,154,579,844.77 | 81.38 | 1,413,660,782.04 |
2021 year end | 2020 year end | Change (%) | 2019 year end | |
Net assets attributable to owners of the parent | 4,974,827,390.92 | 2,629,761,352.35 | 89.17 | 2,033,834,831.94 |
Total assets | 13,396,944,911.18 | 9,558,496,657.40 | 40.16 | 7,832,809,565.53 |
(II) Major financial indexes
Major financial indexes | 2021 | 2020 | Change (%) | 2019 |
Basic earnings per share (RMB/share) | 1.79 | 1.77 | 1.13 | 1.54 |
Diluted earnings per share (RMB/share) | 1.79 | 1.77 | 1.13 | 1.54 |
Basic earning per share excluding non-recurring gains or losses (RMB/share) | 1.66 | 1.52 | 9.21 | 1.51 |
Net return on equity, weighted average(%) | 17.46 | 25.65 | Reducing by 8.19 per cent | 29.43 |
Net return on equity excluding non-recurring gains or losses, weighted average(%) | 16.31 | 22.42 | Reducing by 6.11 per cent | 28.86 |
Description of major accounting data and financial indexes of the Company within three years before the endof the reporting period
?Applicable √Not applicableVIII. Difference of Accounting Data under Domestic and International Accounting Standards(I) Difference between net profits in the financial report concurrently disclosed according to internationalaccounting standard and accounting standard of China, and difference between net assets attributableto owners of the parent?Applicable √Not applicable
(II)Difference between net profits in the financial report concurrently disclosed according to overseasaccounting standard and accounting standard of China, and difference between net assets attributableto owners of the parent?Applicable √Not applicable
(III) Description of difference between overseas and domestic accounting standards:
?Applicable √Not applicable
IX. Major Financial Data by Quarter in 2021
In: Yuan currency: RMB
Q1 (Jan. - Mar.) | Q2 (Apr. - Jun.) | Q3 (Jul. - Sep.) | Q4 (Oct. -Dec.) | |
Revenue | 3,127,600,595.24 | 4,184,053,599.90 | 5,201,040,110.24 | 2,886,016,565.34 |
Net profit attributable to owners of the parent | 151,953,448.66 | 161,943,817.42 | 263,769,668.98 | 86,331,157.84 |
Net profit excluding non-recurring gains or losses, attributable to owners of the parent | 142,276,620.99 | 157,741,453.10 | 249,679,534.14 | 66,517,012.66 |
Net cash flows from operating activities | 201,242,763.42 | 367,203,056.71 | 1,962,067,831.98 | -436,326,278.14 |
Description of difference between quarterly data and data of the disclosed periodical report?Applicable √Not applicable
X. Non-recurring Gains or Losses Items and Amounts
√Applicable ?Not applicable
In: Yuan currency: RMB
Non-recurring gains or losses | 2021 | 2020 | 2019 |
Gains or losses from disposal of non-current assets | -12,713,091.69 | -8,941,375.47 | -16,490,802.43 |
Government grants recognised in during profit or loss (excluding those having close relationship with the Company’s normal business, conforming to the national policies and regulations and enjoying ongoing fixed amount or quantity according to certain standard) | 34,294,933.55 | 41,825,036.44 | 9,620,797.77 |
The investment costs for acquiring subsidiaries, associates and joint ventures were less than the income generated by the fair value of the identifiable net assets of the investee at the time of acquiring the investment | 3,497,737.94 | ||
Except for the effective hedging business related to the ordinary business of the Company, changes in fair value of financial assets and financial liabilities held for trading, as well as the return on investment generated from the disposal of financial assets and financial liabilities held for trading and financial assets at fair value through other comprehensive income | 9,978,187.68 | 12,219,498.91 | 4,354,681.92 |
Net non-operating income or expenses other than the above items | 6,361,478.19 | 6,780,501.09 | 4,865,456.21 |
Other gain or loss in compliance with the definition of non-recurring gain or loss | 22,292,050.35 | 61,478,357.16 | 13,431,773.83 |
Less: Amount affected by the income tax | 15,927,824.01 | 28,340,504.54 | 3,945,476.83 |
Total | 47,783,472.01 | 85,021,513.59 | 11,836,430.47 |
Description on defining the non-recurring gains or losses items listed in the Explanatory Announcement No. 1on Information Disclosure for Companies Offering Their Securities to the Public - Non-recurring gains or lossesas recurring profit and loss items
?Applicable √Not applicableXI. Items Measured with Fair Value
√Applicable ?Not applicable
In: Yuan currency: RMB
Name of item | Beginning balance | Ending balance | Change | Impact to the profit or loss of current period |
Financial assets at fair value through other comprehensive income- receivables financing | 194,010,599.36 | 49,295,422.59 | -144,715,176.77 | |
Financial asset held for trading | 458,440,486.16 | 1,265,981,818.24 | 807,541,332.08 | 33,074,371.64 |
Total | 652,451,085.52 | 1,315,277,240.83 | 662,826,155.31 | 33,074,371.64 |
XII. Other?Applicable √Not applicable
Section 3 Discussion and Analysis of the Management
I. Discussion and Analysis on Operation SituationIn the reporting period, with more intensive industry competition, rising cost of raw materials, and otherdisadvantages, the Company focused on its core business, namely, development and manufacture of electrictwo-wheel vehicles by adhering to its strategic axis of “Customer-Centricity, Outstanding Products, MarketCultivation, and Diligent Operations”, and executing its strategic directives of transformation to digital and smarttechnological company. The Company strictly implemented the annual business & operating plan; and achievedgood business results.In the reporting period, the Company recorded revenue of RMB 15,398.71 million, representing a year-on-year increase of 19.33%, the profit attributable to owners of the parent of RMB 664.00 million, representing ayear-on-year increase of 10.94%, and the profit excluding non-recurring gains or losses attributable to ownersof the parent of RMB 616.21 million, representing a year-on-year increase of 20.00%. The key milestones of theCompany in 2021 were described below:
(I) Improvement of product power
1. Implemented forward development idea and developed hot products
The Company's core and base is to meet user needs. To meet that goal, the Company established APDSprocesses (development processes of AIMA products), which carried out product life-cycle managementcovering planning, R&D, marketing, end-of-life from market, improved method and tool for scenario simulationand investigation of users’ demand, increased relevant inputs, and enhanced success rate of new productdevelopment. Based on the deep understanding of the current consumption demand and fashion trend, theCompany established “Hot Product Sales Improvement” project team, developed key vehicle types that couldaccurately meet the demand of a category of consumers by virtue of APDS processes, and utmost enhancedmarket reputation and sales of the vehicle type with the marketing methods suitable for the vehicle’s featuresand psychology of the consumer group.With implementation of APDS, the Company strictly met the keypoint requirements in user image description,project planning, synchronous development, cost control, quality control and other processes, and ensured eachvehicle model developed as a high-quality product. In the reporting period, the development success rate of newproducts of the Company was significantly improved, multiple key vehicle models became popular, and differentconsumers deeply liked them, for example, Air force One aiming for technology & fashion, Nina for retro &modern and XiaoAi for elegance & smartness, etc. In addition, introduction of APDS processes benefitedaccurate planning and sales increase, and also contributed reduction of operating costs, as well as optimizationof SKU, its structure and proportional increase of new products and high-margin products in sales.
2. Carried out all-process quality control system to guarantee product quality
In R&D aspect, the Company promoted overall implementation of PLM (product life-cycle management)system on the basis of continual upgrade and optimization of APDS development system, improvedmanagement of quality control keypoint in the course of product development, and sufficiently guaranteed qualityof product introduced into mass production.
In procurement aspect, the Company continually optimized purchasing management system, improvedsupliers qualification, scorecard, performance review, cost comparison, quality control of incoming materials,quality improvement by suppliers, delivery schedule integration with production plan, and achieved themanagement target of timely delivery, cost control and quality guarantee.
In manufacture aspect, the Company made three business breakthroughs by improvement on quality,efficiency and logistics under the guidance of the strategy of digital and smart manufacture and in considerationof QCD (quality, cost and delivery term) operational indicators. Especially in the production processes, theCompany established scientific and restrict keypoint quality control, and used advanced management tools suchas all-process real-time quality management system in order to achieve quality stability and consistence.
In quality control aspect, the Company executed the quality standard stricter than national standard. In thereporting period, the Company increased and amended its internal quality standard, added more investment totesting equipment, and obtained sufficient testing data through virtual simulation and physical testing so as to
maintain good and stable quality. Furthermore, the Company improved quality control management efficiencyby quality control data standardization and traceability of quality problems.
3. Suffciently utilized localized marketing function overseas, understood international demand, anddeveloped products that meet demand of overseas usersThe Company systemically analyzed the regional characteristics and consumption habits of the majormarkets in the world, worked out market development plan according to concrete situation. First of all, theCompany intends to realize localization of international marketing team in respective markets. In the reportingperiod, our International Business Department established Micro-Travel Business Center for overseas market,and dispatched marketing teams in North America, Europe, Southeast Asia and other regions. They deeplyunderstood local major segments, and independently developed high-speed electric motorcycles, e-bikes,electric scooters and other products according to the demand of overseas users.
(II) Improvement of channel capacity and capability
1. In the aspect of offline channels, increased quantity of terminals and improved output of singlestore
The Company insisted on value integration of factory and distributor, took construction of channel as its keypoint of strategy and established distribution network system with large coverage and high efficiency. Weimproved the penetration and coverage of products. In terms of channel expansion, on one hand, the Companycontinued the “channel sinking” strategy. The Company actively extended its channel to city communities andareas of township, and increased numbers of retail stores; on the other hand, the Company establishedscorecards and dynamic channel management system, and ensured rigorous development of its channel systemto “retain winners and retire losers” At the end of reporting period, the Company’s dealership network exceeded2,000, and retail stores exceeded 20,000. In order to improve output of single store, the Company conductedthe empowerment training for dealer’s store managers and sales assistants both online and offline, completedupgrade of digital and smart technology on all-channel marketing, set up digital stores and their new online retailplatform, and improved stores operations in all aspects.
2. In the aspect of online channel, multi-platform operation
The Company organized a professional e-commerce operation team, actively carried out digital marketingand entered into e-commerce platforms, such as JD.com, Tmall.com, Suning.com and Pinduoduo.com. TheCompany also sold goods through live streaming with the platforms such as Tiktok, Kuaishou, and provideddiversified, convenient and quick shopping experience by online ordering and offline delivery, together with offlinedelivery and after-sales service to achieve online and offline coordinated sales.
3. Actively explored establishment of local marketing network abroad
The Company’s International Business Department actively explored international market, and establishedlocal marketing network abroad. In the reporting period, the Company strengthened recruitment of talents forinternational business and construction of functional teams.
(III) Improvement of brand power
1. Improved brand premium with multiple measures
Aima Technology has engaged in two-wheel vehicle industry for more than 20 years, and becomes thecompany with great popularity and reputation in the industry. With “differentiation” and “high-end” strategy, theCompany improved its brand image and brand premium with multi-channel and all-direction strategy, in themeantime widely met customer’s demands.
In the aspect of product development, the Company increased investment in R&D, improved productperformance and process design, improved product “quality-touch”, and accelerated brand premium byincreasing additional value of product. In the aspect of product structure, the Company reasonably designedproduct categories according to consumer demand, distinguished product grades, actively controlled thepromotion of high-end products, created incentives for dealers to sell more of medium and high-end products,reduced the proportion of low-end products in the product mix, and achieved brand upgrade. In the aspect ofupgrade of retail stores, retail stores are the major windows for brand image exhibition. In the reporting period,the Company completed upgrade and reconstruction of stores from decoration standard, store layout, productdisplay and other areas. The store image reflected the theme of “technology and fashion”, improved fashionsense and technological sense of the Company’s brands and products, and provided more comfortable shoppingexperiences for our customers. In the aspect of marketing, the Company used IP making, scenarioempowerment, and embedded commercials within TV drama & entertainment to establish and strengthen
emotional bond between its products and customers, thus end users responded and recognized the brands andproducts of the Company, which in turn enhanced the “brand tone”.In the era of “travel in low carbon way” and “competition with best customer service”, two-wheel electricvehicle is one of the major transport tools for consumers. Aima Technology provided personalized, low-carbon,high-end, smart products and services with multi-faceted and multi-level experiences for end-use customers,and enhanced AIMA’s brand reputation and recognition from consumers.
2. Brand construction in the new online traffic era
The Company continually explored brand publicity strategy in the new online traffic era. In the reportingperiod, the Company purchased commercial advertisements from China Central Television Network (“CCTV”)and other top media, and high-speed railway media. It also attempted offline pilots, such as star-adoring plan(increasing channel delivery), racing-car promotion (improving sale of new products), “spider-web movement”(clearing inventories of obsolete products), cross-border collaboration on content streaming (low-cost marketing),and other market promotion measures. The Company made live-stream activities on new streaming platformssuch as Tiktok, Kuaishou and Little Red Book. In addition, The Company insisted on value integration of factoryand distributor, established a professional training system, and staffed a business team to improve marketingcapacity for dealers who leveraged online streaming, including the matrix setup of live-stream for dealers.
3. Brand polishing strategy
The Company implemented brand polishing strategy for high-end differentiation, including:(1) improvementof R&D capacity to build the foundation framework; the Company believed independent R&D capacity of coretechnologies involved with cruising mileage, driving safety, smart function played an important role for high-enddevelopment and long-term competition; (2) made the capability of product development as the basis for high-end brand. With its great development and innovation capacity, the Company manufactured series products frompopular to high-end, developed a matrix of differentiated products by accumulating brand reputation in high-endmarket; (3) carried out overall high-end marketing plan to improve brand image, including retail store imageupgrade, IP marketing, scenario empowerment, embedded commercials within TV drama & entertainment, andetc.
(IV)Improvement of technological power
The Company fully adopted its development strategy of “transformation to technological company” and tookR&D as its major measure to improve product performance, competitive advantage and engine of long-termgrowth. For this particular reason, the Company actively promoted transformation in R&D management andimplemented its project manager system; actively brought in experts and R&D employees, and optimized thetalent structure of R&D team; the Company had a stronger and more vigorous innovative R &D culture; theCompany also established Aima Central Research Institution for concentrating on research of industry coretechnology, and promoting smart technology and application, including Internet of vehicles consumption software,IOT-linked smart hardware. In the reporting period, the Company applied for 52 invention patents, 123 utilitymodels. The R&D achievements that have been applied included AimaOS smart driving system, new smartlithium battery and etc. The Company intended to further working on the application of smart helmet, hub motor,smart device and others
The Company laid down the ground work and R&D work of core technologies by focusing on userexperience and the carbon peak and neutrality targets. The Company achieved major breakthrough in large-power and efficient motor and other fields, established advanced end-to-end development processes, andsignificantly improved whole vehicle experience by process and standard optimization under user’s demanddirection.
The cost control team specially established by the Company effectively reduced production costs in thecondition of guaranteeing product quality by improving vehicle body structure design, introducing new materialsand new technologies and new processes, and improving existing materials and production processes. In thereporting period, the Company used PP baking & painting and other cost control measures to improve cost-related competitive advantage of the Company.
Besides the above R&D items that can be applied in a short term, the Company also prepared for futuredevelopment and made technology reserves through research and development. The Company carried outdevelopment and application researches with a few of universities and research institutions on storage batteryunder new energy framework.
(V) Improvement of productivity
1. Manufacture and operation management and cost control
Under three core driving factors including ABS (Aima lean operation system) methodology, talent cultivationand benchmark setup, the Company raised Aima lean production level, improved the “Improvement Week”management mechanism, and established performance and contribution-oriented incentive mechanism. In dailywork, the Company implemented the procedures of daily monitoring, continuous improvement, incentivizeddemonstration, and coded enhancement. The Company took measures to implement overall budget and annualoperating plan, optimize production capacity with material supply both in busy and off seasons, improve inventoryturnover rate with reduction of long-turnover materials, and control the cost from manufacture, materials andquality assurance.
2. Integration of sales and production, value chain integration and use of more informationtechnologies in manufacture
The Company completed construction of basic framework of information system in all processes ofmanufacture, upgrade of Supplier Resources Management (“SRM”) system and requirement of data transfer
between manufacture system and SRM. Based on the requirement of integration of sales and production, theCompany researched various information technology solutions and designed implementation plans; theCompany successfully pushed out online APS (Advanced Programming System), MES (Manufacture ExecutionSystem), And on (abnormality management system), QMS (quality management system) and EAM (EnterpriseAsset Management System). The Company achieved seamless connection between manufacture system andmarketing system, integrated digital value chain, smart management and decision-making system, and formedindustry-leading digital and smart standards and best practices. The Company also achieved perfect connectionamong marketing plan, production management, purchasing management, storage and transportationmanagement, plan releasing, order scheduling, production arrangement, production delivery and material controlin the whole process, and resulted in the improvement of manufacture efficiency and product quality.
3. Lean production with vehicle manufacture platform
Based on the opportunities of digital and smart management system and APDS process, the Companyestablished platform, module and data system for new vehicle planning, development, delivery and sales, thusmade a great progress in flexibility of vehicle development, development efficiency and cost control. It in turnbenefited the responsiveness to consumer demand and market opportunity. In current reporting period, the R&Defficiency of the Company improved by 20%.(VI) Improvement of operation capacity
1. Human resources
The Company appreciated human capital under the talent management idea of “showing respect for ourstaff, improving their competence and making them happy”. In the aspect of talent team construction, theCompany cultivated the “talent forest” idea by external recruitment and internal training to attract experiencedR&D talents and formed “talent forest”; it also conducted on-campus recruitment for graduating students fromuniversities and colleges as its talent reserve. The Company focused on talent cultivation, talent developmentand manager-trainee program, and established qualification system for professionals and technicians. TheCompany set up training platform (Aida Course) and released “navigation courses” and “initiation courses” fortop management and low-level managers. In 2021 the platform provided innovation TRIZ courses, cross-culturecourses, courses for gold medal technicians, operator training courses, courses for gold medal team leaders andcourses for craftsmen. In the aspect of remuneration and incentive, the Company continuously optimized thesystem based on “Fighter Culture” and performance management result. The Company provided equity incentiveby issuing restrictive stocks to key members of employees for their personal growth and bondage with theCompany.
2. Digital and smart transformation of finance
The Company linked front-end transactions and back-end finance with smart share system in order to realizeinternal and external connection. All internal business lines and external transaction records were connected; alltransactions with external parties were recorded. It significantly improved operation efficiency, quickly respondedto customer’s demand, and integrated deep combination of finance, business and tax.The Company sets up data platform between business and management, removed silos between businesssystems, and laid foundations for data storage, data management, data use and other digital decision-makings.With the implementation of financial share center, the Company established data platform to integrate its internaland external resources, so as to achieve the following developments: from business end data gathering tofinancial end processing, overall online analysis, real-time interconnection and automatic and digitaldevelopment of finance. Besides, the Company achieved cash flow forecast, income forecast, costs andexpenses forecast; made business and financial data connected; implemented strategic target; and providedtimely, compliant and stable business support for the Company.
The Company established management accounting and data analysis system to provide digital basis foreffective decision-making by management. With implementation of digital and smart financial system, theCompany systemically improved efficiency and effectiveness in overall budget management, production costmanagement, capital management, and interpreted the operation result with detailed and accurate financial dataand information.
3. Optimization of service system
The Company optimized service system, standardized service content, service process and servicetimeliness on the digital and smart service platform, and fully improved service quality and consumer experience.The Company also expanded professional service stores and service coverage scope (including scope of regionand brand) to meeting user’s demand.
In addition, based on the demand from our customers on the battery charging and replacement demandwith safety and convenience, the Company replied upon its long-term channels, capitals and other resources,and explored its service offering on its comprehensive energy supply system.
4. Digital and smart overall empowerment
In the reporting period, the Company continuously invested in the digital and smart field, implemented “361Digital and Smart Engineering” strategy, and set up multi-layer and multi-field digital and smart managementsystem with advanced management idea and digital and smart technologies. To empower various businessfields and improve operation efficiency of whole value chain, the Company achieved in milestones across productdevelopment, production process, marketing upgrade, service provision, financial management and other areas.
II. Company’s Industry in The Reporting Period
The first electric two-wheel vehicle appeared in China in 1995. After rapid development for more than 20years, electric two-wheel vehicle became the important transportation and production tools of short-distancetravel for Chinese residents.Before implementation of Chinese New National Standard in 2019, the complete industrial eco-system andbroad market condition were formed. The cumulative ownership of electric bicycles in the society has exceeded250 million sets, and annual average of production and sales quantity maintained some 35 million sets for years,and market competition was intensive and industrial concentration degree was low.The Chinese New National Standard, released in 2019, regulated research and development, production,sale, distribution and use of electric bicycles, and brought industry new opportunities. Meanwhile, localgovernments set up different transition periods for implementation of New National Standard. According to theactual situation, it was estimated that the transition period would expire at the end of 2024. After the transitionperiod, the vehicle models, which didn’t meet the requirements of New National Standard, would not be allowedto run on roads. The subsequent replacement demand would bring new growth point for market volume. Withthe compound demands on both organic growth and replacement, the industry entered a new rapid growth period.In this phase, market shares would be further taken by large-scale, leading and brand enterprises, the industrywould accelerate optimization, and the degree of market concentration would increase.
Under the macroscopic background of economy transformation, information technology, the carbon peakand neutrality targets and COVID-19 impact, the consumer electric two-wheel vehicles market showed threetrends:(1) consumption upgrades and personalized consumer demand; (2) environmental protectionawareness by consumers;(3) consumer’s pursuit of convenience and smart technology. In addition, due to theincreased demand from international markets, electric two-wheel industry, originated, developed and flourishedin China, would further penetrate into overseas markets and accelerate its internationalization within theindustry. For this reason, the industry would be trending toward differentiation, high-end orientation,intelligence and internationalization. After the transition period of the Chinese New National Standard expires,and the industry would enter a new round of rapid development period, driven by the deep understanding ofconsumer demand and product customization, continuous implementation of Internet technologies, smarttechnologies and new energy technologies in electric two-wheel vehicle industry, and the expansion andfurther growth of global business.
Form Development Stages of Electric Two-wheel Vehicle Industry
Industry development stage | Period | Development characteristics | Industry features and structure |
Generation and rapid development | From 1995 to New National Standard taking effect | Rapid development from zero | Many manufacturers, serious product homogenization and fragmented market share |
Transition to orderly development | From New National Standard taking effect to expiry of transition period | Market volume increasing Regulatory system improved Industry order meeting specification Market concentration degree improved | Many small enterprises withdraw competition, the market share of head enterprises is being improved, and resources are concentrated to head enterprises |
Future and transformed development | From expiry of transition period of New National Standard | From mainly relying on the local the market to combination of local market and overseas market The industry is transformed from manufacture and sale of vehicles to service provision based on users | Industry development shows differential, high-end, smart and international features |
III. Description of The Company’s Businesses in The Reporting Period
(I) Main business of the Company
The Company was established in 1999 and entered electric two-wheel vehicle industry in 2004, and it wasone of the earliest manufacturing enterprises of electric two-wheel vehicles in China. The main business of theCompany is development, production and sale of electric bicycle, electric moped and electric motorcycle. Withdevelopment for years, the Company has high market share and is one of leading enterprises in the electric two-wheel vehicle industry.
(II) Major products of the Company
1. Electric two-wheel vehicles
(1) Classification of products
Classification | Electric bicycle | Electric two-wheel motorcycle | |
Electric moped | Electric motorcycle |
Model | |||
Nature | Non-motor vehicle | Motor vehicle | Motor vehicle |
Pedal riding ability | Compulsory requirement | None | None |
Highest velocity | ≤25km/h | ≤50km/h | >50km/h |
Whole mass | Shall not exceed 55kg | May exceed 55kg | May exceed 55kg |
Voltage of battery | ≤48V | No restriction | No restriction |
Production qualification | None | With production qualification | With production qualification |
Product qualification | 3C certification | 3C certification and catalogue announcement of the Ministry of Industry and Information Technology | 3C certification and catalogue announcement of the Ministry of Industry and Information Technology |
Riding qualification | None | Motorcycle driver’s license | Motorcycle driver’s license |
(2) “Engine MAX” series products
In January 2021, the high-end series products of the Company were introduced in the market, the energycontrol system installed on the series was independently developed by the Company for electric two-wheelenergy management system, and its core were SDS smart power system and CES braking energy recoverysystem independently developed by the Company and granted with invention patent. The energy managementsystem can effectively integrate and significantly improve operation effect of efficient energy accumulation motor,anti-aging graphene battery, low-rolling resistance tire, whole vehicle LED energy saving lamp component andother high-quality accessories, and the technical parameters in energy density, energy depletion and energyrecovery had remarkable improvement. In the existing energy framework, energy usage of electric two-wheelvehicle was optimized and the cruising mileage of vehicle and the service life of battery were improved.The engine series products had been verified for long term in the market in the aspect of cruising mileage,and were widely recognized by customers. Their sales rapidly increased after the product was launched, andthe total sales of the Company in 2021 were 1,849,500 sets, 21.33% of total sales volume. The gross profit levelof the series was higher than the average gross profit level of the Company. The Company will continually takethe engine series products as key products, revamp and upgrade them, optimize their performance by deepresearch and further strengthen promotion so as to improve the market penetration rate of the series products.
2. Electric tricycle
The electric tricycles in early days were mainly used for short-distance freight transport, and their consumerswere residents in rural area and towns. Their functional configuration and appearance design were mainly formeeting freight demand, and their function was simple and vehicle models were few. In recent years, with gradualimplementation of urbanization, continuous improvement of people’s living standard, rise of economy of middle-aged and old people, and other consumers, the demand to leisure and manned function of electric tricycle wasincreasing. For this reason, the Company developed electric tricycle for leisure purpose, electric tricycle withcanopy, and electric tricycle for freight. The electric tricycle for leisure purpose was more suitable for the followingdemands of young mothers, middle-aged and old people: leisure travel, pickup of children from and to school,and relevant consumers liked it very much; the electric tricycle with canopy had the function of sheltering fromwind and rain, and it referred to the manufacture and assembly technology of car in the aspects of whole vehicledesign and manufacture process, and this product had good function and fashion features, and greatly met thedemand of comfortable short-distance travel; the electric tricycle for freight was added fashionable elements onthe basis of durability, and consumers highly accepted it. In the reporting period, the operating income of electrictricycles of the Company increased by 94.29% year over year.
In addition, the Company has also launched bicycles, e-bikes, electric scooters and other products, all ofthem constitute green traffic tool product system for short and medium distance travel.(III) Operation modelThe Company mainly used distribution model. Under this distribution model, the Company had directbusiness connections with dealers, who purchased the Company’s products without right of return and re-sellthem to final consumers. Dealers were the direct customers and also important partners of the Company whosell products, provide services and exhibit brand image to consumers. The Company had established a completeand reasonable management system of dealers, and had formulated detailed rules on admittance, management,training, appraisal and evaluation of dealers. After the Company established cooperative relationship withdealers, the Company provided real-time training to dealers according to management standard of dealers,coordinated dealers in sales planning, market promotion and after-sale service, so as to improve satisfaction ofcustomers and market position of the Company. The Company generally delivered goods after receivingpayment, and credit sale was in special situation. Customers generally paid for goods by bank transfer, banker’sacceptance bill, letter of credit and etc.IV. Analysis on Core Competitive Advantages in The Reporting Period
√Applicable ?Not applicable
(I) Product development and innovation based on “technology and fashion”
After development of electric two-wheel vehicles for more than 20 years, homogeneous phenomenon ofproduct was highly general. The Company insisted on “technology and fashion” and took R&D and productinnovation as major measures for improving its product competition and realizing long-term development. Basedon the demand of users, the Company continuously explored introduction and application of new technologiesand new materials, improved the existing production technologies and processes, enhanced performance andadditional value of product and acquired leading technological capacity and productivity as guarantee for long-term development of the Company. Meanwhile, the Company was outstanding in fashion innovation, and theCompany’s products were always the fashion wind vane in vehicle body modeling, paint texture, color matchingand other aspects, and owned diversified product development innovation capacity. The Company can providemultiple vehicle models and met the requirements of different consumers to safe riding, fashion and personality.The Company had powerful R&D capacity. By December 31, 2021, the Company owned 13 invention patents,301 utility model patents and 903 design patents. Many of subsidiaries under the Company had obtainedcertification of New & Hi-tech Enterprise.
In the aspect of R&D talents, with accumulation for years, the Company owned a research, developmentand design team with high professional quality, strong development capacity and great industrial influence. Somerenowned design companies provided R&D and design support as long-term exclusive strategic partners of theCompany.
In the field of fashion design, the Company cooperated with China Fashion Color Association (the authorityon color fashion of China) to establish an electric vehicle fashion color R&D base, a leader in the industry, andhad acquired various original design achievements including Mai Mini, ICOOL. In addition, the innovative vehiclemodels independently developed by the Company had received various honors, such as Annual InnovativeVehicle Model, Annual Fashion Vehicle Model issued by Annual Motorcycle Model Selection OrganizingCommittee of China, MUSE Golden Medal issued by International Design Awards (IAA).
In addition, the Company fully utilized its strength in R&D and technology to promote standardization ofindustrial technologies. It had organized to compile or participate in drafting 12 national standards and industrialstandards, including Technical Requirements of Charger in Electric Bicycle, Motor Performance Testing Methodsfor Electric Motorcycle and Electric Moped, Safety Requirements of Electric Motorcycle and Electric Moped.Jiangsu AIMA ever obtained the honor title of “Leading Unit in Industrial Standardization” issued by ElectricBicycle Technical Sub-committee of All-China Bicycle Standardization Technical Committee.
(II) Reliable production technologies, leading product quality
The Company always considered technical R&D, stable quality as its development foundation, pursuedexcellence in the course of production and guaranteed output of high-quality products. The Company used first-class electrophoretic technique for manufacture of vehicle frame. Internal and external double-layer paintspraying provided good packaging of internal frame structure and significantly improved corrosion resistanceand durability; acquired advanced CNC pipe bending machines and robot welding machine to guarantee vehicleframe cutting and wedding quality and appearance quality. In the aspect of painting, the Company established
dust-free painting workshop to guarantee painting quality, and took cathode electrophoretic technology tostrengthen anti-rusting performance of products; used high-quality paint materials to guarantee anti-aging, anti-corrosive performance of products and maintained products cosmetically beautiful. In the aspect of other corecomponents, the Company cooperated with brand suppliers leading in the industry to ensure stability of operatingsystem of electric two-wheel vehicles. In the aspect of manufacture and inspection of whole vehicle, theCompany carried out lean production mode to improve profit and guarantee quality with five-inspection systemincluding first inspection, self-inspection, mutual inspection, sampling and special inspection.The Company had established fully equipped testing laboratories in the production bases situated in Tianjin,Jiangsu, Guangdong and etc. The Company owned 400 sets of testing devices and equipment, and employedabout 30 technicians who had passed ISO/IEC training and obtained qualification certificates. The Company hadset up 7 professional laboratories, including whole vehicle performance laboratory, environment laboratory,material analysis laboratory, electronic and electric laboratory, mechanic performance laboratory, coretechnology laboratory and intelligent laboratory, which owned various testing equipment and powerful technicalcapacity, and had the testing capacities to electric two-wheel vehicles, electric tricycles and some low-speedelectric quadricycle. The Testing Technology Center of the Company (Wuxi Base) had received the certificatefrom China National Accreditation Service for Conformity Assessment (CNAS). With reference to the productdevelopment testing model used in automobile industry, the Company worked out the testing processes highlyconsistent with APDS product development processes and the Company’s production system, and carried outoverall testing to parts, system and whole vehicle to ensure product quality.The Company’s products had been sold in the market for years, and the Company had received high-levelaccreditation and various honors in the aspect of quality, for example, “All-China Quality Benchmark Enterprise”issued by China Association for Quality Inspection, AAA Enterprise Credit Rating Certificate issued by ChinaUrban Transportation Association.
(III) Sales channel system with large coverage and high efficiencyIn the aspect of offline channel, the Company actively implemented the brand strategy focusing atconsumption demand, grasped the development opportunity of electric two-wheel vehicle market, fully utilizedits brand influence to develop dealer channel and formed an offline sales network over China. The Companyhad achieved economy of scale and rapid growth accordingly. The Company insisted on value integration offactory and dealer, continually improved management rules and system of dealers and attracted excellentdealers that have large share in district/county markets to establish long-term strategic cooperation relationshipwith the Company. After accumulation for years, the Company had established flat marketing channels in unit ofdistrict/county and demonstrated its advantage of wide coverage and high efficiency.In the aspect of online channel, the Company had set up online channel system on multiple platforms,including Tmall, JD and other major e-commerce platforms, as well as Tiktok, Small Red Book, Kuaishou andother emerging platforms. The Company further provided overall and all-time shopping experience andconvenient after-sale services to online customers by virtue of its digital and smart empowerment platform andnationwide service network. In addition, by coordination with the marketing measures of the Company, the onlinechannels played an important role as traffic driver and in new customer acquisition.(IV) Service network with high quality, high efficiency and high coverageIn the aspect of service network, based on long-term operation, the Company had established a perfectservice network, consisting of nationwide service shops, efficient work order distribution system, industrialleading service effect and service content standards, efficient part warehousing and distribution system,examination system based on service satisfaction indicators and professional service team. The outstanding andefficient services of the Company were widely praised by customers and highly accepted by regulatory bodies.All-China Goods After-sale Service Rating Authentication Reviewing Committee determined the Companyreaching five-star level in technical support, maintenance service and etc., China Customer Connection Centergranted the Company “Customer’s Satisfaction Award”; the Company also participated in drafting the industrialself-regulatory service specification After-sale Service Specification for Electric Bicycle, organized to draft After-sale Service Time Effect Specification for Electric Bicycle, which led the standardized development of servicesin the industry.
(V) Brand influence leading in the industryThe Company took “Technology and Fashion” as its brand strategy and “love, and act at once” as its brandslogan to carry out brand construction in China on the basis of fashionable and high-quality products. With greatefforts for years, the brand AIMA received general acceptance and high reputation, and its brand influence ledahead in the industry.The qualification and honors that the Company had acquired in brand construction included authenticationof Famous Trademark of China, recognized as the 1st position for ten consecutive years on the list of Chinabrand influence indexes (C-BPI) in the category of electric bicycles issued by Chnbrand.(VI) Production and sales volume leading in the industry, with significant scale advantage and costadvantage
The Company became one of leading enterprises in the electric two-wheel vehicle industry of China due togood quality, large distribution system and high brand reputation. Larger scale made the Company to keepclosely cooperative relationship with dealers and suppliers. The Company had great bargaining power when itmade concentrated procurement to suppliers, beneficial for maintaining stable price of raw materials andobtaining beneficial payment period; while selling goods to dealers, the Company generally used the mode ofdelivering goods after receipt of payment, and thus possessed very stable cash flow. Furthermore, largerproduction scale can allow the Company to realize lower cost per single vehicle in production and manufacture.
With the production scale and sales volume increased, the Company had sufficient resources and developmentstrength to improve production processes and technologies, product performance and production efficiency, andthis would further enhance scale effect and cost competition advantage. The leading production scale made theCompany to achieve efficiency and cost advantage that its competitors were incomparable in market competition.(VII) Digital and smart management system with full empowerment and efficiency improvementThe Company had started and implemented the “361 digital and smart engineering” strategy to lead digitaltransformation of the Company. The Company had also built up a digital and smart management system highlyconsistent with organizational structure and business procedure, and empowered Company in various businessfields. The Company had established the digital marketing system based on retail and covering all businessprocesses of marketing, and achieved smooth connection of enterprise marketing system to shop terminals ofdealers, so that the coordinated business of dealers can be made online and thus it significantly improvedefficiency. Meanwhile, the system data can guide ordering plan of dealers and internal production plan of theCompany, and improved accuracy of sales and production plan; the Company had constructed private flow poolof AIMA, and laid foundation for the Company to perform user operation. The Company carried outtransformation of intelligent manufacturing, analyzed business plan execution situation through data perspective,and realized data-feeding lean manufacturing. The Company promoted supply and sale integration by smoothsystem connection concurrently, which remarkably enhanced efficiency. The Company empoweredmanagement, realized integration of business and finance, inspected execution of decision with operation dataand realizes consistent data collection standards and decision-making based on data. With accurate operation,forward development, lean manufacture, and accurate data supporting operation decision-making, the Companygave quick response and agile treatment to market demand, accurately understood and promptly met users’demand, and reduced costs and improved benefit by refinement operation. The Company had initially realizedoverall information technology use, digital operation, smart decision-making and automatic execution.(VIII) Talent team with high loyalty and professional levelThe Company upheld the talent management idea of “showing respect for our staff, improving theircompetence and making them happy”, established the human resource management system based on talentdevelopment and human capital appreciation, including attractive remuneration system, smooth occupationalpromotion channel, professional talent training system, good employee welfare system and inclusive andcreative diversified business culture, so that the Company became the happy platform of contributors, improvedprofessional capacity and quality of staff and cultivated the talent team with high loyalty and professional level,and made them happier.V. Major Operation Situation in The Reporting PeriodIn the reporting period, the Company recorded revenue of RMB15,398.71 million, representing a year-on-year increase of 19.33%, the profit attributable to owners of the parent of RMB663.00 million, representing ayear-on-year increase of 10.94%, and the profit excluding non-recurring gains or losses attributable to ownersof the parent of RMB616.21 million, representing a year-on-year increase of 20.00%.The main reasons werethat the Company continuously focused on its core business, i.e. R&D and manufacture of electric two-wheelvehicles, executed annual business and operating plan, continuously improved product power, channel capacityand capability, brand power, technological power, productivity, operation capacity, and achieved good businessoperations in 2021.(I) Analysis on main business
1. Analysis on change of relevant items in income statement and cash flow statement
In: Yuan currency: RMB
Items | Amount of the current year | Amount of last year | Change (%) |
Revenue | 15,398,710,870.72 | 12,904,586,099.11 | 19.33 |
Cost of sales | 13,593,606,029.56 | 11,431,221,982.27 | 18.92 |
Selling expenses | 550,605,290.98 | 398,784,858.24 | 38.07 |
Administrative expenses | 316,594,598.36 | 265,551,124.65 | 19.22 |
Financial expenses | -261,133,668.57 | -135,095,939.12 | N/A |
R&D expenses | 404,084,127.91 | 239,440,162.52 | 68.76 |
Net cash flows from operating activities | 2,094,187,373.97 | 1,154,579,844.77 | 81.38 |
Net cash flows from investing activities | -2,024,141,754.57 | -560,501,674.27 | N/A |
Net cash flows from financing activities | 1,797,930,958.66 | 370,512,394.73 | 385.26 |
The change in revenue was due to that the Company achieved substantial sales growth by focusing on its mainbusiness and continually utilizing its brand influence strength.The change in cost of sales was due to the business expansion, resulting in an increase of the costs accordingly.The change in selling expenses was due to the enlarged sales team and more marketing investment.The change in administrative expenses was mainly due to the increased spending of the professionalconsultation services in the reporting period.The change in financial expenses was mainly due to the increased interest income generated from the larger
scale of the currency funds.The change in R&D expenses was due to that the Company expanded its R&D team and enhanced the R&Dinvestment.The change in net cash flows from operating activities was mainly due to that the sales growth led to more cashreceived from operating activities compared with last year.The change in net cash flows from investing activities was mainly due to the difference of low-risk financialproducts purchased and redeemed by the Company in the reporting period reduced than in last year.The change in net cash flows from financing activities was mainly due to the Company raised capital by IPO inthe reporting period.Detailed description of major changes of the Company in business type, profit makeup or profit source?Applicable √Not applicable
2. Analysis on revenue and cost of sales
√Applicable ?Not applicable
In the reporting period, the Company recorded revenue of RMB 15,398.71 million, representing a year-on-year increase of 19.33%, and cost of sales of RMB 13,593.61 million, representing a year-on-year increase of
18.92%. The gross profit rate of the Company was 11.72%, as the Company achieved performance growth byfocusing on its main business, and continually utilizing its brand influence strength.
(1). Sales information of principal operation by industry, products, regions and sales models
In: Yuan currency: RMB
Information of main business by industries | ||||||
Based on industry | Revenue | Cost of sales | Gross profit margin(%) | Change of revenue compared with last year (%) | Change of cost of sales compared with last year(%) | Change of gross profit margin compared with last year(%) |
Railway, ship, aerospace and other transport equipment manufacture industries | 15,264,913,767.38 | 13,491,387,679.85 | 11.62 | 19.36 | 18.99 | Increased by 0.27 percentage points |
Information of principal operation by products | ||||||
Product | Revenue | Cost of sales | Gross profit margin(%) | Change of revenue compared with last year (%) | Change of cost of sales compared with last year(%) | Change of gross profit margin compared with last year(%) |
Electric bicycles | 7,159,540,365.16 | 6,336,213,579.94 | 11.50 | 42.71 | 41.74 | Increased by 0.61 percentage points |
Electric two-wheel motorcycles | 6,765,559,065.06 | 5,996,024,990.91 | 11.37 | 0.40 | 0.39 | Increased by 0.00 percentage points |
Electric tricycles | 654,919,354.10 | 566,701,721.63 | 13.47 | 94.29 | 93.89 | Increased by 0.18 percentage points |
Bicycles | 48,285,658.44 | 45,487,358.07 | 5.80 | -71.91 | -70.03 | Decreased by 5.91 percentage points |
Sale of parts | 636,609,324.62 | 546,960,029.30 | 14.08 | 21.41 | 21.30 | Increased by 0.08 percentage points |
Information of principal operation by regions | ||||||
Region | Revenue | Cost of sales | Gross profit margin(%) | Change of revenue compared with last year (%) | Change of cost of sales compared with last year(%) | Change of gross profit margin compared with last year(%) |
Northeast China | 376,427,355.52 | 338,885,915.65 | 9.97 | 30.64 | 31.57 | Decreased by 0.63 percentage points |
East China | 5,741,328,245.71 | 5,049,164,899.73 | 12.06 | 22.17 | 22.41 | Decreased by 0.18 percentage points |
North China | 2,008,529,559.99 | 1,760,220,802.16 | 12.36 | 28.34 | 26.84 | Increased by 1.04 percentage points |
Central China | 2,446,408,196.31 | 2,174,030,088.38 | 11.13 | 16.72 | 18.48 | Decreased by 1.32 |
percentage points | ||||||
South China | 2,284,528,382.10 | 2,005,468,926.39 | 12.22 | 26.36 | 23.53 | Increased by 2.01 percentage points |
Southwest China | 1,030,223,320.97 | 925,861,130.70 | 10.13 | 29.26 | 17.52 | Increased by 8.97 percentage points |
Northwest China | 574,744,320.48 | 498,506,211.31 | 13.26 | -4.85 | -4.53 | Decreased by 0.30 percentage points |
Overseas | 172,450,122.38 | 139,944,395.95 | 18.85 | 68.14 | 80.05 | Decreased by 5.37 percentage points |
Undetermined region | 630,274,263.92 | 599,305,309.58 | 4.91 | -23.94 | -16.96 | Increased by 4.91 percentage points |
Information of principal operation by sales models | ||||||
Sales model | Revenue | Cost of sales | Gross profit margin(%) | Change of revenue compared with last year (%) | Change of cost of sales compared with last year(%) | Change of gross profit margin compared with last year(%) |
Distribution | 14,261,757,463.55 | 12,573,276,668.47 | 11.84 | 21.17 | 20.15 | Increased by 0.74 percentage points |
Direct sales | 1,003,156,303.83 | 918,111,011.38 | 8.48 | -1.52 | 5.10 | Decreased by 5.76 percentage points |
Description of principal operation by industry, products, regions, sales models
1. Description of revenue and cost of sales of principal operation by industry: in the reporting period, theCompany focused on its main business, continually utilized its brand strength and obtained performance growth.Furthermore, the Company strengthened new product development efforts, optimized product structure andincreased the ratio of the newly developed and high-profit products in sale.
2. Description of sales of principal operation by products: in the reporting period, as the main products ofthe Company, the electric bicycles achieved sound sales performance, and the demand of electric tricycles alsoshowed the trend of rapid increase.
3. Description of sales of principal operation by regions: The Company actively developed its sales channels,and consequently caused the steady growth in the major sales regions.
4. Description of sales of principal operation by sales models: the revenue from direct sales model reducedthan last year, because of the decreased orders of sharing bicycles.
(2). Analysis on production and sales volumes
√Applicable ?Not applicable
Main product | Unit | Production volume | Sales volume | Inventory | Change of production volume (%) | Change of sales volume (%) | Change of inventory (%) |
Electric bicycles | Set | 5,112,906 | 5,018,823 | 258,510 | 30 | 29 | 82 |
Electric two-wheel motorcycles | Set | 3,337,703 | 3,331,682 | 92,057 | -4 | -6 | 6 |
Electric tricycles | Set | 211,873 | 204,510 | 12,307 | 61 | 54 | 143 |
Bicycles | Set | 112,756 | 115,352 | 2,709 | -69 | -71 | -48 |
Total | Set | 8,775,238 | 8,670,367 | 365,583 | 11 | 9 | 53 |
Description of production and sales volumes
At the end of the reporting period, the inventory level of the Company remained stable, with 7-15 turnoverdays, according to the flexible adjustment based on the purchase order obtained.
(3). Performance situation of major purchasing contracts, major sales contracts?Applicable √Not applicable
(4). Cost analysis form
In: RMB
Information based on industry | ||||||
Industry | Cost components | Consumed in current year | Ratio in total cost in current year (%) | Consumed in last year | Ratio in total cost in last year (%) | Change in consumption (%) |
Railway, ship, aerospace and other transport equipment manufacture industries | Direct materials | 12,835,977,562.81 | 95.14 | 10,700,510,285.79 | 94.38 | 19.96 |
Direct labor and manufacture expenses | 655,410,117.04 | 4.86 | 637,314,854.14 | 5.62 | 2.84 | |
Total | 13,491,387,679.85 | 100.00 | 11,337,825,139.93 | 100.00 | 18.99 | |
Information based on product | ||||||
Product | Cost structure item | Consumed in current year | Ratio in total cost in current year (%) | Consumed in last year | Ratio in total cost in last year (%) | Change in consumption (%) |
Electric bicycle | Direct materials | 5,936,021,994.54 | 44.00 | 4,121,418,810.02 | 36.35 | 44.03 |
Direct labor and manufacture expenses | 400,191,585.40 | 2.97 | 338,136,932.96 | 2.98 | 18.35 | |
Sub-total | 6,336,213,579.94 | 46.97 | 4,459,555,742.98 | 39.33 | 42.08 | |
Electric two-wheel motorcycle | Direct materials | 5,796,324,564.55 | 42.96 | 5,739,523,116.88 | 50.62 | 0.99 |
Direct labor and manufacture expenses | 199,700,426.37 | 1.48 | 243,773,225.48 | 2.15 | -18.08 | |
Sub-total | 5,996,024,990.92 | 44.44 | 5,983,296,342.36 | 52.77 | 0.21 | |
Electric tricycle | Direct materials | 515,830,075.38 | 3.82 | 258,126,853.58 | 2.28 | 99.84 |
Direct labor and manufacture expenses | 50,871,646.25 | 0.38 | 34,158,822.96 | 0.30 | 48.93 | |
Sub-total | 566,701,721.63 | 4.20 | 292,285,676.54 | 2.58 | 93.89 | |
Bicycle | Direct materials | 40,840,899.05 | 0.30 | 130,521,149.01 | 1.15 | -68.71 |
Direct labor and manufacture expenses | 4,646,459.02 | 0.03 | 21,245,872.73 | 0.19 | -78.13 | |
Sub-total | 45,487,358.07 | 0.34 | 151,767,021.74 | 1.34 | -70.03 | |
Sale of parts | Direct materials | 546,960,029.29 | 4.05 | 450,920,356.31 | 3.98 | 21.30 |
Total | 13,491,387,679.85 | 100.00 | 11,337,825,139.93 | 100.00 | 18.99 |
Description of other situations in cost analysis
In the reporting period, as affected by price rise of bulk raw materials, the costs of main raw materialsshowed rising trend, while the overall cost structure of the Company was basically steady.
(5). Equity change of major subsidiaries in the reporting period caused change of consolidation scope?Applicable √Not applicable
(6). Major changes of the Company about business, product or service in the reporting period orrelevant adjustment situation?Applicable √Not applicable
(7). Major customers and major suppliers
A. Information of major customers of the CompanyThe total sales amount to the top five customers was RMB1,043.04 million, accounting for 6.83% of the annualsales amount. Among the sales to the top five customers, the amount of sales to the related parties was nil,accounting for 0% of the annual sales amount.In the reporting period, the circumstance that sales ratio to single customer exceeded 50% of total amount,there were new customers in top five customers or it seriously relied on minority customers?Applicable √Not applicable
B. Information of major suppliers of the CompanyThe total purchasing amount from the top five suppliers was RMB 4,399.14 million, accounting for 32.88% ofthe annual purchasing amount. Among the purchase from the top five suppliers, the amount of purchase fromthe related parties was nil, accounting for 0% of the annual purchases.In the reporting period, the circumstance that purchasing ratio from single supplier exceeded 50% of totalamount, there were new suppliers in top five suppliers or it seriously relied on minority suppliers?Applicable √Not applicable
3. Expenses
√Applicable ?Not applicable
In: RMB
Expense item | Current year | Prior year | Change(%) | Description of change reasons |
Selling expenses | 550,605,290.98 | 398,784,858.24 | 38.07 | The enlarged sales team and more marketing investment |
Administrative expenses | 316,594,598.36 | 265,551,124.65 | 19.22 | The increased spending of the professional consultation services in the reporting period |
Financial expenses | -261,133,668.57 | -135,095,939.12 | N/A | The increased interest income generated from the larger scale of the currency funds |
R&D expenses | 404,084,127.91 | 239,440,162.52 | 68.76 | The Company expanded its R&D team and enhanced the R&D investment |
4. Research and development input
(1).R&D input form
√Applicable ?Not applicable
In: RMB
Research and development input expensed in current period | 404,084,127.91 |
Research and development input capitalized in current period | 0 |
Total of research and development input | 404,084,127.91 |
Ratio of total R&D input in operating income (%) | 2.62 |
Ratio of capitalization of R&D input(%) | 0 |
(2).Information of R&D personnel
√Applicable ?Not applicable
Quantity of R&D personnel of the Company | 701 |
Ratio of R&D personnel in staff of the Company(%) | 9.62 |
Educational structure of R&D personnel | |
Category of educational structure | People in educational structure |
Doctorate | 3 |
Master degree | 24 |
University | 304 |
Junior college | 223 |
High school and below | 147 |
Age structure of R&D personnel | |
Category of age structure | People in age structure |
Below 30 (exclusive) | 241 |
30-40 (inclusive 30, exclusive 40) | 377 |
40-50 (inclusive 40, exclusive 50) | 67 |
50-60 (inclusive 50, exclusive 60) | 15 |
Above 60 | 1 |
(3).Description of situation
?Applicable √Not applicable
(4).Reasons of major change about R&D personnel structure and impact on future development of the
Company?Applicable √Not applicable
5. Cash flows
√Applicable ?Not applicable
In: RMB
Cash flow item | Current year | Prior year | Change (%) | Description of change reasons |
Net cash flows from operating activities | 2,094,187,373.97 | 1,154,579,844.77 | 81.38 | The sales growth led to more cash received from operating activities compared with last year |
Net cash flows from investing activities | -2,024,141,754.57 | -560,501,674.27 | N/A | The difference of low-risk financial products purchased and redeemed by the Company in the reporting period reduced than in last year. |
Net cash flows from financing activities | 1,797,930,958.66 | 370,512,394.73 | 385.26 | The Company raised capital by IPO in the reporting period. |
(II) Description of major changes of project caused by non-main business?Applicable √Not applicable
(III) Analysis on assets and liabilities
√Applicable ?Not applicable
1. Assets and liabilities
In: RMB
Item | Closing balance of current year | Percentage of closing balance of current year in total assets(%) | Closing balance of last year | Percentage of closing balance of last year in total assets (%) | Year-on-year Change (%) | Description of change |
Currency funds | 2,846,143,310.70 | 21.24 | 1,249,120,118.26 | 13.07 | 127.85 | Note 1 |
Financial assets held for trading | 1,265,981,818.24 | 9.45 | 458,440,486.16 | 4.80 | 176.15 | Note 2 |
Receivables financing | 49,295,422.59 | 0.37 | 194,010,599.36 | 2.03 | -74.59 | Note 3 |
Other receivables | 150,069,854.58 | 1.12 | 85,518,641.96 | 0.89 | 75.48 | Note 4 |
Inventories | 795,689,208.89 | 5.94 | 494,751,269.64 | 5.18 | 60.83 | Note 5 |
Other current assets | 170,807,953.30 | 1.27 | 120,605,121.80 | 1.26 | 41.63 | Note 6 |
Current portion of non-current assets | 875,045,616.43 | 9.15 | -100.00 | Note 7 | ||
Long-term equity investment | 105,073,280.23 | 0.78 | 32,946,576.25 | 0.34 | 218.92 | Note 8 |
Construction in progress | 114,131,095.16 | 0.85 | 47,995,478.09 | 0.50 | 137.80 | Note 9 |
Right-of-use assets | 41,226,833.58 | 0.31 | N/A | Note 10 | ||
Long-term prepaid expenses | 29,394,318.63 | 0.22 | 11,802,083.24 | 0.12 | 149.06 | Note 11 |
Deferred tax assets | 88,843,633.31 | 0.66 | 56,365,819.88 | 0.59 | 57.62 | Note 12 |
Other non-current assets | 4,942,771,969.13 | 36.89 | 3,402,470,277.28 | 35.60 | 45.27 | Note 13 |
Accounts payable | 2,132,113,371.54 | 15.91 | 1,382,013,472.83 | 14.46 | 54.28 | Note 14 |
Receipts in advance | 13,125,994.89 | 0.10 | N/A | Note 15 | ||
Contract liabilities | 483,535,624.57 | 3.61 | 318,471,009.89 | 3.33 | 51.83 | Note 16 |
Taxes and surcharges payable | 58,301,487.57 | 0.44 | 25,977,920.73 | 0.27 | 124.43 | Note 17 |
Current portion of non-current liabilities | 5,923,801.00 | 0.04 | N/A | Note 18 | ||
Other current liabilities | 39,990,259.74 | 0.30 | 12,219,830.60 | 0.13 | 227.26 | Note 19 |
Lease liabilities | 46,589,311.07 | 0.35 | N/A | Note 20 | ||
Deferred income | 118,883,340.46 | 0.89 | 73,775,195.25 | 0.77 | 61.14 | Note 21 |
Deferred tax liabilities | 431,224.44 | 0.0030 | 8,740.26 | 0.0001 | 4,833.77 | Note 22 |
Other notesNote 1: the increase of currency funds was mainly due to the fund raised by IPO, and the sales growth in thereporting period.Note 2: the increase of financial assets held for trading were mainly due to two reasons as below. Firstly, theCompany acquired the strategic allotted shares issued by Tianneng Battery Group Co., Ltd. in its IPO on STARmarket of Shanghai Stock Exchange. Secondly, the Company purchased more low-risk financial products in thereporting period.Note 3: the declined receivables financing was due to the decreased undue bank acceptance bill held by theCompany at the end of reporting period.Note 4: other receivables increased because of the deposit paid to the suppliers for locking in the purchasingprice of lithium batteries when the upstream raw materials were fast rising.Note 5: inventories increased mainly due to the three reasons as below. Firstly, the business expansion of theCompany in the reporting period. Secondly, preparation of finished goods for Chinese New Year vacation andstrategic reserve of some materials. Thirdly, the rising prices of the raw materials in the reporting period.Note 6: the increased other current assets mainly represented the input VAT to be deducted, as the Companypurchased more raw materials by the end of the reporting period.Note 7: the current portion of non-current assets decreased, because the three-year term deposit recorded inthis account was due and received in this period, and there was no fixed term deposit would be due within a yearby the end of the reporting period.Note 8: the increased long-term equity investment mainly represented the newly invested associates in thereporting period.Note 9: construction in progress increased mainly due to the three reasons as below. Firstly, the plant buildingdecoration of Chongqing Aima Vehicle Technology Co., Ltd. was not completed. Secondly, the new informationtechnology system was still under development. Thirdly, the Company purchased more decoration materials forterminal sales stores’ renovation, to expand and improve the distribution network.Note 10: the increased right-of-use assets were due to the adoption of the new lease standard.Note 11: the increased long-term prepaid expenses were due to the plant building decoration and workshopsreconstruction of the Company in the reporting period.Note 12: the increased deferred tax assets were mainly attributable to the deductible tax losses of some entities.Note 13: the increased other non-current assets were due to the purchase of three-year term deposit in thereporting period.Note 14: accounts payable increased mainly due to more raw materials were purchased to meet the productionrequirements in the business expansion in the reporting period.Note 15: the increased receipts in advance represented the rental prepayments received at the end of thereporting period.Note 16: the contract liabilities increased, mainly due to that the distributors prepaid more advance to theCompany by the end of the reporting period, to ensure sufficient stock before Chinese New Year vacation.Note 17: the increased taxes and surcharges payable mainly represented the increasing corporate income taxpayable due to the sales growth in the fourth quarter in the reporting period.Note 18: the increased current portion of non-current liabilities were due to the adoption of the new leasestandard.Note 19: the increased other current liabilities represented the output VAT related to the advance payments fromthe distributors.Note 20: the increased lease liabilities were due to the adoption of the new lease standard.Note 21: the increased deferred income represented the government grants relating to assets received in thereporting period.Note 22: the increased deferred tax liabilities mainly represented the investment income of undue financialproducts at the end of the reporting period.
