LUTHAITEXTILECO.,LTD.
INTERIMREPORT2022
August2022
PartIImportantNotes,TableofContentsandDefinitions
TheBoardofDirectors(orthe“Board”),theSupervisoryCommitteeaswellasthedirectors,supervisorsandseniormanagementofLuThaiTextileCo.,Ltd.(hereinafterreferredtoasthe“Company”)herebyguaranteethefactuality,accuracyandcompletenessofthecontentsofthisReportanditssummary,andshallbejointlyandseverallyliableforanymisrepresentations,misleadingstatementsormaterialomissionstherein.LiuZibin,theCompany’slegalrepresentative,andZhangKeming,headofaccountingaffairsandheadoftheaccountingdepartment(equivalenttoaccountingmanager)herebyguaranteethattheFinancialStatementscarriedinthisReportarefactual,accurateandcomplete.AlltheCompany’sdirectorshaveattendedtheBoardmeetingforthereviewofthisReportanditssummary.TheCompanyissubjecttothedisclosurerequirementsforlistedcompaniesengagingintextileandapparelasstatedinGuidelineNo.3oftheShenzhenStockExchangeforSelf-regulationofListedCompanies—Industry-specificInformationDisclosure.Since2022,affectedbydomesticpandemicreboundandmorecomplicatedinternational,politicalandeconomicenvironments,China'stextileindustryhasfacedregionalphasedworkandproductionstoppages,blockedlogisticsoperationsandhikesinthepricesofrawmaterials.SinceMay,asthedomesticpandemiccontrolhasbecomesteadyandtherecoveryinproductionandlogisticsaccelerated,leadingoperatingindicatorsofthetextileindustryhaverallieddespitepressure,reflectingrobustresilienceandanti-riskabilityunderthesupportofnational"stablegrowth"policiesandmeasures.Ontheotherhand,China'sexportedtextilesandapparelachievedsteadygrowth.DatafromtheChina'sCustomsshowsthatinthefirsthalfof2022,thecountry'sexportedtextilesandappareltotaledUSD156.49billion,ayear-on-yearincreaseof11.7%.Underthesupportofariseinexportprices,theexportedamounthitarecordhighyearonyear.Intermsofexportmarkets,thesupplychainoftextileinSoutheastAsiaandothercountriesoperatesnormallythisyear,whichdrivesthesoundgrowthofsupplychainsofexportedfabrics,yarnsandothersupportingproducts.Inthefirsthalfof2022,ChinaexportedtextilesandapparelofUSD27.71billiontotheASEAN,up23.3%yearonyear.Inaddition,thecountry'sexporttothememberstatesoftheRegionalComprehensiveEconomicPartnership("RCEP")amountedtoUSD45.57billion,up13.7%yearonyear,demonstratingthattheimplementationoftheRCEPbenefitsasteadyandsoundexportenvironment.In2022,thetextileindustryisconfrontedwithcomplicateddevelopmentstatusandchallengestostableoperations.Moreover,theproductionandoperatingpressuretextileenterprisesfaceisprominent.TheCompanyhasnointerimdividendplan,eitherintheformofcashorstock.ThisReportanditssummaryhavebeenpreparedinbothChineseandEnglish.Shouldtherebeanydiscrepanciesormisunderstandingsbetweenthetwoversions,theChineseversionsshallprevail.
TableofContents
PartIImportantNotes,TableofContentsandDefinitions ...... 2
PartIICorporateInformationandKeyFinancialInformation ...... 6
PartIIIManagementDiscussionandAnalysis ...... 9
PartIVCorporateGovernance ...... 31
PartVEnvironmentalandSocialResponsibility ...... 35
PartVISignificantEvents ...... 39
PartVIIShareChangesandShareholderInformation ...... 48
PartVIIIPreferredShares ...... 62
PartIXBonds ...... 63
PartXFinancialStatements ...... 67
DocumentsAvailableforReference
1.ThefinancialstatementssignedandstampedbytheCompany’slegalrepresentativeandheadofaccountingaffairsandheadoftheaccountingdepartment;and
2.TheoriginalsofalltheCompany’sannouncementsanddocumentsdisclosedtothepublicduringtheReportingPeriodonSecuritiesTimes,ShanghaiSecuritiesNews,ChinaSecuritiesJournalandTaKungPao.
Definitions
| Term | Definition |
| The“Company”,“LTTC”,“Issuer”or“we” | LuThaiTextileCo.,Ltd.anditsconsolidatedsubsidiaries,exceptwherethecontextotherwiserequires |
| TheBoardofDirectors | TheBoardofDirectorsofLuThaiTextileCo.,Ltd. |
| TheSupervisoryCommittee | TheSupervisoryCommitteeofLuThaiTextileCo.,Ltd. |
| CSRC | TheChinaSecuritiesRegulatoryCommission |
| RMB,RMB’0,000 | ExpressedintheChinesecurrencyofRenminbi,expressedintenthousandRenminbi |
| The“CompanyLaw” | The“CompanyLawofthePeople‘sRepublicofChina” |
| The“SecuritiesLaw” | The“SecuritiesLawofthePeople‘sRepublicofChina” |
| The“ReportingPeriod”or“CurrentPeriod” | Theperiodfrom1January2022to30June2022 |
PartIICorporateInformationandKeyFinancialInformation
ICorporateInformation
| Stockname | LTTC,LTTC-B | Stockcode | 000726,200726 |
| Previousstockname(ifany) | N/A | ||
| Stockexchangeforstocklisting | ShenzhenStockExchange | ||
| CompanynameinChinese | 鲁泰纺织股份有限公司 | ||
| Abbr.(ifany) | 鲁泰纺织 | ||
| CompanynameinEnglish(ifany) | LUTHAITEXTILECO.，LTD | ||
| Abbr.(ifany) | LTTC | ||
| Legalrepresentative | LiuZibin | ||
IIContactInformation
| BoardSecretary | SecuritiesRepresentative | |
| Name | ZhangKeming | ZhengWeiyinandLiKun |
| Address | No.81,SonglingEastRoad,ZichuanDistrict,Zibo,Shandong,P.R.China | No.81,SonglingEastRoad,ZichuanDistrict,Zibo,Shandong,P.R.China |
| Tel. | 0533-5277008 | 0533-5285166 |
| Fax | 0533-5418805 | 0533-5418805 |
| Emailaddress | zhangkeming@lttc.com.cn | wyzheng@lttc.com.cn，likun@lttc.com.cn |
IIIOtherInformation
1.ContactInformationoftheCompanyIndicatebytickmarkwhetheranychangeoccurredtotheregisteredaddress,officeaddressandtheirzipcodes,websiteaddressandemailaddressoftheCompanyintheReportingPeriod.
□Applicable?NotapplicableNochangeoccurredtothesaidinformationintheReportingPeriod,whichcanbefoundinthe2021AnnualReport.
2.MediaforInformationDisclosureandPlacewherethisReportisLodgedIndicatebytickmarkwhetheranychangeoccurredtotheinformationdisclosuremediaandtheplaceforlodgingtheCompany’speriodicreportsintheReportingPeriod.
□Applicable?NotapplicableThenewspapersdesignatedbytheCompanyforinformationdisclosure,thewebsitedesignatedbytheCSRCfordisclosingtheCompany’speriodicreportsandtheplaceforlodgingsuchreportsdidnotchangeintheReportingPeriod.Thesaidinformationcanbefoundinthe2021AnnualReport.
3.OtherInformationIndicatebytickmarkwhetheranychangeoccurredtootherinformationintheReportingPeriod.
□Applicable?Notapplicable
IVKeyFinancialInformation
Indicatebytickmarkwhetherthereisanyretrospectivelyrestateddatuminthetablebelow.
□Yes?No
| H12022 | H12021 | Change(%) | |
| Operatingrevenue(RMB) | 3,330,294,463.25 | 2,220,313,650.94 | 49.99% |
| Netprofitattributabletothelistedcompany’sshareholders(RMB) | 393,950,852.46 | 153,497,344.66 | 156.65% |
| Netprofitattributabletothelistedcompany’sshareholdersbeforeexceptionalgainsandlosses(RMB) | 365,579,229.64 | 54,281,532.08 | 573.49% |
| Netcashgeneratedfrom/usedinoperatingactivities(RMB) | 117,482,408.74 | 182,761,025.14 | -35.72% |
| Basicearningspershare(RMB/share) | 0.45 | 0.17 | 164.71% |
| Dilutedearningspershare(RMB/share) | 0.39 | 0.19 | 105.26% |
| Weightedaveragereturnonequity(%) | 4.77% | 1.97% | 2.80% |
| 30June2022 | 31December2021 | Change(%) | |
| Totalassets(RMB) | 13,463,610,485.81 | 12,987,221,271.63 | 3.67% |
| Equityattributabletothelistedcompany’sshareholders(RMB) | 8,451,359,392.81 | 7,983,307,400.03 | 5.86% |
VAccountingDataDifferencesunderChina’sAccountingStandardsforBusinessEnterprises(CAS)andInternationalFinancialReportingStandards(IFRS)andForeignAccountingStandards
1.NetProfitandEquityunderCASandIFRS
□Applicable?NotapplicableNosuchdifferencesfortheReportingPeriod.
2.NetProfitandEquityDifferencesunderCASandForeignAccountingStandards
□Applicable?NotapplicableNosuchdifferencesfortheReportingPeriod.VIExceptionalGainsandLosses
?Applicable□Notapplicable
Unit:RMB
| Item | Amount | Note |
| Gainorlossondisposalofnon-currentassets(inclusiveofimpairmentallowancewrite-offs) | 2,696,076.03 | |
| Governmentsubsidieschargedtocurrentprofitorloss(exclusiveofgovernmentsubsidiesconsistentlygivenintheCompany’sordinarycourseofbusinessatfixedquotasoramountsaspergovernmentalpoliciesorstandards) | 27,720,772.37 | |
| Gainorlossonfair-valuechangesinheld-for-tradingfinancialassetsandliabilities&incomefromdisposalofheld-for-tradingfinancialassetsandliabilitiesandavailable-for-salefinancialassets(exclusiveoftheeffectiveportionofhedgesthatariseintheCompany’sordinarycourseofbusiness) | 5,594,541.44 | |
| Reversedportionsofimpairmentallowancesforreceivableswhicharetestedindividuallyforimpairment | 395,260.56 | |
| Non-operatingincomeandexpenseotherthantheabove | 833,061.06 | |
| Less:Incometaxeffects | 8,618,329.50 | |
| Non-controllinginterestseffects(netoftax) | 249,759.14 | |
| Total | 28,371,622.82 |
Particularsaboutotheritemsthatmeetthedefinitionofexceptionalgain/loss:
□Applicable?NotapplicableNosuchcasesfortheReportingPeriod.ExplanationofwhytheCompanyreclassifiesasrecurrentanexceptionalgain/lossitemlistedintheExplanatoryAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic—ExceptionalGain/LossItems:
□Applicable?NotapplicableNosuchcasesfortheReportingPeriod.
PartIIIManagementDiscussionandAnalysis
IPrincipalActivityoftheCompanyintheReportingPeriod
Inthefirsthalfof2022,theCompanyencounteredamorecomplexandseveremarketenvironmentfeaturingtherecurrentCOVID-19pandemic,geopoliticalconflicts,increasingenergypricesacrosstheworld,andhighinflation.Infaceofchallenges,theCompanyadheredtothe"customer-focused"philosophyandcontinuestopromotethestrategiesof"ImproveQualityandEfficiency"and"OverallInternationalization".Underthepremiseofimplementingpandemicpreventionandcontrol,theCompanyensuresanorderlyadvanceinstaffproductionandlife,managementandoperationthroughexpandingthemarket,adjustingthestructureandbuildingcapabilities.Supportedbyitsinternationalsupplychainandbusinessportfolio,theCompanycontinuedtoprovidequalityproductsandservicesforcustomersathomeandabroad.DuringtheReportingPeriod,theproductorderandbusinessperformancehavegraduallyrecovered.FortheReportingPeriod,theCompanyachievedoperatingrevenueofRMB3,330million,operatingprofitofRMB460million,anetprofitattributabletotheCompanyastheparentofRMB394million,andanetprofitattributabletotheCompanyastheparentbeforeexceptionalgainsandlossesofRMB366million,respectivelyup49.99%,175.64%,156.65%and573.49%whencomparedtothesameperiodoflastyear.NochangesoccurredtotheCompany’sprincipaloperations,productsorbusinessmodels,ortheprimaryfactorsdrivingtheCompany’sgrowthintheReportingPeriod.DuringtheReportingPeriod,theCompanyhasbeenratedasthe"EnterprisewithCompetitiveEdgesamongChina'sTextileandApparelsBrands"byChinaNationalTextileandApparelCouncil,asthe"Top30Enterprisesin2022intheDyeingandPrintingIndustry"byChinaDyeingandPrintingAssociation,andasthe"AAACreditEnterpriseinBusinessCreditAssessment"byChinaEnterpriseConfederationandChinaEnterpriseDirectorsAssociation.TheCompanyhasprioritizedthefollowingaspects:
(I)DeepenandimprovethemanagementtoenhancetheoperationefficiencyConfrontedbythecomplicatedglobaleconomicstatus,therecurrentpandemicanduncertaintiesofdomesticeconomicenvironment,themanagementoftheCompanycenteredaroundcustomers,exploredideastoimproveitsmanagement,andcontinuedtheLTPSconstruction.Also,theCompanyunderlineditssocialresponsibilityandcompliancemanagement,establishedaperformanceappraisalsystemorientedbyresults,anddeepenedinformation-basedsupportandbigdataminingandapplication.Byrefinedproceduresandinformation-basedmanagement,webracedtheproductlinesandmarketing,R&D,andotherdepartmentstoraisetheoperationefficiency.(II)RespondtochangesinmarketsandadjustmarkingstrategiescenteredaroundcustomersTheCompanyconsistentlystrengthenedthemarketdevelopmentwithadirectionofbecomingaglobalizedapparelsolutionproviderwithadvancedfabricsasourpillar.Basedonaccurategraspofmarkettrendandcustomerdemand,serviceupgradewascomprehensivelyachievedandwin-wincooperationwithcustomersrealized.UnderthegradualinfluenceofcomplexandchangeableCOVID-19pandemicandinlinewiththechangesindomesticandforeignmarkets,themarketstructurewasadjustedandoptimized,producttypeincreasedactivelyandbusinessofcareerapparelpromotedfurther.Additionally,customerrelationsandstickinesswerebuiltandcustomizeddevelopmentprojectspromoted.Focusedonthecoredemandsofcustomersandthetrendsinindustrialdevelopment,theCompanyrefinedtheinternalmodelofscientificresearchandinnovativemanagement,androlledoutkeyhierarchicaltechnologicalbreakthroughs.Foronething,itimprovedthefunctionsandqualityofexistingproductsandofferedfunctionalproductswithincreasingexperiencecompetitivenesstocustomers,forinstance,dazzlingdyeingserialproductsandpremiumknittedfabricsofshirts.Foranother,itintroducedanddevelopedgreenproductionandprocessingtechnologiesandtechnologiesrelatedtotherecyclingofwaterresources,chemicalsandenergy,andbolsteredsustainableoperations.Meanwhile,theCompanyshoreduptheintroductionanddevelopmentofrecyclableanddegradablematerialstosupplycustomerswithmoreecologicallysustainablegreentextiles.Atotalof33patentswereauthorized,includingnineinventionpatents.
(III)Continuetheprocessof"ImproveQualityandEfficiency"and"OverallInternationalization"toheightenmanagementefficiencyInthefirsthalfof2022,notwithstandingaturbulentinternational,politicalandeconomicenvironmentanddecliningdomesticdemand,theCompanymovedforwardwithitsstrategyof"ImproveQualityandEfficiency"and"OverallInternationalization"backedbyitsproductline.Onthebasisofpracticesinsalesregions,italsoimplementeditsdecisionsandarrangements,communicatedmorewithcustomers,andexpandednewmarketsfornewcustomerstoboostsalesresults.DuringtheReportingPeriod,theCompanybycomplementarydomesticandforeignadvantages,andtheadvantagesinglobalsupplychainsystemsandoverseaslayouts,establishedahigh-leveldialogmechanismforallstrategiccustomers,andpushedforwardstrategiccoordinationwiththosecustomers.Inadditiontothat,itsetupaperformanceteamtoprovidecomprehensiveservicesforthosecustomersfromR&Dtodelivery.(IV)CarryforwardthecorporatecultureandseekthegrowthofemployeesandtheCompanytogetherasguidedbythespiritofthecraftsmanDuringtheReportingPeriod,theCompanycontinuedtoinstructemployeesoncarryingforwardthespiritofthemodelworkerandthecraftsmanandtheprincipleofhard-workinganddown-to-earthtoupholdthecorporatevisionofa"World-classandcentury-oldtextileenterprise".WorkersweremobilizedtolearnthehistoryofthePartyandengageinParty-themedactivities,andPartymemberswereencouragedtoplaytherolesofleadershipanddemonstration.Variousformsofactivitieswereconductedlikeawardingexemplaryandpredominantworkersandskillcompetition.Reservedsharesunderthe2021restrictedshareincentiveschemeweregrantedagainforworkerstosharethefruitsofdevelopment.TheCompanyfosteredasound,innovativeandenablingworkingenvironmentinwhichallemployeeswereinvolvedandpulledtheirwisdomtogetherforbusinessgrowth.TheCompany,centeredonproducingmid-tohigh-endproducts,hasbeenratedasthe"EnterpriseforIncubationofHigh-endProductsinShandongProvince"forfourconsecutiveyears,andwasnamedNationalKeyTalentProject.Inthemeantime,itsholdingsubsidiaryLufengCo.,Ltd.wasalsonamed"EnterpriseforIncubationofHigh-endProductsinShandongProvince".TheCompanyissubjecttothedisclosurerequirementsforlistedcompaniesengagingintextileandapparelasstatedinGuidelineNo.3oftheShenzhenStockExchangeforSelf-regulationofListedCompanies—Industry-specificInformationDisclosure.Inthefirsthalfof2022,undertheimpactofrecurrentpandemic,andinternationalandgeopolitics,China'stextileindustrycameupagainstamoreseveredevelopmentenvironment.Furthermore,theindustry'sproductionmanagementandoperationsofsupplychainswereaffectedbyenormousshocks,andtheeconomywasunderconspicuouspressure.Sincethefourthquarterof2021,thecottonpricehasremainedhighoverhistoricalrecords.Becauseofthedownturnindemand,costisdifficulttobeapportionedtoterminalconsumptionandtheprofitsintheintermediatesupplychainareunderinfluence.Fromthedomesticmarket,theretailsalesoftextilesandapparelinthefirsthalfof2022werelowerthanthesameperiodoflastyear.Ledbyunstableinternationalstatusanddomesticpandemiccontrol,thewillingnessofconsumerstospendwasweak.Fromexportedtextiles,however,thefirsthalfof2022witnessedpositivegrowthyearonyear,representingoptimisticprogress.Ononehand,China'sexportedtextilesaccountedforalargepercentageglobally.Regardlessofanupheaval,geopoliticswascontrollablewithrestrictedimpactsonrequirements.Ontheotherhand,theproductionoftextilesandapparelwasresilientandresumptionofworkandproductionproactive,bothofwhichsecuredthesupplyofexports.Additionally,thedepreciationinRMBboostedtheexportvolumeoftextilesandapparel.Asaconsequence,steadyinternationaldemandoffsetthegloomydomesticone,thoughtherewasagapbetweencurrentdataandhistoricalrationaldata.
IICoreCompetitivenessAnalysis
1.TheCompanyhasacomprehensiveverticalindustrialchainandinternationalizedlayout.Itpossessesthewholeindustrialchainintegratingspinning,bleachinganddyeing,neatening,testing,andgarmentmaking,aswellasexcellentqualitycontrolcapabilitiesthroughvariouslinksoftheproductionofhigh-endyarn-dyedfabrics.Inordertoleverageinternationalresources,giveplaytotheadvantageofinternationalizedindustrialdistributionandreinforcetheleadinginternationalstatusinmanufacturingtheyarn-dyedfabricsforshirts,theCompanyhasbuiltvariousproductionbasesinCambodia,BurmaandVietnametc.,andestablishedthedesign
agencyinItaly,andthemarketserviceofficesintheU.S.andJapan.
2.TheCompanyhasbetterintegratedmanagementcapabilityandhigh-levelmanagementsystemarchitecture.Since1995,theCompanyhassuccessivelypassedthecertificationofISO9001qualitymanagementsystem,ISO14001environmentalmanagementsystem,ISO45001OccupationHealthSafetyManagementSystem,SA8000SocialResponsibilityManagementSystem,TheWorldwideResponsibleApparelProductionStandard(WRAP),SustainableTextileProduction(STeP),GlobalOrganicTextileStandard(GOTS),GlobalRecycleStandard(GRS)andChinaNationalAccreditationServiceforConformityAssessment(CNAS),andrealizedtheinternationalization,standardizationandnormalizationofthecorporatemanagement.Inordertomakeoutstandingachievementinitsoperatingmanagement,betterimprovetheCompany’sbusinessperformanceandcapabilities,theCompanyhasintroducedtheGB/T19580CriteriaforPerformanceExcellencestepbystep,setupthe“bigquality”system,promotedthemanagementinnovationandguaranteedthemanagementquality.
3.TheCompanyestablishesitshigh-leveltechnicalcooperationplatformbyvirtueofstrongR&Dcapability.Infact,theCompanyalwaysinsistsontheindependentinnovation,enhancesitstechnicalcooperationwithvariousresearchinstitutes,collegesanduniversities,strategicclientsandimportantsuppliersbyrelyingonvarioustechnicalplatformsincludingthenationalenterprisetechnicalcenter,thenationalindustrialdesigncenter,thenationaldemonstrationbaseforintroducingtalents,thenationalpost-doctoralscientificresearchstationandShandongProvincialEngineeringTechnologyResearchCenter,dedicatesitselftothecutting-edgetechnicalresearch,andgraduallytransformsfromtechnologyresearchtointegratedproductdevelopment.Besides,theCompanywillalsotransformfromtheovercomingofkeytechnicaldifficultiestothemasteryoftechnicalprinciplesandtheformulationofindustrialstandards,andfromthefocusontechnicalinnovationtothedynamicintegrationofnewtechniqueexplorationwithmodelinnovation,materializethelow-carbon,greenandsustainabledevelopment.
IIICoreBusinessAnalysis
Overview:
FortheReportingPeriod,theCompanyrecordedoperatingrevenueofRMB3,330million(a49.99%year-on-yearincrease);costofsalesofRMB2,497million(a37.88%year-on-yearincrease),sellingexpenseofRMB60million(a23.37%year-on-yearincrease),administrativeexpenseofRMB190million(a46.24%year-on-yearincrease),researchanddevelopmentexpenseofRMB115million(a12.51%year-on-yeardecline),andnetcashgeneratedfromoperatingactivitiesofRMB117million(a35.72%year-on-yeardrop).Year-on-yearchangesinkeyfinancialdata:
Unit:RMB
| H12022 | H12021 | Change(%) | Mainreasonforchange | |
| Operatingrevenue | 3,330,294,463.25 | 2,220,313,650.94 | 49.99% | Increasedsalesvolumesoffabricandshirts |
| Costofsales | 2,497,333,041.59 | 1,811,241,743.20 | 37.88% | Increasedsalesvolumesoffabricandshirts |
| Sellingexpense | 59,894,351.04 | 48,546,795.06 | 23.37% | |
| Administrativeexpense | 190,280,143.57 | 130,118,046.40 | 46.24% | Increasedequityincentiveexpendituresandperformancebonuses |
| Financecosts | -71,933,482.03 | 24,222,929.28 | -396.96% | Increasednetexchangegain |
| Incometaxexpense | 67,767,576.50 | 22,209,233.14 | 205.13% | Increasedgrossprofit |
| R&Dinvestments | 114,951,241.87 | 131,384,483.80 | -12.51% | |
| Netcashgeneratedfrom/usedinoperatingactivities | 117,482,408.74 | 182,761,025.14 | -35.72% | Increasedcashusedinoperatingactivities |
| Netcashgeneratedfrom/usedininvestingactivities | -522,296,795.23 | 299,774,945.83 | -274.23% | Decreasedcashgeneratedfrominvestingactivities |
| Netcashgeneratedfrom/usedinfinancingactivities | 136,772,256.21 | 155,808,685.68 | -12.22% | |
| Netincreaseincashandcashequivalents | -240,373,645.82 | 635,115,592.71 | -137.85% | Decreasednetcashgeneratedfrominvestingactivities |
SignificantchangestotheprofitstructureorsourcesoftheCompanyintheReportingPeriod:
NosuchchangesintheReportingPeriod.Breakdownofoperatingrevenue:
Unit:RMB
| H12022 | H12021 | Change(%) | |||
| Operatingrevenue | As%oftotaloperatingrevenue(%) | Operatingrevenue | As%oftotaloperatingrevenue(%) | ||
| Total | 3,330,294,463.25 | 100% | 2,220,313,650.94 | 100% | 49.99% |
| Byoperatingdivision | |||||
| Textileandapparel | 3,071,908,914.09 | 92.24% | 2,044,428,570.21 | 92.08% | 50.26% |
| Electricityandsteam | 120,886,686.18 | 3.63% | 112,014,559.74 | 5.04% | 7.92% |
| Others | 137,498,862.98 | 4.13% | 63,870,520.99 | 2.88% | 115.28% |
| Byproductcategory | |||||
| Fabricproducts | 2,439,097,155.42 | 73.24% | 1,644,786,813.50 | 74.08% | 48.29% |
| Shirts | 632,811,758.67 | 19.00% | 399,641,756.71 | 18.00% | 58.34% |
| Electricityandsteam | 120,886,686.18 | 3.63% | 112,014,559.74 | 5.04% | 7.92% |
| Others | 137,498,862.98 | 4.13% | 63,870,520.99 | 2.88% | 115.28% |
| Byoperatingsegment | |||||
| HongKong | 94,978,095.81 | 2.85% | 84,111,107.56 | 3.79% | 12.92% |
| JapanAndSouthKorea | 158,339,499.64 | 4.75% | 125,781,396.82 | 5.67% | 25.88% |
| SoutheastAsia | 1,142,731,135.42 | 34.31% | 494,884,594.42 | 22.29% | 130.91% |
| EuropeandAmerica | 554,392,368.30 | 16.65% | 227,821,017.11 | 10.26% | 143.35% |
| Others | 234,122,756.86 | 7.03% | 206,958,205.91 | 9.32% | 13.13% |
| MainlandChina | 1,145,730,607.22 | 34.41% | 1,080,757,329.12 | 48.68% | 6.01% |
Anyover30%YoYmovementsinthedataaboveandwhy:
?Applicable□NotapplicableRevenuefromSoutheastAsiaandtheEuropeanandAmericanregionincreased130.91%and143.35%respectivelycomparedtothesameperiodoflastyear,mainlydrivenbytherecoveryofoverseasdemand,leadingtoincreasedsalesvolumesoffabricandshirts.TheCompanyissubjecttothedisclosurerequirementsforlistedcompaniesengagingintextileandapparelasstatedinGuidelineNo.3oftheShenzhenStockExchangeforSelf-regulationofListedCompanies—Industry-specificInformationDisclosure.Operatingdivision,productcategoryoroperatingsegmentcontributingover10%ofoperatingrevenueoroperatingprofit:
Unit:RMB
| Operatingrevenue | Costofsales | Grossprofitmargin | YoYchangeinoperatingrevenue(%) | YoYchangeincostofsales(%) | YoYchangeingrossprofitmargin(%) | |
| Byoperatingdivision | ||||||
| Textileandapparel | 3,071,908,914.09 | 2,229,111,273.58 | 27.44% | 50.26% | 34.73% | 8.37% |
| Byproductcategory | ||||||
| Fabricproducts | 2,439,097,155.42 | 1,747,388,100.79 | 28.36% | 48.29% | 30.31% | 9.89% |
| Shirts | 632,811,758.67 | 481,723,172.79 | 23.88% | 58.34% | 53.60% | 2.35% |
| Byoperatingsegment | ||||||
| SoutheastAsia | 1,142,731,135.42 | 819,899,825.33 | 28.25% | 130.91% | 103.39% | 9.71% |
| EuropeandAmerica | 554,392,368.30 | 411,451,995.73 | 25.78% | 143.35% | 128.30% | 4.89% |
| MainlandChina | 1,145,730,607.22 | 909,525,949.31 | 20.62% | 6.01% | 3.03% | 2.30% |
CorebusinessdataoftheprioryearrestatedaccordingtothechangedstatisticalcaliberfortheReportingPeriod:
□Applicable?NotapplicablePhysicalstoresoftheCompany:
□Yes?NoNewphysicalstores:
□Yes?NoIndicatebytickmarkwhethertheCompanydisclosesitstopfivefranchisedstores.
□Yes?NoIVOtherInformationRequiredbyInformationDisclosureGuideforCompaniesEngagedinTextileandGarmentServices
1.Capacity
TheCompany'sowncapacity
| IndustryClassification | Item | H12022 | H12021 |
| Fabrics | Totalcapacity(fabrics)(10,000meters) | 14,715.00 | 14,680.00 |
| Rateofcapacityutilization | 87% | 66% |
| Plantsunderconstruction | TheCompany'sconvertiblebondfundraisingprojects:The"FunctionalFabricIntelligentEco-parkProject(PhaseI)"withanannualcapacityof35millionmetersofhigh-gradefunctionalfabricsandthe"VientianeProductionLineProjectofHigh-gradeFabrics(PhaseI)"wereinprogress. | TheCompany'sconvertiblebondfundraisingprojects:The"FunctionalFabricIntelligentEco-parkProject(PhaseI)"withanannualcapacityof35millionmetersofhigh-gradefunctionalfabricsandthe"ProductionLineProjectofHigh-gradePrintedandDyedFabrics"withanannualcapacityof25millionmetersofhigh-gradeprintedanddyedfabricswereinprogress. | |
| Textileandapparel | Totalcapacity(apparel)(10,000pieces) | 1,015.00 | 1,015.00 |
| Rateofcapacityutilization | 85% | 60% | |
| Plantsunderconstruction | WithrespecttotheLuAnGarmentInvestmentandConstructionProject(PhaseIII)of3,000,000-pieceProductionLine,equipmentinstallationhasbeencompletedinJune2022andtrialproductionwillsoonbegin. |
Year-on-yearchangeintherateofcapacityutilizationabove10%?Yes□NoCapacityutilizationincreasedasaresultoftherecoveryofoverseasdemandandthebackflowoforders.Overseascapacity?Yes□No
| IndustryClassification | Item | Domestic | Overseas |
| Fabrics | Percentageofcapacity | 80% | 20% |
| Capacitylayout | MainlyinShandongProvince | MainlyinT?yNinhProvince,Vietnam | |
| Rateofcapacityutilization | 89% | 81% | |
| Apparel | Percentageofcapacity | 44% | 56% |
| Capacitylayout | MainlyinShandongProvince | MainlyinT?nhAnGiang,Vietnam;SvayRiengProvince,Cambodia;andThilawaSpecialEconomicZone,Yangon,Myanmar | |
| Rateofcapacityutilization | 81% | 85% |
TheCompany’sexpansionplanondevelopingoverseasproductioncapacityTheCompanywillinvestinconstructionsofproductionbasesinT?yNinhProvince,Vietnam,toproducewovenandknittedfabrics.Fornow,theprojectsareunderpreparation.
2.SalesmodelandchannelsProductsaleschannelsandoperationmethodsa.Salesmodel
TheCompanyadoptedtheorder-basedsalesmodel.Withtheself-ownedtrademark"Luthai"foritsfabricsales,itprovidedcustomerswithdevelopmentanddesignplansbasedoncustomerneeds,fabricsandpatternsleadingthemarket,fashionandtechnology,functionsandenvironmentalprotection.Inaddition,itengagedinbrandoperationofspotfabriconthenewretaile-commerceplatform.Shirtsweremainlymadeaccordingtotheordersofcustomersathomeandabroad,andsoldbybrandowners.TheCompany'sself-ownedbrandwasoperatedthroughself-ownedexclusiveshopssuchasLuThaiExhibitionandSalesPavilion,countersofaffiliatedstoresinmallsande-networkingmarketing.Meanwhile,theCompanycouldprovidecustomerswithhigh-endcustomizedshirtsandcustomizedbusinessweartomeetthemarketdemandofthehigh-endserviceindustry.b.SaleschannelsDirectsales:TheheadquartersoftheCompanycarriedoutdirectinvestmentsandoperation,andoperatedandmanagedabrandattheheadquartersorbysettingupabranchcompanyinotherregionstoconcludetransactionswithcustomersoffline.Onlinesales:Throughself-developedplatformsandlargethird-partyonlineshoppingplatforms,theCompanyconcludedtransactionswithcustomersontheInternetanddeliveredgoodstocustomersbyexpressdeliveryservices.
Unit:RMB
| Saleschannels | Operatingrevenue | Costofsales | Grossprofitmargin | YoYchangeinoperatingrevenue | YoYchangeincostofsales | YoYchangeingrossprofitmargin |
| Onlinesales | 1,756,494.73 | 686,511.97 | 60.92% | -40.96 | -32.33 | -4.98% |
| Directsales | 2,441,686,268.96 | 1,748,045,164.09 | 28.41% | 48.11 | 30.21 | 9.85% |
| OEM/ODM | 628,466,150.40 | 480,379,597.52 | 23.56% | 59.96 | 54.46 | 2.72% |
| Total | 3,071,908,914.09 | 2,229,111,273.58 | 27.44% | 50.26 | 34.73 | 8.37% |
Reasonforchange
3.Sellingexpenseandbreakdownthereof
Unit:RMB
| Item | H12022 | H12021 | Amountofchange | percentageofchange | Note |
| Salaries | 34,521,119.07 | 24,817,866.24 | 9,703,252.83 | 39.10% | Increasedperformancebonusesforsalespersonnelduetohighersalesvolumes |
| Marketingexpense | 15,812,366.09 | 13,898,356.44 | 1,914,009.65 | 13.77% | |
| Depreciationcosts | 3,352,693.87 | 2,919,396.85 | 433,297.02 | 14.84% | |
| Officecosts | 4,537,454.44 | 5,228,400.21 | -690,945.77 | -13.22% | |
| Others | 1,670,717.57 | 1,682,775.32 | -12,057.75 | -0.72% | |
| Total | 59,894,351.04 | 48,546,795.06 | 11,347,555.98 | 23.37% |
4.Franchiseanddistribution
Franchiseesanddistributorsrecordedmorethan30%ofsalesrevenue
□Yes?No
5.Onlinesales
Onlinesalesrecordedmorethan30%ofsalesrevenue
□Yes?NoSelf-developedsalesplatforms?Yes□No
| Startofoperation | 30March2009 |
| Numberofregisteredusers | 145,000 |
| Averagenumberofactivemonthlyusers(AMU) | 5,000 |
| Returnrateofmainbrands | 3.00% |
| Returnrateofmaintypes | 3.00% |
Cooperationwiththird-partysalesplatforms?Yes□NoOnlinesaleschannelsopenedorclosedbytheCompany
□Applicable?NotapplicableImpactontheCompanyinthecurrentperiodandsubsequentperiods:
Notapplicable.
6.AgencyoperationmodelAgencyoperationmodelinvolved
□Yes?No
7.Inventory
Inventory
| Mainproducts | Daysofturnoverofinventories | Quantityofinventory | Inventoryage | Year-on-yearchangeininventorybalance | Reason |
| Fabrics(10,000meters) | 92 | 4,485.82 | Within1year | 23.11% | |
| Fabrics(10,000meters) | 972.04 | Over1year | -32.37% | Acceleratedde-stocking | |
| Shirts(10,000pieces) | 32 | 95.6 | Within1year | 15.93% | |
| Shirts(10,000pieces) | 21.55 | Over1year | 37.44% | DelayeddeliveryofsomeshirtsduetoCOVID-19 |
Reservesforfallingpricesofinventory
| Item | 30June2022 | ||
| Grossamount | Fallingpricereservesorprovisionforimpairmentoncontractperformancecost | Carryingamount | |
| Rawmaterials | 1,121,436,489.44 | 41,184,702.18 | 1,080,251,787.26 |
| Goodsinprocess | 529,722,583.05 | 13,872,192.02 | 515,850,391.03 |
| Productsonhand | 1,125,277,677.22 | 158,326,260.80 | 966,951,416.42 |
| Commissionedproducts | 16,875,738.64 | - | 16,875,738.64 |
| Materialsintransit | - | - | - |
| Total | 2,793,312,488.35 | 213,383,155.00 | 2,579,929,333.35 |
Inventoryinformationofretailchannelssuchasfranchisedstoresordistributors:
Notapplicable.
8.Brandbuilding
Productionandsalesofbrandclothing,apparelandhometextileproducts?Yes□NoSelf-ownedbrands
| Brandname | Trademarkname | Mainproducttypes | Characteristics | Targetconsumergroup | Pricezoneofmainproducts | Mainsalesareas | Citylevels |
| LTGRFF | LTGRFF | Shirtsandsuits | Classicbusinessattire | Businesspeople | RMB500-3000 | EastChina,SouthChinaandSouthwestChina | Provincialcapitalcitiesandotherprefecture-levelcities |
Trademarkownershipdisputes
□Applicable?Notapplicable
9.Others
Engagedinbusinessrelatedtoappareldesign
□Yes?NoWhethertheCompanyheldmeetingsfortheplacementoforders
□Yes?No
VAnalysisofNon-CoreBusinesses
?Applicable□Notapplicable
Unit:RMB
| Amount | As%oftotalprofit | Source/Reason | Recurrentornot | |
| Returnoninvestment | 1,448,571.38 | 0.31% | Investmentincomefromthedisposalofheld-for-tradingfinancialassets | Not |
| Gain/lossonchangesinfairvalue | 3,069,030.56 | 0.67% | Gain/lossonchangesinfairvalueofheld-for-tradingfinancialassets | Not |
| Assetimpairments | -81,695,738.30 | -17.71% | Inventoryvaluationallowances | Not |
| Non-operatingincome | 3,026,253.46 | 0.66% | Incomeofnon-operatingcompensation,etc | Not |
| Non-operatingexpense | 2,165,139.66 | 0.47% | Non-operatingdonationsandcompensations,etc. | Not |
VIAnalysisofAssetsandLiabilities
1.SignificantChangesinAssetComposition
Unit:RMB
| 30June2022 | 31December2021 | Changeinpercentage(%) | Reasonforanysignificantchange | |||
| Amount | As%oftotalassets | Amount | As%oftotalassets | |||
| Monetaryassets | 1,925,789,127.57 | 14.30% | 1,999,712,889.35 | 15.40% | -1.10% | |
| Accountsreceivable | 667,240,987.64 | 4.96% | 647,277,198.51 | 4.98% | -0.02% | |
| Inventories | 2,579,929,333.35 | 19.16% | 2,345,346,794.28 | 18.06% | 1.10% | |
| Investmentproperty | 20,911,618.62 | 0.16% | 21,362,302.03 | 0.16% | 0.00% | |
| Long-termequityinvestments | 155,042,645.67 | 1.15% | 169,443,106.66 | 1.30% | -0.15% | |
| Fixedassets | 5,542,475,634.61 | 41.17% | 5,561,601,374.44 | 42.82% | -1.65% | |
| Constructioninprogress | 274,563,543.36 | 2.04% | 237,579,082.99 | 1.83% | 0.21% | |
| Right-of-use | 477,203,293.08 | 3.54% | 257,019,286.15 | 1.98% | 1.56% | |
| assets | |||||
| Short-termborrowings | 1,259,466,003.35 | 9.35% | 1,011,034,138.32 | 7.78% | 1.57% |
| Contractliabilities | 159,719,228.93 | 1.19% | 204,967,348.96 | 1.58% | -0.39% |
| Long-termborrowings | 685,339,710.99 | 5.09% | 684,962,473.24 | 5.27% | -0.18% |
| Leaseliabilities | 110,455,594.21 | 0.82% | 121,357,658.41 | 0.93% | -0.11% |
2.MajorAssetsOverseas
?Applicable□Notapplicable
| Assets | Causeofformation | Assetscale | Location | Operationmodel | Controlmeasurestoensureassetsafety | Earningposition | As%ofnetassets | Riskofmaterialimpairmentornot |
| LuThai(HongKong)TextileCo.,Ltd. | Set-up | 216,012,809.76 | HongKong | Sales-oriented | KeymanagementpersonnelassignedbytheCompanyastheparent | 3,340,621.91 | 2.45% | Not |
| LuThai(America)TextileCo.,Ltd. | Set-up | 2,678,224.06 | NewYork | Sales-oriented | KeymanagementpersonnelassignedbytheCompanyastheparent | -124,596.08 | 0.03% | Not |
| QimingApparelCo.,Ltd. | Set-up | 186,259,979.15 | SvayRieng | Production-oriented | KeymanagementpersonnelassignedbytheCompanyastheparent | 12,508,433.09 | 2.11% | Not |
| VanguardApparel | Set-up | 111,324,570.29 | Yangon | Production-oriented | Keymanagemen | 10,476,744.95 | 1.26% | Not |
| Co.,Ltd. | tpersonnelassignedbytheCompanyastheparent | |||||||
| ContinentalTextileCo.,Ltd. | Set-up | 2,760,279,277.84 | T?yNinh | Production-oriented | KeymanagementpersonnelassignedbytheCompanyastheparent | 133,235,204.77 | 31.24% | Not |
| LuAnGarmentsCo.,Ltd. | Set-up | 267,986,587.07 | T?nhAnGiang | Production-oriented | KeymanagementpersonnelassignedbytheCompanyastheparent | 5,420,764.20 | 3.03% | Not |
| TianpingInternationalInvestmentCo.,Ltd. | Set-up | 409,415,467.61 | Singapore | Investment-oriented | KeymanagementpersonnelassignedbytheCompanyastheparent | 2,513,856.07 | 4.63% | Not |
| VientianeTextileCo.,Ltd. | Set-up | 230,548,965.43 | Vietnam | Production-oriented | KeymanagementpersonnelassignedbytheCompanyastheparent | 351,473.77 | 2.61% | Not |
3.AssetsandLiabilitiesatFairValue
?Applicable□Notapplicable
Unit:RMB
| Item | Beginningamount | Gain/lossonfair-valuechangesintheReportingPeriod | Cumulativefair-valuechangeschargedtoequity | ImpairmentallowancefortheReportingPeriod | PurchasedintheReportingPeriod | SoldintheReportingPeriod | Otherchange | Endingamount |
| Financialassets | ||||||||
| 1.Held-for-tradingfinancialassets(excludingderivativefinancialassets) | 190,052,000.00 | 6,005,570.79 | 280,000,000.00 | 476,057,570.79 | ||||
| 2.Derivativefinancialassets | 1,727,000.00 | 685,949.57 | 2,412,949.57 | |||||
| Subtotaloffinancialassets | 191,779,000.00 | 6,691,520.36 | 280,000,000.00 | 478,470,520.36 | ||||
| Others | 34,663,071.88 | -237,547.15 | 5,900,011.63 | 40,325,536.36 | ||||
| Totaloftheabove | 226,442,071.88 | 6,691,520.36 | -237,547.15 | 280,000,000.00 | 5,900,011.63 | 518,796,056.72 | ||
| Financialliabilities | 0.00 | 3,622,489.80 | 3,622,489.80 |
Contentofotherchange:
Changesinaccountsreceivablefinancing.SignificantchangestothemeasurementattributesofthemajorassetsintheReportingPeriod:
□Yes?No
4.RestrictedAssetRightsasatthePeriod-End
Fordetails,seePartX.VII.61.AssetswithrestrictedownershipandusingrightinthisReport.
VIIInvestmentsMade
1.TotalInvestmentAmount
□Applicable?Notapplicable
2.MajorEquityInvestmentsMadeintheReportingPeriod
□Applicable?Notapplicable
3.MajorNon-EquityInvestmentsOngoingintheReportingPeriod
□Applicable?Notapplicable
4.FinancialInvestments
(1)SecuritiesInvestments
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
(2)InvestmentsinDerivativeFinancialInstruments?Applicable□Notapplicable
Unit:RMB'0,000
| Operator | RelationshipwiththeCompany | Related-partytransaction | Typeofderivative | Initialinvestmentamount | Startingdate | Endingdate | Beginninginvestmentamount | PurchasedintheReportingPeriod | SoldintheReportingPeriod | Impairmentprovision(ifany) | Endinginvestmentamount | ProportionofclosinginvestmentamountintheCompany’sendingnetassets | Actualgain/lossintheReportingPeriod |
| Commercial | Non-related | No | Forward | 21,433.39 | 15March | 24November | 0.00 | 21,433.39 | 19,791.59 | 1,641.80 | 0.19% | 252.55 |
| bank | exchangesettlement | 2022 | 2022 | ||||||||||
| Commercialbank | Non-related | No | Foreignexchangeoption | 57,168.00 | 26January2021 | 30December2022 | 38,008.00 | 19,160.00 | 11,600.00 | 45,568.00 | 5.16% | 0.00 | |
| Commercialbank | Non-related | No | Forwardexchangetransactions | 12,701.80 | 4April2022 | 10October2022 | 0.00 | 12,701.80 | 0.00 | 12,701.80 | 1.44% | 0.00 | |
| Total | 91,303.19 | -- | -- | 38,008.00 | 53,295.19 | 31,391.59 | 59,911.60 | 6.79% | 252.55 | ||||
| Capitalsourceforderivativeinvestment | TheCompany’sownmoney | ||||||||||||
| Lawsuit(ifapplicable) | N/A | ||||||||||||
| Disclosuredateofboardofdirectorsannouncementonapprovalofderivativeinvestment(ifany) | 15June2021 | ||||||||||||
| AnalysisonrisksandcontrolmeasuresofderivativeproductsheldintheReportingPeriod(includingbutnotlimitedtomarketrisk,liquidityrisk,creditrisk,operationrisk,lawrisk,etc.) | TheCompanyconductedderivativesproductstransactioninorderforhedging.Andtheforwardsettlementhedgingwasoperatedbyinstallments,withtherelevantamountnotmorethantheplannedderivativesproductstransactions.Andallderivativesproductstransactionwaszero-deposit.Meanwhile,theCompanyhadacompleteriskcontrolsystemforsufficientanalysisandpreventionofpossibleriskssuchasmarketrisk,liquidityriskandcreditrisk,operationriskandriskoflawsandregulation.1.Marketrisk:whentheinternationalanddomesticeconomicsituationschange,thecorrespondingchangesinexchangeratesandinterestratesmayhaveanadverseimpactonthefinancialderivativestransactionsoftheCompany.Precautionarymeasurestobetakeninclude:theCompanychoosesrisk-controlledfinancialderivativetoolswithsimplestructureandgoodliquiditytocarryoutthehedgingbusiness,strictlycontrolsthescaleoffinancialderivativestradingbystagedoperations,andadjuststhestrategyaccordingtomarketchangesinatimelymanner.2.Liquidityriskandcreditrisk:acreditriskarisingfromfailureofthecontractuallydueCompanyorcounterpartyinperformingthecontractduetoliquidityorfactorsotherthanliquidity.Precautionarymeasurestobetakeninclude:theCompanydeterminestheupper | ||||||||||||
| limitofderivativestransactionamountsaccordingtoproductionandoperationscaleaswellasforeignexchangeincome,andconductsoperationsbystageaccordingtothebudgetoffuturecollectionsanddisbursement.Thederivativetradesarefreeofguaranteedepositandcanstillbeguaranteedinperformanceafterthecontractexpiresbymeansofextensionandbalancesettlementetc.topreventtheCompanyfromcreditdamagesduetolackofliquidity.TheCompanyselectsfinancialinstitutionswithstrongcapabilityandgoodreputationasacounterpartyandsignsstandardderivativetradingcontractstostrictlycontrolcreditriskofthecounterparty.3.Operationrisk:Thederivativeshadhighspecialtyandcomplexity,sointernaloperationprocedures,staffsandexternaleventswouldmaketheCompanytoundertakerisksduringthetransaction.Riskcontrolmeasures:TheCompanypromulgatedstrictauthorizationandapprovalsystemandperfectregulatorymechanism,fixedtheoperationproceduresandapprovalproceduressystemtoconductderivativeproductstransaction,implementedstrictauthorizationandpostchecksandbalancessystem,meanwhile,ithelpedthemestablisharisk-neutralawarenessofexchangerateandimprovedtheoverallqualityofrelevantpersonnelthroughstrengtheningtheprofessionalethicseducationandbusinesstrainingforthem.Besides,itestablishedtheSystemofReportingtheAbnormalSituationTimelysoastoensuretolowertheoperationriskstothemaximum.4.Riskoflawsandregulation:TheCompanyconductedderivativesproductstransactioninstrictaccordancewithrelevantlawsandrules.Iftherewerenostandardoperationproceduresandstrictapprovalprocedures,itwaseasytocausecompliantandregulatoryrisksexistinginthevalidityandfeasibilityofcontract,commitmentsandotherlegaldocumentssigned.Riskcontrolmeasures:TheCompanycarefullystudiedandmasteredlaws,regulationsandpoliciesrelevanttoderivativeproductstransaction,formulatedinternalcontrolrulesfortheforwardsettlementhedgingbusiness,standardizedtheoperationprocedures.Andstrengthenedthecompliantexaminationonderivativeproductstransactionbusiness.TheCompanyconductedderivativetransactionbusinessaccordingtotherelevantapprovalprocedure,whichwasinlinewithrelevantlaws,regulations,theCompany’sArticlesofAssociation,theManagementRulesforSecuritiesInvestmentsandDerivativeTransactionofLuThaiTextileCo.,Ltd.,theProposalonPlanforDerivativeTransactionofLuThaiTextileCo.,Ltd.approvedatthe25thMeetingofthe9thBoardofDirectors,andperformedrelevantinformationdisclosureresponsibilities. | |
| ChangesofmarketpricesorfairvaluesintheReportingPeriodoftheinvestedderivatives.Andtheanalysisonthefairvalueofthederivatives | 1.Asat30June2022,theCompanyheld13unduefinancialderivativescontracts,totalingUSD92.5million,amongwhichUSD70millionwasforeignexchangeoptions,forwardexchangetransactionsUSD20millionandforwardexchangesettlementUSD2.5million.2.FromJanuarytoJune2022,thetotalamountofallduefinancialderivativesofthe |
| shouldincludethespecificusemethodsandtherelevantassumptionsandparameters. | CompanywasequivalenttoUSD51millionwhichwereallimplementedbasedoncontracts,generatinggainsofRMB2,525,500.Amongthem,gainsofRMB2,525,500werefromthedeliveryofdueforwardforexsettlementcontractsofUSD31million,andUSD20millionwasforexoptionportfoliocontractsnotmeetingtherequirementfordelivery. |
| WhethersignificantchangesoccurredtotheCompany’saccountingpolicyandspecificaccountingprinciplesofderivativesintheReportingPeriodcomparedtothepreviousReportingPeriod | Nosignificantchanges |
| SpecificopinionfromindependentdirectorsontheCompany’sderivativesinvestmentandriskcontrol | IndependentdirectorsZhouZhiji,PanAiling,WangXinyuandQuDongmeihaveissuedthefollowingprofessionaladviceontheCompany'sderivativetransactionbusiness:WebelievethattheCompany'sforeignexchangederivativetransactionbusinessisperformedontheconditionofensuringnormaloperations.Transactionsusingitsownfundsarebeneficialtoavoidingtheriskofexchangeratefluctuations,andareaneffectivetooltohedgeRMBexchangeraterisk.Bystrengtheninginternalcontrol,implementingstop-lossandriskpreventionmeasures,theCompanycanimproveitsabilitytoresistexchangeratefluctuationsandimproveitsmanagementlevel.ThederivativetransactionplanproposedbytheBoardofDirectorsisfeasible,necessary,andtherisksaremanageable.ThereisnodamagetotheinterestsoftheCompanyandalltheshareholders. |
5.UseofFundsRaised
?Applicable□Notapplicable
(1)OverallUseofFundsRaised?Applicable□Notapplicable
Unit:RMB’0,000
| Raisingyear | Raisingmanner | Totalofraisedcapital | Totalofraisedcapitalusedinthisperiod | Cumulativeamountofraisedcapitalused | Totalofraisedcapitalwhichpurposeischangedinthereportperiod | Cumulativeamountofraisedcapitalwhichpurposeischanged | Ratioofcumulativeamountwhichpurposeischanged | Totalofraisedcapitalunused | Purposeanddirectionofraisedcapitalunused | Amountofraisedcapitalunusedfortwoyears |
| 2020 | Convertiblebonds | 138,800 | 5,873.62 | 82,027.9 | 25,000 | 25,000 | 18.01% | 60,972.04 | By30June2022,RMB529.7204millionintheunusedraisedcapitalwas | 0 |
| depositedintheraisedcapitalaccount,andRMB80millionwasusedforcashmanagement. | ||||||||||
| Total | -- | 138,800 | 5,873.62 | 82,027.9 | 25,000 | 25,000 | 18.01% | 60,972.04 | -- | 0 |
| Generalusesituationofraisedcapital | ||||||||||
| (I)AmountofactualraisedcapitalandarrivaldateUponapprovalbyChinaSecuritiesRegulatoryCommissioninthedocument“ZJXK[2020]299”,theCompanypublicallyissued14,000,000convertiblebondson9April2020atparvalueRMB100,theissuedamountwasRMB1.4billion,andtheCompanyactuallyreceivedtheamountofraisedcapitalRMB1.388billionafterdeductedtheunderwritingfeeRMB12million.TheaboveamountwasremittedincashinRMB.Afterdeductedlegalfee,accountantfee,creditratingfee,informationdisclosurefee,issuingcommissionandothercostsRMB2.54millionintotalfromtheaboveactuallyraisedcapital,thenetamountofraisedcapitalwasRMB1385.46million,whichenteredtheaccounton15April2020,andGrantThorntonInternationalLtd(SpecialGeneralPartnership)issuedthecapitalverificationreportwithreferenceNo.GrantThorntonVerification[2020]371ZC0090foritafterverification.(II)UsesituationandbalanceofraisedcapitalAsat30June2022,theCompanydirectlyinvestedRMB820,279.000intotalfromtheraisedcapitalforitscapitalraisingprojects,ofwhichRMB761,542,800wasinvestedinthepreviousperiodandRMB58,736,200inthisReportingPeriod.TheunusedamountwasRMB609,720,400(includingthenetincomeofRMB42,296,400frominterestincomedeductedhandlingcharge). | ||||||||||
(2)CommitmentsonProjectswithFundsRaised?Applicable□Notapplicable
Unit:RMB’0,000
| Committedinvestmentprojectsandusedirectionofoverraisedcapital | Whethertheprojectsarechanged(includingpartiallychangedprojects) | Totalofcommittedinvestmentofraisedcapital | Totalinvestmentaftermodification(1) | Amountinvestedinthisreportperiod | Cumulativeinvestmentamountbytheendofperiod(2) | Investmentprogressbytheendofperiod(3)＝(2)/(1) | Datewhentheprojectreachedtheintendedavailablestatus | Benefitrealizedinthisreportperiod | Whetherreachedtheexpectedbenefit | Whetherprojectfeasibilitychangedsignificantly |
| Committedinvestmentprojects | ||||||||||
| Functionalfabricsmarteco-parkproject(Phase1) | No | 85,000 | 85,000 | 5,873.62 | 53,222.31 | 62.61% | 31May2023 | 0 | N/A | No |
| ConstructionofVientianehigh-endfabricproductionlineproject(PhaseI) | Yes | 25,000 | 25,000 | 0 | 0 | 0.00% | 31December2024 | 0 | N/A | No |
| Supplementworkingcapital | No | 28,800 | 28,800 | 0 | 28,805.59 | 100.02% | 0 | N/A | No | |
| Subtotalofcommittedinvestment | -- | 138,800 | 138,800 | 5,873.62 | 82,027.9 | -- | -- | 0 | -- | -- |
| projects | ||||||||||
| Usedirectionofoverraisedcapital | ||||||||||
| N/A | ||||||||||
| Repaymentofbankloans(ifany) | -- | 0 | 0 | 0 | 0 | 0.00% | -- | -- | -- | -- |
| Supplementworkingcapital(ifany) | -- | 0 | 0 | 0 | 0 | 0.00% | -- | -- | -- | -- |
| Subtotalofusedirectorofoverraisedcapital | -- | 0 | 0 | 0 | 0 | -- | -- | 0 | -- | -- |
| Total | -- | 138,800 | 138,800 | 5,873.62 | 82,027.9 | -- | -- | 0 | -- | -- |
| Situationandreasonsthatitdidnotreachtheplannedprogressorexpectedreturn(basedonspecificprojects) | IntheReportingPeriod,duetotheimpactoftheCOVID-19epidemic,thecapitalraisingprojects“Functionalfabricsmarteco-parkproject(Phase1)”delayedinconstructionprogress. | |||||||||
| Noteforsignificantchangeofprojectfeasibility | N/A | |||||||||
| Amount,purposeanduseprogressofoverraisedcapital | N/A | |||||||||
| Changeofimplementationsiteofcapitalraisingproject | N/A | |||||||||
| Adjustmentofimplementationmodeofcapitalraisingproject | N/A | |||||||||
| Advanceinvestmentanddisplacementofcapitalraisingproject | Applicable | |||||||||
| By30April2020,thetotalamountofdisplacedcapitalwasRMB191.4288million,includingtheamountRMB189.8388millioninvestedintheprojectwiththeself-raisedcapitaloftheCompanyinadvance,andpaymentofissuingcostRMB1.59millionwithitsself-raisedcapital. | ||||||||||
| Temporarysupplement | N/A | |||||||||
| toworkingcapitalwithunusedraisedcapital | |
| Balanceofraisedcapitalafterimplementofprojectandrelevantreasons | N/A |
| Purposeandusedirectionofunusedraisedcapital | By30June2022,RMB529.7204millionintheunusedraisedcapitalwasdepositedintheraisedcapitalaccount,andRMB80millionwasusedforcashmanagement. |
| Problemsexistinginuseandinformationdisclosureofraisedcapitalorothersituation | None |
(3)ChangesinProjectswithFundsRaised?Applicable□Notapplicable
Unit:RMB’0,000
| Itemsafterchanges | Correspondingoriginalcommitteditems | Amountofplannedfundsinvestedafterchanges(1) | ActualinvestmentamountintheReportingPeriod | Accumulativeinvestmentamountastheperiod-end(2) | Investmentscheduleastheperiod-end(3)=(2)/(1) | Dateofreachingintendeduseoftheproject | RealizedincomeintheReportingPeriod | Whetherreachedanticipatedincome | Whetheroccurredsignificantchangesinprojectfeasibility |
| ConstructionofVientianehigh-endfabricproductionlineproject(PhaseI) | High-endprintinganddyeingfabricproductionlineproject | 25,000 | 0 | 0 | 0.00% | 31December2024 | 0 | N/A | No |
| Total | -- | 25,000 | 0 | 0 | -- | -- | 0 | -- | -- |
| Notesofreasonsforchanges,decision-makingproceduresandinformationdisclosure(byspecificitems) | InaccordancewiththeCompany'sglobalstrategiclayoutandmarketdemand,theCompanyplannedtoadjustitscapacitystructure.On9June2022,thesecondextraordinarygeneralmeetingandthefirstbondholders'meetingthisyeardeliberatedandadoptedtheProposalonChangingthePurposeofPartialRaisedCapitalUnused.Theaimwastoterminatethe"High-endprintinganddyeingfabricproductionlineproject"andleveragetheraisedcapitalofthisprojectofRMB250millionforconstructionofVientianehigh-endfabricproductionlineproject(PhaseI),disclosedon10June2022onthecninfowebsite("www.cninfo.com.cn"). | ||||||||
| Conditionandreasonfornotreachingthescheduleandanticipatedincome(byspecificitems) | N/A | ||||||||
| Notesofconditionofsignificantchangesoccurredinprojectfeasibility | N/A | ||||||||
VIIISaleofMajorAssetsandEquityInterests
1.SaleofMajorAssets
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
2.SaleofMajorEquityInterests
□Applicable?Notapplicable
IXMajorSubsidiaries
?Applicable□NotapplicableMajorfully/majority-ownedsubsidiariesandthoseminority-ownedsubsidiarieswithanover10%effectontheCompany’snetprofit:
Unit:RMB
afterchanges
Name
| Name | RelationshipwiththeCompany | Principalactivity | Registeredcapital | Totalassets | Netassets | Operatingrevenue | Operatingprofit | Netprofit |
| LufengWeaving&DyeingCo.,Ltd. | Subsidiary | Fabric | 706,160,000 | 1,933,899,903.67 | 1,303,272,800.07 | 824,088,561.65 | 64,010,877.84 | 53,903,771.42 |
| ShandongLulianNewMaterialsCo.,Ltd. | Subsidiary | Fabric | 400,000,000 | 978,299,071.18 | 243,490,104.62 | 37,558,406.73 | -45,430,711.33 | -45,385,029.29 |
SubsidiariesobtainedordisposedintheReportingPeriod:
□Applicable?NotapplicableInformationaboutmajormajority-andminority-ownedsubsidiaries:
LufengWeaving&DyeingCo.,Ltd.(hereinaftercalled“LufengWeaving&Dyeing”)istheholdingsubsidiaryoftheCompany.Registrationplace:Zibo,Shandong;registeredcapital:RMB706.160million.Themainlymanufacturingandsellingtextileprintinganddyeingproductsandtheproductsofclothingandgarments,anditwereauthenticatedtobehigh-techenterpriseinOctober2014.DuringtheReportingPeriod,duetotherecoveryofmarketdemandandadditionalproductsales,theCompanyachievedoperating
revenueofRMB824million,up56.07%yearonyearandnetprofitofRMB53,903,800,up316.32%yearonyear.ShandongLulianNewMaterialsCo.,Ltd.(hereinafterreferredtoas"LulianNewMaterials")istheholdingsubsidiaryoftheCompany.Registrationplace:Zibo,Shandong;registeredcapital:RMB400million.ItwasestablishedinApril2019andmainlymanufacturingandsellingfunctionalfabrics.DuringtheReportingPeriod,projectswereunderconstructionandpartofproductswerereleasedcontinually.TheCompanyreportedoperatingrevenueofRMB37,558,400,up167.12%yearonyearandnetprofitofRMB-45,385,000,down92.03%yearonyear.XStructuredBodiesControlledbytheCompany
□Applicable?Notapplicable
XIRisksFacingtheCompanyandCountermeasures
1.Impactofeconomicenvironment:underthegreatuncertaintyoftheinternationaltradeandgeopoliticalrisksandtherepeatedimpactoftheCOVID-19epidemic,theCompanywillfacemorechallenges.Inaddition,theeconomicdevelopmentofChinashouldbetransformedandupgrade,therefore,theCompanywillcontinuetostrictlyexecutecoronaviruscontrolmeasures,guaranteeproductionandsafetyandfurtherutilizevariousresourcesathomeandabroadtodevelopdomesticandoverseasmarkets,soastocatchdevelopmentopportunitiesafterCOVID-19iscontrolled.