2. Information of overseas assets
?Applicable √Not applicable
3. Information of main restricted assets at the end of reporting period
√Applicable ?Not applicable
Item | Closing book value | Restriction reason |
Financial assets held for trading | 390,000,000.00 | Pledged for bank credit |
Fixed assets | 51,854,177.47 | Mortgaged for bank credit |
Intangible assets | 30,632,651.23 | Mortgaged for bank credit |
Other non-current assets | 4,700,000,000.00 | Pledged for bank credit |
Total | 5,172,486,828.70 |
4. Other descriptions
?Applicable √Not applicable
(IV) Analysis on industrial operation information?Applicable √Not applicable(V) Analysis on investment statusOverall analysis on external equity investment
√Applicable ?Not applicable
See the following “major non-equity investments” and “financial assets measures with fair value” for details.
1. Major equity investments
?Applicable √Not applicable
2. Major non-equity investments
√Applicable ?Not applicable
(1) Chongqing Base
On August 16, 2021, the Company held the first temporary general meeting of 2021 and discussed andadopted the Proposal on the Company Intends to Sign Project Agreement with the Management Committee ofChongqing Tongliang High-tech Industrial Development Area, and the Company was agreed to invest aboutRMB 2 billion to build up the project of AIMA Southwest Manufacture Base at Tongliang District, Chongqing Cityin manner of establishing a holding project company. The total land used for the project was about 1100 mu(Chinese acres), and the land for the first phase of project was about 300 mu. The land was obtained in mannerof acquisition, and the government would assist in completion; the land for the second phase was about 800 mu,and obtained through land remising.ON August 17, 2021, the project company Chongqing Aima Vehicle Industry Technology Co., Ltd. Receivedthe Business License granted by the Market Supervision Administration of Tongliang District, Chongqing City.On August 23, 2021, Chongqing Vehicle Industry and Zhongke Chuangxun Technology Co., Ltd. Signedthe Assets Purchasing Agreement to purchase relevant land use right and houses and buildings for constructionof the first phase of Aima Southwest Manufacture Base. In January 2022, the first phase project of AimaSouthwest Manufacture Base was formally put on production.
(2) Taizhou Base
On September 3, 2021, the Company held the 21
st
meeting of the fourth board of directors, discussed andadopted the Proposal on the Company Intends to Sign the Investment Agreement with the People’s Governmentof Qingtian County, Lishui City, and the Company was agreed to build up the smart electric vehicles and high-speed electric motorcycle project of Taizhou at Huangyan District, Taizhou City in manner of establishing aproject company.
On November 4, 2021, the wholly-owned subsidiary of the Company, Taizhou Aima Vehicle ManufactureCo., Ltd., was responsible for all production and management of Taizhou Smart Electric Vehicles and High-speed Electric Motorcycle Project.In January 2022, the wholly-owned subsidiary of the Company, Taizhou Aima, signed Contract forTransferring the Right to Use State-owned Construction Land with Taizhou Natural Resources and PlanningBureau of Taizhou City.
(3) Lishui Base
On November 15, 2021, the Company held the second temporary general meeting of 2021, discussed andadopted the Proposal on the Company Intends to Sign the Investment Agreement with the People’s Governmentof Qingtian County, Lishui City, and the Company was agreed to set up a holding project company at QingtianCounty, Lishui City to invest for construction of the project of Aima New Energy Smart Transportation EcologicalIndustry Park.
In the reporting period, the project company set up by a wholly-funded subsidiary of the Company AimaTechnology (Chongqing) Co., Ltd. with full investment received the Business License from the MarketSupervision Administration of Qingtian County.
3. Financial assets measured at fair value
√Applicable ?Not applicable
On 1 December 2020, in the 12
th
meeting of the fourth session, the Board considered and approved the“Proposal on Signing the Strategic Allotted Subscription Agreement with Tianneng Battery Group Co., Ltd.”,pursuant to which the Company was agreed to participate in strategic allotted subscription of Tianneng BatteryGroup Co., Ltd. as a strategic investor with its own capital no more than RMB 100 million, which should becompleted in January 2021.
In: RMB’0000, currency: RMB
Category of security | Abbreviation of security | Code of security | Initial investment cost | Shares held at the end of reporting period (10000 shares) | Book value at the end of reporting period | Whether purchased or sold in the reporting period | Investment income in the reporting period | Change of fair value |
Share | Tianneng Share | 688819.SH | 8,399.79 | 200 | 8,560.00 | Purchasing | 120.00 | 160.21 |
4. Concrete progress of restructuring and integration of major assets in the reporting period?Applicable √Not applicable
(VI) Sale of major assets and equity?Applicable √Not applicable(VII) Analysis of major controlling and companies invested by the Company
√Applicable ?Not applicable
In: RMB’0000, currency: RMB
Name of company | Control relationship | Main business | Registered capital | Total assets | Net assets | Revenue | Net profit |
Henan Aima | Wholly-owned subsidiary | Development, manufacture and sale of electric tricycle | 10,000 | 25,895.36 | 12,010.07 | 54,037.31 | 1,543.70 |
Guangdong Aima | Wholly- owned subsidiary | Development, manufacture and sale of electric bicycle, electric moped, electric motorcycle | 10,000 | 76,654.04 | 16,781.83 | 142,956.64 | 4,251.90 |
Zhejiang Aima | Wholly- owned subsidiary | Development, manufacture and sale of electric bicycle, electric moped, electric motorcycle | 10,000 | 72,927.75 | 16,125.40 | 136,156.76 | 4,224.94 |
Jiangsu Aima | Wholly- owned subsidiary | Development, manufacture and sale of electric bicycle, electric moped, electric motorcycle | 44,000 | 276,744.28 | 97,420.67 | 417,481.48 | 19,311.48 |
Tianjin Aima | Wholly- owned subsidiary | Development, manufacture and sale of electric bicycle, electric moped, electric motorcycle, electric tricycle | 10,000 | 302,567.71 | 29,465.99 | 549,382.36 | 14,274.02 |
Guangxi Aima | Wholly- owned subsidiary | Development, manufacture and sale of electric bicycle, electric moped, electric motorcycle | 8,000 | 38,278.75 | 14,134.91 | 113,157.66 | 8,064.43 |
Chongqing Aima | Wholly- owned subsidiary | Development, manufacture and sale of electric bicycle, electric moped, electric motorcycle | 1,000 | 98,180.23 | 16,869.15 | 285,055.56 | 16,669.15 |
In the reporting period, net profit realized by the above important wholly-funded subsidiaries came from thesales of major products including electric two-wheel vehicles, electric tricycles. Other subsidiaries and associatesof the Company were in normal operation, and their profit and loss situation had little impact to the Company.(VIII) Information of structured subjects under control of the Company?Applicable √Not applicableVI. Discussion and Analysis of The Company on Its Future Development(I) Industrial structure and trend
√Applicable ?Not applicable
1. Competition situation of industry
With more intensive market competition and implementation of New National Standard, a large number ofsmall-scale and low-efficiency enterprises that don’t have product development and technologicalcompetitiveness have been eliminated or closed down, and the industry concentration has continued to increase.In view of enterprise features, the industry participants mainly include three categories of enterprises: theenterprises in the first category are nationwide brand enterprises, which have nationwide marketing network,nationwide production layout, independent product development capacity, powerful capital strength and goodmarket reputation. These enterprises generally have significant scale strength and brand influence, pay attention
to product development and technical innovation and own wide user foundation and market recognition; theenterprises in the second category are regional brand enterprises, which have formed unique competitionstrength in long-term market competition, have certain market strength in specific regions and specific products,and have powerful industry chain integration capacity and market promotion capacity; the enterprises in the thirdcategory are newcomers, which start to enter the industry after the electric two-wheel vehicle industry has beenmature. By focusing on products for specific users or specific uses, with intelligence and networking technologyas the selling point, as they gain a certain market in specific markets and specific uses, they begin to penetrateinto the mass consumer market.
Form market competition situation of electric two-wheel vehicles
Market participant | Customer group | Brand influence | Channel | Distribution of manufacture base |
Nationwide brand enterprises | Nationwide consumers | With brand popularity in China | Has set up the nationwide marketing network | Select a few of regions with industrial cluster effect in China, establish nationwide manufacture base system |
Regional brand enterprises | Local consumers | With brand popularity in a region | With good marketing network at local place | Establish manufacture base at local place |
Newcomers | A segmenting consumer group (currently they are mainly high-income people in first-tier and second-tier cities) | With brand popularity mainly in first-tier and second-tier cities | Channels mainly concentrated in first-tier and second-tier cities | Outsource some production processes |
2. Industrial drive factors
(1) Policy
The supervision system in the aspect of policy is becoming better, and implementation of New NationalStandard and other industrial policies regulates development of industry and brings development opportunitiesfor head enterprises.1)New National StandardImplementation of New National Standard brings changes in competition order and market volume.The inspection rules of Old National Standard are divided into three categories, veto items, important itemsand common items. The electric bicycle, meeting all veto items, at least 15 ones in 18 important items and atleast 9 items in 13 common items, are deemed as qualified in inspection conclusion. The New National Standarddoes not distinguish the inspection rules of electric bicycle, all technical parameters are compulsory requirements,and insists on the nature of non-motor vehicle of electric bicycle in a few of aspects, for example, the highestvelocity of vehicle shall not exceed 25km/h, and increases the technical requirement to prevent changingmaximum speed.With implementation of New National Standard, in order to further strengthen transportation safetymanagement, the administrative departments implement transition period management policy for the existingelectric bicycles that exceed the standard, and each local government set the transition period. After thetransition period expires, the electric bicycles exceeding the standard will not be allowed to run on the road again.Local governments promulgated the management policies for electric bicycles that exceed the standard, and setdifferent transition periods (generally 5 years, i.e. closing before the end of 2024). And also they strictly executedthe New National Standard, and the digital and smart transport monitoring equipment and execution tools greatlyreduced execution difficulty, therefore, the implementation effect of the New National Standard was good, andthe replacement demand increasing every year extended the industry’s market volume.After implementation of the New National Standard, the demand to electric mopeds and electric motorcyclessignificantly increased, many manufacturers had to pass strict entry examination in order to obtain productionand management qualification. In addition, all electric two-wheel vehicles must pass 3C authentication beforesale in the market, and the authentication would generate certain expenses. These requirements significantlyraised industrial entry barrier and the operating costs of whole vehicle manufacturers, accelerated survival of thefittest in the industry, and had active promotion action for regulating development and competition order ofelectric two-wheel vehicle industry. In view of implementation effect of New National Standard in recent twoyears, integration showed acceleration trend in the industry, and the market share would be concentrated to theleading enterprises.
2)Other important industry policies
The industry supervision and administration policies promulgated and implemented in recent years weremainly related to safety (including riding safety and fire safety). Benefiting from digital and smart transportationmonitoring equipment and execution tools, execution strength and effect continually increase, safety use ofelectric two-wheel vehicles and industrial order were strictly regulated from production end, sales end and userend.
The State Taxation Administration, Ministry of Industry and Information Technology, Ministry of PublicSecurity jointly released Measures for the Use of Motor Vehicle Invoices, which was formally implemented inJuly 2021. Enterprises which manufacture and sell motor vehicles shall issue unified invoices for the motor
vehicles which they have sold according to the principle of “one invoice for one vehicle”, and any electricmotorcycle and electric moped not issued with invoice cannot obtain license plate and run on road. The policyof “one invoice for one vehicle” is convenient for after-sale claim of consumers and effectively removesunsymmetrical competition in the industry.In addition, occurrence of public safety accidents arising from electric two-wheel vehicle on fire catchesmore social attention in recent years. Execution of the rule “electric vehicles shall not be upstairs” is stricter, safecharging had become the focal point in consumption and an important issue affecting the development of theindustry, and generated a huge potential demand market, and also provided room for business expansion andperformance growth.
(2)Society
The common view of “low carbon emission and green transport”, worse traffic jam, influence ofCOVID-19 to commute habit made more users to accept electric two-wheel vehicles.In recent years, governments of various nations continually improved the policy and law system on lowcarbon emission, and advocated the concept of green environmental protection, in order to solve greenhouseeffect. The common view of “low carbon emission and green transport” made electric two-wheel vehiclesaccepted by more customers; traffic jam had become worse day by day, many families and individuals whoowned car or electric four-wheel vehicles were willing to select electric two-wheel vehicles for medium and short-distance travel because they were flexible and convenient. Considering risk of epidemic infection, many peoplegave up closed public transportation and in favor of open personal electric vehicle.
(3)Economy
The medium and short-distance travel demand of residents is basic, transport cost advantage makeselectric two-wheel vehicle as major selection for medium and short-distance travel; the rise of take-outdistribution and other emerging businesses remarkably extend the use scenarios of electric two-wheelvehicles.
With economic development and urbanization progress, the travel radius of residents (including urban andrural residents) continually increases, and the medium and short-distance travel demand is increasing.Compared with other medium and short-distance vehicles, electric two-wheel vehicle has the followingadvantages: economical, convenient, time-saving and labor-saving, and the transportation cost advantage iseven more obvious, this highly meets the demand of residents and it becomes the major selection of residentsfor medium and short-distance travel. This is the basic drive factor of industry development.
Furthermore, when consumption awareness of residents improves and the “Internet +” service model isbecoming mature in China, various door-to-door services have become mainstream of new consumption, take-out services driven under 020 (online/offline) model and express services driven under e-commerce havebecome the new consumption scenarios of electric two-wheel vehicle, which benefits the expansion of industrycapacity.
(4)Technology
In-depth research on the design, technology and process of electric two-wheel vehicles and thecontinuous application of networking and intelligence jointly drive the technological development of theindustry.
Industry technologies are developed mainly in two paths, one is innovation and improvement of the inherenttechnology system of the industry (including material, process and structure), including performanceimprovement of core hardware such as battery, application of new environment-friendly materials and newtechnologies, improvement of vehicle body structure. The other is technical application crossing industries,networking and smart technical application is the R&D field of current important cross-industry technicalapplication. Both of them jointly promote technology development of the industry, improvement of productperformance and function expansion, and it is beneficial that the products in the industry obtain wider marketrecognition. After the leading enterprises with strength in R&D investment acquire economic interest fromresearch and development, they will further increase input in R&D and design, so that it can generate good cycleof R&D - design - manufacture - sale, and promote improvement of industry concentration and whole upgradingof industry.
(5)International demand
Carbon emission reduction is an important strategic consensus formed on a global scale. Under thebackground of the continuous implementation of "carbon peaking and carbon neutrality" policies invarious countries, the international market for electric two-wheel vehicles is showing a growing trend.
Since electric two-wheel vehicle emerged, the domestic market is the major consumption market, but theinternational market has low demand to electric two-wheel vehicles. Compared with electric two-wheel vehicles,motorcycles and electric assistance products with leisure and fitness function are greatly acceptable by overseascustomers. A few of manufacturers in China have a little export business, and they try to build up factories inSoutheast Asia /other countries for developing business, but the effect is very little. While environmentalprotection awareness is being strengthened in the world, many countries promulgate relevant policies for“prohibiting motorcycle” or encouraging “replacing oil with electricity”, and the demand to electric two-wheelvehicles in the international market shows increasing trend, and this provides another huge development spacefor the industry.
3. Industry development trend
Economic transformation and consumption upgrading, application of networking and smarttechnologies and rise of international demand under carbon peaking and carbon neutrality will driveelectric two-wheel vehicle industry developing to differential, high-end, smart and international direction.
(1)Differentiation
Electric two-wheel vehicles in early days mainly met the short-distance travel demand of the public, and theproducts focused at riding function and cost performance, they had simple functions and are homogeneous. Withimprovement of living standard of residents and development of consumption upgrading trend, the consumptiondemand to electric two-wheel vehicles changes to the direction of quality, function, personality and experience,including color, vehicle model and style (such as business, fashion and sports), cruising mileage, smartinteraction, riding comfort, brake safety, stability, etc. In the trend of consumption demand transformation andconsumption upgrading, electric two-wheel vehicles will show differential trend, namely, manufacturers carry outprecise identification and deep research to segmenting consumption demand, and organize customizedproduction according to different personal demands.
(2)High-end
With more intensive competition in the industry, restructuring of industry order and change of consumptiondemand, high-end will be the necessary option of electric two-wheel vehicle industry, and is also only way ofbrand enterprises. High-end trend of the industry includes three aspects: first, product function upgrading andexpansion, second, brand re-positioning and extension, third, overall high-end transformation. Overall high-endtransformation mainly refers to innovation, evolution and upgrading of the existing industrial pattern under thenetworking, smart and digital trend.
(3)Smartness
Consumption upgrading and cross-industry technical application provide opportunities for smartdevelopment of the industry, including development and application of automatic driving, automatic parking,smart navigation, automatic unlocking, health testing, remote failure diagnosis, anti-theft warning and other smartmodules. Especially, new generation people who have been one of the major consumption groups (born after1990 and 2000) pay more attention to smart unlocking, human-vehicle interconnection and other smart functions.With continual development of Internet of vehicles, smart function is hopeful to be the standard functionconfiguration. At that time, electric two-wheel vehicles will not be limited to be short-distance transport vehicle,and they will become an important part of smart networking media system of residents and the important sourceof social networking data.
(4)Internationalization
With formation of international common view on carbon emission reduction and understanding of overseasusers about green and convenient characteristics of electric two-wheel vehicle, international market facesdevelopment opportunity, electric two-wheel vehicle industry will gradually move from domestic market to globalmarket. At present, many domestic manufacturers of China Intensify their efforts to expand the internationalmarket. In spite of the obstruction of trade protectionism in the course of internationalization, the uniqueadvantage of electric two-wheel vehicle industry and the international strategy of some leading enterprises willbe helpful for electric two-wheel vehicles to enter overseas market, and this will become the importantdevelopment trend of this industry.(II) Development strategy of the Company
√Applicable ?Not applicable
The Company will, based on its strategic axis of “Customer-Centricity, Outstanding Products, MarketCultivation, and Diligent Operations” and following its strategic direction of transforming to digital and smarttechnical company, focus its core business and carry out differential competition. The Company will achieveproducts smart and high-end by application of Internet of vehicle technologies and development of corehardware and others, and actively develop international market.(III) Management plan
√Applicable ?Not applicable
1. Product
The Company's core and base was to meet user needs. To meet that goal, constantly improve productforward development processes and develop hot products projects, the Company improves the success rate ofproduct development and the sales contribution rate of best-selling products; continually carries out SKUsimplification, platform orientation, standardization and efficient resource utilization; further makes the wholeprocesses of planning, design, development, manufacturing and procurement smooth, solves coordinationproblem in the course of product development and improves efficiency. The Company continues to optimize andstrictly implement the whole-process quality control system, strictly control the key point management of newproduct quality, increase investment in product testing equipment, and promote the implementation of keycomponent standards to ensure product quality. The Company takes improvement of product service experienceas an important strategic measure of improving brand and product competition, adds input to digital and smartservice platform and professional service team, improves service quality and accelerates service demandresponse.
2. Channel
The Company carries out defined management of domestic channels, insists on value integration directionof factories and dealers, continually adds quantity of shops and optimizes dealers and shops management
system and digital and smart management to improve marketing capacity of dealers and single shop output. TheCompany concurrently adds input to e-commerce platforms and makes more efforts in drawing online attentionand development of new customers, so as to promote online and offline collaborative development.
3. Research and Development
The Company continues to implement the R&D project manager system in depth, focuses on the researchon the application of the Internet of vehicles technology and the research on the core technology of the industry,and at the same time increases the project investment in the application of the R&D results, to actively promotethe transformation of the results.
4. Marketing
The Company continually explores brand publicity strategy in the new online traffic era, improves themarketing capacity of dealers in new flow era and takes adjustment of product structure as marketing point toincrease marketing strength of best selling products.
5. Digital and smart project
The Company continues to promote the construction of digital and intelligent projects, empower all businessunits, and focus on promoting the iterative launch of systems in the three major areas of manufacturing,marketing and information. At the same time, the Company continuously strengthen its ability to "raise data,manage data, and use data", and establishes data-driven management capabilities.
6. Development of international market
The Company increased input, firmly develops international market with localization strategy, focuses onmain markets and realizes collaborative development between key OEM customers and independent brandbusiness; actively promotes overseas localization construction and international manufacturing systemupgrading, and builds core competitive advantages for the global markets.
7. Human resources
The Company further optimizes the organizational level, clarifies functions and responsibilities, and fullyimplements the application of performance results in training, recruitment & promotion, incentives, and otherareas; strengthens cultivation of technicians, improves training and development system of skilled personnel,and improves professional development path of skilled personnel related to remuneration distribution.(IV) Potential risks
√Applicable ?Not applicable
1. More intensive competition in the industry
The competition in the electric two-wheel vehicle industry is more intensive increasingly. In recent years,with regulatory development of industry and optimization of competition order, many small enterprises withdrawfrom the market, and industry competition mainly exists between leading enterprises. This is a new situation.These enterprises continue to reduce sales prices while improving product performance and expanding servicecoverage, greatly increasing the difficulty of competition. If a manufacturer fails to promptly launch high-costperformance products and offer high-quality services according to market demand, it may lose originalcompetition advantage and industrial position. At present, the Company has maintained a leading position in theindustry by virtue of its capabilities of strong product development, technological innovation, excellent costcontrol and quality management, good brand image and user reputation, nationwide marketing channels andservice networks and other competitive advantages. The Company will continually focus on users’ demand, carryout differential competition, realize smart and high-end products by application of Internet of vehiclestechnologies, development of industrial core hardware, improve production efficiency and defined operationthrough digital and smart upgrading, development and cost reduction and raise its cost competition advantage.
2. Product R&D risks
With the improvement of consumers' consumption awareness and the trend of consumption upgradingbecoming more and more obvious, consumers' demand for electric two-wheeled vehicles presents thecharacteristics of fashion, intelligence and networking, which requires electric two-wheeled vehiclemanufacturers to continuously research and predict the trend of consumer demand, continue to carry out productinnovation and technology research and development, and launch new models with new shapes and newfunctions to meet the constantly upgraded consumer needs of users. Failure to meet consumption expectationswill have a negative impact on performance. In addition, the R&D of new models requires a certain period oftime. If a manufacturer takes the lead in developing similar products and locks the relevant patents, it may putpressure on the R&D of other manufacturers. The Company always regards R&D and product innovation as themain means to enhance its product competitiveness and achieve long-term development. Starting from theneeds of users, after years of continuous R&D investment and exploration, it has acquired the relevantcapabilities of accurate user demand positioning, excellent technology and innovation, which makes its productspopular among consumers. The Company will continue to improve the APDS process with a user-centered R&Dstrategy, and enhance the Company's technological capabilities to reduce R&D risks.
3. Management risks to dealers
The main sales model of the Company's products is distribution. Dealers are not only the Company's directcustomers, but also important windows for the Company to show its brand image and enhance its brandreputation to consumers in its distribution areas. The operating capabilities, risk appetite and willingness to workhard of the dealers have a greater impact on the sales of the Company's products in the relevant distributionareas. If the dealer's operation method and service quality are contrary to the Company's business purpose orthe dealer's understanding of the Company's management philosophy deviates, it may have an adverse impacton the Company's business performance and brand image. In this regard, the Company continuously improves
the dealer management system, strictly implements the management standards for dealer access, training,assessment and exit, etc., and establishes a scorecards and dynamic channel management system to “retainwinners and retire losers”, to stimulate the dealer’ working enthusiasm, improve their operation capabilities andensure the vitality and healthy development of the Company's channel system.
4. Material price fluctuation risks
The purchase price of raw materials in the industry is affected by factors such as macro trends and industrialpolicies, and there is the possibility of fluctuations, which increases the difficulty of controlling purchase costsand may have a certain impact on the operating performance of production enterprises. In this regard, theCompany has built and will continue to improve a high-quality and efficient supply chain system, set up a specialsupplier quality management department, and select and integrate global supply chain resources. The Companyinvested in key parts manufacturers to ensure the safety of the supply of key parts; at the same time, for productswith a clear price increase, the Company adopts the method of locking the price in advance and locking thepurchase volume to avoid operating risks caused by sharp price increases. The Company has established closestrategic cooperative relations with major parts suppliers, which is conducive to achieving sufficient supply ofraw materials and stable prices. At the same time, the Company upgrades and optimizes the supply chainplatform through the construction of digital intelligence, realizes the deep synergy between the Company'smanufacturing process and the supply chain system, and hedges the cost control pressure caused by rising rawmaterials with the improvement of production efficiency.
5. Impact of COVID-19 against production and management of the Company
Various measures have been adopted in various places of China to prevent and control the epidemic.However, the repeated outbreak of the new crown epidemic, especially during the period of concentratedoutbreaks of COVID-19 cases, the production, material circulation and other business activities of localproduction enterprises will be negatively affected to varying degrees. The Company's procurement, production,sales and shipping may be affected. In this regard, the Company gives full play to the advantages of its diversifiedand flexible supply chain and the network of production bases that radiate across the country, does a good jobin normalizing the prevention and control of the pandemic, strengthens flexible stocking and lean productionmanagement, and ensure the smooth delivery of procurement, production and sales to reduce COVID-19 impactagainst the Company to the least.(V) Other?Applicable √Not applicable
VII. Explanation for Non-disclosure in Accordance with The Accounting Standard due to Being NotApplicable to The Provisions of The Standard or State Secret and Business Secrete and Other SpecialReasons?Applicable √Not applicable
Section 4 Corporate GovernanceI. Related Information about Corporate Governance
√Applicable ?Not applicable
The Company is operated strictly in accordance with the Company Law, Securities Law and other laws andregulations, as well as the regulations and rules issued by China Regulatory Securities Committee and relevantrequirements of various rules of Shanghai Stock Exchange. Based on its actual situation, the Company hasestablished and improved its corporate governance structure, and actively promoted the optimization of thecorporate governance structure to ensure the maximization of the interests of the Company's shareholders.
The general meeting of shareholders, board of directors, board of supervisors and managers have theirrespective clear rights and responsibilities, and they perform according to their duties and specifications. Fourspecialized committees including the Strategy and Development Committee, Audit Committee, NominationCommittee, Remuneration and Appraisal Committee have been set up under the Board of Directors, and eachspecific committee does its work according to its duties. In 2021, the Company held 4 general meetings ofShareholders, 11 meetings of board of directors and 8 meetings of board of supervisors, reviewing the importantmatters such as external guarantees, related transactions, external investments and equity incentives. Theindependent directors of the Company seriously performed duties, expressed independent opinions on relevantmatters and practically maintained legal interest of all shareholders in accordance with the requirements ofrelevant laws and regulations and the Articles of Association. Concurrently, the Company has formulatedrelevant rules, and continue to amend and improve them, which are effectively executed; The Company hasestablished impartial, transparent performance evaluation standard and incentive and restriction mechanism forsenior executives, and has made comprehensive evaluation with reference to the operation targets of theCompany and its business units, individual ability and performance examination.
The Company continually improves information disclosure quality according to the provisions of the Articlesof Association, Management Method on Information Disclosure and other rules. The Company insists oncombination of statutory information disclosure and voluntary information disclosure and ensure that allshareholders and other stakeholders could obtain the Company’s information equally. Since the Company’slisting date and up to December 31, 2021, the Company has disclosed 57 temporary reports, 2 regular reports.
The Company also strictly executed the Insider Registration and Filing System and done well in management ofinsider information.The Company attaches importance to management and maintenance of investor relations, and continuallyimproves investor relations management level. After listed, in order to know and properly handle the opinionsand proposals of shareholders and investors. the Company communicated with investors in multi-tier and multi-channel manner, including video, telephone, on site, and fully utilized investor hotline, Shanghai Stock ExchangeE Interaction Platform to allow investors to understand the operation and management situation of the Company,the Company also organized institutions for investigation several times and attended strategy conferencesorganized by Securities and Investment Institutes,Indicate whether there was any material incompliance with the applicable laws and regulations, as well asthe CSRC’s requirements in corporate governance. If yes, please explain.?Applicable √Not applicableII. Specific Measures Taken by the Controlling Shareholder and Actual Controller to Guarantee the Asset,Personnel, Financial, Organizational and Business Independence of the Company, as well as Solutions,Progress and Subsequent Plans when the Company’s Independence Is Intervened
√Applicable ?Not applicable
Since incorporation, the Company has been operating strictly according to the Company Law, Articles ofAssociation and other relevant regulations the Company has established and continues to improve corporategovernance structure and is independent of the controlling shareholder, the actual controller and otherenterprises under its control in assets, personnel, finance, organization, business, etc. The Company ownscomplete business system and the ability to operate independently in the market. The concrete situation is asfollows:
(I) Intact assets
The Company was changed in whole and incorporated from a limited company, and all businesses,assets, organization, and relevant claims and debts of the limited company at the time of change in wholeentered into the joint stock company. The Company has the main production system, auxiliary productionsystem and supporting facilities related to production and management, has independent raw materialpurchasing and product selling system, legally owns land use rights, workshop, equipment, intangible assetsand other assets related to production and management, and has the legal and complete ownership or useright of such assets.
(II) Independent personnel
The Company has set up independent human resource department, and has formulated the rules relatedto labor, personnel, salary. The general manager, vice general manager, secretary of board of directors, ChiefFinancial Officer and other senior executives of the Company do not hold positions other than director, supervisorin the controlling shareholder, actual controller of the Company and other enterprises under control thereof, anddo not receive salary in the controlling shareholder, actual controller of the Company and other enterprises undercontrol thereof; the financial staff of the Company do not take any part-time job or receive salary in the controllingshareholder, actual controller of the Company and other enterprises under control thereof; the labor, personneland salary management of the Company is absolutely independent with the controlling shareholder, actualcontroller of the Company and other enterprises under control thereof. The directors, supervisors and seniorexecutives of the Company generate strictly according to the Company Law, Articles of Association and otherrelevant rules.
(III) Independent finance
The Company has established a set of independent, complete and normative accounting system andfinancial management system strictly according to the Accounting Standards for Business Enterprises andrelevant rules, and has established relevant internal control rules and independently makes financial decisions.The Company independently opens banking accounts, pays tax, and does not use any joint account with thecontrolling shareholder, actual controller and other enterprises under control thereof.(IV) Independent organization
The Company has established and continues to improve corporate governance structure, and its generalmeeting of shareholders, board of directors, board of supervisors and senior executives perform their respectiveresponsibilities strictly according to the Company Law and Articles of Association; The Company has establishedthe independent organizational structure suitable for its own developmental needs, and has formulatedreasonable and complete position duties and internal management rules. Each department independentlyoperates according to the stated responsibilities, has independent operation and office space. There is nosituation that the shareholder entities, any other entities or individual interferes with the establishment of theCompany's organization, and the Company has no common institution with the controlling shareholder, actualcontroller and other enterprises under control thereof.((V) Independent businessThe Company owns independent and complete business system including purchasing, production, and salesystem, and has the capacity of independently operating its business in market. The Company has independentmanagement decision-making rights, independently organizes its production and management according tooperation plans, independently carries out business, which is independent with the controlling shareholder,actual controller and other enterprises under control thereof. The Company does not have horizontal competitionor unconscionable related transaction with the controlling shareholder, actual controller and other enterprisesunder control thereof.
Indicate whether the controlling shareholder, the actual controller, or any entity under their control isengaged in the same or similar business with the Company. Explain the impact of horizontal competition or anysignificant change to horizontal competition on the Company, solutions taken, progress and subsequent plans.?Applicable √Not applicable
III. Introduction to General Meetings of Shareholders
Meeting | Date | Index to disclosed resolutions | Disclosure date | Resolutions |
General meeting of 2020 | May 17, 2021 | N/A | N/A | Reviewed and adopted the Work Report of the Board of Directors of 2020, Work Report of the Board of Supervisors of 2020, Final Financial Report of 2020, Proposal on Reviewing Remuneration Situation of Directors, Supervisors and senior executives in 2020 and Remuneration Program for 2021, Proposal on Estimated Daily Related Transactions in 2021, Proposal on Guarantee Plan of the Company in 2021, Proposal on Use of Idle Self-owned Fund for Cash Management, Profit Distribution Plan of 2020, Proposal on Continuing to Employ Accounting Firm for 2021. |
First temporary general meeting of 2021 | August 16, 2021 | www.sse.com.cn | August 17, 2021 | Reviewed and adopted the Proposal on the Company Intends to Sign Project Agreement with the Management Committee of Chongqing Tongliang High-tech Industrial Development Area |
Second temporary general meeting of 2021 | November 15, 2021 | www.sse.com.cn | November 16, 2021 | Reviewed and adopted the Proposal on the Company Intends to Sign the Investment Agreement with the People’s Government of Qingtian County, Lishui City, Proposal on Amending Articles of Association, Proposal on Amending Rules of Procedure of General Meeting of Shareholders, Proposal on Amending Rules of Procedure of Directors’ Meeting, Proposal on Applying for Comprehensive Credit to Bank. |
Third temporary general meeting of 2021 | December 27, 2021 | www.sse.com.cn | December 28, 2021 | Reviewed and adopted the Proposal on Restricted Stock Incentive Plan of the Company for 2021 (Draft) and Its Summary, Proposal on Measures for Examination on Implementation of Restricted Stock Incentive Plan of the Company for 2021, Proposal on Requesting General meeting to Authorize Board of Directors to Handle Equity Incentive Matters. |
Extraordinary general meetings of shareholders convened at the request of preference shareholderswith resumed voting rights:
?Applicable √Not applicableDescription of general meetings of shareholders
√Applicable ?Not applicable
On May 17, 2021, the Company held the general meeting of shareholders of 2020, reviewed and adoptedall proposals. The Company was listed in Shanghai Stock Exchange on June 15, 2021, so it did not publishrelevant announcement about the general meeting of shareholders of 2020 on designated website or media.
IV. Situation of Directors, Supervisors and Senior Executives(I) Shareholding changes and remunerations of incumbent directors, supervisors and senior executives and those who resigned before the end of their tenuresduring the Reporting Period
√Applicable ?Not applicable
In: share
Name | Office title (note) | Gender | Age | Start of tenure | End of tenure | Opening shareholding (share) | Closing shareholding (share) | Change in shareholding in the Reporting Period (share) | Reason for change | Total amount of remuneration pre-tax acquired from the Company in the reporting period (RMB’0000) | Whether acquiring remuneration in the related parties of the Company |
Zhang Jian | Chairman of the Board, general manager | M | 52 | 1999/09/27 | 2022/09/10 | 282,317,000 | 282,317,000 | 186.72 | No | ||
Duan Hua | Vice Chairman of the Board, vice GM | F | 53 | 2013/09/13 | 2022/09/10 | 186.58 | No | ||||
Zhang Gege | Director | F | 28 | 2013/09/13 | 2022/09/10 | 49.20 | No | ||||
Peng Wei | Director | M | 51 | 2009/08/26 | 2022/09/10 | 3,150,000 | 3,150,000 | 34.16 | No | ||
Liu Jianxin | Director | M | 55 | 2009/08/26 | 2022/09/10 | 3,150,000 | 3,150,000 | 0 | No | ||
Fang Hao | Director | M | 47 | 2017/11/28 | 2022/09/10 | 0 | Yes | ||||
Wang Aijian | Independent director | F | 67 | 2018/04/16 | 2022/09/10 | 8.00 | No | ||||
Sun Guangliang | Independent director | M | 58 | 2018/01/24 | 2022/09/10 | 8.00 | No | ||||
Xu Haoran | Independent director | M | 52 | 2018/01/24 | 2022/09/10 | 8.00 | No | ||||
Xu Peng | Chairman of board of supervisors | M | 32 | 2016/09/13 | 2022/09/10 | 28.76 | No | ||||
Li Yan | Employee | F | 38 | 2018/05/07 | 2022/09/10 | 34.44 | No |
supervisor | |||||||||||
Wu Lyubo | Supervisor | M | 53 | 2009/08/26 | 2022/09/10 | 0 | No | ||||
Li Yubao | Vice GM | M | 46 | 2018/01/24 | 2022/09/10 | 181.90 | No | ||||
Wang Chunyan | Vice GM, secretary of board of director | M | 42 | 2018/01/24 | 2022/09/10 | 83.70 | No | ||||
Zheng Hui | Vice GM, Chief Financial Officer | F | 40 | 2021/07/21 | 2022/09/10 | 153.08 | No | ||||
Hu Yupeng | Vice GM | M | 42 | 2020/05/14 | 2022/09/10 | 104.57 | No | ||||
Wang Quanzhang (former) | Vice GM | M | 51 | 2018/01/24 | 2021/03/22 | 4.55 | No | ||||
Hao Hong (former) | Vice GM, Chief Financial Officer | M | 43 | 2013/08/23 | 2021/07/17 | 97.52 | No | ||||
Ren Yong (former) | General manager | M | 41 | 2020/05/14 | 2021/10/31 | 139.47 | No | ||||
Total | / | / | / | / | / | 288,617,000 | 288,617,000 | / | 1,308.65 | / |
Name | Main working experience |
Zhang Jian | Former executive director of Tianjin Qiyu Interactive Technology Co., Ltd., former director of Tianjin Sanshang Investment Management Co., Ltd. Current Chairman of the Board and general manager of the Company. |
Duan Hua | Former vice general manger of Aima Technology. Current vice Chairman of the Board, vice general manger. |
Zhang Gege | Former general manager assistant, former secretary of Chairman of the Board of the Company. Current director of the Company, executive director and general manager of Tianjin Suiwanwan, executive partner of Changxin Dingai. |
Peng Wei | Former general manager of Tianjin Bond Fushida Electric Vehicle Co., Ltd., former general manager of Aima Sports. Current director of the Company. |
Liu Jianxin | Former safety commissioner of the Company, former vice general manager of Tianjin Bond Fushida Electric Vehicle Co., Ltd., former director and general manager of Tianjin Lepuning Packaging Materials Co., Ltd. Current director of the Company, current supervisor of Tianjin Sanshang Investment Management Co., Ltd. |
Fang Hao | Former general manager of CITIC Securities Co., Ltd., former executive director and general manager of Qingdao Jinshi Hanna Investment Co., Ltd. Current director and general manager of the Company, current director of China National Gold Group Gold Jewellery Co., Ltd., director of CITIC Industry Investment Fund Management Co., Ltd., director of Zhejiang Huayou New Energy Technology Co., Ltd director of Zhejiang Xingxing Cold Chain Integration Co., Ltd., director of Jupiter Connection Limited, director of Neptune Connection Limited, director of Uranus Connection Limited, director of Pluto Connection Limited, director of CS Regal Holding Limited, director of CSI Capricornus Limited, director of China Investment and Financing Guarantee Co., Ltd., director of Shenzhen BGI Smart Manufacture Technology Corp., Ltd., general manager of Guangzheng Lingxiu Investment Co., Ltd. |
Wang Aijian | Former vice president of Tianjin University of Finance and Economics, and former director of Tianjin Pharmaceutical Group Co., Ltd. Current independent director of the Company, teacher of Tianjin University of Finance and Economics, independent director of TASLY PHARMACEUTICAL GROUP CO., LTD., director of Northern International Trust Co., Ltd. and etc. |
Sun Guangliang | Former lawyer of China Legal Affairs Center, lawyer of Zhongxin Law Firm, independent director of Daheng New Epoch Technology, Inc. Current independent director of the Company, director of Beijing Huatang Law Firm, independent director of Dongxing Securities Corporation Limited and etc. |
Xu Haoran | Former senior vice president of Far East Holding Group, senior editor of Jiangsu Broadcasting Corporation, director journalist of Guangdong Television Station. Current independent director of the Company, supervisor of Far East Holding Group Co., Ltd., vice Chairman of the Board of Beijing Youshi Capital Management Co., Ltd., director of TOJOY Holding Group Co., Ltd., executive director of TOJOY (Qingdao) Financial Technology Group Co., Ltd., Chairman of the Board of Yonghu Cross-border E-commerce Co., Ltd., supervisor of Jiangsu Tianzheng Media Advertising Co., Ltd., supervisor of Beijing Huizhi Huaxia Business Management Consultation Co., Ltd. |
Xu Peng | Former Chairman of the Board of Tianjin Bond Fushida Electric Vehicle Co., Ltd., former general manager assistant of Tianjin Sanshang Investment Management Co., Ltd. Current chairman of board of supervisors of the Company. |
Li Yan | Former section chief of Supplier Management Section of Procurement Department of the Company, former secretary of vice Chairman of the Board, former director of Improvement Office, Brand Management Center, former director of office of vice Chairman of the Board. Current employee supervisor, product manager of R & D Department of the Company. |
Wu Lyubo | Former director of General Affairs Department, former vice director of Business Management Department, former director of Department of Supervision, former public relationship manager of Administrative Department of the Company. Current supervisor of the Company. |
Li Yubao | Former director of Procurement Department of Tianjin New Times Vehicle Industry Co., Ltd., former director of Procurement Department of Tianjin Taimei Bicycle Co., Ltd., former supervisor of Procurement Department of the Company. Current vice general manager of the Company. |
Wang Chunyan | Former lecturer of Shanghai Ocean University, former Chairman of the Board and president of Tianjin Sanshang Investment Management Co., Ltd. Current vice general manager, secretary of board of directors of the Company. |
Zheng Hui | Former financial manager of Product Company of Midea Group Co., Ltd., former vice general manager, Chief Financial Officer of Meizhi Photoelectric Technology Co., Ltd., former vice general manager of Foshan Hange E-commerce Technology Co., Ltd., former Senior Financial Director of Foshan Yunmi Electric Technology Co., Ltd., former Senior Financial Director of the Company. Current vice general manager, Chief Financial Officer of the Company. |
Hu Yupeng | Former employee of Beijing Youshi Accurate Marketing Management Consultation Co., Ltd., former general manager of Wuhan Youshi Accurate Marketing Management Consultation Co., Ltd., former general manager of Wuhan Zhuoyue Youshi Accurate Marketing Management Consultation Co., Ltd., former operations director of the Company. Current vice general manager of the Company. |
Wang Quanzhang (former) | Former workshop director of Xuchang Machine Manufacture Factory, former general manager assistant of Xinlong Industrial Co., Ltd., former Lean Promotion Office of Structure Branch of XJ Electric Co., Ltd., former assistant manager of Tianjin Xinlong Co., Ltd, former improvement Promotion Department, General Manager’s Office of the Company, former director of General Manager’s Office, former vice general manager of the Company. Current information technology consultant of the Company. |
Hao Hong (former) | Former director of Planning Department of LG Electronic (Tianjin) Electrical Equipment Co., Ltd., former financial manager of OTIS (China) Co., Ltd., former director of Financial Plan & Analysis Department, former director of Financial Management Department, former vice general manager of the Company. Current director of audit center of Audit Center of the Company. |
Ren Yong (former) | Former domestic sale general manager of Domestic Appliance Business Department of Midea Group Co., Ltd., former senior superintendent of President’s Office, former senior superintendent in market construction and coordination of China Region, former general manager of innovative services of VATTI CORPORATION LIMITED, former general manager of Jizhi Kitchen, former vice general manager, general manager of the Company. Current strategic development consultant of the Company. |
Description of other situation
√Applicable ?Not applicable
1. In March 2021, Wang Quanzhang, vice general manager of the Company, resigned for personal reasons.
2. On July 21, 2021, the 18
thmeeting of the fourth board of directors of the Company reviewed and adopted the Proposal on Appointing Vice General Manager and ChiefFinancial Officer of the Company. Hao Hong resigned job of vice general manager and Chief Financial Officer for work need, and acted as director of Audit Center of theCompany after the resignation; Zheng Hui was employed as vice general manager and Chief Financial Officer of the Company.
3. On July 30, 2021, the 19
thmeeting of the fourth board of directors of the Company reviewed and adopted the Proposal on Appointing General Manager of the Company, inconsideration of operation and long-term development strategy of the Company, Chairman of the Board Zhang Jian would not act as general manager concurrently; Ren Yongwas employed as general manager of the Company.
4. On November 16, 2021, the Company held the 23
rdmeeting of the fourth board of directors of the Company reviewed and adopted the Proposal on Appointing GeneralManager of the Company, Ren Yong applied for resignation of the position of general manager of the Company for job change, and would act as strategic developmentconsultant of the Company after resignation; in consideration of operation and long-term development strategy of the Company, Mr. Zhang Jian was employed as generalmanager of the Company.
(II) Incumbency of current and resigned directors, supervisors and senior executives during thereporting period
1. Position at the shareholder entity
√Applicable ?Not applicable
Name of in-service staff | Name of shareholding entity | Position held in shareholder entity | Starting date of tenure | Ending date of tenure |
Fang Hao | CITIC Securities Investment Co., Ltd. | Director, general manager | August 2017 | |
Statement of the position held in shareholding entity | N/A |
2. Statement of the position held in other entities
√Applicable ?Not applicable
Name of in-service staff | Name of other entities | Position held in other entities | Starting date of tenure | Ending date of tenure |
Zhang Jian | Tianjin Jiema Electric Technology Co., Ltd. | Director | Jan. 2019 | |
Zhang Jian | Tianjin Tianli Electric Bicycle Co., Ltd. | Executive director | Jul. 2019 | |
Zhang Jian | Aima Nanfang Co., Ltd. | General manager | Aug. 2013 | |
Zhang Jian | Zhejiang Today Sunshine New Energy Vehicle Co., Ltd. | Director | Aug. 2016 | Feb. 2022 |
Duan Hua | Jiangsu Aima Vehicle Technology Co., Ltd. | Supervisor | Nov. 2018 | |
Duan Hua | Zhejiang Beisite Supply Chain Management Co., Ltd. | Supervisor | Aug. 2021 | |
Duan Hua | Chongqing Xiaoma Smart Technology Co., Ltd. | Supervisor | Jan. 2022 | |
Duan Hua | Aima Technology (Chongqing) Co., Ltd. | Supervisor | Apr. 2021 | |
Duan Hua | Aima Technology (Zhejiang) Co., Ltd. | Supervisor | Aug. 2021 | |
Duan Hua | Tianjin Xiaoma Network Technology Co., Ltd. | Supervisor | Jun. 2017 | |
Duan Hua | Tianjin Aima Shared Technology Service Co., Ltd. | Supervisor | Aug. 2017 | |
Duan Hua | Tianjin Tianli Electric Bicycle Co., Ltd. | Supervisor | Jul. 2019 | |
Duan Hua | Guangdong Aima Vehicle Technology Co., Ltd. | Supervisor | Dec. 2018 | |
Duan Hua | Chongqing Aima Vehicle Technology Co., Ltd. | Supervisor | Aug. 2021 | |
Duan Hua | Xiaopa Electric Technology (Shanghai) Co., Ltd. | Supervisor | Nov. 2018 | |
Duan Hua | Tianjin Jinge Industrial Design Co., Ltd. | Supervisor | Jun. 2020 | |
Duan Hua | Aima Technology (Hainan) Co., Ltd. | Supervisor | Apr. 2021 | |
Duan Hua | Zhejiang Aima Vehicle Technology Co., Ltd. | Supervisor | Mar. 2019 | |
Duan Hua | Aima South Co., Ltd. | Supervisor | Jul. 2020 | |
Duan Hua | Tianjin Aima Vehicle Technology Co., Ltd. | Supervisor | Apr. 2017 | |
Duan Hua | Sichuan Aima Technology Co., Ltd. | Supervisor | Jan. 2017 | |
Duan Hua | Henan Aima Vehicle Technology Co., Ltd. | Supervisor | Mar. 2019 | |
Duan Hua | Shenzhen Aima Zhixing Technology Co., Ltd. | Supervisor | Aug. 2021 | |
Duan Hua | Guangxi Aima Vehicle Technology Co., Ltd. | Supervisor | Jan. 2018 | |
Duan Hua | Tianjin Suiwanwan Cultural Communication Co., Ltd. | Supervisor | Aug. 2016 | |
Duan Hua | Tianjin Aima Sports Goods Co., Ltd. | Supervisor | Mar. 2017 | |
Zhang Gege | Tianjin Suiwanwan Cultural Communication Co., Ltd. | Manager, executive director | Aug. 2016 | |
Zhang Gege | Changxin Dingai Investment Management Partnership (Limited Partnership) | Executive partner | Dec. 2017 | |
Peng Wei | Tianjin Tianli Electric Bicycle Co., Ltd. | Manager | Nov. 2021 | |
Peng Wei | Chongqing Aima Vehicle Technology Co., Ltd. | Executive director | Aug. 2021 | |
Peng Wei | Xiaopa Electric Technology (Shanghai) Co., Ltd. | Executive director | Mar. 2022 | |
Liu Jianxin | Tianjin Sanshang Investment Management Co., Ltd. | Supervisor | Feb. 2017 | |
Fang Hao | CITIC Industry Investment Fund Management Co., Ltd. | Director | Jun. 2018 | |
Fang Hao | Zhejiang Huayou New Energy Technology Co., Ltd. | Director | May 2019 | |
Fang Hao | China Investment and Financing Guarantee Co., Ltd. | Director | Nov. 2019 | |
Fang Hao | Zhejiang Xingxing Cold Chain Integration Co., Ltd. | Director | Dec. 2019 | |
Fang Hao | China National Gold Group Gold Jewellery Co., Ltd | Director | Oct. 2017 | |
Fang Hao | Shenzhen BGI Smart Manufacture Technology Co., Ltd. | Director | Jun. 2020 | |
Fang Hao | CSI Capricornus Limited | Director | ||
Fang Hao | Jupiter Connection Limited | Director | ||
Fang Hao | Neptune Connection Limited | Director | ||
Fang Hao | Uranus Connection Limited | Director | ||
Fang Hao | Pluto Connection Limited | Director |
Fang Hao | CS Regal Holding Limited | Director | ||
Fang Hao | Sailing International Investment Fund (Shanghai) Co., Ltd. | Director | Jun. 2021 | |
Fang Hao | Xi’an Yisiwei Material Technology Co., Ltd. | Director | Jul. 2021 | |
Fang Hao | Guangzheng Lingxiu Investment Co., Ltd. | Executive director, general manager | Dec. 2020 | |
Fang Hao | Hunan Steel Group Co., Ltd. | Director | Oct. 2021 | |
Fang Hao | Citron PE Holdings Limited | Director | ||
Wang Aijian | Northern International Trust Co., Ltd. and etc. | Director | Dec. 2015 | |
Wang Aijian | TASLY PHARMACEUTICAL GROUP CO., LTD. | Independent director | Jun. 2021 | |
Sun Guangliang | Dongxing Securities Corporation Limited | Independent director | Dec. 2017 | |
Sun Guangliang | CITIC Metal Co., Ltd. | Independent director | Sep. 2020 | |
Sun Guangliang | Beijing Huatang Law Firm | Director | Jan. 1998 | |
Xu Haoran | Beijing Youshi Capital Management Co., Ltd. | Vice Chairman of the Board | Sep. 2019 | |
Xu Haoran | Kunming Mengtang Technology Co., Ltd. | Director | Dec. 2015 | |
Xu Haoran | Beijing Gaopeng Tianxia Investment Management Co., Ltd. | Director | Jul. 2014 | |
Xu Haoran | Jiangsu Tianzheng Media Advertising Co., Ltd. | Supervisor | Mar. 2004 | |
Xu Haoran | Chongqing Yunhuan Cultural Industry (Group) Co., Ltd. | Director | Oct. 2018 | |
Xu Haoran | TOJOY Holding Group Co., Ltd. | Director | Sep. 2020 | |
Xu Haoran | Guangzhou Dingda Educational Information Consultation Co., Ltd. | Supervisor | Aug. 2008 | |
Xu Haoran | Yonghu Cross-border E-commerce Co., Ltd. | Chairman of the Board | Jul. 2018 | |
Xu Haoran | Beijing Huizhi Huaxia Business Management Consultation Co., Ltd. | Supervisor | May 2021 | |
Xu Haoran | Chongqing Yunyixuan Cultural Technology Co., Ltd. | Director | Jun. 2017 | |
Xu Haoran | Qinzhi Digital Technology Co., Ltd. | Director | Jul. 2015 | |
Xu Haoran | Far East Holding Group Co., Ltd. | Supervisor | Jan. 2019 | |
Xu Haoran | TOJOY (Qingdao) Financial Technology Group Co., Ltd. | Executive director | Oct. 2019 | |
Xu Peng | Taizhou Aima Vehicle Manufacture Co., Ltd. | Executive director | Nov. 2021 | |
Xu Peng | Aima Growth Venture Capital (Ningbo) Co., Ltd. | Executive director | Nov. 2021 | |
Xu Peng | Lishui Aima Vehicle Technology Co., Ltd. | Executive director | Dec. 2021 | |
Li Yubao | Zhejiang Best Supply Chain Management Co., Ltd. | Manager, executive director | Aug. 2021 | Mar. 2022 |
Hao Hong (former) | Jiangsu Aima Vehicle Technology Co., Ltd. | Executive director | Jun. 2020 | |
Hao Hong (former) | Aima Technology (Chongqing) Co., Ltd. | Executive director | Apr. 2021 | |
Hao Hong (former) | Tianjin Xiaoma Network Technology Co., Ltd. | Executive director | May 2020 | |
Hao Hong (former) | Tianjin Aima Shared Technical Service Co., Ltd. | Executive director | May 2020 | |
Hao Hong (former) | Guangdong Aima Vehicle Technology Co., Ltd. | Executive director | Jun. 2020 | |
Hao Hong (former) | Aima Technology (Hainan) Co., Ltd. | Executive director | Apr. 2021 | |
Hao Hong (former) | Zhejiang Aima Vehicle Technology Co., Ltd. | Executive director | May 2020 | |
Hao Hong (former) | Aima South Co., Ltd. | Executive director | Jul. 2020 | |
Hao Hong (former) | Tianjin Aima Vehicle Technology Co., Ltd. | Executive director | May 2020 | |
Hao Hong (former) | Sichuan Aima Technology Co., Ltd. | Executive director | May 2020 | |
Hao Hong (former) | Henan Aima Vehicle Technology Co., Ltd. | Executive director | Sep. 2020 | |
Hao Hong (former) | Shenzhen Aima Zhixing Technology Co., Ltd. | Executive director | Aug. 2021 | |
Hao Hong | Guangxi Aima Vehicle Technology Co., Ltd. | Executive director | May 2020 |
(former) | ||||
Hao Hong (former) | Tianjin Aima Sports Goods Co., Ltd. | Executive director | May 2020 | |
Ren Yong (former) | Guangdong Chengyi Technology Co., Ltd. | Chairman of the Board, manager | Dec. 2021 | |
Ren Yong (former) | Guangdong Guidepost Investment Co., Ltd. | Manager, executive director | Jan. 2022 | |
Description of taking office in other units | N/A |
(III) Remunerations of directors, supervisors and senior executives
√Applicable ?Not applicable
Decision-making process for the remuneration of directors, supervisors and senior executives | The Remuneration and Appraisal Committee of the board of directors brings forth a proposal to the board of directors about remuneration of directors and senior executives of the Company. The board of directors decides remuneration of management, reward and punishment affairs, and general meeting of shareholders decides remuneration affairs of directors and supervisors. |
Basis for deciding the remuneration of directors, supervisors and senior executives | The Company determines the remuneration of directors, supervisors and senior executives according to the Articles of Association and relevant rules. |
Actual payment of remuneration for directors, supervisors and senior executives | The directors Liu Jianxin, Fang Hao are external directors who have not acted as other positions in the Company and do not receive remuneration in the Company; the supervisor Wu Lyubo is shareholder representative supervisor and does not receive remuneration in the Company; the remunerations of other directors, supervisors and senior executives are paid by the Company according to relevant rules. |
Total remuneration actually obtained by all directors, supervisors and senior executives at the end of reporting period | 1,308.65 RMB’0000 |
(IV) Changes in directors, supervisors and senior executives
√Applicable ?Not applicable
Name | Position | Change | Reason of change |
Wang Quanzhang | Vice general manager | Resigned | Personal reason |
Hao Hong | Vice general manager, Chief Financial Officer | Resigned | Job adjustment |
Zheng Hui | Vice general manager, Chief Financial Officer | Employment | General manager nominates to employ |
Ren Yong | General manager | Resigned | Job adjustment |
Zhang Jian | General manager | Employment | Chairman of the Board nominates to employ |
(V) Punishments imposed by securities regulators in the past three years?Applicable √Not applicable(VI) Other?Applicable √Not applicableV. Board Meetings Convened during the Reporting Period
Meeting | Convening date | Resolutions |
14th meeting of the fourth board of directors | January 31, 2021 | Reviewed and adopted the Proposal on Approving Financial Statement Reviewing Report of 2020. |
15th meeting of the | March 23, 2021 | Reviewed and adopted the Proposal on Approving the Audited |
fourth board | Financial Report of 2018, 2019 and 2020, the Proposal on Confirming the Related Transactions of the Company in 2020. | |
16th meeting of the fourth board | April 27, 2021 | Reviewed and adopted the Work Report of Board of Directors of 2020, Final Financial Report of 2020, Motion to approve the review report of the financial statements for the three-month period ending March 31, 2021, Proposal on Reviewing Remuneration Situation of Directors, Supervisors and senior executives in 2020 and Remuneration Program for 2021, Proposal on Estimated Daily Related Transactions in 2021, Proposal on Guarantee Plan of the Company in 2021, Proposal on Use of Idle Self-owned Fund for Cash Management, Profit Distribution Plan of 2020, Proposal on Continuing to Employ Accounting Firm for 2021,Proposal on Holding General Meeting of shareholders of 2020. |
17th meeting of the fourth board | June 23, 2021 | Reviewed and adopted the Proposal on Amending Articles of Association and Completing Business Change Registration, Proposal on Using Raised Fund for Providing Loan to Wholly-owned Subsidiaries for Implementing Raised Investment Projects, Proposal on Using Temporary Idle Raised Fund for Cash Management. |
18th meeting of the fourth board | July 21, 2021 | Reviewed and adopted the Proposal on Adjusting Organizational Structure of the Company, Proposal on Employing Vice General Manager and Chief Financial Officer of the Company, Proposal on Using Raised Fund for Replacing Raised Investment Projects Inputted in Advance and Self-raised Fund of Paid Issuance Expenses. |
19th meeting of the fourth board | July 30, 2021 | Reviewed and adopted the Proposal on the Company Intends to sign the Project Agreement with the Management Committee of Chongqing Tongliang High-tech Industrial Development Area, Proposal on Employing General Manager of the Company, Proposal on Holding the First Temporary General Meeting of shareholders of the Company in 2021. |
20th meeting of the fourth board | August 26, 2021 | Reviewed and adopted the Proposal on Semi-annual Report of 2021 and Its Summary, Proposal on Adjusting the Limit of Using Temporary Idle Raised Fund for Cash Management and Extending Term of Investment, Proposal on Special Report for Semi-annual Deposit and Use Situation of Raised Fund of 2021, the Proposal on Employing Representative of Securities Affairs. |
21st meeting of the fourth board | September 3, 2021 | Reviewed and adopted the Proposal on the Company Intends to Sign the Agreement for Investment on Taizhou Smart Electric Vehicle and High-speed Electric Motorcycle Project. |
22nd meeting of the fourth board | October 28, 2021 | Reviewed and adopted the Proposal on Report of Third Quarter of 2021, Proposal on the Company Intends to Sign the Investment Agreement with the People’s Government of Qingtian County, Lishui City, Proposal on Amending Articles of Association, Proposal on Amending Rules of Procedure for General Meeting of Shareholders, Proposal on Amending Rules of Procedure for Board of Directors, Proposal on Holding the Second Temporary General Meeting of Shareholders of the Company in 2021, Proposal on Applying for Comprehensive Credit Line to Bank. |
23rd meeting of the fourth board | November 16, 2021 | Reviewed and adopted the Proposal on Restricted Stock Incentive Plan of 2021 (Draft) of the Company and Its Summary, Proposal on Examination Management Measures for Implementation of Restricted Stock Incentive Plan of 2021 of the Company, Proposal on Requesting General Meeting to Authorize Board of Directors to Handle Matters Related to Equity Incentive, Proposal on Employing General Manager of the Company, Proposal on Holding the Third Temporary General Meeting of Shareholders of the Company in 2021. |
24th meeting of the fourth board | December 27, 2021 | Reviewed and adopted the Proposal on Adjusting the List of First Granted Incentive Objects Under Restricted Stock Incentive Plan of 2021 and Quantity of Equity Granted, Proposal on Granting Restricted Stock to Incentive Objects First Time, Proposal on Formulating Internal Audit Rules, Proposal on Formulating Internal Control Rules. |
VI. Performance of Duty by Directors(I) Attendance of directors at board meetings and general meetings of shareholders during the ReportingPeriod
Name of director | Independent director or not | Attendance at board meetings | Attendance at general meetings of shareholders | |||||
Total number of board meetings The director was supposed to attend | Board meetings attended on site | Board meetings attended by way of telecommunication | Board meetings Attended through a proxy | Absence | The director failed to attend two consecutive board meetings (yes/no) | Total number of general meetings of shareholders the director was supposed to attend | ||
Zhang Jian | No | 11 | 11 | 7 | 0 | 0 | No | 4 |
Duan Hua | No | 11 | 11 | 7 | 0 | 0 | No | 4 |
Zhang Gege | No | 11 | 11 | 7 | 0 | 0 | No | 4 |
Peng Wei | No | 11 | 11 | 7 | 0 | 0 | No | 4 |
Liu Jianxin | No | 11 | 11 | 10 | 0 | 0 | No | 4 |
Fang Hao | No | 11 | 11 | 11 | 0 | 0 | No | 3 |
Wang Aijian | Yes | 11 | 11 | 11 | 0 | 0 | No | 3 |
Sun Guangliang | Yes | 11 | 11 | 11 | 0 | 0 | No | 3 |
Xu Haoran | Yes | 11 | 11 | 11 | 0 | 0 | No | 3 |
Explain why any director failed to attend two consecutive board meetings.?Applicable √Not applicable
Total number of board meetings convened in the Reporting Period | 11 |
Of which: on-site meetings | 0 |
Meetings convened by way of telecommunication | 7 |
Meetings where on-site attendance and attendance by telecommunication were both allowed | 4 |
(II) Objections raised by directors on matters of the Company?Applicable √Not applicable(III) Other?Applicable √Not applicableVII. Specialized Committees under the Board of Directors
√Applicable ?Not applicable
(1).Members of the specialized committees
Specialized committee | Members |
Audit Committee | Wang Aijian, Sun Guangliang, Xu Haoran Zhang Jian |
Nomination Committee | Wang Aijian, Sun Guangliang, Xu Haoran |
Remuneration and Appraisal Committee | Wang Aijian, Sun Guangliang, Xu Haoran |
Strategy and Development Committee | Wang Aijian, Sun Guangliang, Xu Haoran, Zhang Jian |
(2).The Remuneration and Appraisal Committee held two meetings during the Reporting Period.
Convening date | Content of meeting | Important comments and suggestions | Other performance of duties |
November 15, 2021 | Reviewed the Proposal on Restricted Stock Incentive Plan of 2021 (Draft) of the Company and Its Summary, Proposal on Examination Management Measures for Implementation of Restricted Stock Incentive Plan of 2021 | Agree to submit to the board of directors for deliberation | Nil |
of the Company, Proposal on Verifying the List of Incentive Objects of the 2021 Restricted Stock Incentive Plan. | |||
December 22, 2021 | Reviewed the Proposal on Adjusting the List of First Granted Incentive Objects Under Restricted Stock Incentive Plan of 2021 and Quantity of Equity Granted, Proposal on Granting Restricted Stock to Incentive Objects First Time. | Agree to submit to the board of directors for deliberation | Nil |
(3).The Audit Committee held five meetings during the Reporting Period.
Convening date | Content of meeting | Important comments and suggestions | Other performance of duties |
January 29, 2021 | Reviewed the Proposal on Approving Financial Statement Reviewing Report of 2020. | Agree to submit to the board of directors for deliberation | Nil |
March 22, 2021 | Reviewed the Proposal on Approving the Audited Financial Report of 2018, 2019 and 2020, the Proposal on Confirming the Related Transactions of the Company in 2020 | Agree to submit to the board of directors for deliberation | Nil |
April 26, 2021 | Reviewed the Final Financial Report of 2020, Proposal on Approving the Financial Statement Reviewing Report in the Period of Three Period up to March 31, 2021, Proposal on Estimated Daily Connected Transactions for 2021, Proposal on Continually Employing the Accounting Firm for 2021 | Agree to submit to the board of directors for deliberation | Nil |
August 25, 2021 | Reviewed the Proposal on Semi-annual Report of 2021 and Its Summary, Proposal on Special Report for Semi-annual Deposit and Use Situation of Raised Fund of 2021 | Agree to submit to the board of directors for deliberation | Nil |
October 26, 2021 | Reviewed the Proposal on Third Quarter Report of 2021 | Agree to submit to the board of directors for deliberation | Nil |
(4).The Nomination Committee held three meetings during the Reporting Period.
Convening date | Content of meeting | Important comments and suggestions | Other performance of duties |
July 20, 2021 | Reviewed the Proposal on Employing Vice General Manager and Chief Financial Officer of the Company | Agree to submit to the board of directors for deliberation | Nil |
July 29, 2021 | Reviewed the Proposal on Employing General Manager of the Company | Agree to submit to the board of directors for deliberation | Nil |
November 15, 2021 | Reviewed the Proposal on Employing General Manager of the Company | Agree to submit to the board of directors for deliberation | Nil |
(5).Specification of Objections
?Applicable √Not applicableVIII. Risks Detected by the Board of Supervisors?Applicable √Not applicableThe board of supervisor raised no objections during the Reporting Period.IX. Employees of the Company as the Parent and Its Principal Subsidiaries at the Period-end(I) Employees
Number of in-service employees of the Company as the parent | 1,073 |
Number of in-service employees of principal subsidiaries | 6,215 |
Total number of in-service employees | 7,288 |
Number of retirees to whom the Company as the parent or its principal subsidiaries need to pay retirement pensions | 0 |
Functions | |
Function | Employees |
Production | 4,516 |
Sales | 1,081 |
Technical | 924 |
Financial | 150 |
Administrative | 617 |
Total | 7,288 |
Educational background | |
Category of education level | Quantity (person) |
Doctor | 5 |
Master | 68 |
Undergraduate | 1,087 |
Junior College and Technical secondary school | 1,090 |
High school and below | 5,038 |
Total | 7,288 |
(II) Remuneration policy
√Applicable ?Not applicable
Guided by the Fighters Culture and the performance-oriented idea, The Company implements aremuneration policy that is internally fair, externally competitive, and based on performance evaluation, whichtakes the post system as the standard and the qualification evaluation as the basis to establish a sound, scientificand reasonable promotion and compensation system. At the same time, through the implementation of incentivemeasures such as equity incentives, the Company has realized the deep binding between its interests and thekey employees and improved loyalty. Under its framework of overall compensation system, for key businesses(including marketing, R&D and manufacturing), the Company conducts performance appraisals based onbusiness attributes and the final realization of the value of related products, including hot product developmentand marketing incentive, and reward of production process improvements, etc.(III) Training plans
√Applicable ?Not applicable
The Company appreciated human capital under the talent management idea of “showing respect for our staff,improving their competence and making them happy”. In the aspect of talent team construction, the Companycultivated the “talent forest” idea by external recruitment and internal training to attract experienced R&D talentsand formed “talent forest”; it also conducted on-campus recruitment for graduating students from universitiesand colleges as its talent reserve. The Company focused on talent cultivation, talent development and manager-trainee program, and established qualification system for professionals and technicians. The Company set uptraining platform (Aida Course) and released “navigation courses” and “initiation courses” for top managementand low-level managers. In 2021 the platform provided innovation TRIZ courses, cross-culture courses, coursesfor gold medal technicians, operator training courses, courses for gold medal team leaders and courses forcraftsmen. And there are Young Eagle Training Camp and Eagle Mentor Training Program for 2021 graduates.(IV) Labor outsourcing
√Applicable ?Not applicable
Total remuneration paid for labor outsourcing | RMB73,615,077.43 |
X. Plan on Profit Distribution or Conversion of Capital Reserve(I) Formulation, implementation or adjustment of the cash dividend policy
√Applicable ?Not applicable
1. According to the Articles of Association, the cash dividend policy of the Company is as below:
If the Company’s profit for the year and the accumulative undistributed profit are positive, and it has nosignificant investment plan or material cash spending, the Company shall give priority to cash dividends in theprofit distribution, which shall be no less than 20% of distributable profit recorded in the year, provided that suchdistribution shall not prejudice the normal operation and long-term business development of the Company. Thedividend ratio of each year shall be formulated by the board of directors according to the operation condition andrelevant regulations, and submitted to the general meeting for consideration and approval.When proposing the profit distribution, the board of directors shall take into consideration of the industrycharacteristics, ranking in the industry, competition power, profit margin when determining the Company’sdevelopment stage, and whether it has any significant capital expenditure arrangements, and formulate the profitdistribution proposal, in accordance with the provisions set out below:
(1) If the Company is at the mature stage, and has no significant capital expenditure arrangement, the ratioof cash dividends shall be at least 80%in the profit distribution.
(2) If the Company is at the mature stage, and has a significant capital expenditure arrangement, the ratioof cash dividends shall be at least 40% in the profit distribution.
(3) If the Company is at the growing stage, and has a significant capital expenditure arrangement, the ratioof cash dividends shall be at least 20% in the profit distribution.
(4) If it is difficult to determine the development stage of the Company while it has a significant capitalexpenditure arrangement, the profit distribution may be dealt with according to the rules applied in the previousparagraph.
2. Pursuant to the resolution at the 25th meeting of the fourth session of the Board, the Company intendsto take the total shares on the registration date as the basis to execute the profit distribution and capitalizationof capital reserve in year 2021 as below:
(1) The Company intends to distribute a cash dividend of RMB5.00 (tax included) per 10 shares to allshareholders. Based on the total share capital of 410,440,003 shares of the Company so far, the cash dividend
to be distributed as above will be RMB 205,220,001.50 in total (tax included). The cash dividend of the Companyin this year accounts for 30.91% in the net profit attributable to common shareholders of the Company. After theprofit distribution, the remaining balance of undistributed profit will be accumulated for further distribution in theyears to come.
(2) The Company intends to issue 4 shares converted by capital reserve, per 10 shares to all shareholders.Based on the total share capital of 410,440,003 shares of the Company so far, the total shares of the Companywill increase to 574,616,004 shares after this conversion (the total share capital of the Company is based on thefinal registration result of China Securities Depository and Clearing Corporation Limited Shanghai Branch, incase of the rounding differences if any)
Before the equity registration date of equity distribution, if the total equity of the Company changes due toequity-based incentives, repurchase and cancellation of shares granted by equity-based incentives and othermatters, the Company intends to maintain the ratio of distribution and conversion unchanged, andcorrespondingly adjust the amount of profit distribution and capital reserve capitalization. This matter needs tobe submitted to the 2021 annual general meeting of the Company for consideration.(II) Special description of cash dividend policy
√Applicable ?Not applicable
In compliance with the Company’s Articles of Association or the relevant resolutions of general meeting of shareholders | √Yes ?No |
Specific and clear dividend standards and ratios | √Yes ?No |
Complete decision-making procedure and mechanism | √Yes ?No |
Independent directors have faithfully performed their duties and played their due role | √Yes ?No |
Non-controlling shareholders are able to fully express their opinion and demand and their legal rights and interests are fully protected | √Yes ?No |
(III) Where the Company fails to put forward a cash dividend proposal despite the facts that the Companyhas made profits in the Reporting Period and the profits of the Company as the parent distributable toshareholders are positive, it shall give a detailed explanation of why, as well as of the purpose and useplan for the retained earnings.?Applicable √Not applicableXI. Status and Impact of Share Incentive Schemes, Employee Shareholding Plan or Other IncentiveMeasures for Employees(I) Relevant incentive matters disclosed in current announcement with no subsequent progress orchange
√Applicable ?Not applicable
Overview | Index to the disclosed information |
The Company held the 23rd meeting of the fourth board of directors on November 16, 2021, reviewed and adopted the Proposal on Restricted Stock Incentive Plan of 2021 (Draft) of the Company and Its Summary, Proposal on Examination Management Measures for Implementation of Restricted Stock Incentive Plan of 2021 of the Company, Proposal on Requesting General Meeting to Authorize Board of Directors to Handle Matters Related to Equity Incentive. | See the relevant announcements disclosed on the website of Shanghai Stock Exchange on November 17, 2021 for details. |
The Company held the 24th meeting of the fourth board of directors on December 27, 2021, reviewed and adopted the Proposal on Adjusting the List of First Granted Incentive Objects Under Restricted Stock Incentive Plan of 2021 and Quantity of Equity Granted, Proposal on Granting Restricted Stock to Incentive Objects First Time. | See the relevant announcements disclosed on the website of Shanghai Stock Exchange on December 28, 2021 for details. |
On January 24, 2022, the Company completed first granting registration of restricted stock incentive plan of 2021 with China Securities Depository and Clearing Corporation Limited Shanghai Branch. | See the relevant announcements disclosed on the website of Shanghai Stock Exchange on January 26, 2022 for details. |
(II) Incentives not disclosed in temporary announcement or with subsequent progressEquity incentive situation?Applicable √Not applicableOther description?Applicable √Not applicableEmployee stock ownership plan?Applicable √Not applicableOther incentive measures?Applicable √Not applicable
(III) Equity incentives granted to directors and senior management during the Reporting Period
√Applicable ?Not applicable
In: share
Name | Position | Restricted Shares held at the period-begin | Restricted Shares granted in The Reporting Period | Grant price (RMB) | Unlocked shares | Shares still in lockup | Restricted shares held at the period-end | Closing market price (RMB) |
Zheng Hui | Vice general manager, Chief Financial Officer | 400,000 | 20.23 | |||||
Hu Yupeng | Vice general manager | 200,000 | 20.23 | |||||
Total | / | 600,000 | / | / |
By December 31, 2021, the 2021 restricted shares granted by the Company to Zheng Hui and Hu Yupenghave not yet been registered.(IV) Establishment and formulation of appraisal and incentive mechanisms for senior executives duringthe Reporting Period
√Applicable ?Not applicable
The evaluation and incentive mechanisms of the Company to is based on" Developing with the organizationand Achieving organizational goals", the Company selects suitable performance indexes (including financialindexes, operation indexes, quality indexes, key events and veto item) according to business attributes, sets upshort-term performance target and long-term performance target to the departments or business units for whichthe senior executives are responsible, the Company regularly tracks and implements the achievement of thesetarget, and implements short-term and long-term incentives based on assessment and achievement oforganizational goals.XII. Establishment and Implementation of Internal Control System in the Reporting Period
√Applicable ?Not applicable
In order to strengthen and regulate internal control management, establish and improve effective self-restraint mechanism, improve risk management level, achieve the strategic target and promote sustainabledevelopment, the Company formulated the Internal Control Rules and considered and approved it in the 24thmeeting of the fourth session of the Board held on December 27, 2021, in accordance with the Company Law,Securities Law, Basic Standards for Internal Control of Enterprises and its auxiliary guide, Articles of Associationand other rules,. The Company continually improves internal control system in consideration of the actualoperation situation since it was listed on June15, 2021.
Description of major defects existing in internal control in the reporting period.?Applicable √Not applicableXIII. Management and Control of Subsidiaries during the Reporting Period
√Applicable ?Not applicable
In order to strength the Company’s management and control of the subsidiaries, standardize the internaloperation mechanism and maintain legal rights of the Company and the investors, in accordance with theCompany Law, Securities Law, Stock Listing Rules of Shanghai Stock Exchange, Articles of Association andother relevant rules, the Company formulated Subsidiary Management Rules, which was considered andapproved in the 25th meeting of the fourth session of the Board. In the reporting period, the subsidiaries of theCompany were in normal operation without major violations of laws and regulations.XIV. Information about the Internal Control Audit Report?Applicable √Not applicableWhether internal control audit report is disclosed: no
In accordance with The Notice on Implementation of Enterprise Internal Control Norms System forCompanies Listed on the Main Board by Categories and Batches in Year 2012 issued by China SecuritiesRegulatory Commission, the companies newly listed on the Main Board shall start to establish an internal controlsystem in the year of listing, and disclose an internal control self-appraisal report and audit report at the time ofdisclosure of annual report for the year following the listing. Therefore, the Company did not disclose internalcontrol audit report.XV. Rectification of Issues in Self- inspection of Special Actions for Governance of the Listed CompanyNot applicableXIV. Other?Applicable √Not applicable
Section 5 Environmental and Social ResponsibilityI. Environmental Information(I) Information about environmental protection of the Company and its main subsidiaries as the keypollutant discharging entities published by environmental protection department
√Applicable ?Inapplicable
1. Pollutant discharging information
√Applicable ?Not Applicable
In accordance with the List of Key Pollutant Discharging Entities of Tianjin City in 2021, Tianjin Aima, asubsidiary of the Company, was listed as a key pollutant discharging entity of atmospheric environment, solidwaste and hazardous waste of Tianjin City in 2021. In accordance with the List of Key Pollutant DischargingEntities of GuiGang City in 2021, Guangxi Aima, a subsidiary of the Company, was listed as a key pollutantdischarging entity of atmospheric environment in September 2021.Tianjin Aima and Guangxi Aima have strictly executed relevant requirements of laws, regulations andpollutant discharging permit, they have truthfully disclosed relevant information to the public on the nationwidepollutant discharging permit management information platform, including pollutants, discharging manner,discharging concentration and total discharging volume, construction and operation situation of pollutionprevention and control facilities, and accept supervision of the public.
2. Construction and operation situation of pollution prevention and control facilities
√Applicable ?Not Applicable
Tianjin Aima and Guangxi Aima have constructed various pollutant treatment facilities strictly according toregulations, standards, environmental impact assessment and approval requirements, and these pollutanttreatment facilities are operating well. They have strictly executed national, local discharging standards to ensurethat the pollutant discharging concentration meet the standards, and the solid waste has been properly disposed.Details are as follows:
(1) Tianjin Aima
The major waste gases emitted by Tianjin Aima include spraying dust, organic waste gas and fuel wastegas, and the major factors of these pollutants are dust, methylbenzene, dimethylbenzene, VOCs, smoke dust,SO2, NOx. Painting rooms, leveling rooms and drying rooms of various production lines are airtight, the purifyingmethod of organic waste gases is mainly “zeolite roller + RTO”, and the gases are emitted through exhaust stackafter treatment; Dust from the static powder spraying process is recovered through recovery system, and the tailgas is fully emitted through exhaust tubes. The main waste gas exhaust port of spraying workshop is set withonline monitoring devices, which is networked withTIanjin Ecology and Environment Bureau to real-time monitorof atmospheric pollutants emission meeting standards. The waste gas treatment facilities of Tianjin Aima are ingood operation, methylbenzene, dimethylbenzene, VOCs, PM, smoke dust, SO2, NOx and other pollutants aredischarged up to the standard.
Tianjin Aima has constructed a temporary storage room of hazardous waste, recovery area of general solidwaste and other facilities, the construction of the temporary storage room of hazardous waste met PollutionControl Standards for Hazardous Waste Storage General industrial solid waste has been disposed according togarbage classification, in basis of which the recycling value has been delivered to the qualified professionalinstitutions for recycle ,production and domestic waste has been cleaned and transported regularly by sanitationdepartments, and hazardous waste has been disposed of safely by qualified professional companies. In 2021,Tianjin Aima fully performed the hazardous waste transfer formalities according to laws, and the hazardouswaste was disposed of on the basis of compliance.
(2) Guangxi Aima
The main waste gases emitted from Guangxi Aima are spraying dust, organic waste gas and fuel waste gas,and main pollutant factors are dust, methylbenzene, dimethylbenzene, VOCs, smoke dust, SO2, NOx. Paintingrooms, leveling rooms and drying rooms of various production lines are airtight, the purifying method of organicwaste gas is mainly “pre-treatment with dry filtration + activated carbon adsorption desorption analyticcombustion”, the waste gases are emitted according to relevant standards through exhaust tubes after treatment,meeting the requirements of Pollution Prevention and Control Technology Policy for Volatile Organic Compounds(VOCs); The waste gas treatment facilities of Guangxi Aima are in good operation, and the pollutant factors ofmethylbenzene, dimethylbenzene, VOCs, PM, smoke dust, SO2, NOx and other pollutants are discharged up tothe standard.
Besides the above environmental protection measures, Tianjin Aima and Guangxi Aima have takencorresponding environmental protection measures to drainage and noise, which met the requirements in relevantwith national and local environmental protection.
3. Environmental impact assessment of construction project and other administrative licenses for
environmental protection
√Applicable ?Not applicable
Strictly according to the requirements of laws and regulations, The Company prepares environmental impactassessment documents for the new, reconstruction and expansion projects that need to go throughenvironmental protection procedures, and obtains environmental impact assessment approval documents, andconstructs strictly according to laws, regulations and environmental impact assessment approval documents.
The Company performs the completion and acceptance procedures of environmental protection according tolaws and regulations after the completion of the construction.
4. Emergency plan for environmental accident
√Applicable ?Not applicable
Tianjin Aima and Guangxi Aima filed their contingency plans for environmental emergencies in localenvironmental protection administrations in August 2021 and September 2021 respectively and received thecorresponding filing receipt. They further inspected risk sources and took relevant corrective measures toimproved environmental risk prevention mechanism, and reduce the possibility of environmental risk accidents.Tianjin Aima and Guangxi Aima have organized relevant personnel every year to carry out emergency drills forenvironmental risk accidents in order to improve emergency response capacities.
5. Environmental self-monitoring program
√Applicable ?Not applicable
The main waste gas and wastewater discharging ports of Tianjin Aima are installed with online monitoringsystem for real-time monitoring of main pollutants, and monitoring data is directly uploaded to environmentalprotection data platform, various pollutants are discharged in conformity with relevant standards. The Companykeeps operation and maintenance records on production and waste gas, wastewater treatment facilities in dailyproduction, and solid waste and hazardous waste records. Tianjin Aima entrusts qualified testing institutions toregularly monitor waste water, waste gas and noise strictly in accordance with self-monitoring TechnicalGuidance for Pollutant Discharging Entities and other standards, as well as monitoring frequency requirementof environmental impact evaluation documents and pollutant discharging license. The testing report is uploadedto the pollution source monitoring data management and information sharing platform.
Guangxi Aima entrusts qualified testing institutions to regularly monitor wastewater, waste gas and noisestrictly in accordance with self-monitoring Technical Guidance for Pollutant Discharging Entities and otherstandards, as well as monitoring frequency requirement of environmental impact assessment documents andpollutants-discharging license. Various pollutants are discharged according to relevant standards. The testingreport is uploaded to the management and information sharing platform for pollution source monitoring data.Guangxi Aima keeps operation and maintenance records on production and waste gas, wastewater treatmentfacilities in daily production, and solid waste and hazardous waste transfer records.
6. Administrative penalty due to environmental issues in the reporting period?Applicable √Not applicable
7. Other environmental information that should be disclosed
?Applicable √Not applicable(II) Description of environmental protection situation of companies other than those defined as keypollutant-discharging entities
√Applicable ?Not applicable
1. Administrative penalty due to environmental issues
?Applicable √Not applicable
2. Other environmental information disclosed with reference to major pollutant discharging entities
√Applicable ?Not applicable
The Company attaches importance to environmental protection, each production base has acquiredpollutants- discharging license, has marked flow directions of wastewater and rainwater pipelines to completerain and sewage diversion. Production wastewater, domestic wastewater and rainwater are separately drained;the wastewater treated by the wastewater treatment station is drained through municipal pipelines; theCompany regularly inspects to ensure that the wastewater standards of each base in conformity with relevantrequirements. The general wastewater drainage port at the Production area of Tianjin Production Base isinstalled with online monitoring device, which is connected with Tianjin Ecology and Environment Bureau forreal-time monitoring of pollutant in the external drainage water of the production area, so that its drainage metrelevant discharging standards.
Each production base makes classified disposal of general solid waste, and delivers the general solidwaste that can be recovered, such as packaging materials, to third parties for recovery, and other waste isdelivered to the local sanitation department for treatment.
The Company has established and strictly executed the special management mechanism of hazardoussolid waste, has set special sites, marks and responsible person for collection, storage and transfer ofhazardous solid waste, and promptly makes records. All hazardous solid waste is entrusted to the qualifiedthird-party professional institutions for treatment or recycled by the original manufacturers.
The production bases of the Company make reasonably layout of noise equipment, and takes soundinsulation, sound absorption, vibration reduction and other measures. The noise at the boundary of factorymeets requirements of standard and relevant factories would not generate adverse influence on ambientsound environment.
3. Reasons of not disclosing other environmental information
?Applicable √Not applicable
(III) Relevant information favorable to ecological protection, pollution prevention and control andenvironmental responsibility fulfillment
√Applicable ?Not applicable
The Company invests in building a digitally-intelligent energy consumption data collecting and analyzingsystem to support green production decisions such as process improvement, optimization of production processwith energy consumption data, and improve energy utilization efficiency in production and management. TheCompany and its subsidiaries actively carry out inspection, transformation and replacement of high energyconsumption equipment, select energy saving, water saving products, use recyclable package if possible, andimproved service life of turnover box so as to reduce consumption of resources and energy.(IV) Measures taken during the Reporting Period to reduce carbon emission and their effectiveness
√Applicable ?Not applicable
The Company actively implements energy saving and consumption reduction projects, considers energysaving and emission reduction throughout the enterprise research and development, production and marketingprocesses, actively explores the effective paths of reducing resources and energy consumption, realizes cyclicresource utilization to improve comprehensive utilization efficiency of energy and other resources. The Companyalso establishes the consciousness of energy saving and emission reduction, develops energy conservation andemissions reduction enterprise culture, and encourages employees to start from the intravenous drip, such assaving electricity and water. The specific energy saving projects in 2021 are as follows:
1. Reclaimed water recycling project of Tianjin Aima
Tianjin Aima completed wastewater recycling project in the second half of 2021, and the water quality oftreated wastewater in the wastewater treatment station met level 3 drainage standard and can be used forproduction process without special requirements, and toilet in office building.
2. Energy saving and consumption reduction project of Zhejiang Aima
Zhejiang Aima made energy consumption analysis on water and electricity consumption situation in theproduction area, formulated and executed energy saving and consumption reduction transformation ofproduction area based on data analysis, including investments in replacing energy-saving variable frequencycompressor, lighting equipment, installing water monitoring smart devices and etc.II. Performance of Social Responsibilities
√Applicable ?Not applicable
The Company has actively undertaken social responsibility and supported charity events. In June 2021, inorder to support local epidemic control work, Guangdong Aima donated electric bicycles and tents valued RMB425,000 to Dongguan City, Guangdong Province, where COVID-19 broke out in large numbers. In July 2021,affected by extreme weather, Zhengzhou City in Henan Province suffered catastrophic flood. The Companyestablished a disaster relief guidance team immediately to take a few of disaster relief measures, includingdonated 10 vehicles of goods for disaster relief, organized employees to donate RMB 520,000, and it alsoappointed a special service team to carry out road relief, vehicle inspection and repair free of charge for residentsin the disaster - stricken region.III. Particulars on the Efforts to Consolidate and Expand Its Achievements in Poverty Alleviation andRural Area Invigoration
√Applicable ?Not applicable
The Company has been pursuing the development concept of "love" for many years, actively undertakingsocial responsibilities and practicing public welfare undertakings. In the course of responding to the policy all of“precise poverty alleviation”, the Company took different support measures according to the actual demand ofthe supported targets.
As an important enterprise participating in the point-to-point assistance of Tianjin Municipal Government toin the poverty-stricken areas in West China, the Company actively helped the villages in West China to realizevitalization. In June 2021, the Company donated Aima electric tricycles valued RMB 1.20 million to ZhengyuanCounty, Gansu Province in order to support local rural construction. In July 2021, the Company donated Aimaelectric bicycles valued RMB 1.50 million to its targeted support region Huangnan Tibetan AutonomousPrefecture, Qinghai Province, and this effectively solved the local travel problem of local officials and employees.
In September 2021, Guangxi Aima donated educational materials to Zhengcun Primary School in DongjinTown, Guigang City, Guangxi province to support local rural education. Guangxi Aima built a cement road 100m(L) x 3.5m (W) x 0.16m (D) in Zhongli Village, Zhongli Township, Guigang City, Guangxi province to promotelocal economic development. In addition, Henan Aima actively cooperated with local Labor Bureau of ShangqiuCity to provide jobs for local women and support local development.
Section 6 Significant EventsI. Fulfillment of Commitments(I)Commitments of the Company’s actual controller, shareholders, related parties, acquirer, as well asthe Company and other relevant entities during or up to the reporting period"√ Applicable" "□ Not applicable"
Commitment background | Commitment Category | Promisor | Commitment Description | Commitment Duration | Whether there is a deadline | Whether it is timely | If it is not timely | If it is not timely |
for implementation | and strictly performed | performed, the specific reasons should be stated | performed, the plan for the further step should be stated | |||||
Commitments related to IPO | Restricted shares | Controlling shareholder and actual controller | Note 1 | June 15, 2021 to June 14, 2024 | Yes | Yes | Not applicable | Not applicable |
Restricted shares | Changxing Dingai and its partner | Note 2 | June 15, 2021 to June 14, 2024 | Yes | Yes | Not applicable | Not applicable | |
Restricted shares | CITIC Investment, Jinshi Zhiyu, Jinshi Haofeng, Three Gorges Jinshi, Liu Jianxin, Peng Wei, Han Jianhua, Li Shishuang and Qiao Baogang | Note 3 | June 15, 2021 to June 14, 2022 | Yes | Yes | Not applicable | Not applicable | |
Others | Controlling shareholder, actual controller, Changxing Dingai and its partner, Liu Jianxin and Peng Wei | Note 4 | Long term | No | Yes | Not applicable | Not applicable | |
Others | The Company, the controlling shareholder, actual controller, directors (independent directors are excluded) and senior executives | Note 5 | June 15, 2021 to June 14, 2024 | Yes | Yes | Not applicable | Not applicable | |
Solution to horizontal competition | Controlling shareholder and actual controller | Note 6 | Long term | No | Yes | Not applicable | Not applicable | |
Solution to related transactions | Controlling shareholder and actual controller | Note 7 | Long term | No | Yes | Not applicable | Not applicable |
Note 1: Commitment of the controlling shareholder and actual controller for locking up their sharesZhang Jian, the Company's controlling shareholder and the actual controller and Zhang Gege, theCompany’s actual controller have made the following commitment and confirmed that:
(1) Within 36 months from the date of lPO, I shall not transfer or entrust others to manage the shares directlyor indirectly held by me that have been issued before the Company's public offering, nor shall the Companyrepurchase the shares directly or indirectly held by me that have been issued before the Company's publicoffering.
(2) Within 6 months after the listing of the Company's stock, the closing price of the Company's stock iscontinuously lower than the issuing price for successively 20 trading days, or the closing price is lower than theissuing price at the end of the 6 months after listing, the locking duration of the shares held by me in the Companyshall prolong automatically 6 months.
Note 2: Commitment of Changxing Dingai and its partner for locking up their shares
Within 36 months from the date of IPO, I shall not transfer or entrust others to manage the shares directlyor indirectly held by me that have been issued before the Company's public offering, nor shall the Companyrepurchase the shares directly or indirectly held by me that have been issued before the Company's publicoffering.
Note 3: Commitment of CITIC Investment, Jinshi Zhiyu, Jinshi Haofeng, Three Gorges Jinshi, LiuJianxin, Peng Wei, Han Jianhua, Li Shishuang and Qiao Baogang for locking up their shares
Within 12 months from the date of listing of the Company's shares, I shall neither transfer nor entrust othersto manage the shares directly or indirectly held by me that have been issued before the Company's public offering,nor shall the Company repurchase such shares directly or indirectly held by me that have been issued beforethe Company's public offering.
Note 4:Commitment of the partner of Changxing Dingai, Liu Jianxin, and Peng Wei as the controllingshareholder, actual controller, directors/senior executives for the intentions about shareholding orreduction of shares
(1) During my tenure as a director or senior executive of the Company, the annual transfer of the shares ofthe Company directly or indirectly held by me shall not exceed 25% of the total shares of the Company directlyor indirectly held by me; within six months after my leave from the office, none of the shares of the Companydirectly or indirectly held by me shall be transferred.
(2) I commit that if the shareholding is lessened within two years after the expiration of the lock-up period,the price of the shares reduced shall not be lower than the issue price. In the event of dividends, bonus shares,
capitalization of provident fund, share allotment, etc., the price shall be adjusted accordingly based on the ex-right and ex-dividend conditions.
(3) The above commitments shall not be exempted from the implementation due to job change, leave fromoffice, etc. If I cause any loss to the Company or other investors due to my failure to perform the abovecommitments, I shall be liable for compensation to the Company or other investors in accordance with the law.
Note 5: Commitment for the stabilization of the share price and share repurchase
(1) The Company's Commitment
① Within three years from the date of IPO, if the closing price of the stock is lower than the Company'slatest audited net assets per share for 20 consecutive trading days (if ex-right and ex-right is conducted due tothe distribution of the cash bonus, bonus shares, capitalization of reserve or additional issuing of new shares,the closing price shall be adjusted accordingly, the same below), and the repurchase measures do not resultin the Company's equity distribution not meeting the listing criteria, the Company will initiate the measures forstabilizing the stock price through repurchasing of the shares in accordance with the relevant laws, rules andregulations.
②The Board of Directors should hold a Board meeting to review the proposal for repurchase of theCompany's shares within 5 trading days commencing from the day of starting the measures for stabilizing thestock price as stated above and submit the same to the general meeting for examination. The Company shouldstart the repurchase commencing from the date when the general meeting has reviewed and approved such aproposal.
③The price of the Company’s shares repurchased shall not be higher than the net assets per share in thelatest audited financial statements. The repurchase of the shares is conducted in a way of centralized bidding,tender offer or other ways as recognized by the securities regulatory authority. Under the premise that theCompany's equity distribution may not be caused to fail to meet the listing conditions, the amount of the fundsused by the Company for repurchase at a time is not less than RMB 10 million in principle, the total repurchasefunds used to stabilize the stock price in a single fiscal year shall not exceed 50% of the net profit attributable tothe shareholders of the parent Company in the latest audited financial statements, and the total amount of fundsused by the Company to repurchase shares shall not exceed the total amount of funds raised by the Company'sinitial public offering of shares.
④From the time when the Company initiates the stock price stabilization plan to that before the formalimplementation of the stock price stabilization measures, or during the implementing the measures for stabilizingthe stock price, if any of the conditions as stated in the “conditions for terminating the implementation of themeasures for stabilizing the stock price” in the “AIMA Technology Group Co., Ltd.'s IPO of RMB Common Shares(A Shares) and The Stabilization of The Stock Price within Three Years After Listing of the Company’s Stock" istriggered, the implementation of the above-mentioned price stabilization plan will be terminated.
⑤Within three years from the date of the listing of the Company's stock, if the Company has newly appointeddirectors (independent directors are exclusive) and senior executives, the Company will require these newlyappointed directors and senior executives to fulfill the corresponding commitments made by the directors andsenior executives appointed at the time of the listing.
(2) Controlling shareholder and actual controller
① Within three years from the date of IPO, if the closing price of the stock is lower than the Company'slatest audited net assets per share for 20 consecutive trading days (if ex-right and ex-right is conducted due tothe distribution of the cash bonus, bonus shares, capitalization of reserve or additional issuing of new shares,the closing price shall be adjusted accordingly, the same below), and the repurchase measures do not resultin the Company's equity distribution not meeting the listing criteria, I will initiate the measures for stabilizing thestock price through repurchasing of the shares in accordance with the relevant laws, rules and regulations.
②If the closing price of the stock is lower than the Company's latest audited net assets per share for 10consecutive trading days from the day after the Company has finished implementation of the measures forstabilizing the stock price (subject to the date of the announcement that implementation is finished), or within 3months from the day after the Company has finished implementation of the measures for stabilizing the stockprice (subject to the date of the announcement that implementation is finished), the closing price of theCompany’s stock is once again lower than the Company's latest audited net assets per share for 20 consecutivetrading days, I will initiate the measures for stabilizing the stock price.
③Within 5 trading days from the day when the above-mentioned conditions for initiating the measures tostabilize the stock price are satisfied, I will propose a plan to increase my shareholding of the Company’s shares(including the number of shares to be increased, the price range, the completion period, etc.) and notify theCompany. After receiving my shareholding plan, the Company should announce the increasing plan inaccordance with the relevant regulations; and I will start to increase the shareholding on the trading day after theday of announcement for the increasing plan.
④ The price of my increased shares is not higher than the Company’s audited net assets per share at theend of the previous fiscal year. Under the premise that the Company's equity distribution may not be caused tofail to meet the listing conditions, and the cumulative number of the increased shares shall not exceed 1% of theCompany’s total shares within every 12 months from the day when the condition for taking the measures tostabilize the stock price is triggered, the funds I use to increase my shareholdings are not less than 30% of the
total amount of the cash dividends, remuneration or allowance(after-tax) that I receive directly or indirectly fromthe Company in the previous year within every 12 months from the day when the condition for taking themeasures for stabilizing stock price is triggered.
⑤From the time when the Company initiates the stock price stabilization plan to that before the formalimplementation of the stock price stabilization measures, or during the implementing the measures for stabilizingthe stock price, if any of the conditions as stated in the “conditions for terminating the implementation of themeasures for stabilizing the stock price” in the “AIMA Technology Group Co., Ltd.'s IPO of RMB Common Shares(A Shares) and The Stabilization of The Stock Price within Three Years After Listing of the Company’s Stock" istriggered, the implementation of the above-mentioned price stabilization plan will be terminated.
⑥I guarantee that when the Company implements the plan for stabilizing stock price, I shall vote in favor ofthe resolution to repurchase shares.
(3) Commitments of the directors (independent directors are exclusive) and senior executives
① Within three years from the date of IPO, if the closing price of the stock is lower than the Company'slatest audited net assets per share for 20 consecutive trading days (if ex-right and ex-right is conducted due tothe distribution of the cash bonus, bonus shares, capitalization of reserve or additional issuing of new shares,the closing price shall be adjusted accordingly, the same below), and the repurchase measures do not resultin the Company's equity distribution not meeting the listing criteria, I will initiate the measures for stabilizing thestock price through repurchasing of the shares in accordance with the relevant laws, rules and regulations..
②If the closing price of the stock is lower than the Company's latest audited net assets per share for 10consecutive trading days from the day after the Company has finished implementation of the measures forstabilizing the stock price (subject to the date of the announcement that implementation is finished), or within 3months from the day after the Company has finished implementation of the measures for stabilizing the stockprice (subject to the date of the announcement that implementation is finished), the closing price of theCompany’s stock is once again lower than the Company's latest audited net assets per share for 20 consecutivetrading days, I will initiate the measures for stabilizing the stock price.
③Within 5 trading days from the day when the above-mentioned conditions for initiating the measures tostabilize the stock price are satisfied, I will propose a plan to increase my shareholding of the Company’s shares(including the number of shares to be increased, the price range, the completion period, etc.) and notify theCompany. After receiving my shareholding plan, the Company should announce the increasing plan inaccordance with the relevant regulations; and I will start to increase the shareholding on the trading day after theday of announcement for the increasing plan.
④ The price of my increased shares is not higher than the Company’s audited net assets per share at theend of the previous fiscal year. Under the premise that the Company's equity distribution may not be caused tofail to meet the listing conditions, and the cumulative number of the increased shares shall not exceed 1% of theCompany’s total shares within every 12 months from the day when the condition for taking the measures tostabilize the stock price is triggered, the funds I use to increase my shareholdings are not less than 30% of thetotal amount of the cash dividends, remuneration or allowance(after-tax) that I receive directly or indirectly fromthe Company in the previous year within every 12 months from the day when the condition for taking themeasures for stabilizing stock price is triggered.
⑤ From the time when the Company initiates the stock price stabilization plan to that before the formalimplementation of the stock price stabilization measures, or during the implementing the measures for stabilizingthe stock price, if any of the conditions as stated in the “conditions for terminating the implementation of themeasures for stabilizing the stock price” in the “AIMA Technology Group Co., Ltd.'s IPO of RMB Common Shares(A Shares) and The Stabilization of The Stock Price within Three Years After Listing of the Company’s Stock" istriggered; the implementation of the above-mentioned price stabilization plan will be terminated.
⑥I guarantee that when the Company implements the plan for stabilizing stock price, I shall vote in favor ofthe resolution to repurchase shares.
Note 6: Commitment to resolve or avoid the Horizontal Competition
The Company's controlling shareholder and actual controller have issued a letter of commitment to resolveor avoid the horizontal competition with the commitment as follows:
(1) For the purpose of avoiding horizontal competition between the enterprise I control or imposingsignificant impact on and the Company after listing, I hereby commit that while I act as a shareholder and actualcontroller of Aima Technology Group Co., Ltd., the enterprise I may control or exert significant influence on shallnot be directly or indirectly involved in any business or activities which may form competition with AimaTechnology by any means both in and out of the territory of China (including but not limited to independentoperation, operation through joint venture or owning of the shares and other equity in another company orenterprise), I shall not hold any post to perform any practical management duties in any economic organizationthat competes with the Company.
If Aima Technology further expands its business scope, I promise and will urge the enterprise that I controlor exert significant influence on to commit not to compete with the expanded business of Aima Technology; if Iand the enterprise that I control or exert significant influence on have any business opportunity to do or participatein any activity which may compete with Aima Technology currently or in future, I will take and urge the enterprisethat I control or exert significant influence on to take all possible and reasonable measures to transfer suchopportunity to Aima Technology; if Aima Technology does not accept the transfer of such opportunity, theenterprise that I control or exert significant influence on will take any possible measures before the
implementation of such opportunity to any unaffiliated third party or voluntarily withdraw from such businessopportunity, or take any other measures favorable to protect Aima Technology’s interest and to avoid horizontalcompetition with Aima Technology.
For enterprises that I control or exert significant influence on, I will urge these enterprises to perform theirobligations in this letter of commitment by dispatching agencies and personnel (including but not limited todirectors and managers) and obtaining controlling positions, and commit not to be involved in horizontalcompetition with Aima Technology.
(2)I commit not to take advantage of my status as the controlling shareholder and actual controller of AimaTechnology to damage the legitimate rights and interests of Aima Technology and other minority shareholders,nor to use my special status to seek abnormal additional interests.
(3) I confirm that each of the commitments contained in this letter of commitment is independentlyenforceable. If any of the above commitments is violated, Aima Technology has the right to require me and theenterprises I control or exert significant influence on to immediately stop horizontal competition, and has the rightto require me or the enterprises I control or exert significant influence on to bear the direct or indirect economiclosses, claim liability and related expenses caused to Aima Technology.
(4) I guarantee that the above commitments shall continue to be valid and irrevocable as long as AimaTechnology remains listed on the domestic stock exchange and I act as its controlling shareholder and actualcontroller. If change takes place in the relevant laws, rules or regulations, I shall update or supplement therelevant commitments in a timely manner in accordance with the regulations.
Note 7: Measures taken by the Company to reduce related transactions
In order to further regulate and reduce related-party transactions, the controlling shareholder and actualcontroller of the Company issued the letter of commitment on regulating and reducing related transactions withdetails as follows:
(1) My close relatives and I, other economic organizations controlled by myself or my close relatives, will tryto avoid or reduce related transactions with Aima Technology (including its subsidiaries within the scope ofconsolidated financial statements, the same below). Transactions between the independent third parties andAima Technology that occur through the market will be carried out by the independent third parties and AimaTechnology. My close relatives and I, other economic organizations controlled by myself or my close relatives,will strictly avoid borrowing from Aima Technology, appropriating Aima Technology funds or taking the form ofadvances and payments to occupy Aima Technology funds, etc.
(2)Any necessary transaction between my close relatives and myself, other economic organizationscontrolled by myself or my close relatives and Aima Technology will strictly comply with the market principle andin accordance with the general principles of equality and mutual benefit, and the transaction should be fair andreasonable. If there is government price in pricing for the transaction, the government price shall be applicable;if there is no government price, the market fair price shall be applicable; if there is neither government price normarket price for reference, the cost price shall be determined according to the cost plus a comparable andreasonable profit level.
(3) Any related transactions between my close relatives and myself, other economic organizations controlledby myself or my close relatives and Aima Technology will be clearly stipulated in the form of signing a writtencontract or agreement. And these transactions must comply with the necessary statutory procedures, whichstipulated in the Aima Technology’s Articles of Association and the Regulations Concerning Management ofRelated Transactions. When the authority of Aima Technology reviews the concerned related transaction, I willinitiatively implement the obligation of avoidance in accordance with the law. The related transactions that needto be reported to the authority should be implemented only after the authority has deliberated and approvedthem.
(4) I promise not to obtain any improper benefit through related transactions or making Aima Technologyundertake any improper obligations. If the violation of the above commitments causes Aima Technology to loseor using the related transactions to encroach on the interests of Aima Technology. Aima Technology has theright to unilaterally terminate such related transactions, and I shall bear the loss of Aima Technology.
(5) For any unavoidable related transaction, I shall urge Aima Technology to strictly implement the relatedtransaction decision-making procedures, the voting avoidance system and the information disclosure systemformulated by the Company's articles of association, so as to ensure the fairness, impartiality and impartiality ofrelated party transactions, and to avoid related transactions that harm the interest of Aima Technology and itsshareholders.
(6)The above commitments will retain valid during the period when I constitute a related party of AimaTechnology.(II)If there is earnings forecast for the assets or projects of the Company and the reporting period is stillin the earnings forecast period, the Company should explain whether the asset or project reaches theoriginal earnings forecast and give the reasons"□ Already reached " "□ Not reached " "√ Not applicable"(III) Fulfillment of commitments on the performance and its impacts on goodwill impairment test"□ Applicable" "√ Not applicable"II. Non-operational Occupancy of the Company’s Capital by the Controlling Shareholder and its RelatedParties during the Reporting Period"□ Applicable" "√ Not applicable"
III. Information on Non-compliance Guarantees"□ Applicable" "√ Not applicable"IV. Explanation of the Board of Directors in Company on the “Non-standard audit report” Issued by theAccounting Firm"□ Applicable" "√ Not applicable"V. Analysis and Explanation on the Causes and Influences of the Changes in the Company’s AccountingPolicies, Accounting Estimates or Correction of Major Accounting Errors(I) Analysis and explanation of the Company on the causes and influences of the changes in theaccounting policies and accounting estimates"√ Applicable" "□ Not applicable"The Ministry of Finance promulgated the Circular on Revision, Printing and Issuing of the "AccountingStandards for Enterprises No. 21-Revenues” (CAI KUAI [2018] No. 35) in December, 2018, according to which,a company which is listed both at home and abroad or listed overseas and prepares its financial statementsaccording to the International Financial Reports Standards or the Accounting Standards for Enterprises startedimplementing the said accounting standards commencing from January 1, 2019; other domestically listedenterprises started the implementation commencing from January 1, 2021. Due to the revision of the aboveaccounting standards, the Company started implementing the new lease standards commencing from January1, 2021, and made changes to the relevant accounting policies previously adopted.The Company made changes in its accounting policy according to the relevant rules and regulationspromulgated by the Ministry of Finance. After the change, the accounting policy may objectively and fairly reflectthe Company's financial status and operating results, in line with relevant laws and regulations and theCompany's actual situation. The change in the accounting policy would neither lead to significant impact on theCompany's financial position, operating results or cash flow, nor would it harm the interests of the Company andits shareholders.(II)Explanation of the Company’s analysis on reasons and effects of the correction of significantaccounting errors"□ Applicable" "√ Not applicable"(III) Communication with former accounting firm"□ Applicable" "√ Not applicable"(IV) Other notes"□ Applicable" "√ Not applicable"VI. Engagement/Disengagement of the CPAs
In: RMB’0000 Currency: RMB
Currently engaged | |
Name of the domestic CPAs | Ernst & Young (Special General Partnership) |
Remuneration to the domestic CPAs | 235 |
Years of the domestic CPAs offering auditing services | 9 |
Note to Engagement/Disengagement of the CPAs"√ Applicable" "□ Not applicable"
On May 17, 2021, the Company's 2020 Annual General Meeting reviewed and approved the Proposal onthe Renewal of the Employment of the CPAs for 2021, and agreed to appoint Ernst & Young Hua Ming LLP asthe Company's auditor for 2021.Note to the replacement of the CPAs during the auditing"□ Applicable" "√ Not applicable"VII. Delisting Risk(I) Reasons for the delisting risks warning"□ Applicable" "√ Not applicable"(II) Solution to be adopted by the Company"□ Applicable" "√ Not applicable"(III) Termination of the listing and its reasons"□ Applicable" "√ Not applicable"VIII. Events Related to Bankruptcy and Reorganization"□ Applicable" "√ Not applicable"IX. Major Lawsuit and Arbitration Issues"□ Significant lawsuits and arbitrations in the reporting period""√ No significant lawsuit or arbitration in the reporting period"
X. Punishment and Correction on the Listed Company as well as its Directors, Supervisors, SeniorManagement, Controlling Shareholders and Actual Controller due to Suspect of Law Violations"□ Applicable" "√ Not applicable"XI. Integrity Status of the Company, its Controlling Shareholder and Actual Controller during theReporting Period"√ Applicable" "□ Not applicable"During the reporting period, the Company, its controlling shareholder and actual controller were all enjoyinggood reputation in integrity, and there was no failure to perform any effective judgment of the court, or largeamount of outstanding due debts remaining unpaid.XII. Significant Related Transactions(I) Related Transactions Related with Day-to-Day Operations
1. Matters already disclosed in the interim announcement but with no progress or change in subsequentimplementation"□ Applicable" "√ Not applicable"
2. Matters already disclosed in the interim announcement but with no progress or change in subsequentimplementation"□ Applicable" "√ Not applicable"
3. Matters not disclosed in the interim announcement
"√ Applicable" "□ Not applicable"
In: RMB’0000 Currency: RMB
Party of related transaction | Incidence relation | Type of related transaction | Description of the related transactions | Pricing principle of related transactions | Amount of the related transactions | Proportion of the amount in the similar transactions (%) | Way of settlement of related transactions |
Tianjin Jiema Electric Technology Co., Ltd. | Associate | Purchase of goods | Purchase of accessories and semi-finished products, etc. | Market price | 1,109.57 | 0.08 | Bank transfer |
Tianjin Jiema Electric Technology Co., Ltd. | Associate | Supply of labor services | Mould machining services | Market price | 22.34 | 0.83 | Bank transfer |
Tianjin Jiema Electric Technology Co., Ltd. | Associate | Rent and lease | Property lease | Market price | 633.35 | 16.31 | Bank transfer |
Duan Hua | Other related parties | Rent and lease | Property lease | Market price | 476.19 | 27.67 | Bank transfer |
Tianjin Jiema Electric Technology Co., Ltd. | Associate | Rent and lease | Equipment hiring | Market price | 2.65 | 0.07 | Bank transfer |
Total | / | 2,244.10 | / | / | |||
Particulars about the big sales return | Not applicable | ||||||
Note to related transactions | The 28th Session of the Third Board of Directors held on July 8, 2019 reviewed and approved the Proposal on the Company to Rent Office Space and Related Transaction and the Proposal on the Company to Lease Property to Tianjin Jijema Electric Technology Co., Ltd. and Related Transaction. The aforesaid related transaction between Duan Hua and Tianjin Jiema was reviewed and approved by the Board of Directors. 2020 Annual General Meeting held on May 17, 2021 reviewed and approved the Proposal on the Predicted Routine Related Transactions of Year 2021. The related transactions, including purchase of commodities, supply of labor services, sales of products and lease of equipment, were reviewed and approved by the General Meeting. |
(II) Related transactions concerning acquisition and sales of assets or equity
1. Matters already disclosed in the interim announcement but with no progress or change in subsequentimplementation"□ Applicable" "√ Not applicable"
2. Matters already disclosed in the interim announcement but with no progress or change in subsequentimplementation"□ Applicable" "√ Not applicable"
3. Matters not disclosed in the interim announcement
"□ Applicable" "√ Not applicable"
4. If a performance agreement is involved, the achievement of performance during the reporting periodshould be disclosed"□ Applicable" "√ Not applicable"(III) Significant related transactions concerning joint investment in foreign countries
1. Matters already disclosed in the interim announcement but with no progress or change in subsequentimplementation"□ Applicable" "√ Not applicable"
2. Matters already disclosed in the interim announcement but with no progress or change in subsequentimplementation"□ Applicable" "√ Not applicable"
3. Matters not disclosed in the interim announcement
"□ Applicable" "√ Not applicable"(IV) Current Associated Rights of Credit and Liabilities
1. Matters already disclosed in the interim announcement but with no progress or change in subsequentimplementation"□ Applicable" "√ Not applicable"
2. Matters already disclosed in the interim announcement but with no progress or change in subsequentimplementation"□ Applicable" "√ Not applicable"
3. Matters not disclosed in the interim announcement
"□ Applicable" "√ Not applicable"(V) Financial business between the Company and the financial company with an associated relationship,the Company's holding financial company and the related party"□ Applicable" "√ Not applicable"(VI) Others"□ Applicable" "√ Not applicable"XIII. Important Contracts and Implementation(I) Custody, Contacting and Leases
1. Custody
"□ Applicable" "√ Not applicable"
2. Contracting
"□ Applicable" "√ Not applicable"
3. Leases
"□ Applicable" "√ Not applicable"(II) Guarantees?applicable□ Not applicable
In: Yuan Currency: RMB
Outward guarantees by the Company (excluding guarantee to the subsidiaries) | ||||||||||||||
Guarantors | Relationship between the guarantor and the Company | Guarantees | Amount guaranteed | Guarantee occurrence date (date of signing the agreement) | Guarantee Starting date | Guarantee Due date | Type of guarantee | Collateral (if any) | Is the guarantee finished | Has the guarantee been overdue | Overdue amount | About counter guarantee | Guarantee to related party? | Associated Relationship |
Total amount of guarantees incurred during the reporting period (excluding guarantees to subsidiaries) | ||||||||||||||
Total amount of guarantees incurred at the end of the reporting period (A) (excluding guarantees to subsidiaries) | ||||||||||||||
Guarantee to the subsidiaries provided by the Company and its subsidiaries | ||||||||||||||
Total amount of guarantee to the subsidiaries incurred in the reporting period | 4,722,795,186.44 | |||||||||||||
Total balance of guarantees to the subsidiaries at the end of the reporting period (B) | 2,800,769,582.04 | |||||||||||||
About total amount of guarantees provided by the Company (including guarantees to subsidiaries) | ||||||||||||||
Total amount of guarantees (A+B) | 2,800,769,582.04 | |||||||||||||
Proportion of the total amount of guarantees in the Company’s net assets (%) | 56.30 | |||||||||||||
Including: |
Amount of guarantees offered to the shareholders, actual controller and its related parties (C) | |
Amount of guarantee for liabilities directly or indirectly offered to the guarantees with the asset-liability ratio exceeding 70% (D) | 1,770,627,153.15 |
Guarantee with total amount exceeding 50% of the net assets (E) | 313,355,886.58 |
Total amount of the aforesaid three guarantees (C+D+E) | 2,083,983,039.73 |
Note to the immature guarantees which may bear joint liability for repayment | Not applicable |
Note to the guarantees | The 2020 Annual General Meeting held on May 17, 2021 reviewed and approved the "Proposal on the Company's Guarantee Plan for Year 2021", and the above-mentioned guarantees have been reviewed and approved by the Company's General Meeting. |
(III) Entrusting a Third Party to Manage the Cash Assets
1. Finance Management on Commission
(1) General of consigned financing
"√ Applicable" "□ Not applicable"
In: RMB’0000 Currency: RMB
Type | Capital source | Amount incurred | Immature balance | Overdue amount unrecovered |
Bank financial product | Self-raised capital | 240,220.00 | 116,741.00 | |
Bank financial product | Raised proceeds | 126,230.77 | 56,837.59 |
Note: The amount of consigned financing in the above table is the highest single-day balance of this type ofwealth management product.Other Information"√ Applicable" "□ Not applicable"
1. About cash management of the idle self-raised funds
The Company’s 2020 Annual General Meeting of Shareholders held on May 17, 2021, reviewed andapproved the "Proposal on Using Idle Self-raised Capital for Cash Management", and agreed that the Companyand its controlled subsidiaries (including subsidiaries of the controlled subsidiaries) intend to use no more thanRMB 5 billion of idle funds to purchase low-risk cash management products with high security and good liquidity,from the date of approval at the 2020 Annual General Meeting to the date of the 2021 Annual General Meeting.