2.Pricefluctuationofrawmaterials:cottonisthemajorproductionmaterialoftheCompany,andthepriceofcottonisimpactedbymarketsupplyanddemand,climate,policy,exchangerate,quotaandotherfactors,therefore,basedontheproductionordersandimportquota,theCompanyseriouslyconsiderstheinformationofglobalcottonmarket,properlyworksoutprocurementstrategyandactivelycontrolcostandgrossmarginfluctuationarisingfrompricechangeofcotton.
3.Changeofexchangerate:theCompanyhasalargeratioinimportandexportbusiness.Inrecentyears,thebi-directionalfluctuationsinRMBexchangeratehavebecomeincreasinglynormalandflexible.Theexchangeratefluctuationwillplacearemarkableimpactonitsperformance.Tolowertheimpactofexchangeratefluctuations,theCompanystucktotherisk-neutralphilosophy.Basedonactualneedsarisingfromproductionandoperations,itincorporatedexchangeraterisksintoroutineoperationsmanagement,andtookmeasuresatpropertimingtominimizetheinfluenceofexchangeraterisksontheoperations:
firstly,theCompanyappropriatelyconductedforeignexchangehedging,usingforwardFXsalesandpurchase,forwardforeignexchangetradingandoptionportfoliostoavoidsomerisksSecondly,theCompanymadereasonablearrangementonsettlementdayandcurrencystructureandconclusionofagreementsonfixedforeignexchangeratetoavoidexchangerate-relatedrisks.Thirdly,theCompanyadjustedtheRenminbiandforeign-currencyliabilitiesstructuretoactivelypreventrisks.Fourthly,accordingtothefluctuationtrendofexchangerates,theCompanyproperlyadjustedimportsofrawandauxiliarymaterialstopartiallyoffsettheinfluenceofexchangeratefluctuationsontheCompany.
PartIVCorporateGovernance
IAnnualandExtraordinaryGeneralMeetingConvenedduringtheReportingPeriod
1.GeneralMeetingsConvenedduringtheReportingPeriod
| Meeting | Type | Investorparticipationratio | Conveneddate | Disclosuredate | Indextodisclosedinformation |
| The1stExtraordinaryGeneralMeetingof2022 | ExtraordinaryGeneralMeeting | 32.62% | 7March2022 | 8March2022 | TheCompanydeliberatedandapproved:1.ProposalonRepurchaseandCancelAuthorizedbutUnlockedRestrictedShareoftheIncentivePersonnelnotConformingtotheIncentiveCondition;and2.ProposalonAmendmenttothePartialTermsofArticlesofAssociation. |
| The2021AnnualGeneralMeeting | AnnualGeneralMeeting | 32.66% | 20May2022 | 21May2022 | Itdeliberatedandapproved:1.Proposalon2021AnnualWorkReportoftheBoardofDirectors;2.Proposalon2021AnnualWorkReportoftheBoardofSupervisors;3.ProposalontheCompany's2021AnnualReportandItsAbstracts;4.ProposalontheCompany's2021AnnualFinancialAccountingReport;5.ProposalontheCompany'sProfitDistributionPlanfor2021;and6.ProposalontheRenewaloftheCompany's2022AnnualFinancialAuditandInternalControlAuditInstitution. |
| The2ndExtraordinaryGeneralMeetingof2022 | ExtraordinaryGeneralMeeting | 30.91% | 9June2022 | 10June2022 | Itdeliberatedandapproved:1.ProposalontheElectionofNon-IndependentDirectorsoftheTenthSessionoftheBoardofDirectors;2.ProposalontheElectionofSupervisorsoftheTenthSessionoftheBoardofDirectors;3.ProposalontheElectionofSupervisorsoftheTenthSessionoftheBoardofSupervisors;and4.ProposalonChangingthePurposeofPartialRaisedCapital. |
| The3rdExtraordinaryGeneralMeetingof2022 | ExtraordinaryGeneralMeeting | 31.42% | 15July2022 | 16July2022 | Itdeliberatedandapproved:1.ProposalonRepurchaseoftheCompany'sDomesticallyListedForeignShares(BShare);and2.ProposalonRepurchaseandCancelAuthorizedbutUnlockedRestrictedShareoftheIncentivePersonnelnotConformingtotheIncentiveCondition. |
2.ExtraordinaryGeneralMeetingConvenedatRequestofPreferenceShareholderswithResumedVotingRights
□Applicable?Notapplicable
IIChangeofDirectors,SupervisorsandSeniorManagement
?Applicable□Notapplicable
| Name | Officetitle | Typeofchange | Dateofchange | Reasonforchange |
| FujiwaraHidetoshi | Director | Leftforexpirationofterm | 9June2022 | Changeofdirectors |
| ChenRuimou | Director | Leftforexpirationofterm | 9June2022 | Changeofdirectors |
| ZengFacheng | Director | Leftforexpirationofterm | 9June2022 | Changeofdirectors |
| QinGuiling | Director | Leftforexpirationofterm | 9June2022 | Changeofdirectors |
| ZhangHongmei | Director | Leftforexpirationofterm | 9June2022 | Changeofdirectors |
| WangXinyu | Director | Leftforexpirationofterm | 9June2022 | Changeofdirectors |
| PanAiling | Director | Leftforexpirationofterm | 9June2022 | Changeofdirectors |
| XuJianlyu | Director | Elected | 9June2022 | Changeofdirectors |
| ZhengHuisheng | Director | Elected | 9June2022 | Changeofdirectors |
| ZhangZhanqi | Director | Elected | 9June2022 | Changeofdirectors |
| ZhangKeming | Director | Elected | 9June2022 | Changeofdirectors |
| DuLixin | Director | Elected | 9June2022 | Changeofdirectors |
| PengYanli | Director | Elected | 9June2022 | Changeofdirectors |
| QuanYuhua | Director | Elected | 9June2022 | Changeofdirectors |
| ZhangJianxiang | Seniormanagement | Leftforexpirationofterm | 9June2022 | Changeofseniormanagement |
| ZhangWei | Seniormanagement | Leftforexpirationofterm | 9June2022 | Changeofseniormanagement |
| FuGuannan | Seniormanagement | Leftforexpirationofterm | 9June2022 | Changeofseniormanagement |
| LyuWenquan | Seniormanagement | Engaged | 9June2022 | Changeofseniormanagement |
| XuFeng | Seniormanagement | Engaged | 9June2022 | Changeofseniormanagement |
IIIInterimDividendPlan
□Applicable?NotapplicableTheCompanyhasnointerimdividendplan,eitherintheformofcashorstock.
IVEquityIncentivePlans,EmployeeStockOwnershipPlansorOtherIncentiveMeasuresforEmployees?Applicable□Notapplicable
1.EquityIncentive
| No. | Deliberationtime | Relevantmeeting | Overviewofexecution | Disclosureindex |
| 1 | 18February2022 | The30thMeetingofthe9thBoardofDirectors,The18thMeetingofthe9thSupervisoryCommittee | ItdeliberatedandapprovedtheProposalonGrantingtheReservedRestrictedSharesunderthe2021IncentivePlantotheIncentivePersonnelandProposalonRepurchaseandCancelAuthorizedbutUnlockedRestrictedShareoftheIncentivePersonnelnotConformingtotheIncentiveCondition.Theindependentdirectorsconsentedindependentlytorelevantmatters.TheBoardofSupervisorsexpresseditsagreeableverificationopinionsonrelevantmatters. | AnnouncementsofResolution(No.2022-005,2022-006,2022-007,2022-008)publishedonhttp://www.cninfo.coon19February2022andrelevantdocuments |
| 2 | 8March2022 | The1stExtraordinaryGeneralMeetingof2022 | ItdeliberatedandadoptedtheProposalonRepurchaseandCancelAuthorizedbutUnlockedRestrictedShareoftheIncentivePersonnelnotConformingtotheIncentiveCondition. | AnnouncementsofResolution(No.2022-011,2022-012)publishedonhttp://www.cninfo.coon8March2022andrelevantdocuments |
| 3 | 18March2022 | - | AsauditedandconfirmedbyShenzhenStockExchangeandtheShenzhenBranchofChinaSecuritiesDepositoryandClearingCorporationLimited(hereinafterreferredtoas"ChinaClear"),theregistrationofgrantedreservedsharesunderthe2021restrictedshareincentiveschemewascompleted. | AnnouncementofResolution(No.2022-013)publishedonhttp://www.cninfo.coon18March2022andrelevantdocuments |
| 4 | 14May2022 | - | AsauditedandconfirmedbyShenzhenStockExchangeandtheShenzhenBranchofChinaClear,theproceduresofrepurchasingandcanceling240,000sharesofauthorizedandunlockedrestrictedshareoftheincentivepersonnelnotconformingtotheincentiveconditionwerecompleted. | AnnouncementofResolution(No.2022-031)publishedonhttp://www.cninfo.coon14May2022andrelevantdocuments |
| 5 | 24May2022 | The33rdMeetingofthe9thBoardofDirectors,The20thMeetingofthe9thSupervisoryCommittee | ItdeliberatedandapprovedtheProposalontheAchievementofLiftingtheRestrictionConditionsintheFirstRestrictionPeriodfortheFirstGrantofthe2021RestrictedShareIncentiveScheme.TheCompany'sindependentdirectorsconsentedindependentlytotheachievementofliftingtherestrictionconditionsinthefirstrestrictionperiodforthefirstgrantofthe2021restrictedshareincentivescheme,andtothemattersofliftingrestrictionsrelatedtoprocessingrestrictedshares.TheBoardofSupervisorsexpresseditsagreeablereviewopinionsonrelevantmatters. | AnnouncementsofResolution(No.2022-035,2022-036)publishedonhttp://www.cninfo.coon25May2022andrelevantdocuments |
| 6 | 31May2022 | - | ItissuedtheProposalofIndicativeAnnouncementontheTradingontheMarketofLiftingtheRestrictionintheFirstRestrictionPeriodfortheFirstGrantofthe2021RestrictedShareIncentiveScheme. | AnnouncementofResolution(No.2022-041)publishedonhttp://www.cninfo.coon31May2022andrelevantdocuments |
| 7 | 8June2022 | - | 9,578,000restrictedsharesliftedfromrestrictedsalesweretradedonthemarket. | - |
| 8 | 29June2022 | The2ndMeetingofthe10thBoardofDirectors,The2ndMeetingofthe10thSupervisoryCommittee | ItdeliberatedandapprovedtheProposalonRepurchaseandCancelAuthorizedbutUnlockedRestrictedShareoftheIncentivePersonnelnotConformingtotheIncentiveCondition.Inaddition,theCompany'sindependentdirectorsvoicedtheirindependentopinionsontherelevantmatters.TheBoardofSupervisorsexpresseditsreviewopinionsonrelevantmatters. | AnnouncementsofResolution(No.2022-053,2022-054,2022-056)publishedonhttp://www.cninfo.coon30June2022andrelevantdocuments |
2.ImplementationofEmployeeStockOwnershipPlan
□Applicable?Notapplicable
3.OtherIncentiveMeasuresforEmployees
□Applicable?Notapplicable
PartVEnvironmentalandSocialResponsibility
IMajorEnvironmentalIssues
IndicatebytickmarkwhethertheCompanyoranyofitssubsidiariesisaheavilypollutingbusinessidentifiedbytheenvironmentalprotectionauthoritiesofChina.?Yes□No
| Nameofpolluter | Nameofmajorpollutants | Wayofdischarge | Numberofdischargeoutlets | Distributionofdischargeoutlets | Dischargeconcentration | Dischargestandardsimplemented | Totaldischarge | Approvedtotaldischarge | Excessivedischarge |
| LuThaiTextileCo.,Ltd | CODandammonianitrogen | Continuousdischarge | 2 | ChiefdischargeoutletofHuangjiapuIndustrialPark;chiefdischargeoutletofEastZone | COD≤200mg/L;ammonianitrogen≤20mg/L | EmissionstandardofwaterpollutantsintextiledyeingandfinishingindustryGB4287-2012 | COD：225.482t；ammonianitrogen：3.744t | COD:1495.08t；ammonianitrogen:149.51t | No |
| LuFengCompanyLimited | CODandammonianitrogen | Continuousdischarge | 1 | ChiefdischargeoutletofLuFengCompanyLimited | COD≤200mg/L;ammonianitrogen≤20mg/L | EmissionstandardofwaterpollutantsintextiledyeingandfinishingindustryGB4287-2012 | COD：117.054t；ammonianitrogen：2.04t | COD:653.53t；ammonianitrogen:65.3t | No |
| ZiboXinshengThermalPowerCo.,Ltd. | SO2,NQx,andPM | Organizedcontinuousdischarge | 4 | Productionplant | SO2：≤35mg/m3、NQx：≤50mg/m3,PM：≤5mg/m3 | EmissionstandardofairpollutantsofThermalPowerPlantinShandongProvinceDB37/664-2019 | SO2:19.96t,NQx:61.5t,PM:2.192t | SO2:236.13t/a,NQx:674.63t/a,PM:67.47t/a. | No |
| ContinentalTextileCo.,Ltd. | Sewage | Dischargeintotheecologicalpondintheparkdistrictaftertreatment | 1 | Besidesewageplant | COD≤50mg/L;ammonianitrogen≤0.5mg/L | QCVN40：2011/BTNMT | Sewagedischargeis906,100t | / | No |
| ContinentalTextileCo.,Ltd. | Exhaustgas | Directdischargeaftertreatment | 2 | Besideboilerroom | / | QCVN19：2009/BTNMT | Gasemissionis258millionm3 | / | No |
ConstructionofpollutionpreventionequipmentandoperationconditionLuThaiTextileCo.,Ltd.(hereinafterreferredtoas“theCompany”)anditsmajority-ownedsubsidiaryLufengWeaving&DyeingCo.,Ltd.(hereinafterreferredtoas“LufengWeaving&Dyeing”)strictlyimplementthe“ThreeSimultaneous”managementsystemforenvironmentalprotectioninprojectconstructions.Thecompaniesareequippedwithcompletefacilitiesforwastegasandwastewatertreatment.LuThaiTextileCo.,Ltd.anditsmajority-ownedsubsidiaryLufengWeaving&DyeingCo.,Ltd.carriedoutthewastewatertreatmentsystemtransformationprojecttoimprovethetreatedwaterqualitybysystematicandcomprehensivereform,furtherimprovingtheriverwaterqualityandlocalecologicalenvironment.TheCompanyandLufengWeaving&Dyeingcentralizedlycollectedandcopedwiththedyeingandfinishingwastegas,soastogreatlyreducethepollutantemissionconcentration.Onlinesupportingmonitoringfacilitieswerebuilt,whosedatawasuploadedtothegovernmentenvironmentalmonitoringsystem,tocomprehensivelymonitortheCompany'semissionpollutantssuchaswastewaterandwastegas.Supportteamsweresetuptoberesponsiblefordailyoperationmaintenanceandinspectiontoguaranteethenormaloperationoffacilities.Boththeexhaustemissionandwastewaterdischargemeettheemissionstandards.Thewholly-ownedsubsidiaryZiboXinshengThermalPowerCo.,Ltd.(hereinafterreferredtoas“XinshengThermalPower”)enforcesthe“ThreeSimultaneous”managementsystemforenvironmentalprotectioninextensionprojectconstructioninaccordancewiththegovernmentrequirements,andadoptsthe“limestone-gypsummethod”toreduceemissionconcentrationofsulfurdioxide,the“Low-nitrogencombustion+SNCR”and“SNCR+SCRmethod”toreduceemissionconcentrationofnitrogenoxides,andthe“electric-bagelectrostaticprecipitator+wetelectrostaticprecipitator”toreducesootemissionconcentration.Theoverallsystemworkswell.Thewastewatertreatmentprojectofthewholly-ownedsubsidiaryContinentalTextileCo.,Ltd.(hereinafterreferredtoas“ContinentalTextile”),locatedintheKCNPhuocDong,TayNinh,Vietnam,isdesignedtotreat6,500tonsofsewagewaterdaily,amongwhich,sewageplanIisdesignedtotreat3,000tonsofsewagewaterdaily,andthesewageplantIIisdesignedtotreat3,500tonsofsewagewaterdaily.ContinentalTextileadoptsacomprehensivetreatmentprocessof“pre-materialization+A2Obiochemistry+post-materialization+ozoneoxidation+activesandfiltration”forwastewatertreatment,andthetreatedwaterqualityisbetterthantheQCVN40:2011/BTNMTA-levelemissionstandardsstipulatedbytheVietnamgovernment.Thetreatedwastewaterisalldischargedtotheecologicalpondinthepark.Treatedwaterqualityanalysisfor2022:TheCOD(meanvalue)was
47.5mg/L,thechrominance(meanvalue)was20,theammonianitrogen(meanvalue)was0.14mg/L,andthetotalphosphorus(meanvalue)was0.10mg/L.AlltheparametersmettheA-levelemissionstandardssetinthe“RegulationsonParametersofIndustrialDrainageinVietnam”(QCVN40:2011/BTNMT).Wastewaterdischargeinthewholeyearmetthestandardswithoutviolation.ThetotalamountofwastewaterdischargedinH12022was906,100tons,amongwhich,thechemicaloxygendemand(COD)was43.08tons,ammonianitrogen(NH3-N)was0.107tonsandtotalphosphorus(TP)was0.078ton.ContinentalTextileisequippedwithmulti-pipeandwaterfilmdust-separationdevicestoprocesstheexhaustgasdischargedfromboilers.InH12022,alltheequipmentwasinnormaloperation,andtheexhaustgasinspectionparameterswerelowerthantheQCVN19:2009/BTNMTemissionstandardssetbyVietnamgovernment.InH12022,thetotalamountofsulfurdioxideemissionswas44.98tons,andthetotalamountofnitrogenoxidesemissionswas41.38tons.ProjectEnvironmentalImpactAssessmentandOtherAdministrativePermissionforEnvironmentalProtectionInH12022,the“LuThaiTextileCo.,Ltd.IntelligentTechnologyUpgradingProjectof25million-meterHigh-gradeFabricProductionLine”,the“EngineeringTechnologyResearchInstituteProject”,the“TechnologyUpgradingProjectofHigh-endPrintingandDyeingFabricFinishingProductionProcess”andthe“TechnologyUpgradingProjectofRegeneratedFibreProductionLineandColoredSpunYarnProductionLine”hasputintoproduction.The“LufengWeavingandDyeing’sHigh-endPrintingandDyeingFabricProductionLineProject”oftheholdingsubsidiaryLufengWeavingandDyeingCo.,Ltd.hasbeenapproved.
Thewholly-ownedsubsidiaryZiboXinshengThermalPowerCo.,Ltd.obtainedthe“ResponseoftheEnvironmentalImpactReportoftheShandongProvincialDepartmentofEnvironmentalProtectionontheExtensionProjectofZiboXinshengThermalPower”(Luhuanjian[2015]No.241),thephaseIIoftheexpansionprojecthasbeencompletedandbeenputintoproduction.Thewholly-ownedsubsidiaryContinentalTextile’sSpinningPhaseIandDyeingParkPhaseIenvironmentalprotectionprojectshavebeencompletedandacceptedforconfirmation.ThespinningphaseIIandyarndyeingparkPhaseIIenvironmentalassessmentreportshavebeenapproved.EmergencyplanforenvironmentalincidentsInordertopreventenvironmentalpollutionaccidents,theCompanyandtheholdingsubsidiaryLufengWeaving&DyeingrespectivelypreparedtheEmergencyPlanforEnvironmentalIncidents,whichwerefiledwithZiboEnvironmentalProtectionBureauZichuanBranch.ThePlanincludescontentssuchasenvironmentalrisksourcesidentificationandriskassessment,preventionandearlywarningmechanism,emergencysecurity,andsupervisionandmanagement.Thewholly-ownedsubsidiaryZiboXinshengThermalPowerCo.,Ltd.hasformulatedthe“EmergencyPlanforEnvironmentalIncidents”andfileditwiththeecologicalandenvironmentalmanagementdepartment.Theidentificationandriskassessmentofenvironmentalrisksources,preventionandearlywarningmechanisms,emergencyprotectionandsupervisionandmanagementwereincludedintheplan.Thewholly-ownedsubsidiaryContinentalTextileCo.,Ltd.haspreparedemergencyplansfordifferentenvironmentalincidentstoreducetheirimpacts.Environmentalself-monitoringprogramInaccordancewiththerequirementsofthecompetentenvironmentauthorities,theCompanyandtheholdingsubsidiaryLufengWeaving&Dyeingobservedtherequirementsofthesuperiorenvironmentalprotectiondepartmenttoinstallautomaticwastewatermonitoringfacilitiesandachievereal-timemonitoringofwastewaterdischarge.Besides,theautomaticenvironmentmonitoringplanwasprepared.Inaddition,theyinvitedaqualifiedtestinginstitutionquarterlytoconducttestsonsewageandwastegasaccordingtotheself-monitoringplan,dulydisclosedthemonitoringdatatotheShandongPollutionSourceSelf-monitoringSharingSystem,andsubmittedthetestreportstothecompetentenvironmentauthoritiesensuringthemonitoringdataistrueandvalid.Thewholly-ownedsubsidiaryZiboXinshengThermalPowerCo.,Ltd.hasimplementedonlinereal-timemonitoringofenvironmentaldatainaccordancewiththerequirementsofthesuperiorenvironmentalprotectiondepartment,andhasachievedemissionstandards.Thewholly-ownedsubsidiaryContinentalTextileCo.,Ltd.installsautomaticsewagesamplingandwaterqualityautomaticonlinemonitoringdevices,real-timeautomaticsamplingandonlinemonitoringofsewageeffluentwaterquality;whiletheautomaticonlinewastegasmonitoringsystemwasinstalledtomonitorwastegasemissionqualityinreal-time.Thecompanyinvitesexternalqualifiedtestinginstitutionstoconductsewage,sludgeandexhaustgasquarterlyTestandsubmitthetestreporttotheenvironmentalsupervisiondepartment.AdministrativepenaltiesimposedforenvironmentalissuesduringtheReportingPeriod
| Name | Reason | Case | Result | Influenceonproductionandoperation | Rectificationmeasures |
| N/A | N/A | N/A | N/A | N/A | N/A |
OtherenvironmentinformationthatshouldbedisclosedNoMeasurestakentodecreasecarbonemissionintheReportingPeriodandcorrespondingeffects?Applicable□NotapplicableTheannualcoalconsumptionforpowergenerationofthewholly-ownedsubsidiaryXinshengThermalPowerinH12022wasreducedfrom240.6g/kWhin2021to191.4g/kWhthroughoperationmodeadjustment,energyconservationimprovementandunit
efficiencyenhancement.OtherrelatedenvironmentprotectioninformationNoTheCompanyshallabidebyrelevantdisclosurerequirementsoftheSelf-RegulatoryGuidelinesofShenzhenStockExchangeforListedCompaniesNo.3-IndustryInformationDisclosureontextileandgarmentindustry.EnvironmentalprotectionconformitysituationoftheCompanyinthereportperiodTheCompanyanditsmajority-ownedsubsidiaryLufengWeaving&Dyeingstrictlyimplementthe“ThreeSimultaneous”managementsystemforenvironmentalprotectioninprojectconstruction.Thecompaniesareequippedwithcompletefacilitiesforwastegasandwastewatertreatment,wastewateristreatedwithhydrolysisandacidificationtechnique+AOtreatmentprocessandfinallydischargedaccordingtoGB4287-2012theDischargeStandardofWaterPollutantsforDyeingandFinishingofTextileIndustry;theboilerexhaustistreatedwithlownitrogencombustiontechnologyandmeetsDB37/2374-2018theEmissionStandardsofAirPollutantsforBoilersinShandongProvince.Thespray+electrostatictechnologyisadoptedinthewastegastreatment,whichmeetstherequirementinRegionalComprehensiveStandardsfortheDischargeofAirPollutantsDB37/2376-2019andVolatileOrganicEmissionStandardofShandongProvince:Part7-OtherIndustriesDB37/2801.7-2019.Temporarystorageroomofcommonsolidwasteandhazardouswasteisconstructedinaccordancewithenvironmentalprotectionrequirements,andtheCompanysignshazardouswastedisposalcontractswiththirdpartyqualifiedcompanieseveryyeartodisposethehazardouswasteoftheCompanyonbasisofconformity.TheCompanystrictlyobservesenvironmentalprotectionlawsandregulations,anditsprojectshavecompleteformalitiesanditsenvironmentalprotectionfacilitiesareinnormaloperation;inH12022,theenvironmentalprotectiondepartmentsofgovernmentsatvariouslevelscheckedtheCompanymorethan20timesbutnonconformitywasfound.ZiboXinshengThermalPowerutilizesneutralizationbasintoteatacidicandalkaliwastewater,andreducespHvalueto6-9afterprecipitationandneutralization.Thetreatedwastewaterandreverseosmosiswaterareusedasdesulfurizingwater,coalfeedingsystemrinsingwater,roadsprinklingwaterandcoalyardwater.Desulfurizingwastewateristreatedwithflocculationsedimentationpurificationprocessandthedesignoutputofwastewatertreatmentsystemis10m3/h,andthewaterqualityaftertreatmentwillmeettherequirementsofDischargeStandardofWastewaterfromLimestone-gypsumFlueGasDesulfurizationSystemInFossilFuelPowerPlantDL/T997-2006,andalsomeetthewastewaterrecyclingrequirementoftheplant.Thetreatedwastewaterisusedfordampingdrydust.ThestoveashgeneratingfromcoalburningandgypsumgeneratingfromultralowemissioninZiboXinshengThermalPower.aregeneralsolidwaste,theCompanysignsboilerashanddesulfurizedgypsumsupplyanddistributionagreementswithbuildingmaterialfactory,cementfactoryforfullcomprehensiveutilization.IntercontinentalTextileusesthecomprehensivetreatmentprocess“pre-materialization+A2Obiochemistry+post-materialization+ozonetreatment+activatedsandfiltration”totreattheindustrialwastewateroftheCompany,andtherelevantequipmenthasbeenproperlyoperatedfor6.5yearsafterinstallation,andthedischargedwastewatermeetsthelevelAdischargestandardintheTechnicalSpecificationsofVietnamonIndustrialWastewaterDischarge(QCVN40:2011/BTNMT).theboilerexhaustoftheCompanyistreatedwithheatexchangeandtemperaturereduction,dustseparation,spraying,waterfilmdustcollection,absorption,chemicalreactionandetc.Nowtheequipmenthasbeeninstalledandproperlyoperatedfor6.5years.ExhaustdischargemeetsthedischargestandardofVietnam,“StateTechnicalSpecificationsonDischargeofIndustrialInorganicSubstancesandDust”(Circular36/2015/TT-BTNMT).HazardouswasteandindustrialwastewarehousesarebuiltupforseparatedstorageofhazardouswasteandindustrialwasteinaccordancewiththeVietnameseregulations,RegulationsonAdministrationofHazardousWaste(Circular36/2015/TT-BTNMT)andDecisiononAdministrationofWaste(Decree38/2015/N?-CP),andwastetransportationanddisposalcontractsaresignedwithlocalqualifiedtreatmentorganizations,andrelevanttreatmentrecordsofwastearereportedtheenvironmentalprotectionauthorityofVietnamannually.
IISocialResponsibility
Notapplicable
PartVISignificantEvents
ICommitmentsoftheCompany’sDeFactoController,Shareholders,RelatedPartiesandAcquirers,aswellastheCompanyItselfandOtherEntitiesFulfilledintheReportingPeriodorOngoingatthePeriod-End?Applicable□Notapplicable
| Commitment | Promisor | Typeofcommitment | Detailsofcommitment | Dateofcommitmentmaking | Termofcommitment | Fulfillment |
| CommitmentsmadeintimeofIPOorrefinancing | Controllingshareholder,actualcontroller | DilutionofatsightreturnsonpublicofferingA-shareconvertiblecorporatebonds | 1.NotintervenetheCompany’soperationandmanagementbeyondtheauthorityandnotoccupytheCompany’sinterests.2.FromtheissuancedateofthiscommitmenttothecompletionoftheimplementationoftheCompany'spublicofferingofA-shareconvertiblecorporatebonds,iftheCSRCmakesothernewregulatoryprovisionsonremedialmeasuresforreturnsandthecommitment,andtheabovecommitmentfailstomeettherequirementsoftheCSRC,thecompany/IpromisetoissuesupplementarycommitmenttheninaccordancewiththelatestregulationsofCSRC.3.CommitmentismadetofulfilltheCompany'srelevantremedialmeasuresforreturnsandanycommitmentmadehereinbythecompany/me.Ifthecompany/Iviolate(s)suchcommitmentandcause(s)lossestotheCompanyorinvestors,thecompany/IwillbearthecompensationresponsibilitytotheCompanyorinvestorsinaccordancewiththelaw. | 23May2019 | From23May2019to8April2026 | On-going |
| DirectorsandseniormanagementoftheCompany | DilutionofatsightreturnsonpublicofferingA-shareconvertiblecorporatebonds | 1.Commitmentismadenottotransferbenefitstootherunitsorindividualsfreeofchargeorunderunfairconditions,andnootherwaysdamagingtheinterestsoftheCompanywillbetaken.2.IwillstrictlyabidebythebudgetmanagementoftheCompany,andacceptthestrictsupervisionandmanagementoftheCompanytoavoidwasteorexcessiveconsumption.Anyposition-relatedconsumptionbehaviorsofmewilloccurwithinthescopenecessaryfortheperformanceofmyduties.3.CommitmentismadenottousetheCompany'sassetstoengageininvestmentandconsumptionactivitiesunrelatedtotheperformanceofduties.4.CommitmentismadethattheremunerationsystemdevelopedbytheBoardofDirectorsortheRemunerationCommitteeislinkedtotheimplementationoftheCompany'sremedialmeasuresforreturns.5.CommitmentismadethattheconditionsforexercisingtheEquityIncentivePlantobeissuedinthefuturewillbelinkedtotheimplementationoftheCompany'sremedialmeasuresforreturns.6.FromtheissuancedateofthiscommitmenttothecompletionoftheimplementationoftheCompany'spublicofferingofA-shareconvertiblecorporatebonds,iftheCSRCmakesothernewregulatoryprovisionson | 23May2019 | From23May2019to8April2026 | On-going |
| remedialmeasuresforreturnsandthecommitment,andtheabovecommitmentfailstomeettherequirementsoftheCSRC,IpromisetoissuesupplementarycommitmenttheninaccordancewiththelatestregulationsofCSRC.7.CommitmentismadetofulfilltheCompany'srelevantremedialmeasuresforreturnsandanycommitmentmadehereinbyme.IfIviolatesuchcommitmentandcauseslossestotheCompanyorinvestors,IwillbearthecompensationresponsibilitytotheCompanyorinvestorsinaccordancewiththelaw. | |||
| Executedontimeornot | Not | ||
IIOccupationoftheCompany’sCapitalbytheControllingShareholderoranyofItsRelatedPartiesforNon-OperatingPurposes
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
IIIIrregularitiesintheProvisionofGuarantees
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
IVEngagementandDisengagementofIndependentAuditorAretheinterimfinancialstatementsaudited?
□Yes?NoTheinterimfinancialstatementshavenotbeenaudited.
VExplanationsGivenbytheBoardofDirectorsandtheSupervisoryCommitteeRegardingtheIndependentAuditor's“ModifiedOpinion”ontheFinancialStatementsoftheReportingPeriod
□Applicable?Notapplicable
VIExplanationsGivenbytheBoardofDirectorsRegardingtheIndependentAuditor's“ModifiedOpinion”ontheFinancialStatementsofLastYear
□Applicable?Notapplicable
VIIInsolvencyandReorganization
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.VIIILegalMattersSignificantlawsuitsandarbitrations:
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.Otherlegalmatters:
□Applicable?NotapplicableIXPunishmentsandRectifications
□Applicable?NotapplicableXCreditQualityoftheCompanyaswellasitsControllingShareholderandDeFactoController
□Applicable?Notapplicable
XIMajorRelated-PartyTransactions
1.ContinuingRelated-PartyTransactions
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
2.Related-PartyTransactionsRegardingPurchaseorSalesofAssetsorEquityInterests
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
3.Related-PartyTransactionsRegardingJointInvestmentsinThirdParties
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
4.CreditsandLiabilitieswithRelatedParties
□Applicable?Notapplicable
NosuchcasesintheReportingPeriod.
5.TransactionswithRelatedFinanceCompanies
□Applicable?Notapplicable
6.TransactionswithRelatedPartiesbyFinanceCompaniesControlledbytheCompany
□Applicable?Notapplicable
7.OtherMajorRelated-PartyTransactions
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
XIIMajorContractsandExecutionthereof
1.Entrustment,ContractingandLeases
(1)Entrustment
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
(2)Contracting
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
(3)Leases
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
2.MajorGuarantees?Applicable□Notapplicable
Unit:RMB'0,000
| GuaranteesprovidedbytheCompanyastheparentanditssubsidiariesforexternalparties(exclusiveofthoseforsubsidiaries) | ||||||||||
| Obligor | Disclosuredateoftheguaranteelineannounc | Lineofguarantee | Actualoccurrencedate | Actualguaranteeamount | Typeofguarantee | Collateral(ifany) | Counter-guarantee(ifany) | Termofguarantee | Havingexpiredornot | Guaranteeforarelatedpartyornot |
| ement | ||||||||||
| GuaranteesprovidedbytheCompanyforitssubsidiaries | ||||||||||
| Obligor | Disclosuredateoftheguaranteelineannouncement | Lineofguarantee | Actualoccurrencedate | Actualguaranteeamount | Typeofguarantee | Collateral(ifany) | Counter-guarantee(ifany) | Termofguarantee | Havingexpiredornot | Guaranteeforarelatedpartyornot |
| ContinentalTextileCo.,Ltd./LuThai(TanChau)TextileCo.,Ltd. | 17May2021 | 12,617.43 | 17May2021 | 5,936.34 | Joint-liability | N/A | N/A | ThreeyearssincetheapprovaloftheboardoftheCompany | No | Yes |
| ContinentalTextileCo.,Ltd. | 29March2019 | 4,026.84 | 27March2019 | 0 | Joint-liability | N/A | N/A | ThreeyearssincetheapprovaloftheboardoftheCompany | No | Yes |
| ContinentalTextileCo.,Ltd. | 28September2019 | 3,020.13 | 27September2019 | 0 | Joint-liability | N/A | N/A | ThreeyearssincetheapprovaloftheboardoftheCompany | No | Yes |
| LuAnGarmentsCo.,Ltd. | 15January2021 | 3,355.7 | 13January2021 | 0 | Joint-liability | N/A | N/A | TwoyearssincetheapprovaloftheboardoftheCompany | No | Yes |
| ShandongLulianNew | 14December2021 | 4,000 | 13Decemb | 89.3 | Joint- | N/A | N/A | Oneyearsincethe | No | Yes |
| MaterialsCo.,Ltd. | er2021 | liability | approvaloftheboardoftheCompany | |||||||
| TotalapprovedlineforsuchguaranteesintheReportingPeriod(B1) | 0 | TotalactualamountofsuchguaranteesintheReportingPeriod(B2) | 5,936.34 | |||||||
| TotalapprovedlineforsuchguaranteesattheendoftheReportingPeriod(B3) | 22,993.26 | TotalactualbalanceofsuchguaranteesattheendoftheReportingPeriod(B4) | 6,025.64 | |||||||
| Guaranteesprovidedbetweensubsidiaries | ||||||||||
| Obligor | Disclosuredateoftheguaranteelineannouncement | Lineofguarantee | Actualoccurrencedate | Actualguaranteeamount | Typeofguarantee | Collateral(ifany) | Counter-guarantee(ifany) | Termofguarantee | Havingexpiredornot | Guaranteeforarelatedpartyornot |
| Totalguaranteeamount(totalofthethreekindsofguaranteesabove) | ||||||||||
| TotalguaranteelineapprovedintheReportingPeriod(A1+B1+C1) | 0 | TotalactualguaranteeamountintheReportingPeriod(A2+B2+C2) | 5,936.34 | |||||||
| TotalapprovedguaranteelineattheendoftheReportingPeriod(A3+B3+C3) | 22,993.26 | TotalactualguaranteebalanceattheendoftheReportingPeriod(A4+B4+C4) | 6,025.64 | |||||||
| Totalactualguaranteeamount(A4+B4+C4)as%oftheCompany’snetassets | 0.71% | |||||||||
| Ofwhich: | ||||||||||
| Balanceofguaranteesprovidedforshareholders,actualcontrollerandtheirrelatedparties(D) | 0 | |||||||||
| Balanceofdebtguaranteesprovideddirectlyorindirectlyforobligorswithanover70% | 0 | |||||||||
| debt/assetratio(E) | |
| Amountbywhichthetotalguaranteeamountexceeds50%oftheCompany’snetassets(F) | 0 |
| Totalofthethreeamountsabove(D+E+F) | 0 |
| JointresponsibilitiespossiblyborneoralreadyborneintheReportingPeriodforundueguarantees(ifany) | N/A |
| Explanationaboutexternalguaranteeviolatingestablishedprocedure(ifany) | N/A |
Compoundguarantees:
N/ATheCompanyshallabidebyrelevantdisclosurerequirementsoftheSelf-RegulatoryGuidelinesofShenzhenStockExchangeforListedCompaniesNo.3-IndustryInformationDisclosureontextileandgarmentindustry.WhethertheCompanyprovidesguaranteesorfinancialassistancefordealers
□Yes?No
3.CashEntrustedforWealthManagement
?Applicable□Notapplicable
RMB’0,000
| Specifictype | Capitalresources | Amountincurred | UndueBalance | Overdueamount | Overdueamountwithprovisionforimpairment |
| Brokeragefinancialproducts | Raisedfunds | 8,000 | 8,000 | 0 | 0 |
| Other | Self-ownedfunds | 20,000 | 20,000 | 0 | 0 |
| Total | 28,000 | 28,000 | 0 | 0 | |
Particularsofentrustedcashmanagementwithsinglesignificantamountorlowsecurity,badliquidity,andnocapitalpreservation
□Applicable?NotapplicableWhetherthereisthecasewheretheprincipalcannotberecoveredatmaturityorothercasewhichmaycauseimpairmentforentrustedassetmanagement
□Applicable?Notapplicable
4.OtherMajorContracts
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
XIIIOtherSignificantEvents
?Applicable□Notapplicable
1.TheCompany's33rdsessionoftheNinthBoardofDirectors,thesecondextraordinarygeneralmeetingof2022andthefirst
bondholders'meetingonLuThaiconvertiblebondsof2022deliberatedandadoptedtheProposalonChangingthePurposeofPartialRaisedCapitalUnused.Theaimwastoterminatethe"ProductionLineProjectofHigh-gradePrintedandDyedFabrics"ofitsdomesticholdingsubsidiaryLufengCo.,Ltd.andleveragetheoriginallyplannedtobeinvestedraisedcapitalofRMB250millionforthenewlyinvestedVientianeproductionlineprojectofhigh-gradefabrics(PhaseI)ofthewholly-ownedsubsidiaryinVietnam,VientianeTextileCo.,Ltd.Fordetails,seerelevantannouncements(No.:2022-035,2022-036,2022-038,2022-043and2022-044)anddocumentsdisclosedon25Mayand10June2022onwww.cninfo.com.cn.
2.TheCompanyheldthesecondsessionofTenthBoardofDirectorsandthethirdextraordinarygeneralmeetingof2022,whereitdeliberatedandapprovedtheProposalonRepurchaseoftheCompany'sDomesticallyListedForeignShares(BShare).ThecapitalscaleforrepurchaseshallnotexceedRMB100millionandrepurchasepricenomorethanHKD4.80pershare,andtherepurchaseperiodshallnotexceed12monthsfromthedatewhentheCompany'sBoardofDirectorsdeliberatesandadoptsthesharerepurchasescheme.Fordetails,seerelevantannouncements(No.:2022-053,2022-055,2022-063,2022-064and2022-065)anddocumentsdisclosedon30Juneand16July2022onwww.cninfo.com.cn.
XIVSignificantEventsofSubsidiaries
□Applicable?Notapplicable
PartVIIShareChangesandShareholderInformation
IShareChanges
1.ShareChanges
Unit:share
| Before | Increase/decreaseintheReportingPeriod(+/-) | After | |||||||
| Shares | Percentage(%) | Newissues | Sharesasdividendconvertedfromprofit | Sharesasdividendconvertedfromcapitalreserves | Other | Subtotal | Shares | Percentage(%) | |
| I.Restrictedshares | 25,005,237 | 2.83% | 5,838,000 | -9,194,926 | -3,356,926 | 21,648,311 | 2.44% | ||
| 1.SharesheldbyState | |||||||||
| 2.Sharesheldbystate-ownedlegalperson | |||||||||
| 3.Sharesheldbyotherdomesticinvestors | 25,005,237 | 2.83% | 5,838,000 | -9,194,926 | -3,356,926 | 21,648,311 | 2.44% | ||
| Amongwhich:Sharesheldbydomesticlegalperson | |||||||||
| Sharesheldbydomesticnaturalperson | 25,005,237 | 2.83% | 5,838,000 | -9,194,926 | -3,356,926 | 21,648,311 | 2.44% | ||
| 4.Sharesheldby | |||||||||
| otherforeigninvestors | ||||||||
| Amongwhich:Sharesheldbyforeigncorporations | ||||||||
| Sharesheldbyforeignnaturalperson | ||||||||
| II.Unrestrictedshares | 857,336,058 | 97.17% | 8,956,782 | 8,956,782 | 866,292,840 | 97.56% | ||
| 1.RMBordinaryshares | 561,285,342 | 63.61% | 8,987,332 | 8,987,332 | 570,272,674 | 64.22% | ||
| 2.Domesticallylistedforeignshares | 296,050,716 | 33.55% | -30,550 | -30,550 | 296,020,166 | 33.34% | ||
| 3.Overseaslistedforeignshares | ||||||||
| 4.Other | ||||||||
| III.Totalshares | 882,341,295 | 100.00% | 5,838,000 | -238,144 | 5,599,856 | 887,941,151 | 100.00% |
Reasonsforsharechanges:
?Applicable□Notapplicablea)On21March2022,theCompanycompletedtheregistrationofgranting5,838,000reservedsharesunderthe2021restrictedshareincentiveschemeattheShenzhenBranchofChinaClear.b)DuetothefactthattheCompanyhadissuedconvertibleA-sharebondson9April2020,convertiblebondswereconvertedto1,856sharesintheperiodfromthebeginningof2022to30June2022.c)On8June2022,9,578,000sharesofequityincentiverestrictedshareswereliftedfromrestriction.d)240,000sharesofequityincentiverestrictedshareswererepurchasedandcanceled.
e)Duetothegeneralelectionofdirectorsandexecutives,thesharesheldbyformerdirectorsorexecutiveswillbelockedandadjustedinaccordancewithrelevantregulationsontheexecutivesharemanagement.Approvalofsharechanges:
?Applicable□Notapplicablea)Inaccordancewiththeauthorizationofthefirstextraordinarygeneralmeetingof2021,theCompanyconvenedthe30thsessionofNinthBoardofDirectorson18February2022.Inthesession,theProposalonGrantingtheReservedRestrictedSharesunderthe2021IncentivePlantotheIncentivePersonnelwasdeliberatedandapproved.TheCompany'sindependentdirectorspresentedtheirindependentopinionsontheprecedingproposals,believingthatthereservedgrantingconditionshadbeenfulfilled,thequalificationsofincentivepersonnelwerelegitimateandvalid,andthespecifiedgrantdateconformingtorelevantregulations.TheBoardofSupervisorsreviewedthelistofpartialincentivepersonnelreservedforgrantingandconveyeditsverificationopinions.b)On18February2022,theProposalonRepurchaseandCancelAuthorizedbutUnlockedRestrictedShareofPartoftheIncentivePersonnelwasdeliberatedandapprovedatthe30thsessionoftheNinthBoardofDirectorsoftheCompany,as11oftheincentivepersonnelofthe2021restrictedshareincentiveschemeduetoresignationorpositionchanges,whonolongermettheconditionofbeingincentivepersonnel.Therestrictedsharesheldbythe11personnelwithatotalvolumeof240,000shares,whichwereauthorizedbutnotliftedfromrestriction,shallberepurchasedandcanceledbytheCompanyinaccordancewiththe2021RestrictedShareIncentiveSchemeandrelevantprovisionsoflawsandregulations.TheaforesaidmattersweredeliberatedandapprovedatthefirstextraordinarygeneralmeetingoftheCompanyin2022thatwasheldon7March2022.c)On24May2022,theCompanyheldthe33rdsessionoftheNinthBoardofDirectorsandthe20thsessionoftheNinthBoardofSupervisors,andreviewedandapprovedtheProposalontheAchievementofLiftingtheRestrictionConditionsintheFirstLiftingRestrictionPeriodfortheFirstGrantunderthe2021RestrictedShareIncentiveScheme.Also,theCompanyagreedtoprocesstheliftingrestrictionmattersof9,578,000restrictedsharesheldby733incentivepersonnelwhofulfilledtherestrictionconditionsinthefirstliftingrestrictionperiodforthefirstgrantunderthe2021restrictedshareincentivescheme.Transferofshareownership:
?Applicable□NotapplicableInaccordancewiththeAdministrativeMeasuresforEquityIncentiveofListedCompaniesoftheCSRC,ShenzhenStockExchangeandprovisionsofrelevantrulesofShenzhenBranchofChinaClear,theregistrationofgrantedreservedsharesunderthe2021restrictedshareincentiveschemewascompletedon18March2022.TheCompanycompletedtheproceduresofrepurchasingandcanceling240,000sharesofrestrictedshareattheShenzhenBranchofChinaClearon14May2022.Progressonanysharerepurchases:
?Applicable□NotapplicableOn29June2022,theCompanyconveneditssecondsessionofTenthBoardofDirectorswheretheProposalonRepurchaseoftheCompany'sDomesticallyListedForeignShares(BShare)wasdeliberatedandapproved.Additionally,theAnnouncementonResolutionoftheSecondSessionofTenthBoardofDirectorsofLuThaiTextileCo.,Ltd.andtheAnnouncementonRepurchaseoftheDomesticallyListedForeignShares(BShare)ofLuThaiTextileCo.,Ltd.Fordetails,seerelevantannouncements(No.:
2022-053and2022-055)on30June2022onwww.cninfo.com.cn.Progressonreducingtherepurchasedsharesbymeansofcentralizedbidding:
□Applicable?NotapplicableEffectsofsharechangesonthebasicanddilutedearningspershare,equitypershareattributabletotheCompany’sordinaryshareholdersandotherfinancialindicatorsoftheprioryearandtheprioraccountingperiod,respectively:
?Applicable□NotapplicableSeerelevantcontentsof"IVKeyFinancialInformation"under"PartIICorporateInformationandKeyFinancialInformation".OtherinformationthattheCompanyconsidersnecessaryorisrequiredbythesecuritiesregulatortobedisclosed:
□Applicable?Notapplicable
2.ChangesinRestrictedShares?Applicable□Notapplicable
Unit:share
| Nameoftheshareholders | Restrictedsharesamountattheperiod-begin | Restrictedsharesrelievedoftheperiod | Restrictedsharesincreasedoftheperiod | Restrictedsharesamountattheperiod-end | Restrictedreasons | Restrictedsharesrelieveddate |
| LiuZibin | 111,217 | 111,217 | Lockedpublicsharesheldbyseniormanagement | TheCompanyshallimplementtheprovisionsonrestrictedsalebydirectors,supervisorsandseniormanagementwithintenure,andliftthelock-upinbatchesaccordingtotheshareincentivescheme | ||
| WangFangshui | 110,065 | 110,065 | Lockedpublicsharesheldbyseniormanagement | TheCompanyshallimplementtheprovisionsonrestrictedsalebydirectors,supervisorsandseniormanagement | ||
| QinGuiling | 94,906 | 31,636 | 126,542 | Lockedpublicsharesheldbyseniormanagement | TheCompanyshallimplementtheprovisionsonrestrictedsalebydirectors,supervisorsandseniormanagement | |
| ZhangHongmei | 369,375 | 120,000 | 143,125 | 392,500 | LockedpublicsharesheldbyseniormanagementandRestrictedsharesfromequityincentive | TheCompanyshallimplementtheprovisionsonrestrictedsalebydirectors,supervisorsandseniormanagement,andliftthelock-upinbatchesaccordingtotheshareincentivescheme |
| WangJiabin | 362,775 | 120,000 | 45,000 | 287,775 | LockedpublicsharesheldbyseniormanagementandRestrictedsharesfromequityincentive | TheCompanyshallimplementtheprovisionsonrestrictedsalebydirectors,supervisorsandseniormanagementwithintenure,andliftthelock-upinbatchesaccordingtotheshareincentivescheme |
| YuShouzheng | 262,325 | 80,000 | 130,000 | 312,325 | LockedpublicsharesheldbyseniormanagementandRestrictedsharesfromequityincentive | TheCompanyshallimplementtheprovisionsonrestrictedsalebydirectors,supervisorsandseniormanagementwithintenure,andliftthelock-upinbatchesaccordingtotheshareincentivescheme |
| ZhangZhanqi | 360,225 | 120,000 | 245,000 | 485,225 | LockedpublicsharesheldbyseniormanagementandRestrictedsharesfromequityincentive | TheCompanyshallimplementtheprovisionsonrestrictedsalebydirectors,supervisorsandseniormanagementwithintenure,andliftthelock-upinbatchesaccordingtotheshareincentivescheme |
| ZhangKeming | 258,275 | 80,000 | 130,000 | 308,275 | LockedpublicsharesheldbyseniormanagementandRestrictedsharesfromequityincentive | TheCompanyshallimplementtheprovisionsonrestrictedsalebydirectors,supervisorsandseniormanagementwithintenure,andliftthelock-upinbatchesaccordingtotheshareincentivescheme |
| ZhangShougang | 54,825 | 54,825 | Lockedpublicsharesheldbyseniormanagement | TheCompanyshallimplementtheprovisionsonrestrictedsalebydirectors,supervisorsandseniormanagementwithintenure,andliftthelock-upinbatchesaccordingtotheshareincentivescheme | ||
| ZhangJianxiang | 39,112 | 13,038 | 52,150 | Lockedpublicsharesheldbyseniormanagement | TheCompanyshallimplementtheprovisionsonrestrictedsalebydirectors,supervisorsandseniormanagement | |
| LyuYongchen | 19,012 | 4,725 | 14,287 | Lockedpublicsharesheldbyseniormanagement | TheCompanyshallimplementtheprovisionsonrestrictedsalebydirectors,supervisorsandseniormanagement | |
| ShangChenggang | 222,500 | 80,000 | 130,000 | 272,500 | LockedpublicsharesheldbyseniormanagementandRestrictedsharesfromequityincentive | TheCompanyshallimplementtheprovisionsonrestrictedsalebydirectors,supervisorsandseniormanagementwithintenure,andliftthelock-upinbatchesaccordingtotheshareincentivescheme |
| WangChangzhao | 16,875 | 16,875 | Lockedpublicsharesheldbyseniormanagement | TheCompanyshallimplementtheprovisionsonrestrictedsalebydirectors,supervisorsandseniormanagement | ||
| LiWenji | 207,500 | 80,000 | 130,000 | 257,500 | Lockedpublicsharesheldbyseniormanagementand | TheCompanyshallimplementtheprovisionsonrestrictedsalebydirectors,supervisorsandseniormanagementwithintenure,andliftthelock-upinbatchesaccordingtotheshareincentivescheme |
| Restrictedsharesfromequityincentive | ||||||
| LiuZilong | 7,500 | 7,500 | Lockedpublicsharesheldbyseniormanagement | TheCompanyshallimplementtheprovisionsonrestrictedsalebydirectors,supervisorsandseniormanagementwithintenure,andliftthelock-upinbatchesaccordingtotheshareincentivescheme | ||
| DongShibing | 3,750 | 3,750 | Lockedpublicsharesheldbyseniormanagement | TheCompanyshallimplementtheprovisionsonrestrictedsalebydirectors,supervisorsandseniormanagementwithintenure,andliftthelock-upinbatchesaccordingtotheshareincentivescheme | ||
| DuLixin | 200,000 | 80,000 | 130,000 | 250,000 | LockedpublicsharesheldbyseniormanagementandRestrictedsharesfromequityincentive | TheCompanyshallimplementtheprovisionsonrestrictedsalebydirectors,supervisorsandseniormanagementwithintenure,andliftthelock-upinbatchesaccordingtotheshareincentivescheme |
| ZhangWei | 200,000 | 80,000 | 80,000 | 200,000 | LockedpublicsharesheldbyseniormanagementandRestrictedsharesfromequityincentive | TheCompanyshallimplementtheprovisionsonrestrictedsalebydirectors,supervisorsandseniormanagement,andliftthelock-upinbatchesaccordingtotheshareincentivescheme |
| FuGuannan | 200,000 | 80,000 | 80,000 | 200,000 | LockedpublicsharesheldbyseniormanagementandRestrictedsharesfromequityincentive | TheCompanyshallimplementtheprovisionsonrestrictedsalebydirectors,supervisorsandseniormanagement,andliftthelock-upinbatchesaccordingtotheshareincentivescheme |
| GuoHeng | 200,000 | 80,000 | 130,000 | 250,000 | LockedpublicsharesheldbyseniormanagementandRestrictedsharesfromequityincentive | TheCompanyshallimplementtheprovisionsonrestrictedsalebydirectors,supervisorsandseniormanagementwithintenure,andliftthelock-upinbatchesaccordingtotheshareincentivescheme |
| LyuWenquan | 150,000 | 60,000 | 60,000 | 150,000 | LockedpublicsharesheldbyseniormanagementandRestrictedsharesfromequityincentive | TheCompanyshallimplementtheprovisionsonrestrictedsalebydirectors,supervisorsandseniormanagementwithintenure,andliftthelock-upinbatchesaccordingtotheshareincentivescheme |
| XuFeng | 150,000 | 60,000 | 100,000 | 190,000 | Restrictedsharesfromequityincentive | TheCompanyshallimplementtheprovisionsonrestrictedsalebydirectors,supervisorsandseniormanagementwithintenure,andliftthelock-upinbatchesaccordingtotheshareincentivescheme |
| Othersubjectsofrestrictedshareincentiveschemein2021 | 21,405,000 | 8,458,000 | 4,648,000 | 17,595,000 | Restrictedsharesfromequityincentive | Liftthelock-upinbatchesaccordingtotheshareincentivescheme |
| Total | 25,005,237 | 9,582,725 | 6,225,799 | 21,648,311 | -- | -- |
II.IssuanceandListingofSecurities
?Applicable□Notapplicable
| NameofStockandderivativesecuritiesthereof | Issuedate | issueprice(interest) | Issueamount | Listingdate | Approvedamountforlisting | Terminationdatefortrading | Disclosureindex | Disclosuredate |
| Stock | ||||||||
| LTTC | 22March2022 | 3.56 | 5,838,000 | 22March2022 | 5,838,000 | Refertotheannouncement(No.:2022-013)disclosedonhttp://www.cninfo.com.cn/on18March2022. | 18March2022 | |
| Convertiblecorporatebonds,convertiblecorporatebondsseparatelytradedandcorporatebonds | ||||||||
| Otherderivativesecurities | ||||||||
Notes:
Inaccordancewiththeauthorizationofthefirstextraordinarygeneralmeetingof2021,theCompanyconvenedthe30thsessionofNinthBoardofDirectorson18February2022.Inthesession,theProposalonGrantingtheReservedRestrictedSharesunderthe2021IncentivePlantotheIncentivePersonnelwasdeliberatedandapproved.Furthermore,inlinewiththeAdministrativeMeasuresforEquityIncentiveofListedCompaniesoftheCSRC,ShenzhenStockExchangeandprovisionsofrelevantrulesofShenzhenBranchofChinaClear,theregistrationofgranting5,838,000sharesofrestrictedshareto343incentivepersonnelwascompleted.Fordetails,seerelevantannouncementsdisclosedonSecuritiesTimes,ShanghaiSecuritiesNews,ChinaSecuritiesJournal,TaKungPao(HK)andwww.cninfo.com.cn.
IIITotalNumberofShareholdersandTheirShareholdings
Unit:share
| Totalnumberofordinaryshareholdersattheperiod-end | 55,443 | Totalnumberofpreferenceshareholderswithresumedvotingrightsattheperiod-end(ifany)(seeNote8) | 0 | |||||
| 5%orgreaterordinaryshareholdersorthetop10ordinaryshareholders | ||||||||
| Nameofshareholder | Natureofshareholder | Shareholdingpercentage(%) | Totalsharesheldattheperiod-end | Increase/decreaseduringtheReportingPeriod | Numberofrestrictedsharesheld | Numberofnon-restrictedsharesheld | Pledged,markedorfrozenshares | |
| Status | Number | |||||||
| ZiboLuchengTextileInvestmentCo.,Ltd. | Domesticnon-state-ownedlegalperson | 15.81% | 140,353,583 | 140,353,583 | ||||
| Tailun(Thailand)TextileCo.,Ltd. | Foreignlegalperson | 13.32% | 118,232,400 | 118,232,400 | ||||
| CentralHuijinAssetsManagementCo.,Ltd. | State-ownedlegalperson | 2.24% | 19,884,100 | 19,884,100 | ||||
| NationalSocialSecurityFundPortfolio413 | Domesticnon-state-ownedlegalperson | 1.27% | 11,250,051 | 1,440,000 | 11,250,051 | |||
| BasicEndowmentInsuranceFundPortfolio1002 | Domesticnon-state-ownedlegalperson | 0.70% | 6,175,600 | 6,175,600 | 6,175,600 | |||
| DachengChinaSecuritiesAssetManagementPlan | Other | 0.59% | 5,235,900 | 5,235,900 | ||||
| GFChinaSecuritiesAssetManagementPlan | Other | 0.59% | 5,235,900 | 5,235,900 | ||||
| ICBCCreditSuisseInnovationPowerStockTypeSecuritiesInvestment | Other | 0.56% | 4,950,000 | 1,350,000 | 4,950,000 | |||
| Fund | ||||||||
| FEDERATEDHERMESGLOBALINVESTMENTFD(CAYMAN)MASTER,SPCOBOAFTAOFEDERATEDHERMESEMGASIAEQUITYFDMASTERS.P. | Foreignlegalperson | 0.52% | 4,623,374 | 395,587 | 4,623,374 | |||
| HarvestChinaSecuritiesAssetManagementPlan | Other | 0.50% | 4,460,200 | -775,700 | 4,460,200 | |||
| Strategicinvestorsorgeneralcorporationsbecomingtop-tenshareholdersduetoplacingofnewshares(ifany)(seeNote3) | Naught | |||||||
| Relatedoracting-in-concertpartiesamongtheshareholdersabove | ZiboLuchengTextileInvestmentCo.,Ltd.isthelargestshareholderoftheCompanyandtheactualcontroller.Tailun(Thailand)TextileCo.,Ltd.isthesecondlargestshareholderaswellassponsorofforeigncapitaloftheCompany.AllofothershareholdersarepeopleholdingpublicAshareorpublicBshareandtheCompanyisnotabletoconfirmwhetherthereisassociatedrelationshiporconcertedactionamongothershareholders. | |||||||
| Explainifanyoftheshareholdersabovewasinvolvedinentrusting/beingentrustedwithvotingrightsorwaivingvotingrights | Naught | |||||||
| Specialaccountforsharerepurchases(ifany)amongthetop10shareholders(seenote11) | Naught | |||||||
| Shareholdingsofthetoptennon-restrictedordinaryshareholders | ||||||||
| Nameofshareholder | Numberofnon-restrictedsharesheldattheperiod-end | Typeofshares | ||||||
| Type | Shares | |||||||
| ZiboLuchengTextileInvestmentCo.,Ltd. | 140,353,583 | RMBordinary | 140,353,583 | |||||
| share | |||
| Tailun(Thailand)TextileCo.,Ltd. | 118,232,400 | Domesticallylistedforeignshares | 118,232,400 |
| CentralHuijinAssetsManagementCo.,Ltd. | 19,884,100 | RMBordinaryshare | 19,884,100 |
| NationalSocialSecurityFundPortfolio413 | 11,250,051 | RMBordinaryshare | 11,250,051 |
| BasicEndowmentInsuranceFundPortfolio1002 | 6,175,600 | RMBordinaryshare | 6,175,600 |
| DachengChinaSecuritiesAssetManagementPlan | 5,235,900 | RMBordinaryshare | 5,235,900 |
| GFChinaSecuritiesAssetManagementPlan | 5,235,900 | RMBordinaryshare | 5,235,900 |
| ICBCCreditSuisseInnovationPowerStockTypeSecuritiesInvestmentFund | 4,950,000 | RMBordinaryshare | 4,950,000 |
| FEDERATEDHERMESGLOBALINVESTMENTFD(CAYMAN)MASTER,SPCOBOAFTAOFEDERATEDHERMESEMGASIAEQUITYFDMASTERS.P. | 4,623,374 | Domesticallylistedforeignshares | 4,623,374 |
| HarvestChinaSecuritiesAssetManagementPlan | 4,460,200 | RMBordinaryshare | 4,460,200 |
| Explanationonconnectedrelationshipamongthetoptenshareholdersoftradablesharenotsubjecttotradingmoratorium,aswellasamongthetoptenshareholdersoftradablesharenotsubjecttotradingmoratoriumandtoptenshareholders,orexplanationonacting-in-concert | ZiboLuchengTextileInvestmentCo.,Ltd.isthelargestshareholderandtheactualcontrolleroftheCompany.Tailun(Thailand)TextileCo.,Ltd.isthesecondlargestshareholderandtheforeignsponsoroftheCompany.AlltheothershareholdersareholdingtradableA-sharesorB-shares.Anditisunknownwhetherthereisanyrelatedpartyoracting-in-concertpartyamongthem. | ||
| Particularaboutshareholderparticipateinthesecuritieslendingandborrowingbusiness(ifany)(note4) | Naught | ||
Indicatebytickmarkwhetheranyofthetop10ordinaryshareholdersorthetop10unrestrictedordinaryshareholdersoftheCompanyconductedanypromissoryrepoduringtheReportingPeriod.
□Yes?NoNosuchcasesintheReportingPeriod.
IVChangeinShareholdingsofDirectors,SupervisorsandSeniorManagement?Applicable□Notapplicable
| Name | Officetitle | Incumbent/former | Beginningshareholding(share) | IncreaseintheCurrentPeriod(share) | DecreaseintheCurrentPeriod(share) | Endingshareholding(share) | Numberofgrantedrestrictedsharesattheperiod-begin(share) | NumberofrestrictedsharesgrantedintheCurrentPeriod(share) | Numberofgrantedrestrictedsharesattheperiod-end(share) |
| LiuZibin | ChairmanandPresident | Incumbent | 148,290 | 148,290 | |||||
| XuZhinan | ViceChairman | Incumbent | |||||||
| XuJianlyu | Director | Incumbent | |||||||
| ZhengHuisheng | Director | Incumbent | |||||||
| LiuDeming | Director,ViceControllerofGlobalMarketingDepartment | Incumbent | |||||||
| ZhangZhanqi | Director,Vicepresident,ControllerofGlobalMarketingDepartment | Incumbent | 380,300 | 580,300 | 300,000 | 200,000 | 500,000 | ||
| ZhangKeming | Director,BoardSecretary,ChiefAccountant,ControllerofFinancialManagement | Incumbent | 277,700 | 377,700 | 200,000 | 100,000 | 300,000 |
| Department | |||||||||
| DuLixin | Director,ChiefEngineer,ExecutiveDeanofLuThaiEngineeringTechnologyResearchInstitute | Incumbent | 200,000 | 300,000 | 200,000 | 100,000 | 300,000 | ||
| ZhouZhiji | IndependentDirector | Incumbent | |||||||
| QuDongmei | IndependentDirector | Incumbent | |||||||
| PengYanli | IndependentDirector | Incumbent | |||||||
| QuanYuhua | IndependentDirector | Incumbent | |||||||
| ZhangShougang | ChairmanoftheSupervisoryCommittee | Incumbent | 73,100 | 73,100 | |||||
| LiuZilong | Supervisor | Incumbent | 10,000 | 10,000 | |||||
| DongShibing | Supervisor,ManagerofLogisticsManagementDepartment | Incumbent | 5,000 | 5,000 | |||||
| WangJiabin | SecurityController,ChairmanofLaborUnion | Incumbent | 383,700 | 20,000 | 363,700 | 300,000 | 300,000 | ||
| ShangChenggang | PresidentAssistant,ControllerofGarmentProductLine | Incumbent | 230,000 | 330,000 | 200,000 | 100,000 | 300,000 |
| YuShouzheng | PresidentAssistant,ControllerofEnergyandEnvironmentProtectionDepartment | Incumbent | 283,100 | 383,100 | 200,000 | 100,000 | 300,000 | |
| FujiwaraMatsuzaka | GMofJapanOffice | Incumbent | ||||||
| LiWenji | ControllerofBusinessManagementDepartment | Incumbent | 210,000 | 310,000 | 200,000 | 100,000 | 300,000 | |
| GuoHeng | ControllerofFunctionalFabricProductLine | Incumbent | 200,000 | 300,000 | 200,000 | 100,000 | 300,000 | |
| LyuWenquan | ViceControllerofYarnDyedFabricProductLine,ManagerofYarnDyedProductionManagementDepartment | Incumbent | 150,000 | 200,000 | 150,000 | 50,000 | 200,000 | |
| XuFeng | ViceControllerofYarnDyedFabricProductLine | Incumbent | 150,000 | 250,000 | 150,000 | 100,000 | 250,000 | |
| FujiwaraHidetoshi | Director | Appointed | ||||||
| ChenRuimou | Director | Appointed | ||||||
| ZengFacheng | Director | Appointed | ||||||
| QinGuiling | Director | Appointed | 126,542 | 126,542 | ||||
| ZhangHongmei | DirectorandChiefAccountant | Appointed | 392,500 | 392,500 | 300,000 | 300,000 | ||
| PanAiling | IndependentDirector | Appointed | ||||||
| Wang | Independent | Appointed |
| Xinyu | Director | ||||||||
| ZhangJianxiang | Otherseniormanagement | Appointed | 52,150 | 52,150 | |||||
| ZhangWei | Otherseniormanagement | Appointed | 200,000 | 200,000 | 200,000 | 200,000 | |||
| FuGuannan | Otherseniormanagement | Appointed | 200,000 | 200,000 | 200,000 | 200,000 | |||
| Total | -- | -- | 3,672,382 | 0 | 20,000 | 4,602,382 | 2,800,000 | 950,000 | 3,750,000 |
VChangeoftheControllingShareholderortheDeFactoController
ChangeofthecontrollingshareholderintheReportingPeriod
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.ChangeofthedefactocontrollerintheReportingPeriod
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
PartVIIIPreferenceShares
□Applicable?NotapplicableNopreferencesharesintheReportingPeriod.
PartIXBonds
?Applicable□NotapplicableIEnterpriseBonds
□Applicable?NotapplicableNoenterprisebondsintheReportingPeriod.
IICorporateBonds
□Applicable?NotapplicableNocorporatebondsintheReportingPeriod.
IIIDebtFinancingInstrumentsofNon-financialEnterprises
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.IVConvertibleCorporateBonds
?Applicable□Notapplicable
1.PreviousAdjustmentsandCorrectionofConversionPriceOn9April2020,theCompanypubliclyissued14millionA-shareconvertiblecorporatebonds(shortname:LuThaiConvertibleBonds,bondcode:127016)onShenzhenStockExchangewithanissuepriceofRMB100pershareandashareconversionpriceofRMB9.01pershare.ThebondswerelistedonShenzhenStockExchangeon13May2020.Inaccordancewithrelatedtermsofthe“ProspectusforthePublicOfferingofA-ShareConvertibleCorporateBondsofLuThaiTextileCo.,Ltd.”,aswellastheregulationsofChinaSecuritiesRegulatoryCommissiononthepublicofferingofconvertiblecorporatebonds,iftheCompanyhasanydistributionofsharedividends,conversionintosharecapital,additionalissueofnewshares(excludingsharecapitalincreaseduetoconversionintosharesfromtheconvertiblecorporatebondsissuedthistime),shareallotmentanddistributionofcashdividendsaftertheissueof“LuThaiConvertibleBonds”,adjustmentshallbemadetotheshareconversionprice.On21May2020,theCompanyheldtheAnnualGeneralMeetingof2019,wherethe“ProposalontheCompany’sProfitDistributionPlanfor2019”wasconsideredandapproved.AccordingtotheProposal,acashamountofRMB1.00(inclusiveoftax)wouldbedistributedtoevery10shares,withthe858,121,541sharesofsharecapitalon31December2019asthebase.TheshareregistrationdatefortheCompany’sequitydistributionof2019was8July2020andtheex-rightsandex-dividenddatewas9July2020.Therefore,theshareconversionpriceof“LuThaiConvertibleBonds”wasadjustedfromRMB9.01persharetoRMB8.91pershare,andthenewpriceaftertheadjustmenttookeffectonandasof9July2020(theex-rightsandex-dividenddate).
On3June2021,theCompanycompletedtheregistrationoffirst-grantedrestrictedstocksofrestrictedshareincentiveschemeattheShenzhenBranchofChinaSecuritiesDepositoryandClearingCorporationLimited(ChinaClear).7June2021isdesignatedasthelistingdateoffirst-grantedrestrictedstocksoftheCompanyin2021.TheCompanygrants750subjectsofincentive24,285,000restrictedsharesatapriceofRMB3.31pershare,accountingfor2.83%oftotalsharecapitaloftheCompany.ThesourceofthestockisRMBA-shareordinarysharesissuedbytheCompanytosubjectsofincentive.Therefore,theconversionpriceofLuThaiConvertibleBondwillbeadjustedfromRMB8.91persharetoRMB8.76pershare,withtheadjustedconversionpricecomingintoforcefrom7June2021.The2020annualgeneralmeetingconvenedon20April2021deliberatedonandadoptedtheCompany'sProposalonProfitAppropriationPlanin2020,whichdistributescashofRMB0.50per10shares(includingtax)withtotalsharecapitalattherecorddateofthisdistributionschemeasbase.TherecorddateoftheCompany'sinterestdistributionin2020isseton17June2021.Theex-dateisseton18June2021.Therefore,theconversionpriceofLuThaiConvertibleBondwillbeadjustedfromRMB8.76persharetoRMB8.71pershare,withtheadjustedconversionpricecomingintoforcefrom18June2021(theex-date).On22March2022,theCompanycompletedtheregistrationofgrantingreservedsharesunderthe2021restrictedshareincentiveschemeattheShenzhenBranchofChinaClear.22March2022wasdesignatedasthelistingdateforgrantingreservedrestrictedsharesoftheCompany.TheCompanygranted343incentivepersonnel5,838,000restrictedsharesatapriceofRMB3.56pershare,accountingfor0.66%oftotalsharecapitaloftheCompany.ThesourceofthestockisRMBA-shareordinarysharesissuedbytheCompanytoincentivepersonnel.Therefore,theconversionpriceofLuThaiconvertiblebondwillbeadjustedfromRMB8.71persharetoRMB8.68pershare,withtheadjustedconversionpricecomingintoforcefrom22March2022.The2021annualgeneralmeetingconvenedon20May2022deliberatedandadoptedtheCompany'sProposalonProfitAppropriationPlanin2021,whichdistributescashofRMB0.70pertenshares(includingtax)withtotalsharecapitalattherecorddateofthisdistributionschemeasbase.TherecorddateoftheCompany'sinterestdistributionin2021wasseton22June2022.Theex-datewasseton23June2022.Therefore,theconversionpriceofLuThaiconvertiblebondwillbeadjustedfromRMB8.68persharetoRMB8.61pershare,withtheadjustedconversionpricecomingintoforcefrom23June2022.
2.AccumulativeConversion
?Applicable□Notapplicable
| Abbreviation | Startdate | Totalcirculation(piece) | Totalamount | Accumulativeamountconverted(RMB) | Accumulativesharesconverted(share) | Convertedsharesas%oftotalsharesissuedbytheCompanybeforethe | Unconvertedamount(RMB) | Unconvertedamountas%oftotalamount |
| startdateofconversion | ||||||||
| LuThaiConvertibleBonds | 15October2020 | 14,000,000 | 1,400,000,000.00 | 147,600.00 | 16,610 | 0.00% | 1,399,852,400.00 | 99.99% |
3.Top10ConvertibleBondHolders
Unit:share
| No. | Nameofholders | Natureofholders | Numberofconvertiblebondsheldattheperiod-end(share) | Amountofconvertiblebondsheldattheperiod-end(RMB) | As%ofconvertiblebondsheldattheperiod-end |
| 1 | FuguoFuminFixedBenefitPensionProduct-ChinaConstructionBank | Other | 674,439 | 67,443,900.00 | 4.82% |
| 2 | IndustrialandCommercialBankofChina-ChinaUniversalConvertibleBondSecuritiesInvestmentFund | Other | 592,475 | 59,247,500.00 | 4.23% |
| 3 | ChinaConstructionBank-EFundEnhancedReturnBondSecuritiesInvestmentFund | Other | 455,992 | 45,599,200.00 | 3.26% |
| 4 | AgriculturalBankofChina-EssenceTargetIncomeBondSecuritiesInvestmentFund | Other | 345,399 | 34,539,900.00 | 2.47% |
| 5 | ICBCCreditSuisseRuixiFixedBenefitPensionProduct-BankofChina | Other | 344,824 | 34,482,400.00 | 2.46% |
| 6 | NationalSocialSecurityFundPortfolio1005 | Other | 340,000 | 34,000,000.00 | 2.43% |
| 7 | GuosenSecuritiesCo.,Ltd. | State-ownedlegalperson | 284,035 | 28,403,500.00 | 2.03% |
| 8 | GenertecInvestmentManagementCo.,Ltd. | State-ownedlegalperson | 273,581 | 27,358,100.00 | 1.95% |
| 9 | ChinaConstructionBank-XinhuaZengyiBondSecuritiesInvestmentFund | Other | 251,728 | 25,172,800.00 | 1.80% |
| 10 | CorporateAnnuitySchemeofPetroChinaGroupCo.,Ltd.-IndustrialandCommercialBankofChina | Other | 235,673 | 23,567,300.00 | 1.68% |
4.SignificantChangesinProfitability,AssetsConditionandCreditStatusofGuarantors
□Applicable?Notapplicable
5.TheCompany’sLiabilities,CreditChangesatthePeriod-endandCashArrangementstoRepayDebtsinFutureYearsFortherelevantindicators,pleaserefertothePartIXBonds-VIIITheMajorAccountingDataandtheFinancialIndicatorsoftheRecent2YearsoftheCompanyupthePeriod-end.ThecreditratingoftheCompany'sconvertiblebondsforthereportingperiodisAA+,whichhasnotchangedcomparedwiththatofthesameperiodoflastyear.VLossesofScopeofConsolidatedFinancialStatementsduringtheReportingPeriodExceeding10%ofNetAssetsupthePeriod-endofLastYear
□Applicable?Notapplicable
VITheMajorAccountingDataandtheFinancialIndicatorsoftheRecent2YearsoftheCompanyupthePeriod-end
Unit:RMB’0,000
| Item | 30June2022 | 31December2021 | Increase/decrease |
| Currentratio | 2.78 | 2.62 | 6.11% |
| Debt/assetratio | 34.38% | 35.57% | -1.19% |
| Quickratio | 1.56 | 1.49 | 4.70% |
| H12022 | H12021 | YoYincrease/decrease | |
| Netprofitbeforeexceptionalgainsandlosses | 36,557.92 | 5,428.15 | 573.49% |
| EBITDA/debtratio | 21.76% | 14.06% | 7.70% |
| Interestcover(times) | 9.19 | 4.96 | 85.28% |
| Cash-to-interestcover(times) | 2.68 | 5.15 | -47.96% |
| EBITDA-to-interestcover(times) | 13.54 | 10.95 | 23.65% |
| Loanrepaymentratio | 100.00% | 100.00% | 0.00% |
| Interestpaymentratio | 100.00% | 100.00% | 0.00% |
PartXFinancialStatements
IIndependentAuditor’sReportAretheseinterimfinancialstatementsauditedbyanindependentauditor?
□Yes?NoTheyareunauditedbysuchanauditor.
IIFinancialStatements
Currencyunitforthefinancialstatementsandthenotesthereto:RMB
1.ConsolidatedBalanceSheet
PreparedbyLuThaiTextileCo.,Ltd.
30June2022
Unit:RMB
| Item | 30June2022 | 1January2022 |
| Currentassets: | ||
| Monetaryassets | 1,925,789,127.57 | 1,999,712,889.35 |
| Held-for-tradingfinancialassets | 288,418,520.36 | 1,727,000.00 |
| Derivativefinancialassets | ||
| Notesreceivable | 227,397,243.31 | 227,740,247.89 |
| Accountsreceivable | 667,240,987.64 | 647,277,198.51 |
| Accountsreceivablefinancing | 40,325,536.36 | 34,663,071.88 |
| Prepayments | 82,325,516.31 | 54,545,954.20 |
| Otherreceivables | 49,115,558.70 | 74,191,613.22 |
| Including:Interestreceivable | ||
| Dividendsreceivable | 18,563,298.40 | 47,025,975.44 |
| Financialassetspurchasedunderresaleagreements | ||
| Inventories | 2,579,929,333.35 | 2,345,346,794.28 |
| Othercurrentassets | 28,649,163.94 | 55,992,522.81 |
| Totalcurrentassets | 5,889,190,987.54 | 5,441,197,292.14 |
| Non-currentassets: |
| Long-termreceivables | ||
| Long-termequityinvestment | 155,042,645.67 | 169,443,106.66 |
| Otherequityinstrumentinvestment | ||
| Othernon-currentfinancialassets | 190,052,000.00 | 190,052,000.00 |
| Investmentproperty | 20,911,618.62 | 21,362,302.03 |
| Fixedassets | 5,542,475,634.61 | 5,561,601,374.44 |
| Constructioninprogress | 274,563,543.36 | 237,579,082.99 |
| Right-of-useassets | 477,203,293.08 | 257,019,286.15 |
| Intangibleassets | 357,795,521.79 | 363,130,978.14 |
| Developmentcosts | ||
| Goodwill | 20,563,803.29 | 20,563,803.29 |
| Long-termdeferredexpenses | 2,045,675.62 | 672,601.04 |
| Deferredincometaxassets | 145,319,610.74 | 138,516,136.50 |
| Othernon-currentassets | 388,446,151.49 | 586,083,308.25 |
| Totalnon-currentassets | 7,574,419,498.27 | 7,546,023,979.49 |
| Totalassets | 13,463,610,485.81 | 12,987,221,271.63 |
| Currentliabilities: | ||
| Short-termborrowings | 1,259,466,003.35 | 1,011,034,138.32 |
| Held-for-tradingfinancialliabilities | 3,622,489.80 | |
| Derivativefinancialliabilities | ||
| Notespayable | 55,450,000.00 | |
| Accountspayable | 177,051,974.86 | 335,401,371.30 |
| Advancesfromcustomers | ||
| Contractliabilities | 159,719,228.93 | 204,967,348.96 |
| Payrollpayable | 226,484,047.60 | 272,014,296.09 |
| Taxespayable | 75,675,106.85 | 29,457,702.72 |
| Otherpayables | 89,649,867.37 | 97,200,565.31 |
| Including:Interestpayable | ||
| Dividendspayable | 441,113.64 | 441,113.64 |
| Held-for-saleliabilities |
| Currentportionofnon-currentliabilities | 9,189,916.44 | 8,877,404.52 |
| Othercurrentliabilities | 58,428,665.14 | 120,434,721.81 |
| Totalcurrentliabilities | 2,114,737,300.34 | 2,079,387,549.03 |
| Non-currentliabilities: | ||
| Long-termborrowings | 685,339,710.99 | 684,962,473.24 |
| Bondspayable | 1,412,196,548.55 | 1,395,480,652.71 |
| Including:Preferredshares | ||
| Perpetualbonds | ||
| Leaseliabilities | 110,455,594.21 | 121,357,658.41 |
| Long-termpayables | ||
| Long-termpayrollpayable | 45,933,262.13 | 57,384,062.39 |
| Provisions | ||
| Deferredincome | 163,339,109.58 | 188,958,133.78 |
| Deferredincometaxliabilities | 96,821,689.02 | 92,571,310.14 |
| Othernon-currentliabilities | ||
| Totalnon-currentliabilities | 2,514,085,914.48 | 2,540,714,290.67 |
| Totalliabilities | 4,628,823,214.82 | 4,620,101,839.70 |
| Owners’equity: | ||
| Sharecapital | 887,941,151.00 | 882,341,295.00 |
| Otherequityinstruments | 71,383,830.75 | 71,384,656.84 |
| Including:Preferredshares | ||
| Perpetualbonds | ||
| Capitalreserves | 379,130,899.16 | 340,587,387.65 |
| Less:Treasurystock | 67,684,900.00 | 78,908,300.00 |
| Othercomprehensiveincome | 44,467,322.98 | -36,423,748.37 |
| Specificreserve | ||
| Surplusreserves | 1,215,124,336.54 | 1,215,124,336.54 |
| Generalreserve | ||
| Retainedearnings | 5,920,996,752.38 | 5,589,201,772.37 |
| Totalequityattributabletoownersofthe | 8,451,359,392.81 | 7,983,307,400.03 |
| Companyastheparent | ||
| Non-controllinginterests | 383,427,878.18 | 383,812,031.90 |
| Totalowners’equity | 8,834,787,270.99 | 8,367,119,431.93 |
| Totalliabilitiesandowners’equity | 13,463,610,485.81 | 12,987,221,271.63 |
Legalrepresentative:LiuZibinChiefAccountant:ZhangKemingFinancialManager:ZhangKeming
2.BalanceSheetoftheCompanyastheParent
Unit:RMB
| Item | 30June2022 | 1January2022 |
| Currentassets: | ||
| Monetaryassets | 1,003,368,109.67 | 977,713,296.25 |
| Held-for-tradingfinancialassets | 205,958,323.45 | 1,286,000.00 |
| Derivativefinancialassets | ||
| Notesreceivable | 125,339,733.99 | 132,028,322.80 |
| Accountsreceivable | 411,270,113.30 | 425,711,738.27 |
| Accountsreceivablefinancing | 16,499,916.59 | 29,361,263.86 |
| Prepayments | 232,629,202.77 | 31,580,697.18 |
| Otherreceivables | 2,451,463,878.52 | 2,060,180,025.87 |
| Including:Interestreceivable | ||
| Dividendsreceivable | 126,413,895.72 | 94,525,975.44 |
| Inventories | 1,390,136,832.87 | 1,230,487,585.69 |
| Contractassets | ||
| Available-for-saleassets | ||
| Currentportionofnon-currentassets | ||
| Othercurrentassets | 9,687,385.16 | 205,568.38 |
| Totalcurrentassets | 5,846,353,496.32 | 4,888,554,498.30 |
| Non-currentassets: | ||
| Investmentsindebtobligations | ||
| Investmentsinotherdebtobligations | ||
| Long-termreceivables |
| Long-termequityinvestments | 2,806,147,532.17 | 2,818,047,993.16 |
| Investmentsinotherequityinstruments | ||
| Othernon-currentfinancialassets | 178,052,000.00 | 178,052,000.00 |
| Investmentproperty | 69,178,500.29 | 65,888,260.77 |
| Fixedassets | 2,216,186,063.22 | 2,305,059,429.29 |
| Constructioninprogress | 11,534,209.88 | 12,268,416.12 |
| Right-of-useassets | 109,479,060.12 | 116,279,075.24 |
| Intangibleassets | 206,705,953.99 | 209,970,392.83 |
| Developmentcosts | ||
| Goodwill | ||
| Long-termdeferredexpenses | 305,727.68 | 672,601.04 |
| Deferredincometaxassets | 58,194,531.91 | 56,003,944.38 |
| Othernon-currentassets | 385,336,148.70 | 366,112,002.79 |
| Totalnon-currentassets | 6,041,119,727.96 | 6,128,354,115.62 |
| Totalassets | 11,887,473,224.28 | 11,016,908,613.92 |
| Currentliabilities: | ||
| Short-termborrowings | 721,629,860.40 | 615,181,318.98 |
| Held-for-tradingfinancialliabilities | 3,257,000.00 | |
| Derivativefinancialliabilities | ||
| Notespayable | 213,094,435.63 | |
| Accountspayable | 76,659,878.30 | 146,714,973.77 |
| Advancesfromcustomers | ||
| Contractliabilities | 70,477,319.44 | 58,280,121.24 |
| Payrollpayable | 155,286,696.13 | 190,277,420.32 |
| Taxespayable | 51,562,547.32 | 15,288,956.94 |
| Otherpayables | 244,346,094.12 | 92,914,225.42 |
| Including:Interestpayable | ||
| Dividendspayable | 441,113.64 | 441,113.64 |
| Liabilitiesheldforsale | ||
| Currentportionofnon-currentliabilities | 8,905,336.67 | 8,605,336.67 |
| Othercurrentliabilities | 35,035,678.38 | 64,202,247.99 |
| Totalcurrentliabilities | 1,580,254,846.39 | 1,191,464,601.33 |
| Non-currentliabilities: | ||
| Long-termborrowings | 685,339,710.99 | 684,962,473.24 |
| Bondspayable | 1,412,196,548.55 | 1,395,480,652.71 |
| Including:Preferredshares | ||
| Perpetualbonds | ||
| Leaseliabilities | 112,980,621.66 | 118,780,465.67 |
| Long-termpayables | ||
| Long-termpayrollpayable | 45,933,262.13 | 57,384,062.39 |
| Provisions | ||
| Deferredincome | 122,922,118.47 | 125,360,026.35 |
| Deferredincometaxliabilities | 71,659,654.39 | 67,488,141.18 |
| Othernon-currentliabilities | ||
| Totalnon-currentliabilities | 2,451,031,916.19 | 2,449,455,821.54 |
| Totalliabilities | 4,031,286,762.58 | 3,640,920,422.87 |
| Owners’equity: | ||
| Sharecapital | 887,941,151.00 | 882,341,295.00 |
| Otherequityinstruments | 71,383,830.75 | 71,384,656.84 |
| Including:Preferredshares | ||
| Perpetualbonds | ||
| Capitalreserves | 440,510,933.40 | 401,967,421.89 |
| Less:Treasurystock | 67,684,900.00 | 78,908,300.00 |
| Othercomprehensiveincome | -72,587.02 | -293,580.24 |
| Specificreserve | ||
| Surplusreserves | 1,212,015,596.90 | 1,212,015,596.90 |
| Retainedearnings | 5,312,092,436.67 | 4,887,481,100.66 |
| Totalowners’equity | 7,856,186,461.70 | 7,375,988,191.05 |
| Totalliabilitiesandowners’equity | 11,887,473,224.28 | 11,016,908,613.92 |
3.ConsolidatedIncomeStatement
Unit:RMB
| Item | H12022 | H12021 |
| 1.Revenue | 3,330,294,463.25 | 2,220,313,650.94 |
| Including:Operatingrevenue | 3,330,294,463.25 | 2,220,313,650.94 |
| 2.Costsandexpenses | 2,825,026,554.05 | 2,173,672,124.61 |
| Including:Costofsales | 2,497,333,041.59 | 1,811,241,743.20 |
| Taxesandsurcharges | 34,501,258.01 | 28,158,126.87 |
| Sellingexpense | 59,894,351.04 | 48,546,795.06 |
| Administrativeexpense | 190,280,143.57 | 130,118,046.40 |
| Developmentcost | 114,951,241.87 | 131,384,483.80 |
| Financecosts | -71,933,482.03 | 24,222,929.28 |
| Including:Interestexpense | 44,216,587.17 | 28,972,821.31 |
| Interestincome | 22,350,147.90 | 14,562,127.13 |
| Add:Otherincome | 27,720,772.37 | 19,089,311.11 |
| Returnoninvestment(“-”forloss) | 1,448,571.38 | 29,181,508.22 |
| Including:Shareofprofitorlossofjointventuresandassociates | -1,076,939.49 | -1,789,070.68 |
| Incomefromthederecognitionoffinancialassetsatamortizedcost(“-”forloss) | ||
| Exchangegain(“-”forloss) | ||
| Netgainonexposurehedges(“-”forloss) | ||
| Gainonchangesinfairvalue(“-”forloss) | 3,069,030.56 | 8,034,224.66 |
| Creditimpairmentloss(“-”forloss) | 1,994,592.93 | 12,613,175.75 |
| Assetimpairmentloss(“-”forloss) | -81,695,738.30 | -7,035,233.41 |
| Assetdisposalincome(“-”forloss) | 2,668,023.30 | 58,531,388.42 |
| 3.Operatingprofit(“-”forloss) | 460,473,161.44 | 167,055,901.08 |
| Add:Non-operatingincome | 3,026,253.46 | 1,184,008.01 |
| Less:Non-operatingexpense | 2,165,139.66 | 2,589,928.93 |
| 4.Profitbeforetax(“-”forloss) | 461,334,275.24 | 165,649,980.16 |
| Less:Incometaxexpense | 67,767,576.50 | 22,209,233.14 |
| 5.Netprofit(“-”fornetloss) | 393,566,698.74 | 143,440,747.02 |
| 5.1Byoperatingcontinuity | ||
| 5.1.1Netprofitfromcontinuingoperations(“-”fornetloss) | 393,566,698.74 | 143,440,747.02 |
| 5.1.2Netprofitfromdiscontinuedoperations(“-”fornetloss) | ||
| 5.2Byownership | ||
| 5.2.1NetprofitattributabletoownersoftheCompanyastheparent | 393,950,852.46 | 153,497,344.66 |
| 5.2.1Netprofitattributabletonon-controllinginterests | -384,153.72 | -10,056,597.64 |
| 6.Othercomprehensiveincome,netoftax | 80,891,071.35 | -14,700,397.96 |
| AttributabletoownersoftheCompanyastheparent | 80,891,071.35 | -14,722,687.09 |
| 6.1Itemsthatwillnotbereclassifiedtoprofitorloss | ||
| 6.1.1Changescausedbyre-measurementsondefinedbenefitschemes | ||
| 6.1.2Othercomprehensiveincomethatwillnotbereclassifiedtoprofitorlossundertheequitymethod | ||
| 6.1.3Changesinthefairvalueofinvestmentsinotherequityinstruments | ||
| 6.1.4Changesinthefairvaluearisingfromchangesinowncreditrisk | ||
| 6.1.5Other | ||
| 6.2Itemsthatwillbereclassifiedtoprofitorloss | 80,891,071.35 | -14,722,687.09 |
| 6.2.1Othercomprehensiveincomethatwillbereclassifiedtoprofitorlossundertheequitymethod | ||
| 6.2.2Changesinthefairvalueofinvestmentsinotherdebtobligations | ||
| 6.2.3Othercomprehensiveincomearisingfromthereclassificationoffinancialassets | ||
| 6.2.4Creditimpairmentallowanceforinvestmentsinotherdebtobligations | ||
| 6.2.5Reserveforcashflowhedges | ||
| 6.2.6Differencesarisingfromthetranslationofforeigncurrency-denominatedfinancialstatements | 80,772,687.91 | -14,722,321.59 |
| 6.2.7Other | 118,383.44 | -365.50 |
| Attributabletonon-controllinginterests | 22,289.13 | |
| 7.Totalcomprehensiveincome | 474,457,770.09 | 128,740,349.06 |
| AttributabletoownersoftheCompanyastheparent | 474,841,923.81 | 138,774,657.57 |
| Attributabletonon-controllinginterests | -384,153.72 | -10,034,308.51 |
| 8.Earningspershare | ||
| 8.1Basicearningspershare | 0.45 | 0.17 |
| 8.2Dilutedearningspershare | 0.39 | 0.19 |
Wherebusinesscombinationsundercommoncontroloccurredinthecurrentperiod,thenetprofitachievedbytheacquireesbeforethecombinationswasRMB0.00,withtheamountforthesameperiodoflastyearbeingRMB0.00.Legalrepresentative:LiuZibinChiefAccountant:ZhangKemingFinancialManager:ZhangKeming
4.IncomeStatementoftheCompanyastheParent
Unit:RMB
| Item | H12022 | H12021 |
| 1.Operatingrevenue | 2,096,728,996.78 | 1,546,770,256.74 |
| Less:Costofsales | 1,554,834,847.73 | 1,233,607,256.57 |
| Taxesandsurcharges | 24,600,731.76 | 18,073,275.27 |
| Sellingexpense | 43,382,853.03 | 35,265,127.32 |
| Administrativeexpense | 133,045,963.42 | 75,940,716.94 |
| R&Dexpense | 76,010,921.94 | 92,384,664.97 |
| Financecosts | -82,597,376.96 | 7,127,260.14 |
| Including:Interestexpense | 15,888,011.59 | 13,954,488.83 |
| Interestincome | 14,238,816.94 | 11,629,881.84 |
| Add:Otherincome | 3,914,908.50 | 13,305,144.20 |
| Returnoninvestment(“-”forloss) | 220,205,603.25 | 111,926,435.70 |
| Including:Shareofprofitorlossofjointventuresandassociates | -1,076,939.49 | -1,789,070.68 |
| Incomefromthederecognitionoffinancialassetsatamortizedcost(“-”forloss) | ||
| Netgainonexposurehedges(“-”forloss) | ||
| Gainonchangesinfairvalue(“-”forloss) | 1,415,323.45 | 5,605,924.66 |
| Creditimpairmentloss(“-”forloss) | 216,712.40 | 11,175,804.15 |
| Assetimpairmentloss(“-”forloss) | -35,555,171.46 | -3,411,935.03 |
| Assetdisposalincome(“-”forloss) | 1,800,173.51 | 58,532,217.69 |
| 2.Operatingprofit(“-”forloss) | 539,448,605.51 | 281,505,546.90 |
| Add:Non-operatingincome | 2,262,303.15 | 972,603.08 |
| Less:Non-operatingexpense | 1,108,474.11 | 2,054,627.77 |
| 3.Profitbeforetax(“-”forloss) | 540,602,434.55 | 280,423,522.21 |
| Less:Incometaxexpense | 53,835,226.09 | 33,278,229.82 |
| 4.Netprofit(“-”fornetloss) | 486,767,208.46 | 247,145,292.39 |
| 4.1Netprofitfromcontinuingoperations(“-”fornetloss) | 486,767,208.46 | 247,145,292.39 |
| 4.2Netprofitfromdiscontinuedoperations(“-”fornetloss) | ||
| 5.Othercomprehensiveincome,netoftax | 220,993.22 | 260,564.41 |
| 5.1Itemsthatwillnotbereclassifiedtoprofitorloss | ||
| 5.1.1Changescausedbyre-measurementsondefinedbenefitschemes | ||
| 5.1.2Othercomprehensiveincomethatwillnotbereclassifiedtoprofitorlossundertheequitymethod | ||
| 5.1.3Changesinthefairvalueofinvestmentsinotherequityinstruments | ||
| 5.1.4Changesinthefairvaluearisingfromchangesinowncreditrisk | ||
| 5.1.5Other | ||
| 5.2Itemsthatwillbereclassifiedtoprofitorloss | 220,993.22 | 260,564.41 |
| 5.2.1Othercomprehensiveincomethatwillbereclassifiedtoprofitorlossundertheequitymethod | ||
| 5.2.2Changesinthefairvalueofinvestmentsinotherdebtobligations | ||
| 5.2.3Othercomprehensiveincomearisingfromthereclassificationoffinancialassets | ||
| 5.2.4Creditimpairmentallowanceforinvestmentsinotherdebtobligations | ||
| 5.2.5Reserveforcashflowhedges | ||
| 5.2.6Differencesarisingfromthetranslationofforeigncurrency-denominatedfinancialstatements | ||
| 5.2.7Other | 220,993.22 | 260,564.41 |
| 6.Totalcomprehensiveincome | 486,988,201.68 | 247,405,856.80 |
| 7.Earningspershare | ||
| 7.1Basicearningspershare | 0.56 | 0.28 |
| 7.2Dilutedearningspershare | 0.49 | 0.29 |
5.ConsolidatedCashFlowStatement
Unit:RMB
| Item | H12022 | H12021 |
| 1.Cashflowsfromoperatingactivities: | ||
| Proceedsfromsaleofcommoditiesandrenderingofservices | 3,081,011,881.19 | 2,188,519,072.50 |
| Taxrebates | 118,817,131.92 | 49,776,817.94 |
| Cashgeneratedfromotheroperatingactivities | 17,250,057.84 | 40,450,105.81 |
| Subtotalofcashgeneratedfromoperatingactivities | 3,217,079,070.95 | 2,278,745,996.25 |
| Paymentsforcommoditiesandservices | 2,128,158,530.89 | 1,226,604,647.77 |
| Cashpaidtoandforemployees | 821,334,821.91 | 720,934,623.02 |
| Taxespaid | 80,208,573.82 | 80,233,114.94 |
| Cashusedinotheroperatingactivities | 69,894,735.59 | 68,212,585.38 |
| Subtotalofcashusedinoperatingactivities | 3,099,596,662.21 | 2,095,984,971.11 |
| Netcashgeneratedfrom/usedinoperatingactivities | 117,482,408.74 | 182,761,025.14 |
| 2.Cashflowsfrominvestingactivities: | ||
| Proceedsfromdisinvestment | 13,323,521.50 | 1,123,970,000.00 |
| Returnoninvestment | 29,960,712.68 | 47,849,203.51 |
| Netproceedsfromthedisposaloffixedassets,intangibleassetsandotherlong-livedassets | 6,647,359.73 | 710,556.50 |
| Netproceedsfromthedisposalofsubsidiariesandotherbusinessunits | ||
| Cashgeneratedfromotherinvestingactivities | 32,608,417.38 | 37,938,763.04 |
| Subtotalofcashgeneratedfrominvestingactivities | 82,540,011.29 | 1,210,468,523.05 |
| Paymentsfortheacquisitionoffixedassets,intangibleassetsandotherlong-livedassets | 150,968,099.58 | 287,358,483.38 |
| Paymentsforinvestments | 280,000,000.00 | 620,970,000.00 |
| Netincreaseinpledgedloansgranted | ||
| Netpaymentsfortheacquisitionofsubsidiariesandotherbusinessunits | ||
| Cashusedinotherinvestingactivities | 173,868,706.94 | 2,365,093.84 |
| Subtotalofcashusedininvestingactivities | 604,836,806.52 | 910,693,577.22 |
| Netcashgeneratedfrom/usedininvestingactivities | -522,296,795.23 | 299,774,945.83 |
| 3.Cashflowsfromfinancingactivities: | ||
| Capitalcontributionsreceived | 20,000,880.00 | 80,383,350.00 |
| Including:Capitalcontributionsbynon-controllingintereststosubsidiaries | ||
| Borrowingsraised | 1,017,900,674.25 | 843,468,990.63 |
| Cashgeneratedfromotherfinancingactivities | ||