2. About cash management of the idle raised capital
The 17th session of the Fourth Board of Directors and the 7th session of the Fourth Board of Supervisorsheld on June 23, 2021 respectively reviewed and approved the Proposal on Use of the Temporarily Idle RaisedCapital for Cash Management, and approved the Company to use no higher than RMB 1.3 billion idle raisedcapital for cash management to purchase investment products with high security and good liquidity. The Proposalcame into force within 3 months commencing from the date when the Proposal was reviewed and approved bythe Board of Directors and the Board of Supervisors. Within the aforesaid limit, the capital may be applied in arolling way.
The 20th session of the Fourth Board of Directors and the 9th session of the Fourth Board of Supervisorsheld on August 26, 2021 respectively reviewed and approved the Proposal on the Adjustment of the ApplicationLimit of the Temporarily Idle Raised Capital for Cash Management and Prolonging the Investment Deadline,approved that commencing from August 26, 2021, the Company and its subsidiaries would adjust the amount oftemporarily idle raised funds of no more than RMB 1.3 billion for cash management to no more than RMB 650million. At the same time, the investment period would be extended to June 22, 2022, and the above limit of theraised capital may be used in a rolling way within effective period.
3. In the reporting period, the Company conducted the cash management with the idle raised capital strictlybased on the limit as approved by the Board of Directors and the General Meeting. The aforesaid wealthmanagement products are the wealth management products or structured deposits with high security, goodliquidity, low risk and open-end.
(2) About single consigned financing
"√ Applicable" "□ Not applicable"
In:RMB’0000 Currency: RMB
Consignee | Type of consigned financing | Amount of consigned financing | Date of commencement of consigned financing | Date of end of consigned financing | Fund Source | Annual Yield | Actual Income or loss | Actual recovery | Has it gone through statutory procedure |
ICBC | Structured deposit | 20,000 | July 16, 2021 | December 30, 2021 | Self-raised capital | 3.72% | 340.45 | Recovered | Yes |
ICBC | Structured deposit | 40,000 | November 24, 2021 | August 24, 2022 | Self-raised capital | 3.75% | Yes | ||
ICBC | Structured deposit | 20,000 | April 16, 2021 | October 18, 2021 | Self-raised capital | 3.75% | 380.14 | Recovered | Yes |
ICBC | Structured deposit | 20,000 | May 12, 2021 | November 16, 2021 | Self-raised capital | 3.78% | 389.39 | Recovered | Yes |
Bohai Bank | Structured deposit | 30,000 | August 13, 2021 | February 14, 2022 | Self-raised capital | 3.55% | Yes | ||
Industrial Bank | Structured deposit | 39,000 | August 17, 2021 | February 18, 2022 | Self-raised capital | 3.03% | Yes |
Note: The above table shows the wealth management products of the Company's single significant amountof structured deposits during the reporting period, and other open-end wealth management products are Notapplicable.Other Information"□ Applicable" "√ Not applicable"
(3) Provision for impairment of consigned financing
"□ Applicable" "√ Not applicable"
2. About consigned loans
(1) General of consigned loans
"□ Applicable" "√ Not applicable"Other Information"□ Applicable" "√ Not applicable"
(2) About single consigned loan
"□ Applicable" "√ Not applicable"Other Information"□ Applicable" "√ Not applicable"
(3) Provision for impairment of consigned loans
"□ Applicable" "√ Not applicable"
3. Other Information
"□ Applicable" "√ Not applicable"(IV) Other Important Contracts"□ Applicable" "√ Not applicable"XIV. Note to Other Major Events that have Significant Impact on Investors' Value Judgments andInvestment Decisions"√ Applicable" "□ Not applicable"
During the reporting period, Tianjin Aima, Guangdong Aima, and Guangxi Aima acquired the qualificationsof high-tech enterprises, and may enjoy income tax preference policy for high-tech enterprises for threeconsecutive years (i.e. 2021, 2022 and 2023); that means they pay corporate income tax at a rate of 15%. As ofthe disclosure date of the Report, only Tianjin Aima received the certificate of hi-tech enterprise but the othertwo did not.
Section 7 Changes in Common Shares and Information about Shareholders
I. Changes in Shares Capital(I) Table of Changes in shares
1. Table of Changes in shares
In: share
Before the change | Increase or decrease of the change (+, -) | After the change | |||||||
Quantity | Percentage (%) | New shares issued | Bonus shares | Shares converted from | Others | Subtotal | Quantity | Percentage (%) |
capital reserves | |||||||||
I. Restricted shares | 338,660,003 | 100 | 338,660,003 | 83.90 | |||||
1.Shares held by the state | |||||||||
2. Shares held by the state-owned legal entities | |||||||||
3.Other domestic shares | 338,660,003 | 100 | 338,660,003 | 83.90 | |||||
Including: shares held by Domestic non-state-owned legal entities | 40,593,003 | 11.99 | 40,593,003 | 10.06 | |||||
Shares held by domestic individuals | 298,067,000 | 88.01 | 298,067,000 | 73.84 | |||||
4. Oversea shares | |||||||||
Including: shares held by foreign legal entities | |||||||||
Shares held by foreign individuals | |||||||||
II. Tradable shares without selling restrictions | 65,000,000 | 65,000,000 | 65,000,000 | 16.10 | |||||
1. RMB common shares | 65,000,000 | 65,000,000 | 65,000,000 | 16.10 | |||||
2. Domestic listed foreign shares | |||||||||
3. Overseas listed foreign shares | |||||||||
4. Others | |||||||||
III. Total shares | 338,660,003 | 100.00 | 65,000,000 | 65,000,000 | 403,660,003 | 100.00 |
2. Statement on the change in shares
"√ Applicable" "□ Not applicable"With the approval of the China Securities Regulatory Commission by the “Official Reply on Approving theInitial Public Offering of Aima Technology Group Co., Ltd.” (Zheng Jian Xu Ke [2021] No. 1775), the Companypublicly issued 65,000,000 RMB common shares (A-shares) through the Shanghai Stock Exchange on June 15,2021.
3. Effect of changes in shares on financial indicators such as earnings per share and net asset per sharefor the latest year and period (if any) over the last year and the last reporting period"√ Applicable" "□ Not applicable"During the reporting period, the Company publicly issued 65,000,000 RMB common shares (A shares), andthe Company's total share capital changed from 338,660,003 shares to 403,660,003 shares. The above-mentioned change in shares has resulted in the dilution of the Company's basic earnings per share and netassets per share in 2021 and other financial indicators.
4. Other contents that the Company deems necessary and the securities regulatory authorities requiredisclosing"√ Applicable" "□ Not applicable"The Company’s 2021 third Extraordinary General Meeting held on December 27, 2021 reviewed andapproved the "Proposal on the Company's “2021 Restricted Stock Incentive Plan (Draft)” and its Summary", etc.,and the 24th session of the Fourth Board of Directors reviewed and approved the "Proposal on GrantingRestricted Shares to Incentive Objects for the First Time", etc., and determined to grant restricted stocks toincentive objects.On January 24, 2022, the Company completed the registration of the first grant of the 2021 Restricted StocksIncentive Plan with the Shanghai Branch of China Securities Depository and Clearing Corporation Limited; andthe Company's total capital stock increased to 410,440,003 shares from 403,660,003 shares.(II) Changes in restricted shares"□ Applicable" "√ Not applicable"II. Securities Issuance and Listing(I) Issuance of securities during the reporting period"√ Applicable" "□ Not applicable"
In: share Currency: RMB
Stock and its derivatives Types of securities | Date of issuance | Issuing price (or interest rate) | Shares issued | Date of listing | Quantity approved for being listed and traded | Expiry date of trading |
Type of common stock | ||||||
A-shares | June 3, 2021 | 27.86 | 65,000,000 | June 15, 2021 | 65,000,000 |
Note to issuance of securities during the reporting period (for the bonds with different interest rates duringthe period, please explain separately):
"√ Applicable" "□ Not applicable"
With the approval of the China Securities Regulatory Commission by the “Official Reply on Approving theInitial Public Offering of Aima Technology Group Co., Ltd.” (Zheng Jian Xu Ke [2021] No. 1775), on June 3, 2021,the Company publicly issued 65,000,000 RMB common shares (A-shares) through the Shanghai StockExchange (hereinafter referred to as the “SSE”) trading system and the offline subscription electronic platformwhich were listed for trading with Shanghai Stock Exchange on June 15, 2021.(II) Changes in total common shares and shareholders structure, as well as in assets and liabilitiesstructure"√ Applicable" "□ Not applicable"
During the reporting period, the Company publicly issued 65,000,000 common shares (A shares), and theCompany's total capital stock changed from 338,660,003 shares to 403,660,003 shares. At the end of theprevious year, the total assets amounted to RMB9,558,496,657.40, the total liabilities amounted toRMB6,910,653,818.49, and the gearing ratio was 72.30%; at the end of the reporting period, the total assetsamounted to RMB13,396,944,911.18, the total liabilities amounted to RMB8,417,177,181.15, and the gearingratio was 62.83%.III. Shareholders and Actual Controller(I) Total number of shareholders
Total number of common shareholders up to the end of the reporting period | 31,306 |
Total number of common shareholders as at the end of the last month prior to the disclosure day of the annual report | 26,472 |
(II) Table of top 10 shareholders, top 10 common shares (or tradable shares without selling restrictions)by the end of reporting period
In: share
Shareholdings by top 10 shareholders | |||||||
Names of the Shareholders (Full name) | Increase/Decrease during the reporting period | Number of shares held at the end of the reporting period | Percentage (%) | Number of restricted shares | Status of shares pledged, marked or frozen | Nature of the shareholder | |
Status of the shares | Quantity | ||||||
Zhang Jian | 282,317,000 | 69.94 | 282,317,000 | Nil | Domestic natural person |
Changxing Dingai Investment Management Partnership (LLP) | 16,933,000 | 4.19 | 16,933,000 | Nil | Domestic non-state legal entity | |||
CITIC Securities Investment Co., Ltd. | 8,400,000 | 2.08 | 8,400,000 | Nil | Domestic non-state legal entity | |||
Jinshi Zhiyu Equity Investment (Hangzhou) Partnership (Limited Partnership) | 8,260,001 | 2.05 | 8,260,001 | Nil | Domestic non-state legal entity | |||
Three Gorges Jinshi (Wuhan) Equity Investment Fund Partnership (LLP) | 3,500,001 | 0.87 | 3,500,001 | Nil | Domestic non-state legal entity | |||
Jinshi Haofeng Equity Investment (Hangzhou) Partnership (LLP) | 3,500,001 | 0.87 | 3,500,001 | Nil | Domestic non-state legal entity | |||
Peng Wei | 3,150,000 | 0.78 | 3,150,000 | Nil | Domestic natural person | |||
Han Jianhua | 3,150,000 | 0.78 | 3,150,000 | Nil | Domestic natural person | |||
Li Shishuang | 3,150,000 | 0.78 | 3,150,000 | Nil | Domestic natural person | |||
Liu Jianxin | 3,150,000 | 0.78 | 3,150,000 | Nil | Domestic natural person | |||
Qiao Baogang | 3,150,000 | 0.78 | 3,150,000 | Nil | Domestic natural person | |||
Shareholdings of top 10 shareholders of tradable shares without selling restrictions | ||||||||
Names of the Shareholders | Number of tradable shares without selling restrictions | Types and Number of shares | ||||||
Types | Quantity | |||||||
National Social Security Fund 113 | 2,699,913 | Common floating shares | 2,699,913 | |||||
Basic Endowment Insurance Fund Portfolio 802 | 1,745,500 | Common floating shares | 1,745,500 | |||||
Huang Yunhai | 1,671,748 | Common floating shares | 1,671,748 | |||||
China Merchants Bank Co., Ltd. - E Fund Day Fenghua Bond Type Securities Investment Fund | 1,521,784 | Common floating shares | 1,521,784 | |||||
Construction Bank of China - BOSERA THEME INDUSTRY Mixed Securities Investment Fund (LOF) | 1,457,932 | Common floating shares | 1,457,932 | |||||
TAIPING LIFE INSURANCE COMPANY LIMITED | 900,026 | Common floating shares | 900,026 | |||||
Dajia Life Insurance Co., Ltd.- Universal Products | 865,324 | Common floating shares | 865,324 | |||||
Construction Bank of China Co., Ltd. - Huaxia Emerging Economies 1-Year Holding Hybrid Securities Investment Fund | 763,858 | Common floating shares | 763,858 | |||||
Shanghai Ruiyi Investment Development Center - Ruiyi Investment Panshan Phase VI Block Trading Private Placement Investment Fund | 563,219 | Common floating shares | 563,219 | |||||
Construction Bank of China Co., Ltd. - Huaxia Emerging Economies 1-Year Holding Hybrid Securities Investment Fund | 506,919 | Common floating shares | 506,919 | |||||
Explanation on repurchase account of top 10 shareholders | Not applicable |
Explanation on delegated voting rights, entrusted voting rights, abstained voting rights of the aforesaid shareholders | Not applicable |
Notes to the related relation or consistent actions of the above-mentioned shareholders | CITIC Investment, Jinshi Zhiyu, Jinshi Haofeng and Three Gorges Jinshi are enterprises under the same control of CITIC Securities Co., Ltd. and are concerted actors. Apart from the above circumstance, it is not known whether there is an associated relationship among the other shareholders mentioned above, and it is also unknown whether the other shareholders are concerted actors as stipulated in the Measures for the Administration of the Acquisition of Listed Companies. |
Explanation on preference stockholders with recovered voting rights and the number of stocks held by them | Not applicable |
Number of shares held by top ten shareholders with selling restrictions and the selling restrictions"√ Applicable" "□ Not applicable"
In: share
No. | Names of shareholders with selling restrictions | Number of restricted shares | Restricted shares allowed for public trading | Selling restrictions | |
Date when public trading is allowed | Increase in restricted shares allowed for public trading | ||||
1 | Zhang Jian | 282,317,000 | June 15, 2024 | Non-tradable for 36 months from IPO | |
2 | Changxing Dingai Investment Management Partnership (LLP) | 16,933,000 | June 15, 2024 | Non-tradable for 36 months from IPO | |
3 | CITIC Securities Investment Co., Ltd. | 8,400,000 | June 15, 2022 | Non-tradable for12 months from IPO | |
4 | Jinshi Zhiyu Equity Investment (Hangzhou) Partnership (Limited Partnership) | 8,260,001 | June 15, 2022 | Non-tradable for12 months from IPO | |
5 | Three Gorges Jinshi (Wuhan) Equity Investment Fund Partnership (LLP) | 3,500,001 | June 15, 2022 | Non-tradable for12 months from IPO | |
6 | Jinshi Haofeng Equity Investment (Hangzhou) Partnership (LLP) | 3,500,001 | June 15, 2022 | Non-tradable for12 months from IPO | |
7 | Peng Wei | 3,150,000 | June 15, 2022 | Non-tradable for12 months from IPO | |
8 | Han Jianhua | 3,150,000 | June 15, 2022 | Non-tradable for12 months from IPO | |
9 | Li Shishuang | 3,150,000 | June 15, 2022 | Non-tradable for12 months from IPO | |
10 | Liu Jianxin | 3,150,000 | June 15, 2022 | Non-tradable for12 months from IPO | |
11 | Qiao Baogang | 3,150,000 | June 15, 2022 | Non-tradable for12 months from IPO | |
Notes to the related relation or consistent actions of the above-mentioned shareholders | CITIC Investment, Jinshi Zhiyu, Jinshi Haofeng and Three Gorges Jinshi are enterprises under the same control of CITIC Securities Co., Ltd. and are concerted actors. Apart from the above circumstance, it is not known whether there is an associated relationship among the other shareholders mentioned above, and it is also unknown whether the other shareholders are concerted actors as stipulated in the Measures for the Administration of the Acquisition of Listed Companies. |
(III) Strategic investors or general legal entity who became the top 10 shareholders due to placing of newshares"□ Applicable" "√ Not applicable"
IV. Controlling Shareholders and Actual Controllers(I) Controlling shareholder
1. Legal entity
"□ Applicable" "√ Not applicable"
2. Natural person
"√ Applicable" "□ Not applicable"
Name | Zhang Jian |
Nationality | China |
Residency in other countries or regions (yes/no) | No |
Main occupations and positions | Chairman of the Board & General Manager |
3. Special statement about no controlling shareholder in the Company
"□ Applicable" "√ Not applicable"
4. Explanation on changes in controlling shareholders during the reporting period"□ Applicable" "√ Not applicable"
5. Framework of the ownership and controlling relationship between the Company and its controllingshareholder"√ Applicable" "□ Not applicable"
(II) Actual controller
1. Legal entity
"□ Applicable" "√ Not applicable"
2. Natural person
"√ Applicable" "□ Not applicable"
Name | Zhang Jian, Zhang Gege |
Nationality | China |
Residency in other countries or regions (yes/no) | No |
Main occupations and positions | Zhang Jian is the Chairman of the Board and the General Manager of the Company; Zhang Gege is a director of the Company, the executive director and general manager of Tianjin Suiwanwan, and the executive partner of Changxing Dingai. |
Controlling interests in other domestically and overseas listed companies in the past 10 years | Not applicable |
3. Special statement about no actual controller in the Company
"□ Applicable" "√ Not applicable"
4. Explanation on changes in the Company’s Control during the reporting period"□ Applicable" "√ Not applicable"
5. Framework of ownership and controlling relationship between the Company and the actual controllers"√ Applicable" "□ Not applicable"
6. The actual controller controls the Company by way of Trust or other Assets Management"□ Applicable" "√ Not applicable"
(III) Other information about Controlling shareholders and actual controllers"√ Applicable" "□ Not applicable"Zhang Jian and Zhang Gege, the actual controllers of the Company, are in a father-daughter relationship,in which Zhang Jian directly holds 282,317,000 shares of the Company, and Zhang Gege indirectly holds4,571,910 shares of the Company through Changxing DingAi Investment Management Partnership (LimitedPartnership).
On January 24, 2022, the Company's 2021 equity incentive restricted shares were first granted andregistered, resulting in a change in the Company's total capital stock, and the proportion of the shares in theCompany held b y Zhang Jian and Zhang Ge, the two actual controllers of the Company, was reduced from
71.07% to 69.90%.
V. The Proportion of The Accumulated Number of Shares Pledged by The Controlling Shareholders orThe Largest Shareholder of the Company, Together with The Parties Acting in Concert with Them to TheNumber of Shares of The Company Held by Them Amounts to More Than 80%"□ Applicable" "√ Not applicable"VI. Other Legal Entity Shareholder Holding More Than 10%"□ Applicable" "√ Not applicable"VII. Explanation on The Reduction of Restricted Shares"√ Applicable" "□ Not applicable"
For details, please refer to the interpretation on shareholding lessening as stated in “Section 6 I. (I)Commitments of the Company’s actual controller, shareholders, related parties, acquirer, as well as theCompany and other relevant entities during or up to the reporting period”. There existed no shareholdinglessening by any of the subjects restricted for shareholding lessening against the regulations.VIII. Specific Implementation of Share Repurchase During The Reporting Period"□ Applicable" "√ Not applicable"
Section 8 Preferred Shares
"□ Applicable" "√ Not applicable"
Section 9 Corporate Bonds
I. Enterprise Bonds, Corporate Bonds and Debt Financing Instruments for Non-financial Enterprises"□ Applicable" "√ Not applicable"
II. Convertible Corporate Bonds"□ Applicable" "√ Not applicable"
Section 10 Financial Report
I. Auditor’s Report"√ Applicable" "□ Not applicable"
Ernst & Young Hua Ming (2022) Shen Zi NO.60968971_B01
AIMA Technology Group Co., LTD.
To all shareholders of AIMA Technology Group Co., LTD.,I. OpinionWe have audited the financial statements of AIMA Technology Group Co., LTD. (the “Company”), whichcomprise the consolidated and company balance sheets as at 31 December 2021, and the consolidated andcompany income statements, the consolidated and company statement of changes in equity and theconsolidated and company statement of cash flows for the year then ended, and notes to the financial statements.In our opinion, the accompanying financial statements present fairly, in all material respects, the financialposition of the consolidated and company as at 31 December 2021, and of its financial performance and cashflows for the year then ended in accordance with Accounting Standards for Business Enterprises (“ASBEs”).II. Basis for opinionWe conducted our audit in accordance with China Standards on Auditing (“CSAs”). Our responsibilitiesunder those standards are further described in the Auditor’s responsibilities for the audit of the financialstatements section of our report. We are independent of the Company in accordance with China Code of Ethicsfor Certified Public Accountants (the “Code”), and we have fulfilled our other ethical responsibilities in accordancewith the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide abasis for our opinion.III. Key audit mattersKey audit matters are those matters that, in our professional judgement, were of most significance in ouraudit of the financial statements of the current period. These matters were addressed in the context of our audit
of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separateopinion on these matters. For each matter below, our description of how our audit addressed the matter isprovided in that context.We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the financialstatements section of our report, including in relation to these matters. Accordingly, our audit included theperformance of procedures designed to respond to our assessment of the risks of material misstatement of thefinancial statements. The results of our audit procedures, including the procedures performed to address thematters below, provide the basis for our audit opinion on the accompanying financial statements.
Key audit matters: | How our audit addressed the key audit matter: |
Sales rebates and incentives | |
The book value of sales rebates and incentives payable in the consolidated financial statements on December 31, 2021 was RMB 186,926,832.16, and the book value of sales rebates and incentives payable in the Company's financial statements was RMB 101,065,324.67. It is stipulated in the distribution agreement signed with the dealers that sales rebates and other specific incentives should be given based on the purchase volume to offset against revenue. On the balance sheet date, sales rebates and incentives are estimated based on the dealers’ purchase volume and other rebates and promotion policies. Due to the large number of dealers and the various forms of sales rebates and incentives, the purchase volume of each dealer and the achievement of other performances needs to be considered in order to determine the period of sales rebates and incentives. The calculation of sales rebates and incentives depends on the judgment and estimate of the management. The accounting policies, accounting estimates and disclosures for the sales rebates and incentives are set out in “V. 38. Revenue”, “V. 43. Other significant accounting policies and accounting estimates” and “VII. 38. Contract liabilities” of the financial report in this section”. | Our audit procedures performed on sales rebates and incentives mainly include: 1) Understand the internal control of sales rebate and incentives management, perform walkthrough test and control test on identified controls; 2) Check the distribution agreements signed with several dealers in 2021, and checking the provisions in the distribution agreements on sales rebates and incentives; 3) Select a number of dealers to check whether the sales rebates and incentives obtained by them comply with the relevant sales policies, and check the application of these dealers' sales rebates and incentives; 4) Check the year-end sales rebate calculation process prepared by the management, and check whether the target sales volume of the dealer's year-end sales rebate has been achieved for the year-end rebate; and check whether the quantity and unit price of the calculated sales rebate are consistent with the specific terms in the distribution agreement; 5) Execute the subsequent review procedure to check the sales rebate payable by the Company at the end of the year and the actual payment status thereafter. |
Bad debt provision of accounts receivable | |
The book value of accounts receivable in the consolidated financial statements on December 31, 2021 was RMB 207,629,801.65, and the book value of the accounts receivable in the Company's financial statements was RMB 90,196,112.09. The management considers the credit risk characteristics of different customers and evaluates the expected credit losses (“ECLs”) of accounts receivable based on the aging portfolio. Then, on the basis of ECLs, the bad debt provision is measured according to the ECLs amount equivalent to the entire lifetime. The management considers reasonable and supportable information about past events, current conditions and forecasts of future economic conditions when assessing ECLs. The dealers’ customers are scattered and numerous, and the estimation of bad-debt provision for accounts receivable depends on the judgment and estimation of the management. The accounting policies and disclosures for bad-debt provision for accounts receivable are set out in “V. 10. Financial instruments”, “V. 43. Other important accounting policies and accounting estimates”, “VII. 5. Accounts receivable” in the financial report of this | Our audit procedures performed on bad debt provision for accounts receivable mainly include: 1)For the accounts receivable that have been individually assessed for impairment, interview the managers of the sales department and the legal department, and review the basis for the management to estimate the bad debt provision, including the communication correspondences between the management and the relevant customers, the management’s assessment on credit risks of the customers in consideration of their operating conditions and historical payment record, etc.; 2) For the accounts receivable assessed by combination, review the management's setting of the combination of credit risk characteristics, key information such as the aging and credit quality records of each combination by sampling; and with the combination of credit risk characteristics (i.e. ageing combination) as the base, review the management’s basis to assess the credit risk and ECLs amount, including testing historical default data, evaluating adjustments to historical loss rates based on current economic conditions, and evaluating forward-looking information by examining publicly available macroeconomic factors, and check the actual credit losses incurred during the |
section, “XVII. 1. Accounts receivable". | year; 3) Check the subsequent collection of accounts receivable, and consider the impact of subsequent events on the estimation of bad debt provision; 4)Retest the calculation process of bad debt provision for accounts receivable, and review the amount of bad debt provision; 5) Review the disclosure of bad debt provision for accounts receivable in the financial statements. |
IV. Other informationThe management of AIMA Technology Group Co., LTD. is responsible for the other information. The otherinformation comprises the information included in the Annual Report, other than the financial statements and ourauditor’s report thereon.Our opinion on the financial statements does not cover the other information and we do not express anyform of assurance conclusion thereon.In connection with our audit of the financial statements, our responsibility is to read the other informationand, in doing so, consider whether the other information is materially inconsistent with the financial statementsor our knowledge obtained in the audit or otherwise appears to be materially misstated.If, based on the work we have performed, we conclude that there is a material misstatement of this otherinformation, we are required to report that fact. We have nothing to report in this regard.
V. Responsibilities of the management and those charged with governance for the financialstatementsThe management of the Company is responsible for the preparation and fair presentation of the financialstatements in accordance with ASBEs, and for designing, implementing and maintaining such internal control asthe management determines is necessary to enable the preparation of financial statements that are free frommaterial misstatement, whether due to fraud or error.In preparing the financial statements, the management is responsible for assessing AIMA Technology GroupCo., LTD.’s ability to continue as a going concern, disclosing, as applicable, matters related to going concernand using the going concern basis of accounting unless either intend to liquidate AIMA Technology Group Co,.LTD. or to cease operations or have no realistic alternative but to do so.
Those charged with governance is responsible for overseeing AIMA Technology Group Co., LTD.’s financialreporting process.
VI. Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole arefree from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes ouropinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted inaccordance with CSAs will always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are generally considered material if, individually or in the aggregate, they could reasonably beexpected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with CSAs, we exercise professional judgement and maintain professionalskepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements, whether due to fraudor error, design and perform audit procedures responsive to those risks, and obtain audit evidence that issufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentionalomissions, misrepresentations, or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures thatare appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness ofinternal control.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accountingestimates and related disclosures made by the management.
(4) Conclude on the appropriateness of the management’s use of the going concern basis of accountingand, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditionsthat may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that amaterial uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures inthe financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions arebased on the audit evidence obtained up to the date of our auditor’s report. However, future events orconditions may cause the Company to cease to continue as a going concern.
(5) Evaluate the overall presentation, structure and content of the financial statements, including thedisclosures, and whether the financial statements represent the underlying transactions and events in a mannerthat achieves fair presentation.
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or businessactivities within the Company to express an opinion on the financial statements. We are responsible for thedirection, supervision and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scopeand timing of the audit and significant audit findings, including any significant deficiencies in internal control thatwe identify during our audit.We also provide those charged with governance with a statement that we have complied with relevantethical requirements regarding independence and to communicate with those charged with governance allrelationships and other matters that may reasonably be thought to bear on our independence, and whereapplicable, related safeguards.From the matters communicated with those charged with governance, we determine those matters that wereof most significance in the audit of the financial statements of the current period and are therefore the key auditmatters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosureabout the matter or when, in extremely rare circumstances, we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonably be expected tooutweigh the public interest benefits of such communication.
Ernst & Young Hua Ming LLP Chinese Certified Public Accountant: ZhangJiong
Chinese Certified Public Accountant: Zhang Bin
Beijing, the People’s Republic of China 14 April 2022
II. Financial Statements
Consolidated Balance SheetDecember 31, 2021Prepared by AIMA Technology Group Co., LTD.
In:Yuan Currency:RMB
Items | Notes | December 31, 2021 | December 31, 2020 |
Current assets: | |||
Currency funds | VII.1 | 2,846,143,310.70 | 1,249,120,118.26 |
Settlement reserve | |||
Inter-bank lending | |||
Financial assets held for trading | VII.2 | 1,265,981,818.24 | 458,440,486.16 |
Derivative financial assets | |||
Notes receivable | |||
Accounts receivable | VII.5 | 207,629,801.65 | 187,700,162.28 |
Receivables financing | VII.6 | 49,295,422.59 | 194,010,599.36 |
Prepayments | VII.7 | 21,538,098.38 | 20,248,469.38 |
Receivable premium | |||
Reinsurance accounts receivable | |||
Reserve for reinsurance contract receivable | |||
Other receivables | VII.8 | 150,069,854.58 | 85,518,641.96 |
Including: Interest receivable | 642,997.45 | 930,559.39 | |
Dividend receivable | |||
Redemptory monetary capital for sale | |||
Inventories | VII.9 | 795,689,208.89 | 494,751,269.64 |
Contract assets | |||
Assets classified as held for sale | |||
Current portion of non-current assets | VII.12 | 875,045,616.43 | |
Other current assets | VII.13 | 170,807,953.30 | 120,605,121.80 |
Total current assets | 5,507,155,468.33 | 3,685,440,485.27 | |
Non-current assets: | |||
Loan issuing and advance in cash | |||
Debt investments | |||
Other debt investments | |||
Long-term receivables | |||
Long-term equity investments | VII.17 | 105,073,280.23 | 32,946,576.25 |
Other equity investments | |||
Other non-current financial assets | |||
Investment properties | VII.20 | 270,188,544.27 | 223,753,945.07 |
Fixed assets | VII.21 | 1,966,085,704.31 | 1,781,506,536.14 |
Construction in progress | VII.22 | 114,131,095.16 | 47,995,478.09 |
Productive biological asset | |||
Oil and Gas Assets | |||
Right-of-use assets | VII.25 | 41,226,833.58 | |
Intangible assets | VII.26 | 332,074,064.23 | 316,215,456.18 |
Development expenditures | |||
Goodwill | |||
Long-term prepaid expenses | VII.29 | 29,394,318.63 | 11,802,083.24 |
Deferred tax assets | VII.30 | 88,843,633.31 | 56,365,819.88 |
Other non-current assets | VII.31 | 4,942,771,969.13 | 3,402,470,277.28 |
Total non-current assets | 7,889,789,442.85 | 5,873,056,172.13 | |
Total assets | 13,396,944,911.18 | 9,558,496,657.40 | |
Current liabilities: | |||
Short-term borrowings | |||
Borrowings from the central bank | |||
Loans from other banks | |||
Financial liabilities held for trading | |||
Derivative financial liabilities | |||
Notes payable | VII.35 | 4,926,337,711.40 | 4,555,247,953.70 |
Accounts payable | VII.36 | 2,132,113,371.54 | 1,382,013,472.83 |
Receipts in advance | VII.37 | 13,125,994.89 | |
Contract liabilities | VII.38 | 483,535,624.57 | 318,471,009.89 |
Money from sale of the repurchased financial assets | |||
Deposits taking and interbank placement | |||
Acting trading securities | |||
Income from securities underwriting on commission | |||
Employee benefits payable | VII.39 | 113,584,622.70 | 89,154,510.59 |
Taxes and surcharges payable | VII.40 | 58,301,487.57 | 25,977,920.73 |
Other payables | VII.41 | 478,360,431.77 | 453,785,184.64 |
Including: interest payable | |||
Dividends payable | |||
Service charge and commission payable | |||
Payable reinsurance | |||
Liabilities classified as held for sale | |||
Current portion of non-current liabilities | VII.43 | 5,923,801.00 | |
Other current liabilities | VII.44 | 39,990,259.74 | 12,219,830.60 |
Total current liabilities | 8,251,273,305.18 | 6,836,869,882.98 | |
Non-current liabilities: | |||
Reserve for insurance contract | |||
Long-term borrowings | |||
Bonds payable | |||
Including: preferred shares | |||
Perpetual bond | |||
Lease liabilities | VII.47 | 46,589,311.07 | |
Long-term payables | |||
Long-term employee benefits payable | |||
Provisions | |||
Deferred income | VII.51 | 118,883,340.46 | 73,775,195.25 |
Deferred tax liabilities | VII.30 | 431,224.44 | 8,740.26 |
Other non-current liabilities |
Total non-current liabilities | 165,903,875.97 | 73,783,935.51 | |
Total liabilities | 8,417,177,181.15 | 6,910,653,818.49 | |
Shareholders’Equity: | |||
Share capital | VII.53 | 403,660,003.00 | 338,660,003.00 |
Other equity instruments | |||
Including: preferred shares | |||
Perpetual bond | |||
Capital reserves | VII.55 | 1,935,686,839.31 | 319,618,893.64 |
Less: Treasury shares | |||
Other comprehensive income | |||
Special reserves | |||
Surplus reserves | VII.59 | 201,830,001.50 | 189,936,412.55 |
General risks reserves | |||
Retained earnings | VII.60 | 2,433,650,547.11 | 1,781,546,043.16 |
Total shareholders’ equity attributable to the parent company | 4,974,827,390.92 | 2,629,761,352.35 | |
Non-controlling interests | 4,940,339.11 | 18,081,486.56 | |
Total shareholder’s equity | 4,979,767,730.03 | 2,647,842,838.91 | |
Total Liabilities and Shareholder’s Equity | 13,396,944,911.18 | 9,558,496,657.40 |
Legal representative: Zhang Jian Financial controller: Zheng Hui Accounting supervisor: Zheng Hui
Balance Sheet, Parent Company
December 31, 2021Prepared by: AIMA Technology Group Co,. LTD.
In:Yuan Currency:RMB
Items | Notes | December 31, 2021 | December 31, 2020 |
Current assets: | |||
Currency funds | 1,381,189,954.73 | 1,026,281,081.52 | |
Financial assets held for trading | 487,120,547.95 | 60,600,000.00 | |
Derivative financial assets | |||
Notes receivable | |||
Accounts receivable | XVII.1 | 90,196,112.09 | 187,973,999.10 |
Receivables financing | 2,920,000.00 | ||
Prepayments | 8,325,601.78 | 9,320,260.63 | |
Other receivables | XVII.2 | 226,834,333.25 | 54,343,683.45 |
Including: Interest receivable | 255,452.31 | 928,998.18 | |
Dividend receivable | |||
Inventories | 11,327,860.00 | 5,103,408.33 | |
Contract assets | |||
Assets classified as held for sale | |||
Current portion of non-current assets | 875,045,616.43 | ||
Other current assets | 1,908,746.07 | 48,187,421.72 | |
Total current assets | 2,206,903,155.87 | 2,269,775,471.18 | |
Non-current assets: | |||
Debt investments | |||
Other debt investments | |||
Long-term receivables | |||
Long-term equity investments | XVII.3 | 874,946,715.49 | 693,448,588.33 |
Other equity investments | |||
Other non-current financial assets | |||
Investment properties | 426,912,592.10 | 438,596,163.82 | |
Fixed assets | 62,254,198.18 | 48,254,628.34 | |
Construction in progress | 49,538,123.48 | 13,543,609.26 | |
Productive biological asset | |||
Oil and Gas Assets | |||
Right-of-use assets | 11,005,806.85 |
Intangible assets | 59,929,778.27 | 30,295,640.40 | |
Development expenditures | |||
Goodwill | |||
Long-term prepaid expenses | 14,285,240.24 | 1,021,465.06 | |
Deferred tax assets | 43,885,593.62 | 20,994,245.62 | |
Other non-current assets | 4,108,653,262.00 | 3,190,437,580.45 | |
Total non-current assets | 5,651,411,310.23 | 4,436,591,921.28 | |
Total assets | 7,858,314,466.10 | 6,706,367,392.46 | |
Current liabilities: | |||
Short-term borrowings | |||
Financial liabilities held for trading | |||
Derivative financial liabilities | |||
Notes payable | 1,200,158,631.00 | 1,535,609,263.11 | |
Accounts payable | 1,856,691,257.42 | 2,581,643,212.31 | |
Receipts in advance | 18,776,664.32 | ||
Contract liabilities | 259,774,265.64 | 293,258,453.68 | |
Employee benefits payable | 32,754,658.59 | 25,528,265.93 | |
Taxes and surcharges payable | 1,220,779.78 | 666,987.59 | |
Other payables | 356,709,196.67 | 308,332,553.91 | |
Including: interest payable | |||
Dividends payable | |||
Liabilities classified as held for sale | |||
Current portion of non-current liabilities | 4,349,098.29 | ||
Other current liabilities | 22,063,245.17 | 9,711,127.61 | |
Total current liabilities | 3,752,497,796.88 | 4,754,749,864.14 | |
Non-current liabilities: | |||
Long-term borrowings | |||
Bonds payable | |||
Including: preferred shares | |||
Perpetual bond | |||
Lease liabilities | 6,909,182.17 | ||
Long-term payables | |||
Long-term employee benefits payable | |||
Provisions | |||
Deferred income | 35,407,977.88 | 36,257,597.30 | |
Deferred tax liabilities | |||
Other non-current liabilities | |||
Total non-current liabilities | 42,317,160.05 | 36,257,597.30 | |
Total liabilities | 3,794,814,956.93 | 4,791,007,461.44 | |
Shareholders’Equity: | |||
Share capital | 403,660,003.00 | 338,660,003.00 | |
Other equity instruments | |||
Including: preferred shares | |||
Perpetual bond | |||
Capital reserves | 1,910,845,161.11 | 294,981,361.11 | |
Less: Treasury shares | |||
Other comprehensive income | |||
Special reserves | |||
Surplus reserves | 201,830,001.50 | 189,936,412.55 | |
Retained earnings | 1,547,164,343.56 | 1,091,782,154.36 | |
Total shareholder’s equity | 4,063,499,509.17 | 1,915,359,931.02 | |
Total Liabilities and Shareholder’s Equity | 7,858,314,466.10 | 6,706,367,392.46 |
Legal representative: Zhang Jian Financial controller : Zheng Hui Accounting supervisor: Zheng Hui
Consolidated Income Statement
2021
In:Yuan Currency: RMB
Items | Notes | 2021 | 2020 |
I. Revenue | 15,398,710,870.72 | 12,904,586,099.11 | |
Including: operating revenue | VII.61 | 15,398,710,870.72 | 12,904,586,099.11 |
Interest income | |||
Earned insurance premium | |||
Service charge and commission income | |||
II. Total operating costs | 14,659,904,964.29 | 12,252,528,155.38 | |
Including: cost of sales | VII.61 | 13,593,606,029.56 | 11,431,221,982.27 |
Interest payment | |||
Service charge and commission payment | |||
Surrender Value | |||
Compensation expenses, net | |||
Provision of reserve for insurance liabilities, net | |||
Payment of policy dividend | |||
Reinsurance expenses | |||
Taxes and surcharges | VII.62 | 56,148,586.05 | 52,625,966.82 |
Selling expenses | VII.63 | 550,605,290.98 | 398,784,858.24 |
Administrative expenses | VII.64 | 316,594,598.36 | 265,551,124.65 |
Research and development expenses | VII.65 | 404,084,127.91 | 239,440,162.52 |
Financial expenses | VII.66 | -261,133,668.57 | -135,095,939.12 |
Including: Interest expenses | 1,869,959.31 | 10,954,710.98 | |
Interest income | 264,701,993.37 | 150,694,536.85 | |
Add: Other income | VII.67 | 22,672,276.61 | 29,136,346.91 |
Investment income (loss is stated with “-”) | VII.68 | -16,374,983.63 | 71,851,196.50 |
Including: Income from investments in associates and joint ventures | -39,867,033.98 | 10,372,839.35 | |
Income from the derecognition of financial assets measured at amortised cost | |||
Exchange income (loss stated with “-“) | |||
Net position hedging gains (loss stated with “-“) | |||
Fair value gains (loss is stated with “-”) | VII.70 | 9,978,187.68 | 12,219,498.91 |
Credit impairment losses (loss is stated with “-”) | VII.71 | 5,960,856.26 | 3,965,931.68 |
Impairment losses of assets (loss is stated with “-”) | VII.72 | -11,557,401.98 | -679,328.75 |
Gains on disposal of non-current assets (loss is stated with “-”) | VII.73 | -10,592,015.11 | -4,371,284.89 |
III. Operating profit (loss is stated with “-“) | 738,892,826.26 | 764,180,304.09 | |
Add: Non-operating income | VII.74 | 30,687,494.40 | 26,135,758.67 |
Less: Non-operating expenses | VII.75 | 11,326,697.86 | 11,236,658.62 |
IV. Total profit (total loss is stated with “-”) | 758,253,622.80 | 779,079,404.14 | |
Less: Income tax expense | VII.76 | 90,532,343.61 | 169,238,614.08 |
V. Net Profit (net loss is stated with “-“) | 667,721,279.19 | 609,840,790.06 | |
(I) Classified by continuity of operations | |||
1. Profit from continuing operations(loss is stated with “-”) | |||
2. Profit from discontinued operations(loss is stated with “-”) | |||
(II) Classified by ownership | |||
1. Profit attributable to owners of the parent(loss is stated with “-”) | 663,998,092.90 | 598,524,584.35 | |
2. Profit attributable to non-controlling interests(loss is stated with “-”) | 3,723,186.29 | 11,316,205.71 | |
VI. Other comprehensive income, net of tax | |||
(I) Other comprehensive income, net of tax, attributable to owners of the parent | |||
1 Other comprehensive income that will not be reclassified to profit or loss | |||
(1) Remeasurement of a defined benefit plan | |||
(2) Other comprehensive income using the equity method that will not be reclassified to profit or loss | |||
(3) Change in the fair value of other equity investments |
(4) Change in the fair value of the entity’s own credit risks | |||
2. Other comprehensive income that may be reclassified to profit or loss | |||
(1) Other comprehensive income using the equity method that may be reclassified to profit or loss | |||
(2) Change in the fair value of other debt investments | |||
(3) Amount recognized in other comprehensive income resulting from the reclassification of financial assets | |||
(4) Provision for credit impairment of receivables financing | |||
(5) Cash flow hedge reserve (Effective portion of cash flow hedges) | |||
(6) Exchange differences on translation of foreign currency financial statements | |||
(7) Others | |||
(II) Other comprehensive income, net of tax, attributable to non-controlling interests | |||
VII. Total comprehensive income | 667,721,279.19 | 609,840,790.06 | |
(I) Total comprehensive income attributable to owners of the parent | 663,998,092.90 | 598,524,584.35 | |
(II) Total comprehensive income attributable to non-controlling interests | 3,723,186.29 | 11,316,205.71 | |
VIII. Earnings per share: | |||
(I)Basic earning per share (RMB/share) | 1.79 | 1.77 | |
(II) Diluted earning per share (RMB/share) | 1.79 | 1.77 |
Legal representative: Zhang Jian Financial controller: Zheng Hui Accounting supervisor: Zheng Hui
Income Statement, Parent Company
2021
In:Yuan Currency: RMB
Items | Notes | 2021 | 2020 |
I. Operating revenue | XVII.4 | 10,943,228,159.23 | 11,794,656,290.53 |
Less: cost of sales | XVII.4 | 10,678,372,712.23 | 11,546,176,689.61 |
Taxes and surcharges | 10,355,046.08 | 13,663,859.20 | |
Selling expenses | 365,753,276.19 | 277,532,607.93 | |
Administrative expenses | 179,546,823.66 | 100,509,267.05 | |
Research and development expenses | 8,486,096.33 | ||
Financial expenses | -210,284,084.80 | -124,131,405.89 | |
Including: Interest expenses | 646,375.99 | ||
Interest income | 211,239,319.46 | 125,442,381.35 | |
Add: Other income | 3,645,613.87 | 4,487,710.36 | |
Investment income (loss is stated with “-”) | XVII.5 | 511,195,864.47 | 380,728,865.97 |
Including: Income from investments in associates and joint ventures | -39,589,711.80 | 10,372,839.35 | |
Income from the derecognition of financial assets measured at amortised cost | |||
Net position hedging gains (loss stated with “-“) | |||
Fair value gains (loss is stated with “-”) | 3,122,647.95 | 10,600,000.00 | |
Credit impairment losses (loss is stated with “-”) | 7,853,598.98 | -983,807.95 | |
Impairment losses (loss is stated with “-”) | -3,090,527.33 | ||
Gains on disposal of non-current assets (loss is stated with “-”) | 1,101,007.69 | 288,816.97 | |
II. Operating Profit (loss is stated with “-”) | 437,917,022.50 | 372,936,330.65 | |
Add: Non-operating income | 11,846,519.04 | 4,874,439.87 | |
Less: Non-operating expenses | 5,497,070.24 | 2,014,877.86 | |
III. Total profit (total loss is stated with “-“) | 444,266,471.30 | 375,795,892.66 | |
Less: Income tax expense | -23,009,306.85 | 10,989,295.61 | |
IV. Net Profit (net loss is stated with “-“) | 467,275,778.15 | 364,806,597.05 |
(I) Profit from continuing operations (net loss is stated with “-”) | 467,275,778.15 | 364,806,597.05 | |
(II) Profit from a discontinued operation (net loss is stated with “-”) | |||
V. Other comprehensive income, net of tax | |||
(I) Other comprehensive income which cannot be re-classified into the gain and loss | |||
1. Remeasurement of a defined benefit plan | |||
2. Other comprehensive income using the equity method that will not be reclassified to profit or loss | |||
3. Change in the fair value of other equity investments | |||
4. Change in the fair value of the entity’s own credit risks | |||
(II) Other comprehensive income that may be reclassified to profit or loss | |||
1. Other comprehensive income using the equity method that may be reclassified to profit or loss | |||
2. Change in the fair value of other debt investments | |||
3. Amount recognised in other comprehensive income resulting from the reclassification of financial assets | |||
4. Provision for credit impairment of receivables financing | |||
5. Cash flow hedge reserve (Effective portion of cash flow hedges) | |||
6. Exchange differences on translation of foreign currency financial statements | |||
7. Others | |||
VI. Total comprehensive income | 467,275,778.15 | 364,806,597.05 | |
VII. Earnings per share: | |||
(I)Basic earning per share (RMB/share) | |||
(II) Diluted earning per share (RMB/share) |
Legal representative: Zhang Jian Financial controller: Zheng Hui Accounting supervisor: Zheng Hui
Consolidated Statement of Cash Flows
2021
In:Yuan Currency: RMB
Items | Notes | 2021 | 2020 |
I. Cash flows from operating activities | |||
Cash receipts from the sale of goods and the rendering of services | 17,756,512,273.66 | 15,475,502,884.84 | |
Net increase of customers’ deposit and due from banks | |||
Net increase of borrowings from the central bank | |||
Net increase of borrowings from other financial institutions | |||
Cash received from the premium of the original insurance contract | |||
Net cash received from the reinsurance business | |||
Net increase of the reserve from policy holders and investment | |||
Cash received from interest, service charge and commission | |||
Net increase of loan from other banks | |||
Net increase of fund from repurchase business | |||
Net cash received from securities trading on commission | |||
Receipts of taxes and surcharges refunds | 52,669,169.36 | 4,853,543.93 | |
Other cash receipts relating to operating activities | VII.78 | 151,715,468.87 | 103,151,684.34 |
Total cash inflows from operating activities | 17,960,896,911.89 | 15,583,508,113.11 | |
Cash payments for goods and services | 13,901,355,060.72 | 12,911,439,657.89 | |
Net increase of loans and advances to customers | |||
Net increase of due from central bank and due from other banks | |||
Cash from payment for settlement of the original insurance contract | |||
Net increase of the lending capital | |||
Cash paid for interest, service charge and commission | |||
Cash for payment of policy dividend | |||
Cash payments to and on behalf of employees | 993,967,512.50 | 666,386,325.08 | |
Payments of all types of taxes and surcharges | 427,444,370.30 | 439,740,523.39 | |
Other cash payments relating to operating activities | VII.78 | 543,942,594.40 | 411,361,761.98 |
Total cash outflows from operating activities | 15,866,709,537.92 | 14,428,928,268.34 | |
Net cash flows from operating activities | 2,094,187,373.97 | 1,154,579,844.77 | |
II. Cash flows from investing activities: | |||
Cash receipts from returns of investments | 119,800,000.00 | 2,989,200,000.00 | |
Cash receipts from returns on investments | 141,528,971.25 | 108,378,734.93 | |
Net cash receipts from disposal of fixed assets, intangible assets and other long-term assets | 17,849,229.40 | 30,428,864.95 | |
Net cash receipts from disposal of subsidiaries and other business units | |||
Other cash receipts relating to investing activities | VII.78 | 16,002,100.00 | |
Total cash inflows from investing activities | 295,180,300.65 | 3,128,007,599.88 | |
Cash payments to acquire fixed assets, intangible assets and other long-term assets | 659,592,055.18 | 363,509,274.15 | |
Cash payments for investments | 1,659,730,000.04 | 3,225,000,000.00 | |
Net increase of the pledged loan | |||
Net cash payments for acquisition of subsidiaries and other business units | |||
Other cash payments relating to investing activities | 100,000,000.00 | ||
Total cash outflows from investing activities | 2,319,322,055.22 | 3,688,509,274.15 | |
Net cash flows from investing activities | -2,024,141,754.57 | -560,501,674.27 | |
III. Cash flows from financing activities: | |||
Cash proceeds from investments by others | 1,828,453,699.40 | ||
Including: Cash receipts from capital contributions from non-controlling interests of subsidiaries | |||
Cash receipts from borrowing | |||
Other cash receipts relating to financing activities | VII.78 | 466,996,028.88 | |
Total cash inflows from financing activities | 1,828,453,699.40 | 466,996,028.88 | |
Cash repayments for debts | |||
Cash payments for distribution of dividends or profit and interest expenses | 13,230,000.00 | 4,302,051.07 | |
Including: Dividends or profit paid to non-controlling shareholders of subsidiaries | 13,230,000.00 | 4,302,051.07 | |
Other cash payments relating to financing activities | VII.78 | 17,292,740.74 | 92,181,583.08 |
Total cash outflows from financing activities | 30,522,740.74 | 96,483,634.15 | |
Net cash flows from financing activities | 1,797,930,958.66 | 370,512,394.73 | |
IV. Effect of foreign exchange rate changes on cash and cash equivalents | -534,069.84 | -2,338,295.06 | |
V. Net increase in cash and cash equivalents | 1,867,442,508.22 | 962,252,270.17 | |
Add: Cash and cash equivalents at the beginning of the year | 978,700,802.48 | 16,448,532.31 | |
VI. Cash and cash equivalents at the end of the year | 2,846,143,310.70 | 978,700,802.48 |
Legal representative: Zhang Jian Financial controller: Zheng Hui Accounting supervisor: Zheng Hui
Statement of Cash Flows, Parent Company
2021
In:Yuan Currency: RMB
Items | Notes | 2021 | 2020 |
I. Cash flows from operating activities | |||
Cash receipts from the sale of goods and the rendering of services | 12,479,010,351.93 | 13,289,330,508.54 | |
Receipts of tax and surcharges refunds | 31,843,942.86 | ||
Other cash receipts relating to operating activities | 58,877,297.11 | 106,402,786.35 | |
Total cash inflows from operating activities | 12,569,731,591.90 | 13,395,733,294.89 | |
Cash payments for goods and services | 13,036,232,276.18 | 10,596,245,189.98 | |
Cash payments to and on behalf of employees | 254,458,245.22 | 137,501,877.81 | |
Payments of all types of taxes and surcharges | 25,016,277.14 | 76,114,567.00 | |
Other cash payments relating to operating activities | 353,843,037.93 | 210,308,120.61 | |
Total cash outflows from operating activities | 13,669,549,836.47 | 11,020,169,755.40 | |
Net cash flows from operating activities | -1,099,818,244.57 | 2,375,563,539.49 | |
II. Cash flows from investing activities: | |||
Cash receipts from returns of investments | 5,724,000.00 | 1,425,367,528.00 | |
Cash receipts from returns on investments | 661,081,902.78 | 390,532,498.00 | |
Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 1,516,772.14 | 335,209.76 | |
Net cash receipts from disposal of subsidiaries and other business units | |||
Other cash receipts relating to investing activities | 26,002,100.00 | ||
Total cash inflows from investing activities | 694,324,774.92 | 1,816,235,235.76 | |
Cash payments to acquire fixed assets, intangible assets and other long-term assets | 135,643,702.12 | 60,729,640.87 | |
Cash payments for investments | 673,914,101.00 | 3,000,000,000.00 | |
Net cash payments for acquisition of subsidiaries and other business units | 2,700,000.00 | ||
Other cash payments relating to other investing activities | 185,000,000.00 | 105,000,000.00 | |
Total cash outflows from investing activities | 994,557,803.12 | 3,168,429,640.87 | |
Net cash flows from investing activities | -300,233,028.20 | -1,352,194,405.11 | |
III. Cash flows from financing activities: | |||
Cash proceeds from investments by others | 1,828,453,699.40 | ||
Cash receipts from borrowings | |||
Other cash receipts relating to financing activities | |||
Total cash inflows from financing activities | 1,828,453,699.40 | ||
Cash repayments for debts | |||
Cash payments for distribution of dividends or profit and interest expenses | 646,375.99 | ||
Other cash payments relating to financing activities | 8,327,413.70 | 63,978,025.00 | |
Total cash outflows from financing activities | 8,973,789.69 | 63,978,025.00 | |
Net cash flows from financing activities | 1,819,479,909.71 | -63,978,025.00 | |
IV. Effect of foreign exchange rate changes on cash and cash equivalents | -308,858.66 | -402,836.52 | |
V. Net increase in cash and cash equivalents | 419,119,778.28 | 958,988,272.86 | |
Add: Cash and cash equivalents at the beginning of the year | 962,070,176.45 | 3,081,903.59 | |
VI. Cash and cash equivalents at the end of the year | 1,381,189,954.73 | 962,070,176.45 |
Legal representative: Zhang Jian Financial controller: Zheng Hui Accounting supervisor: Zheng Hui
Consolidated Statement of Changes in Owner’s Equity
2021
In:Yuan Currency: RMB
Items | 2021 | ||||||||||||||
Owners’ equity attributable to the parent company | Non- controlling interests | Total shareholders’ equity | |||||||||||||
Share capital | Other equity instruments | Capital reserves | Less: Treasury shares | Other comprehensive income | Special reserves | Surplus Reserves | Reserves for general risks | Retained earnings | Others | Sub-total | |||||
Preferred shares | Perpetual bond | Others | |||||||||||||
I. Balance at end of prior year | 338,660,003.00 | 319,618,893.64 | 189,936,412.55 | 1,781,546,043.16 | 2,629,761,352.35 | 18,081,486.56 | 2,647,842,838.91 | ||||||||
Add: Changes in accounting policy | |||||||||||||||
Correction of prior period errors | |||||||||||||||
Business combination involving entities under common control | |||||||||||||||
Others | |||||||||||||||
II. Balance at the beginning of the year | 338,660,003.00 | 319,618,893.64 | 189,936,412.55 | 1,781,546,043.16 | 2,629,761,352.35 | 18,081,486.56 | 2,647,842,838.91 |
III. Changes for the year(decrease is stated with “-“) | 65,000,000.00 | 1,616,067,945.67 | 11,893,588.95 | 652,104,503.95 | 2,345,066,038.57 | -13,141,147.45 | 2,331,924,891.12 | ||||||||
(I) Total comprehensive income | 663,998,092.90 | 663,998,092.90 | 3,723,186.29 | 667,721,279.19 | |||||||||||
(II) Shareholders’ contributions and reduction in capital | 65,000,000.00 | 1,616,067,945.67 | 1,681,067,945.67 | -3,634,333.74 | 1,677,433,611.93 | ||||||||||
1. Capital contributions by shareholders | 65,000,000.00 | 1,615,863,800.00 | 1,680,863,800.00 | 1,680,863,800.00 | |||||||||||
2. Capital contributed by other equity instruments holders | |||||||||||||||
3. Amount of share-based payments recognised in equity | |||||||||||||||
4. Others | |||||||||||||||
5. Purchase of the non-controlling interests | 204,145.67 | 204,145.67 | -3,898,246.67 | -3,694,101.00 |
6. Disposal of subsidiaries | 263,912.93 | 263,912.93 | |||||||||||||
(III) Profit Distribution | 11,893,588.95 | -11,893,588.95 | -13,230,000.00 | -13,230,000.00 | |||||||||||
1. Transfer to surplus reserves | 11,893,588.95 | -11,893,588.95 | |||||||||||||
2. Transfer to general risks reserves | |||||||||||||||
3. Distribution to shareholders | -13,230,000.00 | -13,230,000.00 | |||||||||||||
4. Others | |||||||||||||||
(IV) Internal carry-over of owners’ equity | |||||||||||||||
1. Capitalisation of capital reserves | |||||||||||||||
2. Capitalisation of surplus reserves | |||||||||||||||
3. Loss made up by surplus reserves | |||||||||||||||
4. Transfer of changes in the defined benefit |
plan to retained earnings | |||||||||||||||
5. Transfer of other comprehensive income to retained earnings | |||||||||||||||
6. Others | |||||||||||||||
(V) Special reserves | |||||||||||||||
1. Appropriation for the year | |||||||||||||||
2. Utilisation for the year | |||||||||||||||
(VI) Others | |||||||||||||||
IV. Balance at end of year | 403,660,003.00 | 1,935,686,839.31 | 201,830,001.50 | 2,433,650,547.11 | 4,974,827,390.92 | 4,940,339.11 | 4,979,767,730.03 |
Items | 2020 | ||||||||||||||
Owners’ equity attributable to the parent company | Non- controlling interests | Total shareholders’ equity | |||||||||||||
Share capital | Other equity instruments | Capital reserves | Less: Treasury shares | Other comprehensive income | Special reserves | Surplus Reserves | Reserves for general risks | Retained earnings | Others | Sub-total | |||||
Preferred shares | Perpetual bond | Others |
I. Balance at end of prior year | 338,660,003.00 | 322,216,957.58 | 189,936,412.55 | 1,183,021,458.81 | 2,033,834,831.94 | 10,974,267.98 | 2,044,809,099.92 | ||||||||
Add: Changes in accounting policy | |||||||||||||||
Correction of prior period errors | |||||||||||||||
Business combination involving entities under common control | |||||||||||||||
Others | |||||||||||||||
II. Balance at the beginning of the year | 338,660,003.00 | 322,216,957.58 | 189,936,412.55 | 1,183,021,458.81 | 2,033,834,831.94 | 10,974,267.98 | 2,044,809,099.92 | ||||||||
III. Changes for the year(decrease is stated with “-“) | -2,598,063.94 | 598,524,584.35 | 595,926,520.41 | 7,107,218.58 | 603,033,738.99 | ||||||||||
(I) Total comprehensive income | 598,524,584.35 | 598,524,584.35 | 11,316,205.71 | 609,840,790.06 | |||||||||||
(II) Shareholders’ | -2,598,063.94 | -2,598,063.94 | 93,063.94 | -2,505,000.00 |
contributions and reduction in capital | |||||||||||||||
1. Capital contributions by shareholders | |||||||||||||||
2. Capital contributed by other equity instruments holders | |||||||||||||||
3. Amount of share-based payments recognised in equity | |||||||||||||||
4. Others | -2,598,063.94 | -2,598,063.94 | 93,063.94 | -2,505,000.00 | |||||||||||
(III) Profit Distribution | -4,302,051.07 | -4,302,051.07 | |||||||||||||
1. Transfer to surplus reserves | |||||||||||||||
2. Transfer to general risk reserves | |||||||||||||||
3. Distribution to | -4,302,051.07 | -4,302,051.07 |
shareholders | |||||||||||||||
4. Others | |||||||||||||||
(IV) Internal carry-over of owners’ equity | |||||||||||||||
1. Capitalisation of capital reserves | |||||||||||||||
2. Capitalisation of surplus reserves | |||||||||||||||
3. Loss made up by surplus reserves | |||||||||||||||
4. Transfer of changes in the defined benefit plan to retained earnings | |||||||||||||||
5. Transfer of other comprehensive income to retained earnings | |||||||||||||||
6. Others |
(V) Special reserves | |||||||||||||||
1. Appropriation for the year | |||||||||||||||
2. Utilisation for the year | |||||||||||||||
(VI) Others | |||||||||||||||
IV. Balance at end of year | 338,660,003.00 | 319,618,893.64 | 189,936,412.55 | 1,781,546,043.16 | 2,629,761,352.35 | 18,081,486.56 | 2,647,842,838.91 |
Legal representative: Zhang Jian Financial controller: Zheng Hui Accounting supervisor: Zheng Hui
Statement of Changes in Owner’s Equity, Parent Company
2021
In:Yuan Currency:RMB
Items | 2021 | ||||||||||
Share capital | Other equity instruments | Capital reserves | Less: Treasury shares | Other comprehensive income | Special reserves | Surplus Reserves | Retained earnings | Total shareholders’ equity | |||
Preferred shares | Perpetual bond | Others | |||||||||
I. Balance at end of prior year | 338,660,003.00 | 294,981,361.11 | 189,936,412.55 | 1,091,782,154.36 | 1,915,359,931.02 | ||||||
Add: Changes in accounting policy | |||||||||||
Correction of prior period errors | |||||||||||
Others | |||||||||||
II. Balance at the beginning of the year | 338,660,003.00 | 294,981,361.11 | 189,936,412.55 | 1,091,782,154.36 | 1,915,359,931.02 |
III. Decrease/increase of the report year (decrease is stated with “-“) | 65,000,000.00 | 1,615,863,800.00 | 11,893,588.95 | 455,382,189.20 | 2,148,139,578.15 | ||||||
(I) Total comprehensive income | 467,275,778.15 | 467,275,778.15 | |||||||||
(II) Shareholders ‘contributions and reduction in capital | 65,000,000.00 | 1,615,863,800.00 | 1,680,863,800.00 | ||||||||
1. Capital contributions by shareholders | 65,000,000.00 | 1,615,863,800.00 | 1,680,863,800.00 | ||||||||
2. Capital contributed by other equity instruments holders | |||||||||||
3. Amount of payment for shares counted to shareholders’ equity | |||||||||||
4. Others | |||||||||||
(III) Profit Distribution | 11,893,588.95 | -11,893,588.95 | |||||||||
1. Transfer to surplus reserves | 11,893,588.95 | -11,893,588.95 | |||||||||
2. Distributions to shareholders | |||||||||||
3. Others | |||||||||||
(IV) Internal carry-over of owners’ equity | |||||||||||
1. Capitalisation of capital reserves | |||||||||||
2. Capitalisation of surplus reserves | |||||||||||
3. Loss made up by surplus reserves | |||||||||||
4. Transfer of changes in the defined benefit plan to retained earnings | |||||||||||
5. Transfer of other comprehensive income to retained earnings | |||||||||||
6. Others | |||||||||||
(V) Special reserves |
1. Appropriation for the year | |||||||||||
2. Utilisation for the year | |||||||||||
(VI) Others | |||||||||||
IV. Balance at end of year | 403,660,003.00 | 1,910,845,161.11 | 201,830,001.50 | 1,547,164,343.56 | 4,063,499,509.17 |
Items | Year 2020 | ||||||||||
Share capital | Other equity instruments | Capital reserves | Less: Treasury shares | Other comprehensive income | Special reserves | Surplus Reserves | Retained earnings | Total shareholders’ equity | |||
Preferred shares | Perpetual bond | Others | |||||||||
I. Balance at end of prior year | 338,660,003.00 | 294,981,361.11 | 189,936,412.55 | 726,975,557.31 | 1,550,553,333.97 | ||||||
Add: Changes in accounting policy | |||||||||||
Correction of prior period errors | |||||||||||
Others | |||||||||||
II. Balance at the beginning of the year | 338,660,003.00 | 294,981,361.11 | 189,936,412.55 | 726,975,557.31 | 1,550,553,333.97 | ||||||
III. Decrease/increase of the report year (decrease is stated with “-“) | 364,806,597.05 | 364,806,597.05 | |||||||||
(I) Total comprehensive income | 364,806,597.05 | 364,806,597.05 | |||||||||
(II) Shareholders ‘contributions and reduction in capital | |||||||||||
1. Capital contributions by shareholders |
2. Capital contributed by other equity instruments holders | |||||||||||
3. Amount of payment for shares counted to shareholders’ equity | |||||||||||
4. Others | |||||||||||
(III) Profit Distribution | |||||||||||
1. Transfer to surplus reserves | |||||||||||
2. Distributions to shareholders | |||||||||||
3. Others | |||||||||||
(IV) Internal carry-over of owners’ equity | |||||||||||
1. Capitalisation of capital reserves | |||||||||||
2. Capitalisation of surplus reserves | |||||||||||
3. Loss made up by surplus reserves | |||||||||||
4. Transfer of changes in the defined benefit plan to retained earnings | |||||||||||
5. Transfer of other comprehensive income to retained earnings | |||||||||||
6. Others | |||||||||||
(V) Special reserves | |||||||||||
1. Appropriation for the year | |||||||||||
2. Utilisation for the year | |||||||||||
(VI) Others | |||||||||||
IV. Balance at end of year | 338,660,003.00 | 294,981,361.11 | 189,936,412.55 | 1,091,782,154.36 | 1,915,359,931.02 |
Legal representative: Zhang Jian Financial controller: Zheng Hui Accounting supervisor: Zheng Hui
III. Company Profile
1. About the Company
"√ Applicable" "□ Not applicable"
AIMA Technology Group Co., LTD. is a joint stock limited company registered in Tianjin, People'sRepublic of China. It was established on September 27, 1999. The Company is headquartered at 5 AimaRoad, Jinghai Economic Development Zone, Tianjin.
The Company's principal businesses: manufacture, R&D, machining and assemble of bicycles, electricbicycles, electric tricycles, electric four-wheeled vehicles (excluding automobiles), sightseeing vehicles(excluding automobiles), off-highway recreational vehicles (excluding automobiles), sports equipment andits parts and components; sales and after-sales services of bicycles, electric bicycles, electric motorcyclesand their parts and components; wholesale and retail of hardware and electrical equipment, chemicalproducts (except hazardous chemicals and precursor chemicals); import and export of goods andtechnologies; supply of consulting services in business Information, financial information, businessmanagement, technology, marketing planning and other related consulting services; R&D, foundationconstruction, installation, testing and trial-run, maintenance and technical services of public bicycleintelligent management systems; housing leasing; property management services. (Unless otherwisespecified in the laws, administrative rules and regulations)(Businesses subject to approval in accordancewith the law must not be carried out until being approved by the competent department.)
On July 31, 2009, Zhang Jian, Qiao Baogang, Yu Lin, Liu Jianxin, Han Jianhua, Li Shishuang andPeng Wei, shareholders of Tianjin Taimei Vehicle Co., Ltd. (the predecessor of the Company, hereinafterreferred to as "Tianjin Taimei") jointly signed the “Tianjin Aima Technology Co., Ltd. Founder Agreement",held its founding conference on August 26, 2009, signed the "Articles of Tianjin Aima Technology Co., Ltd."on August 28, 2009, and established a joint stock limited company as a whole and renewed with thecompany name as Tianjin Aima Technology Co., Ltd. (the Company's former name). The amount of theregistered capital and share capital of Tianjin Aima Technology Co., Ltd. was both RMB 50,000,000.00 atthe time of establishment. The number of shares held by each founder and the shareholding ratio were asfollows:
No. | Name of the founder | Number of shares held/Number of shares converted (in 10,000 shares) | Amount contributed (in RMB10,000) | Shareholding proportion (%) |
1 | Zhang Jian | 4,100.00 | 4,100.00 | 82.00 |
2 | Qiao Baogang | 200.00 | 200.00 | 4.00 |
3 | Yu Lin | 200.00 | 200.00 | 4.00 |
4 | Liu Jianxin | 150.00 | 150.00 | 3.00 |
5 | Han Jianhua | 150.00 | 150.00 | 3.00 |
6 | Li Shishuang | 100.00 | 100.00 | 2.00 |
7 | Peng Wei | 100.00 | 100.00 | 2.00 |
Total | 5,000.00 | 5,000.00 | 100.00 |
After the previous changes, up to January 1, 2017, the Company’s registered capital increased to RMB150,000,000.00.
On October 31, 2017, through the resolution of the 5th extraordinary general meeting of the Company,the Company increased its capital by 11,266,668.00 shares, and increased its registered capital by RMB11,266,668.00. The four new shareholders (collectively referred to as “Shareholders of Private Placements")subscribed the shares. Where, CITIC Securities Investment Co., Ltd. subscribed RMB 4,000,000.00,GoldStone Zhiyu Equity Investment (Hangzhou) Partnership (Limited Partnership) subscribed RMB3,933,334.00, and GoldStone Haofeng Equity Investment (Hangzhou) Partnership (Limited Partnership)subscribed RMB 1,666,667.00, and Three Gorges GoldStone (Shenzhen) Equity Investment FundPartnership (Limited Partnership) subscribed RMB 1,666,667.00. The registered capital and capital stockafter the said private placement amounted to RMB 161,266,668.00.
On November 28, 2017, through the resolution of the Company's sixth extraordinary general meetingin 2017, with the Company's total share capital of 161,226,688.00 shares as the base, the Companycapitalized its capital reserves to all shareholders at the rate of 11 shares for every 10 shares, a privateplacement and the ratio of 11 shares for every 10 shares was transferred to all shareholders by capitalreserves. Share capital and a total of 177,393,335.00 shares were capitalized. After the said capitalization,the capital stock amounted to RMB 338,660,003.00 and the amount of both registered capital and sharecapital was RMB 338,660,003.00.
On December 25, 2017, Mr. Zhang Jian, the controlling shareholder of the Company, transferred16,933,000.00 shares of the Company to Changxing Dingai Investment Management Partnership (LimitedPartnership). The registered capital and capital stock after the change amounted to RMB 338,660,003.00.On May 20, 2021, with the approval of the China Securities Regulatory Commission by the “OfficialReply on Approving the Initial Public Offering of AIMA Technology Group Co,. LTD.” (Zheng Jian Xu Ke[2021] No. 1775), the Company publicly issued RMB common shares no more than 65,000,000 shares witha par value of RMB 1.00 per share. On June 9, 2021, the Company received the total amount of theproceeds raised from the public offering of RMB 1,810,900,000.00. The net amount was RMB1,810,900,000.00 after the professional service fee of legal, audit, capital verification and other issuancerelated expenses and taxes deducted, with RMB 65,000,000.00 recorded in “share capital”, and RMB1,615,863,800.00 recorded in “capital reserves - share capital premium”. As of June 9, 2021, theCompany’s share capital after the change amounted to RMB 403,660,003.00, which equaled to the latestregistered capital, with the corresponding accounting treatment completed. For the detail of the registeredcapital and share capital, please refer to "Section 10 VII. 53 Share capital".The Company's controlling shareholder is Mr. Zhang Jian, a natural person.The financial statements were approved and issued through the resolution of the Board of Directorsdated April 14, 2022.
2. Scope of Consolidated Financial Statements
"√ Applicable" "□ Not applicable"
For the detail of the scope of the consolidated financial statements and the changes, please refer to“Section 10: Changes in the Scope of Consolidation” and “Section 10: IX. Interests in Other Entities”.IV. Basis for Preparation of Financial Statements
1. Preparation Basis
These financial statements have been prepared in accordance with Accounting Standards for BusinessEnterprises - Basic Standard and specific accounting standards, implementation guidance, interpretationsand other relevant provisions issued subsequently by the Ministry of Finance (the “MOF”) (collectivelyreferred to as “ASBEs”).
2. Operation on Going Concern Basis
"√ Applicable" "□ Not applicable"
The financial statements of the Company have been prepared on going concern basis. The financialstatements have been prepared under the historical cost convention, except for certain financialinstruments. If the assets are impaired, corresponding provisions for impairment shall be made accordingto relevant requirements.V. Significant Accounting Policies and EstimatesPresentation on specific accounting policies and accounting estimates"√ Applicable" "□ Not applicable"
The Company has formulated specific accounting policies and accounting estimates based on thepractical production and operation characteristics, which are mainly reflected in the provision for bad debtsof receivables, inventory valuation methods, depreciation and amortization of investment properties,depreciation of fixed assets, amortization of intangible assets, amortization of long-term prepaid expenses,etc.
1. Statement on complying with the accounting standard for business enterprises
The Company declares that the financial statements prepared by the Company comply withrequirements of the enterprise accounting standards, truly and completely reflect the concerned information,including the Company’s financial position as at December 31, 2021 and results of their operations, cashflow, etc. of the year then ended.
2. Accounting period
The accounting year of the Group is a calendar year, i.e., from 1 January to 31 December of each year.
3. Business Cycle
"√ Applicable" "□ Not applicable"
The Company takes 12 months as a business cycle.
4. Functional currency for bookkeeping
The Company’s functional and presentation currency is RMB. The currency unit is RMB Yuan unlessotherwise stated.
5.The accounting treatment on business consolidation under the common control and not under
the common control"√ Applicable" "□ Not applicable"Business combinations are classified into business combinations involving entities under commoncontrol and business combinations not involving entities under common control.
(1) Business combinations involving entities under common control
A business combination involving entities under common control is a business combination in whichall of the combining entities are ultimately controlled by the same party or parties both before and after thecombination, and that control is not transitory. In a business combination involving entities under commoncontrol, the entity that, at the combination date, obtains control of another combining entity is the absorbingentity, while that other combining entity is the entity being absorbed. The combination date is the date onwhich the absorbing entity effectively obtains control on the entity being absorbed.The assets and liabilities (including goodwill arising from the ultimate controlling party’s acquisition ofthe entity being absorbed) that are obtained by the absorbing entity in a business combination involvingentities under common control shall be measured on the basis of their carrying amounts in the financialstatements of the ultimate controlling party at the combination date. The difference between the carryingamount of the net assets obtained and the carrying amount of the consideration paid for the combination(or the aggregate face value of shares issued as consideration) shall be adjusted to capital premium undercapital reserves. If the capital premium is not sufficient to absorb the difference, any excess shall beadjusted against retained earnings.
(2) Business combinations not involving entities under common control
A business combination not involving entities under common control is a business combination inwhich all of the combining entities are not ultimately controlled by the same party or parties both before andafter the combination. In a business combination not involving entities under common control, the entitythat, on the acquisition date, obtains control of another combining entity is the acquirer, while that othercombining entity is the acquiree. The acquisition date is the date on which the acquirer effectively obtainscontrol of the acquiree.
The acquirer shall measure the acquiree’s identifiable assets, liabilities and contingent liabilitiesacquired in the business combination at their fair values on the acquisition date.
Goodwill is initially recognised and measured at cost, being the excess of the aggregate of the fairvalue of the consideration transferred (or the fair value of the equity securities issued) and any fair value ofthe Group’s previously held equity interest in the acquiree over the Group’s interest in the fair value of theacquiree’s net identifiable assets. After initial recognition, goodwill is measured at cost less anyaccumulated impairment losses. Where the aggregate of the fair value of the consideration transferred(or the fair value of the equity securities issued) and any fair value of the Group’s previously held equityinterest in the acquiree is lower than the Group’s interest in the fair value of the acquiree’s net identifiableassets, the Group reassesses the measurement of the fair value of the acquiree’s identifiable assets,liabilities and contingent liabilities and the fair value of the consideration transferred (or the fair value of theequity securities issued), together with the fair value of the Group’s previously held equity interest in theacquiree. If after that reassessment, the aggregate of the fair value of the consideration transferred (orthe fair value of the equity securities issued) and the Group’s previously held equity interest in the acquireeis still lower than the Group’s interest in the fair value of the acquiree’s net identifiable assets, the Grouprecognises the remaining difference in profit or loss.
6. Consolidated financial statements
"√ Applicable" "□ Not applicable"
The scope of the consolidated financial statements, which include the financial statements of theCompany and all of its subsidiaries, is determined on the basis of control. A subsidiary is an entity that iscontrolled by the Company (such as an enterprise, a deemed separate entity, or a structured entitycontrolled by the Company).
In the preparation of the consolidated financial statements, the financial statements of subsidiaries areprepared for the same accounting year as the Company, using consistent accounting policies. All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions betweenmembers of the Group are eliminated in full on consolidation.
Where the loss for the current period attributable to non-controlling interests of a subsidiary exceedsthe non-controlling interests of the opening balance of equity of the subsidiary, the excess shall still beallocated against the non-controlling interests.
For subsidiaries acquired through business combinations not involving entities under common control,the financial performance and cash flows of the acquiree shall be consolidated from the date on which theGroup obtains control, and continue to be consolidated until the date such control ceases. While preparingthe consolidated financial statements, the Group shall adjust the subsidiary’s financial statements, on the
basis of the fair values of the identifiable assets, liabilities and contingent liabilities recognised on theacquisition date.For subsidiaries acquired through business combinations involving entities under common control, thefinancial performance and cash flows of the entity being absorbed shall be consolidated from the beginningof the period in which the combination occurs. While preparing the comparative financial statements,adjustments are made to related items in the financial statements for the prior period as if the reportingentity after the combination has been in existence since the date the ultimate controlling party first obtainedthe control.
The Group reassesses whether or not it controls an investee if any change in facts and circumstancesindicates that there are changes to one or more of the three elements of control.A change in the non-controlling interests, without a loss of control, is accounted for as an equitytransaction.
7. Classification of joint arrangement and joint operation
"√ Applicable" "□ Not applicable"
A joint arrangement is classified as either a joint operation or a joint venture. A joint operation is ajoint arrangement whereby the joint operators have rights to the assets, and obligations for the liabilities,relating to the arrangement. A joint venture is a joint arrangement whereby the joint operators have rightsto the net assets of the arrangement.
A joint operator recognises the following items in relation to its interest in a joint operation: its solely-held assets, and its share of any assets held jointly; its solely-assumed liabilities, and its share of anyliabilities incurred jointly; its revenue from the sale of its share of the output arising from the joint operation;its share of the revenue from the sale of the output by the joint operation; its solely-incurred expenses, andits share of any expenses incurred jointly.
8. Cash and cash equivalents
Cash comprises the Group’s cash on hand and bank deposits that can be readily withdrawn on demand.Cash equivalents are short-term, highly liquid investments that are readily convertible into known amountsof cash, and are subject to an insignificant risk of changes in value.
9. Foreign currency transactions and foreign currency translation
"√ Applicable" "□ Not applicable"
The Group translates foreign currency transactions into its functional currency.
Foreign currency transactions are initially recorded, on initial recognition in the functional currencyusing average exchange rates for the period in which the transactions occur. Monetary items denominatedin foreign currencies are translated at the spot exchange rates ruling at the balance sheet date.Differences arising on settlement or translation of monetary items are recognised in profit or loss, with theexception of those relating to foreign currency borrowings specifically for the construction and acquisitionof qualifying assets, which are capitalised in accordance with the guidance for capitalisation of borrowingcosts. Non-monetary items that are measured in terms of historical cost in a foreign currency are translatedusing the exchange rates at the dates of the initial transactions, and the amount denominated in thefunctional currency is not changed. Non-monetary items measured at fair value in a foreign currency aretranslated using the exchange rates at the date when the fair value was measured. The resultingexchange differences are recognised in profit or loss or other comprehensive income depending on thenature of the non-monetary items.
Foreign currency cash flows are translated using the average exchange rates for the period duringwhich the cash flows occur. The effect of exchange rate changes on cash is separately presented as anadjustment item in the statement of cash flows.
10. Financial instruments
"√ Applicable" "□ Not applicable"
A financial instrument is any contract that gives rise to a financial asset of one entity and a financialliability or equity instrument of another entity.
(1) Recognition and derecognition
The Group recognises a financial asset or a financial liability when it becomes a party to the contractualprovisions of a financial instrument.
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financialassets) is primarily derecognised (i.e., removed from the Group’s consolidated balance sheet) when:
1) the rights to receive cash flows from the financial asset have expired; or
2) the Group has transferred its rights to receive cash flows from the financial asset, or has assumedan obligation to pay the received cash flows in full without material delay to a third party under a “pass-through” arrangement; and either (i) has transferred substantially all the risks and rewards of the financialasset, or (ii) has neither transferred nor retained substantially all the risks and rewards of the asset, but hastransferred control of the financial asset.
A financial liability is derecognised when the obligation under the liability is discharged or cancelled,or expires. When an existing financial liability is replaced by another from the same lender on substantiallydifferent terms, or the terms of an existing liability are substantially modified, such an exchange ormodification is treated as a derecognition of the original liability and a recognition of a new liability, and thedifference between the respective carrying amounts is recognised in profit or loss.Regular way purchases and sales of financial assets are recognised and derecognised using tradedate accounting. Regular way purchases or sales are purchases or sales of financial assets that requiredelivery within the period generally established by regulation or convention in the marketplace. The tradedate is the date that the Group committed to purchase or sell a financial asset.
(2) Classification and measurement of financial assets
The classification of financial assets at initial recognition depends on the financial asset’s contractualcash flow characteristics and the Group’s business model for managing them: financial assets at fair valuethrough profit or loss, financial assets at amortised cost and financial assets at fair value through othercomprehensive income. Financial assets are measured at fair value on initial recognition, but accountsreceivable or notes receivable arising from the sale of goods or rendering of services that do not containsignificant financing components or for which the Group has applied the practical expedient of not adjustingthe effect of a significant financing component due within one year, are initially measured at the transactionprice.
For financial assets at fair value through profit or loss, relevant transaction costs are directly recognisedin profit or loss, and transaction costs relating to other financial assets are included in the initial recognitionamounts.
The subsequent measurement of financial assets depends on their classification as follows:
1) Debt investments measured at amortised cost
The Group measures financial assets at amortised cost if both of the following conditions are met: thefinancial asset is held within a business model with the objective to hold financial assets in order to collectcontractual cash flows; the contractual terms of the financial asset give rise on specified dates to cash flowsthat are solely payments of principal and interest on the principal amount outstanding. Financial assetsat amortised cost are subsequently measured using the effective interest method and are subject toimpairment. Gains and losses are recognised in profit or loss when the asset is derecognised, modifiedor impaired. Such financial assets mainly include currency funds, notes receivable, accounts receivableand other receivables.
2) Debt investments at fair value through other comprehensive income
The Group measures debt investments at fair value through other comprehensive income if both ofthe following conditions are met: the financial asset is held within a business model with the objective ofboth holding to collect contractual cash flows and selling; the contractual terms of the financial asset giverise on specified dates to cash flows that are solely payments of principal and interest on the principalamount outstanding. Interest income is recognised using the effective interest method. The interestincome, impairment losses and foreign exchange revaluation are recognised in profit or loss. Theremaining fair value changes are recognised in other comprehensive income. Upon derecognition, thecumulative fair value change recognised in other comprehensive income is recycled to profit or loss. Suchfinancial assets are reported as other creditor's rights investments, other creditor's rights investments thatmature within one year as of the balance sheet date are reported as non-current assets that mature withinone year, and other creditor's rights investments whose original maturity is within one year are reported asother current assets.
3) Financial assets at fair value through profit or loss
The financial assets other than the above financial assets measured at amortised cost and financialassets at fair value through other comprehensive income are classified as financial assets at fair valuethrough profit or loss. Such financial assets are subsequently measured at fair value with net changes infair value recognised in profit or loss. Such financial assets are presented as held-for-trading financialassets, and those with maturity more than one year from the balance sheet date and expected to be heldfor more than one year are presented as other non-current financial assets.
(3) Classification and measurement of financial liabilities
The financial liabilities of the Company are classified as: other financial liabilities related transactioncosts are included in the initial recognition amount.
The subsequent measurement of financial liabilities depends on their classification:
Other financial liabilities: The effective interest method is applied for this category of financial liabilitiesand the subsequent measurement is conducted according to the amortized cost.
(4) Impairment of financial instruments
Based on the expected credit losses (“ECLs”), the Group recognises an allowance for ECLs for thefinancial assets measured at amortised cost, debt investments at fair value through other comprehensiveincome.
For accounts receivable and contract assets that do not contain a significant financing component, theGroup applies the simplified approach to recognise a loss allowance based on lifetime ECLs.
Except for financial assets which apply the simplified approach as mentioned above, other financialassets, [loan commitments] and [financial guarantee contracts], the Group assesses whether the credit riskhas increased significantly since initial recognition at each balance sheet date. If the credit risk has notincreased significantly since initial recognition (stage 1), the loss allowance is measured at an amount equal
to 12-month ECLs by the Group and the interest income is calculated according to the carrying amount andthe effective interest rate; if the credit risk has increased significantly since initial recognition but are notcredit-impaired (stage 2), the loss allowance is measured at an amount equal to lifetime ECLs by the Groupand the interest income is calculated according to the carrying amount and the effective interest rate; ifsuch financial assets are credit-impaired after initial recognition (stage 3), the loss allowance is measuredat an amount equal to lifetime ECLs by the Group and the interest income is calculated according to theamortised cost and the effective interest rate. For financial instruments with lower credit risk on the balancesheet date, the Company assumes that its credit risk has not increased significantly since the initialrecognition.The Group assesses the expected credit losses of financial instruments based on individual items andportfolios. The Group has considered the credit risk characteristics of different customers and assessedthe expected credit losses of receivables based on the age combination.The Group considers reasonable and supportable information about past events, current conditionsand forecasts of future economic conditions when assessing expected credit losses.For the Group's judgment criteria for significant increase in credit risk, the definition of credit-impairedassets, and the assumption for the measurement of expected credit losses, please refer to “Section 10 X.Risks Related to Financial Instruments”.When the Group no longer reasonably expects to collect all or part of the contractual cash flows of thefinancial asset, the Group directly writes down the carrying amount of the financial asset.
(5) Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the balance sheetif there is a currently enforceable legal right to offset the recognised amounts; and there is an intention tosettle on a net basis, or to realise the assets and settle the liabilities simultaneously.
(6) Financial guarantee contract
Financial guarantee contracts are those contracts that require a payment to be made by the issuer toreimburse the holder for a loss it incurs because the specified debtor fails to make a payment when due inaccordance with the terms of a debt instrument. Financial guarantee contracts are measured, on initialrecognition, at fair value. For financial guarantee contracts that are not designated as financial liabilitiesat fair value through profit or loss, they are, after initial recognition, subsequently measured at the higherof: (i) the amount of provisions for ECLs at the balance sheet date, and (ii) the amount initially recognisedless the cumulative amortisation recognised in accordance with the guidance for revenue recognition.
(7) Transfer of Financial Assets
A financial asset is derecognised when the Group has transferred substantially all the risks andrewards of the asset to the transferee. A financial asset is not derecognised when the Group retainssubstantially all the risks and rewards of the financial asset.
When the Group has neither transferred nor retained substantially all the risks and rewards of thefinancial asset, it either (i) derecognises the financial asset and recognises the assets and liabilities createdin the transfer when it has not retained control of the asset; or (ii) continues to recognise the transferredasset to the extent of the Group's continuing involvement, in which case, the Group also recognises anassociated liability.
Continuing involvement that takes the form of a guarantee over the transferred financial asset ismeasured at the lower of the original carrying amount of the financial asset and the guarantee amount.The guarantee amount is the maximum amount of consideration that the Group could be required to repay.
11. Notes receivable
Method for determination and accounting treatment of the expected credit loss of other receivables"□ Applicable " "√ Not applicable"
12. Accounts receivable
Method for determination and accounting treatment of the expected credit loss of other receivables"√ Applicable" "□ Not applicable"
For details, please refer to “10. Financial Instruments" and "V. 43. Other Important Accounting Policiesand Accounting Estimates" of "V. Significant Accounting Policies and Accounting Estimates" in "Section X.Financial Report".
13.Receivables financing
"√ Applicable" "□ Not applicable"
For details, please refer to “10. Financial Instruments" and "V. 43. Other Important Accounting Policiesand Accounting Estimates" of "V. Significant Accounting Policies and Accounting Estimates" in "Section X.Financial Report".
14. Other receivables
Method for determination and accounting treatment of the expected credit loss of other receivables"√ Applicable" "□ Not applicable"For details, please refer to “10. Financial Instruments" and "V. 43. Other Important Accounting Policiesand Accounting Estimates" of "V. Significant Accounting Policies and Accounting Estimates" in "Section X.Financial Report".
15. Inventories
"√ Applicable" "□ Not applicable"The Company’s inventories consist of raw materials, work-in-process and finished goods.Inventories are initially carried at cost. Cost of inventories comprises all costs of purchase, costs ofconversion and other costs. For inventories delivered, the actual costs are determined on the weightedaverage basis. Turnover materials include low value consumables and packing materials, which are on theimmediate write-off basis.The Company adopts the perpetual inventory system.At the balance sheet date, inventories are stated at the lower of cost and net realisable value. Theinventories are written down below cost to net realisable value and the write-down is recognised in profit orloss if the cost is higher than the net realisable value. When the circumstances that previously causedthe inventories to be written down below cost no longer exist, in which case the net realisable value ofinventories becomes higher than the carrying amount, the amount of the write-down is reversed. Thereversal is limited to the amount of the original write-down, and is recognised in profit or loss.
Net realisable value is the estimated selling price in the ordinary course of business less the estimatedcosts of completion and the estimated costs necessary to make the sale and relevant taxes. Raw materialsand finished goods are written down item by item.
16. Contract assets
(1). Recognition method and impairment test method of contract assets
"□ Applicable" "√ Not applicable"
(2) Methods for determination and accounting treatment of the expected credit loss of contractassets"□ Applicable" "√ Not applicable"
17. Held-for-sale assets
"□ Applicable" "√ Not applicable"
18. Debt investment
(1). Methods for determination and accounting treatment of the expected credit loss of debtinvestment"□ Applicable" "√ Not applicable"
19. Other debt investment
(1). Methods for determination and accounting treatment of the expected credit loss of other debtinvestment"□ Applicable" "√ Not applicable"
20. Long-term receivables
(1). Method for determination and accounting treatment of the expected credit loss of long-termreceivables"□ Applicable" "√ Not applicable"
21. Long-term equity investments
"√ Applicable" "□ Not applicable"
Long-term equity investments include equity investments in subsidiaries, joint ventures and associates.
A long-term equity investment is initially measured at its initial investment cost on acquisition. Theinitial cost of a long-term equity investment acquired through a business combination involving enterprisesunder common control is the Company’s share of the carrying amount of the subsidiary’s equity in theconsolidated financial statements of the ultimate controlling party at the combination date. The differencebetween the initial investment cost and the carrying amounts of the consideration given is adjusted to thecapital premium in the capital reserve, with any excess adjusted to retained earnings. For OCI before thecombination date, when disposing of the investment, the same basis as the investee's direct disposal ofrelevant assets or liabilities shall be adopted. Shareholders' equity recognized due to changes inshareholders' equity other than net profit or loss, OCI and profit distribution of the investee shall betransferred to the profit or loss upon the disposal of the investment. Those that are still long-term equityinvestments after disposal are carried forward on a pro-rata basis, and those that are converted intofinancial instruments after disposal are carried forward in full.For a long-term equity investment obtained through a business combination not involving enterprisesunder common control, the initial cost comprises the aggregate of the fair value of assets transferred,liabilities incurred or assumed, and equity securities issued by the Company, in exchange for control of theacquiree. For a long-term equity investment obtained through a business combination not involvingenterprises under common control and achieved in stages, the initial cost comprises the carrying value ofthe previously-held equity investment in the acquiree immediately before the acquisition date, and theadditional investment cost at the acquisition date. OCI held before the acquisition date and recognized bythe use of the equity method shall be accounted for when the investment is disposed of on the same basisas the investee directly disposes of the relevant assets or liabilities. Shareholders' equity recognized as aresult of changes in shareholders' equity other than net profit or loss, OCI and profit distribution of theinvestee is transferred to profit or loss upon the disposal of the investment. Those that remain long-termequity investments after disposal are carried forward on a pro-rata basis, while those that are convertedinto financial instruments after disposal are carried forward in full. For long-term equity investmentsobtained by means other than business combination, the initial investment cost is determined according tothe following method: for those obtained by paying cash, the actual purchase price paid and the expenses,taxes and other necessary costs directly related to the acquisition of long-term equity investments shall beused. Expenses are taken as the initial investment cost. For those obtained by issuing equity securities,the fair value of the issued equity securities is taken as the initial investment cost.For a long-term equity investment where the Company can exercise control over the investee, thelong-term investment is accounted for using the cost method in the Company’s individual financialstatements. Control is achieved when the Group is exposed, or has rights, to variable returns from itsinvolvement with the investee and has the ability to affect those returns through its power over the investee.Under the cost method, the long-term equity investment is measured at its initial investment cost.When additional investment is made or the investment is recouped, the cost of long-term equity investmentis adjusted accordingly. Cash dividends or profit distributions declared by the investee are recognised asinvestment income in profit or loss.
The equity method is adopted when the Group has joint control, or exercises significant influence overthe investee. Joint control is the contractually agreed sharing of control of an arrangement, which existsonly when decisions about the relevant activities require the unanimous consent of the parties sharingcontrol. Significant influence is the power to participate in the financial and operating policy decisions of theinvestee, but is not control or joint control with other parties over those policies.
Under the equity method, where the initial investment cost of a long-term equity investment exceedsthe Group’s interest in the fair value of the investee’s identifiable net assets at the acquisition date, noadjustment is made to the initial investment cost. Where the initial investment cost is less than the Group’sinterest in the fair values of the investee’s identifiable net assets at the acquisition date, the difference ischarged to profit or loss, and the cost of the long-term equity investment is adjusted accordingly.
Under the equity method, after it has acquired a long-term equity investment, the Group recognises itsshare of the investee’s profit or loss, as well as its share of the investee’s other comprehensive income, asinvestment income or loss and other comprehensive income, and adjusts the carrying amount of theinvestment accordingly. The Group recognises its share of the investee’s profit or loss after makingappropriate adjustments to the investee’s profit or loss based on the fair value of the investee’s identifiableassets at the acquisition date, using the Group’s accounting policies and periods. Unrealised profits andlosses from transactions with its joint ventures and associates are eliminated to the extent of the Group’sinvestments in the associates or joint ventures (except for assets that constitute a business) (However, anyloss arising from such transactions which are attributable to an impairment loss shall be recognised at itsentirety). For any long-term equity investment differences (debit side) arising from investments in jointventures and associates held before the first-time adoption of ASBEs, the investment income or loss isrecognised after deducting the debit balance to be amortised over the remaining period on a straight-linebasis. The carrying amount of the investment is reduced based on the Group’s share of any profitdistributions or cash dividends declared by the investee. The Group’s share of losses of the investee isrecognised to the extent that the carrying amount of the investment together with any long-term intereststhat in substance form part of its net investment in the investee is reduced to zero, except that the Grouphas the obligations to assume further losses. The Group’s share of the investee’s equity changes, otherthan those arising from the investee’s profit or loss, other comprehensive income or profit distribution, is
recognised in the Group’s equity, and the carrying amount of the long-term equity investment is adjustedaccordingly.Upon disposal of a long-term equity investment, the difference between the proceeds actually receivedand the carrying amount is recognised in profit or loss. For a long-term equity investment accounted forusing the equity method, when the Group discontinues using the equity method due to disposal, all amountspreviously recognised in other comprehensive income are accounted for on the same basis as would havebeen required if the investee had directly disposed of the related assets or liabilities. Equity previouslyrecognised resulting from the investee’s equity changes other than profit or loss, other comprehensiveincome and profit distribution is reclassified to profit or loss in its entirety.
When the Group continues to use the equity method, the amounts previously recognised in othercomprehensive income are accounted for on the same basis as would have been required if the investeehad directly disposed of the related assets or liabilities and reclassified to profit or loss on a pro-rata basis.Equity previously recognised resulting from the investee’s equity changes other than profit or loss, othercomprehensive income and profit distribution is reclassified to profit or loss on a pro-rata basis.
22. Investment properties
(1) If the cost measurement model is used,
Depreciation or amortization method
Investment properties are properties held to earn rental income and/or for capital appreciation.Investment properties include land use rights leased out, land use rights held for transfer upon capitalappreciation, and buildings leased out.
An investment property is measured initially at cost. If the economic benefits relating to an investmentproperty will probably flow in and the cost can be reliably measured, subsequent costs incurred for theproperty are included in the cost of the investment property. Otherwise, subsequent costs are recognisedin profit or loss as incurred.
The Group uses the cost model for the subsequent measurement of its investment properties. For thedepreciation method of houses and buildings in investment real estate, please refer to the relevant contentof “Section 10 V. 23 Fixed Assets”, and for the amortization method of land use rights in investment realestate, please refer to “Section 10 V. 29 Intangible Assets".
23. Fixed asset
(1) Recognition of fixed assets
"√ Applicable" "□ Not applicable"
A fixed asset is recognised only when the economic benefits associated with the asset will probablyflow into the Group and the cost of the asset can be measured reliably. Subsequent expenditures incurredfor a fixed asset that meets the recognition criteria shall be included in the cost of the fixed asset, and thecarrying amount of the component of the fixed asset that is replaced shall be derecognised. Otherwise,such expenditures are recognised in profit or loss as incurred.
The fixed assets are initially measured at the cost. The cost of a purchased fixed asset comprises thepurchase price, relevant taxes and any directly attributable expenditure for bringing the asset to workingcondition for its intended use.
(2) Depreciation methods
"√ Applicable" "□ Not applicable"
Categories | Depreciation method | Useful life (year) | Residual rate | Annual depreciation rate |
Buildings | Straight-line method | 20 | 5% | 4.75% |
Machinery and equipment | Straight-line method | 10 | 5% | 9.50% |
Office equipment | Straight-line method | 5 | 5% | 19.00% |
Vehicles | Straight-line method | 4 | 5% | 23.75% |
Electronic equipment | Straight-line method | 3 | 5% | 31.67% |
Production tools | Straight-line method | 3 | 5% | 31.67% |
The Group reviews the useful life and estimated net residual value of a fixed asset and the depreciationmethod applied at least at each year end, and make adjustments if necessary.
(3) Basis for recognizing the fixed assets under financing lease, pricing and depreciation methods"□ Applicable" "√ Not applicable"
24. Construction in progress
"√ Applicable" "□ Not applicable"
The cost of construction in progress is determined according to the actual expenditures incurred forthe construction, including all necessary construction expenditures incurred during the construction periodand other relevant expenditures. An item of construction in progress is transferred to fixed assets, whenthe asset is ready for its intended use.
25. Borrowing costs
"□ Applicable" "√ Not applicable"
26. Biological assets
"□ Applicable" "√ Not applicable"
27. Oil and gas assets
"□ Applicable" "√ Not applicable"
28. Right-of-use assets
"√ Applicable" "□ Not applicable"
The Group’s right-of-use assets include plant and buildings.
At the commencement date, the Group recognises the right of using leased assets within the leaseterm as right-of-use assets, the amount of which includes: (1) the amount of the initial measurement of thelease liability; (2) any lease payments made at or before the commencement date, less any lease incentivesreceived (if applicable); (3) any initial direct costs incurred; (4) an estimate of costs to be incurred by thelessee in dismantling and removing the underlying asset, restoring the site on which it is located or restoringthe underlying asset to the condition required by the terms and conditions of the lease. The Groupdepreciates right-of-use assets using the straight-line method. If the lease transfers ownership of theunderlying assets to the lessee by the end of the lease term or if the cost of the right-of-use asset reflectsthat the lessee will exercise a purchase option, the lessee shall depreciate the right-of-use asset from thecommencement date to the end of the useful life of the underlying asset. Otherwise, the lessee shalldepreciate the right-of-use asset from the commencement date to the earlier of the end of the useful life ofthe right-of-use asset and the end of the lease term.
The Group remeasures the lease liability at the present value of the changed lease payments andadjusts the carrying amount of the right-of-use assets accordingly, when the carrying amount of the right-of-use asset is reduced to zero, and there is a further reduction in the measurement of the lease liability,the Group recognises the remaining amount of the remeasurement in profit or loss.
29. Intangible assets
(1). Pricing Method, Service Life and Impairment Test
"√ Applicable" "□ Not applicable"
An intangible asset shall be recognised only when it is probable that the economic benefits associatedwith the asset will flow to the Group and the cost of the asset can be measured reliably. Intangible assetsare measured initially at cost. However, intangible assets acquired in a business combination notinvolving entities under common control with a fair value that can be measured reliably are recognisedseparately as intangible assets and initially measured at the fair value at the date of acquisition.
The useful life of an intangible asset is determined according to the period over which it is expected togenerate economic benefits for the Group. An intangible asset is regarded as having an indefinite usefullife when there is no foreseeable limit to the period over which the asset is expected to generate economicbenefits for the Group.
Land use rights that are purchased by the Group are accounted for as intangible assets. An intangibleasset with a finite useful life is amortised using the straight-line method over its useful life. For an intangibleasset with a finite useful life, the Group reviews the useful life and amortisation method at least at eachyear end and makes adjustment if necessary.
The useful life of each intangible asset is as follows:
Items | Useful Life |
Land use rights | 50 years |
Software | 5-10 years |
Trademarks | 5-10 years |
(2). Accounting policy for internal research and development expenditure"□ Applicable" "√ Not applicable"
30. Impairment of long term assets
"√ Applicable" "□ Not applicable"The Group determines the impairment of assets other than impairment of inventories, contract assetsand assets related to contract costs, deferred income tax and financial assets, using the following methods:
The Group assesses at the balance sheet date whether there is any indication that an asset may beimpaired. If any indication exists that an asset may be impaired, the Group estimates the recoverableamount of the asset and performs impairment testing. Goodwill arising from a business combination andan intangible asset with an indefinite useful life are tested for impairment at least at each year end,irrespective of whether there is any indication that the asset may be impaired. Intangible assets that havenot been ready for their intended use are tested for impairment each year.The recoverable amount of an asset is the higher of its fair value less costs to sell and the presentvalue of the future cash flows expected to be derived from the asset. The Group estimates the recoverableamount on an individual basis unless it is not possible to estimate the recoverable amount of the individualasset, in which case the recoverable amount is determined for the asset group to which the asset belongs.Identification of an asset group is based on whether major cash inflows generated by the asset group arelargely independent of the cash inflows from other assets or asset groups.
When the recoverable amount of an asset or asset group is less than its carrying amount, the carryingamount is reduced to the recoverable amount by the Group. The reduction in the carrying amount istreated as an impairment loss and recognised in profit or loss. A provision for impairment loss of the assetis recognised accordingly.
For the purpose of impairment testing, the carrying amount of goodwill acquired in a businesscombination is allocated from the acquisition date on a reasonable basis, to each of the related assetgroups unless it is impossible to allocate to the related asset groups, in which case it is allocated to eachof the related sets of asset groups. Each of the related asset groups or sets of asset groups is an assetgroup or a set of asset groups that is expected to benefit from the synergies of the business combinationand shall not be larger than a reportable segment determined by the Group.
When testing an asset group (a set of asset groups) to which goodwill has been allocated forimpairment, if there is any indication of impairment, the Group firstly tests the asset group (set of assetgroups), excluding the amount of goodwill allocated, for impairment, i.e., the Group determines andcompares the recoverable amount with the related carrying amount and recognises any impairment loss.After that, the Group tests the asset group (set of asset groups), including goodwill, for impairment, thecarrying amount of the related asset group (set of asset groups) is compared to its recoverable amount.If the carrying amount of the asset group (set of asset groups) is higher than its recoverable amount, theamount of the impairment loss is firstly used to reduce the carrying amount of the goodwill allocated to theasset group (set of asset groups), and then used to reduce the carrying amount of other assets (other thanthe goodwill) within the asset group (set of asset groups), on a pro-rata basis of the carrying amount ofeach asset.
Once the above impairment loss is recognised, it cannot be reversed in subsequent accounting periods.
31. Long term prepaid expenses
"√ Applicable" "□ Not applicable"Long-term expenses to be apportioned are amortized using the straight-line method, and the amortizationperiod is as follows:
Items | Amortization term |
Building decoration | 36 months |
Leasehold Improvement | 36 months |
Others | 24 to 60 months |
32. Contract liabilities
(1). Recognition of contract liabilities
"√ Applicable" "□ Not applicable"The Company presents contract liabilities in the balance sheet based on the relationship between theperformance of the contract obligations and the payment by the customer.
A contractual liability is an obligation to transfer goods or service to a customer for considerationreceived or receivable from the customer, such as money that a business has received before transferringthe promised goods or service.
33. Employee benefits
(1). Accounting treatment of short term salaries
"√ Applicable" "□ Not applicable"
Employee benefits refer to all forms of consideration or compensation [other than share-basedpayments] given by the Group in exchange for services rendered by employees or for termination ofemployment. Employee benefits include short-term employee benefits, post-employment benefits,termination benefits and other long-term employee benefits. Benefits given by the Group to an employee’sspouse, children and dependents, family members of deceased employees and other beneficiaries are alsoemployee benefits.
The Company recognizes the actual short-term remuneration as a liability during the accounting periodwhen employees provide services to the Group, and stated in the profit or loss or the cost of related assets.
(2). Accounting treatment of post-employment benefits
"√ Applicable" "□ Not applicable"
The employees of the Group participate in a pension scheme and unemployment insurance managedby the local government, the corresponding expenses shall be included in the cost of related assets orprofit or loss..
(3). Dismission benefits
"□ Applicable" "√ Not applicable"
(4). Other long term employees' benefits
"□ Applicable" "√ Not applicable"
34. Lease liabilities
"√ Applicable" "□ Not applicable"
At the commencement date of the lease, the Group measures the lease liability at the present valueof the lease payments that are not paid at that date, except for short-term leases and leases of low-valueassets. In calculating the present value of the lease payments, the Group uses the interest rate implicit inthe lease as the discount rate. If that rate cannot be readily determined, the Group uses the lessee’sincremental borrowing rate. The Group calculates the interest expenses of the lease liability in each periodduring the lease term using the constant periodic rate of interest, and recognises such interest expensesin profit or loss, except those in the costs of the related asset as required. Variable lease payments thatare not included in the measurement of the lease liabilities are recognised in profit or loss as incurred,except those in the costs of the related asset as required.
A lessee shall remeasure the lease liability by discounting the revised lease payments, if (a) there is achange in the actual fixed lease payments; (b) there is a change in the amounts expected to be payableunder a residual value guarantee; (c) there is a change in future lease payments resulting from a changein an index or a rate used to determine those payments; (d) there is a change in the assessment of anoption to purchase the underlying asset, to renew the lease or a change in the actual exercise of the option.
35. Provisions
"√ Applicable" "□ Not applicable"
An obligation related to a contingency shall be recognised by the Group as a provision when all of thefollowing conditions are satisfied, except for contingent considerations and contingent liabilities assumedin a business combination not involving entities under common control:
(1) the obligation is a present obligation of the Group;
(2) it is probable that an outflow of economic benefits from the Group will be required to settle theobligation; and
(3) a reliable estimate can be made of the amount of the obligation.
A provision is initially measured at the best estimate of the expenditure required to settle the relatedpresent obligation, taking into account factors pertaining to a contingency such as the risks, uncertaintiesand time value of money as a whole. Provisions are reviewed at each balance sheet date. Where thereis clear evidence that the carrying amount of a provision does not reflect the current best estimate, thecarrying amount is adjusted to the current best estimate.
36. Share-based payment
"√ Applicable" "□ Not applicable"
A share-based payment is classified as either an equity-settled share-based payment or a cash-settledshare-based payment. An equity-settled share-based payment is a transaction in which the Groupreceives services and uses shares or other equity instruments as consideration for settlement.