| Subtotalofcashgeneratedfromfinancingactivities | 1,037,901,554.25 | 923,852,340.63 |
| Repaymentofborrowings | 793,712,239.85 | 692,224,712.96 |
| Interestanddividendspaid | 89,198,073.90 | 66,479,635.99 |
| Including:Dividendspaidbysubsidiariestonon-controllinginterests | ||
| Cashusedinotherfinancingactivities | 18,218,984.29 | 9,339,306.00 |
| Subtotalofcashusedinfinancingactivities | 901,129,298.04 | 768,043,654.95 |
| Netcashgeneratedfrom/usedinfinancingactivities | 136,772,256.21 | 155,808,685.68 |
| 4.Effectofforeignexchangerateschangesoncashandcashequivalents | 27,668,484.46 | -3,229,063.94 |
| 5.Netincreaseincashandcashequivalents | -240,373,645.82 | 635,115,592.71 |
| Add:Cashandcashequivalents,beginningoftheperiod | 1,970,006,884.89 | 1,396,530,407.47 |
| 6.Cashandcashequivalents,endoftheperiod | 1,729,633,239.07 | 2,031,646,000.18 |
6.CashFlowStatementoftheCompanyastheParent
Unit:RMB
| Item | H12022 | H12021 |
| 1.Cashflowsfromoperatingactivities: | ||
| Proceedsfromsaleofcommoditiesandrenderingofservices | 2,011,005,609.32 | 1,577,179,188.45 |
| Taxrebates | 23,074,436.96 | 3,977,675.63 |
| Cashgeneratedfromotheroperatingactivities | 10,572,238.74 | 30,694,841.32 |
| Subtotalofcashgeneratedfromoperatingactivities | 2,044,652,285.02 | 1,611,851,705.40 |
| Paymentsforcommoditiesandservices | 1,331,190,780.98 | 803,497,278.61 |
| Cashpaidtoandforemployees | 484,573,239.10 | 440,588,791.54 |
| Taxespaid | 50,678,412.46 | 45,320,520.61 |
| Cashusedinotheroperatingactivities | 42,450,664.45 | 52,552,741.22 |
| Subtotalofcashusedinoperatingactivities | 1,908,893,096.99 | 1,341,959,331.98 |
| Netcashgeneratedfrom/usedinoperatingactivities | 135,759,188.03 | 269,892,373.42 |
| 2.Cashflowsfrominvestingactivities: | ||
| Proceedsfromdisinvestment | 13,323,521.50 | 549,430,000.00 |
| Returnoninvestment | 186,817,055.74 | 132,956,299.26 |
| Netproceedsfromthedisposaloffixedassets,intangibleassetsandotherlong-livedassets | 7,706,280.16 | 804,625.93 |
| Netproceedsfromthedisposalofsubsidiariesandotherbusinessunits | ||
| Cashgeneratedfromotherinvestingactivities | 1,095,700,570.04 | 495,197,496.03 |
| Subtotalofcashgeneratedfrominvestingactivities | 1,303,547,427.44 | 1,178,388,421.22 |
| Paymentsfortheacquisitionoffixedassets,intangibleassetsandotherlong-livedassets | 39,865,621.95 | 41,200,695.39 |
| Paymentsforinvestments | 202,500,000.00 | 392,970,000.00 |
| Netpaymentsfortheacquisitionofsubsidiariesandotherbusinessunits | ||
| Cashusedinotherinvestingactivities | 1,343,713,654.95 | 928,911,558.44 |
| Subtotalofcashusedininvestingactivities | 1,586,079,276.90 | 1,363,082,253.83 |
| Netcashgeneratedfrom/usedininvestingactivities | -282,531,849.46 | -184,693,832.61 |
| 3.Cashflowsfromfinancingactivities: | ||
| Capitalcontributionsreceived | 20,000,880.00 | 80,383,350.00 |
| Borrowingsraised | 507,937,437.39 | 442,042,271.59 |
| Cashgeneratedfromotherfinancingactivities | 154,870,600.00 | 58,215,720.00 |
| Subtotalofcashgeneratedfromfinancingactivities | 682,808,917.39 | 580,641,341.59 |
| Repaymentofborrowings | 416,282,653.26 | 86,522,398.76 |
| Interestanddividendspaid | 85,575,684.96 | 60,176,992.11 |
| Cashusedinotherfinancingactivities | 18,030,031.87 | 133,919,601.16 |
| Subtotalofcashusedinfinancingactivities | 519,888,370.09 | 280,618,992.03 |
| Netcashgeneratedfrom/usedinfinancingactivities | 162,920,547.30 | 300,022,349.56 |
| 4.Effectofforeignexchangerateschangesoncashandcashequivalents | 9,506,927.55 | -1,488,714.12 |
| 5.Netincreaseincashandcashequivalents | 25,654,813.42 | 383,732,176.25 |
| Add:Cashandcashequivalents,beginningoftheperiod | 977,713,296.25 | 728,346,695.28 |
| 6.Cashandcashequivalents,endoftheperiod | 1,003,368,109.67 | 1,112,078,871.53 |
7.ConsolidatedStatementsofChangesinOwners’Equity
H12022
Unit:RMB
| Item | H12022 | ||||||||||||||
| EquityattributabletoownersoftheCompanyastheparent | Non-controllinginterests | Totalowners’equity | |||||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Generalreserve | Retainedearnings | Other | Subtotal | |||||
| Preferredshares | Perpetualbonds | Other | |||||||||||||
| 1.Balancesasattheendoftheprioryear | 882,341,295.00 | 71,384,656.84 | 340,587,387.65 | 78,908,300.00 | -36,423,748.37 | 1,215,124,336.54 | 5,589,201,772.37 | 7,983,307,400.03 | 383,812,031.90 | 8,367,119,431.93 | |||||
| Add:Adjustmentsforchangedaccountingpolicies | |||||||||||||||
| Adjustmentsforcorrectionsofpreviouserrors | |||||||||||||||
| Adjustmentsforbusinesscombinationsundercommoncontrol | ||||||||||||||
| Otheradjustments | ||||||||||||||
| 2.Balancesasatthebeginningoftheyear | 882,341,295.00 | 71,384,656.84 | 340,587,387.65 | 78,908,300.00 | -36,423,748.37 | 1,215,124,336.54 | 5,589,201,772.37 | 7,983,307,400.03 | 383,812,031.90 | 8,367,119,431.93 | ||||
| 3.Increase/decreaseintheperiod(“-”fordecrease) | 5,599,856.00 | -826.09 | 38,543,511.51 | -11,223,400.00 | 80,891,071.35 | 331,794,980.01 | 468,051,992.78 | -384,153.72 | 467,667,839.06 | |||||
| 3.1Totalcomprehe | 80,891,071.35 | 393,950,852.46 | 474,841,923.81 | -384,153.72 | 474,457,770.09 |
| nsiveincome | |||||||||
| 3.2Capitalincreasedandreducedbyowners | 5,599,856.00 | -826.09 | 38,543,511.51 | -11,223,400.00 | 55,365,941.42 | 55,365,941.42 | |||
| 3.2.1Ordinarysharesincreasedbyshareholders | 5,599,856.00 | 14,417,713.13 | 20,017,569.13 | 20,017,569.13 | |||||
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments | -826.09 | -826.09 | -826.09 | ||||||
| 3.2.3Share- | 24,125,798.38 | 24,125,798.38 | 24,125,798.38 |
| basedpaymentsincludedinowners’equity | ||||||||
| 3.2.4Other | -11,223,400.00 | 11,223,400.00 | 11,223,400.00 | |||||
| 3.3Profitdistribution | -62,155,872.45 | -62,155,872.45 | -62,155,872.45 | |||||
| 3.3.1Appropriationtosurplusreserves | ||||||||
| 3.3.2Appropriationtogeneralreserve | ||||||||
| 3.3.3Appropriationtoowners(or | -62,155,872.45 | -62,155,872.45 | -62,155,872.45 |
| shareholders) |
| 3.3.4Other |
| 3.4Transferswithinowners’equity |
| 3.4.1Increaseincapital(orsharecapital)fromcapitalreserves |
| 3.4.2Increaseincapital(orsharecapital)fromsurplusreserves |
| 3.4.3 |
| Lossoffsetbysurplusreserves |
| 3.4.4Changesindefinedbenefitpensionschemestransferredtoretainedearnings |
| 3.4.5Othercomprehensiveincometransferredtoretainedearnings |
| 3.4.6Other |
| 3.5 |
| Specificreserve | ||||||||||||||
| 3.5.1Increaseintheperiod | ||||||||||||||
| 3.5.2Usedintheperiod | ||||||||||||||
| 3.6Other | ||||||||||||||
| 4.Balancesasattheendoftheperiod | 887,941,151.00 | 71,383,830.75 | 379,130,899.16 | 67,684,900.00 | 44,467,322.98 | 1,215,124,336.54 | 5,920,996,752.38 | 8,451,359,392.81 | 383,427,878.18 | 8,834,787,270.99 |
H12021
Unit:RMB
| Item | H12021 | ||||||||||||||
| EquityattributabletoownersoftheCompanyastheparent | Non-controllinginterests | Totalowners’equity | |||||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Generalreserve | Retainedearnings | Other | Subtotal | |||||
| Preferredshares | Perpetualbonds | Other | |||||||||||||
| 1.Balancesasattheendoftheprioryear | 858,132,322.00 | 71,386,451.81 | 255,912,488.01 | 1,308,922.89 | 1,154,017,457.79 | 5,346,819,948.22 | 7,687,577,590.72 | 404,098,789.18 | 8,091,676,379.90 | |||||
| Add:Adjustmentsforchangedaccountingpolicies | ||||||||||||||
| Adjustmentsforcorrectionsofpreviouserrors | ||||||||||||||
| Adjustmentsforbusinesscombinationsundercommoncontrol |
| Otheradjustments | ||||||||||||||
| 2.Balancesasatthebeginningoftheyear | 858,132,322.00 | 71,386,451.81 | 255,912,488.01 | 1,308,922.89 | 1,154,017,457.79 | 5,346,819,948.22 | 7,687,577,590.72 | 404,098,789.18 | 8,091,676,379.90 | |||||
| 3.Increase/decreaseintheperiod(“-”fordecrease) | 24,287,600.00 | -1,183.05 | 61,703,908.29 | -14,722,687.09 | 109,376,354.26 | 180,643,992.41 | -10,034,308.51 | 170,609,683.90 | ||||||
| 3.1Totalcomprehensiveincome | -14,722,687.09 | 153,497,344.66 | 138,774,657.57 | -10,034,308.51 | 128,740,349.06 | |||||||||
| 3.2Capitalincreasedandreducedbyowners | 24,287,600.00 | -1,183.05 | 61,703,908.29 | 85,990,325.24 | 85,990,325.24 |
| 3.2.1Ordinarysharesincreasedbyshareholders | 24,287,600.00 | 61,703,908.29 | 85,991,508.29 | 85,991,508.29 | ||||
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments | -1,183.05 | -1,183.05 | -1,183.05 | |||||
| 3.2.3Share-basedpaymentsincludedinowners’equity | ||||||||
| 3.2.4Other |
| 3.3Profitdistribution | -44,120,990.40 | -44,120,990.40 | -44,120,990.40 | |||
| 3.3.1Appropriationtosurplusreserves | ||||||
| 3.3.2Appropriationtogeneralreserve | ||||||
| 3.3.3Appropriationtoowners(orshareholders) | -44,120,990.40 | -44,120,990.40 | -44,120,990.40 | |||
| 3.3.4Other | ||||||
| 3.4Transferswithin |
| owners’equity |
| 3.4.1Increaseincapital(orsharecapital)fromcapitalreserves |
| 3.4.2Increaseincapital(orsharecapital)fromsurplusreserves |
| 3.4.3Lossoffsetbysurplusreserves |
| 3.4.4Changesindefined |
| benefitpensionschemestransferredtoretainedearnings |
| 3.4.5Othercomprehensiveincometransferredtoretainedearnings |
| 3.4.6Other |
| 3.5Specificreserve |
| 3.5.1Increaseintheperiod |
| 3.5.2Usedintheperiod | ||||||||||||||
| 3.6Other | ||||||||||||||
| 4.Balancesasattheendoftheperiod | 882,419,922.00 | 71,385,268.76 | 317,616,396.30 | -13,413,764.20 | 1,154,017,457.79 | 5,456,196,302.48 | 7,868,221,583.13 | 394,064,480.67 | 8,262,286,063.80 |
8.StatementsofChangesinOwners’EquityoftheCompanyastheParent
H12022
Unit:RMB
| Item | H12022 | |||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Retainedearnings | Other | Totalowners’equity | |||
| Preferredshares | Perpetualbonds | Other | ||||||||||
| 1.Balancesasattheendoftheprioryear | 882,341,295.00 | 71,384,656.84 | 401,967,421.89 | 78,908,300.00 | -293,580.24 | 1,212,015,596.90 | 4,887,481,100.66 | 7,375,988,191.05 | ||||
| Add:Adjustmentsforchangedaccounting | ||||||||||||
| policies | |||||||||||
| Adjustmentsforcorrectionsofpreviouserrors | |||||||||||
| Otheradjustments | |||||||||||
| 2.Balancesasatthebeginningoftheyear | 882,341,295.00 | 71,384,656.84 | 401,967,421.89 | 78,908,300.00 | -293,580.24 | 1,212,015,596.90 | 4,887,481,100.66 | 7,375,988,191.05 | |||
| 3.Increase/decreaseintheperiod(“-”fordecrease) | 5,599,856.00 | -826.09 | 38,543,511.51 | -11,223,400.00 | 220,993.22 | 424,611,336.01 | 480,198,270.65 | ||||
| 3.1Totalcomprehensiveincome | 220,993.22 | 486,767,208.46 | 486,988,201.68 | ||||||||
| 3.2Capitalincreasedandreducedbyowners | 5,599,856.00 | -826.09 | 38,543,511.51 | -11,223,400.00 | 55,365,941.42 |
| 3.2.1Ordinarysharesincreasedbyshareholders | 5,599,856.00 | 14,417,713.13 | 20,017,569.13 | ||||||
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments | -826.09 | -826.09 | |||||||
| 3.2.3Share-basedpaymentsincludedinowners’equity | 24,125,798.38 | 24,125,798.38 | |||||||
| 3.2.4Other | -11,223,400.00 | 11,223,400.00 | |||||||
| 3.3Profitdistribution | -62,155,872.45 | -62,155,872.45 | |||||||
| 3.3.1Appropriationtosurplusreserves |
| 3.3.2Appropriationtoowners(orshareholders) | -62,155,872.45 | -62,155,872.45 | ||
| 3.3.3Other | ||||
| 3.4Transferswithinowners’equity | ||||
| 3.4.1Increaseincapital(orsharecapital)fromcapitalreserves | ||||
| 3.4.2Increaseincapital(orsharecapital)fromsurplusreserves | ||||
| 3.4.3Lossoffsetby |
| surplusreserves |
| 3.4.4Changesindefinedbenefitpensionschemestransferredtoretainedearnings |
| 3.4.5Othercomprehensiveincometransferredtoretainedearnings |
| 3.4.6Other |
| 3.5Specificreserve |
| 3.5.1Increaseintheperiod |
| 3.5.2Usedintheperiod | |||||||||||
| 3.6Other | |||||||||||
| 4.Balancesasattheendoftheperiod | 887,941,151.00 | 71,383,830.75 | 440,510,933.40 | 67,684,900.00 | -72,587.02 | 1,212,015,596.90 | 5,312,092,436.67 | 7,856,186,461.70 |
H12021
Unit:RMB
| Item | H12021 | |||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Retainedearnings | Other | Totalowners’equity | |||
| Preferredshares | Perpetualbonds | Other | ||||||||||
| 1.Balancesasattheendoftheprioryear | 858,132,322.00 | 71,386,451.81 | 317,292,522.25 | -424,313.33 | 1,150,908,718.15 | 4,381,640,182.32 | 6,778,935,883.20 | |||||
| Add:Adjustmentsforchangedaccountingpolicies | ||||||||||||
| Adjustmentsforcorrectionsofpreviouserrors | ||||||||||||
| Otheradjustments | |||||||||||
| 2.Balancesasatthebeginningoftheyear | 858,132,322.00 | 71,386,451.81 | 317,292,522.25 | -424,313.33 | 1,150,908,718.15 | 4,381,640,182.32 | 6,778,935,883.20 | ||||
| 3.Increase/decreaseintheperiod(“-”fordecrease) | 24,287,600.00 | -1,183.05 | 61,703,908.29 | 260,564.41 | 203,024,301.99 | 289,275,191.64 | |||||
| 3.1Totalcomprehensiveincome | 260,564.41 | 247,145,292.39 | 247,405,856.80 | ||||||||
| 3.2Capitalincreasedandreducedbyowners | 24,287,600.00 | -1,183.05 | 61,703,908.29 | 85,990,325.24 | |||||||
| 3.2.1Ordinarysharesincreasedbyshareholders | 24,287,600.00 | 61,703,908.29 | 85,991,508.29 | ||||||||
| 3.2.2Capitalincreasedbyholdersof | -1,183.05 | -1,183.05 |
| otherequityinstruments | ||||
| 3.2.3Share-basedpaymentsincludedinowners’equity | ||||
| 3.2.4Other | ||||
| 3.3Profitdistribution | -44,120,990.40 | -44,120,990.40 | ||
| 3.3.1Appropriationtosurplusreserves | ||||
| 3.3.2Appropriationtoowners(orshareholders) | -44,120,990.40 | -44,120,990.40 | ||
| 3.3.3Other | ||||
| 3.4Transferswithinowners’ |
| equity |
| 3.4.1Increaseincapital(orsharecapital)fromcapitalreserves |
| 3.4.2Increaseincapital(orsharecapital)fromsurplusreserves |
| 3.4.3Lossoffsetbysurplusreserves |
| 3.4.4Changesindefinedbenefitpensionschemestransferredtoretained |
| earnings | |||||||||||
| 3.4.5Othercomprehensiveincometransferredtoretainedearnings | |||||||||||
| 3.4.6Other | |||||||||||
| 3.5Specificreserve | |||||||||||
| 3.5.1Increaseintheperiod | |||||||||||
| 3.5.2Usedintheperiod | |||||||||||
| 3.6Other | |||||||||||
| 4.Balancesasattheendoftheperiod | 882,419,922.00 | 71,385,268.76 | 378,996,430.54 | -163,748.92 | 1,150,908,718.15 | 4,584,664,484.31 | 7,068,211,074.84 |
IIICompanyProfileLuThaiTextileCo.,Ltd.(hereinafterreferredtoasthe“Company”)isajointventureinvestedbyZiboLuchengTextileInvestmentCo.,Ltd(originallynamedZiboLuchengTextileCo.,Ltd,hereinafterreferredtoasLuchengTextile)andThailandTailunTextileCo.,Ltd.On3February1993,theCompanyisapprovedbytheformerMinistryofForeignTradeandEconomyoftheState(1993)inWJMZEHZNo.59toconvertintoajoint-stockenterprise.ZiboAdministrationforIndustryandCommerceissuedtheCompanycorporatebusinesslicensewiththeregistrationNo.ofQGLZZZNo.000066.InJuly1997,theCompanyisapprovedbytheSecuritiesCommitteeoftheDepartmentoftheStateintheZWF(1997)No.47toissue80millionsharesofdomesticallylistedforeignshare(B-shares)atthepriceofRMB1.00pershare.UponapprovedbyShenzhenStockExchangewithNo.(1997)296ListingNotice,theCompanyislistedontheShenzhenStockExchangeon19August1997withB-sharesstockcodeof200726.On24November2000,approvedbyZJGSZ[2000]No.199byCSRC,theCompanyincreasedpublicationof50millionsharesofgeneralshare(A-shares)atthebookvalueofRMB1.00,whicharelistedontheShenzhenStockExchangeon25December2000withA-sharesstockcodeof000726throughapprovalbyShenzhenStockExchangewithNo.(2000)162ListingNotice.Asapprovedby2000AnnualGeneralMeetinginMay2001,theCompanycarriedoutthedistributionplanthat10sharesofcapitalpublicreserveareconvertedto3moresharesforeach10shares.AsapprovedbyResolutionsof2001AnnualGeneralMeetinginJune2002,theCompanyimplementedthedistributionplanthat10sharesofcapitalpublicreserveareconverted3moresharesforeach10sharesagain.Asapprovedby2002AnnualGeneralMeetinginMay2003,theCompanyimplementedthedistributionplanthat10sharesofcapitalpublicreserveare2moresharesforeach10shares,andinneremployees’sharedincreasedto40.56millionshares.AsexaminedandapprovedbyZJGSZNo.[2000]199ofCSRC,theinneremployees’shareswillstartcirculation3yearslatersincelistingontheA-sharemarket.On25December2003,theinneremployees’sharesreach3yearssincelistingontheA-sharestockmarket,andtheysetoutcirculationon26December2003.AsapprovedbytheAnnualGeneralMeeting2006heldinJune2007,theCompanyimplementedtheplanonconverting10sharestoallitsshareholderswithcapitalreservesforevery10shares.Aftercapitalization,theregisteredcapitaloftheCompanywasRMB
844.8648million.TheCompany,inaccordancewiththeofficialreplyonapprovingLuThaiTextileCo.,Ltd.toissueadditionalshares(ZJXK[2008]No.890document)fromCSRC,issuedtheRenminbicommonshares(Ashares)amountingto150millionshareson8December2008.Accordingtotherelevantresolutionofthe2
nd
SpecialExtraordinaryGeneralMeetingof2011,therelevantresolutionofthe15
th
Meetingofthe6
thBoardofDirectors,theOpinionofChinaSecuritiesRegulatoryCommissionontheRestrictedShareIncentivePlanofLuThaiTextileCo.,Ltd.(Shang-Shi-Bu-Han[2011]No.206),theCompanyappliedforaregisteredcapitalincrementofRMB14.09million,whichwascontributedbyrestrictedshareincentivereceiverswithmonetaryfunds.InaccordancewiththeresolutionofProposalonRepurchasingandCancelingPartialRestrictedSharesalreadyGrantedforthe
OriginalIncentiveTargetsnotReachingtheIncentiveConditionsmadeatthe23
rdSessionofthe6
th
BoardofDirectorson13August2012,theCompanycancelingatotalof60,000.00sharesalreadygrantedfortheoriginalincentivetargetsnotreachingtheincentiveconditions.AccordingtothesecondtemporaryresolutionofProposaloncounterpurchaseofpartofthedomesticlistedforeignshare(Bshare)on25June2012,theCompanycounterpurchasedomesticlistedforeignshare(Bshare)48,837,300shares.AccordingtotheProposalonRepurchaseandCancelPartofUnlockedRestrictedShareoftheOriginalIncentivePersonnelnotConformingtotheIncentiveCondition,ProposalonRepurchaseandCancelunlockedRestrictedShareinSecondUnlockedPeriodofalltheIncentivePersonnelreviewedandapprovedbythe26
th
Meetingofthe6
thBoardofDirectorson27March2013,theCompanyrepurchaseandcancel4,257,000sharesownedbyoriginalpeoplewhomtomotivate.AccordingtotheProposalonRepurchaseandWrite-offofPartlyoftheOriginalIncentiveTargetsNotMetwiththeIncentiveConditionsbutGrantedRestrictedSharesapprovedonthe11
th
Meetingofthe7
thBoardofDirectorson11June2014,toexecuterepurchaseandwrite-offofthewholegrantedsharesof42,000sharesoftheoriginalincentivetargetsnotmetwiththeincentivetargetsoftheCompany.AspertheProposalonBuy-backofSomeA-andB-sharesconsideredandapprovedasaresolutionatthe1
stspecialmeetingofshareholderson5August2015,theCompanyrepurchased33,156,200domesticallylistedforeignshares(B-shares).AspertheProposalonBuy-backofSomeB-sharesconsideredandapprovedasaresolutionatthe2
ndExtraordinaryGeneralMeetingon23March2018,theCompanyrepurchased64,480,800domesticallylistedforeignshares(B-shares).Therewere10,800sharesoftheCompanywhichwereconvertedfromtheconvertiblebondsin2020.Inlinewiththeresolutionofthe1stExtraordinaryGeneralMeetingoftheCompanyon13May2021andtheresolutionofthe24thMeetingofthe9thBoardofDirectorson17May2021,theCompanyimplementedtherestrictedshareincentiveschemeandappliedforaregisteredcapitalincrementofRMB24,285,000whichwascontributedbyrestrictedshareincentivereceiverswithmonetaryfunds.Inconformitywiththeresolutionofthe26thMeetingofthe9thBoardofDirectorsoftheCompanyon26August2021,theProposalonRepurchaseandCancelAuthorizedbutUnlockedRestrictedShareoftheIncentivePersonnelnotConformingtotheIncentiveCondition,theCompanyappliedforaregisteredcapitaldecreaseofRMB80,000.Therewere4,000sharesoftheCompanywhichwereconvertedfromtheconvertiblebondsin2021.InlinewiththeauthorizationofthefirstextraordinarygeneralmeetingoftheCompanyin2021andtheresolutionofthe30thsessionoftheNinthBoardofDirectorson18February2022,theCompanygrantedincentivepersonnel5,838,000sharesofreservedrestrictedshareunderthe2021incentiveplanandaddedregisteredcapitalofRMB5,838,000whichwascontributedbyrestrictedshareincentivepersonnelwithmonetaryfunds.Inconformitywiththeresolutionofthe30thsessionoftheNinthBoardofDirectorsoftheCompanyon18February2022,theProposalonRepurchaseandCancelAuthorizedbutUnlockedRestrictedShareofPartoftheIncentivePersonnel,theCompanyappliedforaregisteredcapitaldecreaseofRMB240,000.Atotalof1,900sharesofconvertiblebondsoftheCompanycouldbeconvertedfromJanuarytoJune2022.Asat30June2022,theCompany'sregisteredcapitalstoodatRMB887,941,200.TheCompany’sregisteredaddress:No.61,LuthaiAvenue,Hi-techDevelopmentZone,Zibo,Shandong
TheCompany’sunifiedsocialcreditcode:91370300613281175KTheCompany’slegalrepresentative:LiuZibinTheCompanyestablishesthecorporategovernancestructureconsistingoftheshareholdersmeeting,theBoardofDirectorsandtheSupervisoryCommittee.Atpresent,theCompanyhassetupvariousdepartmentsincludingtheYarn-dyedFabricProductLine,GarmentProductLine,theClothingMarketingDepartment,theGlobalMarketingDepartment,theSupplyChainDepartment,LuThaiEngineeringTechnologyInstitute,theEnterpriseManagementDepartment,theFinancialManagementDepartmentandtheStrategyandMarketDepartmentetc.ThescopeofbusinessoftheCompanyanditssubsidiariesshallincludegeneralprojects:Fabrictextileprocessing;fabricprintinganddyeingprocessing;garmentmanufacturing;thesalesoftextilesandrawmaterials;clothingwholesale;clothingretail;Internetsales(exceptforthesaleofgoodsrequiringalicense);theproductionofClassImedicaldevices;theproductionofroutinemasks(non-medical);theproductionoflabourprotectionappliances;softwaredevelopment;technicalservices,developmentoftechnology,technologyconsulting,technicalexchange,technologytransferandtechnologypromotion;thesalesoftextilespecialequipment;thesalesofmechanicalandelectricalequipment;theprocurementofprimaryagriculturalproducts;businesstraining(trainingsthatrequireapprovalsuchaseducationaltrainingandvocationalskilltrainingexclusive);housinglease;theleaseofnon-residentialrealestate;theleaseoflandusageright;thesalesofspecialchemicalproducts(dangerouschemicalsexclusive);andthesalesofbuildingmaterials.Itshallalsoincludelicensedprojects(businessactivitiescanbecarriedoutlegallyandindependentlywithbusinesslicenseinadditiontoprojectsthatmustbeapprovedbylaw):Inspectionandtestingservice;cateringservice;powergenerationbusiness,powertransmissionbusiness,andpowersupply(distribution)business.(Forprojectsthatmustbeapprovedbylaw,thebusinessactivitiescanonlybecarriedoutuponapprovalbytherelevantdepartments,andthespecificbusinessprojectsshallbesubjecttotheapprovaldocumentorlicenseofrelevantdepartments)TheCompany’sfinancialstatementsandNotesthereofhavebeenapprovedbythe3
rdMeetingofthe10
thBoardofDirectorsheldon24August2022.Therewere20subsidiariesincludedintotheconsolidationscopeoftheCompanyinH12022,andforthedetails,pleaserefertoNoteVIII.“ChangesofConsolidationScope”andNotesIX.“EquitiesamongOtherEntities”.
IVBasisforPreparationofFinancialStatements
1.PreparationBasis
Thisfinancialstatementispreparedinaccordancewiththeaccountingstandardsforbusinessenterprises,andtheapplicationguide,interpretationandotherrelevantregulations(hereinaftercollectivelyreferredtoas“AccountingStandardsforBusinessEnterprises”)issuedbytheMinistryofFinance.Inaddition,theCompanyalsodisclosedrelevantfinancialinformationinaccordancewiththeRegulationsonInformationDisclosureandCompilationforCompaniesPublicOfferingSecuritiesNo.15-GeneralProvisionsonFinancialReport(revisedin2014)issuedbyChinaSecuritiesRegulatoryCommission.TheCompany'saccountingisbasedontheaccrualbasis.Exceptforcertainfinancialinstruments,thisfinancialstatementismeasuredonthebasisofhistoricalcost.Iftheassetisimpaired,thecorrespondingimpairmentprovisionshallbemadeinaccordancewithrelevantregulations.
2.Going-concern
Thefinancialstatementsarepresentedonthebasisofcontinuingoperations.
VSignificantAccountingPoliciesandEstimatesSpecificaccountingpoliciesandaccountingestimatesindicators:
TheCompanydeterminesincomerecognitionpolicyaccordingtoitsproductionandoperationcharacteristics,andthespecificaccountingpoliciesareshowninNoteV(27).
1.StatementofCompliancewiththeAccountingStandardsforBusinessEnterprises
ThefinancialstatementspreparedbytheCompanyareincompliancewithincompliancewiththeAccountingStandardsforBusinessEnterprises,whichfactuallyandcompletelypresenttheconsolidated,andtheCompany’sfinancialpositionsasat31December2021,businessresultsandcashflowsfor2021,andotherrelevantinformation.
2.FiscalYear
TheCompany’sfiscalyearstartson1Januaryandendson31DecemberofeveryyearaccordingtotheGregoriancalendar.
3.OperatingCycleTheCompanyregards12monthsasanoperatingcycle.
4.RecordingCurrencyTheCompanyanditsdomesticsubsidiariesadoptRMBastherecordingcurrency.TheCompany’soverseassubsidiariesconfirmtoadoptHKDollarandUSDollarastherecordingcurrencyaccordingtheirmajoreconomicenvironmentoftheoperating.WhenpreparingthefinancialstatementsfortheReportingPeriod,theCompanyadoptedRMBastherecordingcurrency.
5.AccountingTreatmentforBusinessCombinationsundertheCommonControlandNotundertheCommonControl
(1)BusinesscombinationsunderthesamecontrolForbusinesscombinationsunderthesamecontrol,theassetsandliabilitiesofthemergedpartyacquiredbythemergerpartyinthemerger,exceptforadjustmentsduetodifferentaccountingpolicies,shallbemeasuredatthecarryingvalueofthemergedpartyintheconsolidatedfinancialstatementofthefinalcontrolleronthecombinationdate.Asforthedifferencebetweenthecarryingvalueofthemergerconsiderationandcarryingvalueofthenetassetsobtainedinthemerger,thecapitalreserve(capitalstockpremium)shallbeadjusted,andifthecapitalreserve(capitalstockpremium)isinsufficienttooffset,theretainedearningsshallbeadjusted.RealizebusinesscombinationunderthesamecontrolinstepsbytransactionseveraltimesInspecificfinancialstatements,theshareofbookvalueofthenetassetsofthecombinedpartythatshallbeenjoyedinthecombinedfinancialstatementsofthefinalcontrolpartyonthecombinationdateascalculatedaccordingtotheshareholdingratioofthecombinationdateisregardedastheinitialinvestmentcostoftheinvestment;thedifferencebetweentheinitialinvestmentcostandthesumofbookvalueofinvestmentheldbeforecombinationplusthebookvalueoftheconsiderationnewlypaidonthecombinationdateisusedforadjustingthecapitalreserve(capitalstockpremium),andifthecapitalreserveisinsufficienttooffset,theretainedearningsshallbeadjusted.Inthecombinedfinancialstatements,theassetsandliabilitiesofthecombinedpartyacquiredbythecombiningpartyinthecombination,exceptforadjustmentsduetodifferentaccountingpolicies,shallbemeasuredatthebookvalueofthecombinedpartyintheconsolidatedfinancialstatementofthefinalcontrolleronthecombinationdate;thedifferencebetweenthesumofthebook
valueofinvestmentheldbeforecombinationplusthebookvaluenewlypaidonthecombinationdate,andthebookvalueofthenetassetsacquiredincombination,isusedforadjustingthecapitalreserve(capitalstockpremium),andifthecapitalreserve(capitalstockpremium)isinsufficienttooffset,theretainedearningsshallbeadjusted.Thelong-termequityinvestmentheldbythecombiningpartybeforeacquiringthecontrolrightofthecombinedparty,ifrelevantgainsandlosses,othercomprehensiverevenuesandchangesinotherowner’sequityhavebeenconfirmedfromthedateofacquiringequityandthedatewhenthecombiningpartyandthecombinedpartyunderthefinalcontrolofthesameparty,whicheverislater,tothecombinationdate,shalloffsettheretainedearningsatthebeginningorcurrentprofitsandlossesintheperiodofcomparingstatements.
(2)BusinesscombinationsnotunderthesamecontrolForabusinesscombinationnotunderthesamecontrol,thecostofthecombinationistheassetspaid,liabilitiesincurredorassumed,andthefairvalueoftheequitysecuritiesissuedontheacquisitiondatetoobtaincontroloverthepurchasedparty.Onthepurchasedate,theacquiredassets,liabilitiesandcontingentliabilitiesofthepurchasedpartyarerecognizedatfairvalue.Thedifferencebetweenthemergercostandthefairvalueoftheidentifiablenetassetsoftheacquiredpartyacquiredinthemerger(theformerisgreaterthanthelatter)isrecognizedasgoodwill,andsubsequentmeasurementismadebasedonthecostdeductingtheaccumulatedimpairmentprovision;thedifferencebetweenthemergercostandthefairvalueoftheidentifiablenetassetsoftheacquiredpartyacquiredinthemerger(theformerislessthanthelatter)shallberecordedintothecurrentprofitorlossaftertherecheck.AchievebusinesscombinationnotunderthesamecontrolstepbystepthroughmultipletransactionsInspecificfinancialstatements,thesumofbookvalueoftheacquiredparty'sequityinvestmentheldbeforethepurchasedateandtheinvestmentcostnewlypaidonthepurchasedateisregardedastheinitialinvestmentcostoftheinvestment.Theothercomprehensiveincomerecognizedbyusingtheequitymethodofaccountingoftheequityinvestmentheldbeforethepurchasedate,isnotdisposedonthepurchasedate,andthesamebasisasthedirectdisposalofrelevantassetsorliabilitiesoftheinvesteeisusedtoconductaccountingtreatmentwhendisposingtheinvestment;theowner'sequityrecognizedasaresultofthechangesoftheotherowner'sequityexceptforthenetprofitandlossoftheinvestee,othercomprehensiveincomeandprofitdistributionshallbetransferredtothecurrentprofitandlossduringthedisposalperiodwhendisposingtheinvestment.Iftheequityinvestmentheldbeforethepurchasedateismeasuredatfairvalue,theaccumulativechangesinfairvalueoriginallyincludedinothercomprehensiveincomeshallbetransferredtoretainedearningswhenaccountingbycostmethod.Inconsolidatedfinancialstatements,thecostofconsolidationisthesumoftheconsiderationpaidatthepurchasedateandthefairvalueatthepurchasedateoftheequityalreadyheldbytheacquiredpartybeforethepurchasedate.Forequityoftheacquiredpartythatisalreadyheldbeforethepurchasedate,itshallbere-measuredaccordingtothefairvalueoftheequityonthepurchasedate,andthedifferencebetweenthefairvalueanditsbookvalueshallbeincludedinthecurrentincome.Iftheequityoftheacquiredpartyheldbeforethepurchasedateinvolvesothercomprehensiveincomeandthechangesofotherowner'sequity,itshallbetransferredtocurrentincomeonthepurchasedate,exceptforothercomprehensiveincomecausedbychangesinnetliabilitiesornetassetsoftheincomeplanremeasuredandresetbytheinvestee.
(3)TreatmentoftransactioncostsinbusinesscombinationsIntermediaryexpensessuchasauditing,legalservices,evaluationandconsultingandotherrelatedmanagementexpensesincurredforthebusinesscombinationshallbeincludedinthecurrentprofitandlosswhenincurred.Thetransactioncostsofequitysecuritiesordebtsecuritiesissuedasthemergerconsiderationshallbeincludedintheinitialrecognitionamountofequitysecuritiesordebtsecurities.
6.PreparationoftheConsolidatedFinancialStatements
(1)ConsolidationscopeTheconsolidationscopeoftheconsolidatedfinancialstatementsisdeterminedonthebasisofcontrol.ControlmeansthattheCompanyhasthepowerovertheinvestedunit,enjoysvariablereturnsbyparticipatingintherelatedactivitiesoftheinvestedunit,
andhastheabilitytousethepowerovertheinvestedunittoinfluencetheamountofitsreturn.SubsidiariesrefertotheentitiescontrolledbytheCompany(includingenterprises,divisiblepartsofinvestedentities,structuredentities,etc.).
(2)PreparationmethodofconsolidatedfinancialstatementsTheconsolidatedfinancialstatementsarepreparedbytheCompanybasedonthefinancialstatementsoftheCompanyanditssubsidiariesandotherrelevantmaterials.Whenpreparingtheconsolidatedfinancialstatements,theaccountingpoliciesandaccountingfiscaloftheCompanyandthoseofsubsidiariesshallbeconsistentandthelargetransactionsandintercoursebalanceamongcompaniesshallbeoffset.SubsidiariesandbusinessesincreasedduetobusinesscombinationsunderthesamecontrolduringtheReportingPeriodshallbeincludedintotheCompany’scombinationscopesincethedatewhentheyarejointlycontrolledbythefinalcontroller,andtheoperatingresultandcashflowsincethenshallberespectivelyincludedintotheconsolidatedincomestatementandconsolidatedcashflowstatement.AsforsubsidiariesandbusinessesincreaseduetobusinesscombinationsnotunderthesamecontrolduringtheReportingPeriod,therevenue,expensesandprofitorthosesubsidiariesandbusinessesfromthepurchasedatetotheendoftheReportingPeriodshallbeincludedintotheconsolidatedincomestatementandthecashflowthereofshallbeincludedintotheconsolidatedcashflowstatement.Theshareofshareholders’equityinsubsidiariesnotbelongingtotheCompanyshallberegardedastheminorityinterestsandseparatelylistedundertheitemofshareholders’equityintheconsolidatedbalancesheet.Theshareofcurrentportionofnetprofitorlossinsubsidiariesbelongingtominorityinterestsshallpresentedastheitemofminorityinterestsundertheitemofnetprofitintheconsolidatedincomestatement.Thedifferencebetweenthelossesofsubsidiariesbornbynot-controllingshareholdersandtheshareofthecompany’sowners’equityattheperiod-beginningthenot-controllingshareholdersenjoy(theformerislargerthanthelatter)shallbeoffsettheminorityinterests.
(3)Purchaseofminorityshareholders'equityofsubsidiariesAsforthedifferencebetweenthecostofalong-termequityinvestmentnewlyacquiredduetothepurchaseoftheminoritysharesandtheshareofnetassetsofthesubsidiarycontinuouslyaccountedfromthepurchasedateorcombinationdatetheCompanyshallenjoybasedonthenewshareholdingratioandthedifferencebetweenthedisposalpriceofpartialequityinvestmentsinthesubsidiaryunderthepremiseofremainingthecontrolpowerandtheshareofnetassetsofthesubsidiarycontinuouslyaccountedfromthepurchasedateorcombinationdatetheCompanyshallenjoyandcorrespondingtothedisposaloflong-termequityinvestments,thecapitalreserve(capitalstockpremium)intheconsolidatedbalancesheetshallbeadjustedandwhenthecapitalreserveisinsufficienttooffset,theretainedearningsshallbeadjusted.
(4)TreatmentoflossofcontroloversubsidiariesIfthecontrolovertheoriginalsubsidiaryislostduetothedisposalofpartialequityinvestmentsorotherreasons,theresidualequityshallberemeasuredatthefairvalueonthedateoflosingthecontrolpower;thebalanceofthesumoftheconsiderationobtainedfromequitydisposalandthefairvalueofresidualequityafterdeductingthesumoftheshareofthecarryingvalueofnetassetsintheoriginalsubsidiarycontinuouslyaccountedfromthepurchasedatetheCompanyshallenjoybasedontheoriginalshareholdingratioandthegoodwillshallberecordedintotheinvestmentincomeoftheperiodwhenthecontrolpowerislost.Theothercomprehensiveincomerelatedtotheequityinvestmentsintheoriginalsubsidiaryshallbetransferredtothecurrentprofitorlosswhenthecontrolpowerislostexceptfortheothercomprehensiveincomearisingfromchangesinnetliabilitiesornetassetsduetotheremeasurementofdefinedbenefitplanbytheinvestee.
7.ClassificationofJointArrangementsandAccountingTreatmentofJointOperations
Jointarrangementreferstoanarrangementunderthejointcontroloftwoormoreparticipants.TheCompany'sjointarrangementsaredividedintojointoperationsandjointventures.
(1)JointoperationsAjointoperationreferstoajointarrangementwherebytheCompanyenjoysrelevantassetsofthearrangement,andassumesobligationsrelevantliabilitiesofthearrangement.TheCompanyrecognizesthefollowingitemsrelatedtotheinterestshareinjointoperation,andconductsaccountingtreatmentin
accordancewithrelevantprovisionsoftheAccountingStandardforBusinessEnterprises:
A.Itrecognizesseparatelyheldassetsandjointlyheldassetsaccordingtotheproportion;B.Itrecognizesseparatelyassumedliabilitiesandjointlyassumedliabilitiesaccordingtotheproportion;C.Incomefromthesaleoftheproportionofjointoperationoutputisrecognized;D.Incomefromthesaleofthejointoperationoutputisrecognizedaccordingtotheproportion.E.Whiletheseparatelyincurredfeeisrecognized,theincurredfeeforjointoperationisrecognizedaccordingtotheproportion.
(2)JointventuresAjointventurereferstoajointarrangementwherebytheCompanyenjoystherightofthenetassetsofthearrangementonly.AccountingtreatmentoftheinvestmentofajointventureisconductedbytheCompanyinlinewiththeprovisionsofrelevantequitymethodofaccountingforlong-termequityinvestment.
8.ConfirmationStandardforCashandCashEquivalent
Theterm“cash”referstocashonhandanddepositsthatareavailableforpaymentatanytime.CashequivalentsrefertoinvestmentsheldbytheCompanythatareshort-term,highlyliquid,easilyconvertibleintoknownamountsofcash,andhavelittleriskofchangeinvalue.
9.ForeignCurrencyBusinessesandTranslationofForeignCurrencyFinancialStatements
(1)ForeigncurrencybusinessTheCompany'sforeigncurrencybusinessistranslatedintotheamountoftherecordingcurrencyattheapproximateexchangerateofthespotexchangerateonthetransactiondate.Onthebalancesheetdate,foreigncurrencymonetaryitemsaretranslatedatthespotexchangerateonthebalancesheetdate.Theexchangedifferencearisingfromthedifferencebetweenthespotexchangerateonthebalancesheetdateandthespotexchangerateatthetimeofinitialrecognitionorthepreviousbalancesheetdateisincludedinthecurrentprofitandloss;forforeigncurrencynon-monetaryitemsmeasuredathistoricalcost,thetranslationadoptsthespotexchangerateonthedaythetransactionoccurs;forforeigncurrencynon-monetaryitemsmeasuredatfairvalue,thetranslationadoptsthespotexchangerateonthedaywhenthefairvalueisconfirmed,andthedifferencebetweentheamountofrecordingcurrencyandtheamountoforiginalrecordingcurrencyshallbeincludedintothecurrentprofitorlossorothercomprehensiveincomebasedonthenatureofnon-monetaryitems.
(2)ConversionofforeigncurrencyfinancialstatementsWhenconvertingtheforeigncurrencyfinancialstatementsofoverseassubsidiariesonthebalancesheetdate,theassetsandliabilitiesitemsinthebalancesheetshallbeconvertedatthespotexchangerateonthebalancesheetdate.Otheritemsofshareholders'equityexceptfor"undistributedprofits"shallbeconvertedatthespotexchangerateontheoccurrencedate.Incomeandexpenseitemsintheincomestatementshallbeconvertedusingthespotexchangerateonthetransactiondate.Allitemsinthecashflowstatementareconvertedaccordingtothespotexchangerateontheoccurrencedateofcashflow.Theimpactofexchangeratechangesoncashistakenasareconcilingitem,andtheitem"impactofexchangeratechangesoncashandcashequivalents"isseparatelylistedinthecashflowstatementtoreflect.Thedifferencearisingfromtheconversionoffinancialstatementsisreflectedinthe"othercomprehensiveincome"undertheshareholders'equityinthebalancesheet.Whendisposingoftheoverseasoperationandlosingcontrolrights,theforeigncurrencystatementconversiondifferencerelatedtotheoverseasoperationshownundertheshareholders'equityinthebalancesheetshallbetransferredtocurrentprofitandlossofdisposalinwholeorinproportiontothedisposalofoverseasoperation.
10.FinancialInstruments
Financialinstrumentsrefertocontractsthatformoneparty’sfinancialassetsandformotherparties’financialliabilitiesorequityinstruments.
(1)RecognitionandderecognitionoffinancialinstrumentsTheCompanyrecognizesafinancialassetorliabilitywhenitbecomesapartyoftherelevantfinancialinstrumentcontract.Whereafinancialassetsatisfiesanyofthefollowingrequirements,therecognitionofitisterminated:
①Thecontractualrightsforcollectingthecashflowofthesaidfinancialassetareterminated;
②Thesaidfinancialassethasbeentransferredandmeetthefollowingderecognitionconditionsfortransferoffinancialassets.Onlywhentheprevailingobligationsofafinancialliabilityarerelievedinallorinpartmaytherecognitionofthefinancialliabilitybeterminatedinallorpartly.WheretheCompany(debtor)entersintoanagreementwithacreditorsoastosubstitutetheexistingfinancialliabilitiesbywayofanynewfinancialliability,andifthecontractualstipulationsregardingthenewfinancialliabilityissubstantiallydifferentfromthatregardingtheexistingfinancialliability,itterminatestherecognitionoftheexistingfinancialliability,andatthesametimerecognizesthenewfinancialliability.Thepurchaseandsaleoffinancialassetsunderthenormalwaysshallberecognizedandstoppedtoberecognizedrespectivelyatthepriceoftransactiondate.
(2)ClassificationandmeasurementoffinancialassetsTheCompanyclassifiesfinancialassetsintothefollowingthreecategoriesaccordingtothebusinessmodeofmanagingfinancialassetsandthecontractualcashflowcharacteristicsoffinancialassetsuponinitialrecognition:financialassetsmeasuredatamortizedcost,financialassetsmeasuredatfairvalueandwhosechangesareincludedinothercomprehensiveincome,andfinancialassetsmeasuredatfairvalueandwhosechangesareincludedincurrentprofitandloss.FinancialassetsmeasuredatamortizedcostTheCompanyclassifiesfinancialassetsthatmeetthefollowingconditionsandarenotdesignatedtobemeasuredatfairvalueandwhosechangesareincludedincurrentprofitandlossasfinancialassetsmeasuredatamortizedcost:
TheCompany'sbusinessmodelformanagingthisfinancialassetisaimedatcollectingcontractualcashflow;Thecontractualtermsofthisfinancialassetstipulatethatthecashflowgeneratedonthespecificdateisonlythepaymentofprincipalandinterestbasedontheprincipalamountoutstanding.Suchfinancialassetsaremeasuredinamortizedcostbytheeffectiveinterestmethodafterinitialrecognition.Gainsorlossesarisingfromfinancialassetsmeasuredinamortizedcostthatarenotpartofanyhedgingrelationshipareincludedincurrentprofitandlosswhenderecognition,amortizationaccordingtotheeffectiveinterestmethod,orimpairmentisrecognized.FinancialassetsmeasuredatfairvalueandwhosechangesareincludedinothercomprehensiveincomeTheCompanyclassifiesfinancialassetsthatmeetthefollowingconditionsandarenotdesignatedtobemeasuredatfairvalueandwhosechangesareincludedincurrentprofitandlossasfinancialassetsmeasuredatfairvalueandwhosechangesareincludedinothercomprehensiveincome:
TheCompany'sbusinessmodelformanagingthisfinancialassetisaimedatbothcollectingthecontractualcashflowandsellingthisfinancialasset;Thecontractualtermsofthisfinancialassetstipulatethatthecashflowgeneratedonthespecificdateisonlythepaymentofprincipalandinterestbasedontheprincipalamountoutstanding.Suchfinancialassetsaresubsequentlymeasuredatfairvalueafterinitialrecognition.Interest,impairmentlossesorgainsandexchangegainsandlossescalculatedbytheeffectiveinterestmethodareincludedincurrentprofitandloss,whileothergainsorlossesareincludedinothercomprehensiveincome.Whenthefinancialassetisderecognized,theaccumulatedgainsorlossespreviouslyincludedinothercomprehensiveincomearetransferredoutandincludedincurrentprofitandloss.FinancialassetsmeasuredatfairvalueandwhosechangesareincludedincurrentprofitandlossExceptfortheabovefinancialassetsmeasuredatamortizedcostandatfairvaluewithchangesincludedinothercomprehensive
income,theCompanyclassifiesallotherfinancialassetsasfinancialassetsmeasuredatfairvaluewithchangesincludedincurrentprofitandloss.Uponinitialrecognition,inordertoeliminateorsignificantlyreduceaccountingmismatches,theCompanyirrevocablydesignatessomefinancialassetsthatshouldhavebeenmeasuredatamortizedcostoratfairvalueandwhosechangesareincludedinothercomprehensiveincomeasfinancialassetsmeasuredatfairvalueandwhosechangesareincludedincurrentprofitandloss.Suchfinancialassetsaresubsequentlymeasuredatfairvalueafterinitialrecognition,andtheresultinggainsorlosses(includinginterestanddividendincome)areincludedincurrentprofitandlossunlessthefinancialassetsarepartofthehedgingrelationship.ThebusinessmodelofmanagingfinancialassetsreferstohowtheCompanymanagesfinancialassetstogeneratecashflow.ThebusinessmodeldetermineswhetherthecashflowofthefinancialassetsmanagedbytheCompanycomesfromthecollectionofcontractualcashflow,thesaleoffinancialassetsorboth.TheCompanydeterminesthebusinessmodelformanagingfinancialassetsonthebasisofobjectivefactsandspecificbusinessobjectivesdecidedbykeymanagementpersonneltomanagefinancialassets.TheCompanyevaluatesthecontractualcashflowcharacteristicsoffinancialassetstodeterminewhetherthecontractualcashflowgeneratedbytherelevantfinancialassetsonthespecificdateisonlythepaymentofprincipalandinterestbasedontheprincipalamountoutstanding.Amongthem,theprincipalreferstothefairvalueoffinancialassetsuponinitialrecognition;interestincludesconsiderationforthetimevalueofmoney,creditrisksrelatedtotheprincipalamountoutstandinginthespecificperiod,andotherbasiclendingrisks,costsandprofits.Inaddition,theCompanyevaluatesthecontracttermsthatmayleadtochangesinthetimedistributionoramountofcontractualcashflowoffinancialassetstodeterminewhethertheymeettherequirementsoftheabove-mentionedcontractualcashflowcharacteristics.OnlywhentheCompanychangesthebusinessmodeofmanagingfinancialassetswillallaffectedrelatedfinancialassetsbereclassifiedonthefirstdayofthefirstreportingperiodafterbusinessmodelchanges,otherwisefinancialassetscannotbereclassifiedafterinitialrecognition.Financialassetsaremeasuredatfairvalueuponinitialrecognition.Forfinancialassetsmeasuredatfairvalueandwhosechangesareincludedincurrentprofitandloss,relevanttransactionexpensesaredirectlyincludedincurrentprofitandloss;forothertypesoffinancialassets,relevanttransactionexpensesareincludedintheinitialrecognitionamount.Foraccountsreceivablearisingfromthesaleofproductsortheprovisionoflaborservices,whichdonotincludeordonotconsidersignificantfinancingcomponents,theamountofconsiderationtheCompanyisexpectedtobeentitledtoreceiveistakenastheinitialrecognitionamount.
(3)ClassificationandmeasurementoffinancialliabilitiesTheCompany'sfinancialliabilitiesareclassifieduponinitialrecognitionas:financialliabilitiesmeasuredatfairvalueandwhosechangesareincludedincurrentprofitandloss,andfinancialliabilitiesmeasuredatamortizedcost.Forfinancialliabilitiesthatarenotclassifiedasmeasuredatfairvalueandwhosechangesareincludedincurrentprofitandloss,relevanttransactioncostsareincludedintheinitialrecognitionamount.FinancialliabilitiesmeasuredatfairvalueandwhosechangesareincludedincurrentprofitandlossFinancialliabilitiesmeasuredatfairvalueandwhosechangesareincludedincurrentprofitandlossincludetransactionalfinancialliabilitiesandfinancialliabilitiesdesignatedasmeasuredatfairvalueuponinitialrecognitionandwhosechangesareincludedincurrentprofitandloss.Subsequentmeasurementshallbecarriedoutaccordingtofairvalueforsuchfinancialliabilities.Gainsorlossesresultingfromchangesinfairvalueanddividendsandinterestexpensesrelatedtosuchfinancialliabilitiesshallbeincludedincurrentprofitandloss.FinancialliabilitiesmeasuredatamortizedcostOtherfinancialliabilitiesaresubsequentlymeasuredatamortizedcostbyusingtheeffectiveinterestmethod.Gainsorlossesresultingfromderecognitionoramortizationareincludedincurrentprofitandloss.DistinctionbetweenfinancialliabilitiesandequityinstrumentsFinancialliabilitiesrefertoliabilitiesthatmeetoneofthefollowingconditions:
①Thecontractualobligationtodelivercashorotherfinancialassetstootherparties.②Thecontractualobligationtoexchangefinancialassetsorfinancialliabilitieswithotherpartiesunderpotentiallyunfavorable
conditions.③Non-derivativecontractsthatmustbeorcanbesettledwiththeenterprise'sownequityinstrumentsinthefuture,andtheenterprisewilldeliveravariablenumberofitsownequityinstrumentsaccordingtothecontract.④Derivativecontractsthatmustbeorcanbesettledwiththeenterprise'sownequityinstrumentsinthefuture,exceptderivativescontractsthatexchangeafixedamountofcashorotherfinancialassetswithafixedamountofitsownequityinstruments.Equityinstrumentsrefertocontractsthatcanprovethatanenterprisehastheresidualequityinitsassetsafterdeductingallliabilities.IftheCompanycannotunconditionallyavoidperformingacontractualobligationbydeliveringcashorotherfinancialassets,thecontractualobligationmeetsthedefinitionoffinancialliability.IfafinancialinstrumentmustbeorcanbesettledwiththeCompany'sownequityinstruments,itisnecessarytoconsiderwhethertheCompany'sownequityinstrumentsusedtosettletheinstrumentareusedassubstitutesforcashorotherfinancialassetsortoenabletheholderofthisinstrumenttoenjoytheresidualequityintheassetsafterdeductingallliabilitiesfromtheissuer.Ifitistheformer,thisinstrumentistheCompany'sfinancialliability;ifthelatteristhecase,thisinstrumentistheCompany'sequityinstrument.