An equity-settled share-based payment in exchange for services received from employees ismeasured at the fair value of the equity instruments granted to the employees. If such equity-settledshare-based payment could vest immediately, related costs or expenses at an amount equal to the fairvalue on the grant date are recognised, with a corresponding increase in capital reserves; if such equity-settled share-based payment could not vest until the completion of services for a vesting period, or untilthe achievement of a specified performance condition, the Group at each balance sheet date during thevesting period recognises the services received for the current period as related costs and expenses, witha corresponding increase in capital reserves, at an amount equal to the fair value of the equity instrumentsat the grant date, based on the best estimate of the number of equity instruments expected to vest. Thefair value is determined using the market price.
For awards that do not ultimately vest because non-market performance and/or service conditionshave not been met, no expense is recognised. Where awards include a market or non-vesting condition,the transactions are treated as vesting irrespective of whether the market or non-vesting condition issatisfied, provided that all other performance and/or service conditions are satisfied.
Where the terms of an equity-settled share-based award are modified, as a minimum an expense isrecognised as if the terms had not been modified. In addition, an expense is recognised for anymodification that increases the total fair value of the share-based payments, or is otherwise beneficial tothe employee as measured at the date of modification.
Where an equity-settled share-based award is cancelled, it is treated as if it had vested on the date ofcancellation, and any expense not yet recognised for the award is recognised immediately. This includesany award where non-vesting conditions within the control of either the Group or the employee are not met.However, if a new award is substituted for the cancelled award, and is designated as a replacement on thedate that it is granted, the cancelled and new awards are treated as if they were a modification of theoriginal award.
37. Other financial instruments, such as preferred shares, perpetual bonds, etc."□ Applicable" "√ Not applicable"
38. Revenue
(1). Accounting policies used in revenue recognition and measurement
"√ Applicable" "□ Not applicable"
Revenue from contracts with customers is recognised when the Group has fulfilled its performanceobligations in the contracts, that is, when the customer obtains control of relevant goods or services.Control of relevant goods or services refers to the ability to direct the use of the goods, or the provision ofthe services, and obtain substantially all of the remaining benefits from the goods or services.
1) Contracts for the sale of goods
A contract for the sale of goods between the Group and the customer usually only includes theperformance obligation to transfer the xx goods. The revenue is recognised at xx point in time based onthe following indicators, which include: a present right to payment for goods, the transfer of significant risksand rewards of ownership of goods, the transfer of legal title to goods, the transfer of physical possessionof goods, the customer's acceptance of goods.
2)Contracts for the rendering of services
A contract for the rendering of services between the Company and the customer usually includes theperformance obligation of after-sales service guarantee. Because the customer simultaneously receivesand consumes the benefits provided by the Group's performance as the Group performs, the revenue isrecognised over time only if the Group can reasonably measure its progress towards the completesatisfaction of the performance obligation. The Company uses the straight-line method and determines theprogress of the services rendered on the basis of the time elapsed. If the progress towards the completesatisfaction of the performance obligation cannot be reasonably measured, but the Group expects torecover the costs incurred in satisfying the performance obligation, the revenue is recognised only to theextent of the costs incurred until such time that the Group can reasonably measure the progress towardsthe complete satisfaction of the performance obligation.
3) Variable consideration
Some of the Group's contracts with customers including arrangements of sales rebates result invariable consideration. The Group determines the best estimate of variable consideration by using theexpected value method or the most likely amount method. However, the transaction price includingvariable consideration is only to the extent that it is highly probable that a significant reversal in the amountof cumulative revenue recognised will not occur when the uncertainty associated with the variableconsideration is subsequently resolved.
4)Consideration payable to a customer
The Group accounts for the consideration payable to a customer as a reduction of the transaction price,and recognises the reduction of revenue when (or as) the later of the recognition of relevant revenue andthe payment (or promised payment) of the consideration to a customer, unless the payment to the customeris in exchange for a distinct good or service that the customer transfers to the Group.
5)Warranties
The Group provides a warranty in connection with the sale of a good in accordance with the contractand the relevant laws and regulations, etc. For an assurance-type warranty that provides the customer theassurance that the good complies with agreed-upon specifications. When assessing whether a service-type warranty provides a customer with a separate service in addition to the assurance that the goodcomplies with agreed-upon specifications, the Group considers whether the warranty is required by law,the length of the warranty coverage period and the nature of the tasks that the Group promises to perform,etc.
(2) Differences in accounting policies for revenue recognition caused by the adoption of different
business models for similar businesses"□ Applicable" "√ Not applicable"
39. Contract cost assets
"√ Applicable" "□ Not applicable"
The Group’s contract cost assets include the costs to obtain and fulfill a contract and are classified asinventories, other current assets and other non-current assets by liquidity.The Group recognises as an asset the incremental costs of obtaining a contract with a customer if theGroup expects to recover those costs, unless the amortisation period of the asset is one year or less.Other than the costs which are capitalised as inventories, fixed assets and intangible assets, etc., costsincurred to fulfill a contract with a customer are capitalised as an asset if all of the following criteria are met:
(1) the costs relate directly to a contract or to an anticipated contract, including direct labour, directmaterials, overheads (or similar expenses), costs that are explicitly chargeable to the customer and othercosts that are incurred only because an entity entered into the contract;
(2) the costs generate or enhance resources of the Group that will be used in satisfying performanceobligations in the future; and
(3) the costs are expected to be recovered.
The contract cost asset is amortised and charged to profit or loss on a systematic basis that isconsistent with the pattern of the revenue to which the asset related is recognised.
The Group accrues provisions for impairment and recognises impairment losses to the extent that thecarrying amount of a contract cost asset exceeds:
(1) the remaining amount of consideration that the entity expects to receive in exchange for the goodsor services to which the asset relates; less
(2) the costs that are expected to be incurred to transfer those related goods or services.
The Group recognises in profit or loss a reversal of the impairment loss previously recognised to theextent that the difference between (1) and (2) exceeds the carrying amount of the asset due to thesubsequent changes of the factors causing asset impairment in previous periods, but the carrying amountafter the reversal does not exceed the carrying amount of the asset at the reversal date if no impairmentloss is otherwise recognised.
40. Government grants
"√ Applicable" "□ Not applicable"
Government grants are recognised when all attaching conditions will be complied with and the grantswill be received. If a government grant is in the form of a transfer of a monetary asset, it is measured atthe amount received or receivable.
Asset-related government grants are recognised when the government document designates that thegovernment grants are used for constructing or forming long-term assets. If the government document isinexplicit, the Company should make a judgement based on the basic conditions to obtain the governmentgrants, and recognises them as asset-related government grants if the conditions are to form long-termassets through construction or other method. Otherwise, the government grants should be income-related.
The Company's government grants are subject to the gross method.
A government subsidy related to income, which is used to compensate the related costs or losses inthe future period, is recognized as deferred income, and is recorded into the profit or loss or to offset therelevant costs during the period when the related costs and expenses or losses are recognized; costs orlosses incurred in compensation is directly recorded into the profit or loss or offset the relevant costs.
A government grant relating to an asset shall be offset against the carrying amounts of relevant assets,or recognised as deferred income and amortised in profit or loss over the useful life of the related asset byannual installments in a systematic and rational way (however, a government grant measured at a nominalamount is recognised directly in profit or loss). Where the assets are sold, transferred, retired or damagedbefore the end of their useful lives, the rest of the remaining deferred income is released to profit or lossfor the period in which the relevant assets are disposed of.
41. Deferred income tax asset/deferred income tax liability
"√ Applicable" "□ Not applicable"
Based on the differences between the carrying amount of an asset or liability in the statement offinancial position and its tax base, and the differences between the carrying amounts of some items thathave a tax base but are not recognised as assets and liabilities and their tax base, the Group adopts theliability method for the provision of deferred tax.
Deferred tax liabilities are recognised for all taxable temporary differences, except:
(1) when the taxable temporary difference arises from the initial recognition of goodwill, or an asset orliability in a transaction that is not a business combination and, at the time of transaction, affects neitheraccounting profit nor taxable profit or loss; and
(2) in respect of taxable temporary differences associated with investments in subsidiaries, associatesand joint ventures, when the timing of the reversal of the temporary differences can be controlled and it isprobable that the temporary differences will not be reversed in the foreseeable future.
Deferred tax assets are recognised for all deductible temporary differences, and the carryforward ofunused tax losses and any unused tax credits. Deferred tax assets are recognised to the extent that it isprobable that taxable profit will be available against which the deductible temporary differences, thecarryforward of unused tax losses and unused tax credits can be utilised, except:
(1) when the deductible temporary difference arises from the initial recognition of an asset or liabilityin a transaction that is not a business combination and, at the time of the transaction, affects neither theaccounting profit nor taxable profit or loss; and
(2) in respect of the deductible temporary differences associated with investments in subsidiaries,associates and joint ventures, deferred tax assets are only recognised to the extent that it is probable thatthe temporary differences will be reversed in the foreseeable future and taxable profit will be availableagainst which the temporary differences can be utilised in the future.
At the balance sheet date, deferred tax assets and liabilities are measured at the tax rates that areexpected to apply to the period when the asset is realised or the liability is settled, in accordance with therequirements of tax laws. The measurement of deferred tax assets and deferred tax liabilities reflects thetax consequences that would follow from the manner in which the Group expects, at the balance sheetdate, to recover the assets or settle the liabilities.
The carrying amount of deferred tax assets is reviewed at the balance sheet date and reduced to theextent that it is no longer probable that sufficient taxable profit will be available in future periods to allowthe deferred tax assets to be utilised. Unrecognised deferred tax assets are reassessed at the balancesheet date and are recognised to the extent that it has become probable that sufficient taxable profit will beavailable to allow all or part of the deferred tax asset to be recovered.
Deferred tax assets and deferred tax liabilities are offset if and only if the Group has a legallyenforceable right to set off current tax assets and current tax liabilities, and the deferred tax assets anddeferred tax liabilities relate to income taxes levied by the same taxation authority on either the sametaxable entity or different taxable entities which intend either to settle current tax liabilities and assets on anet basis, or to realise the assets and settle the liabilities simultaneously, in each future period in whichsignificant amounts of deferred tax liabilities or assets are expected to be settled or recovered.
42. Leases
(1) Accounting process for operating lease
"□ Applicable" "√ Not applicable"
(2) Accounting treatment method for finance lease
"□ Applicable" "√ Not applicable"
(3) Determination method and accounting treatment method for lease under the new lease standard"√ Applicable" "□ Not applicable"
Applicable Commencing from January 1, 2021
1) Identification of leases
At inception of a contract, the Group assesses whether the contract is, or contains, a lease. A contractis, or contains, a lease if the contract conveys the right to control the use of an identified asset for a periodof time in exchange for consideration. To assess whether a contract conveys the right to control the useof an identified asset for a period of time, the Group assesses whether, throughout the period of use, thecustomer has both of the right to obtain substantially all of the economic benefits from use of the identifiedasset and the right to direct the use of the identified asset.
2) Identification of separate lease components
For a contract that contains multiple separate lease components, the Group separates the componentsof the contract and accounts for each separate lease component. The right to use an underlying asset isa separate lease component if both:
① the lessee can benefit from use of the underlying asset either on its own or together with otherresources that are readily available to the lessee; and
② the underlying asset is neither highly dependent on, nor highly interrelated with, the otherunderlying assets in the contract.
3) Separating lease components and non-lease components
For a contract that contains lease components and non-lease components, the Group accounts forlease components and non-lease components separately as a lessor or a lessee.
4) Assessment of the lease term
The lease term is the non-cancellable period of a lease for which the Group has the right to use anunderlying asset. If the Group has an option to extend the lease, that is, the Group has the right to extendthe lease, and is reasonably certain to exercise that option, the lease term also includes periods coveredby an option to extend the lease. If the Group has an option to terminate the lease, that is, the Group hasthe right to terminate the lease, but is reasonably certain not to exercise that option, the lease term includesperiods covered by an option to terminate the lease. The Group reassesses whether it is reasonablycertain to exercise an extension option, purchase option, or not to exercise a termination option, upon theoccurrence of either a significant event or a significant change in the circumstances that is within the controlof the Group and affects whether the Group is reasonably certain to exercise an option not previouslyincluded in its determination of the lease term.
5) As lessee
① Lease modifications
Lease modification is a change in the scope of a lease, or the consideration for a lease, that was notpart of the original terms and conditions of the lease, for example, adding or terminating the right to useone or more underlying assets, or extending or shortening the contractual lease term.
The Group accounts for a lease modification as a separate lease if both:
(1) the modification increases the scope of the lease by adding the right to use one or more underlyingassets; and
(2) the consideration for the lease increases by an amount commensurate with the stand-alone pricefor the increase in scope and any appropriate adjustments to that stand-alone price to reflect thecircumstances of the particular contract.
For a lease modification that is not accounted for as a separate lease, at the effective date of the leasemodification the Group remeasures the lease liability by discounting the revised lease payments using arevised discount rate. The revised discount rate is determined as the interest rate implicit in the lease forthe remainder of the lease term, or the lessee’s incremental borrowing rate at the effective date of themodification, if the interest rate implicit in the lease cannot be readily determined.
For a lease modification that is not accounted for as a separate lease, the Group accounts for theremeasurement of the lease liability by:
(1) decreasing the carrying amount of the right-of-use asset to reflect the partial or full terminationof the lease for lease modifications that decrease the scope of the lease, and recognising the gain or lossrelating to the partial or full termination of the lease in profit or loss; or
(2) making a corresponding adjustment to the right-of-use asset for all other lease modifications.
② Short-term leases and leases of low-value assets
The Group considers a lease that, at the commencement date of the lease, has a lease term of 12months or less, and does not contains any purchase option as a short-term lease; and a lease for whichthe value of the individual underlying asset is not more than RMB 40,000 when it is new as a lease of low-value assets. If the Group subleases an asset, or expects to sublease an asset, the head lease does notqualify as a lease of a low-value asset. The Group does not recognize right-of-use assets and leaseliabilities for short-term leases and low-value asset leases. The Group recognises lease payments on short-term leases and leases of low-value assets in the costs of the related asset or profit or loss on a straight-line basis
The Group does not assess whether there is a lease modification, and continues to calculate theinterest expense of the lease liability at the same discount rate as before the discount,and include it in theprofit or loss, and continues to depreciate the right-of-use asset according to the same method as beforethe discount. For the rent reduction or exemption as incurred, the Group regards the reduced rent as thevariable lease payment amount. When the original rent payment obligation is relieved by reaching areduction agreement, the undiscounted amount is used to offset the relevant asset costs or expenses, and
the lease liabilities is adjusted accordingly; for the deferred payment of rent as incurred, the Companyoffsets the lease liabilities recognised in the previous period when the actual payment is made.
6) As the lessor
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidentalto ownership of an underlying asset, except that a lease is classified as an operating lease at the inceptiondate.7)As the lessor of operating leaseRental income under an operating lease is recognised on a straight-line basisover the lease term, through profit or loss. Variable lease payments that are not included in themeasurement of lease receivables are charged to profit or loss as incurred.The Group accounts for a modification to an operating lease as a new lease from the effective date ofthe modification, considering any prepaid or accrued lease payments relating to the original lease as partof the lease payments for the new lease.
43. Other Important Accounting Policy and Accounting Estimates
?Applicable □Not applicable
The preparation of the financial statements requires management to make judgements, estimates andassumptions that affect the reported amounts of revenue, expenses, assets and liabilities, and theiraccompanying disclosures, and the disclosure of contingent liabilities at the balance sheet date.Uncertainty about these assumptions and estimates could result in outcomes that could require a materialadjustment to the carrying amounts of the assets or liabilities affected in the future.
(1) Judgments
① Business models
The classification of financial assets at initial recognition depends on the Group's business model formanaging financial assets. When determining the business model, the Group considers the methods toinclude evaluation and report financial asset performance to key management, the risks affecting theperformance of financial assets and the risk management, and the manner in which the relevantmanagement receives remuneration. When assessing whether the objective is to collect contractual cashflows, the Group needs to analyse and judge the reason, timing, frequency and value of the sale before thematurity date of the financial assets.
② Contractual cash flow characteristics
The classification of financial assets at initial recognition depends on the financial asset’s contractualcash flow characteristics, and the judgements on whether the contractual cash flows are solely paymentsof principal and interest on the principal amount outstanding, including when assessing the modification ofthe time value of money, the judgement on whether there is any significant difference from the benchmarkcash flow and whether the fair value of the prepayment features is insignificant for financial assets withprepayment features, etc.
(2)Estimation uncertainty
The key assumptions concerning the future and other key sources of estimation uncertainty at thebalance sheet date, that have a significant risk of causing a material adjustment to the carrying amounts ofassets and liabilities within the future accounting periods, are described below.
① Write down inventories to net realisable value
The Group writes down inventories to net realisable value based on the estimation of the realizableinventories. The assessment of write-downs requires management's judgment and reasonable estimates.Once there is a difference between the expectation and the original estimate, the difference may affect thebook value of inventories in the estimate changed period and the impairment losses of assets.
② Impairment of financial instruments
Commencing from January 1, 2019, the Company has adopted the expected credit loss model toassess the impairment of financial instruments. The Group is required to perform significant judgement andestimation and take into account all reasonable and supportable information, including forward-lookinginformation. When making such judgements and estimates, the Group infers the expected changes in thedebtor's credit risk based on historical repayment data combined with economic policies, macroeconomicindicators, industry risks and other factors. The different estimates may impact the impairmentassessment, and the provision for impairment may also not be representative of the actual impairment lossin the future.
③ Impairment of non-current assets other than financial assets (other than goodwill)
The Group assesses whether there are any indications of impairment for all non-current assets otherthan financial assets at the balance sheet date. Intangible assets with indefinite useful lives are tested forimpairment annually and at other times when such an indication exists. Other non-current assets otherthan financial assets are tested for impairment when there are indications that the carrying amounts maynot be recoverable. An impairment exists when the carrying amount of an asset or asset group exceedsits recoverable amount, which is the higher of its fair value less costs of disposal and the present value ofthe future cash flows expected to be derived from it. The calculation of the fair value less costs of disposalbased on available data from binding sales transactions in an arm’s length transaction of similar assets orobservable market prices less incremental costs for disposing of the assets. When the calculations of the
present value of the future cash flows expected to be derived from an asset or asset group are undertaken,management must estimate the expected future cash flows from the asset or asset group and choose asuitable discount rate in order to calculate the present value of those cash flows.
④Service life and estimated net residual value of fixed assets
During the use of fixed assets, the economic environment, technology environment and otherenvironments in which they are may have a greater impact on the service life and estimated net residualvalue of fixed assets. At the end of each year, the management reviews the service life and estimated netresidual value of fixed assets. If there is conclusive evidence that: the estimated service life of the fixedasset is different from the original estimate, the service life of the fixed asset shall be adjusted; the estimatednet residual value of the fixed asset is different from the original estimate, and the estimated net residualvalue shall be adjusted.
⑤ Deferred income tax asset
Deferred tax assets are recognised for all unused tax losses to the extent that it is probable that taxableprofit will be available against which the losses can be utilised. Significant management judgement isrequired to determine the amount of deferred tax assets that can be recognised, based upon the likelytiming and level of future taxable profits together with future tax planning strategies.
⑥ Warranties
The Group makes reasonable estimate of the warranty rate of a group of contracts with similarcharacteristics based on historical warranty data, current warranty, as well as all relevant information suchas product improvements, market changes, etc. Estimates of the expected warranty rate may not berepresentative of the actual warranty rate in the future. The Group re-evaluates the warranty rate at leaston each balance sheet date and updates the measurement of the provisions based on the re-evaluatedwarranty rate.
⑦ Provision of Sales Rebates and Rewards
The Group applies the sales rebate and incentive policy to the dealers. According to the relevantstipulations in the distribution agreement, with reference to the completion of the agreed assessmentindicators by the dealers, sales rebates and incentives are estimated and accrued at the end of each year.
44. Changes in significant accounting policies and accounting estimates
(1). Change in accounting policies
?Applicable □Not applicable
Contents and causes of the change in accounting policies | Examination and approval procedures | Remarks (Names and amounts of report items that are significantly affected) |
The MOF issued the "Accounting Standard for Business Enterprises No. 21 – Leases” (CAI KUAI [2018] No. 35) on December 7, 2018. According to the requirement of the MOF, a company which is listed both at home and abroad or listed overseas and prepares its financial report according to the International Financial Reports Standards or the Accounting Standard for Business Enterprises started implementing the said accounting standards commencing from January 1, 2019; other domestically listed enterprises started the implementation commencing from January 1, 2021. | The MOF issued the Accounting Standards for Business Enterprises No. 21 – Leases (CAI KUAI (2018) No. 35). | Note |
Other notesNotes:
On December 7, 2018, the MOF issued revised Accounting Standard for Business Enterprises No. 21– Leases (the “New Leases Standard”). The New Leases Standard introduces a single model similar tothe current accounting treatment of finance leases, requiring the lessor to recognise right-of-use assetsand lease liabilities for all the leases, except for short-term leases and leases of low-value assets, andrecognise depreciation and interest expense, respectively. The Group has accounted for leases underthe revised leases standard since 1 January 2021. As a practical expedient, the Group did not reassesswhether a contract is, or contains, a lease at the date of initial application. According to the transitionalrequirements, the Group did not restate comparative information. Instead, the Group recognised thecumulative effect of the initial application of the New Leases Standard as an adjustment to the openingbalance of retained earnings of 2021 at the date of initial application:
1) the Group recognised the right-of-use asset and the lease liabilities at the amount of the carryingamount of the lease asset and lease liability under the original standards applicable at the date of initialapplication for leases previously classified as finance leases;
2) for leases previously classified as operating leases, the Group recognised lease liabilities based onthe present value of the remaining lease payments discounted at the incremental borrowing rate at the date
of initial application, and measured right-of-use assets based on the amount equal to the lease liabilities,adjusted for any related prepaid and accrued lease payments previously recognised; and
3) the Group performed its impairment test of right-of-use assets and account for the impairment.Identify the fulfilled and outstanding performance obligations, determine transaction prices, andallocate transaction prices between fulfilled and outstanding performance obligations.
For operating leases of low-value assets and operating leases for which the lease term ends within 12months before initial application, the Group applied a simplified approach and did not recognise the right-of-use assets and lease liabilities:
1) applied a single discount rate to a portfolio of leases with reasonably similar characteristics; andexcluded the initial direct costs from the measurement of the right-of-use asset at the date of initialapplication;
2) used hindsight in determining the lease term where the contract contained options to extend orterminate the lease;
3) relied on its assessment of whether leases are onerous applying “42. Leases” of “V. SignificantAccounting Policy and Accounting Estimate” of “Section 10. Financial Report” immediately before the dateof initial application as an alternative to performing an impairment review, and adjusted the right-of-useassets at the date of initial application by the amount of any provision for onerous leases recognised in thebalance sheet immediately before the date of initial application; and
4) accounted for the changes in leases before the date of initial application based on the finalarrangement for such changes.
(2). Change of Significant Accounting Estimates
"□ Applicable" "√ Not applicable"
(3) The Company started implementing the New Leases Standard commencing from 2021 and
adjusted the financial statements at the beginning of the current year"√ Applicable" "□ Inapplicable"
Consolidated Balance Sheet
In: Yuan Currency:RMB
Items | December 31, 2020 | January 01, 2021 | Amount involved in the adjustment |
Current assets: | |||
Currency funds | 1,249,120,118.26 | 1,249,120,118.26 | |
Settlement reserve | |||
Inter-bank lending | |||
Financial assets held for trading | 458,440,486.16 | 458,440,486.16 | |
Derivative financial assets | |||
Notes receivable | |||
Accounts receivable | 187,700,162.28 | 187,700,162.28 | |
Receivables financing | 194,010,599.36 | 194,010,599.36 | |
Prepayments | 20,248,469.38 | 18,328,847.77 | -1,919,621.61 |
Receivable premium | |||
Reinsurance accounts receivable | |||
Reserve for reinsurance contract receivable | |||
Other receivables | 85,518,641.96 | 85,518,641.96 | |
Including: Interest receivable | 930,559.39 | 930,559.39 | |
Dividends receivable | |||
Redemptory monetary fund for sale | |||
Inventories | 494,751,269.64 | 494,751,269.64 | |
Contract assets |
Assets classified as held for sale | |||
Current portion of non-current assets | 875,045,616.43 | 875,045,616.43 | |
Other current assets | 120,605,121.80 | 120,605,121.80 | |
Total current assets | 3,685,440,485.27 | 3,683,520,863.66 | -1,919,621.61 |
Non-current assets: | |||
Loan issuing and advance in cash | |||
Debt investments | |||
Other debt investments | |||
Long-term receivables | |||
Long-term equity investments | 32,946,576.25 | 32,946,576.25 | |
Other equity investments | |||
Other non-current financial assets | |||
Investment properties | 223,753,945.07 | 223,753,945.07 | |
Fixed assets | 1,781,506,536.14 | 1,781,506,536.14 | |
Construction in progress | 47,995,478.09 | 47,995,478.09 | |
Productive biological asset | |||
Oil and Gas Assets | |||
Right-of-use assets | 56,116,227.00 | 56,116,227.00 | |
Intangible assets | 316,215,456.18 | 316,215,456.18 | |
Development expenditures | |||
Goodwill | |||
Long-term prepaid expenses | 11,802,083.24 | 11,802,083.24 | |
Deferred tax assets | 56,365,819.88 | 56,365,819.88 | |
Other non-current assets | 3,402,470,277.28 | 3,402,470,277.28 | |
Total non-current assets | 5,873,056,172.13 | 5,929,172,399.13 | 56,116,227.00 |
Total assets | 9,558,496,657.40 | 9,612,693,262.79 | 54,196,605.39 |
Current liabilities: | |||
Short-term borrowings | |||
Borrowings from the central bank | |||
Loans from other banks | |||
Financial liabilities at fair value through profit or loss | |||
Derivative financial liabilities | |||
Notes payable | 4,555,247,953.70 | 4,555,247,953.70 | |
Accounts payable | 1,382,013,472.83 | 1,382,013,472.83 | |
Receipts in advance | |||
Contract liabilities | 318,471,009.89 | 318,471,009.89 | |
Money from sale of the repurchased financial assets | |||
Deposits taking and interbank placement | |||
Acting trading securities |
Income from securities underwriting on commission | |||
Employee benefits payable | 89,154,510.59 | 89,154,510.59 | |
Taxes and surcharges payable | 25,977,920.73 | 25,977,920.73 | |
Other payables | 453,785,184.64 | 446,629,221.36 | -7,155,963.28 |
Including: interest payable | |||
Dividends payable | |||
Service charge and commission payable | |||
Payable reinsurance | |||
Liabilities classified as held for sale | |||
Current portion of non-current liabilities | 9,424,674.23 | 9,424,674.23 | |
Other current liabilities | 12,219,830.60 | 12,219,830.60 | |
Total current liabilities | 6,836,869,882.98 | 6,839,138,593.93 | 2,268,710.95 |
Non-current liabilities: | |||
Reserve for insurance contract | |||
Long-term borrowings | |||
Bonds payable | |||
Including: preferred shares | |||
Perpetual bond | |||
Lease liabilities | 51,927,894.44 | 51,927,894.44 | |
Long-term payables | |||
Long-term employee benefits payable | |||
Predicted liabilities | |||
Deferred income | 73,775,195.25 | 73,775,195.25 | |
Deferred tax liability | 8,740.26 | 8,740.26 | |
Other non-current liabilities | |||
Total non-current liabilities | 73,783,935.51 | 125,711,829.95 | 51,927,894.44 |
Total liabilities | 6,910,653,818.49 | 6,964,850,423.88 | 54,196,605.39 |
Owner’s equity(or shareholder’s equity): | |||
Share capital | 338,660,003.00 | 338,660,003.00 | |
Other equity instruments | |||
Including: preferred shares | |||
Perpetual bond | |||
Capital reserves | 319,618,893.64 | 319,618,893.64 | |
Less: Treasury shares | |||
Other comprehensive income | |||
Special reserves | |||
Surplus reserves | 189,936,412.55 | 189,936,412.55 | |
General risks reserves |
Retained earnings | 1,781,546,043.16 | 1,781,546,043.16 | |
Total shareholders’ equity attributable to the parent company | 2,629,761,352.35 | 2,629,761,352.35 | |
Non-controlling interests | 18,081,486.56 | 18,081,486.56 | |
Total shareholder’s equity | 2,647,842,838.91 | 2,647,842,838.91 | |
Total Liabilities and Shareholder’s Equity | 9,558,496,657.40 | 9,612,693,262.79 | 54,196,605.39 |
Note to various item adjustments:
"□ Applicable" "√ Inapplicable"
Balance Sheet, Parent Company
In: Yuan Currency: RMB
Items | December 31, 2020 | January 01, 2021 | Amount involved in the adjustment |
Current assets: | |||
Current assets | 1,026,281,081.52 | 1,026,281,081.52 | |
Financial assets at fair value through profit or loss | 60,600,000.00 | 60,600,000.00 | |
Derivative financial assets | |||
Notes receivable | |||
Accounts receivable | 187,973,999.10 | 187,973,999.10 | |
Receivables financing | 2,920,000.00 | 2,920,000.00 | |
Prepayments | 9,320,260.63 | 9,320,260.63 | |
Other receivables | 54,343,683.45 | 54,343,683.45 | |
Including: Interest receivable | 928,998.18 | 928,998.18 | |
Dividend receivable | |||
Inventories | 5,103,408.33 | 5,103,408.33 | |
Contract assets | |||
Assets classified as held for sale | |||
Current portion of non-current assets | 875,045,616.43 | 875,045,616.43 | |
Other current assets | 48,187,421.72 | 48,187,421.72 | |
Total current assets | 2,269,775,471.18 | 2,269,775,471.18 | |
Non-current assets: | |||
Debt investments | |||
Other debt investments | |||
Long-term receivables | |||
Long-term equity investments | 693,448,588.33 | 693,448,588.33 | |
Other equity investments | |||
Other non-current financial assets |
Investment properties | 438,596,163.82 | 438,596,163.82 | |
Fixed asset | 48,254,628.34 | 48,254,628.34 | |
Construction in progress | 13,543,609.26 | 13,543,609.26 | |
Productive biological asset | |||
Oil and Gas Assets | |||
Right-of-use assets | 16,638,789.86 | 16,638,789.86 | |
Intangible assets | 30,295,640.40 | 30,295,640.40 | |
Development expenditures | |||
Goodwill | |||
Long-term prepaid expenses | 1,021,465.06 | 1,021,465.06 | |
Deferred tax assets | 20,994,245.62 | 20,994,245.62 | |
Other non-current assets | 3,190,437,580.45 | 3,190,437,580.45 | |
Total non-current assets | 4,436,591,921.28 | 4,453,230,711.14 | 16,638,789.86 |
Total assets | 6,706,367,392.46 | 6,723,006,182.32 | 16,638,789.86 |
Current liabilities: | |||
Short term borrowings | |||
Financial liabilities held for trading | |||
Derivative financial liabilities | |||
Notes payable | 1,535,609,263.11 | 1,535,609,263.11 | |
Accounts payable | 2,581,643,212.31 | 2,581,643,212.31 | |
Receipts in advance | |||
Contract liabilities | 293,258,453.68 | 293,258,453.68 | |
Employee benefits payable | 25,528,265.93 | 25,528,265.93 | |
Taxes and surcharges payable | 666,987.59 | 666,987.59 | |
Other payables | 308,332,553.91 | 308,332,553.91 | |
Including: interest payable | |||
Dividends payable | |||
Liabilities classified as held for sale | |||
Current portion of non-current liabilities | 4,766,830.14 | 4,766,830.14 | |
Other current liabilities | 9,711,127.61 | 9,711,127.61 | |
Total current liabilities | 4,754,749,864.14 | 4,759,516,694.28 | 4,766,830.14 |
Non-current liabilities: | |||
Long-term borrowings | |||
Bonds payable | |||
Including: preferred shares | |||
Perpetual bond | |||
Lease liabilities | 11,871,959.72 | 11,871,959.72 | |
Long-term payables | |||
Long-term employee benefits payable |
Provisions | |||
Deferred income | 36,257,597.30 | 36,257,597.30 | |
Deferred tax liabilities | |||
Other non-current liabilities | |||
Total non-current liabilities | 36,257,597.30 | 48,129,557.02 | 11,871,959.72 |
Total liabilities | 4,791,007,461.44 | 4,807,646,251.30 | 16,638,789.86 |
Shareholder’s equity: | |||
Share capital) | 338,660,003.00 | 338,660,003.00 | |
Other equity instruments | |||
Including: preferred shares | |||
Perpetual bond | |||
Capital reserves | 294,981,361.11 | 294,981,361.11 | |
Less: Treasury shares | |||
Other comprehensive income | |||
Special reserves | |||
Surplus reserves | 189,936,412.55 | 189,936,412.55 | |
Retained earnings | 1,091,782,154.36 | 1,091,782,154.36 | |
Total shareholder’s equity | 1,915,359,931.02 | 1,915,359,931.02 | |
Total Liabilities and Shareholder’s Equity | 6,706,367,392.46 | 6,723,006,182.32 | 16,638,789.86 |
Note to various item adjustments:
"□ Applicable" "√ Inapplicable"
(4) Note to the retroactive adjustment of the previous comparative data according to the newstandards for lease initially implemented from 2021"□ Applicable" "√ Not applicable"
45. Others
"□ Applicable" "√ Not applicable"VI. Taxes
1. Types of major taxes and tax rates
Types of major taxes and tax rates"√ Applicable" "□ Not applicable"
Types of taxes | Tax basis | Tax rates |
Value-added tax | The output VAT is calculated based on the sales of goods and taxable labor income according to the tax law. After deducting the offsetable input VAT in the reporting period, the difference is the value-added tax payable. | 13%, 9%, 6% |
Urban maintenance and construction tax | It is paid based on the turnover tax actually paid | 7% |
Corporate income tax | Based on the amount of income taxable | 25%, 20%, 15% |
Education Surcharge | It is paid based on the turnover tax actually paid | 3% |
Local education Surcharge | It is paid based on the turnover tax actually paid | 2% |
In case there exist taxpayers subject to different corporate income tax rates, disclose the information."√ Applicable" "□ Not applicable"
Taxpayers | Income tax rate (%) |
Tianjin Suiwanwan Culture Communication Co., Ltd. | 20 |
Tianjin Tianli Electric Bicycle Co., Ltd. | 20 |
Tianjin Jinge Industrial Design Co., Ltd. | 20 |
Xiaopa Electric Technology (Shanghai) Co., Ltd | 20 |
Tianjin Xiaoma Network Technology Co., Ltd. | 20 |
Aima Technology (Chongqing) Co., Ltd. | 15 |
Chongqing Aima Vehicle Technology Co., Ltd. | 15 |
Aima Technology (Hainan) Co., Ltd. | 15 |
Tianjin Aima Vehicle Technology Co., Ltd. | 15 |
Guangdong Aima Vehicle Technology Co., Ltd. | 15 |
Guangxi Aima Vehicle Co., Ltd. | 15 |
2. Tax Preferences
"√ Applicable" "□ Not applicable"
In 2021, Tianjin Jinge Industrial Design Co., Ltd., Tianjin Suiwanwan Cultural Communication Co., Ltd.,Xiaopa Electric Technology (Shanghai) Co., Ltd., Tianjin Tianli Electric Bicycle Co., Ltd. and Tianjin XiaomaNetwork Technology Co., Ltd. enjoyed preferential taxes for small low-profit enterprises. In accordance withthe Enterprise Income Tax Law of the People’s Republic of China and the regulations for theimplementation, and the Ministry of Finance and the State Administration of Taxation on Implementing theInclusive Tax Deduction and Exemption Policies for Micro and Small Enterprises (CAISHUI [2019] No. 13),from January 1, 2019 to December 31, 2021, the annual taxable income of a small low-profit enterprisethat is not more than RMB 1 million shall be included in its taxable income at the reduced rate of 25%,with the applicable enterprise income tax rate of 20%; and the annual taxable income that is not less thanRMB 1 million nor more than RMB 3 million shall be included in its taxable income at the reduced rateof 50%, with the applicable enterprise income tax rate of 20%. In accordance with the Announcement ofthe State Administration of Taxation on the Implementation of Preferential Income Tax Policies Supportingthe Development of Small and Low-profit Enterprises and Individual Industrial and Commercial Households(State Administration of Taxation Announcement No. 8 [2021]),from January 1, 2021 to December 31, 2022,the annual taxable income of small and low-profit enterprises does not exceed RMB 1 million, a reductionof 12.5% shall be included in the taxable income, and the corporate income tax shall be paid at the rate of20%.
Aima Technology (Chongqing) Co., Ltd. and Chongqing Aima Vehicle Technology Co., Ltd. belong tothe encouraged industrial companies of the Western Development, and can enjoy the tax preference of 15%corporate income tax from 2021 to 2030.
Aima Technology (Hainan) Co., Ltd. Enjoys the tax preference policy for and Chongqing Aima VehicleTechnology Co., Ltd. Enjoys preferential tax policy for Hainan Free Trade Port ,and can enjoy the taxpreference of 15% corporate income tax from 2020 to 2024.
Tianjin Aima Vehicle Technology Co., Ltd., Guangdong Aima Vehicle Technology Co., Ltd. andGuangxi Aima Vehicle Technology Co., Ltd. Were qualified for hi-tech enterprise in 2021, and may enjoythe tax preference of 15% corporate income tax from 2021 to 2023.
3. Others
"□ Applicable" "√ Not applicable"VII. Notes to Items of Consolidated Financial Statements
1.Currency funds
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Ending balance | Opening balance |
Cash | ||
Cash at banks | 2,844,921,448.22 | 977,405,317.96 |
Others | 1,221,862.48 | 271,714,800.30 |
Total | 2,846,143,310.70 | 1,249,120,118.26 |
Other notes
The details of the Company's currency funds that have restrictions on use due to mortgage, pledge orfreezing, and which are deposited overseas and restricted from repatriation of funds are as follows:
As of December 31, 2021, the Company had no monetary funds with restricted ownership (December31, 2020: RMB 269,196,678.00).
For the bank demand deposits, the interest income is received at the interest rate of bank demanddeposits. As at December 31, 2021,there was no short-term fixed-term deposit.
2. Financial assets held for trading
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Ending balance | Opening balance |
Financial assets at fair value through profit or loss | 1,265,981,818.24 | 458,440,486.16 |
Where: | ||
Equity investments | 85,600,000.00 | |
Financial products | 1,180,381,818.24 | 458,440,486.16 |
Financial assets designated at fair value through profit or loss | ||
Where: | ||
Total | 1,265,981,818.24 | 458,440,486.16 |
Other notes:
"√ Applicable" "□ Not applicable"The details of the financial products with the use right restricted are as follows:
Items | Ending balance | Opening balance |
Financial products | 390,000,000.00 | 280,000,000.00 |
3. Derivative financial assets
"□ Applicable" "√ Not applicable"
4.Notes receivable
(1) Classification of notes receivable
"□ Applicable" "√ Not applicable"
(2) Notes receivable already pledged by the Company at the end of the reporting period"□ Applicable" "√ Not applicable"
(3) Endorsed or discounted notes receivable at the end of the reporting period, but not yet due onthe balance sheet date"□ Applicable" "√ Not applicable"
(4) Notes transferred to receivables due to issuer’s default at the end of the reporting period"□ Applicable" "√ Not applicable"
(5) Classified disclosure based on the method of provision for bad debt
"□ Applicable" "√ Not applicable"Individual provision for bad debts:
"□ Applicable" "√ Not applicable"Provision for bad and doubtful debts based on portfolio:
"□ Applicable" "√ Not applicable"
If the provision for bad debt is accrued in accordance with the general model of expected credit loss,please refer to the disclosure of other receivables"□ Applicable" "√ Not applicable"
(6) Provision for bad debts
"□ Applicable" "√ Not applicable"
(7) Notes receivable actually written off in the reporting period
"□ Applicable" "√ Not applicable"Other notes"□ Applicable" "√ Not applicable"
5. Accounts receivable
(1) Disclosed based on aging
"√ Applicable" "□ Not applicable"
In: Yuan Currency: RMB
Aging | Ending book balance |
Within 1 year | |
Where: Itemized within 1 year | |
Within 1 year | 209,442,121.39 |
Sub-total within 1 year | 209,442,121.39 |
1 to 2 years | 524,323.97 |
2 to 3 years | |
Over 3 years | |
Total | 209,966,445.36 |
(2) Classified disclosure based on the method of provision for bad debt
"□ Applicable" "√ Inapplicable"
In: Yuan Currency: RMB
Categories | Ending balance | Opening balance | ||||||||
Book balance | Bad debt reserve | Book value | Book balance | Bad debt reserve | Book value | |||||
Amount | Proportion (%) | Amount | Provision proportion (%) | Amount | Proportion (%) | Amount | Provision proportion (%) | |||
Assessed bad debt provision individually | 4,248,734.54 | 2.15 | 4,248,734.54 |
Where: | ||||||||||
Individually significant amount and separate provision for bad debts | 4,248,734.54 | 2.15 | 4,248,734.54 | |||||||
Assessed bad debt provision in portfolio | 209,966,445.36 | 100.00 | 2,336,643.71 | 1.11 | 207,629,801.65 | 193,547,668.80 | 97.85 | 10,096,241.06 | 5.22 | 183,451,427.74 |
Where: | ||||||||||
Portfolios based on credit risk characteristics | 209,966,445.36 | 100.00 | 2,336,643.71 | 1.11 | 207,629,801.65 | 193,547,668.80 | 97.85 | 10,096,241.06 | 5.22 | 183,451,427.74 |
Total | 209,966,445.36 | / | 2,336,643.71 | / | 207,629,801.65 | 197,796,403.34 | / | 10,096,241.06 | / | 187,700,162.28 |
Individual provision for bad debts:
"□ Applicable" "√ Not applicable"Provision for bad and doubtful debts based on portfolio:
?Applicable □ Not applicableProvision items on portfolio
In:Yuan Currency:RMB
Name | Ending balance | ||
Accounts receivable | Bad debt provision | Provision proportion (%) | |
Within 1 year (with 1 year inclusive) | 209,442,121.39 | 2,220,086.49 | 1.06 |
1 to 2 years (with 2 years inclusive) | 524,323.97 | 116,557.22 | 22.23 |
2 to 3 years (with 3 years inclusive) | |||
Over 3 years | |||
Total | 209,966,445.36 | 2,336,643.71 | 1.11 |
Criteria of and note to recognition of provision for bad debts based on portfolio:
"□ Applicable" "√ Not applicable"If the provision for bad debt is accrued in accordance with the general model of expected credit loss,please refer to the disclosure of other receivables"□ Applicable" "√ Not applicable"
(3) Provision for bad debts
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Categories | Amount of movement during the reporting period |
Opening balance | Provision | Recovery or reversal | Charge-off or write-off | Other changes | Ending balance | |
Assessed bad debt provision in portfolio | 10,096,241.06 | 6,513,215.15 | 14,272,719.28 | 93.22 | 2,336,643.71 | |
Total | 10,096,241.06 | 6,513,215.15 | 14,272,719.28 | 93.22 | 2,336,643.71 |
Where the significant amount of the reserve for bad debt recovered or reversed:
"□ Applicable" "√ Not applicable"
(4) Accounts receivable actually written off in the reporting period
"□ Applicable" "√ Not applicable"
(5) Accounts receivable owed by the top five debtors based on the ending balance"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Organization name | Ending balance | Proportion in total ending balance of accounts receivable (%) | Ending balance of the provision for bad debts |
Customer 1 | 21,928,902.65 | 10.44 | 232,446.37 |
Customer 2 | 13,641,918.29 | 6.50 | 144,604.33 |
Customer 3 | 9,414,533.53 | 4.48 | 99,794.06 |
Customer 4 | 7,605,767.51 | 3.62 | 80,621.14 |
Customer 5 | 7,235,102.18 | 3.45 | 76,692.08 |
Total | 59,826,224.16 | 28.49 | 634,157.98 |
(6) Account receivable with recognition terminated due to transfer of financial assets"□ Applicable" "√ Not applicable"
(7) Amount of assets and liabilities formed through transfer of account receivable and continuing
to be involved"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
6. Receivables financing
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Ending balance | Opening balance |
Bank acceptance notes | 49,295,422.59 | 194,010,599.36 |
Total | 49,295,422.59 | 194,010,599.36 |
Change of increase/decrease and fair value of accounts receivable financing in the reporting period:
"□ Applicable" "√ Not applicable"
If the provision for bad debt is accrued in accordance with the general model of expected credit loss,please refer to the disclosure of other receivables"□ Applicable" "√ Not applicable"
7. Prepayments
(1)Prepayments are presented based on aging
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Aging | Ending balance | Opening balance | ||
Amount | Proportion (%) | Amount | Proportion (%) | |
Within 1 year | 20,878,129.11 | 96.94 | 17,851,166.97 | 97.40 |
1 to 2 years | 559,969.27 | 2.60 | 370,840.99 | 2.02 |
2 to 3 years | 106,839.81 | 0.58 | ||
Over 3 years | 100,000.00 | 0.46 | ||
Total | 21,538,098.38 | 100.00 | 18,328,847.77 | 100.00 |
(2) Prepayments to the top five debtors of the ending balance collected based on the debtors of the
prepayments"√ Applicable" "□ Not applicable"
Organization name | Ending balance | Proportion in total ending balance of prepayments (%) |
Supplier 1 | 2,593,313.53 | 12.04 |
Supplier 2 | 1,605,683.60 | 7.46 |
Supplier 3 | 1,587,174.59 | 7.37 |
Supplier 4 | 1,140,287.61 | 5.29 |
Supplier 5 | 487,834.30 | 2.26 |
Total | 7,414,293.63 | 34.42 |
Other notes"□ Applicable" "√ Not applicable"
8.Other receivables
Items Presentation"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Ending balance | Opening balance |
Interest receivables | 642,997.45 | 930,559.39 |
Dividends receivable | ||
Other receivables | 149,426,857.13 | 84,588,082.57 |
Total | 150,069,854.58 | 85,518,641.96 |
Other notes:
"□ Applicable" "√ Not applicable"Interest receivables
(1) Classification of interest receivable
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Ending balance | Opening balance |
Deposit and wealth investment | 331,204.44 | |
Interest of accounts receivable | 642,997.45 | 599,354.95 |
Total | 642,997.45 | 930,559.39 |
(2) Significant overdue interest
"□ Applicable" "√ Not applicable"
(3) Provision for bad debts
"□ Applicable" "√ Not applicable"Other notes:
"□ Applicable" "√ Not applicable"Dividend receivable
(4) Dividend receivable
"□ Applicable" "√ Not applicable"
(5) Significant dividends receivable with age exceeding 1 year
"□ Applicable" "√ Not applicable"
(6) Provision for bad debts
"□ Applicable" "√ Not applicable"Other notes:
"□ Applicable" "√ Not applicable"Other receivables
(7) Disclosed based on aging
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Aging | Ending book balance |
Within 1 year | |
Where: Itemized within 1 year | |
Within 1 year | 144,245,727.86 |
Sub-total within 1 year | 144,245,727.86 |
1 to 2 years | 3,156,255.55 |
2 to 3 years | 3,708,453.30 |
Over 3 years | 24,323,512.34 |
Total | 175,433,949.05 |
(8) Classification based on the nature of fund
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Nature of the fund | Ending book balance | Opening book balance |
Engineering fees to be recovered | 24,164,117.84 | 24,164,117.84 |
Deposits | 138,555,562.94 | 2,161,666.16 |
Listing expenses | 30,534,966.17 | |
Reimbursement of the advance to employees | 406,934.00 | 176,881.17 |
Receivable from disposal of fixed assets | 5,248,574.23 | 16,509,154.50 |
Rebate to suppliers | 17,806,530.09 | |
Others | 7,058,760.04 | 17,443,210.69 |
Total | 175,433,949.05 | 108,796,526.62 |
(9) Provision for bad debts
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Bad debt provision | Stage 1 | Stage 2 | Stage 3 | Total |
12-month expected credit losses | Lifetime ECLs (no credit impairment incurred) | Lifetime ECLs (credit impairment already incurred) | ||
Balance as at January 1, 2021 | 26,894.68 | 17,431.53 | 24,164,117.84 | 24,208,444.05 |
Balance as at January 1, 2021 in the reporting period | ||||
-- transferred into Stage 2 | ||||
-- transferred into Stage 3 | ||||
-- revered to Stage 2 | ||||
-- reversed to Stage 1 | ||||
Accrual | 21,647.20 | 1,821,326.88 | 1,842,974.08 | |
Reversal | 26,894.68 | 17,431.53 | 44,326.21 | |
Transfer out | ||||
Write-off | ||||
Other changes | ||||
Balance as at December 31, 2021 | 21,647.20 | 1,821,326.88 | 24,164,117.84 | 26,007,091.92 |
Note to the significant changes in the book balance of other receivables with changes in provision forloss in the reporting period:
"□ Applicable" "√ Not applicable"
The amount of provision for bad debts in the reporting period and the basis for assessing whether thecredit risk of financial instruments has increased significantly"□ Applicable" "√ Not applicable"
(10) Provision for bad debts
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Categories | Amount of movement during the reporting period |
Opening balance | Provision | Recovery or reversal | Charge-off or write-off | Other changes | Ending balance | |
Bad debt provision | 24,208,444.05 | 1,842,974.08 | 44,326.21 | 26,007,091.92 | ||
Total | 24,208,444.05 | 1,842,974.08 | 44,326.21 | 26,007,091.92 |
Where a significant amount of the reserve for bad debt recovered or reversed during the reportingperiod:
"□ Applicable" "√ Not applicable"
(11) Other receivables actually written off in the reporting period
"□ Applicable" "√ Not applicable"
(12) Other receivables owed by the top five debtors based on the ending balance"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Organization name | Nature of Payment | Ending balance | Aging | Proportion in total ending balance of other receivables (%) | Bad debt reserve Ending balance |
Customer 1 | Deposits | 107,506,442.86 | Within 1 year | 61.28 | |
Customer 2 | Deposits | 28,534,883.61 | Within 1 year | 16.27 | |
Customer 3 | Engineering fees to be recovered | 24,164,117.84 | Over 3 years | 13.77 | 24,164,117.84 |
Customer 4 | Receivable from disposal of fixed assets | 2,998,574.23 | 2-3 years | 1.71 | 696,326.88 |
Customer 5 | Receivable from disposal of fixed assets | 2,250,000.00 | 2-3 years | 1.28 | 1,125,000.00 |
Total | / | 165,454,018.54 | 94.31 | 25,985,444.72 |
(13) Accounts receivable involving government subsidy
"□ Applicable" "√ Not applicable"
(14) Other receivables with recognition terminated due to transfer of financial assets"□ Applicable" "√ Not applicable"
(15) Amount of assets and liabilities formed through transfer of other receivables and continuingto be involved"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
9. Inventories
(1) Classification of inventories
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Ending balance | Opening balance | ||||
Book balance | Provision for write-down of inventories/impairment of costs to fulfill a contract | Book value | Book balance | Provision for write-down of inventories / impairment of costs to fulfill a contract | Book value | |
Raw materials | 359,993,370.61 | 4,730,148.62 | 355,263,221.99 | 214,631,044.28 | 436,248.90 | 214,194,795.38 |
Finished goods | 440,425,986.90 | 440,425,986.90 | 280,754,523.22 | 198,048.96 | 280,556,474.26 | |
Total | 800,419,357.51 | 4,730,148.62 | 795,689,208.89 | 495,385,567.50 | 634,297.86 | 494,751,269.64 |
(2) Provision for write-down of inventories / impairment of costs to fulfill a contract"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Opening balance | Amount increased in the reporting period | Decrease in the reporting period | Ending balance | ||
Provision | Others | Reversal or write-off | Others | |||
Raw materials | 436,248.90 | 6,878,033.90 | 2,584,134.18 | 4,730,148.62 | ||
Finished goods | 198,048.96 | 198,048.96 | ||||
Total | 634,297.86 | 6,878,033.90 | 2,782,183.14 | 4,730,148.62 |
(3)Note to the amount of capitalized borrowing costs involved in the ending balance of inventories"□ Applicable" "√ Not applicable"
(4) Note to the current amortization amount of contract performance costs
"□ Applicable" "√ Not applicable"Other notes"□ Applicable" "√ Not applicable"
10. Contract assets
(1) About contract assets
"□ Applicable" "√ Not applicable"
(2)The amount involved in the significant change of the book value and the cause during thereporting period"□ Applicable" "√ Not applicable"
(3)Provision for impairment of contract assets in the reporting period
"□ Applicable" "√ Not applicable"
If the provision for bad debt is accrued in accordance with the general model of expected credit loss,please refer to the disclosure of other receivables"□ Applicable" "√ Not applicable"Other notes:
"□ Applicable" "√ Not applicable"
11. Held-for-sale assets
"□ Applicable" "√ Not applicable"
12. Non-current assets due within a year
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Ending balance | Opening balance |
Fixed term deposit due within a year | 875,045,616.43 | |
Total | 875,045,616.43 |
Significant debt investment and other debt investments at the end of the reporting period:
"□ Applicable" "√ Not applicable"
13. Other current assets
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Ending balance | Opening balance |
CIT paid in advance | 78,929,325.30 | 54,956,430.47 |
Input VAT to be credited | 91,878,628.00 | 65,648,691.33 |
Total | 170,807,953.30 | 120,605,121.80 |
14. Debt investment
(1) About debt investment
"□ Applicable" "√ Not applicable"
(2) Significant debt investment at the end of the reporting period
"□ Applicable" "√ Not applicable"
(3)Provision for impairment
"□ Applicable" "√ Not applicable"
The amount of provision for impairment in the reporting period and the basis for assessing whetherthe credit risk of financial instruments has increased significantly
"□ Applicable" "√ Not applicable"Other notes"□ Applicable" "√ Not applicable"
15. Other debt investment
(1) About other debt investment
"□ Applicable" "√ Not applicable"
(2) Significant other debt investment at the end of the reporting period
"□ Applicable" "√ Not applicable"
(3)Provision for impairment
"□ Applicable" "√ Not applicable"The amount of provision for impairment in the reporting period and the basis for assessing whetherthe credit risk of financial instruments has increased significantly"□ Applicable" "√ Not applicable"Other notes:
"□ Applicable" "√ Not applicable"
16. Long-term receivables
(1)About long-term receivables
"□ Applicable" "√ Not applicable"
(2) Provision for bad debts
"□ Applicable" "√ Not applicable"The amount of provision for bad debts in the reporting period and the basis for assessing whether thecredit risk of financial instruments has increased significantly"□ Applicable" "√ Not applicable"
(3) Long term receivables with recognition terminated due to transfer of financial assets"□ Applicable" "√ Not applicable"
(4) Amount of assets and liabilities formed through transfer of long-term receivables and continuingto be involved"□ Applicable" "√ Not applicable"Other notes"□ Applicable" "√ Not applicable"
17. Long-term equity investments
?Applicable □ Not applicable
In:Yuan Currency:RMB
Investees | Opening balance | Increase/ Decrease (+ / -) in the reporting period | Ending balance | Impairment at the end of the year | |||||||
Increase | Decrease | Investment income under the | Other comprehensive income | Other equity move | Cash dividend declared | Provision for impairment | Others |
equity method | ment | ||||||||||
I. Joint Venture | |||||||||||
Sub-total | |||||||||||
II. Associates | |||||||||||
TODAY SUNSHINE | 13,298,705.15 | -1,729,310.83 | 11,569,394.32 | ||||||||
Tianjin Gamma | 19,647,871.10 | 651,728.75 | 5,724,000.00 | 14,575,599.85 | |||||||
Shandong Grand | 22,717,737.96 | -3,462,453.52 | 19,255,284.44 | ||||||||
Taizhou Jinfu | 90,000,000.00 | -35,049,676.20 | 54,950,323.80 | ||||||||
Beijing Zhongzhong | 5,000,000.00 | -277,322.18 | 4,722,677.82 | ||||||||
Sub-total | 32,946,576.25 | 117,717,737.96 | -39,867,033.98 | 5,724,000.00 | 105,073,280.23 | ||||||
Total | 32,946,576.25 | 117,717,737.96 | -39,867,033.98 | 5,724,000.00 | 105,073,280.23 |
18. Other equity instrument investment
(1) Other equity instrument investment
"□ Applicable" "√ Not applicable"
(2) Investment in non-transactional equity instruments
"□ Applicable" "√ Not applicable"Other notes:
"□ Applicable" "√ Not applicable"
19. Other non-current financial assets
"□ Applicable" "√ Not applicable"Other notes:
"□ Applicable" "√ Not applicable"
20. Investment properties
Measurement model for investment-oriented real estate
(1) Investment properties measured based on the cost method
In:Yuan Currency:RMB
Items | Buildings | Land use rights | Total |
I. Original book value | |||
1. Opening balance | 185,765,336.74 | 74,456,169.46 | 260,221,506.20 |
2. Amount increased in the reporting period | 60,263,759.97 | 4,553,291.88 | 64,817,051.85 |
(1) Purchased | |||
(2) Inventories\fixed assets/construction in process transferred in | 60,263,759.97 | 4,553,291.88 | 64,817,051.85 |
(3) Increase of enterprise consolidation | |||
3. Amount decreased in the reporting period | |||
(1) Disposals | |||
(2) Other transfer out | |||
4. Ending balance | 246,029,096.71 | 79,009,461.34 | 325,038,558.05 |
II. Accumulative depreciation and accumulative amortization | |||
1. Opening balance | 31,718,011.86 | 4,749,549.27 | 36,467,561.13 |
2. Amount increased in the reporting period | 16,083,857.91 | 2,298,594.74 | 18,382,452.65 |
(1) Depreciation and amortisation provided during the year | 14,160,853.82 | 1,676,311.53 | 15,837,165.35 |
(2)Transfer-in of the fixed asset or intangible assets | 1,923,004.09 | 622,283.21 | 2,545,287.30 |
3. Amount decreased in the reporting period | |||
(1) Disposal | |||
(2) Other transfer out | |||
4. Ending balance | 47,801,869.77 | 7,048,144.01 | 54,850,013.78 |
III. Provision for impairment | |||
1. Opening balance | |||
2. Amount increased in the reporting period | |||
(1) Provision | |||
3. Amount decreased in the reporting period | |||
(1) Disposal | |||
(2) Other transfer out | |||
4. Ending balance | |||
IV. Book value | |||
1.Book value at the end of the reporting period | 198,227,226.94 | 71,961,317.33 | 270,188,544.27 |
2.Book value at the beginning of the reporting period | 154,047,324.88 | 69,706,620.19 | 223,753,945.07 |
(2) Investment property with no title certificate
"□ Applicable" "√ Not applicable"Other notes"√ Applicable" "□ Not applicable"As at December 31, 2021, the book value of investment properties leased out for operation was RMB270,188,544.27 (December 31, 2020: RMB 223,753,945.07).