(4)DerivativefinancialinstrumentsandembeddedderivativesTheCompany'sderivativefinancialinstrumentsincludeforwardforeignexchangecontracts.Initially,thefairvalueonthedatewhenthederivativetransactioncontractissignedshallbeusedformeasurement,andthefairvalueshallbeusedforsubsequentmeasurement.Derivativefinancialinstrumentswithpositivefairvaluearerecognizedasanasset,whilethosewithnegativefairvalueareindeedrecognizedasaliability.Anygainsorlossesarisingfromchangesinfairvaluethatdonotconformtotheprovisionsofhedgeaccountingaredirectlyincludedincurrentprofitandloss.Forhybridinstrumentscontainingembeddedderivatives,suchasthemaincontractisafinancialasset,therelevantprovisionsonclassificationoffinancialassetsshallapplytothehybridinstrumentsasawhole.Ifthemaincontractisnotafinancialasset,andthehybridinstrumentisnotmeasuredatfairvalueanditschangesareincludedincurrentprofitandlossforaccountingtreatment,theembeddedderivativeinstrumenthasnocloserelationshipwiththemaincontractintermsofeconomiccharacteristicsandrisks,andhasthesameconditionsastheembeddedderivativeinstrument,andtheseparateexistinginstrumentmeetsthedefinitionofderivativeinstrument,theembeddedderivativeinstrumentshallbeseparatedfromthehybridinstrumentandtreatedasaseparatederivativefinancialinstrument.Ifitisnotpossibletoseparatelymeasureembeddedderivativeinstrumentsatthetimeofacquisitionorthesubsequentbalancesheetdate,thehybridinstrumentsasawholearedesignatedasfinancialassetsorfinancialliabilitiesmeasuredatfairvalueandtheirchangesareincludedincurrentprofitandloss.
(5)FairvalueoffinancialinstrumentsSeeNoteV(11)forthemethodofdeterminingthefairvalueoffinancialassetsandliabilities.
(6)ImpairmentoffinancialassetsTheCompanyconductsimpairmentaccountingtreatmentforthefollowingitemsandconfirmsthelossprovisionbasedontheexpectedcreditlosses:
Financialassetsmeasuredatamortizedcost;Receivablesandcreditors'investmentsmeasuredatfairvalueandwhosechangesareincludedinothercomprehensiveincome;ContractassetsdefinedintheAccountingStandardsforBusinessEnterprisesNo.14-Revenue;Leasereceivables;Financialguaranteecontracts(exceptthosethataremeasuredatfairvalueandwhosechangesareincludedincurrentprofitandloss,thetransferoffinancialassetsdoesnotmeettheconditionsforderecognitionorcontinuetoinvolveinthetransferredfinancialassets).MeasurementofexpectedcreditlossExpectedcreditlossreferstotheweightedaverageofthecreditlossesoffinancialinstrumentsweightedbytheriskofdefault.CreditlossreferstothedifferencebetweenallcontractualcashflowsdiscountedattheoriginaleffectiveinterestrateandreceivableaccordingtothecontractandallcashflowsexpectedtobecollectedoftheCompany,i.e.thepresentvalueofallcashshortfalls.Consideringthereasonableandreliableinformationaboutpastevents,currentsituationandtheforecastoffutureeconomicsituation,
thecompanytakestheriskofdefaultastheweight,calculatestheprobabilityweightedamountofthepresentvalueofthedifferencebetweenthecashflowreceivablefromthecontractandthecashflowexpectedtobereceived,andconfirmstheexpectedcreditloss.TheCompanyseparatelymeasurestheexpectedcreditlossesoffinancialinstrumentsatdifferentstages.Ifthecreditriskoffinancialinstrumentshasnotincreasedsignificantlysincetheinitialrecognition,itisinthefirststage.TheCompanymeasuresthelossreserveaccordingtotheexpectedcreditlossinthenext12months;ifthecreditriskoffinancialinstrumentshasincreasedsignificantlysinceitsinitialrecognitionbutnocreditimpairmenthasoccurred,itisinthesecondstage.TheCompanymeasuresthelossreserveaccordingtotheexpectedcreditlossduringthewholedurationofthisinstrument;ifthefinancialinstrumenthassufferedcreditimpairmentsinceitsinitialrecognition,itisinthethirdstage.TheCompanymeasuresthelossreserveaccordingtotheexpectedcreditlossduringthewholedurationofthisinstrument.Forfinancialinstrumentswithlowcreditriskonthebalancesheetdate,theCompanyassumesthattheircreditriskhasnotincreasedsignificantlysincetheinitialrecognition,andmeasuresthelossreserveaccordingtotheexpectedcreditlossinthenext12months.Theexpectedcreditlossduringthewholedurationreferstotheexpectedcreditlosscausedbyallpossibledefaulteventsduringthewholeexpecteddurationoffinancialinstruments.Theexpectedcreditlossinthenext12monthsreferstotheexpectedcreditlosscausedbythepossibledefaulteventsoffinancialinstrumentswithin12months(ortheexpecteddurationiftheexpecteddurationoffinancialinstrumentsislessthan12months)afterthebalancesheetdate,whichispartoftheexpectedcreditlossinthewholeduration.Whenmeasuringtheexpectedcreditloss,thelongesttermthattheCompanyneedstoconsideristhelongestcontracttermthattheenterprisefacescreditrisk(includingtheoptiontorenewthecontract).TheCompanycalculatesinterestincomebasedonthebookbalancebeforedeductingimpairmentprovisionsandtheeffectiveinterestrateforfinancialinstrumentsinthefirstandsecondstagesandwithlowcreditrisk.Theinterestincomeshallbecalculatedaccordingtotheirbookbalanceminustheamortizedcostafterimpairmentprovisionandtheeffectiveinterestrateforfinancialinstrumentsinthethirdstage.Notesreceivable,accountsreceivableandcontractassetsTheCompanyalwaysmeasuresitslossreservesatanamountequivalenttotheexpectedcreditlossduringtheentiredurationfornotesreceivable,contractassetsandaccountsreceivable,regardlessofwhetherthereisanysignificantfinancingcomponent.Ifasinglefinancialassetcannotbeusedtoevaluatetheexpectedcreditlossinformationatareasonablecost,theCompanywilldividethenotesreceivableandaccountsreceivableintoportfolioonthebasisofthecreditriskfeatures,andcalculatetheexpectedcreditlossbasedontheportfolio.Thebasisfordeterminingtheportfolioisasfollows:
A.Notesreceivable
Notesreceivableportfolio1:bankacceptancebillsandL/CNotesreceivableportfolio2:commercialacceptancebillsB.Accountsreceivable
Accountsreceivableportfolio1:paymentnotoverdue(withcreditinsurance)Accountsreceivableportfolio2:paymentnotoverdue(withoutcreditinsurance)Accountsreceivableportfolio3:paymentoverdue(withcreditinsurance)Accountsreceivableportfolio4:paymentoverdue(withoutcreditinsurance)C.Contractassets
Contractassetsportfolio1:productsalesContractassetsportfolio2:engineeringconstructionFornotesreceivableandcontractassetsdividedintoportfolios,withreferencetohistoricalcreditlossexperience,combinedwithcurrentconditionsandpredictionsoffutureeconomicconditions,theCompanyhascalculatedexpectedcreditlossesthroughdefaultriskexposureandexpectedcreditlossratefortheentireduration.Foraccountsreceivabledividedintoportfolios,withreferencetohistoricalcreditlossexperience,combinedwithcurrentconditionsandpredictionsoffutureeconomicconditions,theCompanyhaspreparedacomparisontablebetweenthenumberofaging/overdue
daysofaccountsreceivableandtheexpectedcreditlossrateovertheentireduration,andhascalculatedtheexpectedcreditloss.OtherreceivablesTheCompanydividesotherreceivablesintoseveralportfoliosbasedonthefeaturesofcreditrisk,andcalculatestheexpectedcreditlossesonthebasisofthecombination.Thebasisfordeterminingtheportfolioisasfollows:
Otherreceivablesportfolio1:ReceivablesfromrelatedpartieswithinthescopeofconsolidationOtherreceivablesportfolio2:TaxrefundreceivableOtherreceivablesportfolio3:DepositreceivableandsecuritydepositOtherreceivablesportfolio4:otherreceivablesForotherreceivablesthataredividedintoportfolios,theCompanycalculatestheexpectedcreditlosswiththedefaultriskexposureandtheexpectedcreditlossratewithinthenext12monthsortheentireduration.Creditors'investmentandothercreditors'investmentForcreditors'investmentandothercreditors'investment,theCompanycalculatestheexpectedcreditbasedonthenatureoftheinvestment,aswellaskindsoftypesofcounterpartiesandriskexposures,thedefaultriskexposureandtheexpectedcreditlossratewithinthenext12monthsortheentiredurationloss.AssessmentonsignificantincreaseofcreditriskInordertodeterminetherelativechangesinthedefaultriskoffinancialinstrumentsduringtheirexpectedlifeandtoassesswhetherthecreditriskoffinancialinstrumentshasincreasedsignificantlysinceinitialrecognition,theCompanycomparesthedefaultriskoffinancialinstrumentsonthebalancesheetdatewiththedefaultriskontheinitialrecognitiondate.Whendeterminingwhetherthecreditriskhasrisengreatlysincetheinitialrecognition,theCompanyconsidersreasonableandreliableinformation(forward-lookinginformationinclusive)thatcanbeobtainedwithoutunnecessaryextracostsorefforts.TheinformationtheCompanyconsidersshallinclude:
Thedebtorfailstopaytheprincipalandinterestaccordingtothecontractexpirationdate;Theexternalorinternalcreditratings(ifany)offinancialinstruments,whichhaveoccurredorareexpected,deterioratesignificantly;Thedebtor’soperatingresults,whichhaveoccurredorareexpected,deterioratesignificantly;Existingorexpectedchangesintechnology,market,economyorlegalenvironmentwillleadtoagreatadverseeffectonthedebtor'sabilitytorepaytheCompany.Basedonthenatureoffinancialinstruments,theCompanyassesseswhetherthereisgreatriskincreditriskonthebasisofindividualfinancialinstrumentsorfinancialinstrumentportfolios.Duringassessmentbasedonfinancialinstrumentportfolios,theCompanycandividefinancialinstrumentsonthebasisofcommoncreditriskcharacteristics,suchasoverdueinformationandcreditriskratings.Incasethattheperiodoverdueexceeds30days,theCompanydeterminesthatthereisasignificantincreaseinthecreditriskoffinancialinstruments.FinancialassetswithdepreciationofcreditTheCompanyassesses,onthebalancesheetdate,whetherthereisanycreditimpairmenttofinancialassetsmeasuredatamortizedcostandcreditors'investmentmeasuredatfairvalueandwhosechangesareincludedinothercomprehensiveincome.Incaseofoneormoreeventsthatadverselyaffecttheexpectedfuturecashflowofafinancialassetoccur,thefinancialassetwillbecomefinancialassetswithdepreciationofcredit.Theobservableinformationbelowcanbetreatedasevidenceforcreditimpairmenttofinancialassets:
Theissuerordebtoriscaughtinaseriousfinancialdifficulty;Thedebtorbreachestheagreementofcontract,suchasdefaultoroverduepaymentofinterestorprincipal,orotherdefault;Duetoeconomicorcontractualconsiderationsrelatedtothedebtor'sfinancialdifficulties,theCompanygivesconcessionstothedebtor;andtheconcessionswillnotbemadeunderanyothercircumstances;Thereliesagreatprobabilityofbankruptcyorotherfinancialrestructuringforthedebtor;Theissuerordebtoriscaughtinfinancialdifficulties,whichleadstothedisappearanceoftheactivemarketofthefinancialasset;
PresentationofexpectedcreditlossprovisionTheCompanyremeasuresexpectedcreditlossesoneachbalancesheetdatetoreflectthechangesinthecreditriskoffinancialinstrumentssinceinitialrecognition;theincreaseorreversalamountofthelossreserveformedtherefromshallbeincludedinthecurrentprofitandlossasimpairmentlossesorgains.Forfinancialassetsmeasuredatamortizedcost,thelossallowanceoffsetsthecarryingamountofthefinancialassetlistedinthebalancesheet;forcreditors’investmentthataremeasuredatfairvalueanditschangesareincludedinothercomprehensiveincome,theCompanyrecognizesitslossreserveinothercomprehensiveincomeandwillnotoffsetthecarryingamountofthefinancialasset.Write-offsIncasethattheCompanyfailstoreasonablyexpectthecontractcashflowofthefinancialassettoberecoveredinafullorpartialscale,thebookbalanceofthefinancialassetwillbewrittenoffdirectly.Suchwrite-downsmayconstitutethederecognitionforrelatedfinancialassets.ThissituationoccursfrequentlywhentheCompanydeterminesthatthedebtordoesnothaveanyassetsoranysourceofincometogeneratesufficientcashflowtorepaytheamountthatwillbewrittenoff.However,inaccordancewiththeproceduresforrecoveringduepaymentsoftheCompany,thewritten-offfinancialassetsmaystillbeaffectedbytheexecutionactivities.Incasethatthefinancialassetwrittenoffisrecoveredlater,itshallbeincludedinthecurrentprofitandlossasthereversaloftheimpairmentloss.
(7)TransferoffinancialassetsThetransferoffinancialassetsreferstothetransferordeliveryoffinancialassetstoanotherparty(transferee)otherthantheissuerofthefinancialasset.IftheCompanyhastransferredalmostalltherisksandrewardsoftheownershipoffinancialassetstothetransferee,derecognizethefinancialasset;ifitretainsalmostalltherisksandrewardsoftheownershipoffinancialassets,thefinancialassetwillnotbederecognized.IftheCompanyhasneithertransferrednorretainedalmostalltherisksandrewardsoftheownershipoffinancialassets,itshallbedealtwithinthefollowingsituations:ifthecontrolofthefinancialassetisabandoned,theconfirmationofthefinancialassetshallbeterminatedandthegeneratedassetsandliabilitiesshallbeconfirmed;Ifthefinancialassetsarecontrolled,therelevantfinancialassetsshallberecognizedaccordingtotheextentoftheircontinuedinvolvementinthetransferredfinancialassets,andtherelevantliabilitiesshallberecognizedaccordingly.
(8)OffsettingfinancialassetsandfinancialliabilitiesWhentheCompanyhasalegalrightthatiscurrentlyenforceabletosetofftherecognizedfinancialassetsandfinancialliabilities,andintendseithertosettleonanetbasis,ortorealizethefinancialassetandsettlethefinancialliabilitysimultaneously,afinancialassetandafinancialliabilityshallbeoffsetandthenetamountispresentedinthebalancesheet.Exceptfortheabovecircumstances,financialassetsandfinancialliabilitiesshallbepresentedseparatelyinthebalancesheetandshallnotbeoffset.
11.MeasurementofFairValue
Fairvaluereferstothepricethatmarketparticipantscanreceivefromsalesofaassetorshallpayfortransferofaliabilityintheorderlytransactionthatoccursonthemeasurementdate.TheCompanymeasuresrelatedassetsorliabilitiesatfairvalue,assumingthattheorderlytransactionofsellingassetsortransferringliabilitiesisconductedinthemainmarketofrelatedassetsorliabilities;ifthereisnomainmarket,theCompanyassumesthatthetransactionisconductedinthemostbeneficialmarket.Themainmarket(orthemostfavorablemarket)isthetradingmarketthattheCompanycanenteronthemeasurementdate.TheCompanyusestheassumptionsusedbymarketparticipantstomaximizetheireconomicbenefitswhenpricingtheassetorliability.Forfinancialassetsorfinancialliabilitieswithactivemarkets,theCompanyusesthequotationinactivemarketstodetermineitsfairvalue.Ifthereisnoactivemarketforfinancialinstruments,theCompanyusesvaluationtechniquestodetermineitsfairvalue.
Whenmeasuringnon-financialassetsatfairvalue,theabilityofmarketparticipantstobestusetheassetforgeneratingeconomicbenefits,ortheabilitytoselltheassettoothermarketparticipantsthatcanbestusetheassettogenerateeconomicbenefitsshallbeconsidered.TheCompanyadoptsvaluationtechniquesthatareapplicableinthecurrentsituationandhavesufficientavailabledataandotherinformationtosupportit.Priorityisgiventousingrelevantobservableinputvalues.Onlywhenobservableinputvalues??areunavailableorarenotfeasibletoobtain,theunobservableinputvaluescanbeused.Forassetsandliabilitiesmeasuredordisclosedatfairvalueinthefinancialstatements,thefairvaluehierarchytowhichtheybelongisdeterminedbasedonthelowestlevelinputvaluethatisimportanttothefairvaluemeasurementasawhole:thefirstlevelinputvalueistheunadjustedquotationofthesameassetsorliabilitiesabletobeobtainedinanactivemarketonthemeasurementdate;thesecondlevelinputvalueisthedirectlyorindirectlyobservableinputvalueoftherelevantassetorliabilityexceptthefirstlevelinputvalue;thethirdlevelinputvalueisunobservableinputvalueofrelatedassetsorliabilities.Oneachbalancesheetdate,theCompanyreassessedtheassetsandliabilitiescontinuouslymeasuredatfairvalueconfirmedinthefinancialstatementstodeterminewhetherthereisatransitionamonglevelsoffairvaluemeasurement.
12.Inventory
(1)ClassificationInventoriesmainlyincluderawmaterials,work-in-progress,stockproducts,productsprocessedonentrustmentandetc.
(2)ValuationmethodofinventoriesacquiringandissuingInventoriesshallbemeasuredatactualcostwhenacquired,andthecostoftheinventoriesincludingtheprocurementcost,processingcostandothercosts.Greyyarn,dyedyarn,andplusmaterialshallbemeasuredatfirst-infirst-outmethodwhenacquiredanddelivered;otherinventoriesshallbemeasuredaspertheweightedaveragemethod
(3)BasisfordeterminingnetrealizablevalueofinventoriesandprovisionmethodsfordeclineinvalueofinventoriesNetrealizablevalueistheestimatedsellingpriceintheordinarycourseofbusinesslesstheestimatedcostsofcompletion,theestimatedcostsnecessarytomakethesaleandrelevanttaxes.Netrealizablevalueisdeterminedonthebasisofclearevidenceobtained,andtakesintoconsiderationthepurposeofholdinginventoriesandeffectofpostbalancesheetevents.Atthebalancesheetdate,inventoriesaremeasuredatthelowerofthecostandnetrealizablevalue.Ifthenetrealizablevalueisbelowthecostofinventories,aprovisionfordeclineinvalueofinventoriesismade.Theprovisionforinventoriesdeclineinvalueisdeterminedbythedifferenceofthecostofindividualitemlessitsrealizablevalue.Aftertheprovisionfordeclineinvalueofinventoriesismade,ifthecircumstancesthatpreviouslycausedinventoriestobewrittendownbelowcostnolongerexistsothatthenetrealizablevalueofinventoriesishigherthantheircost,theoriginalprovisionfordeclineinvalueisreversedandthereversalisincludedinprofitorlossfortheperiod.
(4)Theperpetualinventorysystemismaintainedforstocksystem.
(5)Amortizationmethodofthelow-valueconsumptiongoodsandpackingarticlesFortheLow-valueconsumptiongoodsandthepackingarticlesshouldbeamortizedbyone-offamortizationmethodwhenconsuming.
13.ContractCostsContractcostincludestheincrementalcostincurredforacquiringcontractandcontractperformancecost.TheincrementalcostincurredforacquiringcontractreferstothecostthatwillnotoccuriftheCompanyhasnotacquiredcontract(forexample,salescommission).Ifthecostisexpectedtoberecovered,theCompanyregardsitascontractacquiringcostandconfirmsitasanasset.TheexpensesincurredbytheCompanyforacquiringcontract,otherthantheincrementalcostexpectedtoberecovered,areincludedinthecurrentprofitsandlossesatthetimeofoccurrence.Ifthecostincurredforperformanceofcontractdoesnotbelongtoinventoryandotherscopeofothercorporateaccountingstandards
andmeetsthefollowingconditions,theCompanywillregarditascontractperformancecostandconfirmitasanasset:
①Thecostisdirectlyrelatedtoacopyofcontractcurrentlyacquiredorexpectedtobeacquired,includingdirectlabor,directmaterials,manufactureexpenses(orsimilarexpenses),costdeterminedtobeundertakenbythecustomerandothercostincurredduetothecontract;②ThecostincreasestheresourcesoftheCompanythatwillbeusedforperformanceofcontractobligationsinthefuture;③Thecostisexpectedtoberecovered.Theassetsconfirmedbythecontractacquiringcostandtheassetsconfirmedbythecontractperformancecost(“assetsrelatedtocontractcost”)areamortizedaccordingtothesamebasisasconfirmationofgoodsorserviceincomerelatedtotheassetandareincludedinthecurrentprofitsandlosses.Iftheamortizationtermdoesnotexceedoneyear,itwillbeincludedinthecurrentprofitsandlossesatthetimeofoccurrence.Whenthebookvalueofanassetrelatedtocontractcostishigherthanthedifferencebetweenthefollowingtwoitems,theCompanyaccruesprovisionforimpairmenttotheexcessivepartandconfirmsitasimpairmentloss:
①TheremainingconsiderationthattheCompanyexpectstoacquirefromtransferofgoodsorservicesrelatedtotheasset;②Thecostthatwilloccurfortransferofsuchrelatedgoodsorservicesasestimated.Thecontractperformancecostconfirmedasasset,ifamortizationtermdoesnotexceedoneyearoranormalbusinesscycleatthetimeofinitialconfirmation,islistedintheitemof“inventory”;ifamortizationtermexceedsoneyearoranormalbusinesscycleatthetimeofinitialconfirmation,islistedintheitemof“othernon-currentassets”.Thecontractacquiringcostthatisconfirmedasasset,ifamortizationtermdoesnotexceedoneyearoranormalbusinesscycleatthetimeofinitialconfirmation,islistedintheitemof“othercurrentassets”;ifamortizationtermexceedsoneyearoranormalbusinesscycleatthetimeofinitialconfirmation,islistedintheitemof“othernon-currentassets”.
14.Long-termEquityInvestments
Long-termequityinvestmentsincludeequityinvestmentsinsubsidiaries,jointventuresandassociatedenterprises.TheinvesteethattheCompanyisabletoexertsignificantinfluenceisanassociatedenterpriseoftheCompany.
(1)DeterminationofinitialinvestmentcostLong-termequityinvestmentthatformsabusinesscombination:Long-termequityinvestmentobtainedbybusinesscombinationunderthesamecontrol,onthemergerdate,basedonthebookvalueshareofthemergedparty’sowners’equityinthefinalcontroller’sconsolidatedfinancialstatementsasinvestmentcost;Thelong-termequityinvestmentacquiredbyabusinesscombinationshallbetheinvestmentcostofthelong-termequityinvestmentaccordingtothecostofthecombination.Forlong-termequityinvestmentsobtainedbyothermeans:thelong-termequityinvestmentobtainedbypayingcashshallbetheinitialinvestmentcostaccordingtotheactualpurchaseprice;thelong-termequityinvestmentobtainedbyissuingequitysecuritiesshallbetheinitialinvestmentcostofthefairvalueoftheequitysecuritiesissued.
(2)SubsequentmeasurementandprofitandlossconfirmationmethodInvestmentinsubsidiariesisaccountedforusingthecostmethodunlesstheinvestmentmeetstheconditionsforholdingforsale;investmentinassociatesandjointventuresisaccountedforusingtheequitymethod.Forlong-termequityinvestmentsthatareaccountedforusingthecostmethod,inadditiontothecashdividendsorprofitsthathavebeendeclaredbutnotyetincludedintheactualpaymentorconsiderationincludedintheinvestment,thecashdividendsorprofitsdeclaredbytheinvestedentityarerecognizedasinvestmentincomeandrecordedintothecurrentprofitandloss.Forlong-termequityinvestmentsaccountedforusingtheequitymethod,wheretheinitialinvestmentcostisgreaterthanthefairvalueshareoftheinvestee’sidentifiablenetassetsatthetimeofinvestment,theinvestmentcostofthelong-termequityinvestmentisnotadjusted;whentheinitialinvestmentcostislessthantheinvestment,theinvestee’sIfthefairvalueshareofnetassetsisidentified,thebookvalueofthelong-termequityinvestmentisadjusted,andthedifferenceisincludedinthecurrentprofitandlossoftheinvestment.
Whenusingtheequitymethodofaccounting,theinvestmentincomeandothercomprehensiveincomearerecognizedseparatelyaccordingtotheshareofnetprofitandlossandothercomprehensiveincomerealizedbytheinvestedunitthatshouldbeenjoyedorshared,andthebookvalueofthelong-termequityinvestmentisadjustedatthesametime;Thedistributionofprofitsorcashdividendsshouldbecalculatedtoreducethebookvalueoflong-termequityinvestment;theinvestee'sotherchangesinowner'sequityotherthannetprofitandloss,othercomprehensiveincomeandprofitdistribution,adjustthebookvalueoflong-termequityinvestmentandIncludedincapitalreserves(othercapitalreserves).Whenconfirmingtheshareoftheinvestee’snetprofitorloss,basedonthefairvalueoftheinvestee’sidentifiableassetsatthetimeofinvestment,andinaccordancewiththeCompany’saccountingpoliciesandaccountingperiod,thenetprofitoftheinvesteeConfirmaftermakingadjustments.Iftheadditionalinvestmentandotherreasonscanexertsignificantinfluenceontheinvesteeorexercisejointcontrolbutdonotconstitutecontrol,ontheconversiondate,thesumofthefairvalueoftheoriginalequityplustheadditionalinvestmentcostwillbeusedastheinitialaccountingfortheequitymethodcostofinvestment.Iftheoriginalequityisclassifiedasnon-tradingequityinstrumentinvestmentmeasuredatfairvaluewhosechangesareincludedinothercomprehensiveincome,therelevantoriginalandaccumulativechangesinfairvalueincludedinothercomprehensiveincomeshallbetransferredtoretainedearningswhenaccountingbyequitymethod.Ifthejointcontrolorsignificantinfluenceontheinvestedunitislostduetothedisposalofpartoftheequityinvestment,etc.,theremainingequityafterthedisposalshallbechangedtotheAccountingStandardsforBusinessEnterprisesNo.22-RecognitionandMeasurementofFinancialInstrumentsisperformed,andthedifferencebetweenfairvalueandbookvalueisincludedinthecurrentprofitandloss.Othercomprehensiveincomerecognizedbytheoriginalequityinvestmentduetotheequitymethodofaccountingshallbeaccountedforonthesamebasisastheinvestee’sdirectdisposalofrelatedassetsorliabilitieswhentheequitymethodofaccountingisterminated;changesinotherowners’equityrelatedtotheoriginalequityinvestmentTransfertocurrentprofitandloss.Ifthecontroloftheinvestedunitislostduetothedisposalofpartoftheequityinvestment,iftheremainingequityafterthedisposalcanexercisejointcontrolorexertsignificantinfluenceontheinvestedunit,theequitymethodisusedforaccountingandtheremainingequityistreatedasWhenacquiring,theequitymethodisadoptedforadjustment;iftheremainingequityafterdisposalcannotexercisejointcontrolorexertsignificantinfluenceontheinvestee,theaccountingshallbechangedaccordingtotherelevantprovisionsof"AccountingStandardsforBusinessEnterprisesNo.22-RecognitionandMeasurementofFinancialInstrumentsThedifferencebetweenthefairvalueandthebookvalueonthedateoflossofcontrolisincludedinthecurrentprofitandloss.Iftheshareholdingratioofthecompanydecreasesduetothecapitalincreaseofotherinvestors,therebylosingcontrolbutbeingabletoexercisejointcontrolorexertsignificantinfluenceontheinvestee,thenewshareholdingratioshallbeusedtoconfirmthatthecompanyshouldenjoythecapitalincreaseoftheinvestee.Thedifferencebetweentheincreaseinshareandtheincreaseintheshareofnetassetsandtheoriginalbookvalueofthelong-termequityinvestmentcorrespondingtothedecreaseintheproportionoftheshareholdingthatshouldbecarriedforwardareincludedinthecurrentprofitandloss;Thatis,adjustmentsaremadeusingtheequitymethodofaccounting.TheunrealizedinternaltransactiongainsandlossesthatoccurbetweentheCompanyandassociatesandjointventuresarecalculatedaccordingtotheshareholdingratioandareattributedtotheCompany,andtheinvestmentgainsandlossesarerecognizedonthebasisofoffset.However,theunrealizedinternaltransactionlossesincurredbytheCompanyandtheinvesteearetheimpairmentlossesofthetransferredassetsandshallnotbeoffset.
(3)DeterminethebasisforjointcontrolandsignificantinfluenceontheinvestedunitJointcontrolreferstothecommoncontrolofanarrangementinaccordancewiththerelevantagreement,andrelatedactivitiesofthearrangementmustbeagreeduponbythepartiessharingcontrolrightsbeforetheycanmakedecisions.Whenjudgingwhetherthereisjointcontrol,firstdeterminewhetherallparticipantsoracombinationofparticipantscollectivelycontrolthearrangement,andsecondlydeterminewhetherthedecision-makingrelatedactivitiesofthearrangementmustbeunanimouslyagreedbytheparticipantswhocollectivelycontrolthearrangement.IfallparticipantsoraCompanyofparticipantsmustactinconcerttodeterminetherelevantactivitiesofanarrangement,itisconsideredthatallparticipantsoraCompanyofparticipantscollectivelycontrolthearrangement;ifthereisacombinationoftwoormoreparticipantscancollectivelyControllinganarrangementdoesnot
constitutejointcontrol.Whenjudgingwhetherthereisjointcontrol,theprotectiverightsenjoyedarenotconsidered.Significantinfluencemeansthattheinvestorhastherighttoparticipateinthedecision-makingofthefinancialandoperatingpoliciesoftheinvestedunit,butcannotcontrolorjointlycontroltheformulationofthesepolicieswithotherparties.Whendeterminingwhetheritcanexertsignificantinfluenceontheinvestedunit,considerthattheinvestordirectlyorindirectlyholdsthevotingsharesoftheinvestedunitandthecurrentexecutablepotentialvotingrightsheldbytheinvestorandotherpartiesareassumedtobeconvertedintotheinvestedunitAftertheequityofthecompany,theimpactincludesthecurrentconvertiblewarrants,stockoptionsandconvertiblecorporatebondsissuedbytheinvestee.WhentheCompanydirectlyorindirectlyownsmorethan20%(including20%)butlessthan50%ofthevotingsharesoftheinvestedunit,itisgenerallyconsideredtohaveasignificantimpactontheinvestedunit,unlessthereisclearevidencethatsuchcircumstancescannotparticipateintheproductionandoperationdecisionsoftheinvestedunit,anddoesnothaveasignificantimpact;whentheCompanyownslessthan20%(excluding)votingrightsoftheinvestedunit,itgenerallydoesnotconsiderittohaveasignificantimpactontheinvestedunitunlessthereisclearevidencethatUnderthesecircumstances,itcanparticipateintheproductionandoperationdecisionsoftheinvestedunitandhaveasignificantimpact.
(4)ImpairmenttestmethodandimpairmentprovisionmethodFortheinvestmentsinsubsidiaries,associatesandjointventures,themethodofaccruingassetimpairmentisshownintheNoteV-22.
15.InvestmentPropertyMeasurementmodelofinvestmentrealestateCostingmethodmeasurementDepreciationoramortizationmethodTheinvestmentrealestatereferstotherealestategainingtherentorcapitalappreciationorboth.Itincludesrentedlanduseright,holdinglanduserighttobetransferredaftertheappreciationandrentedbuilding,etc.Theinvestmentrealestateismeasuredinitiallyaccordingtothecostandwithdrawndepreciationoramortizationasregulationsoffixedassetsorintangibleassets.TheCompanyadoptsthecostmodetoconductthesubsequentmeasurementontheinvestmentrealestate,seetheNoteV-22forthemethodofwithdrawingassetimpairmentprovision.Thedifferencebetweenthedisposalincomeofinvestmentrealestatesales,transfer,scrapordamageafterdeductingitsbookvalueandrelatedtaxesisincludedinthecurrentprofitandloss.
16.FixedAssets
(1)ConditionsforRecognitionTheterm“fixedassets”referstothetangibleassetsthatsimultaneouslypossessthefeaturesasfollows:(a)theyareheldforthesakeofproducingcommodities,renderinglaborservice,rentingorbusinessmanagement;and(b)theirusefullifeisinexcessofonefiscalyear.ThefixedassetsareonlyrecognizedwhentherelevanteconomicbenefitsprobablyflowintheCompanyanditscostcouldbereliablemeasured.ThefixedassetsoftheCompanyareinitiallymeasuredattheactualcostatthetimeofacquisition.
ThesubsequentexpendituresrelatedtothefixedassetsshallbeincludedinthecostofthefixedassetswhentheeconomicbenefitsrelatedtothefixedassetsarelikelytoflowintotheCompanyandthecostscanbemeasuredreliably.Thedailyrepairexpensesoffixedassetsthatdonotmeettheconditionsofcapitalizedsubsequentexpendituresoffixedassetsshallbeincludedinthecurrentprofitandlossorthecostofrelevantassetsaccordingtothebeneficiarieswhenincurred.Thebookvalueofthereplacedpartshallbeterminated.
(2)DepreciationMethods
| Categoryoffixedassets | Method | Usefullife | Salvagevalue(%) | Annualdeprecation(%) |
| Housingandbuilding | Averagemethodofusefullife | 5-30 | 0-10 | 20.00-3.00 |
| Machineryequipments | Averagemethodofusefullife | 10-18 | 0-10 | 10.00-5.00 |
| Transportationvehicle | Averagemethodofusefullife | 5 | 0-10 | 20.00-18.00 |
| Electronicequipmentsandothers | Averagemethodofusefullife | 5 | 0-10 | 20.00-18.00 |
(3)RecognitionBasis,PricingandDepreciationMethodofFixedAssetunderFinanceLease
WhenthefixedassetsleasedbytheGroupmeetoneormoreofthefollowingcriteria,itisrecognizedasfixedassetunderfinancelease:a)Whentheleasetermexpires,theownershipoftheleasedassetsistransferredtotheGroup.b)TheGrouphastheoptiontopurchaseleasedassets,andthepurchasepriceconcludedisexpectedtobemuchlowerthanthefairvalueoftheleasedassetswhentheoptionisexercised,soitcanbereasonablydeterminedthattheGroupwillexercisethisoptionontheleasestartdate.c)Eveniftheownershipoftheassetisnottransferred,theleaseperiodaccountsformostoftheservicelifeoftheleasedasset.d)ThepresentvalueoftheGroup'sminimumleasepaymentontheleasestartdateisalmostequivalenttothefairvalueoftheleasedassetontheleasestartdate.e)TheleasedassetsareofaspecialnatureandonlytheGroupcanleveragethemwithoutmajorrenovation.Thefixedassetsunderfinanceleaseshallbethebookedvalueatthelowerofthefairvalueoftheleasedassetsontheleasestartdateandthepresentvalueoftheminimumleasepayment.Theminimumleasepaymentistakenasthebookvalueoflong-termpayables,andthedifferenceistakenasunrecognizedfinancingexpenses.Theinitialdirectcostssuchashandlingcharges,attorney'sfees,travelexpenses,andstamptaxesthatincurredduringtheleasenegotiationandsigningoftheleasecontractareincludedinthevalueoftheleasedasset.Unrecognizedfinancingexpensesareallocatedleveragingtheeffectiveinterestratemethodineachperiodoftheleaseperiod.Fixedassetunderfinanceleaseadoptsthesamepolicyasitsownfixedassetstowithdrawdepreciationofleasedassets.Ifitcanbereasonablydeterminedthattheownershipoftheleasedassetwillbeacquiredattheendoftheleaseperiod,depreciationwillbeaccruedwithintheusefullifeoftheleasedasset;ifitcannotbereasonablydeterminedthattheownershipoftheleasedassetcanbeacquiredattheendoftheleaseperiod,thedepreciationshallbeaccruedintheshorterperiodbetweentheleaseperiodandtheresiduallifeoftheleasedasset.
(4)OtherNotesAttheendofeachyear,reviewiscarriedoutbytheGroupfortheservicelife,estimatednetresidualvalueanddepreciationmethodoffixedassets.Ifthereisanydifferencebetweentheexpectedservicelifeandtheoriginalestimatedservicelife,theservicelifeoffixedassetswillbeadjusted;ifthereisanydifferencebetweentheexpectednetresidualvalueandtheoriginalestimatednetresidualvalue,theexpectednetresidualvaluewillbeadjusted.
MajorrepairexpensesincurredbytheGroupintheregularinspectionoffixedassetsareincludedinthecostoffixedassetsifevidenceshowsthattheymeettherecognitionconditionsoffixedassets,andthosefailtomeettherecognitionconditionsoffixedassetsareincludedinthecurrentprofitandloss.Fixedassetsatintervalsofregularmajorrepairsshallbedepreciatedasaccrued.
17.ConstructioninProgressConstructioninprocessismeasuredatactualcost.Actualcostcomprisesconstructioncosts,borrowingcoststhatareeligibleforcapitalizationbeforethefixedassetsbeingreadyfortheirintendedusandotherrelevantcosts.Constructioninprocessistransferredtofixedassetswhentheassetsarereadyfortheirintendeduse.SeethedetailsoftheimpairmentprovisionwithdrawalmethodoftheconstructioninprogresstoNotesV-22.
18.EngineeringMaterialsEngineeringmaterialsoftheCompanyrefertovariousmaterialspreparedforprojectsunderconstruction,includingengineeringmaterials,equipmentnotyetinstalled,toolsandinstrumentspreparedforproduction,etc.Thepurchasedengineeringmaterialswillbemeasuredaccordingtothecost.Thereceivedengineeringmaterialswillbetransferredtotheprojectunderconstruction,andtheremainingengineeringmaterialsafterthecompletionoftheprojectwillbestoredasinventory.PleaserefertoNoteV(22)forthemethodofprovisionforimpairmentofassetsforengineeringmaterials.Inthebalancesheet,theendingbalanceofengineeringmaterialsislistedinthe"projectunderconstruction"item.
19.BorrowingCosts
(1)ConfirmationprincipleofCapitalizedBorrowingExpenseTheborrowingexpensesincurredbytheCompany,ifcandirectlybelongtoacquisition,constructionorproductionofassetsmeetingcapitalizationconditions,arecapitalizedandincludedinrelevantassetcost;otherborrowingexpensesareconfirmedasexpenseaccordingtoitsamountatthetimeofoccurrenceandincludedinthecurrentprofitsandlosses.Iftheborrowingexpensesmeetthefollowingconditions,capitalizationstarts:
①Assetsexpenditurehasoccurred,andassetexpenditureincludestheexpenditureoccurringintheformofpaymentincash,transferringnoncashassetorassuminginterestbearingdebtforacquiring,constructingorproducingtheassetsmeetingcapitalizationconditions;②Borrowingexpenseshaveoccurred;③Theacquisition,constructionorproductionactivitiesrequiredformakingassetsusableorsaleableasintendedhavestarted.
(2)CapitalizationperiodofborrowingexpensesWhentheCompanyacquires,constructsorproducesassets,whichmeetcapitalizationconditionsandreachtheintendedusableorsaleablestatus,theborrowingexpensesstopcapitalization.Theborrowingexpensesthatoccuraftertheassetsmeetingcapitalizationconditionsreachtheintendedusableorsaleablestatusareconfirmedasexpensesaccordingtoitsamountatthetimeofoccurrenceandareincludedinthecurrentprofitsandlosses.Iftheassetsmeetingcapitalconditionsgenerateimproperinterruptioninthecourseofacquisition,constructionorproduction,andtheinterruptiontimecontinuouslyexceedsthreemonths,capitalizationofborrowingexpensessuspends;theborrowingexpensesinthenormalinterruptionperiodarecontinuallycapitalized.
(3)CapitalizationrateofborrowingexpensesandcalculationmethodofcapitalizedamountTheinterestexpensesofspecialborrowingactuallyoccurringinthecurrentperiod,minustheinterestincomeoftheunusedborrowedcapitalobtainedfromdepositinginbankorthegainontemporaryinvestment,arecapitalized;forcommonborrowing,theweightedaverageofassetexpenditureofthepartthatthecumulativeassetexpenditureexceedsspecialborrowingismultipliedbythe
capitalizationrateoftheoccupiedcommonborrowingtodeterminecapitalizationamount.Capitalizationrateiscalculatedanddeterminedaccordingtotheweightedaveragerateofcommonborrowing.Intheperiodofcapitalization,theexchangedifferenceofspecialborrowinginforeigncurrencyisfullycapitalized;theexchangedifferenceofspecialborrowinginforeigncurrencyisincludedinthecurrentprofitsandlosses.
20.Right-of-useAssets
(1)Recognitionconditionsforright-of-useassetsTheterm"right-of-useassets"referstotherightofthelesseetousetheleasedassetsduringtheleaseterm.Atthestartdateoftheleaseterm.TheCompanyinitiallymeasurestheright-of-useassetsatcost.Thecostincludes:a)theinitialmeasurementamountofleaseobligations;b)theleasepaymentamountpaidonorpriortotheinceptionofthelease(lesstherelatedamountofleaseincentivesalreadyenjoyedifany);c)theinitialdirectcostincurredbythelessee;andd)theanticipatedcostofdismantlingandremovingtheleaseholdproperty,restoringthesitewheretheleaseholdpropertyislocated,orbringingtheleaseholdpropertybacktothestateagreeduponintheleaseterms.TheCompanymakesprovisionfordepreciationofright-of-useassetswiththecompositelifemethod.WhereitcanbereasonablycertainthattheCompanywillobtainownershipoftheleasedassetsattheexpiryoftheleaseterm,theleasedassetsaredepreciatedovertheexpectedresidualservicelife;whereitcannotbereasonablycertainthattheCompanycanobtainownershipoftheleasedassetsattheendoftheleaseterm,theleasedassetsaredepreciatedattheshorteroftheleasetermandtheresidualservicelifeoftheleasedassets.TheCompanywilldeterminetheimpairmentofright-of-useassetsandconductaccountingtreatmentinaccordancewithrelevantprovisionsoftheAccountingStandardsforBusinessEnterprisesNo.8-AssetImpairment.
21.IntangibleAssets
(1)PricingMethod,UsefulLifeandImpairmentTestTheintangibleassetsoftheCompanyincludelanduseright,patentright,etc.Intangibleassetsareinitiallymeasuredatcost,andtheirservicelifeisanalyzedanddeterminedwhenintangibleassetsareacquired.Iftheservicelifeofintangibleassetsislimited,theintangibleassetsshallbeamortizedbythemethodthatcanreflecttheexpectedrealizationmethodoftheeconomicbenefitsrelatedtotheassetswithintheexpectedservicelifesincetheyareavailableforuse.Thestraight-linemethodshallbeusedforamortizationifnoexpectedrealizationmethodcanbedeterminedreliably.Intangibleassetswithuncertainservicelifeshallnotbeamortized.Theamortizationmethodofintangibleassetswithlimitedservicelifeisasfollows:
| Category | Servicelife | Amortizationmethod | Note |
| Landuseright | Stipulatedinthelandcertificate | Methodofline | |
| Patentuseright | 10years | Methodofline | |
| Softwareuseright | 1-3years | Methodofline | |
| Branduseright | 10years | Methodofline |
Attheendofeachyear,theCompanyreviewstheservicelifeandamortizationmethodofintangibleassetswithlimitedservicelife.Iftheestimateisdifferentfromthepreviousone,theoriginalestimateshallbeadjustedandtreatedasperaccountingestimatechange.Ifitisestimatedthatanintangibleassetcannolongerbringfutureeconomicbenefitstotheenterpriseonthedateofbalancesheet,thiscarryingamountoftheintangibleassetshallbetransferredintothecurrentprofitandloss.ThemethodofwithdrawingimpairmentonintangibleassetswasstatedintheNoteV-22.
(2)AccountingPolicyforInternalResearchandDevelopmentExpenditures
Theexpendituresforinternalresearchanddevelopmentprojectsofanenterpriseshallbeclassifiedintoresearchexpendituresanddevelopmentexpenditures.Theresearchexpendituresshallberecordedintotheprofitorlossforthecurrentperiod.Thedevelopmentexpenditurescanbecapitalizedonlywhentheysatisfythefollowingconditionssimultaneously:①Itisfeasibletechnicallytofinishintangibleassetsforuseorsale;②Itisintendedtofinishanduseorselltheintangibleassets;③Theusefulnessofmethodsforintangibleassetstogenerateeconomicbenefitsshallbeproved,includingbeingabletoprovethatthereisapotentialmarketfortheproductsmanufacturedbyapplyingtheintangibleassetsorthereisapotentialmarketfortheintangibleassetsitselfortheintangibleassetswillbeusedinternally;④Itisabletofinishthedevelopmentoftheintangibleassets,andabletouseorselltheintangibleassets,withthesupportofsufficienttechnologies,financialresourcesandotherresources;⑤Thedevelopmentexpendituresoftheintangibleassetscanbereliablymeasured.Thedevelopmentexpendituresshallberecordedintoprofitorlossforthecurrentperiodwhentheydon’tsatisfythefollowingconditions.TheresearchanddevelopmentprojectoftheCompanywillenterthedevelopmentstageaftermeetingtheaboveconditionsandtheprojectisapprovedandinitiatedthroughtechnicalfeasibilityandeconomicfeasibilitystudy.Thecapitalizedexpenditureinthedevelopmentstageislistedasexpenditurefordevelopmentonthebalancesheet,anditwillbetransferredtointangibleassetsfromthedatewhentheprojectreachestheintendedpurpose.
22.ImpairmentofLong-termAssets
Forlongtermequityinvestmentinsubsidiaries,associatedenterprisesandjointventures,investmentrealestatewhichfollow-upmeasurementiscarriedoutbycostpattern,fixedassets,constructioninprogress,intangibleassets,businessreputation,etc.(excludinginventory,deferredincometaxassets,financialassets),theimpairmentofassetsshallbedeterminedaccordingtothefollowingmethods:
Onthedateofthebalancesheet,determinationshallbemadetoseewhetherthereisanysignofpossibleimpairmentofassets.Ifthereis,theCompanywillestimateitsrecoverableamountandconductimpairmenttest.Forgoodwill,intangibleassetswithuncertainservicelifeandintangibleassetsthathavenotreachedtheserviceablestateduetobusinessmerger,impairmenttestshallbecarriedouteveryyearregardlessofwhetherthereisanysignofimpairment.Therecoverableamountisdeterminedaccordingtothenetamountofthefairvalueoftheassetminusthedisposalexpensesandthepresentvalueoftheexpectedfuturecashflowoftheasset,thehigheramountshallbeprevail.TheCompanyestimatestherecoverableamountonthebasisofasingleasset.Ifitisdifficulttoestimatetherecoverableamountofasingleasset,therecoverableamountoftheassetgroupshallbedeterminedbasedontheassetgrouptowhichtheassetbelongs.Theassetgroupisdeterminedonthebasisofwhetherthemaincashinflowgeneratedbytheassetgroupisindependentofthecashinflowofotherassetsorassetgroups.Whentherecoverableamountofanassetorassetgroupislowerthanitscarryingamount,thegroupwillwritedownitscarryingamounttotherecoverableamount,andthewrittendownamountwillbeincludedinthecurrentprofitandloss,andthecorrespondingassetimpairmentreservewillbeaccrued.Regardingtheimpairmenttestofbusinessreputation,thecarryingamountofbusinessreputationformedbybusinessmergershallbeapportionedtotherelevantassetgroupinareasonablewayfromthedateofpurchase.Ifitisdifficulttoapportiontotherelevantassetgroup,itshallbeapportionedtotherelevantcombinationofassetgroup.Therelevantassetgrouporcombinationofassetgroupsistheonethatcanbenefitfromthesynergyeffectofbusinessmerger,andistheonesmallerthanthereportablesegmentdeterminedbytheCompany.Intheimpairmenttest,ifthereisanysignofimpairmentintheassetgrouporcombinationofassetgroupsrelatedtobusinessreputation,first,impairmenttestshallbecarriedoutontheassetgrouporcombinationofassetgroupsnotcontainingbusinessreputation,tocalculatetherecoverableamountandrecognizethecorrespondingimpairmentloss.Thenimpairmenttestshallbe
carriedoutontheassetgrouporcombinationofassetgroupcontainingbusinessreputationtocomparethecarryingamountwiththerecoverableamount.Iftherecoverableamountislowerthanthecarryingamount,theimpairmentlossofbusinessreputationshallberecognized.Oncetheimpairmentlossofassetsisrecognized,itwillnotbereversedinthefutureaccountingperiod.
23.Long-termDeferredExpenses
Thelong-termexpensestobeamortizedincurredbytheCompanyarevaluedattheactualcostandamortizedaveragelyaccordingtotheexpectedbenefitperiod.Forlong-termexpensestobeamortized,theamortizedvaluethatcannotbenefitthefutureaccountingperiodshallbeincludedinthecurrentprofitandloss.
24.Payroll
(1)AccountingTreatmentofShort-termCompensation
Duringtheaccountingperiodinwhichemployeesprovideservices,theCompanyrecognizestheactualemployeewages,bonuses,socialinsurancepremiumssuchasmedicalinsurancepremiums,industrialinjuryinsurancepremiums,andmaternityinsurancepremiumsandhousingprovidentfundspaidtoemployeesaccordingtotheprescribedstandardsandproportionsasliabilitiesandincludedtheminthecurrentprofitandlossorrelatedassetcosts.Iftheliabilityisnotexpectedtobefullypaidwithintwelvemonthsaftertheendoftheannualreportingperiodforemployeestoproviderelatedservices,andthefinancialimpactissignificant,theliabilitywillbemeasuredatthediscountedamount.
(2)AccountingTreatmentoftheWelfareafterDeparture
Thepost-employmentbenefitplanincludesadefinedcontributionplanandadefinedbenefitplan.Amongthem,thedefinedcontributionplanreferstothepost-employmentbenefitplanthattheenterprisenolongerassumesfurtherpaymentobligationsafterthefixedfundhaspaidafixedfee;thedefinedbenefitplanreferstothepost-employmentbenefitplanotherthantheestablishedcontributionplan.SetwithdrawalplanThesetcontributionplanincludesbasicpensioninsuranceandunemploymentinsurance.Duringtheaccountingperiodinwhichemployeesprovideservices,theamountofdepositpayablecalculatedaccordingtothesetwithdrawalplanisrecognizedasaliabilityandincludedinthecurrentprofitandlossorrelatedassetcosts.DefineabenefitplanForthedefinedbenefitplan,anindependentactuaryperformsanactuarialvaluationontheannualbalancesheetdate,andthecostofprovidingbenefitsisdeterminedbytheexpectedcumulativebenefitunitmethod.TheemployeecompensationcostcausedbytheCompany'sdefinedbenefitplanincludesthefollowingcomponents:
①Servicecost,includingcurrentservicecost,pastservicecostandsettlementgainsorlosses.Amongthem,thecurrentservicecostreferstotheincreaseinthepresentvalueofthedefinedbenefitplanobligationscausedbytheemployeesprovidingservicesinthecurrentperiod;thepastservicecostreferstothedefinedbenefitrelatedtotheemployeeservicesinthepreviousperiodcausedbythemodificationofthedefinedbenefitplanAnincreaseordecreaseinthepresentvalueofplanobligations.②Thenetinterestofthenetliabilitiesornetassetsofthedefinedbenefitplan,includingtheinterestincomeoftheplanassets,theinterestexpenseofthedefinedbenefitplanobligationsandtheinterestaffectedbytheassetceiling.③Re-measurethechangescausedbythenetliabilitiesornetassetsofthedefinedbenefitplan.
Unlessotheraccountingstandardsrequireorallowemployeebenefitcoststobeincludedinthecostofassets,theCompanywillincludetheaboveitems①and②intothecurrentprofitandloss;item③isincludedinothercomprehensiveincomeandwillnotbetransferredbacktoprofitorlossinthesubsequentaccountingperiodWhenthedefinedbenefitplanisterminated,allthepartsoriginallyincludedinothercomprehensiveincomearecarriedforwardtoundistributedprofitswithinthescopeofequity.
(3)AccountingTreatmentoftheDemissionWelfareTheCompanyrelievesthelaborrelationwiththeemployeesbeforetheduedateofthelaborcontactsorputsforwardtheadviceofprovidingthecompensationforurgingtheemployeesvolunteeredtoreceivethedownsizingandwhentheCompanycouldnotunilaterallywithdrawthedemissionwelfareowningtotherelievingplanofthelaborrelationorthedownsizingadvice,shouldconfirmtheliabilitiesoftheemployees’salaryfromthedemissionwelfareontheearlierdaybetweenthecostconfirmedbytheCompanyandthecostrelatedtothereorganizationofthepaymentofthedemissionwelfareandincludeswhichinthecurrentgainsandlosses.Regardingtheimplementationofinternalretirementplanoftheemployees,theeconomiccompensationbeforetheofficialretirementdatebelongstothedismissalwelfare.Fromthedatewhentheemployeesstopprovidingservicestothenormalretirementdate,thewagesandsocialinsurancepremiumstobepaidtotheearlyretiredemployeesshallbeincludedinthecurrentprofitandlossatonetime.Financialcompensation(suchasnormalpension)aftertheofficialretirementdateshallbehandledaswelfareafterseparation.
(4)AccountingTreatmentoftheWelfareofOtherLong-termStaffs
Otherlong-termemployeebenefitsprovidedbytheCompanytoemployeesthatmeettheconditionsofdefinedcontributionplansshallbehandledinaccordancewiththeabove-mentionedrelevantprovisionsondefinedcontributionplans.Thoseinlinewiththedefinedbenefitplanshallbehandledinaccordancewiththeabove-mentionedrelevantprovisionsonthedefinedbenefitplan.However,thepartof"changescausedbyremeasuringthenetliabilitiesornetassetsofthedefinedbenefitplan"inthesalarycostofrelevantemployeesshallbeincludedinthecurrentprofitandlossortherelevantassetcost.