21. Fixed asset
Items Presentation"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Ending balance | Opening balance |
Fixed asset | 1,964,000,630.29 | 1,767,169,467.93 |
Disposal of fixed assets | 2,085,074.02 | 14,337,068.21 |
Total | 1,966,085,704.31 | 1,781,506,536.14 |
Fixed asset
(1) About fixed assets
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Buildings | Machinery and equipment | Vehicles | Office equipment | Electronic equipment | Production tools | Total |
I. Original book value: | |||||||
1. Opening balance | 1,768,039,850.30 | 412,056,293.74 | 34,278,128.63 | 24,894,753.24 | 32,438,750.68 | 152,289,639.91 | 2,423,997,416.50 |
2. Amount increased in the reporting period | 201,104,063.47 | 127,258,977.44 | 7,492,659.68 | 12,510,123.55 | 12,328,705.16 | 95,232,540.08 | 455,927,069.38 |
(1) Purchase | 7,530,400.97 | 44,201,243.17 | 7,492,659.68 | 10,692,376.22 | 10,712,956.44 | 13,386,186.11 | 94,015,822.59 |
(2) Transfers from construction in progress | 193,573,662.50 | 83,057,734.27 | 1,817,747.33 | 1,615,748.72 | 81,846,353.97 | 361,911,246.79 | |
(3) Increase of enterprise consolidation | |||||||
3. Amount decreased in | 60,780,041.91 | 24,336,889.48 | 3,901,120.92 | 1,005,471.42 | 1,535,783.00 | 3,431,088.81 | 94,990,395.54 |
the reporting period | |||||||
(1) Disposals or retirements | 516,281.94 | 24,336,889.48 | 3,901,120.92 | 1,005,471.42 | 1,535,783.00 | 3,431,088.81 | 34,726,635.57 |
(2) Transferred into investment properties | 60,263,759.97 | 60,263,759.97 | |||||
4. Ending balance | 1,908,363,871.86 | 514,978,381.70 | 37,869,667.39 | 36,399,405.37 | 43,231,672.84 | 244,091,091.18 | 2,784,934,090.34 |
II. Accumulative depreciation | |||||||
1. Opening balance | 369,892,757.90 | 155,184,797.76 | 22,898,049.49 | 15,379,543.09 | 22,964,885.20 | 64,988,863.78 | 651,308,897.22 |
2. Amount increased in the reporting period | 84,914,679.78 | 38,466,255.99 | 4,439,128.89 | 3,134,060.55 | 6,407,368.70 | 46,161,195.37 | 183,522,689.28 |
(1) Depreciation provided during the year | 84,914,679.78 | 38,466,255.99 | 4,439,128.89 | 3,134,060.55 | 6,407,368.70 | 46,161,195.37 | 183,522,689.28 |
(2) Others | |||||||
3. Amount decreased in the reporting period | 2,034,805.47 | 6,464,286.55 | 3,706,050.67 | 842,246.58 | 1,044,998.04 | 3,025,752.64 | 17,118,139.95 |
(1) Disposals or retirements | 111,801.38 | 6,464,286.55 | 3,706,050.67 | 842,246.58 | 1,044,998.04 | 3,025,752.64 | 15,195,135.86 |
(2) Transferred into investment properties | 1,923,004.09 | 1,923,004.09 | |||||
4. Ending balance | 452,772,632.21 | 187,186,767.20 | 23,631,127.71 | 17,671,357.06 | 28,327,255.86 | 108,124,306.51 | 817,713,446.55 |
III. Provision for impairment | |||||||
1. Opening balance | 5,519,051.35 | 5,519,051.35 | |||||
2. Amount increased in | 4,929,182.19 | 6,374.31 | 20,546.55 | 85,113.04 | 5,041,216.09 |
the reporting period | |||||||
(1) Provision | 4,929,182.19 | 6,374.31 | 20,546.55 | 85,113.04 | 5,041,216.09 | ||
3. Amount decreased in the reporting period | 7,228,354.52 | 6,374.31 | 20,412.07 | 85,113.04 | 7,340,253.94 | ||
(1) Disposals or retirements | 7,228,354.52 | 6,374.31 | 20,412.07 | 85,113.04 | 7,340,253.94 | ||
4. Ending balance | 3,219,879.02 | 134.48 | 3,220,013.50 | ||||
IV. Book value | |||||||
1.Book value at the end of the reporting period | 1,455,591,239.65 | 324,571,735.48 | 14,238,539.68 | 18,728,048.31 | 14,904,282.50 | 135,966,784.67 | 1,964,000,630.29 |
2.Book value at the beginning of the reporting period | 1,398,147,092.40 | 251,352,444.63 | 11,380,079.14 | 9,515,210.15 | 9,473,865.48 | 87,300,776.13 | 1,767,169,467.93 |
(2) About temporarily idle fixed assets
"□ Applicable" "√ Not applicable"
(3) Fixed assets rented through finance lease
"□ Applicable" "√ Not applicable"
(4) Fixed assets leased through operating lease
"□ Applicable" "√ Not applicable"
(5) About fixed assets without title certificate
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Book value | The reason why the title certificate has not been granted |
Buildings | 6,143,202.01 | For self-built auxiliary function houses, it is unnecessary to apply for title certificate. |
Other notes:
"√ Applicable" "□ Not applicable"On December 31, 2021, the book value of the Group's fixed assets of houses and buildings withrestricted ownership was RMB 51,854,177.47 (December 31, 2020: RMB 56,311,395.08).
Disposal of fixed assets"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Ending balance | Opening balance |
Disposal of fixed assets | 2,085,074.02 | 14,337,068.21 |
Total | 2,085,074.02 | 14,337,068.21 |
22. Construction-in-progress
Items Presentation"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Ending balance | Opening balance |
Engineering supplies | 18,007,496.51 | |
Construction-in-progress | 96,123,598.65 | 47,995,478.09 |
Total | 114,131,095.16 | 47,995,478.09 |
Other notes:
"□ Applicable" "√ Not applicable"Construction-in-progress
(1) About construction-in-progress
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Ending balance | Opening balance | ||||
Book balance | Impairment reserve | Book value | Book balance | Impairment reserve | Book value | |
Aima Group Software | 35,596,259.61 | 35,596,259.61 | 12,090,511.86 | 12,090,511.86 | ||
Aima Group Engineering Works | 1,338,400.38 | 1,338,400.38 | ||||
Tianjin Sports moulds | 1,408,406.98 | 1,408,406.98 | 369,469.04 | 369,469.04 | ||
Henan Aima moulds | 729,606.65 | 729,606.65 | 6,621,681.44 | 6,621,681.44 | ||
Henan Aima machinery equipment | 1,945,749.80 | 1,945,749.80 | 1,801,980.20 | 1,801,980.20 | ||
Henan Aima appliance tools | 67,256.64 | 67,256.64 | ||||
Jiangsu Aima machinery equipment | 936,637.18 | 936,637.18 |
Jiangsu Aima moulds | 5,026,548.70 | 5,026,548.70 | 2,986,725.69 | 2,986,725.69 | ||
Jiangsu Aima software | 1,431,676.12 | 1,431,676.12 | 106,194.69 | 106,194.69 | ||
Jiangsu Aima appliance tools | 53,097.35 | 53,097.35 | ||||
Zhejiang Aima housing and buildings | 89,867.93 | 89,867.93 | ||||
Guangdong Aima machinery equipment | 10,564,885.68 | 10,564,885.68 | ||||
Tianjin Vehicle machinery equipment | 5,289,305.01 | 5,289,305.01 | 9,739,730.11 | 9,739,730.11 | ||
Tianjin Vehicle moulds | 880,088.49 | 880,088.49 | 3,547,787.58 | 3,547,787.58 | ||
Tianjin Vehicle engineering works | 2,655,991.45 | 2,655,991.45 | 6,891,351.54 | 6,891,351.54 | ||
Tianjin Vehicle office furniture | 275,748.98 | 275,748.98 | ||||
Xiaopa Technology moulds | 668,168.11 | 668,168.11 | ||||
Chongqing Vehicle office furniture | 389,380.40 | 389,380.40 | ||||
Chongqing Vehicle housing & buildings | 23,791,124.92 | 23,791,124.92 | ||||
Chongqing Vehicle machinery equipment | 2,682,300.92 | 2,682,300.92 | ||||
Chongqing Vehicle appliance tools | 303,097.35 | 303,097.35 | ||||
Guangxi Aima machinery equipment | 1,415,929.28 | 1,415,929.28 | ||||
Aima Group office furniture | 143,362.84 | 143,362.84 |
Aima Group electronic equipment | 1,309,734.56 | 1,309,734.56 | ||||
Henan Aima electronic equipment | 743,716.85 | 743,716.85 | ||||
Guangdong Aima office furniture | 34,823.01 | 34,823.01 | ||||
Guangdong Aima appliance tools | 55,398.23 | 55,398.23 | ||||
Xiaoma Network moulds | 79,203.54 | 79,203.54 | ||||
Xiaoma Network machinery equipment | 57,877.63 | 57,877.63 | ||||
Total | 96,123,598.65 | 96,123,598.65 | 47,995,478.09 | 47,995,478.09 |
(2) Movements of important construction-in-progress projects in the reporting period"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Project name | Budget | Opening balance | Addition | Transferred to the fixed assets | Other decreases | Ending balance | The proportion of projects investment accounted for budget (%) | Capital source |
Chongqing Vehicle factory building | 201,880,000.00 | 194,333,842.31 | 170,542,717.39 | 23,791,124.92 | 96% | Own fund | ||
Tianjin Vehicle equipment | 193,410,800.00 | 9,600,505.62 | 57,809,938.50 | 62,121,139.11 | 5,289,305.01 | 59% | Proceeds and own fund | |
Aima Group software system | 80,720,000.00 | 12,090,511.86 | 60,216,427.77 | 36,710,680.02 | 35,596,259.61 | 90% | Proceeds and own fund | |
Total | 476,010,800.00 | 21,691,017.48 | 312,360,208.58 | 269,374,536.52 | 64,676,689.54 | / | / |
(3) Provision for impairment of construction in progress in the reporting period"□ Applicable" "√ Not applicable"
Other notes"□ Applicable" "√ Not applicable"Engineering supplies
(4). About engineering supplies
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Ending balance | Opening balance | ||||
Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
Engineering supplies | 18,007,496.51 | 18,007,496.51 | ||||
Total | 18,007,496.51 | 18,007,496.51 |
23. Productive biological asset
(1) Productive biological asset by using the cost measurement model
"□ Applicable" "√ Not applicable"
(2)Productive biological asset by using the fair value measurement model
"□ Applicable" "√ Not applicable"Other notes"□ Applicable" "√ Not applicable"
24. Oil and Gas Assets
"□ Applicable" "√ Not applicable"
25. Right-of-use assets
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Buildings | Total |
I. Original book value: | ||
1. Opening balance | 56,116,227.00 | 56,116,227.00 |
2. Amount increased in the reporting period | 5,638,457.23 | 5,638,457.23 |
3. Amount decreased in the reporting period | 12,186,841.29 | 12,186,841.29 |
(1) Disposal | 12,186,841.29 | 12,186,841.29 |
4. Ending balance | 49,567,842.94 | 49,567,842.94 |
II. Accumulative depreciation | ||
1. Opening balance | ||
2. Amount increased in the reporting period | 13,543,970.77 | 13,543,970.77 |
(1) Depreciation provided during the year | 13,543,970.77 | 13,543,970.77 |
3. Amount decreased in the reporting period | 5,202,961.41 | 5,202,961.41 |
(1) Disposals | 5,202,961.41 | 5,202,961.41 |
4. Ending balance | 8,341,009.36 | 8,341,009.36 |
III. Provision for impairment | ||
1. Opening balance | ||
2. Amount increased in the reporting period | ||
(1) Provision | ||
3. Amount decreased in the reporting period | ||
(1) Disposal | ||
4. Ending balance | ||
IV. Book value | ||
1.Book value at the end of the reporting period | 41,226,833.58 | 41,226,833.58 |
2.Book value at the beginning of the reporting period | 56,116,227.00 | 56,116,227.00 |
26. Intangible assets
(1) About the intangible assets
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Land use rights | Software | Trademarks | Total |
I. Original book value: | ||||
1. Opening balance | 333,540,299.48 | 86,739,944.55 | 1,011,803.97 | 421,292,048.00 |
2. Amount increased in the reporting period | 39,140,380.39 | 39,140,380.39 | ||
(1) Purchase | 2,323,505.68 | 2,323,505.68 | ||
(2) Transfers from construction-in-process | 36,816,874.71 | 36,816,874.71 | ||
3. Amount decreased in the reporting period | 4,553,291.88 | 1,969,774.17 | 6,523,066.05 | |
(1) Disposal | 1,969,774.17 | 1,969,774.17 | ||
(2) Transferred into investment properties | 4,553,291.88 | 4,553,291.88 | ||
4. Ending balance | 328,987,007.60 | 123,910,550.77 | 1,011,803.97 | 453,909,362.34 |
II. Accumulative amortization | ||||
1. Opening balance | 50,242,850.18 | 54,046,280.80 | 787,460.84 | 105,076,591.82 |
2. Amount increased in the reporting period | 6,738,808.96 | 12,507,071.19 | 43,421.25 | 19,289,301.40 |
(1) Amortisation provided during the year | 6,738,808.96 | 12,507,071.19 | 43,421.25 | 19,289,301.40 |
3.Amount decreased in the reporting period | 622,283.21 | 1,908,311.90 | 2,530,595.11 | |
(1) Disposal | 1,908,311.90 | 1,908,311.90 | ||
(2) Transferred into investment properties | 622,283.21 | 622,283.21 | ||
4. Ending balance | 56,359,375.93 | 64,645,040.09 | 830,882.09 | 121,835,298.11 |
III. Provision for impairment | ||||
1. Opening balance | ||||
2. Amount increased in the reporting period | ||||
(1) Provision | ||||
3.Amount decreased in the reporting period | ||||
(1) Disposal | ||||
4. Ending balance | ||||
IV. Book value | ||||
1.Book value at the end of the reporting period | 272,627,631.67 | 59,265,510.68 | 180,921.88 | 332,074,064.23 |
2.Book value at the beginning of the reporting period | 283,297,449.30 | 32,693,663.75 | 224,343.13 | 316,215,456.18 |
(2) About the land use rights without title certificate
"□ Applicable" "√ Not applicable"Other notes:
As at December 31, 2021, the net book value of the land use rights with restricted ownership was RMB30,632,651.23 (December 31, 2020: RMB 31,385,913.15).
27. Development expenses
"□ Applicable" "√ Not applicable"
28. Goodwill
(1). Original book value of the goodwill
"□ Applicable" "√ Not applicable"
(2). Provision for impairment of the goodwill
"□ Applicable" "√ Not applicable"
(3). Relevant information of the assets group or portfolio of the assets groups where the goodwillis located"□ Applicable" "√ Not applicable"
(4). Explain the confirmation method of goodwill impairment test process, key parameters (suchas predicted period growth rate, stable period growth rate, profit margin, discount rate,predicted period, etc., if applicable) and goodwill impairment loss."□ Applicable" "√ Not applicable"
(5). Influence of goodwill impairment test
"□ Applicable" "√ Not applicable"Other notes"□ Applicable" "√ Not applicable"
29. Long-term prepaid expenses
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Opening balance | Amount increased in the reporting period | Amount amortized in the reporting period | Other decrease | Ending balance |
Refurbishment payment | 2,049,861.61 | 13,100,727.52 | 1,898,421.12 | 13,252,168.01 | |
Payment for the improvement of the rented fixed assets | 3,504,970.99 | 6,148,397.91 | 2,940,498.81 | 6,712,870.09 | |
Others | 6,247,250.64 | 6,593,714.77 | 3,411,684.88 | 9,429,280.53 | |
Total | 11,802,083.24 | 25,842,840.20 | 8,250,604.81 | 29,394,318.63 |
30. Deferred tax assets/liabilities
(1) Deferred tax asset before being offset
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Ending balance | Opening balance | ||
Deductible temporary differences | Deferred tax assets | Deductible temporary differences | Deferred tax Assets | |
Deductible loss | 251,596,721.32 | 62,899,180.33 | 25,069,318.56 | 6,267,329.64 |
Deferred income | 118,883,340.46 | 23,421,534.15 | 95,775,195.25 | 23,943,798.81 |
Bad debt provision | 28,343,735.63 | 4,322,808.35 | 34,304,685.11 | 8,577,078.83 |
Provision of inventories | 4,730,148.62 | 810,887.28 | 634,297.86 | 158,574.46 |
Depreciation book-tax difference of fixed assets | 23,503,828.28 | 5,875,957.07 | 17,266,262.52 | 4,316,565.63 |
Provision for impairment of fixed assets | 3,220,013.50 | 483,002.03 | 5,519,051.35 | 1,379,762.84 |
Investment losses of associates | 29,920,457.76 | 7,480,114.44 | ||
Sales rebates and rewards | 186,926,832.16 | 39,381,257.94 | 212,115,931.21 | 53,073,246.12 |
Accrued expenses | 7,155,963.27 | 1,073,394.49 | 7,170,508.20 | 1,792,627.05 |
book-tax difference based on the new leases standard | 2,275,394.88 | 568,848.72 | ||
Total | 656,556,435.88 | 146,316,984.80 | 397,855,250.06 | 99,508,983.38 |
(2) Deferred tax liabilities before being offset
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Ending balance | Opening balance | ||
Taxable temporary differences | Deferred tax Liabilities | Taxable temporary differences | Deferred tax Liabilities | |
Accrued investment income from financial products | 234,362,931.94 | 57,782,106.18 | 162,218,448.75 | 40,515,420.96 |
Accrued fund possession fee of deferred payment | 642,997.45 | 122,469.75 | 599,354.95 | 149,838.74 |
Investment profit or loss of associates | 9,946,576.25 | 2,486,644.06 | ||
Total | 235,005,929.39 | 57,904,575.93 | 172,764,379.95 | 43,151,903.76 |
(3) Net amount of deferred tax assets/liabilities after being offset
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Offset amount at the end of the reporting period | Net amount at the end of the reporting period | Offset amount at the beginning of the reporting period | Net amount at the beginning of the reporting period |
Deferred tax assets | 57,473,351.49 | 88,843,633.31 | 43,143,163.50 | 56,365,819.88 |
Deferred tax liability | 57,473,351.49 | 431,224.44 | 43,143,163.50 | 8,740.26 |
(4) Statement of deferred tax assets not recognized
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Ending balance | Opening balance |
Deductible temporary differences | 12,860.00 | |
Deductible tax losses | 16,775,342.31 |
Total | 16,788,202.31 |
(5) Unrecognised deferred tax assets arising from deductible tax losses will expire in the following
years"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Year | Amount at the end of the reporting period | Amount at the year beginning | Remarks |
To expire in 2026 | 16,788,202.31 | ||
Total | 16,788,202.31 | / |
Other notes:
"□ Applicable" "√ Not applicable"
31. Other non-current assets
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Ending balance | Opening balance | ||||
Book balance | Book value | Book balance | Book value | |||
Prepayment o equipment& engineering projects | 22,982,955.66 | 22,982,955.66 | 10,177,347.51 | 10,177,347.51 | ||
Prepayment of equity investment | 100,000,000.00 | 100,000,000.00 | ||||
Prepayment of properties | 18,944,601.00 | 18,944,601.00 | ||||
3-year fixed deposit receipt | 4,919,789,013.47 | 4,919,789,013.47 | 3,273,348,328.77 | 3,273,348,328.77 | ||
Total | 4,942,771,969.13 | 4,942,771,969.13 | 3,402,470,277.28 | 3,402,470,277.28 |
Other notes:
On December 31, 2021, the Group issued bank acceptance notes with three-year fixed depositcertificates of RMB 4,700,000,000.00 as the pledge (December 31, 2020: RMB 4,000,000,000.00).
32. Short-term borrowings
(1) Classification of short-term borrowings
"□ Applicable" "√ Not applicable"
(2) Short-term borrowings overdue but still remaining outstanding
"□ Applicable" "√ Not applicable"Short-term borrowings overdue but still remaining outstanding"□ Applicable" "√ Not applicable"Other notes
"□ Applicable" "√ Not applicable"
33. Transactional financial liabilities
"□ Applicable" "√ Not applicable"
34. Derivative financial liabilities
"□ Applicable" "√ Not applicable"
35. Notes payable
(1) Presentation of notes payable
?Applicable □Not applicable
In:Yuan Currency:RMB
Categories | Ending balance | Opening balance |
Bank acceptance notes | 4,926,337,711.40 | 4,555,247,953.70 |
Total | 4,926,337,711.40 | 4,555,247,953.70 |
36. Accounts payable
(1) Presentation of accounts payable
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Ending balance | Opening balance |
Within 1 year (with 1 year inclusive) | 2,125,159,471.49 | 1,370,223,440.28 |
1 to 2 years (with 2 years inclusive) | 2,405,817.77 | 7,991,541.59 |
2 to 3 years (with 3 years inclusive) | 2,807,664.09 | 2,039,922.64 |
Over 3 years | 1,740,418.19 | 1,758,568.32 |
Total | 2,132,113,371.54 | 1,382,013,472.83 |
(2) Significant accounts payable with age exceeding 1 year
"□ Applicable" "√ Not applicable"Other notes"□ Applicable" "√ Not applicable"
37. Receipts in advance
(1) Presentation of receipts in advance
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Ending balance | Opening balance |
Factory building rent | 13,125,994.89 | |
Total | 13,125,994.89 |
(2) Significant receipts in advance with age exceeding 1 year
"□ Applicable" "√ Not applicable"Other notes
"□ Applicable" "√ Not applicable"
38. Contract liabilities
(1) About contract liabilities
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Ending balance | Opening balance |
Advances from sales of goods | 286,324,441.22 | 73,560,114.88 |
Sales rebates | 186,926,832.16 | 212,115,931.21 |
Advances from service | 10,284,351.19 | 32,794,963.80 |
Total | 483,535,624.57 | 318,471,009.89 |
(2)The amount involved in the significant change of the book value and the cause during thereporting period"□ Applicable" "√ Not applicable"Other notes:
"√ Applicable" "□ Not applicable"On December 31, 2021, the balance of sales rebates payable that belonging to the parent companywas RMB 101,065,324.67 (December 31, 2020: RMB 206,201,090.24)
39. Employee benefits payable
(1) Employee benefits payable
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Opening balance | Increase in the reporting period | Decrease in the reporting period | Ending balance |
I. Short-term employee benefits | 89,154,510.59 | 959,578,506.59 | 935,510,336.39 | 113,222,680.79 |
II. Post-employment benefits-defined contribution plans | 58,819,118.02 | 58,457,176.11 | 361,941.91 | |
III. Dismissal compensation | ||||
IV. Other benefit due within a year | ||||
Total | 89,154,510.59 | 1,018,397,624.61 | 993,967,512.50 | 113,584,622.70 |
(2) Presentation of short term remuneration
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Opening balance | Increase in the reporting period | Decrease in the reporting period | Ending balance |
I. Wages or salaries, bonuses, allowances and subsidies | 85,152,018.23 | 833,070,996.84 | 809,255,551.34 | 108,967,463.73 |
II. Staff welfare | 3,270,388.21 | 74,038,140.06 | 73,738,055.08 | 3,570,473.19 |
III. Social security contributions | 460,721.07 | 33,281,180.36 | 33,559,789.88 | 182,111.55 |
Including: Medical insurance | 460,721.07 | 29,287,253.70 | 29,589,817.93 | 158,156.84 |
Work injury insurance | 2,133,966.58 | 2,111,611.47 | 22,355.11 | |
Maternity insurance | 1,859,960.08 | 1,858,360.48 | 1,599.60 | |
IV. Housing fund | 233,279.00 | 18,516,710.22 | 18,368,649.22 | 381,340.00 |
V. Union running costs and employee education costs | 38,104.08 | 671,479.11 | 588,290.87 | 121,292.32 |
Total | 89,154,510.59 | 959,578,506.59 | 935,510,336.39 | 113,222,680.79 |
(3) Presentation of the defined contribution plan
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Opening balance | Increase in the reporting period | Decrease in the reporting period | Ending balance |
1. Pension insurance | 57,022,942.01 | 56,673,119.73 | 349,822.28 | |
2. Unemployment insurance | 1,796,176.01 | 1,784,056.38 | 12,119.63 | |
Total | 58,819,118.02 | 58,457,176.11 | 361,941.91 |
Other notes:
"□ Applicable" "√ Not applicable"
40. Payable taxes
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Ending balance | Opening balance |
Value-added tax | 3,743,717.32 | 1,144,240.40 |
Corporate income tax | 47,385,304.15 | 19,957,439.86 |
Personal income tax | 2,287,395.24 | 1,626,471.67 |
Urban maintenance and construction tax | 512,943.01 | 87,633.27 |
Land appreciation tax | 631,354.38 | 527,983.81 |
Stamp duty | 1,114,037.62 | 313,191.88 |
Education Surcharge | 389,398.48 | 62,595.15 |
Others | 2,237,337.37 | 2,258,364.69 |
Total | 58,301,487.57 | 25,977,920.73 |
41. Other payables
Items Presentation"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Ending balance | Opening balance |
Interest payable | ||
Dividends payable | ||
Other payables | 478,360,431.77 | 446,629,221.36 |
Total | 478,360,431.77 | 446,629,221.36 |
Other notes:
"□ Applicable" "√ Not applicable"Interest payable
(1) Presentation of classification
"□ Applicable" "√ Not applicable"Dividends payable
(2) Presentation of classification
"□ Applicable" "√ Not applicable"Other payables
(1) Other payables stated based on nature of fund
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Ending balance | Opening balance |
Deposits | 290,556,463.25 | 276,485,952.86 |
Payable of equipment & engineering projects | 12,069,100.76 | 15,236,343.47 |
Expenses accrued | 45,047,280.28 | 114,024,247.76 |
Daily expenses | 17,804,187.48 | 18,882,677.27 |
Government subsidy to be refunded | 22,000,000.00 | |
Money for subscription of restricted shares | 112,883,400.00 | |
Total | 478,360,431.77 | 446,629,221.36 |
(2) Significant other payables with age exceeding 1 year
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Ending balance | Cause of failure in repayment or carry-over |
Security deposit of suppliers | 145,402,393.02 | The cash pledge has not been refunded as the cooperation is going on |
Security deposit of distributors | 47,411,457.50 | The cash pledge has not been refunded as the cooperation is going on |
Total | 192,813,850.52 | / |
Other notes:
"□ Applicable" "√ Not applicable"
42. Held-for-sale liabilities
"□ Applicable" "√ Not applicable"
43. Non-current liabilities due within a year
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Ending balance | Opening balance |
Lease liabilities due within one year | 5,923,801.00 | 9,424,674.23 |
Total | 5,923,801.00 | 9,424,674.23 |
44. Other current liabilities
About other current liabilities"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Ending balance | Opening balance |
Pending output VAT | 39,990,259.74 | 12,219,830.60 |
Total | 39,990,259.74 | 12,219,830.60 |
Increase/decrease of the short term bonds payable:
"□ Applicable" "√ Not applicable"Other notes:
"□ Applicable" "√ Not applicable"
45. Long-term borrowings
(1) Classification of long-term borrowings
"□ Applicable" "√ Not applicable"
Other notes, including the interest rate interval:
"□ Applicable" "√ Not applicable"
46. Bonds payable
(1) Bonds payable
"□ Applicable" "√ Not applicable"
(2)Increase/Decrease of bonds payable (excluding other financial instruments classified asfinancial liabilities, such as preferred shares, perpetual bonds, etc.)"□ Applicable" "√ Not applicable"
(3) Note to the conditions and time of share conversion of convertible company bonds"□ Applicable" "√ Not applicable"
(4) Note to other financial instruments classified as financial liabilities
Basic information on the outstanding other financial instruments, including preferred shares, perpetualbonds, etc. at the end of the reporting period"□ Applicable" "√ Not applicable"
Statement of movement of the outstanding other financial instruments, including preferred shares,perpetual bonds, etc. at the end of the reporting period"□ Applicable" "√ Not applicable"
Note to the basis of other financial instruments classified as financial liabilities"□ Applicable" "√ Not applicable"Other notes:
"□ Applicable" "√ Not applicable"
47. Lease liabilities
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Ending balance | Opening balance |
Lease liabilities | 46,589,311.07 | 51,927,894.44 |
Total | 46,589,311.07 | 51,927,894.44 |
48. Long-term accounts payable
Items Presentation"□ Applicable" "√ Not applicable"Other notes:
"□ Applicable" "√ Not applicable"Long-term accounts payable
(1) Long term accounts payable stated based on the nature
"□ Applicable" "√ Not applicable"Special accounts payable
(2) Special accounts payable stated based on the nature
"□ Applicable" "√ Not applicable"
49. Long term payroll payable to the employees
"□ Applicable" "√ Not applicable"
50. Predicted liabilities
"□ Applicable" "√ Not applicable"
51. Deferred income
About deferred income"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Opening balance | Increase in the reporting period | Decrease in the reporting period | Ending balance | Cause of formation |
Government subsidies | 73,775,195.25 | 50,960,200.08 | 5,852,054.87 | 118,883,340.46 | Related with assets |
Total | 73,775,195.25 | 50,960,200.08 | 5,852,054.87 | 118,883,340.46 | / |
Items involving government subsidies:
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Liabilities | Opening balance | Amount of newly added subsidy in the | Amount counted to the non- | Amount counted to the other income in | Other changes | Ending balance | Related with assets/related with income |
reporting period | operating income in the reporting period | the reporting period | |||||
Subsidy of infrastructure construction to Henan Aima | 17,488,570.58 | 410,542.44 | 17,078,028.14 | Related with assets | |||
Subsidy for asset purchase by Jiangsu Aima | 1,333,333.32 | 111,111.12 | 1,222,222.20 | Related with assets | |||
Subsidy for technology improvement to Jiangsu Aima | 1,463,855.09 | 246,000.00 | 724,592.16 | 985,262.93 | Related with assets | ||
Subsidy for construction of high standard factory buildings to Jiangsu Aima | 394,736.91 | 26,315.76 | 368,421.15 | Related with assets | |||
Subsidy of equipment and production line to Aima Technology | 733,333.42 | 399,999.96 | 333,333.46 | Related with assets | |||
Subsidy for technology improvement to Aima Technology | 60,352.78 | 1,500,000.00 | 86,049.70 | 1,474,303.08 | Related with assets | ||
Subsidy of environmental protection equipment for treatment of baking varnish waste gas to Aima Technology | 6,253,333.51 | 1,119,999.96 | 5,133,333.55 | Related with assets | |||
Subsidy of infrastructure | 29,210,576.59 | 743,568.96 | 28,467,007.63 | Related with assets |
construction to Aima Technology | |||||||
Subsidy of infrastructure construction to Tianjin Aima | 13,164,341.37 | 288,270.24 | 12,876,071.13 | Related with assets | |||
Subsidy of transformer substation cables to Tianjin Aima | 889,994.40 | 96,215.64 | 793,778.76 | Related with assets | |||
Special subsidy for intelligent manufacturing to Tianjin Aima | 1,960,000.00 | 840,000.00 | 318,735.88 | 2,481,264.12 | Related with assets | ||
Subsidy for technology improvement to Henan Aima | 486,265.49 | 189,542.24 | 130,565.49 | 545,242.24 | Related with assets | ||
Subsidy for technology improvement to Zhejiang Aima | 336,501.79 | 53,325.00 | 283,176.79 | Related with assets | |||
Subsidy of equipment and production line to Guangxi Aima | 22,000,000.00 | 1,342,762.56 | 20,657,237.44 | Related with assets | |||
Subsidy of infrastructure construction to Chongqing Vehicle | 21,000,000.00 | 21,000,000.00 | Related with assets | ||||
Financial preference policy fund to Chongqing Vehicle | 5,184,657.84 | 5,184,657.84 | Related with assets |
Other notes:
"□ Applicable" "√ Not applicable"
52. Other non-current liabilities
"□ Applicable" "√ Not applicable"
53. Share capital
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Opening balance | Increase/Decrease (+/ -) | Ending balance | |||||
Shares issued | Bonus shares | Capital reserves\ surplus reserves turned to shares | Others | Sub-total | |||
Total Shares | 338,660,003 | 65,000,000 | 65,000,000 | 403,660,003 |
Other notes:
On May 20, 2021, with the approval of the China Securities Regulatory Commission by the “OfficialReply on Approving the Initial Public Offering of AIMA Technology Group Co,. LTD." (Zheng Jian Xu Ke[2021] No. 1775), the Company approved the public issuance of RMB common shares no more than65,000,000 shares. The Company raised total proceeds amounting to RMB 1,810,900,000.00 from thispublic offering; after deduction of the issuance expenses (with taxes and duties exclusive), the net proceedsamounted to RMB 1,680,863,800.00, of which RMB 65,000,000.00 was included in the share capital andRMB 1,615,863,800.00 was included in the capital reserves.
54. Other equity instruments
(1) Basic information on the outstanding other financial instruments, including preferred shares,
perpetual bonds, etc. at the end of the reporting period"□ Applicable" "√ Not applicable"
(2)Statement of movement of the outstanding other financial instruments, including preferred
shares, perpetual bonds, etc. at the end of the reporting period"□ Applicable" "√ Not applicable"Note to their increase/decrease and the cause(s) of their movement of other equity instruments in thereporting period and the basis for the corresponding accounting treatment:
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
55.Capital reserves
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Opening balance | Increase in the reporting period | Decrease in the reporting period | Ending balance |
Capital premium (capital stock premium) | 183,060,484.43 | 1,615,863,800.00 | 1,798,924,284.43 | |
Change of the shareholders’ equity shares | -1,085,051.73 | 204,145.67 | -880,906.06 | |
Share-based payment | 137,643,460.94 | 137,643,460.94 | ||
Total | 319,618,893.64 | 1,616,067,945.67 | 1,935,686,839.31 |
56.Treasury shares
"□ Applicable" "√ Not applicable"
57.Other comprehensive income
"□ Applicable" "√ Not applicable"
58.Special reserves
"□ Applicable" "√ Not applicable"
59.Surplus reserves
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Opening balance | Increase in the reporting period | Decrease in the reporting period | Ending balance |
Statutory surplus reserve | 189,936,412.55 | 11,893,588.95 | 201,830,001.50 | |
Total | 189,936,412.55 | 11,893,588.95 | 201,830,001.50 |
60. Retained earnings
?Applicable □Not applicable
In:Yuan Currency:RMB
Items | Reporting period | Previous period |
Retained earnings at the end of the previous period before the adjustment | 1,781,546,043.16 | 1,183,021,458.81 |
Total retained earnings under adjustment at the beginning of the reporting year (adjustment up +, adjustment down -) | ||
After adjustment: Retained earnings at the beginning of the reporting period | 1,781,546,043.16 | 1,183,021,458.81 |
Plus: Net profit attributable to owners of the parent | 663,998,092.90 | 598,524,584.35 |
Less: Appropriation to statutory surplus reserves | 11,893,588.95 | |
Appropriation to discretionary surplus reserves | ||
Appropriation to general risks reserves | ||
Cash dividends declared | ||
Dividends converted to capital | ||
Retained earnings at the end of the reporting period | 2,433,650,547.11 | 1,781,546,043.16 |
Statement of adjustment of retained earnings at the beginning of the reporting period:
1. The amount involved in the retroactive adjustment according to the ASBEs and the relevant newprovisions influencing the retained earnings at the beginning of the reporting period was RMB 0.00.
2. The amount involved in change of the accounting policy influencing the retained earnings at thebeginning of the reporting period was RMB 0.00.
3. The amount involved in correction of the significant accounting errors influencing the retainedearnings at the beginning of the reporting period was RMB0.00.
4. The amount involved in change of the consolidation scope caused by the common controlinfluencing the retained earnings at the beginning of the reporting period was RMB0.00.
5. The total amount involved in other adjustments influencing the retained earnings at the beginning ofthe reporting period was RMB0.00 .
61.Operating revenue and cost of sales
(1) Operating revenue and costs of sales
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Amount incurred in the reporting period | Amount incurred in the previous period | ||
Income | Cost | Income | Cost | |
Primary business | 15,264,913,767.38 | 13,491,387,679.85 | 12,788,815,457.84 | 11,337,825,139.93 |
Other businesses | 133,797,103.34 | 102,218,349.71 | 115,770,641.27 | 93,396,842.34 |
Total | 15,398,710,870.72 | 13,593,606,029.56 | 12,904,586,099.11 | 11,431,221,982.27 |
(2)Revenue arising from contracts
"√ Applicable" "□ Not applicable"
In:Yuan Currency: RMB
Classification of Contracts | Total |
Types of commodities | |
Revenue from electric bicycles, electric Tricycle, bicycles and accessories | 15,264,913,767.38 |
Other revenue | 94,963,766.47 |
Classification based on the operation regions | |
Domestic | 15,186,584,619.80 |
Overseas | 173,292,914.05 |
Time classification based on transfer of commodities | |
Sales of goods | 15,264,913,767.38 |
Revenue from materials | 68,885,569.41 |
Others | 6,634,992.65 |
After-sale service revenue | 19,443,204.41 |
Total | 15,359,877,533.85 |
Description of revenue arising from contracts"□ Applicable" "√ Not applicable"
(3)Information about the Group’s performance obligations
"√ Applicable" "□ Not applicable"
1) Sales of goods
The performance obligation is satisfied upon delivery of the products to customers. For sales bydistributors, most customers need to prepay the price, and the contract price for some customers usuallyexpires within 1 year after delivery of the product.
2) After-sale service
The performance obligation is satisfied over time as services are rendered. The duration of the after-sales service contract is 1 year, and the settlement is based on the time of occurrence, and customersusually need to pay in advance before the after-sales service is provided.
(4) Information about apportioning to the residual performance obligations"√ Applicable" "□ Not applicable"
At the end of the reporting period, the amount of revenue corresponding to the performance obligationsof the contracts which have been signed, but not yet performed or not yet completed is RMB296,608,792.41.
Other notes:
The revenue recognized in the current year included in the book value of contract liabilities at thebeginning of the year is as follows:
In: Yuan Currency: RMB
Items | 2021 | 2020 |
Sales of goods | 106,355,078.68 | 171,836,397.15 |
62.Taxes and surcharges
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Amount incurred in the reporting period | Amount incurred in the previous period |
Urban maintenance and construction tax | 13,946,140.59 | 14,707,842.02 |
Education Surcharge | 6,192,599.61 | 6,398,032.22 |
Local education Surcharge | 4,128,399.74 | 4,265,354.81 |
Real estate tax | 17,876,192.00 | 15,787,632.66 |
Land use tax | 3,534,624.49 | 3,142,517.23 |
Tax on using vehicle and boat | 53,600.04 | 56,250.77 |
Stamp duty | 9,890,360.61 | 8,077,288.71 |
Others | 526,668.97 | 191,048.40 |
Total | 56,148,586.05 | 52,625,966.82 |
63.Selling expenses
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Amount incurred in the reporting period | Amount incurred in the previous period |
Employee benefits | 257,554,844.33 | 138,866,037.03 |
Advertisement and propaganda expenses | 111,889,907.42 | 103,467,658.68 |
Business travel expenses | 35,916,040.16 | 49,683,131.11 |
Transportation expenses | 41,223,042.77 | 35,406,642.89 |
Consulting service | 41,336,729.66 | 25,175,036.70 |
Others | 62,684,726.64 | 46,186,351.83 |
Total | 550,605,290.98 | 398,784,858.24 |
64. Administrative expenses
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Amount incurred in the reporting period | Amount incurred in the previous period |
Employee benefits | 150,147,109.18 | 146,810,988.81 |
Depreciation and amortization | 58,312,277.30 | 47,262,407.94 |
Consulting services | 37,096,614.25 | 13,434,863.34 |
Others | 71,038,597.63 | 58,042,864.56 |
Total | 316,594,598.36 | 265,551,124.65 |
65.Research and development expenses
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Amount incurred in the reporting period | Amount incurred in the previous period |
Employee benefits | 154,206,183.20 | 86,391,463.83 |
Depreciation and amortization | 52,553,979.40 | 36,445,717.09 |
Professional service fees | 179,006,416.22 | 103,844,878.60 |
Others | 18,317,549.09 | 12,758,103.00 |
Total | 404,084,127.91 | 239,440,162.52 |
66.Financial expenses
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Amount incurred in the reporting period | Amount incurred in the previous period |
Interest income | -264,701,993.37 | -150,694,536.85 |
Interest expenses | 1,869,959.31 | 10,954,710.98 |
Service charge expenses | 1,164,295.65 | 2,305,591.69 |
Foreign exchange differences | 534,069.84 | 2,338,295.06 |
Total | -261,133,668.57 | -135,095,939.12 |
67.Other income
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Amount incurred in the reporting period | Amount incurred in the previous period |
Government subsidies related to the ordinary course of business | 20,852,054.87 | 28,975,492.28 |
Fees refunded for individual income tax withheld | 1,295,995.29 | |
Others | 524,226.45 | 160,854.63 |
Total | 22,672,276.61 | 29,136,346.91 |
Other notes:
Government subsidies related to daily activities included in other income
Items | Amount incurred in the reporting period | Amount incurred in the previous period | Related with assets/income |
Subsidy of infrastructure construction to Aima Technology | 743,568.96 | 743,568.96 | Related with assets |
Subsidy of environmental protection equipment for treatment of baking varnish waste gas to Aima Technology | 1,119,999.96 | 1,119,999.96 | Related with assets |
Subsidy of equipment and production line to Aima Technology | 399,999.96 | 399,999.96 | Related with assets |
Subsidy for technology improvement to Aima Technology | 86,049.70 | 24,141.48 | Related with assets |
Subsidy of infrastructure construction to Tianjin Vehicle | 288,270.24 | 288,270.24 | Related with assets |
Subsidy of transformer substation cables to Tianjin Aima | 96,215.64 | Related with assets | |
Subsidy for intelligent manufacturing to Tianjin Aima | 318,735.88 | 8,017.97 | Related with assets |
Subsidy of infrastructure construction to Henan Aima | 410,542.44 | 410,542.44 | Related with assets |
Subsidy for technology improvement to Henan Aima | 130,565.49 | 115,718.04 | Related with assets |
Subsidy for asset purchase by Jiangsu Aima | 111,111.12 | 111,111.12 | Related with assets |
Subsidy for technology improvement to Jiangsu Aima | 724,592.16 | 589,042.10 | Related with assets |
Subsidy for construction of high standard factory buildings to Jiangsu Aima | 26,315.76 | 26,315.76 | Related with assets |
Subsidy for technology improvement to Zhejiang Aima | 53,325.00 | 79,764.25 | Related with assets |
Logistics subsidy to Guangxi Aima | 15,000,000.00 | Related with income | |
Investment construction subsidy to Guangxi Aima | 1,342,762.56 | Related with assets | |
Intelligent manufacture subsidy to Aima Technology | 2,200,000.00 | Related with income | |
Industrial development economy subsidy to Jiangsu Aima | 8,450,000.00 | Related with income | |
Subsidy of infrastructure construction to Zhejiang Aima | 14,409,000.00 | Related with income | |
Total | 20,852,054.87 | 28,975,492.28 |
68.Investment income
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Amount incurred in the reporting period | Amount incurred in the previous period |
Long-term equity investment income under the equity method | -39,867,033.98 | 10,372,839.35 |
Gains from disposal of long-term equity investment | 395,864.38 | |
Return on investment during the holding of financial assets held for trading | 1,200,000.00 | |
Return on investment from financial products | 21,896,185.97 | 61,478,357.15 |
Total | -16,374,983.63 | 71,851,196.50 |
69. Net exposure hedge income
"□ Applicable" "√ Not applicable"
70. Fair value gains or losses
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Source of income arising from change in fair value | Amount incurred in the reporting period | Amount incurred in the previous period |
Financial assets held for trading | 9,978,187.68 | 12,219,498.91 |
Total | 9,978,187.68 | 12,219,498.91 |
71. Credit impairment losses
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Amount incurred in the reporting period | Amount incurred in the previous period |
Impairment loss for accounts receivable | 7,759,504.13 | -4,130,673.81 |
Impairment loss for other receivables | -1,798,647.87 | 8,096,605.49 |
Total | 5,960,856.26 | 3,965,931.68 |
72. Impairment losses of assets
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Amount incurred in the reporting period | Amount incurred in the previous period |
I. Loss from impairment of assets | ||
II. Loss for write-down of inventories and Impairment loss for contract assets | -6,516,185.89 | -679,328.75 |
III. Impairment loss for long-term equity investments |
IV. Impairment loss for investment properties | ||
V. Impairment loss for fixed assets | -5,041,216.09 | |
VI. Impairment loss for engineering supplies | ||
VII. Impairment loss for construction in progress | ||
VIII. Impairment loss for productive biological asset | ||
IX. Impairment loss for oil and gas assets | ||
X. Impairment loss for intangible assets | ||
XI. Impairment loss for goodwill | ||
XII. Others | ||
Total | -11,557,401.98 | -679,328.75 |
73. Gains or losses on disposal of non-current assets
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Amount incurred in the reporting period | Amount incurred in the previous period |
Loss on disposal of fixed assets | -10,592,015.11 | -4,371,284.89 |
Total | -10,592,015.11 | -4,371,284.89 |
74. Non-operating income
About non-operating income"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Amount incurred in the reporting period | Amount incurred in the previous period | Amount counted to the current non-operating profit or loss |
Government subsidies | 11,622,656.94 | 12,688,689.53 | 11,622,656.94 |
Liquidated damage income | 8,483,131.36 | 4,474,161.12 | 8,483,131.36 |
Others | 10,581,706.10 | 8,972,908.02 | 10,581,706.10 |
Total | 30,687,494.40 | 26,135,758.67 | 30,687,494.40 |
Government subsidy counted to the profit or loss."√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Subsidy items | Amount incurred in the reporting period | Amount incurred in the previous period | Related with assets/related with income |
Subsidy for stabilizing employment | 4,975,484.71 | 6,319,781.27 | Related with income |
Fund for air pollution prevention and control | 1,810,000.00 | Related with income | |
Well-known trademark award to Aima Group | 1,000,000.00 | Related with income | |
Guangdong special technology improvement fund | 979,300.00 | Related with income | |
Tianjin Vehicle R&D Award | 848,400.00 | Related with income | |
Jiangsu Party Construction engineering subsidy | 500,000.00 | Related with income | |
Zhejiang Aima Quality Award | 300,000.00 | Related with income | |
Tianjin Vehicle “One Belt One Road”Special Subsidy | 300,000.00 | Related with income | |
Guangxi Work and Production Resumption Financial Subsidy | 145,395.26 | Related with income | |
Foreign trade special fund | 120,000.00 | Related with income | |
Vocational skill training subsidy | 505,000.00 | Related with income | |
Special subsidy for listing to Aima Group | 3,000,000.00 | Related with income | |
Special technology improvement fund for economic high quality development to Guangdong Aima | 738,000.00 | Related with income | |
Subsidy from the Science and Technology Department of Guangxi Zhuang Autonomous Region | 500,000.00 | Related with income | |
Jiangsu Industry Transformation and Upgrading Fund | 500,000.00 | Related with income | |
Guangdong Key Industry Enterprise Market Development and Support Project Fund | 386,100.00 | Related with income | |
Jiangsu Financial Talents Subsidy | 170,000.00 | Related with income | |
Award fund for supporting enterprises to strengthen income scale granted by the Commerce Bureau of Taizhou City, Jiangsu Province | 169,700.00 | Related with income | |
Modern Industry Development Fund Subsidy granted by the Industry and Information Bureau of Xishan District | 150,000.00 | Related with income | |
Other government subsidies | 528,372.23 | 365,813.00 | Related with income |
Total | 11,622,656.94 | 12,688,689.53 |
Other notes:
"□ Applicable" "√ Not applicable"
75. Non-operating expenses
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Amount incurred in the reporting period | Amount incurred in the previous period | Amount counted to the current non-operating profit or loss |
Total losses on damage and retirement of non-current assets | 2,121,076.58 | 4,570,090.57 | 2,121,076.58 |
Where: Loss on disposal of fixed assets | |||
Loss on disposal of intangible assets | |||
Product responsibility expenditures | 3,465,694.43 | ||
Donation expenditures for public interest | 3,987,935.98 | 571,200.00 | 3,987,935.98 |
Others | 5,217,685.30 | 2,629,673.62 | 5,217,685.30 |
Total | 11,326,697.86 | 11,236,658.62 | 11,326,697.86 |
76. Income tax expenses
(1) Statement of income tax expenses
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Amount incurred in the reporting period | Amount incurred in the previous period |
Current tax | 122,717,324.96 | 169,034,882.19 |
Deferred tax | -32,184,981.35 | 203,731.89 |
Total | 90,532,343.61 | 169,238,614.08 |
(2) Process of adjustment of accounting profit and income tax expenses"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Amount incurred in the reporting period |
Total profit | 758,253,622.80 |
Tax at the statutory or applicable tax rate | 189,563,405.70 |
Effect of different tax rates for some subsidiaries | -49,706,425.11 |
Adjustments in respect of current tax of previous periods | -2,268,976.88 |
Income not subject to tax |
Expenses not deductible for tax | 410,123.73 |
The effect of using deductible losses of deferred income tax assets that have not been recognized in the previous period | |
Influence from the offsetable provisional difference or offsetable loss of the unrecognized deferred income tax asset at the end of the reporting period | 1,038,073.64 |
Effect on opening deferred tax of change in the tax rate | 6,025,294.75 |
Tax preferences such as additional deduction for R&D expenses | -54,529,152.22 |
Income tax expenses | 90,532,343.61 |
Other notes:
"□ Applicable" "√ Not applicable"
77. Other comprehensive income
"□ Applicable" "√ Not applicable"
78. Cash Flow Statement Items
(1) Other cash received relating to operating activities
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Amount incurred in the reporting period | Amount incurred in the previous period |
Government subsidy and money in connection with government subsidy | 57,403,078.76 | 31,784,756.53 |
Liquidated damage income | 8,483,131.36 | 4,474,161.12 |
Collection of security deposit and advance payment | 13,500,510.39 | 21,045,105.85 |
Bank deposit interest | 69,232,716.23 | 19,490,130.78 |
Others | 3,096,032.13 | 26,357,530.06 |
Total | 151,715,468.87 | 103,151,684.34 |
(2) Other cash paid relating to operating activities
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Amount incurred in the reporting period | Amount incurred in the previous period |
Selling expense paid in cash | 250,325,799.04 | 220,637,469.28 |
Administrative expenses and R&D expenses paid in cash | 272,875,287.80 | 180,473,781.64 |
Bank service charge paid | 1,164,295.68 | 4,155,143.01 |
Others | 19,577,211.88 | 6,095,368.05 |
Total | 543,942,594.40 | 411,361,761.98 |
(3) Other cash received relating to investment activities
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Amount incurred in the reporting period | Amount incurred in the previous period |
Recovery of the prepayment for strategic equity placement | 16,002,100.00 | |
Total | 16,002,100.00 |
(4)Other cash paid relating to investment activities
"□ Applicable" "√ Not applicable"
(5)Other cash received relating to financing activities
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Amount incurred in the reporting period | Amount incurred in the previous period |
Bank acceptance notes discounting | 466,996,028.88 | |
Total | 466,996,028.88 |
(6)Other cash paid relating to financing activities
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Amount incurred in the reporting period | Amount incurred in the previous period |
Note margin | 89,676,583.08 | |
Listing expenses | 4,171,533.23 | |
Cash flow out relating to long term rented assets | 9,427,106.51 | |
Purchase of the non-controlling interests | 3,694,101.00 | 2,505,000.00 |
Total | 17,292,740.74 | 92,181,583.08 |
79. Notes to the statement of cash flows
(1) Notes to the statement of cash flows
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Supplementary information | Amount in the reporting period | Amount in the previous period |
1. Reconciliation of profit to net cash flows from operating activities: | ||
Net profit | 667,721,279.19 | 609,840,790.06 |
Plus: Provisions for asset impairment | 11,557,401.98 | 679,328.75 |
Loss from impairment of credit | -5,960,856.26 | -3,965,931.68 |
Depreciation of fixed assets, depletion of oil and gas asset, depreciation of productive biological asset | 183,522,689.28 | 159,287,836.12 |
Amortization of right-of-use assets | 13,543,970.77 |
Amortization of intangible assets | 19,289,301.40 | 15,323,888.80 |
Depreciation and amortization of investment property | 15,837,165.34 | 8,062,151.75 |
Amortization of long-term prepaid expenses | 8,250,604.81 | 5,175,941.07 |
Loss (income is stated in “-”) from disposal of fixed assets, intangible assets and other long-term assets | 12,713,091.69 | 8,941,375.46 |
Loss on retirements of fixed assets (profit is stated with “-”) | ||
Loss from change of fair value (profit is stated with “-”) | -9,978,187.68 | -12,219,498.91 |
Financial expenses (income is stated with “-”) | -168,283,587.71 | -104,172,960.08 |
Investment loss (income is stated with “-”) | 16,374,983.63 | -71,851,196.50 |
Decrease of the deferred tax asset (increase is stated with “_”) | -32,477,813.43 | 207,165.26 |
Increase of deferred tax liability (decrease is stated with “-”) | 422,484.18 | -3,433.37 |
Decrease of inventories (Increase is stated with “-”) | -307,454,125.14 | 47,999,404.48 |
Decrease in receivables from operating activities (Increase is stated with “-”) | 241,903,721.53 | -722,391,606.16 |
Increase in payables from operating activities (Decrease is stated with “-”) | 1,427,205,250.39 | 1,213,666,589.72 |
Others | ||
Net cash flows arising from operating activities | 2,094,187,373.97 | 1,154,579,844.77 |
2. Significant investment and financing activities with no cash income and expenses involved: | ||
Capital converted from liabilities | ||
Convertible company bonds due within a year | ||
Fixed assets under finance lease | ||
3. Net change in cash and cash equivalents: | ||
Ending cash balance | 2,846,143,310.70 | 978,700,802.48 |
Less: Opening balance of cash | 978,700,802.48 | 16,448,532.31 |
Plus: Ending balance of cash equivalent | ||
Less: Opening balance of cash equivalent | ||
Net increase of cash and cash equivalents | 1,867,442,508.22 | 962,252,270.17 |
(2)Net cash paid for acquisition of subsidiary in the reporting period
"□ Applicable" "√ Not applicable"
(3)Net cash received from disposal of subsidiary in the reporting period
"□ Applicable" "√ Not applicable"
(4)Composition of cash and cash equivalents
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Ending balance | Opening balance |
I. Cash | 2,846,143,310.70 | 978,700,802.48 |
Including: Cash in stock | ||
Bank deposit available for payment at any time | 2,846,143,310.70 | 978,700,802.48 |
Other monetary fund used for payment at any time | ||
Due from central bank available for payment | ||
Due from banks | ||
Call loan to banks | ||
II. Cash equivalents | ||
Including: bond investment due within three months | ||
III. Ending balance of cash and cash equivalents | 2,846,143,310.70 | 978,700,802.48 |
Other notes:
"□ Applicable" "√ Not applicable"
80. Notes to items of statement of change in owner’s equity
Note to the description of item “Others” and adjusted amounts for adjusting the closing balance of theprevious year:
"□ Applicable" "√ Not applicable"
81. Assets restricted in ownership or use right
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Book value at the end of the reporting period | Cause of restriction |
Fixed asset | 51,854,177.47 | Collateral used for bank credit |
Intangible assets | 30,632,651.23 | Collateral used for bank credit |
Transactional financial assets | 390,000,000.00 | Pledge for issuing bank acceptance draft |
Other non-current assets | 4,700,000,000.00 | Pledge for issuing bank acceptance draft |
Total | 5,172,486,828.70 | / |
Other notes:
(1) As of December 31, 2021, the Company had no deposit for bank acceptance notes (December 31,2020: RMB 269,196,678.00)
On December 31, 2021, the Company issued bank acceptance notes with financial productsamounting to RMB 390,000,000.00 as the pledge (December 31, 2020: RMB 280,000,000.00).