25.LeaseLiabilities
TheCompanyinitiallymeasurestheleaseobligationatthepresentvalueoftheleasepaymentsoutstandingatthecommencementdateoftheleaseterm.Leasepaymentsinclude:a)fixedpayment(includingsubstantialfixedpayment),andtherelevantamountafterdeductingtheleaseincentiveifany;b)variableleasepaymentsdependingonindexorratio;c)estimatedpaymentsduetotheguaranteedresidualvalueprovidedbythelessee;d)exercisepriceofthepurchasedoption,providedthatthelesseereasonablydeterminesthattheoptionwillbeexercised;ande)theamounttobepaidfortheexerciseoftheleaseterminationoptions,providedthattheleasetermreflectsthatthelesseewillexercisetheoptionstoterminatethelease.TheCompanyusestheinterestrateimplicitinleaseastherateofdiscount.Iftheinterestrateimplicitinleasecannotbereasonablydetermined,theCompany'sincrementalborrowingrateisusedastherateofdiscount.TheCompanycalculatestheinterestexpensesoftheleaseobligationsduringeachperiodoftheleasetermatafixedperiodicinterestrate,andincludestheminfinancialexpenses.TheperiodicinterestratereferstotherateofdiscountemployedbytheCompanyortherateofdiscountafterrevision.Variableleasepaymentsthatarenotcoveredinthemeasurementoftheleaseobligationsareincludedincurrentprofitorlosswhenactuallyincurred.WhenthereisachangeintheCompany'sevaluationresultsofleaserenewaloptions,leaseterminationoptionsorpurchaseoptions,theCompanywillre-measuretheleaseobligationutilizingthepresentvalueofthechangedleasepaymentandtherevisedrateofdiscount,andadjustthebookvalueofright-of-useassetsaccordingly.Wherethereisachangeinsubstantialleasepayment,estimatedpaymentsduetotheguaranteedresidualvalue,orvariableleasepaymentsdependingonindexorratio,theCompanywillre-measuretheleaseobligationleveragingthepresentvalueofthechangedleasepaymentandtheoriginalrateofdiscount,and
adjustthebookvalueofright-of-useassetsaccordingly.
26.ProvisionsIftheobligationrelatedtocontingencymeetsthefollowingconditionsatthesametime,theCompanywillrecognizeitasaprovision.
(1)TheobligationisthecurrentobligationassumedbytheCompany;
(2)TheperformanceoftheobligationislikelytocauseanoutflowofeconomicbenefitsoftheCompany;
(3)Theamountoftheobligationcanbemeasuredreliably.Theprovisionsareinitiallymeasuredinaccordancewiththeoptimalestimateofthenecessaryexpendituresforthefulfillmentofthecurrentobligation,withfactorssuchasrisks,uncertaintyandthetimevalueofmoneyrelatedtocontingenciestakenintoconsiderationcomprehensively.Wherethetimevalueofmoneyhasasignificantimpact,thebestestimateisdeterminedbydiscountingtherelevantfuturecashoutflow.TheCompanyre-checksthebookvalueoftheprovisionsonthebalancesheetdateandadjuststhebookvaluetoreflectthecurrentbestestimate.Ifallorpartoftheexpenditurerequiredtosettlerecognizedprovisionsisexpectedtobecompensatedbyathirdpartyorotherparties,theamountofcompensationshallberecognizedseparatelyasanassetonlywhenitissubstantiallycertainthatitwillbereceived.Therecognizedamountofcompensationshallnotexceedthebookvalueoftherecognizedliabilities.
27.Share-basedPaymentsandEquityInstruments
(1)Categoryofshare-basedpaymentTheshare-basedpaymentsoftheCompanyaredividedintoequity-settledsharepaymentsandcash-settledsharepayments.
(2)MethodofdeterminingthefairvalueofequityinstrumentsTheCompanyshalldeterminethefairvalueofequityinstrumentssuchasoptionsgrantedinactivemarketsaccordingtothequotationsinactivemarkets.Forgrantedequityinstrumentssuchasoptionswithoutactivemarkets,thefairvalueisdeterminedbyoptionpricingmodel.Thefollowingfactorsshallbeconsideredfortheselectedoptionpricingmodel:A.Exercisepriceoftheoption;B.Expirationdateoftheoption;C.Currentpriceoftheobjectshares;D.Expectedfluctuationrateofstockprice;E.Estimateddividendsofshares;F.Risk-freeinterestratewithintheoptionterm.
(3)GroundforrecognizingtheoptimalestimationoffeasiblerightequityinstrumentsOneachbalancesheetdateduringthewaitingperiod,theCompanyshallmaketheoptimalestimatebasedonsubsequentinformationsuchasthelatestchangeinthenumberofemployeeswithfeasiblerights,andrevisethenumberofequityinstrumentsfortheestimatedfeasiblerights.Onthefeasiblerightdate,thefinalestimatednumberoffeasiblerightequityinstrumentsshallbethesameastheactualnumberoffeasiblerights.
(4)Relevantaccountingtreatmentforimplementing,modifyingandterminatingshare-basedpaymentplanEquity-settledshare-basedpaymentsshallbemeasuredatthefairvalueoftheequityinstrumentsgrantedtoemployees.Wheretherightisexercisedimmediatelyafterthegrant,relevantcostsorfeesshallbeincludedinaccordancewiththefairvalueoftheequityinstrumentsonthegrantdatetoaccordinglyincreasethecapitalreserve.Wheretherightisexerciseduponthecompletionoftheservicesduringthewaitingperiodortheachievementofthespecifiedresultconditions,theservicesobtainedinthecurrentperiodshallbeincludedintherelevantcostsorfeesandthecapitalreserveaccordingtothefairvalueoftheequityinstrumentsonthegrantdatebasedontheoptimalestimateofthenumberoffeasiblerightequityinstrumentsoneachbalancesheetdateduringthewaitingperiod.Therecognizedrelatedcostsorfeesandtotalowner'sequityafterthefeasiblerightdateshallnotbeadjustedanymore.Thecash-settledshare-basedpaymentsshallbemeasuredaccordingtothefairvalueofliabilitiescalculatedanddeterminedonthebasisofsharesorotherequityinstruments,whichareassumedbytheCompany.Wheretherightisexercisedimmediatelyafterthegrant,thefairvalueoftheliabilitiesassumedbytheCompanyshallbeincludedintherelevantcostsorfeesonthegrantdate,soastoaccordinglyincreasetheliabilities.Forthecash-settledshare-basedpayments,forwhichtherightisexerciseduponthecompletionoftheservicesduringthewaitingperiodortheachievementofthespecifiedresultconditions,theservicesobtainedinthecurrent
periodshallbeincludedincostsorfeesandcorrespondingliabilitiesaccordingtothefairvalueamountofliabilitiesassumedbytheCompanybasedontheoptimalestimateoffeasiblestatusoneachbalancesheetdateduringthewaitingperiod.Oneachbalancesheetdateandsettlementdatebeforetherelevantliabilitiesaresettled,thefairvalueoftheliabilitiesshallbere-measured,andthechangesshallbeincludedinthecurrentprofitandloss.WhentheCompanymodifiesashare-basedpaymentplan,ifthemodificationincreasesthefairvalueoftheequityinstrumentsgranted,theincreaseintheservicesacquiredshallberecognizedaccordinglyaccordingtotheincreaseinthefairvalueoftheequityinstruments;ifthemodificationincreasesthenumberofequityinstrumentsgranted,thefairvalueoftheincreasedequityinstrumentsshallberecognizedaccordinglyastheincreaseintheservicesacquired.Theincreaseinthefairvalueoftheequityinstrumentsreferstothedifferencebetweenthefairvaluesoftheequityinstrumentsbeforeandafterthemodificationonthemodificationdate.Ifthemodificationreducesthetotalfairvalueoftheshare-basedpaymentoranyothermethodnotconducivetotheemployeesisadoptedtomodifythetermsandconditionsoftheshare-basedpaymentplan,theaccountingtreatmentoftheservicesacquiredwouldcontinue,asifsuchchangehadneveroccurred,unlesstheCompanycancelssomeorallofthegrantedequityinstruments.Duringthewaitingperiod,ifthegrantedequityinstrumentiscanceled(exceptforthecancellationduetonon-marketconditionsthatdonotmeetthefeasibleconditions),theCompanyshalltreatthecanceledequityinstrumentasanacceleratedexercise,immediatelyincludetheleftamounttoberecognizedduringthewaitingperiodinthecurrentprofitandloss,andrecognizethecapitalreserveatthesametime.Wheretheemployeeorotherpartycanchoosetomeetthenon-feasiblerightconditionbutfailsduringthewaitingperiod,itshallbetreatedasthecancellationofthegrantedequityinstrument.
28.RevenueAccountingpoliciesadoptedfortherecognitionandmeasurementofrevenue
(1)GeneralprincipleTheCompanyrecognizesrevenuewhenithasfulfilleditscontractperformanceobligationinacontract,namely,whenthecustomerobtainsthecontrolovertherelatedcommodityorservice.Ifacontractcontainstwoormoreperformanceobligations,theCompanyallocatestransactionpricetosingleperformanceobligationsonthecontractcommencementdateaccordingtotherelativeratioofseparatepriceofgoodsorservicescommittedbysingleperformanceobligation,andincomeismeasuredaccordingtothetransactionpriceallocatedtosingleperformanceobligation.Whenmeetingoneofthefollowingconditions,theCompanybelongstoperformanceofcontractperformingobligationsinaperiod,orotherwise,theCompanybelongstoperformanceofcontractperformingobligationsatapointoftime:
①WhiletheCompanyisperformingthecontract,thecustomeracquiresandconsumestheeconomicbenefitarisingfromperformancebytheCompany.
②ThecustomercancontrolthegoodsinconstructioninthecourseofperformancebytheCompany.
③ThegoodsoutputtedinthecourseofperformancebytheCompanyhaveirreplaceablepurpose,andtheCompanyhastherighttocollectionofmoneyforthecompletedperformancepartcumulativeuptonowinthewholetermofcontract.Fortheperformanceobligationperformedinaperiod,theCompanyconfirmsincomeaccordingtotheperformanceprogressinsuchperiod.Whentheperformanceprogresscannotbereasonablydetermined,ifthecostthattheCompanyhasincurredisexpectedtobecompensated,incomeisconfirmedaccordingtothecostamountthathasoccurred,untiltheperformanceprogresscanbereasonablydetermined.Fortheperformanceobligationperformedatapointoftime,incomeisconfirmedatthepointoftimewhenthecustomeracquiresthecontrolrighttorelevantgoodsorservices.Whenitjudgeswhetherthecustomerhasacquiredthecontrolrighttothegoodsorservices,theCompanywillconsiderthefollowingindications:
①TheCompanyenjoysthecurrentcollectionrighttothegoodsorservices,i.e.thecustomerundertakescurrentpaymentobligationtothegoods.
②TheCompanyhastransferredthelegalownershipofthegoodstothecustomer,thatis,thecustomerhasownedthelegal
ownershipofthegoods.③TheCompanyhastransferredthekindofthegoodstothecustomer,namely,thecustomerhaspossessedthegoodinkind.④TheCompanyhastransferredthemajorrisksandremunerationontheownershipofthegoods,i.e.thecustomerhasacquiredthemajorrisksandremunerationontheownershipofthegoods.④Thecustomerhasacceptedthegoodsorservices.⑤Otherindicationsshowingthatthecustomerhasacquiredthecontrolrighttothegoods.TheCompanyhastransferredgoodsorservicesandhastherighttocollectconsideration(andtherightdependsonfactorsotherthantimeelapse)ascontractassets,andcontractassetisaccruedimpairmentonthebasisofexpectedcreditloss(refertoNoteV10(6)).TherightoftheCompany,unconditionally(onlydependingontimeelapse)chargingconsiderationfromthecustomer,islistedasreceivable.TheobligationoftheCompanythatshalltransfergoodsorservicestothecustomerfortheconsiderationthathasbeenorshallbecollectedisliabilitytothecontract.Thecontractassetsandcontractliabilitiesunderthesamecontractarelistedinnetamount.Ifnetamountisdebitbalance,itislistedintheitems“contractasset”or“othernon-currentasset”accordingtoitsfluidity;ifnetamountiscreditbalance,itislistedintheitems“contractliability”or“othernon-currentliability”accordingtoitsfluidity.
(2)SpecificmethodsThespecificincomeconfirmingmethodsoftheCompanyarefollowing:
Forincomeofdomesticproducts,aftertheCompanydeliversproductstothepurchaseraccordingtotheprovisionsofthecontractandthepurchaserconfirmsreceipt,thepurchaseracquiresthecontrolrightofproducts,andtheCompanyconfirmsincome.Forincomeofexportableproducts,aftertheCompanycompletescustomsdeclarationofproducts,departureandobtainsbillofladingaccordingtotheprovisionsofthecontract,thepurchaseracquiresthecontrolrightofproducts,andtheCompanyconfirmsincome.Differencesinaccountingpoliciesforrevenuerecognitionduetodifferentbusinessmodelsofthesametypeofbusiness
29.GovernmentGrantsGovernmentgrantsarerecognizedwhentheymeettheconditionsattachedtogovernmentgrantsandwhentheycanbereceived.Governmentgrantsformonetaryassetsshallbemeasuredaccordingtotheamountreceivedorreceivable.Governmentgrantsfornon-monetaryassetsshallbemeasuredbyfairvalue,andtheyshallbemeasuredbythenominalamountofRMB1ifthefairvaluecannotbeobtainedreliably.AssetrelatedgovernmentgrantsrefertothegovernmentgrantsobtainedbytheCompanyforacquisitionandconstructionorotherformsoflong-termassets.Inaddition,theyaregovernmentgrantsrelatedtoincome.Regardingthegovernmentgrantsthatthegovernmentdocumentdoesnotspecifytheobjectofsubsidyandcanformlong-termassets,thepartofgovernmentsubsidycorrespondingtotheassetvalueshallberegardedastheasset-relatedgovernmentsubsidyandtherestshallberegardedasincome-relatedgovernmentsubsidy.Ifitisdifficulttodistinguish,thegovernmentsubsidyshallberegardedastheincome-relatedgovernmentsubsidy.Thegovernmentgrantsrelatedtoassetsshallberecognizedasthedeferredincome,whichshallbeincludedintheprofitandlossininstallmentinareasonableandsystematicwaywithintheservicelifeoftherelevantassets.Income-relatedgovernmentgrantswhichareusedtocompensatetherelevantcostsorlossesincurredshallbeincludedinthecurrentprofitandloss.Thoseusedtocompensatetherelevantcostsorlossesinthelaterperiodshallbeincludedinthedeferredincome,andshallbeincludedinthecurrentprofitandlossduringtherecognitionperiodoftherelevantcostsorlosses.Thegovernmentgrantsmeasuredaccordingtothenominalamountshallbedirectlyincludedinthecurrentprofitandloss.ThesamemethodisadoptedforthesameorsimilargovernmentsubsidybusinessesoftheCompany.Governmentgrantsrelatedtodailyactivitiesshallbeincludedinotherincomesaccordingtotheessenceofbusinesstransactions.Governmentgrantsirrelevanttodailyactivitiesareincludedinnon-businessincome.Whentherecognizedgovernmentgrantsneedtobereturned,andareusedtooffsetthecarryingvalueofrelatedassetswheninitially
recognized,thecarryingvalueoftheassetsshallbeadjusted;thebookbalanceofrelevantdeferredincomeshallbeoffsetifthereisabalanceofrelevantdeferredincome,andtheexcesspartshallbeincludedinthecurrentprofitandloss.Otherwise,itshallbedirectlyincludedinthecurrentprofitandloss.Regardingtheinterestsubsidyofthepolicypreferentialloanobtained,iftheMinistryofFinanceallocatestheinterestsubsidytotheloanbank,theactualreceivedloanamountshallbetakenastheentryvalueoftheloan,andtheloancostshallbecalculatedaccordingtotheloanprincipalandthepolicypreferentialinterestrate.IftheMinistryofFinanceallocatestheinterestsubsidydirectlytotheCompany,theinterestsubsidywilloffsettheborrowingcosts.
30.DeferredIncomeTaxAssets/DeferredIncomeTaxLiabilities
Incometaxincludescurrentincometaxanddeferredincometax.Allshallbeincludedinthecurrentprofitandlossasincometaxexpenseexcepttheadjustmentbusinessreputationarisingfrombusinessmerger,orthedeferredincometaxrelatedtothetransactionsoreventsdirectlyincludedintheowner'sequityisincludedintheowner'sequity.Pursuanttothetemporarydifferencebetweenthecarryingamountofassetsandliabilitiesonthedateofbalancesheetandthetaxbasis,theCompanyrecognizesthedeferredincometaxbybalancesheetliabilitymethod.Foralltaxabletemporarydifferences,relateddeferredincometaxliabilitiesarerecognized,unlessthetaxabletemporarydifferencesaregeneratedinthefollowingtransactions:
(1)Theinitialrecognitionofbusinessreputationortheinitialrecognitionofassetsorliabilitiesarisingfromtransactionswiththefollowingcharacteristics:Thetransactionisnotabusinessmerger,anddoesnotaffecttheaccountingprofitortaxableincomewhenitoccurs;
(2)Regardingthetaxabletemporarydifferencerelatedtotheinvestmentofsubsidiaries,jointventuresandassociatedenterprises,thetimeofreversalofthetemporarydifferencecanbecontrolledandthetemporarydifferenceisunlikelytobereversedintheforeseeablefuture.Fordeductibletemporarydifferences,deductiblelossesandtaxcreditsthatcanbecarriedforwardinsubsequentyears,theCompanyislikelytoobtainthefuturetaxableincomeasthelimittooffsetthedeductibletemporarydifferences,deductiblelossesandtaxcredits,inwhichwaytorecognizethedeferredincometaxassetsarisingfromthedeductibletemporarydifferences,deductiblelossesandtaxcredits,unlessthedeductibletemporarydifferencesaregeneratedinthefollowingtransactions:
(1)Thetransactionisnotabusinessmerger,anddoesnotaffecttheaccountingprofitnortaxableincomewhenitoccurs;
(2)Thecorrespondingdeferredincometaxassetsshallberecognizedifthedeductibletemporarydifferencesrelatedtotheinvestmentofsubsidiaries,jointventuresandassociatedenterprisesmeetthefollowingconditionssimultaneously:Thetemporarydifferencesarelikelytobereversedintheforeseeablefuture,andthetaxableincomeusedtodeductthedeductibletemporarydifferencesislikelytobeobtainedinthefuture.Onthedateofthebalancesheet,theincometaxassetsanddeferredincometaxliabilitiesshallbemeasuredbytheCompanyonthebasisoftheapplicabletaxrateduringtheperiodwhentheassetsareexpectedtoberecoveredortheliabilitiesareexpectedtobepaidoff,andtheincometaximpactontheexpectedrecoveryofassetsonthedateofthebalancesheetoronthemethodtopayofftheliabilitiesshallbereflected.
Thebookvalueofdeferredincometaxassetsshallbereviewedateachbalancesheetdate.Ifitisunlikelytoobtainsufficienttaxableincometooffsetagainstthebenefitofthedeferredincometaxasset,thebookvalueofthedeferredincometaxassetsshallbewrittendown.Anysuchwrite-downshouldbesubsequentlyreversedwhereitbecomesprobablethatsufficienttaxableincomewillbeavailable.
31.Lease
(1)Asthelessee
Onthecommencementdateoftheleaseterm,theCompanyrecognizestheright-of-useassetsandleaseliabilitiesforallleases,exceptforshort-termleasesandlow-valueassetleaseswithsimplifiedtreatment.Foraccountingpoliciesfortheright-of-useassets,seeNoteV-20.Leaseliabilitiesareinitiallymeasuredinlinewiththeleasepaymentsnotyetpaidonthecommencementdateoftheleasetermusingthepresentvaluecalculatedbytheinterestrateimplicitinlease.Iftheinterestrateimplicitinleasecannotbedetermined,theincrementalborrowingrateshallbeusedasthediscountrate.Leasepaymentsinclude:Fixedpaymentandsubstantialfixedpayment,andtherelevantamountafterdeductingtheleaseincentiveifany;variableleasepaymentsdependingonindexorratio;exercisepriceofthepurchasedoption,providedthatthelesseereasonablydeterminesthattheoptionwillbeexercised;theamounttobepaidfortheexerciseoftheleaseterminationoptions,providedthattheleasetermreflectsthatthelesseewillexercisetheoptionstoterminatethelease;andestimatedpaymentsduetotheguaranteedresidualvalueprovidedbythelessee.Subsequently,itcalculatestheinterestexpensesoftheleaseliabilitiesduringeachperiodoftheleasetermatafixedperiodicinterestrate,andincludesthemincurrentprofitandloss.Variableleasepaymentsthatarenotcoveredinthemeasurementoftheleaseliabilitiesareincludedincurrentprofitorlosswhenactuallyincurred.Short-termleaseAshort-termleasereferstoaleaseforaperiodnotexceeding12monthsonthecommencementdateofthelease,exceptforleaseswithapurchaseoption.TheCompanyincludestheshort-termleasepaymentinthecostofrelevantassetsorthecurrentprofitandlossineachperiodoftheleasetermbythestraight-linemethod.Low-valueassetleaseAlow-valueassetleasereferstoaleasewherethevalueislowerthanRMB40,000andasingleleasedassetisanewasset.TheCompanyincludestheleasepaymentofthelow-valueassetleaseinthecostofrelevantassetsorthecurrentprofitandlossineachperiodoftheleasetermbythestraight-linemethod.Forlow-valueassetlease,itchoosestoadopttheaforesaidsimplifiedtreatmentmethodinlinewiththespecificstatusofeachlease.LeasechangeIfaleasechangesandmeetsthefollowingconditionssimultaneously,theleasechangeshallberegardedasaseparateleaseforaccountingtreatment:a)Theleasechangeexpandsitsleasecopebyincreasingoneormultipleuserightsofleaseassets;andb)Theincreasedconsiderationisequivalenttotheamountoftheseparatepricefortheexpandedpartofthelease,whichisadjustedaccordingtothecontract.Wheretheleasechangeisnotregardedasaseparateleaseforaccountingtreatment,ontheeffectivedateoftheleasechange,bytheCompany,theconsiderationofthecontractisamortizedagainuponchange,theleasetermisredetermined,andtheleaseliabilitiesareremeasuredaccordingtothepresentvaluethatiscalculatedbytheleasepaymentsandthereviseddiscountrateuponchange.TheCompanyshallcorrespondinglyreducethebookvalueoftheright-of-useassetsandincludetheprofitorlossoftheleaseterminatedinpartorwholeinthecurrentprofitorloss,iftheleasechangenarrowsthescopeofleaseorshortenstheleaseterm.TheCompanyshallcorrespondinglyadjustthebookvalueoftheright-of-useassets,ifotherleasechangesresultinthere-calculationoftheleaseliability.
(2)Asthelessor
WhentheCompanyisalessor,itshallrecognizeleasesthatsubstantiallytransferallrisksandremunerationrelatedtotheownershipofassetsasfinanceleases,andleasesotherthanfinanceleasesasoperatingleases.FinancialleaseInafinancelease,theCompanyrecognizesthenetleaseinvestmentasthebookvalueoffinanceleasereceivablesonthecommencementdateoftheleaseterm.Thenetleaseinvestmentisthesumoftheunguaranteedresidualvalueandthepresentvalueofleasereceivablesnotyetreceivedonthecommencementdateoftheleasetermattheinterestrateimplicitinlease.TheCompanycalculatesandconfirmstheinterestincomeatafixedperiodicinterestrateineachperiodintheleaseterm.Variableleasepaymentsobtainedthatarenotincludedinthenetleaseinvestmentformeasurement,wheretheCompanyisthelessor,areincludedintheprofitorlossofthecurrentperiodwhenactuallyincurred.AccountingtreatmentshallbeconductedforthederecognitionandimpairmentoffinanceleasereceivablesinaccordancewiththeprovisionsoftheAccountingStandardforBusinessEnterprisesNo.22-RecognitionandMeasurementofFinancialInstrumentsandtheAccountingStandardforBusinessEnterprisesNo.23-TransferofFinancialAssets.OperatingleasesTheCompanyshallrecognizethecurrentprofitandlossoftherentoftheoperatingleaseineachperiodoftheleasetermbythestraight-linemethod.Theinitialdirectcostsrelatedtotheoperatingleaseshallbecapitalized,amortizedwithintheleasetermonthesamebasisastherecognitionofrentalearning,andincludedinprofitorlossforthecurrentperiod.Thereceivedvariableleasepaymentsrelatedtotheoperatingleasethatarenotincludedintheleasepaymentsreceivableareincludedinprofitorlossforthecurrentperiodwhentheyareactuallyincurred.LeasechangeWhereanoperatingleasechanges,theaccountingtreatmentisconductedforitwhichisregardedasanewleasefromtheeffectivedateofthechange,andreceivablesinadvanceorleasereceivablesrelatedtoleasebeforechangearedeemedasthereceivablesinthenewlease.Whereafinanceleasechangesandmeetsthefollowingconditionssimultaneously,thechangeisregardedasaseparateleasebytheCompanyforaccountingtreatment:a)Thechangeexpandsitsleasecopebyincreasingoneormultipleuserightsofleaseassets;andb)Theincreasedconsiderationisequivalenttotheamountoftheseparatepricefortheexpandedpartofthelease,whichisadjustedaccordingtothecontract.Whereafinanceleasechangesandisnotregardedasaseparateleaseforaccountingtreatment,theCompanytreatsthechangedleaseunderthefollowingcircumstances:a)Ifthechangecomesintoforceonthecommencementdateoftheleaseterm,theleasewillbeclarifiedasanoperatinglease,whileitwillberegardedasanewleaseforaccountingtreatmentbytheCompanyontheeffectivedateoftheleasechange,andthenetleaseinvestmentbeforetheeffectivedateofleasechangewillberegardedasthebookvalueofleaseassets;andb)Ifthechangecomesintoforceonthecommencementdateoftheleaseterm,theleasewillbeclarifiedasafinancelease,theCompanywillcarryoutaccountingtreatmentinaccordancewiththeprovisionsonmodificationorrenegotiationofacontractoftheAccountingStandardforBusinessEnterprisesNo.22-RecognitionandMeasurementofFinancialInstruments.
32.RepurchaseofShares
BeforethesharesrepurchasedbytheCompanyarecancelledortransferred,theyaremanagedastreasuryshares,andallexpendituresfortherepurchaseofsharesaretransferredtothecostoftreasuryshares.Considerationandtransactioncostspaidinsharerepurchasereduceshareholders'equity.Whenbuyingback,transferringorcancellingsharesintheCompany,noprofitsorlossesarerecognized.Thetransferofinventorysharesshallbecreditedtothecapitalreserveonthebasisofthedifferencebetweentheamountactuallyreceivedandthecarryingamountofthetreasurystock.Writeoffsurplusreservesandundistributedprofitsifcapitalreservesareinsufficienttooffset.Write-offoftreasurystockscanreducesharesinparwithparvalueandnumberofwrite-outstocks.Thecapitalreserveisoffsetbasedonthedifferencebetweenbookbalanceandfacevalueofcancelledtreasurystocks.Writeoffsurplusreserves
andundistributedprofitsifcapitalreservesareinsufficienttooffset.
33.RestrictedSharesIntheequityincentiveplan,theCompanygrantsrestrictedstockstotheincentivepersonnel,whofirstlysubscribethestocks.Iftheunlockingconditionsspecifiedintheequityincentiveplanarenotmet,theCompanywillrepurchasethestocksatthepreviouslyagreedprice.Wheretherestrictedstocksissuedtotheemployeeshasgonethroughcapitalincreaseproceduressuchasregistrationinaccordancewithrelevantprovisions,theCompanyshall,onthegrantdate,recognizethesharecapitalandthecapitalreserve(sharecapitalpremium)inconformitywiththesubscriptionpaymentreceivedfromtheemployees.Meanwhile,itshallrecognizethetreasurystocksandotherpayableswithrespecttorepurchaseobligations.
34.ChangesinMainAccountingPoliciesandEstimates
(1)SignificantChangesinAccountingPolicies
□Applicable?Notapplicable
(2)SignificantChangesinAccountingEstimates
□Applicable?Notapplicable
35.MaterialAccountingJudgmentsandEstimates
TheCompanyevaluatestheimportantaccountingestimatesandkeyassumptionsadoptedonanongoingbasis,basedonhistoricalexperienceandotherfactors,includingreasonableexpectationsoffutureevents.Importantaccountingestimatesandcriticalassumptionsthathaveasignificantriskofcausingamaterialadjustmenttothecarryingamountsofassetsandliabilitieswithinthenextfiscalyeararelistedasfollows:
ClassificationoffinancialassetsThesignificantjudgmentsinvolvedwhentheCompanydeterminestheclassificationoffinancialassetsincludeanalysisofbusinessmodelsandcontractualcashflowcharacteristics.TheCompanydeterminesthebusinessmodelformanagingfinancialassetsatthelevelofthefinancialassetportfolio,takingintoaccountfactorssuchastheapproachofevaluatingandreportingtheperformanceoffinancialassetstokeymanagementpersonnel,therisksaffectingtheperformanceoffinancialassetsandthemannerinwhichtheyaremanaged,andwayinwhichtherelevantbusinessmanagementpersonnelarecompensated.Thefollowingmainjudgmentsexistinassessingwhetherthecontractualcashflowsoffinancialassetsareconsistentwiththebasiclendingarrangements:
Whetherthetimedistributionoramountoftheprincipalamountduringthedurationmaychangeduetoearlyrepaymentorforotherreasons;whethertheinterestincludesonlythetimevalueofmoney,creditrisk,otherbasiclendingrisksandconsiderationagainstcostsandprofits.Forexample,whethertheamountofearlyrepaymentreflectsonlytheoutstandingprincipalandinterestbasedontheoutstandingprincipal,aswellasreasonablecompensationpaidforearlyterminationofthecontract.MeasurementofexpectedcreditlossesofaccountsreceivableTheCompanycalculatestheexpectedcreditlossofaccountsreceivableusingtheexposuretodefaultriskofaccountsreceivableandtheexpectedcreditlossratio,anddeterminestheexpectedcreditlossratiobasedontheprobabilityofdefaultandthedefaultlossratio.Whendeterminingtheexpectedcreditlossratio,theCompanyusesdatasuchasinternalhistoricalcreditlossexperienceandadjustshistoricaldatatotakeintoaccountcurrentconditionsandforward-lookinginformation.Whenconsideringforward-lookinginformation,theCompanyusesindicatorssuchastheriskofeconomicdownturnandchangesintheexternalmarketenvironment,technologicalenvironmentandcustomerprofile.TheCompanyregularlymonitorsandreviewstheassumptionsrelatedtothe
calculationofexpectedcreditlosses.GoodwillimpairmentWeshallassesswhetherthereisimpairmentofgoodwillatleastannually.Thisrequiresestimatingtheusevalueoftheassetgrouptowhichgoodwillhasbeenassigned.Whenestimatingtheusevalue,theCompanyshallestimatethefuturecashflowsfromtheassetgroupandselecttheappropriatediscountratetocalculatethepresentvalueoffuturecashflowsatthesametime.DeferredincometaxassetsTotheextentthatitisprobablethatsufficienttaxableprofitwillbeavailabletooffsetthelosses,theCompanyrecognizesdeferredincometaxassetsforallunusedtaxlosses.ThisrequirestheCompany'smanagementtousemanyjudgmentstoestimatethetimingandamountoffuturetaxableprofits,takingintoaccounttaxplanningstrategies,soastodeterminetheamountofdeferredincometaxassetstoberecognized.DeterminationoffairvalueofunlistedequityinvestmentThefairvalueofunlistedequityinvestmentistheexpectedfuturecashflowsdiscountedatthecurrentdiscountrateforitemswithsimilartermsandriskcharacteristics.SuchvaluationrequirestheCompanytoestimateexpectedfuturecashflowsanddiscountratesandisthereforesubjecttouncertainty.Underlimitedcircumstances,iftheinformationusedtodeterminefairvalueisinsufficient,oriftherangeofpossibleestimatesoffairvalueiswideandthecostrepresentsthebestestimateoffairvaluewithinthatrange,thecostmayrepresentitsappropriateestimateoffairvaluewithinthatrangeofdistribution.VITaxation
1.MainTaxesandTaxRate
| Categoryoftaxes | Taxbasis | Taxrate |
| VAT | Taxableincome | 13%、9%、6%、5%、3%、0 |
| Urbanmaintenanceandconstructiontax | Turnovertaxpayable | 7%、5% |
| Enterpriseincometax | Incometaxpayable | 0、5%、8.5%、15%、16.5%、17%、20%、25% |
Notesofthedisclosuresituationofthetaxpayingbodieswithdifferententerprisesincometaxrate
| Taxpayer | Incometaxrate |
| TheCompany | 15% |
| LufengWeaving&Dyeing | 15% |
| LuThaiHongKong | 16.50% |
| LuqunTextile | 25% |
| XinshengPower | 25% |
| ShanghaiLuThai | 20% |
| ShanghaiZhinuo | 20% |
| LulianNewMaterials | 25% |
| LujiaImport&Export | 20% |
| BeijingZhishu | 20% |
| LuThaiCambodia | 20% |
| VanguardApparel | 0% |
| ContinentalTextile | 5% |
| LuThaiTanChau | 0% |
| LuAnGarments | 8.5% |
| LuThaiVocationalTrainingSchool | 0% |
| HuilinInternational | 15% |
| TianpingInternational | 17% |
| BanyangHills | 20% |
| VientianeTextile | 0% |
2.TaxPreference
InaccordancewiththeReplyonFilingoftheSecondBatchofHi-techEnterprisesofShandongProvincein2020withReferenceNo.GuoKeHuoZi[2021]25,theCompanywasidentifiedasahi-techenterpriseandthecertificateissuingdatewasDecember8,2020;inaccordancewiththeNoticeforAnnouncingtheFirstBatchofHi-techEnterpriseIdentificationListofShandongProvincein2020withreferenceNo.LuKeZi[2020]136,themajority-ownedsubsidiaryLufengWeaving&Dyeingwasidentifiedasahi-techenterprise,andthecertificateissuingdatewasAugust17,2020.PursuanttoArticle28oftheLawofthePRConEnterpriseIncomeTaxandtheNo.23AnnouncementrevisedandpublishedbytheStateAdministrationofTaxationin2018,namelyManagementofPreferentialPolicyonCorporateIncomeTax,theMeasuresfortheAdministrationoftheRecognitionofHighandNewTechnologicalEnterprises(GKFH[2016]No.195)revisedandpublishedbytheMinistryofScienceandTechnology,MinistryofFinanceandStateAdministrationofTaxation,theCompanyandtheholdingsubsidiaryLufengWeaving&Dyeingenjoyacorporateincometaxrateof15%.LuThai(HongKong)TextileCo.,Ltd.(hereinafterrefersasLuThai(HongKong)Textile),thewholly-ownedsubsidiarycompanyoftheCompany,wasincorporatedinHongKongSAR,whoseprofittaxshallbepaidattaxrateof16.5%.Thewholly-ownedsubsidiariesincludeShanghaiLuthai,ShanghaiZhinuo,LujiaImport&Export,BeijingZhishuandBanyangMountainVilla.AccordingtotheAnnouncementoftheStateTaxationAdministrationonIssuesConcerningtheImplementationofPreferentialIncomeTaxPoliciestoSupporttheDevelopmentofSmallandLow-profitEnterprisesandIndividualBusinesses(AnnouncementNo.8[2021]oftheStateTaxationAdministration)andAnnouncementoftheMinistryofFinanceandtheStateTaxationAdministrationonFurtherImplementingthePreferentialIncomeTaxPoliciesforMicroandSmallEnterprise(MinistryofFinanceandtheStateTaxationAdministration[2022]No.13),theannualtaxableincomeofsmalllow-profitenterpriseswithavalueoflessthanRMB1million(includingRMB1million)shallbeincludedinthetaxableincomeatareducedrateof12.5%,andtheenterpriseincometaxshallbepaidatthetaxrateof20%.ThepartthattheannualtaxableincomeexceedsRMB1millionbutnomorethanRMB3millionshallbeincludedinthetaxableincomeatareducedrateof25%,andtheenterpriseincometaxshallbepaidatthetaxrateof20%.ThewhollyownsubsidiaryVanguardApparel,accordingtotheBurma’sSpecialEconomicZoneLawissuedbyPyidaungsuHluttaw,VanguardApparelenjoystaxpreferenceoncorporateincometaxof7(7yearstaxholiday)+5(5yearstaxrevenuesdropbyhalf)+5(re-investtheprofitswithin1yearandcontinuestoenjoythehalftaxrevenues5yearsafterwards).Aftergraceperiod,enterpriseincometaxratewasof25%.Year2022istheseventhyearoftaxholiday.Thewholly-ownedsubsidiaryContinentalTextileshallenjoythepreferenceofenterpriseincometaxat3years’startingterm+4years’duty-freeterm+9years’half-taxtermaccordingtotheinvestmentlicenseissuedbyVietnameseTayNinhIndustrialZoneManagementCommittee,anditwillenterinto2years’duty-freetermifitisprofitablewithin3years’startingterm.ContinentalTextileshallenjoy10%ofthepreferencetaxratewithin15yearssincethetaxyeartogetthefirstproductionandoperationincome,andtheenterpriseincometaxrateshallbe20%afterthepreferencetermends.Year2022isthefirstyearofthehalvingcollection
period..Thewholly-ownedsubsidiaryofContinentalTextile,LuThaiTanChau,shallenjoythepreferenceofenterpriseincometaxat3years’startingterm+4years’duty-freeterm+9years’half-taxtermaccordingtotheinvestmentlicenseissuedbyVietnameseTayNinhInvestmentPlanningOffice,anditwillenterinto2years’duty-freetermifitisprofitablewithin3years’startingterm.TheCompanyshallenjoy10%ofthepreferencetaxratewithin15yearssincethetaxyeartogetthefirstproductionandoperationincome,andtheenterpriseincometaxrateshallbe20%afterthepreferencetermends.Year2022isthesecondyearoftaxholiday.LuThaiAmerica,thewholly-ownedsubsidiaryoftheCompanyregisteredinNewYork,America,wasimposedthefederalenterpriseincometaxatfixedtaxrateof21%,andimposedtheNewYorkEnterpriseincometaxatthefixedtaxrateof6.5%.Thewholly-ownedsubsidiaryLuThaiVocationalTrainingSchoolCo.,Ltd.enjoysthepreferentialpolicyfornon-profitorganizationincomeexemptionfromcorporateincometaxaccordingtoArticle26,Item4oftheEnterpriseIncomeTaxLawofthePeople'sRepublicofChinaandArticle84andArticle85ofRegulationsfortheImplementationoftheEnterpriseIncomeTaxLawofthePeople'sRepublicofChinaandCS(2018)No.13.TheWholly-ownedsubsidiaryHuilinInternational,whichisregisteredinHainanPilotFreeZoneandoperatestheencouragedindustry,payscorporateincometaxatareducedtaxrateof15%accordingtoAnnouncementoftheMinistryofFinanceandtheStateTaxationAdministrationontheCorporateIncomeTaxPreferentialPoliciesofHainanPilotFreeZone(AnnouncementNo.31[2020]oftheMinistryofFinanceandtheStateTaxationAdministration)TheWholly-ownedsubsidiaryTianpingInternationalofHuilinInternationalisregisteredinSingaporeandpaysthecorporateincometaxatarateof17%inaccordancewiththeIncomeTaxofSingapore(Chapter134).TheenterpriseincometaxrateofQimingApparel,thewholly-ownedsubsidiaryofLibraInternational,is20%basedontheprovisionsoftheTaxLawofKingdomofCambodiaonincometax.Thewholly-ownedsubsidiaryofLibraInternational-LuAnGarmentsCo.,Ltd.shallenjoythepreferenceofenterpriseincometaxat3years’startingterm+2years’duty-freeterm+4years’half-taxtermaccordingtotheinvestmentlicenseissuedbyVietnameseAnjiangProvinceEconomicZoneManagementCommittee,anditwillenterintoduty-freetermiftheprofitabilityisrealizedatanyyearwithin3years’startingterm.TheCompanyshallenjoy17%ofthepreferencetaxratewithin10yearssincethetaxyeartogetthefirstproductionandoperationincome,andtheenterpriseincometaxrateshallbe20%afterthepreferencetermends.Year2022isthesecondyearofthehalvingcollectionperiod.Thewholly-ownedsubsidiaryofTianpingInternational-VientianeTextileshallenjoythepreferenceofenterpriseincometaxatthreeyears'startingterm+twoyears'duty-freeterm+fouryears'half-taxtermaccordingtotheinvestmentlicenseissuedbytheVietnameseTayNinhIndustrialZoneManagementCommittee,anditwillenterintotwoyears'duty-freetermifitisprofitablewithinthreeyears'startingterm.TheCompanyshallenjoy17%ofthepreferencetaxratewithintenyearssincethetaxyeartogetthefirstproductionandoperationincome,andtheenterpriseincometaxrateshallbe20%afterthepreferencetermends.Theyear2022isthefirstyearofpreparationterm.
VII.NotestoMainItemsofConsolidatedFinancialStatements
1.MonetaryAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Cashonhand | 9,920,694.07 | 3,475,164.56 |
| Bankdeposits | 1,913,994,743.52 | 1,994,544,688.81 |
| Othermonetaryfunds | 1,873,689.98 | 1,693,035.98 |
| Total | 1,925,789,127.57 | 1,999,712,889.35 |
| Ofwhich:totalamountdepositedoverseas | 432,837,387.28 | 124,950,227.06 |
Othernotes:
(1)OnJune30,2022,themonetaryassetswithrestrictedownershipwereofRMB1,873,689.98,whichwastheelectricityfeeguaranteeofUSD197,230.08(equivalenttoRMB1,323,689.98)fortheCompany'ssubsidiaryContinentalTextile,andthecashdepositforL/CofRMB550,000.00forthesubsidiaryLulianNewMaterials.
(2)TheinterestreceivableinbankdepositswasRMB2,526,362.77.
2.TradingFinancialAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Financialassetsatfairvaluethroughprofitorloss | 288,418,520.36 | 1,727,000.00 |
| Ofwhich: | ||
| Debtinstrumentinvestment | 286,005,570.79 | |
| Derivativefinancialassets | 2,412,949.57 | 1,727,000.00 |
| Ofwhich: | ||
| Total | 288,418,520.36 | 1,727,000.00 |
Othernotes:
Amongtradingfinancialassets,debtinstrumentinvestmentwasthepurchasedWMproducts,andderivativefinancialassetsweretheforwardforeignexchange.
3.NotesReceivable
(1)NotesReceivableListedbyCategory
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Bankacceptancebill | 79,099,275.06 | 129,359,621.79 |
| Commercialacceptancebill | 121,492.55 | |
| L/C | 148,297,968.25 | 98,259,133.55 |
| Total | 227,397,243.31 | 227,740,247.89 |
Unit:RMB
| Category | Endingbalance | Beginningbalance | ||||||||
| Carryingamount | Baddebtprovision | Carryingvalue | Carryingamount | Baddebtprovision | Carryingvalue | |||||
| Amount | Proportion | Amount | Withdrawalproportion | Amount | Proportion | Amount | Withdrawalproportion | |||
| Ofwhich: | ||||||||||
| Notesreceivableofbaddebtprovisionwithdrawnbygroups | 227,397,243.31 | 100.00% | 227,397,243.31 | 227,746,642.23 | 100.00% | 6,394.34 | 227,740,247.89 | |||
| Ofwhich: | ||||||||||
| Tradeacceptance | 0.00 | 0.00% | 127,886.89 | 0.06% | 6,394.34 | 5.00% | 121,492.55 | |||
| BankacceptancebillandL/C | 227,397,243.31 | 100.00% | 227,397,243.31 | 227,618,755.34 | 99.94% | 227,618,755.34 | ||||
| Total | 227,397,243.31 | 100.00% | 0.00 | 0.00% | 227,397,243.31 | 227,746,642.23 | 100.00% | 6,394.34 | 0.00% | 227,740,247.89 |
Pleaserefertotherelevantinformationofdisclosureofbaddebtprovisionofotheraccountsreceivableifadoptingthegeneralmodeofexpectedcreditlosstowithdrawbaddebtprovisionofnotesreceivable.
□ApplicableNotapplicable?
(2)BadDebtProvisionWithdrawal,ReversedorRecoveredintheReportingPeriod
Withdrawalofbaddebtprovision:
Unit:RMB
| Category | Beginningbalance | ChangesintheReportingPeriod | Endingbalance | |||
| Withdrawal | Reversedorrecovered | Verification | Others | |||
| Tradeacceptance | 6,394.34 | -6,394.34 | 0.00 | |||
| Total | 6,394.34 | -6,394.34 | 0.00 | 0.00 | 0.00 | 0.00 |
Ofwhichsignificantamountofrecoveredortransferred-backbaddebtprovisionforthecurrentperiod:
□ApplicableNotapplicable?
(3)NotesReceivablewhichHadEndorsedbytheCompanyorHadDiscountedandHadnotDueontheBalanceSheetDateatthePeriod-end
Unit:RMB
| Item | Amountofrecognitionterminationattheperiod-end | Amountofnotterminatedrecognitionattheperiod-end |
| Bankacceptancebill | 61,415,840.30 |
| Total | 61,415,840.30 |
4.AccountsReceivable
(1)ListedbyCategory
Unit:RMB
| Category | Endingbalance | Beginningbalance | ||||||||
| Carryingamount | Baddebtprovision | Carryingvalue | Carryingamount | Baddebtprovision | Carryingvalue | |||||
| Amount | Proportion | Amount | Withdrawalproportion | Amount | Proportion | Amount | Withdrawalproportion | |||
| AccountsreceivablewithdrawalofBaddebtprovisionseparatelyaccrued | 4,963,849.32 | 0.70% | 4,963,849.32 | 100.00% | 2,179,970.77 | 0.31% | 2,179,970.77 | 100.00% | 0.00 | |
| Ofwhich: | ||||||||||
| Accountsreceivablewithdrawalofbaddebtprovisionofbygroup | 707,314,799.51 | 99.30% | 40,073,811.87 | 5.67% | 667,240,987.64 | 692,042,157.38 | 99.69% | 44,764,958.87 | 6.47% | 647,277,198.51 |
| Ofwhich: | ||||||||||
| Undueaccounts(creditinsuranceinsured) | 269,217,570.63 | 37.80% | 2,826,784.49 | 1.05% | 266,390,786.14 | 99,484,489.32 | 14.33% | 1,044,587.17 | 1.05% | 98,439,902.15 |
| Undueaccounts(nocreditinsurance) | 331,478,752.17 | 46.54% | 16,573,937.62 | 5.00% | 314,904,814.55 | 508,102,078.32 | 73.19% | 25,405,103.98 | 5.00% | 482,696,974.34 |
| Overdueaccounts(creditinsuranceinsured) | 47,421,050.20 | 6.66% | 5,074,052.37 | 10.70% | 42,346,997.83 | 20,932,298.93 | 3.02% | 2,239,755.99 | 10.70% | 18,692,542.94 |
| Overdueaccounts(nocreditinsurance) | 59,197,426.51 | 8.31% | 15,599,037.38 | 26.35% | 43,598,389.13 | 63,523,290.81 | 9.15% | 16,075,511.73 | 25.31% | 47,447,779.08 |
| Total | 712,278,648.83 | 100.00% | 45,037,661.19 | 6.32% | 667,240,987.64 | 694,222,128.15 | 100.00% | 46,944,929.64 | 6.76% | 647,277,198.51 |
Baddebtprovisionseparatelyaccrued:June30,2022
Unit:RMB
| Name | Endingbalance | |||
| Carryingamount | Baddebtprovision | Withdrawalproportion | Reasonforwithdraw | |
| Customer1 | 1,289,803.43 | 1,289,803.43 | 100.00% | Customer'sapplicationforbankruptcyprotection |
| Customer2 | ||||
| Customer3 | 2,627,179.62 | 2,627,179.62 | 100.00% | Customer'sapplicationforbankruptcyprotection |
| Othercustomers | 1,046,866.27 | 1,046,866.27 | 100.00% | Customerinfinancialdifficultyorapplicationforbankruptcy |
| Total | 4,963,849.32 | 4,963,849.32 | ||
Withdrawalofbaddebtprovisionbygroup:June30,2022
Unit:RMB
| Name | Endingbalance | ||
| Carryingamount | Baddebtprovision | Withdrawalproportion | |
| Group1:Undueaccounts(creditinsuranceinsured) | 269,217,570.63 | 2,826,784.49 | 1.05% |
| Group2:Undueaccounts(nocreditinsurance) | 331,478,752.17 | 16,573,937.62 | 5.00% |
| Group3:Overdueaccounts(creditinsuranceinsured) | 47,421,050.20 | 5,074,052.37 | 10.70% |
| Group4:Overdueaccounts(nocreditinsurance) | 59,197,426.51 | 15,599,037.38 | 26.35% |
| Total | 707,314,799.51 | 40,073,811.87 | |
Pleaserefertotherelevantinformationofdisclosureofbaddebtprovisionofotheraccountsreceivableifadoptingthegeneralmodeofexpectedcreditlosstowithdrawbaddebtprovisionofaccountsreceivable.
□ApplicableNotapplicable?Disclosurebyaging
Unit:RMB
| Aging | Endingbalance |
| Within1year(including1year) | 694,105,190.79 |
| 1to2years | 5,034,730.69 |
| 2to3years | 10,986,508.26 |
| Over3years | 2,152,219.09 |
| 3to4years | 1,802,381.63 |
| 4to5years | 349,837.46 |
| Total | 712,278,648.83 |
(2)BadDebtProvisionWithdrawal,ReversedorRecoveredintheReportingPeriod
Withdrawalofbaddebtprovision:
Unit:RMB
| Category | Beginningbalance | ChangesintheReportingPeriod | Endingbalance | |||
| Withdrawal | Reversedorrecovered | Verification | Others | |||
| Baddebtprovisionseparatelyaccrued | 2,179,970.77 | 2,783,878.55 | 4,963,849.32 | |||
| Withdrawalofbaddebtprovisionbygroup | 44,764,958.87 | -4,181,679.73 | 509,467.27 | 40,073,811.87 | ||
| Total | 46,944,929.64 | -1,397,801.18 | 0.00 | 509,467.27 | 0.00 | 45,037,661.19 |
(3)AccountsReceivableWritten-offinCurrentPeriod
Unit:RMB
| Item | Written-offamount |
| Written-offaccountsreceivable | 509,467.27 |
(4)Top5oftheEndingBalanceoftheAccountsReceivableCollectedaccordingtoArrearsParty
Unit:RMB
| Nameoftheentity | Endingbalance | Proportiontototalendingbalanceofaccountsreceivable | Endingbalanceofbaddebtprovision |
| Aggregateamountoftop5ofaccountsreceivableofendingbalancecollectedbyarrearsparty | 201,805,029.14 | 28.33% | 8,014,244.04 |
| Total | 201,805,029.14 | 28.33% |
5.AccountsReceivableFinancing
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| NotesReceivable | 40,563,083.51 | 35,042,339.23 |
| Less:Othercomprehensiveincome-fairvaluechange | -237,547.15 | -379,267.35 |
| Total | 40,325,536.36 | 34,663,071.88 |
ThechangesofaccountsreceivablefinancingintheReportingPeriodandthechangesinfairvalue
□ApplicableNotapplicable?Pleaserefertotherelevantinformationofdisclosureofbaddebtprovisionofotheraccountsreceivableifadoptingthegeneralmodeofexpectedcreditlosstowithdrawbaddebtprovisionofaccountsreceivablefinancing.
□ApplicableNotapplicable?
6.Prepayment
(1)PrepaymentListedbyAgingAnalysis
Unit:RMB
| Aging | Endingbalance | Beginningbalance | ||
| Amount | Proportion | Amount | Proportion | |
| Within1year | 80,853,968.25 | 98.21% | 54,395,566.77 | 99.72% |
| 1to2years | 1,426,555.72 | 1.73% | 80,046.79 | 0.15% |
| 2to3years | 7,991.81 | 0.01% | 57,065.73 | 0.10% |
| Over3years | 37,000.53 | 0.04% | 13,274.91 | 0.02% |
| Total | 82,325,516.31 | 54,545,954.20 | ||
(2)Top5PrepaymentinEndingBalanceCollectedaccordingtothePrepaymentTarget
Thetotaltop5prepaymentinendingbalancecollectedaccordingtotheprepaymenttargetfortheCompanywasRMB54,586,308.67,accountingfor66.31%oftotalendingbalanceofprepayment.
7.OtherAccountsReceivable
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Dividendreceivable | 18,563,298.40 | 47,025,975.44 |
| Otherreceivables | 30,552,260.30 | 27,165,637.78 |
| Total | 49,115,558.70 | 74,191,613.22 |
(1)DividendReceivable
1)DividendReceivableClassification
Unit:RMB
| Project(orinvestee) | Endingbalance | Beginningbalance |
| Sanchangproject | 19,540,314.10 | 49,501,026.78 |
| Less:baddebtprovision | -977,015.70 | -2,475,051.34 |
| Total | 18,563,298.40 | 47,025,975.44 |
2)SignificantDividendsReceivableAgingover1Year
Unit:RMB
| Project(orinvestee) | Endingbalance | Aging | Reason | Whetheroccurredimpairmentanditsjudgmentbasis |
| Sanchangproject | 19,540,314.10 | 1to2years | Collectinaccordancewithagreeddividendpaymentplan | Notpastdue |
| Total | 19,540,314.10 |
3)WithdrawalofBadDebtProvision
?Applicable□Notapplicable
Unit:RMB
| Baddebtprovision | Firststage | Secondstage | Thirdstage | Total |
| Expectedcreditlossinthenext12months | Expectedlossintheduration(creditimpairmentnotoccurred) | Expectedlossintheduration(creditimpairmentoccurred) | ||
| BalanceofJanuary1,2022, | 2,475,051.34 | 2,475,051.34 | ||
| Balanceof1January2022intheCurrentPeriod | ||||
| WithdrawaloftheCurrentPeriod | -1,498,035.64 | -1,498,035.64 | ||
| BalanceofJune30,2022 | 977,015.70 | 977,015.70 |
ChangesofcarryingamountwithsignificantamountchangedoflossprovisionintheCurrentPeriod
□ApplicableNotapplicable?
(2)OtherAccountsReceivable
1)OtherReceivablesClassifiedbyCategory
Unit:RMB
| Nature | Endingcarryingamount | Beginningcarryingamount |
| Exportrebates | 4,603,780.67 | 1,384,112.79 |
| VATtobereturned | 8,375,554.18 | 8,486,685.52 |
| Paymentonbehalf | 12,215,286.56 | 11,917,827.00 |
| Guaranteedepositandcashdeposit | 5,678,315.63 | 6,586,697.20 |
| Borrowingsandpettycash | 1,711,381.56 | 1,051,186.48 |
| Others | 1,538,908.54 | 402,457.40 |
| Total | 34,123,227.14 | 29,828,966.39 |
2)WithdrawalofBadDebtProvision
Unit:RMB
| Baddebtprovision | Firststage | Secondstage | Thirdstage | Total |
| Expectedcreditlossinthenext12months | Expectedlossintheduration(creditimpairmentnotoccurred) | Expectedlossintheduration(creditimpairmentoccurred) | ||
| BalanceofJanuary1,2022, | 1,357,763.63 | 1,305,564.98 | 2,663,328.61 | |
| Balanceof1January2022intheCurrentPeriod | ||||
| WithdrawaloftheCurrentPeriod | 135,666.13 | 771,972.10 | 907,638.23 | |
| BalanceofJune30,2022 | 1,493,429.76 | 2,077,537.08 | 0.00 | 3,570,966.84 |
ChangesofcarryingamountwithsignificantamountchangedoflossprovisionintheCurrentPeriod
□ApplicableNotapplicable?Disclosurebyaging
Unit:RMB
| Aging | Endingbalance |
| Within1year(including1year) | 28,186,049.04 |
| 1to2years | 1,277,127.27 |
| 2to3years | 816,397.44 |
| Over3years | 3,843,653.39 |
| 3to4years | 300.00 |
| 4to5years | 115,926.86 |
| Over5years | 3,727,426.53 |
| Total | 34,123,227.14 |
3)BadDebtProvisionWithdrawn,ReversedorRecoveredintheReportingPeriod
Withdrawalofbaddebtprovision:
Unit:RMB
| Category | Beginningbalance | ChangesintheReportingPeriod | Endingbalance | |||
| Withdrawal | Reversedorrecovered | Verification | Others | |||
| Expectedcreditlossofthenext12monthsatthefirststage | 1,357,763.63 | 135,666.13 | 1,493,429.76 | |||
| Expectedlossintheduration(creditimpairmentnotoccurred)atthesecondstage | 1,305,564.98 | 771,972.10 | 2,077,537.08 | |||
| Expectedlossintheduration(creditimpairmentoccurred)atthethirdstage | 0.00 | |||||
| Total | 2,663,328.61 | 907,638.23 | 0.00 | 0.00 | 0.00 | 3,570,966.84 |
4)Top5OtherAccountsReceivableinEndingBalanceCollectedaccordingtotheArrearsParty
Unit:RMB
| Nameoftheentity | Nature | Endingbalance | Aging | Proportiontototalendingbalanceofotherreceivables% | Endingbalanceofbaddebtprovision |
| VATreceivabletobereturnedfromPolarisApparel | InputVAT | 6,690,060.63 | Within1year | 19.61% | 334,503.03 |
| Withholdingandremittingofpersonalendowmentinsurance | Advancemoney | 4,726,991.26 | Within1year | 13.85% | 236,349.56 |
| Receivableexportrebates | Exportrebates | 4,603,780.66 | Within1year | 13.49% | 230,189.03 |
| VATreceivabletobereturnedfromContinentalTextile | InputVAT | 1,685,493.55 | Within1year | 4.94% | 823,026.50 |
| Withholdingandremittingofpersonalhousingprovidentfund | Advancemoney | 1,187,642.10 | Within1year | 3.48% | 59,382.11 |
| Total | 18,893,968.20 | 55.37% | 1,683,450.23 |
8.Inventory
WhethertheCompanyneedstocomplywiththedisclosurerequirementsfortherealestateindustryNo
(1)CategoryofInventory
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Depreciationreservesofinventoriesorimpairmentprovisionforcontractperformancecosts | Carryingvalue | Carryingamount | Depreciationreservesofinventoriesorimpairmentprovisionforcontractperformancecosts | Carryingvalue | |
| Rawmaterials | 1,121,436,489.44 | 41,184,702.18 | 1,080,251,787.26 | 928,078,106.34 | 17,925,640.41 | 910,152,465.93 |
| Goodsinprocess | 529,722,583.05 | 13,872,192.02 | 515,850,391.03 | 611,695,332.97 | 2,538,846.30 | 609,156,486.67 |
| Inventorygoods | 1,125,277,677.22 | 158,326,260.80 | 966,951,416.42 | 939,550,089.36 | 143,767,058.72 | 795,783,030.64 |
| Assignedprocessingproducts | 16,875,738.64 | 16,875,738.64 | 30,254,811.04 | 30,254,811.04 | ||
| Goodsintransit | ||||||
| Total | 2,793,312,488.35 | 213,383,155.00 | 2,579,929,333.35 | 2,509,578,339.71 | 164,231,545.43 | 2,345,346,794.28 |
(2)FallingPriceReservesofInventoryandImpairmentReservesforContractPerformanceCosts
Unit:RMB
| Item | Beginningbalance | Increasedamountofthecurrentperiod | Decreasedamountforthecurrentperiod | Endingbalance | ||
| Withdrawal | Others | Transferred-backorcharged-off | Others | |||
| Rawmaterials | 17,925,640.41 | 23,194,917.86 | 64,143.91 | 41,184,702.18 | ||
| Goodsinprocess | 2,538,846.30 | 11,333,345.72 | 13,872,192.02 | |||
| Inventorygoods | 143,767,058.72 | 44,941,609.33 | 1,374,147.79 | 31,756,555.04 | 158,326,260.80 | |
| Total | 164,231,545.43 | 79,469,872.91 | 1,438,291.70 | 31,756,555.04 | 213,383,155.00 | |
9.OtherCurrentAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Othertax | 18,754,999.39 | 53,076,859.19 |
| Prepaidincometax | 653,486.60 | 2,589,285.09 |
| Prepaidothertaxes | 1,577.18 | 126,618.09 |
| Convertiblebrokenlotfund | 199,689.59 | 199,760.44 |
| Payoutcashdeposit | 9,039,411.18 | |
| Total | 28,649,163.94 | 55,992,522.81 |
10.Long-termEquityInvestment
Unit:RMB
| Investee | Beginningbalance(carryingvalue) | Increase/decreaseforthecurrentperiod | EndingBalance(CarryingValue) | Endingbalanceofdepreciationreser | |||||||
| Additionalin | Reducedinvestment | Gainsandlossesrecognizedundertheequitymethod | Adjustmentofothercomprehensiveinco | Changesofotherequity | Cashbonusorprofitsannouncedto | Withdrawalofimpairmentprov | Others | ||||
| vestment | me | issue | ision | ve | |||||||
| I.Jointventures | |||||||||||
| II.Associatedenterprises | |||||||||||
| NingboMeishanBondedPortAreaHaohongEquityInvestmentPartnership(L.P)(hereinafterreferredtoas“HaohongInvestment”) | 67,657,626.65 | 594,388.64 | 68,252,015.29 | ||||||||
| NingboHaoyingEquityInvestmentPartnership(L.P)(hereinafterreferredtoas“HaoyingInvestment”) | 101,785,480.01 | 13,323,521.50 | -1,671,328.13 | 86,790,630.38 | |||||||
| Subtotal | 169,443,106.66 | 13,323,521.50 | -1,076,939.49 | 155,042,645.67 | |||||||
| Total | 169,443,106.66 | 13,323,521.50 | -1,076,939.49 | 155,042,645.67 | |||||||
11.OtherNon-currentFinancialAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Equityinstrumentinvestment | 178,052,000.00 | 178,052,000.00 |
| Financialassetsassignedmeasuredbyfairvalueandthechangesbeincludedinthecurrentgainsandlosses | 12,000,000.00 | 12,000,000.00 |
| Total | 190,052,000.00 | 190,052,000.00 |
12.InvestmentProperty
(1)InvestmentPropertyAdoptingtheCostMeasurementMode?Applicable□Notapplicable
Unit:RMB
| Item | Housesandbuildings | Landuseright | Constructioninprogress | Total |
| I.Originalcarryingvalue |
| 1.Beginningbalance | 33,577,852.12 | 33,577,852.12 | |
| 2.Increasedamountforthecurrentperiod | |||
| (1)Outsourcing | |||
| (2)Transferfrominventory/fixedassets/constructioninprogress | |||
| (3)Businesscombinationincrease | |||
| 3.Decreasedamountforthecurrentperiod | |||
| (1)Disposal | |||
| (2)Othertransfer | |||
| 4.Endingbalance | 33,577,852.12 | 33,577,852.12 | |
| II.Accumulativedepreciationandaccumulativeamortization | |||
| 1.Beginningbalance | 12,215,550.09 | 12,215,550.09 | |
| 2.Increasedamountforthecurrentperiod | 450,683.41 | 450,683.41 | |
| (1)Withdrawaloramortization | 450,683.41 | 450,683.41 | |
| (2)Fixedassetcarrieddown | 0.00 | ||
| 3.Decreasedamountforthecurrentperiod | |||
| (1)Disposal | |||
| (2)Othertransfer | |||
| 4.Endingbalance | 12,666,233.50 | 12,666,233.50 | |
| III.Depreciationreserves | |||
| 1.Beginningbalance | |||
| 2.Increasedamountforthecurrentperiod | |||
| (1)Withdrawal | |||
| 3.Decreasedamountforthecurrentperiod | |||
| (1)Disposal | |||
| (2)Othertransfer | |||
| 4.Endingbalance | |||
| IV.Carryingvalue | |||
| 1.Endingcarryingvalue | 20,911,618.62 | 20,911,618.62 | |
| 2.Beginningcarryingvalue | 21,362,302.03 | 21,362,302.03 |
(2)InvestmentPropertyAdoptingtheFairValueMeasurementMode
□ApplicableNotapplicable?
13.FixedAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Fixedassets | 5,542,475,634.61 | 5,559,649,164.65 |
| LiquidationofPP&E | 1,952,209.79 | |
| Total | 5,542,475,634.61 | 5,561,601,374.44 |
(1)ListofFixedAssets
Unit:RMB
| Item | Housesandbuildings | Machineryequipment | Transportationequipment | Electronicequipmentandothers | Total |
| I.Originalcarryingvalue: | |||||
| 1.Beginningbalance | 3,400,996,650.73 | 7,004,146,023.55 | 48,665,620.78 | 130,151,497.42 | 10,583,959,792.48 |
| 2.Increasedamountforthecurrentperiod | 94,284,710.41 | 157,269,303.00 | 2,029,878.78 | 4,401,678.21 | 257,985,570.40 |
| (1)Purchase | 0.00 | 90,430,998.86 | 1,537,041.06 | 2,074,513.37 | 94,042,553.29 |
| (2)Transferfromconstructioninprogress | 50,703,854.73 | 5,328,594.56 | 2,016,684.27 | 58,049,133.56 | |
| (3)Businesscombinationincrease | 0.00 | ||||
| (4)Otherincrease | 43,580,855.68 | 61,509,709.58 | 492,837.72 | 310,480.57 | 105,893,883.55 |
| 3.Decreasedamountforthecurrentperiod | 0.00 | 55,463,368.77 | 202,581.48 | 3,462,751.26 | 59,128,701.51 |
| (1)Disposalorscrap | 0.00 | 55,463,368.77 | 202,581.48 | 3,462,751.26 | 59,128,701.51 |
| (2)Transferfromconstructioninprogress | 0.00 | ||||
| (3)Transferfrominvestmentproperties | 0.00 | ||||
| (4)Otherdecrease | 0.00 | ||||
| 4.Endingbalance | 3,495,281,361.14 | 7,105,951,957.78 | 50,492,918.08 | 131,090,424.37 | 10,782,816,661.37 |
| II.Accumulativedepreciation | |||||
| 1.Beginningbalance | 1,090,800,777.05 | 3,758,383,265.78 | 35,811,352.62 | 106,782,812.91 | 4,991,778,208.36 |
| 2.Increasedamountforthecurrentperiod | 65,242,834.76 | 172,424,273.02 | 2,698,181.37 | 6,395,148.00 | 246,760,437.16 |
| (1)Withdrawal | 58,737,019.84 | 156,997,526.76 | 2,387,829.86 | 5,811,749.51 | 223,934,125.97 |
| (2)OtherIncreases | 6,505,814.92 | 15,426,746.26 | 310,351.51 | 583,398.49 | 22,826,311.18 |
| 3.Decreasedamountforthecurrentperiod | 0.00 | 27,398,569.19 | 194,028.51 | 3,179,639.17 | 30,772,236.87 |
| (1)Disposalorscrap | 0.00 | 27,398,569.19 | 194,028.51 | 3,179,639.17 | 30,772,236.87 |
| (2)Transferfromconstructioninprogress | 0.00 | ||||
| (3)Transferfrominvestmentproperties | 0.00 | ||||
| (4)Otherdecrease | 0.00 | ||||
| 4.Endingbalance | 1,156,043,611.81 | 3,903,408,969.61 | 38,315,505.48 | 109,998,321.74 | 5,207,766,408.64 |
| III.Depreciationreserves | |||||
| 1.Beginningbalance | 429,416.16 | 32,029,934.70 | 5,671.30 | 67,397.31 | 32,532,419.47 |
| 2.Increasedamountforthecurrentperiod | 2,225,865.39 | 2,225,865.39 | |||
| (1)Withdrawal | 2,225,865.39 | 2,225,865.39 | |||
| 3.Decreasedamountforthecurrentperiod | 2,183,666.74 | 0.00 | 2,183,666.74 | ||
| (1)Disposalorscrap | 2,183,666.74 | 2,183,666.74 | |||
| 4.Endingbalance | 429,416.16 | 32,072,133.35 | 5,671.30 | 67,397.31 | 32,574,618.12 |
| IV.Carryingvalue | |||||
| 1.Endingcarryingvalue | 2,338,808,333.17 | 3,170,470,854.82 | 12,171,741.30 | 21,024,705.32 | 5,542,475,634.61 |
| 2.Beginningcarryingvalue | 2,309,766,457.52 | 3,213,732,823.07 | 12,848,596.86 | 23,301,287.20 | 5,559,649,164.65 |
(2)FixedAssetsLeasedoutbyOperationLease
Unit:RMB
| Item | Endingcarryingamount |
| Housesandbuildings | 3,567,753.54 |
(3)FixedAssetsFailedtoAccomplishCertificationofProperty
Unit:RMB
| Item | Carryingvalue | Reason |
| Lufengweavingdyegrayyarnwarehouse | 10,634,025.48 | Undertherelevantcertificateproceduresofacceptance,measurement,examinationbytherealestatetradingcenterandotherdepartments |
(4)ProceedsfromDisposalofFixedAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Boilerandancillaryequipment | 0.00 | 1,952,209.79 |
| Total | 1,952,209.79 |
14.ConstructioninProgress
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Constructioninprogress | 149,057,760.69 | 157,651,325.17 |
| Engineeringmaterials | 125,505,782.67 | 79,927,757.82 |
| Total | 274,563,543.36 | 237,579,082.99 |
(1)ListofConstructioninProgress
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Depreciationreserves | Carryingvalue | Carryingamount | Depreciationreserves | Carryingvalue | |
| ReformprojectofXinshengThermalPower | 29,566,437.06 | 29,566,437.06 | 33,240,957.43 | 33,240,957.43 | ||
| WanxiangTextileproductionlineprojectofdyeing | 945,151.23 | 945,151.23 | ||||
| Garmentproject(PhaseIII)ofPolarisApparel | 22,880,584.81 | 22,880,584.81 | ||||
| FunctionalFabricIntelligentEcologicalParkProjectPhaseI | 71,895,051.83 | 71,895,051.83 | 84,984,974.35 | 84,984,974.35 | ||
| Othersmallprojects | 23,770,535.76 | 23,770,535.76 | 39,425,393.39 | 39,425,393.39 | ||
| Total | 149,057,760.69 | 0.00 | 149,057,760.69 | 157,651,325.17 | 0.00 | 157,651,325.17 |
(2)ChangesinSignificantConstructioninProgressduringtheReportingPeriod
Unit:RMB
| ProjectName | Budget | Beginningbalance | Increasedamountofthecurrentperiod | Transferredinfixedassets | Otherdecreasedamountforthecurrentperiod | Endingbalance | Proportionofaccumulatedinvestmentinconstructionstobudget | Jobschedule | Accumulatedamountofinterestcapitalization | Ofwhich:amountofcapitalizedinterestsfortheReportingPeriod | CapitalizationrateofinterestsfortheReportingPeriod | Capitalresources |
| ReformprojectofXinshengThermalPower | 54,380,000.00 | 33,240,957.43 | 5,434,085.26 | 9,108,605.63 | 29,566,437.06 | 53.00% | 53.00% | Others | ||||
| WanxiangTextileproductionlineprojectofdyeing | 251,800,800.00 | 945,151.23 | 945,151.23 | 0.38% | 0.38% | Others | ||||||
| Garmentproject(PhaseIII)ofPolarisApparel | 22,915,236.38 | 22,880,584.81 | 22,880,584.81 | 99.85% | 98.00% | Others | ||||||
| FunctionalFabricIntelligentEcologicalParkProjectPhaseI | 217,211,000.00 | 84,984,974.35 | 12,569,920.70 | 25,659,843.22 | 71,895,051.83 | 125.37% | 96.00% | 11,637,936.90 | 4,895,619.99 | 3.68% | Raisedthroughequityoffering | |
| Othersmallprojects | 39,425,393.39 | 6,070,022.91 | 23,280,684.71 | -1,555,804.17 | 23,770,535.76 | Others | ||||||
| Total | 546,307,036.38 | 157,651,325.17 | 47,899,764.91 | 58,049,133.56 | -1,555,804.17 | 149,057,760.69 | 11,637,936.90 | 4,895,619.99 |
(3)EngineeringMaterials
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Depreciationreserves | Carryingvalue | Carryingamount | Depreciationreserves | Carryingvalue | |
| Specialmaterials | ||||||
| Specialequipment | 125,505,782.67 | 125,505,782.67 | 79,927,757.82 | 0.00 | 79,927,757.82 | |
| Total | 125,505,782.67 | 125,505,782.67 | 79,927,757.82 | 79,927,757.82 | ||
15.Right-of-useAssets
Unit:RMB
| Item | Housesandbuildings | Landuseright | Total |
| I.Originalcarryingvalue | |||
| 1.Beginningbalance | 72,736,899.29 | 202,823,352.74 | 275,560,252.03 |
| 2.Increasedamountforthecurrentperiod | 578,462.96 | 228,789,463.05 | 229,367,926.01 |
| (1)Rent | 535,874.95 | 221,291,770.33 | 221,827,645.28 |
| (2)LeaseLiabilitiesAdjustment | |||
| (3)OtherIncrease | 42,588.01 | 7,497,692.72 | 7,540,280.73 |
| 3.Decreasedamountforthecurrentperiod | 424,514.97 | 0.00 | 424,514.97 |
| (1)SubleaseisaFinancialLease | |||
| (2)TransferorHoldforSale | |||
| (3)OtherDecreasess | 424,514.97 | 424,514.97 | |
| 4.Endingbalance | 72,890,847.28 | 431,612,815.79 | 504,503,663.07 |
| II.Accumulativedepreciation | |||
| 1.Beginningbalance | 11,227,086.37 | 7,313,879.51 | 18,540,965.88 |
| 2.Increasedamountforthecurrentperiod | 6,340,517.34 | 2,843,401.74 | 9,183,919.08 |
| (1)Withdrawal | 6,310,238.62 | 2,677,865.33 | 8,988,103.95 |
| (2)OtherIncreases | 30,278.72 | 165,536.41 | 195,815.13 |
| 3.Decreasedamountforthecurrentperiod | 424,514.97 | 0.00 | 424,514.97 |
| (1)Disposal | 424,514.97 | 424,514.97 | |
| (2)OtherDecreases | |||
| 4.Endingbalance | 17,143,088.74 | 10,157,281.25 | 27,300,369.99 |
| III.Depreciationreserves | |||
| 1.Beginningbalance | |||
| 2.Increasedamountforthecurrentperiod | |||
| (1)Withdrawal | |||
| 3.Decreasedamountforthecurrentperiod |
| (1)Disposal | |||
| 4.Endingbalance | |||
| IV.Carryingvalue | |||
| 1.Endingcarryingvalue | 55,747,758.54 | 421,455,534.54 | 477,203,293.08 |
| 2.Beginningcarryingvalue | 61,509,812.92 | 195,509,473.23 | 257,019,286.15 |
16.Intangibleassets
(1)Listofintangibleassets
Unit:RMB
| Item | Landuseright | Patentright | Non-patenttechnologies | Softwareuserights | Branduserights | Total |
| I.Originalcarryingvalue | ||||||
| 1.Beginningbalance | 470,338,494.00 | 409,550.00 | 2,131,387.36 | 472,879,431.36 | ||
| 2.Increasedamountforthecurrentperiod | 106,529.15 | 106,529.15 | ||||
| (1)Purchase | 99,115.05 | 99,115.05 | ||||
| (2)InternalR&D | ||||||
| (3)Businesscombinationincrease | ||||||
| (4)Otherincrease | 7,414.10 | 7,414.10 | ||||
| 3.Decreasedamountforthecurrentperiod | 425,337.91 | 425,337.91 | ||||
| (1)Disposal | ||||||
| (2)Invalidandrecognitionterminatedportion | 425,337.91 | 425,337.91 | ||||
| 4.Endingbalance | 470,338,494.00 | 409,550.00 | 1,812,578.60 | 472,560,622.60 | ||
| II.Accumulatedamortization | ||||||
| 1.Beginningbalance | 108,346,465.36 | 30,716.28 | 1,371,271.58 | 109,748,453.22 | ||
| 2.Increasedamountforthecurrentperiod | 5,048,199.62 | 20,477.63 | 433,780.23 | 5,502,457.48 | ||
| (1)Withdrawal | 5,048,199.62 | 20,477.63 | 431,864.88 | 5,500,542.13 | ||
| (2)OtherIncreases | 1,915.35 | 1,915.35 | ||||
| 3.Decreasedamountforthecurrentperiod | 485,809.89 | 485,809.89 | ||||
| (1)Disposal |
| (2)Invalidandrecognitionterminatedportion | 485,809.89 | 485,809.89 | ||||
| 4.Endingbalance | 113,394,664.98 | 51,193.91 | 1,319,241.92 | 114,765,100.81 | ||
| III.Depreciationreserves | ||||||
| 1.Beginningbalance | ||||||
| 2.Increasedamountforthecurrentperiod | ||||||
| (1)Withdrawal | ||||||
| 3.Decreasedamountforthecurrentperiod | ||||||
| (1)Disposal | ||||||
| 4.Endingbalance | ||||||
| IV.Carryingvalue | ||||||
| 1.Endingcarryingvalue | 356,943,829.02 | 358,356.09 | 493,336.68 | 357,795,521.79 | ||
| 2.Beginningcarryingvalue | 361,992,028.64 | 378,833.72 | 760,115.78 | 363,130,978.14 |
TheproportionofintangibleassetsformedfromtheinternalR&DoftheCompanyatthePeriod-endtotheendingbalanceofintangibleassetswas0.00%.
17.Developmentcosts
Unit:RMB
| Item | Beginningbalance | Increasedamountofthecurrentperiod | Decreasedamountforthecurrentperiod | Endingbalance | ||
| Item | Beginningbalance | Internaldevelopmentcosts | Others | Recognizedasintangibleassets | Transferredintothecurrentprofitorloss | Endingbalance |
| R&Dofproducts | 114,951,241.87 | 114,951,241.87 | ||||
| Total | 114,951,241.87 | 114,951,241.87 | ||||
18.Goodwill
(1)OriginalCarryingValueofGoodwill
Unit:RMB
| Nameoftheinvestedunitsoreventsgeneratinggoodwill | Beginningbalance | Increaseforthecurrentperiod | Decreaseforthecurrentperiod | Endingbalance |
| Nameoftheinvestedunitsoreventsgeneratinggoodwill | Beginningbalance | Formedbybusinesscombination | Disposal | Endingbalance |
| XinshengPower | 20,563,803.29 | 20,563,803.29 | ||
| Total | 20,563,803.29 | 20,563,803.29 |
19.Long-termPrepaidExpense
Unit:RMB
| Item | Beginningbalance | Increasedamountofthecurrentperiod | Amortizationamountofthecurrentperiod | Otherdecreasedamount | Endingbalance |
| Decorationfee | 672,601.04 | 1,748,157.25 | 472,368.37 | 1,948,389.92 | |
| Technicalservicecharges | 114,974.00 | 17,688.30 | 97,285.70 | ||
| Total | 672,601.04 | 1,863,131.25 | 490,056.67 | 2,045,675.62 |
20.DeferredIncomeTaxAssets/DeferredIncomeTaxLiabilitie
(1)DeferredIncomeTaxAssetsHadNotBeenOff-set
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||
| Deductibletemporarydifferences | Deferredincometaxassets | Deductibletemporarydifferences | Deferredincometaxassets | |
| Provisionforimpairmentofassets | 208,828,922.12 | 32,282,072.55 | 211,902,261.84 | 32,571,574.68 |
| Internalunrealizedprofit | 184,295,358.69 | 28,108,326.24 | 154,652,429.83 | 23,546,803.59 |
| Deductiblelosses | 157,150,423.74 | 31,454,320.95 | 125,211,374.31 | 23,469,558.56 |
| Payrollpayable | 62,871,779.73 | 9,443,195.07 | 62,871,779.73 | 9,443,195.07 |
| Deferredincome | 163,150,430.33 | 25,513,848.94 | 188,769,454.53 | 31,627,668.49 |
| Contractliabilities | 51,142,001.01 | 12,785,500.25 | 50,555,810.44 | 12,638,952.61 |
| Changesinfairvalueofothernon-currentfinancialassets | 160,000.00 | 24,000.00 | 160,000.00 | 24,000.00 |
| Changesinfairvalueoftradingfinancialliabilities | 3,582,000.00 | 537,300.00 | 0.00 | 0.00 |
| Thechangesofaccountsreceivablefinancinginfairvalue | 237,547.15 | 35,632.07 | 379,267.35 | 58,968.83 |
| Operatingleases | 3,105,101.77 | 486,827.11 | 3,105,101.78 | 486,827.11 |
| Restrictedstockincentivefees | 30,990,583.74 | 4,648,587.56 | 30,990,583.74 | 4,648,587.56 |
| Total | 865,514,148.28 | 145,319,610.74 | 828,598,063.55 | 138,516,136.50 |
(2)DeferredIncomeTaxLiabilitiesHadNotBeenOff-set
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Taxabletemporarydifference | Deferredincometaxliabilities | Taxabletemporarydifference | Deferredincometaxliabilities | |
| Depreciationoffixedassets | 488,302,796.89 | 77,789,293.61 | 462,125,128.72 | 74,185,425.08 |
| Internalunrealizedprofit | 0.00 | 0.00 | 0.00 | 0.00 |
| Changesinfairvalueoftradingfinancialassets | 6,005,570.79 | 905,560.35 | 1,727,000.00 | 259,050.00 |
| Changesinfairvalueofothernon-currentfinancialassets | 120,845,567.06 | 18,126,835.06 | 120,845,567.06 | 18,126,835.06 |
| Interestpayableofinvestmentindebtobligations | 0.00 | 0.00 | 0.00 | 0.00 |
| Total | 615,153,934.74 | 96,821,689.02 | 584,697,695.78 | 92,571,310.14 |
(3)DeferredIncomeTaxAssetsorLiabilitiesHadBeenOff-setListedinNetAmount
Unit:RMB
| Item | Endingoff-setamountofdeferredincometaxassetsandliabilities | Endingbalanceofdeferredincometaxassetsandliabilities | Beginningoff-setamountofdeferredincometaxassetsandliabilities | Beginningbalanceofdeferredincometaxassetsandliabilities |
| Deferredincometaxassets | 145,319,610.74 | 138,516,136.50 | ||
| Deferredincometaxliabilities | 96,821,689.02 | 92,571,310.14 |
(4)ListofUnrecognizedDeferredIncomeTaxAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Deductibletemporarydifferences | 91,778,320.43 | 9,031,432.71 |
| Deductiblelosses | 120,863,363.31 | 73,702,292.27 |
| Total | 212,641,683.74 | 82,733,724.98 |
(5)DeductibleLossesofUnrecognizedDeferredIncomeTaxAssetswillDueintheFollowingYears
Unit:RMB
| Year | Endingamount | Beginningamount | Notes |
| 2023 | |||
| 2024 | 1,344.62 | 1,344.62 | |
| 2025 | 584,842.87 | 584,842.87 | |
| 2026 | 73,116,104.78 | 73,116,104.78 | |
| 2027 | 47,161,071.04 |
| Total | 120,863,363.31 | 73,702,292.27 |
21.OtherNon-currentAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Depreciationreserves | Carryingvalue | Carryingamount | Depreciationreserves | Carryingvalue | |
| Prepaymentforlandtransferfee | 0.00 | 0.00 | 214,131,583.94 | 214,131,583.94 | ||
| Prepaymentforequipment | 23,267,167.25 | 23,267,167.25 | 11,691,427.91 | 11,691,427.91 | ||
| Termdepositsover1year | 351,000,000.00 | 351,000,000.00 | 351,000,000.00 | 351,000,000.00 | ||
| Interestreceivablefromtermdepositsover1year | 14,178,984.24 | 14,178,984.24 | 9,260,296.40 | 9,260,296.40 | ||
| Total | 388,446,151.49 | 388,446,151.49 | 586,083,308.25 | 586,083,308.25 | ||
22.Short-termBorrowings
(1)CategoryofShort-termBorrowings
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Guaranteeloan | 59,363,353.27 | 238,770,866.65 |
| Creditloan | 1,200,102,650.08 | 772,263,271.67 |
| Total | 1,259,466,003.35 | 1,011,034,138.32 |
Notesofthecategoryforshort-termloans:
(1)TheendingguaranteeloanwastheguaranteeprovidedforthebankloanofthesubsidiaryContinentalTextilebytheCompany.RefertoNoteXIV-2fordetails.
(2)Theshort-termborrowingincludesinterestpayableofRMB897,155.03.
23.Tradingfinancialliabilities
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Tradingfinancialliabilities | 3,622,489.80 | |
| Ofwhich: | ||
| Derivativefinancialliabilities | 3,622,489.80 |
| Ofwhich: | |
| Total | 3,622,489.80 |
24.Notespayable
Unit:RMB
| Category | Endingbalance | Beginningbalance |
| Bankacceptancebill | 55,450,000.00 | |
| Total | 55,450,000.00 |
ThetotalamountofnotespayableduebutunpaidwasRMBXXX.
25.AccountsPayable
(1)Listofaccountspayable
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Paymentforgoods | 80,155,029.96 | 217,076,555.49 |
| Engineeringequipment | 64,786,561.37 | 73,998,453.07 |
| Others | 32,110,383.53 | 44,326,362.74 |
| Total | 177,051,974.86 | 335,401,371.30 |
26.ContractLiabilities
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Advancefromsales | 167,618,149.81 | 218,008,930.11 |
| Less:contractliabilityrecordedinothercurrentliabilities | -7,898,920.88 | -13,041,581.15 |
| Total | 159,719,228.93 | 204,967,348.96 |
27.PayrollPayable
(1)Listofpayrollpayable
Unit:RMB
| Item | Beginningbalance | Increaseforthecurrentperiod | Decreaseforthecurrentperiod | Endingbalance |
| I.Short-termsalary | 271,168,796.78 | 634,688,453.68 | 679,841,504.23 | 226,015,746.23 |
| II.Post-employmentbenefit-definedcontributionplans | 845,499.31 | 62,357,605.62 | 62,734,803.56 | 468,301.37 |
| III.Terminationbenefits | 686,990.96 | 686,990.96 | 0.00 | |
| Total | 272,014,296.09 | 697,733,050.26 | 743,263,298.75 | 226,484,047.60 |
(2)ListofShort-termSalary
Unit:RMB
| Item | Beginningbalance | Increaseforthecurrentperiod | Decreaseforthecurrentperiod | Endingbalance |
| 1.Salary,bonus,allowance,subsidy | 213,722,481.75 | 557,837,133.00 | 606,353,246.09 | 165,206,368.66 |
| 2.Employeewelfare | 0.00 | 27,265,863.93 | 27,265,863.93 | 0.00 |
| 3.Socialinsurance | 440,389.54 | 32,077,671.88 | 32,316,614.50 | 201,446.92 |
| Ofwhich:Medicalinsurancepremiums | 398,996.08 | 28,730,835.58 | 28,956,312.08 | 173,519.58 |
| Work-relatedinjuryinsurancepremiums | 41,081.00 | 3,344,873.54 | 3,358,427.66 | 27,526.88 |
| Maternityinsurance | 312.46 | 1,962.76 | 1,874.76 | 400.46 |
| 4.Housingfund | 0.00 | 7,112,711.60 | 7,112,711.60 | 0.00 |
| 5.Laborunionbudgetandemployeeeducationbudget | 57,005,925.49 | 10,395,073.27 | 6,793,068.11 | 60,607,930.65 |
| Total | 271,168,796.78 | 634,688,453.68 | 679,841,504.23 | 226,015,746.23 |
(3)Listofdefinedcontributionplans
Unit:RMB
| Item | Beginningbalance | Increaseforthecurrentperiod | Decreaseforthecurrentperiod | Endingbalance |
| 1.Basicpensioninsurance | 810,454.21 | 59,673,670.38 | 60,032,894.03 | 451,230.56 |
| 2.Unemploymentinsurancepremiums | 35,045.10 | 2,683,935.24 | 2,701,909.53 | 17,070.81 |
| Total | 845,499.31 | 62,357,605.62 | 62,734,803.56 | 468,301.37 |
28.TaxesPayable
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| VAT | 12,876,033.98 | 5,534,817.32 |
| Enterpriseincometax | 45,655,345.73 | 8,173,413.58 |
| Personalincometax | 3,118,665.03 | 607,463.91 |
| Urbanmaintenanceandconstructiontax | 3,330,294.72 | 3,645,871.40 |
| Stampduty | 279,144.11 | 320,584.10 |
| Realestatetax | 5,048,467.15 | 5,200,898.00 |
| Landusetax | 2,558,596.46 | 2,651,253.23 |
| Educationalfee | 1,476,886.59 | 1,585,262.09 |
| Localeducationsurcharge | 984,591.06 | 1,056,841.39 |
| Localwaterconservancyfacilityconstructionfund | ||
| Taxonnaturalresources | 163,008.00 | 179,258.00 |
| Environmentalprotectiontax | 184,074.02 | 502,039.70 |
| Total | 75,675,106.85 | 29,457,702.72 |
29.OtherPayables
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Dividendspayable | 441,113.64 | 441,113.64 |
| Otherpayables | 89,208,753.73 | 96,759,451.67 |
| Total | 89,649,867.37 | 97,200,565.31 |
(1)Dividendspayable
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Dividendspayabletoindividualshareholders | 441,113.64 | 441,113.64 |
| Total | 441,113.64 | 441,113.64 |
(2)OtherPayables
1)Otherpayableslistedbynature
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Depositsandcashdepositsetc. | 5,914,424.40 | 4,544,176.56 |
| Collectingpaymentonbehalfofothers | 2,169,707.82 | 3,148,636.19 |
| Intercoursefunds | 2,102,138.44 | |
| Restrictedstockrepurchaseobligations | 67,684,900.00 | 78,908,300.00 |
| Others | 11,337,583.07 | 10,158,338.92 |
| Total | 89,208,753.73 | 96,759,451.67 |
30.CurrentPortionofNon-currentLiabilities
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Long-termborrowingsmaturedwithin1year | 8,800,000.00 | 8,500,000.00 |
| Leaseobligationmaturedwithin1year | 389,916.44 | 377,404.52 |
| Bondinterestpayablematuredwithin1year | ||
| Total | 9,189,916.44 | 8,877,404.52 |
31.Othercurrentliabilities
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Taxtobechargedoff | 7,898,920.88 | 13,041,581.15 |
| Demolitioncompensationreceived | ||
| Endorsedunduebillundernon-derecognition | 50,529,744.26 | 107,393,140.66 |
| Total | 58,428,665.14 | 120,434,721.81 |
32.Long-termBorrowings
(1)Categoryoflong-termborrowings
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Creditloan | 694,139,710.99 | 693,462,473.24 |
| Less:currentportionoflong-termborrowings | -8,800,000.00 | -8,500,000.00 |
| Total | 685,339,710.99 | 684,962,473.24 |
Notetothecategoryoflong-termborrowings:
Thelong-termborrowingincludesinterestpayableofRMB659,710.99.Othernotes,includinginterestraterange:
| Item | Endingbalance | Interestraterange(%) | Beginningbalance | Interestraterange(%) |
| Guaranteeloan | 0.00 | 0.00 | ||
| Creditloan | 694,139,710.99 | 2.90-3.65 | 693,462,473.24 | 3.06-3.65 |
33.BondsPayable
(1)Bondspayable
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Convertiblecorporatebonds | 1,412,196,548.55 | 1,395,480,652.71 |
| Total | 1,412,196,548.55 | 1,395,480,652.71 |
(2)Changesofbondspayable(excludingotherfinancialinstrumentsdividedasfinancialliabilitiessuchaspreferredsharesandperpetualbonds)
Unit:RMB
| Name | Parvalue | Issuedate | Bondduration | Issueamount | Beginningbalance | IssuedintheReportingPeriod | Interestaccruedatparvalue | Amortizationofpremiumanddepreciation | RepaidintheReportingPeriod | Currentsharesconverted | Endingbalance |
| LuThaiConvertibleBond127016 | 1,400,000,000.00 | 9April2020 | 6 | 1,400,000,000.00 | 1,395,480,652.71 | 5,438,108.90 | 19,693,174.25 | 8,399,187.31 | 16,200.00 | 1,412,196,548.55 | |
| Total | —— | 1,400,000,000.00 | 1,395,480,652.71 | 5,438,108.90 | 19,693,174.25 | 8,399,187.31 | 16,200.00 | 1,412,196,548.55 | |||
(3)Notestotheconditionsandtimeofthesharestransferoftheconvertiblecorporatebonds
AccordingtotheApprovalofthePublicIssueofConvertibleCorporateBondsofLuThaiTextileCo.,Ltd.(ZH.J.X.K[2020]No.299)oftheChinaSecuritiesRegulatoryCommission,theCompanyissued14millionconvertiblebondswithafacevalueofRMB100eachforatotalissueamountofRMB1.4billionwithamaturityof6years,i.e.from9April2020to8April2026.ThecouponratesoftheconvertiblebondsissuedbytheCompanyare0.3%,0.6%,1%,1.5%,1.8%and2%inthefollowingorderfromthefirststagetothesixthstage,withinterestpayableannually.Theconversionperiodshallcommencefrom(and
include)thefirsttradingdayon15October2020,sixmonthsafterthedateofissue,andshallendon(andinclude)thetradingdaypriortothematuritydateoftheconvertiblebonds(8April2026).Holdersmayapplyforconversionduringtheconversionperiod.TheinitialconversionpriceofconvertiblecorporatebondswasRMB9.01persharewhenitwasissuedbutwasadjustedtoRMB8.91persharesinceJuly9,2020,aftertheCompanyimplementedthe2019profitsharingagreementonJuly8,2020.AftertheCompanyimplementedtherestrictedstockincentiveplanin2021,thepricewasadjustedtoRMB8.76pershareaccordinglysinceJune7,2021.Upontheimplementationofthe2020profitsharingagreementbytheCompanyonJune18,2021,itwasadjustedtoRMB8.71pershareaccordinglyagainsinceJune18,2021.March22,2022wasdesignatedasthelistingdateofreservedrestrictedstocksoftheCompany,sincewhichitwasadjustedtoRMB8.68pershareaccordingly.Upontheimplementationofthe2021profitsharingagreementbytheCompanyonJune23,2022,itwasadjustedtoRMB8.61pershareaccordinglyagainsinceJune23,2022.
34.Leaseobligation
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Leasepayments | 147,312,721.04 | 160,713,545.55 |
| Unrecognizedfinancingcosts | -36,467,210.39 | -38,978,482.62 |
| Less:Currentportionofleaseliabilities | -389,916.44 | -377,404.52 |
| Total | 110,455,594.21 | 121,357,658.41 |
35.Long-termPayrollPayable
(1)Listoflong-termpayrollpayable
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| III.Otherlong-termwelfare | 45,933,262.13 | 57,384,062.39 |
| Total | 45,933,262.13 | 57,384,062.39 |
36.DeferredIncome
Unit:RMB
| Item | Beginningbalance | Increaseforthecurrentperiod | Decreaseforthecurrentperiod | Endingbalance | Reasonforformation |
| Governmentgrants | 188,958,133.78 | 25,619,024.20 | 163,339,109.58 | Governmentgrants | |
| Total | 188,958,133.78 | 25,619,024.20 | 163,339,109.58 |
37.ShareCapital
Unit:RMB
| Beginningbalance | Increase/decrease(+/-) | Endingbalance | |||||
| Newsharesissued | Bonusshares | Sharesconvertedfromcapitalreserve | Others | Subtotal | |||
| Totalshares | 882,341,295.00 | 5,838,000.00 | -238,144.00 | 5,599,856.00 | 887,941,151.00 | ||
Othernotes:
(1)Inlinewiththeresolutionofthe30thsessionoftheNinthBoardofDirectorsoftheCompanyonFebruary18,2022andthe18thsessionoftheNinthBoardofSupervisors,theCompanygrantedincentivepersonnelreservedrestrictedstocksunderthe2021incentiveplanandaddedcapitalofRMB5,838,000.ThischangeinsharecapitalhasbeenauditedbyZhitongAccountingFirm(SpecialGeneralPartnership)andthecapitalverificationreportZ.T.Y.Z.(2022)No.371C000125wasissuedonMarch14,2022.
(2)Inconformitywiththeresolutionofthe30thsessionoftheNinthBoardofDirectorsoftheCompanyonFebruary18,2022,theProposalonRepurchaseandCancelAuthorizedbutUnlockedRestrictedShareoftheIncentivePersonnelnotConformingtotheIncentiveCondition,allthe240,000sharesauthorizedtotheoriginalincentivepersonnelwhodidnotconformtotheincentiveconditionoftheCompanywererepurchasedandcanceled.ThischangeinsharecapitalhasbeenauditedbyZhitongAccountingFirm(SpecialGeneralPartnership)andthecapitalverificationreportZ.T.Y.Z.(2022)No.371C000232wasissuedonMay6,2022.
(3)Atotalof1,856.00sharesofconvertiblebondsoftheCompanycanbeconvertedintheReportingPeriod.
38.OtherEquityInstruments
(1)BasicInformationaboutOtherOutstandingFinancialInstrumentssuchasPreferredSharesandPerpetualBondsatthePeriod-endOn9April2020,theCompanypubliclyissued14millionA-shareconvertiblecorporatebonds(shortname:LuthaiConvertibleBonds,bondcode:127016)onShenzhenStockExchangewithanissuepriceofRMB100pershare.ThebondswerelistedonShenzhenStockExchangeon13May2020.
(2)ChangesofOutstandingFinancialInstrumentssuchasPreferredSharesandPerpetualBondsatthePeriod-end
Unit:RMB
| Outstandingfinancialinstruments | Opening | Increaseforthecurrentperiod | Decreaseforthecurrentperiod | Closing | ||||
| Number | Carryingvalue | Number | Carryingvalue | Number | Carryingvalue | Number | Carryingvalue | |
| Convertiblebondstoequity | 71,384,656.84 | 826.09 | 71,383,830.75 | |||||
| Total | 71,384,656.84 | 826.09 | 71,383,830.75 | |||||
Othernotes:
Thedecreaseinotherequityinstrumentsfortheperiodisduetotheconvertibledebt-for-equityswap.
39.CapitalReserves
Unit:RMB
| Item | Beginningbalance | Increaseforthecurrentperiod | Decreaseforthecurrentperiod | Endingbalance |
| Capitalpremium(premiumonstock) | 253,645,214.89 | 42,448,973.13 | 542,400.00 | 295,551,788.02 |
| Othercapitalreserves | 86,942,172.76 | 24,125,798.38 | 27,488,860.00 | 83,579,111.14 |
| Total | 340,587,387.65 | 66,574,771.51 | 28,031,260.00 | 379,130,899.16 |
Othernotes,includingadescriptionoftheincreaseordecreaseforthecurrentperiodandthereasonsforthechange:
(1)Inconformitywiththeresolutionofthe30thsessionoftheNinthBoardofDirectorsoftheCompanyonFebruary18,2022andthe18thsessionoftheNinthBoardofSupervisors,theCompanygrantedincentivepersonnelreservedrestrictedstocksunderthe2021incentiveplan,addedthecapitalofRMB5,838,000andincreasedthecapitalreserve-capitalpremiumbyRMB14,945,280.00.Inconformitywiththeresolutionofthe30thsessionoftheNinthBoardofDirectorsoftheCompanyonFebruary18,2022,theProposalonRepurchaseandCancelAuthorizedbutUnlockedRestrictedShareoftheIncentivePersonnelnotConformingtotheIncentiveCondition,allthe240,000sharesauthorizedtotheoriginalincentivepersonnelwhodidnotconformtotheincentiveconditionoftheCompanywererepurchasedandcanceled,reducingthecapitalreserve-capitalpremiumbyRMB542,400.00.
(2)Inconformitywiththeresolutionofthe33rdsessionoftheNinthBoardofDirectorsoftheCompanyonMay24,2022andthe20thsessionoftheNinthBoardofSupervisors,theCompanyprocessedthemattersofliftingrestrictionson9,578,000restrictedstocks,reducedthecapitalreserve-othercapitalreservebyRMB27,488,860.00andincreasedthecapitalreserve-capitalpremiumbyRMB27,488,860.00.
(3)Itwasrecognizedthatthecapitalreserve-othercapitalreservearisingfromtherestrictedstockincentivefeesincreasedbyRMB24,125,738.72intheReportingPeriod.
(3)Thecapitalreserves—capitalpremiumarisingfromtheconversionofconvertiblebondsincreasedbyRMB14,833.13intheReportingPeriod.
40.Treasurystocks
Unit:RMB
| Item | Beginningbalance | Increaseforthecurrentperiod | Decreaseforthecurrentperiod | Endingbalance |
| Restrictedstockrepurchase | 78,908,300.00 | 20,783,280.00 | 32,006,680.00 | 67,684,900.00 |
| Total | 78,908,300.00 | 20,783,280.00 | 32,006,680.00 | 67,684,900.00 |
Othernotes,includingadescriptionoftheincreaseordecreaseforthecurrentperiodandthereasonsforthechange:
TheCompanyrecognizedtherestrictedstockrepurchaseobligationsandincreasedthetreasurystocksbyRMB20,783,280.00.
(2)TheCompanysatisfiedtheunlockingconditionsofrestrictedstocks,chargedofftherepurchaseobligationsandreducedthetreasurystocksbyRMB32,006,680.
41.Othercomprehensiveincome
Unit:RMB
| Item | Beginningbalance | Amountofthecurrentperiod | Endingbalance | |||||
| Amountbeforedeductingincometaxforthecurrentperiod | Less:recordedinothercomprehensiveincomeinpriorperiodandtransferredinprofitorlossintheCurrentPeriod | Less:recordedinothercomprehensiveincomeinpriorperiodandtransferredinretainedearningsintheCurrentPeriod | Less:Incometaxexpense | AttributabletotheCompanyastheparentaftertax | Attributableminorityshareholdersaftertax | |||
| II.Othercomprehensiveincomethatmaysubsequentlybereclassifiedtoprofitorloss | -36,423,748.37 | 80,914,408.11 | 23,336.76 | 80,891,071.35 | 44,467,322.98 | |||
| Differencesarisingfromtranslationofforeigncurrency-denominatedfinancialstatements | -36,155,406.95 | 80,772,687.91 | 80,772,687.91 | 44,617,280.96 | ||||
| Thechangesofaccountsreceivablefinancinginfairvalue | -268,341.42 | 141,720.20 | 23,336.76 | 118,383.44 | -149,957.98 | |||
| Totalofothercomprehensiveincome | -36,423,748.37 | 80,914,408.11 | 23,336.76 | 80,891,071.35 | 44,467,322.98 | |||
42.Surplusreserves
Unit:RMB
| Item | Beginningbalance | Increaseforthecurrentperiod | Decreaseforthecurrentperiod | Endingbalance |
| Statutorysurplusreserves | 1,211,782,763.96 | 1,211,782,763.96 | ||
| Discretionalsurplusreserves | 3,341,572.58 | 3,341,572.58 | ||
| Total | 1,215,124,336.54 | 0.00 | 0.00 | 1,215,124,336.54 |
43.Retainedprofits
Unit:RMB
| Item | Currentperiod | Sameperiodoflastyear |
| Beginningbalanceofretainedprofitsbeforeadjustments | 5,589,201,772.37 | 5,346,819,948.22 |
| Beginningbalanceofretainedprofitsafteradjustments | 5,589,201,772.37 | 5,346,819,948.22 |
| Add:NetprofitattributabletoownersoftheCompanyastheparent | 393,950,852.46 | 153,497,344.66 |
| Dividendsofcommonsharespayable | 62,155,872.45 | 44,120,990.40 |
| Endingretainedprofits | 5,920,996,752.38 | 5,456,196,302.48 |
Listofadjustmentofbeginningretainedprofits:
1)RMB0.00beginningretainedprofitswasaffectedbyretrospectiveadjustmentconductedaccordingtotheAccountingStandardsforBusinessEnterprisesandrelevantnewregulations.
2)RMB0.00beginningretainedprofitswasaffectedbychangesinaccountingpolicies.
3)RMB0.00beginningretainedprofitswasaffectedbycorrectionofsignificantaccountingerrors.
4)RMB0.00beginningretainedprofitswasaffectedbychangesincombinationscopearisingfromsamecontrol.
5)RMB0.00beginningretainedprofitswasaffectedtotallybyotheradjustments.
44.Operatingrevenueandcostofsales
Unit:RMB
| Item | Amountofthecurrentperiod | Amountofthepreviousperiod | ||
| Revenue | Cost | Revenue | Cost | |
| Principalbusiness | 3,192,795,600.27 | 2,393,341,282.26 | 2,156,443,129.95 | 1,763,955,459.16 |
| Others | 137,498,862.98 | 103,991,759.33 | 63,870,520.99 | 47,286,284.04 |
| Total | 3,330,294,463.25 | 2,497,333,041.59 | 2,220,313,650.94 | 1,811,241,743.20 |
Informationaboutperformanceobligations:NoneInformationinrelationtothetransactionpriceapportionedtotheresidualcontractperformanceobligation:
AsattheendoftheReportingPeriod,therevenueamountcorrespondingtothecontractperformanceobligationyettobefulfilledoryettobecompletedunderasignedcontractisRMB0.00,includingRMB0.00expectedtoberecognizedasrevenuein0,RMB
0.00expectedtoberecognizedasrevenuein0,andRMB0.00expectedtoberecognizedasrevenuein0.
45.Taxesandsurtaxes
Unit:RMB
| Item | Amountofthecurrentperiod | Amountofthepreviousperiod |
| Urbanmaintenanceandconstructiontax | 9,776,946.60 | 6,283,128.18 |
| Educationalfee | 4,171,872.08 | 2,695,603.21 |
| Taxonnaturalresources | 269,306.00 | 236,902.00 |
| Realestatetax | 10,096,302.07 | 10,055,281.39 |
| Landusetax | 5,119,280.86 | 5,120,956.62 |
| Vehicleandvesselusagetax | 48,152.44 | 49,025.98 |
| Stampduty | 1,777,082.23 | 1,427,573.40 |
| Localeducationsurcharge | 2,781,248.07 | 1,797,068.80 |
| Localwaterconservancyfacilityconstructionfund | 0.00 | -102,200.92 |
| Environmentalprotectiontax | 461,067.66 | 594,788.21 |
| Total | 34,501,258.01 | 28,158,126.87 |
Othernotes:
PleaserefertoNoteVI.Taxesfordetailsofvarioustaxesandadditionalstandardsforcalculationandpayment.