(3) As of December 31, 2021, the Company acquired bank credit line amounting to RMB300,000,000.00 from Bank of Communications Co., Ltd. Wuxi Xidong Sub-branch for Jiangsu Aima bypledging the housing and building of Henan Aima Vehicle Co.,Ltd. with net book value of RMB51,854,177.47 (December 31, 2020: RMB 56,311,395.08) and its land use rights with value of RMB30,632,651.23 (December 31, 2020: RMB 31,385,913.15) and guarantee by the Company.
(4) As of December 31, 2021, the Company issued bank acceptance notes with a three-year fixeddeposit certificate of RMB 4,700,000,000.00 as the pledge (December 31, 2020: RMB 3,200,000,000.00).
(5) As of December 31, 2021, the Company have not issued bank acceptance notes with a three-yearfixed deposit certificate as the pledge(December 31, 2020: RMB 800,000,000.00).
82. Foreign currency monetary items
(1) Foreign currency monetary items
"□ Applicable" "√ Not applicable"
(2) Note to overseas operating entities, including important overseas operating entities, whichshould be disclosed about its principal business place, function currency for bookkeeping and basis for thechoice. In case of any change in function currency, the cause should be disclosed."□ Applicable" "√ Not applicable"
83. Hedging
"□ Applicable" "√ Not applicable"
84. Government subsidies
(1) Basic information of government subsidies
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Categories | Amount | Items presented | Amount counted to the profit or loss |
Subsidy for stabilizing employment | 4,975,484.71 | Non-operating income | 4,975,484.71 |
Vocational skill training subsidy | 505,000.00 | Non-operating income | 505,000.00 |
Special subsidy for listing to Aima Group | 3,000,000.00 | Non-operating income | 3,000,000.00 |
Special technology improvement for economic high-quality development to Guangdong Aima | 738,000.00 | Non-operating income | 738,000.00 |
Subsidy from the Science and Technology Department of Guangxi Zhuang Autonomous Region | 500,000.00 | Non-operating income | 500,000.00 |
Jiangsu Industry Transformation and Upgrading Fund | 500,000.00 | Non-operating income | 500,000.00 |
Guangdong Key Industry Enterprise Market Development and Support Project | 386,100.00 | Non-operating income | 386,100.00 |
Jiangsu Financial Talents Subsidy | 170,000.00 | Non-operating income | 170,000.00 |
Award fund for supporting enterprises to strengthen income scale granted by the Commerce Bureau of Taizhou City, Jiangsu Province | 169,700.00 | Non-operating income | 169,700.00 |
Modern Industry Development Fund Subsidy granted by the Industry and Information Bureau of Xishan District | 150,000.00 | Non-operating income | 150,000.00 |
Other government subsidies | 528,372.23 | Non-operating income | 528,372.23 |
Subsidy of infrastructure construction to Aima Technology | 743,568.96 | Other income | 743,568.96 |
Subsidy of environmental protection equipment for treatment of baking varnish waste gas to Aima Technology | 1,119,999.96 | Other income | 1,119,999.96 |
Subsidy of equipment and production line to Aima Technology | 399,999.96 | Other income | 399,999.96 |
Subsidy for technology improvement to Aima Technology | 86,049.70 | Other income | 86,049.70 |
Subsidy of infrastructure construction to Tianjin Vehicle | 288,270.24 | Other income | 288,270.24 |
Subsidy of transformer substation cables to Tianjin Aima | 96,215.64 | Other income | 96,215.64 |
Subsidy for intelligent manufacturing to Tianjin Aima | 318,735.88 | Other income | 318,735.88 |
Subsidy of infrastructure construction to Henan Aima | 410,542.44 | Other income | 410,542.44 |
Subsidy for technology improvement to Henan Aima | 130,565.49 | Other income | 130,565.49 |
Subsidy for asset purchase by Jiangsu Aima | 111,111.12 | Other income | 111,111.12 |
Subsidy for technology improvement to Jiangsu Aima | 724,592.16 | Other income | 724,592.16 |
Subsidy for construction of high standard factory buildings to Jiangsu Aima | 26,315.76 | Other income | 26,315.76 |
Subsidy for technology improvement to Zhejiang Aima | 53,325.00 | Other income | 53,325.00 |
Logistics subsidy to Guangxi Aima | 15,000,000.00 | Other income | 15,000,000.00 |
Investment construction subsidy to Guangxi Aima | 1,342,762.56 | Other income | 1,342,762.56 |
Total | 32,474,711.81 | 32,474,711.81 |
(2). Refunding of the government subsidies
"□ Applicable" "√ Not applicable"
85. Others
"□ Applicable" "√ Not applicable"
VIII. Change in The Consolidation Scope
1. Applicable or not: Business consolidation not under the same control"□ Applicable" "√ Not applicable"
2. Business consolidation under the same control
"□ Applicable" "√ Not applicable"
3. Counter purchase
"□ Applicable" "√ Not applicable"
4. Disposal of subsidiaries
Does there exist any such situation that a single disposal may cause the control power over theinvestment in a subsidiary lost?"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Names of subsidiaries | Sh | Equity disposal proportion (%) | Way of equity disposal | Time-point of loss of control power | Difference between the disposal price and the share of the subsidiary's net assets at the consolidated financial statement level corresponding to the disposal investment | Percentage of the remaining equity at the date of loss of control (%) | Book value of the remaining equity at the date of loss of control | Fair value of the remaining equity at the date of loss of control |
Wuxi Zhuoyue | 0 | 60% | Assignment | October 31, 2021 | 395,864.38 |
Other notes:
"√ Applicable" "□ Not applicable"
AIMA Technology Group Co., LTD., a subsidiary of the Company and Huang Shuaiqiao, one of theminority shareholders signed an equity transfer agreement on September 25, 2021 according to which 60%equity in Wuxi Zhuoyue was transferred at zero consideration. The disposal date was October 31, 2021.Therefore, commencing from October 31, 2021, the Company no longer put Wuxi Zhuoyue in theconsolidation scope.
5. Change of the consolidation scope due to other reasons
Note to the change in the scope of consolidation caused by other reasons (such as newly establishedsubsidiaries, liquidation subsidiaries, etc.) and related conditions:
"√ Applicable" "□ Not applicable"
Names of subsidiaries | Place of registration | Nature of business | Proportion of the total shareholding by | Proportion of the total votes enjoyed by the Group (%) | Cause of increase of new |
the Group (%) | subsidiaries | ||||
Chongqing Aima | Chongqing | Wholesale and retail | 100 | 100 | Newly established |
Hainan Aima | Hainan | Wholesale and retail | 100 | 100 | Newly established |
Chongqing Vehicle | Chongqing | Manufacture | 100 | 100 | Newly established |
Zhejiang Technology | Zhejiang | Wholesale and retail | 100 | 100 | Newly established |
Taizhou Aima | Zhejiang | Manufacture | 100 | 100 | Newly established |
Ningbo Venture Capital | Zhejiang | Capital market service | 100 | 100 | Newly established |
Shenzhen Zhixing | Guangdong | Software and information technology service | 100 | 100 | Newly established |
Zhejiang Beisite | Zhejiang | Wholesale and retail | 100 | 100 | Newly established |
Lishui Vehicle | Zhejiang | Manufacture | 100 | 100 | Newly established |
Suoteng Technology | Hong Kong | Capital market service | 100 | 100 | Newly established |
6. Others
"□ Applicable" "√ Not applicable"IX. Equity in Other Entities
1. Equity in subsidiaries
(1)Composition of enterprise group
"√ Applicable" "□ Not applicable"
Names of subsidiaries | Main business location | Place of registration | Nature of business | Shareholding proportion (%) | Way of acquisition | |
Direct | Indirect | |||||
Tianjin Vehicle | Tianjin | Tianjin | Manufacture | 100 | Established | |
Henan Aima | Henan | Henan | Manufacture | 100 | Established | |
Jiangsu Aima | Jiangsu | Jiangsu | Manufacture | 100 | Established | |
Guangdong Aima | Guangdong | Guangdong | Manufacture | 100 | Established | |
Zhejiang Aima | Zhejiang | Zhejiang | Manufacture | 100 | Established | |
Aima Nanfang | Jiangsu | Jiangsu | Manufacture | 100 | Established | |
Sichuan Aima | Sichuan | Sichuan | Wholesale and retail | 100 | Established |
Xiaopa Technology | Shanghai | Shanghai | Service industry | 62 | Established | |
Tianjin Sports | Tianjin | Tianjin | Manufacture | 100 | Established | |
Xiaoma Network | Tianjin | Tianjin | Manufacture | 100 | Established | |
Aima Share | Tianjin | Tianjin | Manufacture | 73 | Established | |
Guangxi Aima | Guangxi | Guangxi | Manufacture | 100 | Established | |
Tianjin Tianli | Tianjin | Tianjin | Manufacture | 100 | Established | |
Chongqing Aima | Chongqing | Chongqing | Wholesale and retail | 100 | Established | |
Hainan Aima | Hainan | Hainan | Wholesale and retail | 100 | Established | |
Chongqing Vehicle | Chongqing | Chongqing | Manufacture | 100 | Established | |
Zhejiang Technology | Zhejiang | Zhejiang | Wholesale and retail | 100 | Established | |
Taizhou Aima | Zhejiang | Zhejiang | Manufacture | 100 | Established | |
Ningbo Venture Capital | Zhejiang | Zhejiang | Capital market service | 100 | Established | |
Shenzhen Zhixing | Guangdong | Guangdong | Software and information technology service | 100 | Established | |
Zhejiang Beisite | Zhejiang | Zhejiang | Wholesale and retail | 100 | Established | |
Lishui Vehicle | Zhejiang | Zhejiang | Manufacture | 100 | Established | |
Suoteng Technology | Hong Kong | Hong Kong | Capital market service | 100 | Established | |
Tianjin Jinge | Tianjin | Tianjin | Service industry | 76 | Consolidation under the same control | |
Tianjin Suiwanwan | Tianjin | Tianjin | Service industry | 100 | Consolidation under the same control |
Other notes:
Chongqing Aima, Hainan Aima, Chongqing Vehicle, Zhejiang Technology, Taizhou Aima, NingboVenture Capital, Shenzhen Zhixing, Zhejiang Beisite, Lishui Vehicle and Suoteng Technology were newlyestablished in year 2021.
(2)Important non-wholly-owned subsidiaries
"□ Applicable" "√ Not applicable"
(3)Key financial information of important non-wholly-owned subsidiaries
"□ Applicable" "√ Not applicable"
(4)Significant restriction on use of enterprise group’s assets and paying off the enterprise group’s
liabilities"□ Applicable" "√ Not applicable"
(5) Financial support or other support provided to the structured entities incorporated in the scope
of consolidated financial statements"□ Applicable" "√ Not applicable"Other notes:
"□ Applicable" "√ Not applicable"
2. Transaction with a subsidiary with the share of the owner’s equity changed but still under control"√ Applicable" "□ Not applicable"
(1)Note to the change in the share of the owner’s equity in subsidies
"√ Applicable" "□ Not applicable"In October 2021, the Company acquired the 6% equity in Tianjin Jinge held by Chen Feilin, a minorityshareholder, at a consideration of RMB 208,000.00. Upon completion of the acquisition, the Group isholding 76% equity in Tianjin Jinge. This transaction resulted in a decrease of RMB 209,518.65 in non-controlling interests and an increase of RMB 1,518.65 in capital reserves in the consolidated financialstatements reserve.
In October 2021, the Company acquired the 10% equity in Tianjin Tianli held by Xie Zhijun, a minorityshareholder, at a consideration of RMB 1.00. Upon completion of the acquisition, the Group is holding 100%equity in Tianjin Tianli. This transaction resulted in a decrease of RMB 162,684.38 in non-controllinginterests and an increase of RMB 162,683.38 in capital reserves in the consolidated financial statementsreserve.In November 2021, the Company acquired 22% equity in Aima Share held by Li, a minority shareholder,at a consideration of RMB 3,486,100.00. Upon completion of the acquisition, the Group is holding 73%equity in Aima Share. This transaction resulted in a decrease of RMB 3,526,043.64 in non-controllinginterests and an increase of RMB 39,943.64 in capital reserves in the consolidated financial statements.
(2)Effect of the transaction on the non-controlling interests and owner's equity attributable to the
parent company"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Tianjin Jinge | |
Purchase cost/Disposal consideration | |
-- Cash | 208,000.00 |
-- Fair value of non-cash assets | |
Purchase cost/Total disposal consideration | 208,000.00 |
Less: Subsidiary's net asset share calculated based on the proportion of equity acquired/disposed | 209,518.65 |
Balance | -1,518.65 |
Where: Adjustment of capital reserves | -1,518.65 |
Adjustment of surplus reserves | |
Adjustment of retained earnings |
Tianjin Tianli | |
Purchase cost/Disposal consideration | |
-- Cash | 1.00 |
-- Fair value of non-cash assets | |
Purchase cost/Total disposal consideration | 1.00 |
Less: Subsidiary's net asset share calculated based on the proportion of equity acquired/disposed | 162,684.38 |
Balance | -162,683.38 |
Where: Adjustment of capital reserves | -162,683.38 |
Adjustment of surplus reserves | |
Adjustment of retained earnings |
Aima Share | |
Purchase cost/Disposal consideration | |
-- Cash | 3,486,100.00 |
-- Fair value of non-cash assets | |
Purchase cost/Total disposal consideration | 3,486,100.00 |
Less: Subsidiary's net asset share calculated based on the proportion of equity acquired/disposed | 3,526,043.64 |
Balance | -39,943.64 |
Where: Adjustment of capital reserves | -39,943.64 |
Adjustment of surplus reserves | |
Adjustment of retained earnings |
Other notes:
"□ Applicable" "√ Not applicable"
3. Equity in joint ventures or associates
"√ Applicable" "□ Not applicable"
(1)Important joint ventures or associates
"□ Applicable" "√ Not applicable"
(2) Key financial information of important joint ventures
"□ Applicable" "√ Not applicable"
(3) Key financial information of important associates
"□ Applicable" "√ Not applicable"
(4)Financial information summary of unimportant joint ventures and associates"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Ending balance/amount incurred in the reporting period | Opening balance/amount incurred in the previous period | |
Associates: | ||
Total book value of investment | 105,073,280.23 | 32,946,576.25 |
Total of the following items calculated based on shareholding proportion | ||
-- Net profit | -39,867,033.98 | 10,372,839.35 |
-- Other comprehensive income | ||
-- Total comprehensive income | -39,867,033.98 | 10,372,839.35 |
Other notes:
Name of joint venture or associate | Main business location | Place of registration | Nature of business | Shareholding proportion (%) | Accounting treatment method for investment in joint ventures or associates | |
Direct | Indirect | |||||
TODAY SUNSHINE | Zhejiang | Zhejiang | Manufacture | 10.42 | Equity method | |
Tianjin Gamma | Tianjin | Tianjin | Manufacture | 40.00 | Equity method | |
Taizhou Jinfu | Zhejiang | Zhejiang | Venture capital investment | 55.90 | Equity method | |
Shandong Grand | Shandong | Shandong | Manufacture | 49.01 | Equity method | |
Beijing Zhongzhong | Beijing | Beijing | Service industry | 25.00 | Equity method |
(1) According to the articles of association of Sunshine Today, the Company is entitled to appointdirectors to its board of directors, and accordingly has the right to participate in the decision-making on itsfinancial and business operations, thereby exert significant influence on it.
(2) Taizhou Jinfu, Shandong Grand and Beijing Zhongzhong were associates with foreign investmentnewly increased in 2021 and the Company holds 55.90%, 49.01% and 25% of the shares respectively inthem.
(3) According to the Partnership Agreement with Taizhou Jinfu, the Company, as one of the limitedpartners, does not have the right to unilaterally decide the relevant activities of the partnership enterprise,so the Company does not control the partnership enterprise, but has a significant influence on it.
(5) Note to significant restriction on the competence of a joint venture or an associate in transferringfunds to the Company"□ Applicable" "√ Not applicable"
(6)Excessive loss incurred to a joint venture or an associate
"□ Applicable" "√ Not applicable"
(7) Unrecognized commitment in connection with investment in a joint venture"□ Applicable" "√ Not applicable"
(8) Contingent liabilities in connection with investment in joint ventures or associates"□ Applicable" "√ Not applicable"
4. Important joint operation
"□ Applicable" "√ Not applicable"
5. Equity in the structured entities not incorporated in the consolidated financial statementsRelevant note to the structured entities not incorporated in the consolidated financial statements"□ Applicable" "√ Not applicable"
6. Others
"□ Applicable" "√ Not applicable"X. Risk Relating to Financial Instruments"√ Applicable" "□ Not applicable"
The Company faces various risks of financial instruments in its daily activities, mainly including creditrisk, liquidity risk, market risk and exchange rate risk. The Group’s financial instruments mainly include
monetary capital, notes receivable, accounts receivable, accounts receivable financing, notes payable andaccounts payable. The risks involved in these financial instruments and the Group’s risk control tacticsaiming at reducing these risks are stated as follows.
(1) Credit risk
The Company carries out transactions only with accredited and reputable third parties. In accordancewith the Group's policy, all customers requiring credit transactions are subject to credit checks. In addition,the Group continuously monitors the balance of accounts receivable to ensure that the Group shall notaccess to significant bad debt risks. For transactions that are not settled in the functional currency of therelevant operating unit, the Group shall not provide credit transaction conditions unless specificallyapproved by the Group's credit control department.Since the counterparties of monetary funds, transactional financial assets and bank acceptance draftsreceivable are banks with good reputation and high credit rating, these financial instruments have low creditrisk.
The Company's other financial assets include accounts receivable and other receivables. The creditrisk of these financial assets is derived from the default of the counterparty, and the maximum risk exposureis equal to the book value of these instruments.
As the Company carries out transactions only with accredited and reputable third parties, no collateralis necessary. The credit risks are managed centrally based on customers/counterparties, geographiclocations and industries. As the Group's accounts receivable are widely dispersed among the customersbases, there exists no significant concentration of credit risks within the Company.
For the quantitative data of the Company's credit risk exposure arising from notes receivable, accountsreceivable and other receivables, please refer to "Section 10 VII. 5 Accounts Receivable" and "Section 10VII. 8 Other Receivables ".
(2) Liquidity risks
The Company's goal is to maintain a balance between continuity and flexibility of financing by usingvarious financing means such as notes payable and accounts payable.
(3) Exchange rate risk
The Company faces transactional exchange rate risk. Such risks arise from sales or purchases byoperating units in currencies other than their functional currency. Approximately 1.13% (2020: 0.80%) ofthe Group's sales was denominated in currencies other than the functional currency of the operating unitin which the sales occurred. As the amount of the Group's foreign currency business is not significant, theGroup believes that changes in foreign exchange rates will not have a significant impact on the Company'sfinancial statements.XI. Disclosure of Fair Value
1. Fair value at the end of the reporting period of the assets and liabilities measured based on the
fair value"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Fair value at the end of the reporting period | |||
Level 1 fair value measurement | Level 2 fair value measurement | Level 3 fair value measurement | Total | |
I. Continuous fair value measurement | ||||
(I)Financial assets held for trading | 1,265,981,818.24 | 1,265,981,818.24 | ||
1. Financial assets at fair value through profit or loss | 1,265,981,818.24 | 1,265,981,818.24 | ||
(1) Debt instrument investment | ||||
(2) Equity instrument investment | ||||
(3) Derivative financial assets | ||||
2. Financial assets designated at fair value through profit or loss | ||||
(1) Debt instrument investment |
(2) Equity instrument investment | ||||
(II)Other debt investment | ||||
(III)Other equity instrument investment | ||||
(IV) Investment properties | ||||
1. Land use right for lease purpose | ||||
2. Leased buildings | ||||
3. The land use right held and to be assigned after appreciation. | ||||
(V)Biological assets | ||||
1. Consumable biological asset | ||||
2. Productive biological asset | ||||
(VI)Receivables financing | 49,295,422.59 | 49,295,422.59 | ||
Total assets measured based on fair value | 1,265,981,818.24 | 49,295,422.59 | 1,315,277,240.83 | |
(VII)Financial liabilities held for trading | ||||
1. Financial liabilities at fair value through profit or loss | ||||
Where: Issued transactional bonds | ||||
Derivative financial liabilities | ||||
Others | ||||
2. Financial liabilities designated at fair value through profit or loss | ||||
Total liabilities continuously measured based on fair value | ||||
II. Non-continuous fair value measurement | ||||
(I) Held-for-sale assets | ||||
Total assets non-continuously measured based on fair value | ||||
Total liabilities non-continuously measured based on fair value |
2. Basis for determining the market price of the items measured based on the continuous and non-continuous first level fair value"□ Applicable" "√ Not applicable"
3. Items measured based on the continuous or non-continuous 2nd level fair value, valuation
technique as used, nature of important parameters and quantitative information"□ Applicable" "√ Not applicable"
4. Items measured based on the continuous or non-continuous 3rd level fair value, valuation
technique as used, nature of important parameters and quantitative information"□ Applicable" "√ Not applicable"
5. Items measured based on the continuous 3rd level fair value, sensitivity analysis on adjustedinformation and unobservable parameters between the book value at beginning and end of theperiod"□ Applicable" "√ Not applicable"
6. In case items measured based on fair value are converted between different levels incurred inthe reporting period, state the cause of conversion and determine conversion time point"□ Applicable" "√ Not applicable"
7. Change of valuation technique incurred in the reporting period and cause of such change"□ Applicable" "√ Not applicable"
8. Fair value of financial assets and financial liabilities not measured at fair value"□ Applicable" "√ Not applicable"
9. Others
"□ Applicable" "√ Not applicable"XII. Related Parties and Transactions
1. About the parent company
"□ Applicable" "√ Not applicable"
2. The Company’s subsidiaries
"√ Applicable" "□ Not applicable"For details of the Company's subsidiaries, please refer to “Section X IX. 1. Equity in Subsidiaries”.
3. Joint ventures and associates of the Company
Refer to the Notes for details of the Company's major joint ventures or associates"√ Applicable" "□ Not applicable"
Please refer to Section X “VII. 17 Long-term Equity Investments” and “IX. 3 Equity in Joint Ventures orAssociates” for the important joint ventures or associates of the Company.Other joint ventures or associates that had related transactions with the Company in the reportingperiod, or had related transactions with the Company in the previous period and formed a balance are asfollows"√ Applicable" "□ Not applicable"
Name of joint venture or associate | Relationship with the Company |
Tianjin Jiema Electric Technology Co., Ltd. | An associate in which the controlling shareholder acts as a director |
Other notes"□ Applicable" "√ Not applicable"
4. Other related parties
"√ Applicable" "□ Not applicable"
Names of other related parties | Relationship between other related parties and the Company |
Duan Hua | Director, the controlling shareholder’s spouse |
Shandong Aidebang Intelligent Technology Co., Ltd. | A joint stock company of an associate |
On August 15, 2021, Taizhou Huangyan Technology Innovation Investment Co., Ltd., SuzhouJinshajiang United Phase III Equity Investment Partnership (Limited Partnership), Suzhou Zhongxin BotongJinshi Venture Capital Partnership(L.P.) and Suzhou Jinsha Lake Venture Capital Management Co., Ltd.jointly funded the establishment of Taizhou Jinfu. On September 27, 2021, Taizhou Jinfu signed the"Shareholders Agreement" and "Capital Increase Agreement" with the original shareholder of Aidebon,according to which they would invest RMB 160 million in Aidebang, with a shareholding ratio of 21.05%.Aidebang became a related party of the Company on September 27, 2021, and the said related transactionwas disclosed as a related transaction. According to the relevant provisions of the "Listing Rules ofShanghai Stock Exchange", Shandong Aidebang Intelligent Technology Co., Ltd. is not a related partybased on the Company's information disclosure standard.
5. Related transactions
(1) Related transactions of purchase and sale of commodities and supply and acceptance of laborservicesStatement of purchase of commodities and acceptance of labor services"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Related party | Description of Related Transactions | Amount incurred in the reporting period | Amount incurred in the previous period |
Tianjin Jiema Electric Technology Co., Ltd. | Purchase of accessories and semi-finished products, etc. | 11,095,671.78 | 4,001,019.21 |
Shandong Aidebang Intelligent Technology Co., Ltd. | Purchase of raw materials | 69,726,294.77 | 13,546,179.20 |
Statement of sales of goods/supply of services"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Related party | Description of Related Transactions | Amount incurred in the reporting period | Amount incurred in the previous period |
Tianjin Jiema Electric Technology Co., Ltd. | Supply of services | 223,442.56 | 1,481,979.55 |
Note to related transactions of purchase and sale of commodities and supply and acceptance of laborservices"√ Applicable" "□ Not applicable"
1.In 2021, the Company purchased accessories, semi-finished products and obtained labor servicesfrom Tianjin Jiema Electric Technology Co., Ltd. in total of RMB 11,095,671.78 (2020: RMB 4,001,019.21).
2.In 2021, the Company purchased raw materials from Shandong Aidebang Intelligent Technology Co.,Ltd. in total of RMB 69,726,294.77 (2020: RMB 13,546,179.20).
3. In 2021, the Company provided a total of RMB 223,442.56 (2020: RMB 1,481,979.55) of moldprocessing services to Tianjin Jiema Electric Technology Co., Ltd.
(2)Related entrusted management/contracted and mandatory management/contractingStatement of the Company's entrusted management/contracting:
"□ Applicable" "√ Not applicable"Related entrusted management/contracting
"□ Applicable" "√ Not applicable"Statement of the Company's entrusted management/outsourcing"□ Applicable" "√ Not applicable"Related management/outsourcing"□ Applicable" "√ Not applicable"
(3)Related lease
The Company as lessor:
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Names of lessee | Categories of leasehold properties | Rental income recognized in the reporting period | Rental income recognized in the previous period |
Tianjin Jiema Electric Technology Co., Ltd. | Property lease | 6,333,512.82 | 8,592,569.25 |
The Company as lessee:
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Names of lessor | Categories of leasehold properties | Rental fee recognized in the reporting period | Rental fee recognized in the previous period |
Tianjin Jiema Electric Technology Co., Ltd. | Equipment hiring | 26,548.68 | |
Duan Hua | Property lease | 4,761,904.76 | 4,761,904.76 |
Related lease"√ Applicable" "□ Not applicable"
1.In 2021, the Company leased houses to Tianjin Jiema Electric Technology Co., Ltd., and obtainedrent income and supporting water and electricity cost income amounting to RMB 6,333,512.82.In 2020, theCompany leased houses to Tianjin Jiema Electric Technology Co., Ltd., and confirmed rent income andsupporting water and electricity cost income amounting to RMB 8,592,569.25.
2. In 2021, the Company hired equipment from Tianjin Jiema Electric Technology Co., Ltd., and therent expenses incurred amounted to RMB 26,548.68.
3. In July 2019, the Company hired the Jinta office from Duan Hua for daily operations with the leaseterm from July 10, 2019 to July 9, 2024 at annual rent rate of RMB 4,761,904.76. The rent is paid on aquarterly basis. The Company paid a total of RMB 4,761,904.76 of rent in 2021 (2020: RMB 4,761,904.76).From January 1, 2021, the Company has applied the new lease standards, and therefore, the rents areaccounted for in right-of-use assets and lease liabilities.
(4) Related guarantee
The Company as a guarantor"□ Applicable" "√ Not applicable"The Company as a guarantee"□ Applicable" "√ Not applicable"Note to related guarantee"□ Applicable" "√ Not applicable"
(5)Borrowings and lendings among related parties
"□ Applicable" "√ Not applicable"
(6)Assets assignment and liabilities reorganization of related parties
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Related party | Description of Related Transactions | Amount incurred in the reporting period | Amount incurred in the previous period |
Tianjin Jiema Electric Technology Co., Ltd. | Sales of assets | 884,955.80 |
(7) Remuneration to senior executives
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Amount incurred in the reporting period | Amount incurred in the previous period |
Remuneration to senior executives | 13,086,510.11 | 20,514,782.71 |
(8)Other related transactions
"√ Applicable" "□ Not applicable"In 2021, the total amount of dividends received by the Group from Tianjin Jiema Electric TechnologyCo., Ltd. was RMB 5,724,000.00.
6.Accounts receivable from and payable to related parties
(1)Receivables
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Description | Related party | Ending balance | Opening balance | ||
Book balance | Bad debt reserve | Book balance | Bad debt reserve | ||
Accounts receivable | Tianjin Jiema Electric Technology Co., Ltd. | 87,750.00 | 938.93 | ||
Prepayment | Tianjin Jiema Electric Technology Co., Ltd. | 2,593,313.53 | |||
Prepayment | Duan Hua | 1,250,000.00 | |||
Other receivables | Tianjin Jiema Electric Technology Co., Ltd. | 2,685,921.37 | 1,125,000.00 | 6,998,870.21 | |
Other receivables | Shandong Aidebang Intelligent Technology Co., Ltd. | 107,506,442.86 | |||
Other receivables | Duan Hua | 450,000.00 | 450,000.00 |
(2)Payables
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Description | Related party | Ending book balance | Opening book balance |
Accounts payable | Tianjin Jiema Electric Technology Co., Ltd. | 2,232,360.55 | 663.72 |
Accounts payable | Shandong Aidebang Intelligent Technology Co., Ltd. | 445,120.13 | |
Notes payable | Shandong Aidebang Intelligent Technology Co., Ltd. | 24,796,814.74 | 65,104.03 |
Receipts in advance | Tianjin Jiema Electric Technology Co., Ltd. | 2,910,301.01 | |
Other payables | Tianjin Jiema Electric Technology Co., Ltd. | 228,242.60 | 2,487,736.93 |
Other payables | Shandong Aidebang Intelligent Technology Co., Ltd. | 1,007,368.00 | |
Lease liabilities | Duan Hua | 6,909,182.17 |
7. Related parties’ commitments
"□ Applicable" "√ Not applicable"
8. Others
"□ Applicable" "√ Not applicable"XIII. Share-based Payment
1. General of share-based payment
"√ Applicable" "□ Not applicable"
In: share Currency:RMB
Total amount of various equity instruments granted by the Company during the reporting period | 137,159,400.00 |
Other notes
2021 | 2020 | |
Price of the restricted shares granted | RMB 20.23/share | |
Total restricted shares issued during the reporting period | 6.78 million shares | |
Total employee services in exchange for share-based payments |
On December 27, 2021, 2021 3rd Extraordinary General Meeting of Aima Group reviewed andapproved the proposal on the “2021 Restricted Stock Incentive Plan of AIMA Technology Group Co,. LTD.(Draft)" and its summary. A total of 7.06 million restricted shares were granted, accounting for about 1.75%of the total share capital of 403,660,003 shares, of which 6,860,000 shares were granted for the first timeand 200,000 shares were reserved; the number of incentive objects granted for the first time by this planwas 112 persons, including senior executives, medium and senior management personnel, and coretechnical (business) personnel; the grant price of some restricted shares granted for the first time in thisplan is RMB 20.23 per share.On December 27, 2021, the 24th session of the Fourth Board of Directors of Aima Group reviewedand approved the “Proposal on Adjusting the List of Incentive Objects and the Number of Equity Grantedfor the First Time in 2021 Restricted Stock Incentive Plan”. After the adjustment, the number of incentiveobjects granted for the first time by this plan was changed from 112 to 106, and the total amount of restrictedshares granted for the first time was adjusted from 6.86 million shares to 6.79 million shares. Later, becausesome incentive objects voluntarily gave up the subscription of 10,000 restricted shares granted in part, atotal of 6,780,000 restricted shares were actually granted to 105 incentive objects, and on December 31,2021, a total of employee stock subscriptions amounting to RMB 112,883,400.00 were received.
The lock-up periods for restricted shares granted based on this incentive plan are 15 months, 27months and 39 months from the date when the registration of the grant of restricted shares granted to theincentive objects is completed.On January 24, 2022, the Company completed the registration of the first grant of the 2021 RestrictedShares Incentive Plan with the Shanghai Branch of China Securities Depository and Clearing CorporationLimited; and the Company's total capital stock increased to 410,440,003 shares.
Equity-settled share-based payment is as follows:
2021 | 2020 | |
Equity-settled share-based payment | ||
Accumulated amount counted to the capital reserves | ||
Total expenses recognized in the equity-settled share-based payment | ||
Method for determining the fair value of equity instruments granted | Closing price of the Company's stock less the issuing price of the restricted shares on the grant date | |
Basis for determining the quantity of exercisable equity instruments | The Company's financial performance indicators and personal performance indicators are assessed on an annual basis, and the number of incentive objects that have achieved the assessment target is the basis for determination. |
2. About the equity-settled share-based payment
"□ Applicable" "√ Not applicable"
3. Cash-settled share-based payment
"□ Applicable" "√ Not applicable"
4. Correction and termination of share-based payment
"□ Applicable" "√ Not applicable"
5. Others
"□ Applicable" "√ Not applicable"XIV. Commitments and Contingencies
1. Important commitments
"√ Applicable" "□ Not applicable"Important external commitments, the nature and the amount existing as at the balance sheet date
Items | December 31, 2021 | December 31, 2020 |
Capital commitments with contract signed but not yet provided | 50,470,332.66 | 52,386,670.02 |
2. Contingencies
(1) Significant contingencies existing as at the balance sheet date
"√ Applicable" "□ Not applicable"
Pending litigation arising from patent dispute at the end of 2020 Liu Gang, as the plaintiff, filed a lawsuitwith the Beijing Intellectual Property Court with the Company and Beijing JD Century InformationTechnology Co., Ltd. as the co-defendants, claiming that the defendants must immediately stop infringingintellectual property rights by manufacturing, selling, and promising to sell, including the invention patentwith the patent No. ZL201110245887.7; claiming for paying the plaintiff all rights protection fees, attorneyfees or legal consultation fees for stopping the infringement and reasonable expenses for investigating andstopping the infringement in a total of RMB 17,500.00; ordering the defendants to submit the relevant data
information of infringement and the relevant data information of the infringer of the online stores, so as tofacilitate the plaintiff to change the litigation request after the establishment of the allegation of infringementor to further safeguard the rights for a second prosecution, so as to determine the amount of the claim;ordering the defendants to pay punitive damages to the plaintiff. As of the date when the financialstatements are approved for publication, the first instance of the case had not yet been heard.
(2)The Company had no important contingencies unnecessary to be disclosed but necessary to beexplained"□ Applicable" "√ Not applicable"
3. Others
"□ Applicable" "√ Not applicable"XV. Events after The Balance Sheet Date
1. Module: Significant non-adjustment events
"□ Applicable" "√ Not applicable"
2. Profit distribution
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Profit or dividend to be distributed | 205,220,001.50 |
Profit or dividend announced to be distributed after review and approval | 205,220,001.50 |
On April 14, 2022, the Company held 25th session of the Fourth Board of Directors at which a preplanfor profit distribution and capital reserves capitalization in 2021 was proposed. According to the preplan,the Company was to distribute cash dividend amounting to RMB 205,220,001.50 (or at the rate of RMB 0.5per share). At the same time, the Company was to capitalize its capital reserves to whole shareholders atthe rate of 4 shares for every 10 shares. Calculated based on the Company's total capital stock of410,440,003 shares as of April 14, 2022, after the capitalization, the Company's total capital stock wouldincrease to 574,616,004 shares (The total number of the Company's shares was subject to the finalregistration result with China Securities Depository and Clearing Corporation Limited Shanghai Branch. Ifthere was any difference, it was due to rounding up).
3. Sales return
"□ Applicable" "√ Not applicable"
4. Note other post balance sheet events
"□ Applicable" "√ Not applicable"XVI. Other significant events
1. Correction of the accounting errors in the previous period
(1) Retroactive restatement
"□ Applicable" "√ Not applicable"
(2) Prospective application method
"□ Applicable" "√ Not applicable"
2. Liabilities restructuring
"□ Applicable" "√ Not applicable"
3. Replacement of assets
(1) Non-monetary assets exchange
"□ Applicable" "√ Not applicable"
(2)Other assets exchange
"□ Applicable" "√ Not applicable"
4. Annuity plan
"□ Applicable" "√ Not applicable"
5. Operation termination
"□ Applicable" "√ Not applicable"
6. Segment information
(1)Basis for determining the reporting segments and accounting policy
"□ Applicable" "√ Not applicable"
(2) Financial information of the reporting segments
"□ Applicable" "√ Not applicable"
(3)In case there is no reporting segment or the total assets and liabilities of the reporting segmentscannot be disclosed, explain the reason"√ Applicable" "□ Not applicable"
The Company is mainly engaged in the electric two-wheeled vehicle business, and the assets relatedto the services supply are located in China. In terms of internal organizational structure and managementrequirements, the Company takes the Company's businesses as a whole to review internal reports, allocateresources and performance assessment. Therefore, except the information already presented in thefinancial statements, there is no other segment information necessary to be presented.
(4)Other notes
"√ Applicable" "□ Not applicable"
Geographical information: The vast majority of the Company's foreign transaction revenue comes fromdomestic sources. The Company's non-current assets (excluding financial assets and deferred income taxassets) are all located in China.
7. Other significant transactions and matters that may affect investors' decision making"□ Applicable" "√ Not applicable"
8. Others
"√ Applicable" "□ Not applicable"
In 2021, no more than 10% of the Company's operating revenue came from the Group's operatingrevenue from a single customer.XVII. Notes to The Parent Company’s Financial Statements
1. Accounts receivable
(1 )Disclosed based on aging"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Aging | Ending book balance |
Within 1 year | |
Where: Itemized within 1 year | |
Within 1 year | 90,715,260.50 |
Sub-total within 1 year | 90,715,260.50 |
1 to 2 years | 419,452.53 |
2 to 3 years | |
Over 3 years |
Total | 91,134,713.03 |
(2) Classified disclosure based on the method of provision for bad debt
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Categories | Ending balance | Opening balance | ||||||||
Book balance | Bad debt reserve | Book value | Book balance | Bad debt reserve | Book value | |||||
Amount | Proportion (%) | Amount | Provision proportion (%) | Amount | Proportion (%) | Amount | Provision proportion (%) | |||
Assessed bad debt provision individually | 10,964,633.94 | 12.03 | 10,964,633.94 | 29,142,824.28 | 14.81 | 29,142,824.28 | ||||
Where: | ||||||||||
Individual provision for bad debts | 10,964,633.94 | 12.03 | 10,964,633.94 | 29,142,824.28 | 14.81 | 29,142,824.28 | ||||
Assessed bad debt provision in portfolio | 80,170,079.09 | 87.97 | 938,600.94 | 1.18 | 79,231,478.15 | 167,604,875.33 | 85.19 | 8,773,700.51 | 5.23 | 158,831,174.82 |
Where: | ||||||||||
Portfolios based on credit risk characteristics | 80,170,079.09 | 87.97 | 938,600.94 | 1.18 | 79,231,478.15 | 167,604,875.33 | 85.19 | 8,773,700.51 | 5.23 | 158,831,174.82 |
Total | 91,134,713.03 | / | 938,600.94 | / | 90,196,112.09 | 196,747,699.61 | / | 8,773,700.51 | / | 187,973,999.10 |
Individual provision for bad debts:
"□ Applicable" "√ Not applicable"Provision for bad and doubtful debts based on portfolio:
?Applicable □ Not applicableProvision items on portfolio:Provision for bad debts recognized based on the portfolio of credit riskcharacteristics
In:Yuan Currency:RMB
Name | Ending balance | ||
Accounts receivable | Bad debt provision | Provision proportion (%) | |
Within 1 year | 79,750,626.59 | 845,356.65 | 1.06 |
1 to 2 years | 419,452.50 | 93,244.29 | 22.23 |
Total | 80,170,079.09 | 938,600.94 | 1.17 |
Criteria of and note to recognition of provision for bad debts based on portfolio:
"□ Applicable" "√ Not applicable"
If the provision for bad debt is accrued in accordance with the general model of expected credit loss,please refer to the disclosure of other receivables
"□ Applicable" "√ Not applicable"
(3)Provision for bad debts
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Categories | Opening balance | Amount of movement during the reporting period | Ending balance | |||
Provision | Recovery or reversal | Charge-off or write-off | Other changes | |||
Assessed bad debt provision in portfolio | 8,773,700.51 | 1,455,630.15 | 9,290,729.72 | 938,600.94 | ||
Total | 8,773,700.51 | 1,455,630.15 | 9,290,729.72 | 938,600.94 |
Where the significant amount of the reserve for bad debt recovered or reversed:
"□ Applicable" "√ Not applicable"
(4)Accounts receivable actually written off in the reporting period
"□ Applicable" "√ Not applicable"Where, the important accounts receivable written-off"□ Applicable" "√ Not applicable"
(5)Accounts receivable owed by the top five debtors based on the ending balance"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Organization name | Ending balance | Proportion in total ending balance of accounts receivable (%) | Ending balance of the provision for bad debts |
Customer 1 | 9,414,533.53 | 10.33 | 99,794.06 |
Customer 2 | 6,400,610.04 | 7.02 | 67,846.47 |
Customer 3 | 5,405,316.32 | 5.93 | 57,296.35 |
Customer 4 | 5,400,297.20 | 5.93 | 57,243.15 |
Customer 5 | 4,818,993.85 | 5.29 | 51,081.33 |
Total | 31,439,750.94 | 34.50 | 333,261.36 |
(6)Account receivable with recognition terminated due to transfer of financial assets"□ Applicable" "√ Not applicable"
(7)Amount of assets and liabilities formed through transfer of account receivable and continuing tobe involved"□ Applicable" "√ Not applicable"Other notes:
"□ Applicable" "√ Not applicable"
2. Other receivables
Items Presentation"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Ending balance | Opening balance |
Interest receivables | 255,452.31 | 928,998.18 |
Dividends receivable | ||
Other receivables | 226,578,880.94 | 53,414,685.27 |
Total | 226,834,333.25 | 54,343,683.45 |
Other notes:
"□ Applicable" "√ Not applicable"Interest receivables
(1)Classification of interest receivable
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Ending balance | Opening balance |
Interest of accounts receivable | 255,452.31 | 928,998.18 |
Total | 255,452.31 | 928,998.18 |
(2)Significant overdue interest
"□ Applicable" "√ Not applicable"
(3)Provision for bad debts
"□ Applicable" "√ Not applicable"Other notes:
"□ Applicable" "√ Not applicable"
(4)Dividend receivable
"□ Applicable" "√ Not applicable"
(5)Significant dividends receivable with age exceeding 1 year
"□ Applicable" "√ Not applicable"
(6)Provision for bad debts
"□ Applicable" "√ Not applicable"Other notes:
"□ Applicable" "√ Not applicable"Other receivables
(1)Disclosed based on aging
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Aging | Ending book balance |
Within 1 year | |
Where: Itemized within 1 year |
Within 1 year | 225,965,632.81 |
Sub-total within 1 year | 225,965,632.81 |
1 to 2 years | 48,200.33 |
2 to 3 years | 480,000.00 |
Over 3 years | 99,394.50 |
Total | 226,593,227.64 |
(2)Classification based on the nature of fund
"□ Applicable" "√ Not applicable"
(3)Provision for bad debts
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Bad debt provision | Stage 1 | Stage 2 | Stage 3 | Total |
12-month expected credit losses | Lifetime expected credit losses (no credit impairment incurred) | Lifetime expected credit losses (credit impairment already incurred) | ||
Balance as at January 1, 2021 | 25,242.08 | 7,697.25 | 32,939.33 | |
Balance as at January 1, 2021 in the reporting period | 25,242.08 | 7,697.25 | 32,939.33 | |
-- transferred into Stage 2 | ||||
-- transferred into Stage 3 | ||||
-- revered to Stage 2 | ||||
-- reversed to Stage 1 | ||||
Accrual | 14,346.70 | 14,346.70 | ||
Reversal | 25,242.08 | 7,697.25 | 32,939.33 | |
Transfer out | ||||
Write-off | ||||
Other changes | ||||
Balance as at December 31, 2021 | 14,346.70 | 14,346.70 |
Note to the significant changes in the book balance of other receivables with changes in provision forloss in the reporting period:
"□ Applicable" "√ Not applicable"
The amount of provision for bad debts in the reporting period and the basis for assessing whether thecredit risk of financial instruments has increased significantly"□ Applicable" "√ Not applicable"
(4)Provision for bad debts
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Categories | Amount of movement during the reporting period |
Opening balance | Provision | Recovery or reversal | Charge-off or write-off | Other changes | Ending balance | |
Bad debt provision | 32,939.33 | 14,346.70 | 32,939.33 | 14,346.70 | ||
Total | 32,939.33 | 14,346.70 | 32,939.33 | 14,346.70 |
Where a significant amount of the reserve for bad debt recovered or reversed during the reportingperiod:
"□ Applicable" "√ Not applicable"
(5)Other receivables actually written off in the reporting period
"□ Applicable" "√ Not applicable"
(6)Other receivables owed by the top five debtors based on the ending balance"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Organization name | Nature of Payment | Ending balance | Aging | Proportion in total ending balance of other receivables |
Customer 1 | Inter company accounts | 160,000,000.00 | Within 1 year | 70.61 |
Customer 2 | Inter company accounts | 28,032,897.30 | Within 1 year | 12.37 |
Customer 3 | Inter company accounts | 25,000,000.00 | Within 1 year | 11.03 |
Customer 4 | Inter company accounts | 4,400,360.00 | Within 1 year | 1.94 |
Customer 5 | Inter company accounts | 3,937,340.11 | Within 1 year | 1.74 |
Total | / | 221,370,597.41 | / | 97.69 |
(7)Accounts receivable involving government subsidy
"□ Applicable" "√ Not applicable"
(8) Other receivables with recognition terminated due to transfer of financial assets"□ Applicable" "√ Not applicable"
(9) Amount of assets and liabilities formed through transfer of other receivables and continuing to
be involved"□ Applicable" "√ Not applicable"Other notes:
"□ Applicable" "√ Not applicable"
3. Long-term equity investments
?Applicable □Not applicable
In:Yuan Currency:RMB
Items | Ending balance | Opening balance | ||||
Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
Investment in subsidiaries | 774,596,113.08 | 774,596,113.08 | 660,502,012.08 | 660,502,012.08 |
Investment in associates and joint ventures | 100,350,602.41 | 100,350,602.41 | 32,946,576.25 | 32,946,576.25 | ||
Total | 874,946,715.49 | 874,946,715.49 | 693,448,588.33 | 693,448,588.33 |
(1)Investment in subsidiaries
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Investees | Opening balance | Increase in the reporting period | Decrease in the reporting period | Ending balance | Provision for impairment in the reporting period | Ending balance of the provision for impairment |
Aima Nanfang | 100,000,000.00 | 100,000,000.00 | ||||
Henan Aima | 5,676,019.01 | 5,676,019.01 | ||||
Guangdong Aima | 2,838,009.50 | 2,838,009.50 | ||||
Jiangsu Aima | 495,706,179.13 | 495,706,179.13 | ||||
Zhejiang Aima | 2,838,009.50 | 2,838,009.50 | ||||
Tianjin Vehicle | 9,933,033.27 | 9,933,033.27 | ||||
Sichuan Aima | 10,211,400.00 | 10,211,400.00 | ||||
Wuxi Zhuoyue | 600,000.00 | 600,000.00 | ||||
Xiaopa Technology | 1,240,000.00 | 1,240,000.00 | ||||
Tianjin Jinge | 1,203,080.50 | 208,000.00 | 1,411,080.50 | |||
Ningbo Venture Capital | 10,000,000.00 | 10,000,000.00 | ||||
Zhejiang Technology | 1,000,000.00 | 1,000,000.00 | ||||
Chongqing Vehicle | 50,000,000.00 | 50,000,000.00 | ||||
Tianjin Sports | 10,000,000.00 | 10,000,000.00 | ||||
Xiaoma Network | 8,500,000.00 | 8,500,000.00 | ||||
Aima Share | 5,100,000.00 | 3,486,100.00 | 8,586,100.00 | |||
Tianjin Suiwanwan | 2,156,281.17 | 2,156,281.17 |
Guangxi Aima | ||||||
Taizhou Aima | 50,000,000.00 | 50,000,000.00 | ||||
Tianjin Tianli | 4,500,000.00 | 1.00 | 4,500,001.00 | |||
Total | 660,502,012.08 | 114,694,101.00 | 600,000.00 | 774,596,113.08 |
(2)Investment in associates and joint ventures
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Investment In:Yuan | Opening Balance | Increase/ Decrease (+ / -) in the reporting period | Ending Balance | Ending balance of the provision for impairment | |||||||
Increase | Decrease | Investment income under the equity method | other comprehensive income | Other equity movement | Cash dividend declared | Provision for impairment | Others | ||||
I. Joint Venture | |||||||||||
II. Associates | |||||||||||
TODAY SUNSHINE | 13,298,705.15 | -1,729,310.83 | 11,569,394.32 | ||||||||
Tianjin Gamma | 19,647,871.10 | 651,728.75 | 5,724,000.00 | 14,575,599.85 | |||||||
Shandong Grand | 22,717,737.96 | -3,462,453.52 | 19,255,284.44 | ||||||||
Taizhou Jinfu | 90,000,000.00 | -35,049,676.20 | 54,950,323.80 | ||||||||
Sub-total | 32,946,576.25 | 112,717,737.96 | -39,589,711.80 | 5,724,000.00 | 100,350,602.41 | ||||||
Total | 32,946,576.25 | 112,717,737.96 | -39,589,711.80 | 5,724,000.00 | 100,350,602.41 |
4. Operating revenue and costs
(1) Operating revenue and costs
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Amount incurred in the reporting period | Amount incurred in the previous period | ||
Income | Cost | Income | Cost | |
Primary business | 10,790,139,364.31 | 10,568,578,183.78 | 11,691,239,077.41 | 11,456,068,148.48 |
Other businesses | 153,088,794.92 | 109,794,528.45 | 103,417,213.12 | 90,108,541.13 |
Total | 10,943,228,159.23 | 10,678,372,712.23 | 11,794,656,290.53 | 11,546,176,689.61 |
(2)Revenue arising from contracts
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Classification of Contracts | Total |
Types of commodities | |
Revenue from electric two-wheelers, electric Tricycle, bicycles and accessories | 10,790,139,364.31 |
Other revenue | 109,159,670.70 |
Classification based on the operation regions | |
China Mainland | 10,832,090,471.06 |
Other countries or regions | 67,208,563.95 |
Time classification based on transfer of commodities | |
Sales of goods | 10,790,139,364.31 |
Revenue from materials | 48,771,115.92 |
Others | 40,665,776.57 |
After-sale service revenue | 19,722,778.21 |
Total | 10,899,299,035.01 |
Description of revenue arising from contracts"□ Applicable" "√ Not applicable"
(3) Note to performance obligations
"√ Applicable" "□ Not applicable"
1) Sales of goods
The performance obligation is satisfied upon delivery of the products to customers. For sales bydistributors, most customers need to prepay the price, and the contract price for some customers usuallyexpires within 1 year after delivery of the product.
(4)Note to apportioning to the residual performance obligations
"√ Applicable" "□ Not applicable"
At the end of the reporting period, the amount of revenue corresponding to the performance obligationsof the contracts which have been signed, but not yet performed or not yet completed is RMB158,708,940.97.Other notes:
The revenue recognized in the current year included in the book value of contract liabilities at thebeginning of the year is as follows:
In: RMB
Items | 2021 | 2020 |
Sales of goods | 87,057,363.44 | 153,430,562.75 |
5. Investment income
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Amount incurred in the reporting period | Amount incurred in the previous period |
Long-term equity investment income under the cost method | 536,570,000.00 | 323,263,748.17 |
Long-term equity investment income under the equity method | -39,589,711.80 | 10,372,839.35 |
Gains from disposal of long-term equity investment | -600,000.00 |
Return on investment from financial products | 14,815,576.27 | 47,092,278.45 |
Total | 511,195,864.47 | 380,728,865.97 |
6. Others
"□ Applicable" "√ Not applicable"XVIII. Supplementary Information
1. Statement of non-recurring gain or losses in the reporting period
"√ Applicable" "□ Not applicable"
In:Yuan Currency:RMB
Items | Amount |
Profit or loss from disposal of non-current assets | -12,713,091.69 |
Government grants recognised in during profit or loss (excluding those having close relationship with the Company’s normal business, conforming to the national policies and regulations and enjoying ongoing fixed amount or quantity according to certain standard) | 34,294,933.55 |
The investment costs for acquiring subsidiaries, associates and joint ventures were less than the income generated by the fair value of the identifiable net assets of the investee at the time of acquiring the investment. | 3,497,737.94 |
Except for the effective hedging business related to the ordinary business of the Company, changes in fair value of financial assets and financial liabilities held for trading, as well as the return on investment generated from the disposal of financial assets and financial liabilities held for trading and financial assets at fair value through other comprehensive income | 9,978,187.68 |
Net non-operating income or expenses other than the above items | 6,361,478.19 |
Other gain or loss in compliance with the definition of non-recurring gain or loss. | 22,292,050.35 |
Less: Amount affected by the income tax | 15,927,824.01 |
Total | 47,783,472.01 |
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No. 1on Information Disclosure for Companies Offering their Securities to the Public – Non-recurring gain/lossand its non-recurring gain/loss items as illustrated in the Explanatory Announcement No. 1 on InformationDisclosure for Companies Offering their Securities to the Public – Non-recurring gain/loss which have beendefined as recurring gain/loss, it is necessary to explain the reason."□ Applicable" "√ Not applicable"
2. ROE and EPS
"√ Applicable" "□ Not applicable"
Profit in the reporting period | Net return on equity, weighted average (%) | Earnings per share | |
Basic earnings per share | Diluted earnings per share | ||
Net profit attributable to owners of the parent | 17.46 | 1.79 | 1.79 |
Net profit attributable to owners of the parent excluding non-recurring gains or losses | 16.31 | 1.66 | 1.66 |
3. Difference in the Accounting Data based respectively on the Chinese Accounting Standards (CAS)and International Accounting Standards (IAS)"□ Applicable" "√ Not applicable"
4. Others
"□ Applicable" "√ Not applicable"
Chairman of the Board: Zhang JianThe Report was approved by the Board of Directors. Date of the submission 4/14/2022Revision information"□ Applicable" "√ Not applicable"