46.Sellingexpense
Unit:RMB
| Item | Amountofthecurrentperiod | Amountofthepreviousperiod |
| Salary | 34,521,119.07 | 24,817,866.24 |
| Marketingexpense | 15,812,366.09 | 13,898,356.44 |
| Depreciationcharge | 3,352,693.87 | 2,919,396.85 |
| Officeoperatingfee | 4,537,454.44 | 5,228,400.21 |
| Others | 1,670,717.57 | 1,682,775.32 |
| Total | 59,894,351.04 | 48,546,795.06 |
47.Administrativeexpense
Unit:RMB
| Item | Amountofthecurrentperiod | Amountofthepreviousperiod |
| Salary | 93,534,860.68 | 34,322,960.21 |
| Depreciationcharge | 18,872,138.30 | 20,441,508.41 |
| Warehousefunding | 19,455,536.27 | 17,942,419.24 |
| Travelexpense | 12,135,020.70 | 12,190,687.06 |
| Labor-unionexpenditure | 6,143,835.05 | 5,802,625.03 |
| Employeeeducationbudget | 4,312,539.39 | 4,210,543.12 |
| Amortizationofintangibleassets | 5,805,244.20 | 6,143,216.69 |
| Carriagecharges | 3,275,956.40 | 3,094,038.89 |
| Others | 26,745,012.58 | 25,970,047.75 |
| Total | 190,280,143.57 | 130,118,046.40 |
48.R&Dexpense
Unit:RMB
| Item | Amountofthecurrentperiod | Amountofthepreviousperiod |
| Laborcost | 66,198,913.29 | 77,616,982.58 |
| Materialexpense | 31,344,635.57 | 36,220,227.08 |
| Depreciationcharge | 9,209,535.98 | 6,279,523.70 |
| Others | 8,198,157.03 | 11,267,750.44 |
| Total | 114,951,241.87 | 131,384,483.80 |
49.Financialcosts
Unit:RMB
| Item | Amountofthecurrentperiod | Amountofthepreviousperiod |
| Financecosts | 55,026,837.64 | 39,272,113.66 |
| Less:Capitalizedinterestexpense | 10,810,250.47 | 10,299,292.35 |
| Interestincome | 28,264,778.38 | 14,562,127.13 |
| Add:Capitalizedinterestincome | 5,914,630.48 | |
| Exchangegainorloss | -98,749,158.07 | 5,910,962.13 |
| Less:Capitalizedforeignexchangegainsorlosses | ||
| Others | 4,949,236.76 | 3,901,272.97 |
| Total | -71,933,482.03 | 24,222,929.28 |
50.Otherincome
Unit:RMB
| Sources | Amountofthecurrentperiod | Amountofthepreviousperiod |
| Governmentgrants | 2,101,748.17 | 14,851,875.95 |
| Transferofdeferredincome | 25,619,024.20 | 4,237,435.16 |
| Total | 27,720,772.37 | 19,089,311.11 |
51.Investmentincome
Unit:RMB
| Item | Amountofthecurrentperiod | Amountofthepreviousperiod |
| Long-termequityinvestmentincomeaccountedbyequitymethod | -1,076,939.49 | -1,789,070.68 |
| Investmentincomefromdisposaloftradingfinancialassets | 2,525,510.87 | 24,904,879.52 |
| Interestincomeearnedoninvestmentindebtobligationsduringtheholdingperiod | 6,065,699.38 | |
| Total | 1,448,571.38 | 29,181,508.22 |
52.Gainonchangesinfairvalue
Unit:RMB
| Sources | Amountofthecurrentperiod | Amountofthepreviousperiod |
| TradingFinancialAssets | 6,691,520.36 | 8,034,224.66 |
| Ofwhich:Incomefromchangesinfairvaluegeneratedbyderivativefinancialinstruments | 685,949.57 | 9,840,800.00 |
| Tradingfinancialliabilities | -3,622,489.80 | |
| Total | 3,069,030.56 | 8,034,224.66 |
53.Creditimpairmentloss
Unit:RMB
| Item | Amountofthecurrentperiod | Amountofthepreviousperiod |
| Baddebtlossofotherreceivables | -907,638.23 | -211,404.00 |
| Baddebtlossofnotesreceivable("-"indicatesloss) | 6,394.34 | -87,833.04 |
| Baddebtlossofaccountsreceivable("-"indicatesloss) | 1,397,801.18 | 11,414,377.16 |
| Baddebtlossofdividendsreceivable("-"indicatesloss) | 1,498,035.64 | 1,498,035.63 |
| Total | 1,994,592.93 | 12,613,175.75 |
54.Assetimpairmentloss
Unit:RMB
| Item | Amountofthecurrentperiod | Amountofthepreviousperiod |
| II.Inventoryfallingpricelossandimpairmentprovisionforcontractperformancecosts | -79,469,872.91 | -7,035,233.41 |
| V.Impairmentlossonfixedassets | -2,225,865.39 | |
| Total | -81,695,738.30 | -7,035,233.41 |
55.Assetdisposalincome
Unit:RMB
| Sources | Amountofthecurrentperiod | Amountofthepreviousperiod |
| Fixedassetdisposalincome(“-”forloss) | 3,069,030.56 | 39,092,642.32 |
| Intangibleassetdisposalincome(“-”forloss) | 19,438,746.10 | |
| Total | 3,069,030.56 | 58,531,388.42 |
56.Non-operatingincome
Unit:RMB
| Item | Amountofthecurrentperiod | Amountofthepreviousperiod | Amountrecordedinthecurrentnon-recurringprofitorloss |
| Gainsondamageandscrapofnon-currentassets | 28,052.73 | ||
| Others | 2,998,200.73 | 1,184,008.01 | |
| Total | 3,026,253.46 | 1,184,008.01 |
57.Non-operatingexpense
Unit:RMB
| Item | Amountofthecurrentperiod | Amountofthepreviousperiod | Amountrecordedinthecurrentnon-recurringprofitorloss |
| Donation | 1,067,708.86 | 2,012,051.62 | |
| Others | 1,097,430.80 | 577,877.31 | |
| Total | 2,165,139.66 | 2,589,928.93 |
58.Incometaxexpense
(1)ListofIncomeTaxExpense
Unit:RMB
| Item | Amountofthecurrentperiod | Amountofthepreviousperiod |
| Currentincometaxexpense | 70,344,008.61 | 29,081,920.36 |
| Deferredincometaxexpense | -2,576,432.11 | -6,872,687.22 |
| Total | 67,767,576.50 | 22,209,233.14 |
(2)Adjustmentprocessofaccountingprofitandincometaxexpense
Unit:RMB
| Item | Amountofthecurrentperiod |
| Totalprofit | 461,334,275.24 |
| Currentincometaxexpenseaccountedatstatutory/applicabletaxrate | 69,200,141.29 |
| Influenceofapplyingdifferenttaxratesbysubsidiaries | -4,506,291.70 |
| Influenceofincometaxbeforeadjustment | 3,092,064.35 |
| Influenceofnon-deductiblecosts,expensesandlosses | 3,976.10 |
| Effectofdeductibletemporarydifferencesordeductiblelossesondeferredincometaxassetsnotrecognizedintheperiod | 139,227.39 |
| Profit/lossofassociatedenterprisesandjointventuresaccountedbyequitymethod | -161,540.92 |
| Incometaxexpense | 67,767,576.50 |
59.Othercomprehensiveincome
RefertoNoteVII-41fordetails.
60.Cashflowstatement
(1)Cashgeneratedfromotheroperatingactivities
Unit:RMB
| Item | Amountofthecurrentperiod | Amountofthepreviousperiod |
| Governmentgrants | 1,980,644.87 | 21,588,175.95 |
| Claimincome | 1,683,147.72 | 356,171.92 |
| Recoveryofemployeeborrowings,pettycashanddeposit | 7,337,923.73 | 12,429,591.08 |
| Collectionforemployees | 5,216,485.83 | 2,413,849.33 |
| Others | 1,031,855.69 | 3,662,317.53 |
| Total | 17,250,057.84 | 40,450,105.81 |
(2)Cashusedinotheroperatingactivities
Unit:RMB
| Item | Amountofthecurrentperiod | Amountofthepreviousperiod |
| Leaserental | 367,757.50 | 2,387,330.09 |
| Advertisingexpense | 203,882.54 | 605,033.82 |
| Businesstravelcharges | 24,176,311.80 | 15,478,544.40 |
| Insurance | 2,535,111.86 | 2,585,281.80 |
| Servicefees | 7,492,345.81 | 6,023,522.11 |
| Decoration&repairexpenses | 1,853,995.94 | 394,368.44 |
| Donation | 1,005,693.17 | 2,433,466.47 |
| Pre-payment | 4,599,753.95 | 858,305.97 |
| Paymentofemployeeborrowings,pettycashanddeposit | 4,351,232.81 | 15,018,936.57 |
| Others | 23,308,650.21 | 22,427,795.71 |
| Total | 69,894,735.59 | 68,212,585.38 |
(3)Cashgeneratedfromotherinvestingactivities
Unit:RMB
| Item | Amountofthecurrentperiod | Amountofthepreviousperiod |
| Interestincome | 20,657,090.40 | 14,858,805.99 |
| Incomefromforwardforeignexchange | 2,525,510.87 | 23,079,957.05 |
| Returnofguarantees | 1,100,000.00 | |
| Returnoftermdeposits | 8,325,816.11 | |
| Total | 32,608,417.38 | 37,938,763.04 |
(4)Cashusedinotherinvestingactivities
Unit:RMB
| Item | Amountofthecurrentperiod | Amountofthepreviousperiod |
| Termdeposit | 172,545,016.96 | |
| Paymargin | 1,323,689.98 | 2,365,093.84 |
| Total | 173,868,706.94 | 2,365,093.84 |
(5)Cashgeneratedfromotherfinancingactivities
Unit:RMB
| Item | Amountofthecurrentperiod | Amountofthepreviousperiod |
| Returnofloanguarantees | 0.00 | 0.00 |
| Recoveryofintercourseaccounts | 0.00 | 0.00 |
(6)Cashusedinotherfinancingactivities
Unit:RMB
| Item | Amountofthecurrentperiod | Amountofthepreviousperiod |
| Payright-of-useassetsaccounts | 9,179,573.11 | 9,339,306.00 |
| Paypayoutcashdeposit | 9,039,411.18 | |
| Total | 18,218,984.29 | 9,339,306.00 |
61.Supplementalinformationforcashflowstatement
(1)Supplementalinformationforcashflowstatement
Unit:RMB
| Supplementalinformation | Amountduringthecurrentperiod | Sameperiodoflastyear |
| 1.Reconciliationofnetprofittonetcashflowsgeneratedfromoperatingactivities | ||
| NetProfit | 393,566,698.74 | 143,440,747.02 |
| Add:Provisionforimpairmentofassets | 79,701,145.37 | -5,577,942.34 |
| Depreciationoffixedassets,oil-gasassets,andproductivebiologicalassets | 224,384,809.38 | 218,273,154.39 |
| Depreciationofright-of-useassets | 8,988,103.95 | 11,100,529.06 |
| Amortizationofintangibleassets | 5,502,457.48 | 5,624,309.84 |
| Amortizationoflong-termprepaidexpenses | 490,056.67 | 366,873.36 |
| Lossesfromdisposaloffixedassets,intangibleassetsandotherlong-livedassets(gains:negative) | -3,069,030.56 | -58,531,388.42 |
| Lossesfromscrapoffixedassets(gains:negative) | -28,052.73 | 0.00 |
| Lossesfromchangesinfairvalue(gainsrepresentedby"-") | -6,691,520.36 | -8,034,224.66 |
| Financecosts(gains:negative) | -76,882,718.79 | 20,321,656.31 |
| Investmentloss(gainsrepresentedby"-") | -1,448,571.38 | -29,181,508.22 |
| Decreaseindeferredincometaxassets(gains:negative) | -6,803,474.24 | -7,774,846.27 |
| Increaseindeferredincometaxliabilities(“-”meansdecrease) | 4,250,378.88 | 71,198.63 |
| Decreaseininventory(gains:negative) | -283,734,148.64 | -59,506,379.69 |
| Decreaseinaccountsreceivablegeneratedfromoperatingactivities(gainsrepresentedby"-") | 1,860,662.45 | 13,448,642.14 |
| Increaseinaccountspayableusedinoperatingactivities(decreaserepresentedby"-") | -222,604,387.48 | -61,279,796.01 |
| Others | ||
| Netcashflowfromoperatingactivities | 117,482,408.74 | 182,761,025.14 |
| 2.Significantinvestingandfinancingactivitieswithoutinvolvementofcashreceiptsandpayments | ||
| Conversionofdebttocapital | ||
| Convertiblecorporatebondsmaturedwithinoneyear | ||
| Fixedassetunderfinancelease | ||
| 3.Netincrease/decreaseofcashandcashequivalent: | ||
| Closingbalanceofcash | 1,729,633,239.07 | 2,031,646,000.18 |
| Less:Openingbalanceofcash | 1,970,006,884.89 | 1,396,530,407.47 |
| Plus:Closingbalanceofcashequivalents | ||
| Less:Openingbalanceofcashequivalents | ||
| Netincreaseincashandcashequivalents | -240,373,645.82 | 635,115,592.71 |
(2)Cashandcashequivalents
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| I.Cash | 1,729,633,239.07 | 1,970,006,884.89 |
| Including:Cashonhand | 9,920,694.07 | 3,475,164.56 |
| Bankdepositsondemand | 1,719,712,545.00 | 1,966,531,720.33 |
| III.Endingbalanceofcashandcashequivalents | 1,729,633,239.07 | 1,970,006,884.89 |
62.Assetswithrestrictedownershiporrighttouse
Unit:RMB
| Item | Endingcarryingamount | ReasonforRestriction |
| Monetarycapital | 1,873,689.98 | CashdepositforL/GandL/C |
| Othernon-currentassets | 40,000,000.00 | Timedepositcertificatespledge |
| Total | 41,873,689.98 |
63.Foreigncurrencymonetaryitems
(1)Foreigncurrencymonetaryitems
Unit:RMB
| Item | Closingforeigncurrencybalance | Exchangerate | EndingbalanceconvertedtoRMB |
| Monetarycapital | |||
| Ofwhich:USD | 86,698,419.23 | 6.7114 | 581,867,770.79 |
| EUR | 2,148,057.70 | 7.0084 | 15,054,447.58 |
| HKD | 3,789,518.33 | 0.8552 | 3,240,796.08 |
| JPY | 34,021,637.00 | 0.0491 | 1,670,462.38 |
| GBP | 1,957.18 | 8.1365 | 15,924.60 |
| CHF | 137.87 | 7.0299 | 969.21 |
| SEK | |||
| Dong | 870,447,956,273.00 | 0.00029 | 251,027,528.62 |
| MMK | 648,486,252.35 | 0.0036 | 2,355,950.55 |
| Riel | 97,270,639.00 | 0.0016 | 158,183.83 |
| Notesreceivable | |||
| Ofwhich:USD | 22,096,428.20 | 6.7114 | 148,297,968.25 |
| Accountsreceivable | |||
| Ofwhich:USD | 80,759,301.31 | 6.7114 | 542,007,974.80 |
| EUR | 411,444.52 | 7.0084 | 2,883,567.78 |
| HKD | |||
| Dong | 25,813,712,911.00 | 0.00029 | 7,444,388.27 |
| MMK | 14,108,400.00 | 0.0036 | 51,255.82 |
| Otherreceivables | |||
| Ofwhich:USD | 202,535.10 | 6.7114 | 1,359,294.07 |
| JPY | 1,688,430.00 | 0.0491 | 82,901.91 |
| HKD | 1,598,011.12 | 0.8552 | 1,366,619.11 |
| Dong | 2,236,491,468.50 | 0.00029 | 644,979.31 |
| MMK | 1,800,000.00 | 0.0036 | 6,539.40 |
| Accountspayable | |||
| Ofwhich:USD | 4,926,616.83 | 6.7114 | 33,064,496.19 |
| EUR | 325,540.17 | 7.0084 | 2,281,515.73 |
| JPY | 1,867,204.00 | 0.0491 | 91,679.72 |
| Dong | 34,331,649,624.00 | 0.00029 | 9,900,866.67 |
| MMK | 8,205,788.00 | 0.0036 | 29,811.63 |
| Otherpayables | |||
| Ofwhich:USD | 543,698.79 | 6.7114 | 3,648,980.06 |
| Dong | 1,481,185,044.00 | 0.00029 | 427,157.33 |
| MMK | 1,390,000.00 | 0.0036 | 5,049.87 |
| Short-termborrowings | |||
| Ofwhich:USD | 75,468,480.99 | 6.7114 | 506,499,163.32 |
| Dong | 196,512,588,845.00 | 0.00029 | 56,672,049.33 |
| Currentportionoflong-termborrowings | |||
| Ofwhich:USD | 0.00 | ||
| Long-termborrowings | |||
| Ofwhich:USD | |||
| EUR | |||
| HKD |
(2)NotestoOverseasEntitiesIncluding:forSignificantOverseaEntities,MainOperatingPlace,RecordingCurrencyandSelectionBasisShallBeDisclosed;ifthereAreChangesinRecordingCurrency,RelevantReasonsShallBeDisclosed.
?Applicable□NotapplicableTheoperatingplacesoftheCompany'ssubsidiariesLuThai(HongKong),VanguardApparel,LuThai(America),ContinentalTextileaswellassub-subsidiariesLuThaiTanChau,LibraInternational,PolarisApparel,LuAnGarmentsandWanxiangTextilewereHongKong,Burma,America,Vietnam,Vietnam,Singapore,Cambodia,VietnamandVietnam,andtherecordingcurrencywasHKDforLuThai(HongKong)andUSDforotheroverseascompanies.
64.Governmentsubsidy
(1)Basicinformationongovernmentgrants
Unit:RMB
| Category | Amount | Listeditems | Amountrecordedinthecurrentprofitorloss |
| Rewardsforfollow-onoffering | 900,000.00 | Otherincome | 900,000.00 |
| Withholdingandremittingofreturnofhandlingcharges | 303,337.26 | Otherincome | 303,337.26 |
| Provincialspecialfundsforforeigntradeandeconomicdevelopment | 215,200.00 | Otherincome | 215,200.00 |
| EmploymentsubsidyfundsforZibo | 401,355.53 | Otherincome | 401,355.53 |
| Taxreductionandexemption | 161,255.38 | Otherincome | 161,255.38 |
| Subsidyaccountsforvanphase-out | 25,600.00 | Otherincome | 25,600.00 |
| Talentsubsidies | 95,000.00 | Otherincome | 95,000.00 |
| Total | 2,101,748.17 | 2,101,748.17 |
(2)ReturnofGovernmentGrants
□ApplicableNotapplicable?VIII.ChangeofConsolidationScope
1.OtherreasonsforchangesofconsolidationscopeNotesofotherchangesinthecombinationscope(e.g.,newsubsidiaries,liquidationofsubsidiaries,etc.)andrelevantsituations:
Duringtheyear,theCompanyestablishednewasubsidiary,WanxiangTextileCo.,Ltd.
IX.EquityinOtherEntities
1.EquityinSubsidiary
(1)CompositionsoftheGroup
| Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Shareholdingpercentage(%) | Wayofgaining | |
| Directly | Indirectly | |||||
| Luthai(HongKong) | HongKong | HongKong | Wholesaleandretailindustry | 100.00% | Set-up | |
| ShanghaiLuthai | ShanghaiCity | ShanghaiCity | Wholesaleandretailindustry | 100.00% | Set-up | |
| LufengWeaving&Dyeing | Zibo | Zibo | Manufacturingindustry | 75.00% | Set-up | |
| LuqunTextile | Zibo | Zibo | Manufacturingindustry | 100.00% | Set-up | |
| XinshengPower | Zibo | Zibo | Manufacturingindustry | 100.00% | Businesscombinationnotunderthesamecontrol | |
| ShanghaiZhinuo | ShanghaiCity | ShanghaiCity | Technologydevelopment,technicalconsultancyandtransferoftechnologies | 100.00% | Set-up | |
| LulianNewMaterials | Zibo | Zibo | Manufacturingindustry | 75.00% | Set-up | |
| LujiaImport&Export | Zibo | Zibo | Importandexporttrade | 100.00% | Set-up | |
| BeijingZhishu | BeijingCity | BeijingCity | Commercialservices | 100.00% | Set-up | |
| LuThaiOccupationalTrainingSchool | Zibo | Zibo | Skilltraining | 100.00% | Set-up | |
| BanyangVilla | Zibo | Zibo | Catering | 100.00% | Set-up | |
| HuilinInternational | Wenchang | Wenchang | Modernserviceindustry | 100.00% | Set-up | |
| LibraInternational(sub-subsidiary) | Singapore | Singapore | Wholesaletextilesandleather,holdingcompany | 100.00% | Set-up | |
| PolarisApparel(sub-subsidiary) | Cambodia | Cambodia | Manufacturingindustry | 100.00% | Set-up | |
| VanguardApparelCo.,Ltd. | Burma | Burma | Manufacturingindustry | 100.00% | Set-up | |
| LuThai(America) | America | America | Wholesaleandretailindustry | 100.00% | Set-up | |
| ContinentalTextileCo.,Ltd. | Vietnam | Vietnam | Manufacturingindustry | 100.00% | Set-up | |
| LuThaiTanChau(sub-subsidiary) | Vietnam | Vietnam | Manufacturingindustry | 100.00% | Set-up | |
| LuAnGarments(sub-subsidiary) | Vietnam | Vietnam | Manufacturingindustry | 100.00% | Set-up | |
| WanxiangTextile(sub-subsidiary) | Vietnam | Vietnam | Manufacturingindustry | 100.00% | Set-up |
Notestoholdingproportioninsubsidiarydifferentfromvotingproportion:
Notapplicable.Basisofholdinghalforlessvotingrightsbutstillcontrollingtheinvesteeandholdingmorethanhalfofthevotingrightsbutnotcontrollingtheinvestee:
Notapplicable.Significantstructuralentitiesandcontrollingbasisinthescopeofcombination:
Notapplicable.BasisofdeterminingwhethertheCompanyistheagentortheprincipal:
Notapplicable.
(2)SignificantNon-wholly-ownedSubsidiary
Unit:RMB
| Name | Shareholdingproportionofnon-controllinginterests | Theprofitorlossattributabletothenon-controllinginterestsforthecurrentperiod | Declaringdividendsdistributedtonon-controllinginterestsforthecurrentperiod | Balanceofnon-controllinginterestsattheperiod-end |
| LufengWeaving&Dyeing | 25.00% | 10,938,568.10 | 322,347,425.47 | |
| LulianNewMaterials | 25.00% | -11,322,721.82 | 61,080,452.71 |
Holdingproportionofnon-controllinginterestsinsubsidiarydifferentfromvotingproportion:
Notapplicable.
(3)TheMainFinancialInformationofSignificantNotWholly-ownedSubsidiary
Unit:RMB
| Name | Endingbalance | Beginningbalance | ||||||||||
| Currentassets | Non-currentassets | Totalassets | Currentliabilities | Non-currentliabilities | Totalliabilities | Currentassets | Non-currentassets | Totalassets | Currentliabilities | Non-currentliabilities | Totalliabilities | |
| LufengWeaving&Dyeing | 1,201,591,827.54 | 732,308,076.13 | 1,933,899,903.67 | 581,933,505.01 | 48,693,598.59 | 630,627,103.60 | 1,126,316,837.35 | 759,362,074.19 | 1,885,678,911.54 | 586,526,434.78 | 49,665,247.83 | 636,191,682.61 |
| LulianNewMaterials | 410,363,208.91 | 567,935,862.27 | 978,299,071.18 | 731,611,843.84 | 3,197,122.72 | 734,808,966.56 | 474,526,303.81 | 523,835,116.34 | 998,361,420.15 | 706,300,975.36 | 3,185,310.88 | 709,486,286.24 |
Unit:RMB
| Name | Amountofthecurrentperiod | Amountofthepreviousperiod | ||||||
| Revenue | NetProfit | Totalcomprehensiveincome | Cashflowsfromoperatingactivities | Revenue | NetProfit | Totalcomprehensiveincome | Cashflowsfromoperatingactivities | |
| LufengWeaving&Dyeing | 824,088,561.65 | 53,903,771.42 | 53,785,571.14 | 286,465,944.48 | 528,023,041.71 | -24,919,021.98 | -24,829,865.50 | -25,430,786.43 |
| LulianNewMaterials | 37,558,406.73 | -45,385,029.29 | -45,385,029.29 | -20,097,376.54 | 14,060,457.18 | -23,633,974.03 | -23,633,974.03 | -20,179,784.39 |
2.EquityinJointVenturesorAssociatedEnterprises
(1)SignificantJointVenturesorAssociatedEnterprises
| Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Shareholdingpercentage(%) | Accountingtreatmentoftheinvestmenttojointventureorassociatedenterprise | |
| Directly | Indirectly | |||||
| HaohongInvestment | Ningbo | Ningbo | Equityinvestment | 33.33% | Equitymethod | |
| HaoyingInvestment | Ningbo | Ningbo | Equityinvestment | 47.62% | Equitymethod |
(2)MainFinancialInformationofSignificantAssociatedEnterprises
Unit:RMB
| Closingbalance/amountofthecurrentperiod | Openingbalance/amountofthepreviousperiod | |||
| HaohongInvestment | HaoyingInvestment | HaohongInvestment | HaoyingInvestment | |
| Currentassets | 208,185,052.59 | 210,299,642.68 | 206,401,708.32 | 214,686,791.30 |
| Non-currentassets | ||||
| Totalassets | 208,185,052.59 | 210,299,642.68 | 206,401,708.32 | 214,686,791.30 |
| Currentliabilities | 3,433,167.13 | 27,979,423.14 | 3,433,167.13 | |
| Non-currentliabilities | ||||
| Totalliabilities | 3,433,167.13 | 27,979,423.14 | 3,433,167.13 | |
| NetAssets | 204,751,885.46 | 182,320,219.54 | 202,968,541.19 | 214,686,791.30 |
| Equityofnon-controllinginterests | ||||
| EquityattributabletoshareholdersoftheCompanyastheparent | 204,751,885.46 | 182,320,219.54 | 202,968,541.19 | 214,686,791.30 |
| Netassetssharescalculatedattheshareholdingproportion | 68,252,015.29 | 86,819,065.34 | 67,657,626.65 | 102,231,850.02 |
| Adjusteditems | ||||
| -Goodwill | ||||
| --Unrealizedprofitofintra-companytransaction | ||||
| --Other | -28,537.96 | -446,370.01 | ||
| Carryingvalueofinvestmenttoassociatedenterprises | 68,252,015.29 | 86,790,630.38 | 67,657,626.65 | 101,785,480.01 |
| Fairvalueofequityinvestmentsinassociatedenterpriseswithpubliclyquotedprices | ||||
| Revenue | ||||
| NetProfit | 1,783,344.27 | -4,386,967.62 | -10,484,845.56 | 3,582,108.00 |
| Netprofitfromdiscontinuedoperations | ||||
| Othercomprehensiveincome | ||||
| Totalcomprehensiveincome | 1,783,344.27 | -4,386,967.62 | -10,484,845.56 | 3,582,108.00 |
| Dividendsreceivedfromtheassociatesinthecurrentperiod | ||||
X.RisksAssociatedwithFinancialInstruments
TheCompany'smajorfinancialinstrumentsincludemonetarycapital,notesreceivable,accountsreceivable,accountsreceivablefinancing,otherreceivables,othercurrentassets,tradingfinancialassets,investmentindebtobligations,othernon-currentfinancialassets,long-termreceivables,notespayable,accountspayable,otherpayables,short-termborrowings,currentportionofnon-currentliabilities,long-termborrowings,bondspayable,andleaseliabilities.DetailsofvariousfinancialinstrumentsaredisclosedinrelevantNotes.Risksrelatedtothesefinancialinstruments,andriskmanagementpoliciestheCompanyhasadoptedtoreducetheserisksaredescribedasfollows.TheCompanymanagementmanagesandmonitorstheriskexposuretoensuretheaboverisksarecontrolledinalimitedscope.
1.Riskmanagementobjectivesandpolicies
TheCompanyhasconductedtheriskmanagementtoachieveanappropriatebalancebetweentheriskandtheincomeandtominimizetheadverseinfluenceoffinancialrisksontheCompany’sfinancialperformance.Accordingtosuchriskmanagementobjective,theCompanyhasformulatedcorrespondingriskmanagementpolicytorecognizeandanalyzepossiblerisksencounteredbytheCompany,settheappropriateacceptablerisklevelanddesignedcorrespondinginternalcontrolprocedurestomonitortheCompany’srisklevel.Meanwhile,theCompanywillregularlyreviewtheseriskmanagementpoliciesandrelevantinternalcontrolsystemsoastocaterforthemarketorrespondtoanychangeintheCompany’sbusinessoperations.Accordingly,theCompany’sinternalauditdepartmentwillalsoregularlyorrandomlycheckwhethertheinternalcontrolsystemisimplementedinconformitywithrelevantriskmanagementpolicies.
ThemajorriskscausedbyfinancialinstrumentsoftheCompanyarecreditrisk,liquidityriskandmarketrisk(includingforeignexchangeriskandinterestraterisk).
TheBoardofDirectorsshallberesponsibleforplanningandestablishingtheriskmanagementframeworkfortheCompany,determiningtheCompany’sriskmanagementpoliciesandrelevantguidelinesandmonitoringtheimplementationofvariousriskmanagementmeasures.However,theCompanyhasestablishedcorrespondingriskmanagementpoliciestorecognizeandanalyzepossiblerisksencounteredbytheCompany.Besides,variousrisksarespecifiedintheseriskmanagementpolicies,includingthecreditrisk,theliquidityriskandthemarketriskmanagementetc.Onaregularbasis,theCompanywillevaluatethespecificmarketingenvironmentandvariouschangesintheCompany’sbusinessoperationssoastodeterminewhetheranyriskmanagementpolicyandsystemneedbeupdated.
(1)Creditrisk
CreditRiskmeansthattheCompanywillsufferanyfinanciallossesduetothecounterparty’sfailureinfulfillingthecontractobligations.
TheCompanyshallmanagethecreditriskbasedonthespecificGroupClassification,andthecreditriskmainlyarisesfrombankdeposit,notesreceivable,accountsreceivable,otherreceivablesandlong-termaccountsreceivableetc.
TheGroup’sbankdepositsaremainlysavedinstate-ownedbanksandotherlargeandmedium-sizedlistedbanks.TheGroup’sbankdepositsareexpectednottosufferanymajorcreditrisks.
Fornotesreceivable,accountsreceivable,otheraccountsreceivableandlong-termaccountsreceivable,theCompanyhasestablishedrelevantpoliciestocontrolthecreditriskexposure.Accordingtotheclient’sfinancialstatus,creditrecordandotherfactors(includingthecurrentmarketcondition),theCompanywillevaluatetheclient’screditqualificationandsetcorrespondingcreditperiod.TheCompanyregularlymonitorsthecreditrecordsofcustomers.Forcustomerswithbadcreditrecords,theCompanyadoptedcorrespondingmethods,suchaswrittenpressingforpayment,shorteningcreditperiod,andcancelingcreditperiod,soastoensuretheCompany'soverallcreditriskiscontrollable.
ThehugestcreditriskexposurebornebytheCompanyisthebookvalueofeachfinancialassetreflectedinthebalancesheet,andtheCompanyalsofacescreditriskduetotheprovisionoffinancialguarantee,asdetailedinNoteXII2.
Intermsofaccountsreceivable,thetop5customersinaccountsreceivablewereaccountedfor28.33%ofthetotalamountofaccountsreceivableoftheCompany(29.83%in2021).Asforotherreceivables,thetop5oftheendingbalanceaccordingtothearrearspartywasaccountedfor55.37%ofthetotalamountofotherreceivablesoftheCompany(52.62%in2021).InvestmentindebtobligationsTheGroupsupervisedthechangesofcreditriskthroughtrackingthepublishedexternalcreditratings.Inordertomakesurewhetherthecreditratingwasthelatest,andwhetherthecreditriskhasincreasedobviouslyofevaluationreportdatebutnotbeenreflectedinthepublishedexternalratings,theCompanyhassupplementedthroughexaminingthechangesofbondyieldandtheavailablenewsandsupervisioninformation.Onthebalancesheetdate,thecarryingvalueofinvestmentindebtobligationsoftheCompanyarelistedasfollowsaccordingtoreportitems(Unit:RMB’0,000).
| June30,2022 | December31,2021 | |
| TradingFinancialAssets | 28,600.56 | - |
| OtherCurrentAssets | - | - |
| Total | 28,600.56 | - |
(2)Liquidityrisk
LiquidityRiskreferstotheriskofcapitalshortageencounteredbytheCompanyduringthecashpaymentorthesettlementofotherfinancialassets.
Duringthemanagementofliquidityrisk,theCompanyshallreserveandmonitorcorrespondingcashandcashequivalentdeemedsufficientbythemanagementsoastomeettheCompany’soperationalrequirementsandmitigatetheimpactcausedbythecashflowfluctuation.TheGroup’smanagementwillmonitortheuseofbankloansandguaranteethefulfillmentofloanagreement.Meanwhile,majorfinancialinstitutionsshallpromisetoprovidetheGroupwithsufficientreservefundsinordertosatisfytheshort-termandlong-termfunddemand.TheGroupshallraiseitsworkingcapitalbasedonthecapitalgeneratedfrombusinessoperationsandbankloans.
(3)Marketrisk
Thefinancialinstrument’smarketriskreferstothefluctuationriskoffairvalueoffinancialinstrumentorfuturecashflowcausedbythechangesofmarketprice,includingtheinterestrateriskandtheexchangeraterisk.
Interestraterisk
Interestrateriskreferstotheriskoffluctuationsinthefairvalueorfuturecashflowsoffinancialinstrumentsarisingfromchangesinmarketinterestrates.Theinterestratecanderivefromtherecognizedinterest-bearingfinancialinstrumentsandunrecognizedfinancialinstruments(includingcertainloancommitment).
TheGroup’sinterestrateriskmainlyarisesfromthebankloan.FinancialliabilitiesbasedonthefloatinginterestratewillcausethecashflowinterestraterisktotheCompany,andfinancialliabilitiesbasedonthefixedinterestratethefairvalueinterestraterisk.
However,theCompanyhaspaidcloseattentiontheimpactofinterestratefluctuationsontheCompany’sinterestraterisk.Atpresent,theCompanyhasnottakenanyinterestratehedgingmeasures.Theriseofinterestratewillincreasethecostofnewly-addedinterest-bearingdebtsandtheinterestcostoftheCompany’sunsettledinterest-bearingdebtsbasedonthefloatinginterestrate,andcausemajoradverseinfluenceontheCompany’sfinancialperformance.Themanagementwilltimelymakecorrespondingadjustmentaccordingtothelatestmarketsituation,andcorrespondinginterestrateswapwillbearrangedtoreducetheinterestraterisk.
Theinterest-bearingfinancialliabilitiesheldbytheCompanyareasfollows(Unit:RMB’0,000):
| Item | June30,2022 | December31,2021 |
| Fixed-interestfinancialliability | ||
| Including:short-termborrowings | 121,363.14 | 101,026.99 |
| Currentportionoflong-termborrowings | 180.00 | 850.00 |
| Long-termborrowings | 30,120.00 | 58,523.00 |
| BondsPayable | 141,219.65 | 139,548.07 |
| Total | 292,882.79 | 299,948.05 |
| Floatingratefinancialliability | ||
| Including:short-termborrowings | 4,493.75 | |
| Currentportionoflong-termborrowings | 700.00 | |
| Long-termborrowings | 38,348.00 | 9,900.00 |
| Total | 43,541.75 | 9,900.00 |
OnJune30,2022,ifthelendingratecalculatedatfloatinginterestrateupordown100basispointswithothervariablesunchanged,thenetprofitandshareholders’equitywillbedecreasedorincreasedaboutRMB4,354,200.ForeignexchangeriskForeignexchangeriskisreferredtothefluctuationriskoffairvalueoffinancialinstrumentsorfuturecashflowsresultedfromthechangeofforeignexchangerate.Theforeignexchangeratewasoriginatedfromthefinancialinstrumentsdenominatedinforeigncurrenciesotherthantherecordingcurrency.OnJune30,2022,theamountofforeigncurrencyfinancialassetsandforeigncurrencyfinancialliabilitiesconvertedtorenminbiisasfollows(Unit:RMB’0,000):
| Item | Foreigncurrencyliabilities | Foreigncurrencyassets | ||
| AmountattheEndofThisReportingPeriod | AmountattheBeginningofThisReportingPeriod | AmountattheEndofThisReportingPeriod | AmountattheBeginningofThisReportingPeriod | |
| USD | 54,321.26 | 112,245.83 | 127,353.30 | 89,577.60 |
| EUR | 228.15 | 361.14 | 1,793.80 | 587.83 |
| JPY | 9.17 | 78.72 | 175.34 | 13.63 |
| HKD | 460.74 | 408.53 | ||
| GBP | 1.59 | 7.92 | ||
| CHF | 14.02 | 0.10 | 10.32 | |
| SEK | ||||
| Dong | 6,700.01 | 3,342.45 | 25,911.69 | 3,399.25 |
| MMK | 3.49 | 3.40 | 241.37 | 241.25 |
| Riel | 15.82 | 4.77 | ||
| Total | 61,262.08 | 116,045.56 | 155,953.75 | 94,251.09 |
TheGrouphaspaidcloseattentiontheimpactofexchangeratefluctuationsontheGroup’sexchangeraterisk.Asattheendofeachreportingperiod,fortheGroup'smonetarycapital,billsreceivable,accountsreceivable,accountspayable,short-termborrowingsandlong-termborrowingsdenominatedinforeigncurrencies,theimpactontheGroup'sshareholders'equityandnet
profitassuminga10%appreciationordepreciationofRMBagainstforeigncurrencies,whileotherfactorsremainunchanged,wouldbeasfollows(Unit:RMB’0,000):
| Exchangeratefluctuations | Currentperiod | Sameperiodlastyear | ||
| Impactonprofit | Impactonshareholders'equity | Impactonprofit | Impactonshareholders'equity | |
| 10%appreciationagainstRMB | -9,469.17 | -9,469.17 | 3,742.78 | 3,742.78 |
| 10%depreciationagainstRMB | 9,469.17 | 9,469.17 | -3,742.78 | -3,742.78 |
2.Capitalmanagement
TheobjectivesofcapitalmanagementpoliciesoftheCompanyaretoensurethecontinuousoperationoftheCompanysoastoprovidereturntoshareholdersandbenefitotherstakeholders,aswellastoreducecapitalcostbymaintainingtheoptimalcapitalstructure.Inordertomaintainoradjustcapitalstructure,theCompanymightadjustfinancingmethodandthedividendspaidtoshareholders,returncapitaltoshareholders,issuenewsharesandotherequityinstrumentorsellassetstoreducedebts.TheGroupsupervisedthecapitalstructurebasedontheasset-liabilityratio(namelytotalliabilitiesdividetotalassets).OnJune30,2022,theasset-liabilityratiowas34.38%oftheCompany(35.57%onDecember31,2021).XI.DisclosureofFairValue
1.EndingFairValueofAssetsandLiabilitiesatFairValue
Unit:RMB
| Item | Closingfairvalue | |||
| Fairvaluemeasurementitemsatlevel1 | Fairvaluemeasurementitemsatlevel2 | Fairvaluemeasurementitemsatlevel3 | Total | |
| I.ConsistentFairValueMeasurement | -- | -- | -- | -- |
| (1)Debtinstrumentinvestments | 286,005,570.79 | 286,005,570.79 | ||
| (3)Derivativefinancialassets | 2,412,949.57 | 2,412,949.57 | ||
| vi.Accountsreceivablefinancing | 40,325,536.36 | 40,325,536.36 | ||
| vii.Othernon-currentfinancialassets | 190,052,000.00 | 190,052,000.00 | ||
| vi.Tradingfinancialliabilities | 3,622,489.80 | 3,622,489.80 | ||
| Derivativefinancialliabilities | 3,622,489.80 | 3,622,489.80 | ||
| II.InconsistentFairValueMeasurement | -- | -- | -- | -- |
2.Continuousandnon-continuousLevel2fairvaluemeasurementitems,valuationtechniquesused,andthequalitativeandquantitativeinformationofimportantparameters
Forforwardsettlementsofexchanges,theCompanydeterminestheirfairvaluebasedonbankforwardforeignexchangequotationsattheendoftheperiod.
Forfundproducts,theCompanyrecognizestheirfairvaluebasedonthenetvalueonthedateofstatement.ForWMproductsofbrokers,theCompanyrecognizestheproducts'fairvaluebasedonthereturnofproductswithintheexpectedinterval.
3.ValuationTechniqueAdoptedandNatureandAmountDeterminationofImportantParametersforConsistentandInconsistentFairValueMeasurementItemsatLevel3Fortheunlistedequityinvestment,theCompanyadoptsthecomparablelistedcompanycomparisonmethod,andthenon-observableinputvalueofthecomparablelistedcompanycomparisonmethodincludestheliquiditydiscount.
TheinvestmentintoShandongHongqiaoThermoelectricCo.,Ltd.madebyLuqunTextile(theCompany’ssubsidiary)isexpectedtobeheldinthelongrunforobtainingthediscountonpowerpurchase.Asnorevenuedistributionrightisvestedintheinvestment,theinvestedunit’soperatingprofitandlossarenotsharedorborne,andtheequitytransferisnotproposed,theCompanyregardsitasthefinancialassetwhichshallbemeasuredbasedonthefairvalueandwhosevariationsareincludedinthecurrentprofitandloss,andtheinvestmentcostisdeemedasthefairvalueofthefinancialasset.Foraccountsreceivablesfinancingatfairvalueandthechangesincludedinothercomprehensiveincome,itsfairvalueshallbedeterminedbythediscountcashflowmethod.XII.RelatedPartyandRelated-partyTransactions
1.InformationRelatedtotheCompanyastheParentoftheCompany
| NameoftheCompanyastheparent | Registrationplace | Natureofbusiness | RegisteredCapital | ProportionofshareheldbytheCompanyastheparentagainsttheCompany(%) | ProportionofvotingrightsownedbytheCompanyastheparentagainsttheCompany(%) |
| LuchengTextile | Zibo | Textile,chemistryandinvestment | RMB63.26million | 15.81% | 15.81% |
Notes:InformationontheCompanyastheparentThefinalcontrollersoftheCompanyareMr.LiuZibinandMr.LiuDeming.
2.SubsidiariesoftheCompanyRefertoNoteIX-1.
3.InformationontheJointVenturesandAssociatedEnterprisesoftheCompany
RefertoNoteIX-2.
4.InformationonOtherRelatedParties
| Nameofotherrelatedparty | RelationshipwiththeCompany |
| ZiboLiminPurifiedWaterCo.,Ltd.(hereinaftercalledLiminPurifiedWater) | Wholly-ownedsubsidiaryoftheCompanyastheparent |
| ZiboLuqunLandCo.,Ltd(hereinaftercalledLuqunLand) | Wholly-ownedsubsidiaryoftheCompanyastheparent |
| ZiboLuruiFineChemicalCo.,Ltd.(hereinafterreferredtoasLuruiChemical) | Majority-ownedsubsidiaryoftheCompanyastheparent |
| ZiboLujiaPropertyManagementCo.,Ltd.(hereinafterreferredtoasLujiaProperty) | Wholly-ownedsubsidiaryoftheCompanyastheparent |
| HongKongTungHoiInternationalCompanyLimited(hereinaftercalledTungHoiInternational) | Wholly-ownedsubsidiaryoftheCompanyastheparent |
| ZiboChengshunHosieryCo.,Ltd.(hereinafterreferredtoasChengshunHosiery) | Wholly-ownedsubsidiaryoftheCompanyastheparent |
| ZiboChengshunEconomicandTradeCo.,Ltd.(hereinafterreferredtoasChengshunEconomicandTrade) | Wholly-ownedsubsidiaryoftheCompanyastheparent |
| ChengshunPetrochemical(ZhejiangZhoushan)Co.,Ltd.(hereinafterreferredtoasChengshunPetrochemical) | Wholly-ownedsubsidiaryoftheCompanyastheparent |
| ZiboLuchengPetrochemicalSalesCo.,Ltd.(hereinafterreferredtoasLuchengPetrochemical) | Wholly-ownedsubsidiaryoftheCompanyastheparent |
| ShanghaiHengjiuTextileNewMaterialsCo.,Ltd.(hereinafterreferredtoasHengjiuTextile) | Wholly-ownedsubsidiaryoftheCompanyastheparent |
| UnikornNonwovensCo.,Ltd.(hereinafterreferredtoasthe"UnikornNonwovens") | Wholly-ownedsubsidiaryofwholly-ownedsubsidiaryoftheCompanyastheparent |
| ZiboLumeiEconomicandTradeCo.,Ltd.(hereinafterreferredtoasLumeiEconomicandTrade) | Wholly-ownedsubsidiaryoftheCompanyastheparent |
5.ListofRelated-partyTransactions
(1)InformationonAcquisitionofGoodsandReceptionofLaborServiceInformationonacquisitionofgoodsandreceptionoflaborservice
Unit:RMB
| RelatedParties | ContentoftheRelated-PartyTransaction | Amountofthecurrentperiod | Theapprovaltradecredit | Whetherexceedtradecreditornot | Amountofthepreviousperiod |
| LiminPurifiedWater | Recycledwaterandsewagetreatment | 13,452,523.98 | 16,140,000.00 | No | 12,211,050.25 |
| LuruiFineChemical | Auxiliaries | 51,716,798.45 | 59,000,000.00 | No | 40,620,712.88 |
| ChengshunHosiery | Welfaressuchassocks,papercoresandhoseprocessingfee | 4,473,602.71 | 5,370,000.00 | No | 4,379,850.31 |
| ChengshunEconomicandTrade | Supermarketretail | 3,939,234.06 | 4,420,000.00 | No | 577,791.56 |
| LuchengPetrochemical | Oils | 1,993,157.77 | 2,390,000.00 | No | 1,524,662.66 |
| ChengshunPetrochemical | Gas | 27,957,095.10 | 30,770,000.00 | No | 18,133,501.78 |
| UnikornNonwovens | Mask | 150,069.91 | 150,000.00 | Yes | 700,367.23 |
Informationofsalesofgoodsandprovisionoflaborservice
Unit:RMB
| RelatedParties | ContentoftheRelated-PartyTransaction | Amountofthecurrentperiod | Amountofthepreviousperiod |
| LuchengTextile | Salesofmaterials,electricity,runningwater,draughtwater,gasetc. | 5,797.88 |
| ChengshunHosiery | Materials,electricity,runningwater,heating,steam | 154,962.88 | 133,071.57 |
| ChengshunHosiery | Salesofgreyyarnetc | 519,500.49 | 353,219.89 |
| ChengshunEconomicandTrade | Materials,electricity,runningwater | 50,822.62 | 47,784.20 |
| LuchengPetrochemical | Electricity,materials | 7,266.40 | 7,857.02 |
| LiminPurifiedWater | Salesofmaterials,garment,electricityetc. | 2,647,392.88 | 1,572,783.76 |
| LuruiFineChemical | Salesofgarment,fabrics,yarns,water&electricity,lunchcomponentsandmaterials | 41,838.73 | 6,731.29 |
| LujiaProperty | Salesofmaterialsandrecycledwater | 34,377.34 | 71,945.34 |
| UnikornNonwovens | Fabrics,materials,isolationgowns,etc. | 44,576.98 | 1,012,527.84 |
(2)Informationonrelated-partylease
TheCompanywaslessor:
Unit:RMB
| Nameoflessee | Categoryofleasedassets | Theleaseincomeconfirmedinthecurrentperiod | Theleaseincomeconfirmedinthesameperiodoflastyear |
| ChengshunEconomicandTrade | Housesandbuildings | 36,108.00 | 36,108.00 |
TheCompanywaslessee:
Unit:RMB
| Nameoflessor | Categoryofleasedassets | Rentalexpenseofsimplifiedshort-termleasesandlow-valueassetleases(ifapplicable) | Variableleasepaymentsthatarenotcoveredinthemeasurementoftheleaseliabilities(ifapplicable) | Rentpayable | Interestexpenseonleaseliabilitiesborne | Addedright-of-useassets | |||||
| Amountofthecurrentperiod | Amountofthepreviousperiod | Amountofthecurrentperiod | Amountofthepreviousperiod | Amountofthecurrentperiod | Amountofthepreviousperiod | Amountofthecurrentperiod | Amountofthepreviousperiod | Amountofthecurrentperiod | Amountofthepreviousperiod | ||
| LuchengTextile | Rentofland | 1,807,428.60 | 1,807,428.60 | 618,066.67 | 672,003.82 | 29,675,587.49 | |||||
| LuchengTextile | Rentofgasstation | 116,571.42 | 116,571.42 | 56,468.65 | 59,194.31 | 2,589,219.21 | |||||
| LuchengTextile | Rentofbuildings | 5,511,114.30 | 5,511,114.30 | 1,144,374.63 | 1,318,833.64 | 62,292,894.06 | |||||
| LuqunProperty | Rentoflandandbuildings | 985,714.26 | 985,714.26 | 587,802.00 | 605,847.21 | 26,379,793.30 | |||||
6.AccountsReceivableandPayableofRelatedParty
(1)Accountspayable
Unit:RMB
| ProjectName | RelatedParties | Endingcarryingamount | Beginningcarryingamount |
| Accountspayable | LuruiFineChemical | 2,881,480.53 | 6,022,580.15 |
| Contractliabilities | LuqunProperty | 649,676.55 | 649,676.55 |
XIII.StockPayment
1.Theoverallsituationofshare-basedpayments?Applicable□Notapplicable
Unit:RMB
| ThetotalamountofequityinstrumentsgrantedbytheCompanyforthecurrentperiod | 5,838,000.00 |
| ThetotalamountoftheCompany'sequityinstrumentsexercisedforthecurrentperiod | 0.00 |
| ThetotalamountofequityinstrumentsoftheCompanylosingefficacyforthecurrentperiod | 0.00 |
| TherangeofexercisepricesofstockoptionsissuedandoutstandingattheendoftheperiodoftheCompanyandtheremainingtermofthecontract | - |
| TherangeofexercisepricesofotherequityinstrumentsissuedattheendoftheperiodoftheCompanyandtheremainingtermofthecontract | - |
2.Equity-settledshare-basedpayments
?Applicable□Notapplicable
Unit:RMB
| Methodsfordeterminingthefairvalueofequityinstrumentsonthegrantdate | Differencebetweenthemarketpriceofthestockandthegrantpriceonthegrantdate |
| Basisfordeterminingthenumberoffeasiblerightequityinstruments | Optimalestimationofexpectedfeasiblerightinthefuture |
| Reasonsforthesignificantdiscrepancybetweenthecurrentperiodestimatesandthepreviousestimates | N/A |
| Accumulatedamountofequity-settledshare-basedpaymentincludedincapitalreserves | 52,451,527.32 |
| Thetotalamountoftheexpenserecognizedforthecurrentperiodpaidonequity-settledshares | 24,125,738.72 |
3.Cash-settledshare-basedpayments
□ApplicableNotapplicable?
XIV.CommitmentsandContingency
1.SignificantCommitments
Significantcommitmentsonbalancesheetdate
(1)Capitalcommitments
| Commitmentssignedbuthasn’tbeenrecognizedinfinancialstatements | 2022.6.30 | December31,2021 |
| Commitmentonconstructingandpurchasinglong-livedassets(RMB’0,000) | 6,540.63 | 10,006.86 |
2.Contingency
(1)SignificantContingencyonBalanceSheetDate
ContingentliabilitiesformedbythedebtguaranteeprovidedtootherentitiesandthefinancialimpactAsatJune30,2022,theCompanyprovidedguaranteetoloansofthefollowingentities:
| Name | Item | Currency | Foreigncurrencyamount | AmountconvertedtoRMB | Startdate | Maturitydate | Notes |
| I.Subsidiary | |||||||
| ContinentalTextileCo.,Ltd. | Short-termborrowings | USD | 1,758,716.41 | 11,803,449.31 | 2022/2/10 | 2022/8/9 | |
| ContinentalTextileCo.,Ltd. | Short-termborrowings | USD | 628,062.00 | 4,215,175.31 | 2022/2/10 | 2022/8/9 | |
| ContinentalTextileCo.,Ltd. | Short-termborrowings | USD | 1,826,256.41 | 12,256,737.27 | 2022/2/10 | 2022/8/9 | |
| ContinentalTextileCo.,Ltd. | Short-termborrowings | USD | 784,115.00 | 5,262,509.41 | 2022/2/11 | 2022/8/10 | |
| ContinentalTextileCo.,Ltd. | Short-termborrowings | USD | 1,676,876.60 | 11,254,189.61 | 2022/2/17 | 2022/8/16 | |
| ContinentalTextileCo.,Ltd. | Short-termborrowings | USD | 723,971.00 | 4,858,858.97 | 2022/2/17 | 2022/8/16 | |
| ContinentalTextileCo.,Ltd. | Short-termborrowings | USD | 217,393.00 | 1,459,011.38 | 2022/2/22 | 2022/8/22 | |
| ContinentalTextileCo.,Ltd. | Short-termborrowings | USD | 555,906.00 | 3,730,907.53 | 2022/2/25 | 2022/8/25 | |
| ContinentalTextileCo.,Ltd. | Short-termborrowings | USD | 673,855.60 | 4,522,514.47 | 2022/2/25 | 2022/8/25 | |
| Total | 8,845,152.02 | 59,363,353.27 |
(2)ExplanationshallbegivenevenifthereisnosignificantcontingencyfortheCompanytodisclose
TherewasnosignificantcontingencyintheCompanytodisclose.
XV.NotesofMainItemsintheFinancialStatementsoftheCompanyastheParent
1.AccountsReceivable
(1)ListedbyCategory
Unit:RMB
| Category | Endingbalance | Beginningbalance | ||||||||
| Carryingamount | Baddebtprovision | Carryingvalue | Carryingamount | Baddebtprovision | Carryingvalue | |||||
| Amount | Proportion | Amount | Withdrawalproportion | Amount | Proportion | Amount | Withdrawalproportion | |||
| AccountsreceivablewithdrawalofBaddebtprovisionseparatelyaccrued | 4,140,765.04 | 0.95% | 4,140,765.04 | 100.00% | 1,788,432.20 | 1.60% | 1,788,432.20 | 100.00% | ||
| Ofwhich: | ||||||||||
| Accountsreceivablewithdrawalofbaddebtprovisionofbygroup | 433,781,205.86 | 99.05% | 22,511,092.56 | 5.19% | 411,270,113.30 | 453,937,579.34 | 99.61% | 28,225,841.07 | 6.22% | 425,711,738.27 |
| Ofwhich: | ||||||||||
| Undueaccounts(creditinsuranceinsured) | 104,977,352.44 | 23.97% | 1,102,262.20 | 1.05% | 103,875,090.24 | 45,299,117.13 | 9.94% | 475,640.73 | 1.05% | 44,823,476.40 |
| Undueaccounts(nocreditinsurance) | 285,305,559.56 | 65.15% | 14,265,277.98 | 5.00% | 271,040,281.58 | 366,082,322.24 | 80.33% | 18,304,116.12 | 5.00% | 347,778,206.12 |
| Overdueaccounts(creditinsuranceinsured) | 26,980,698.30 | 6.16% | 2,886,934.72 | 10.70% | 24,093,763.58 | 11,631,278.80 | 2.55% | 1,244,546.83 | 10.70% | 10,386,731.97 |
| Overdueaccounts(nocreditinsurance) | 16,517,595.56 | 3.77% | 4,256,617.67 | 25.77% | 12,260,977.89 | 30,924,861.17 | 6.79% | 8,201,537.39 | 26.52% | 22,723,323.78 |
| Total | 437,921,970.90 | 100.00% | 26,651,857.60 | 6.09% | 411,270,113.30 | 455,726,011.54 | 100.00% | 30,014,273.27 | 6.59% | 425,711,738.27 |
Baddebtprovisionseparatelyaccrued:June30,2022
Unit:RMB
| Name | Endingbalance | |||
| Carryingamount | Baddebtprovision | Withdrawalproportion | Reasonforwithdraw | |
| Customer1 | 1,018,678.64 | 1,018,678.64 | 100.00% | Customer'sapplicationforbankruptcyprotection |
| Customer2 | ||||
| Customer3 | 2,627,179.62 | 2,627,179.62 | 100.00% | Customer'sapplicationforbankruptcyprotection |
| Othercustomers | 494,906.78 | 494,906.78 | 100.00% | Customerinfinancialdifficultyorapplicationforbankruptcy |
| Total | 4,140,765.04 | 4,140,765.04 | ||
Withdrawalofbaddebtprovisionbygroup:June30,2022
Unit:RMB
| Name | Endingbalance | ||
| Carryingamount | Baddebtprovision | Withdrawalproportion | |
| Group1:Undueaccounts(creditinsuranceinsured) | 104,977,352.44 | 1,102,262.20 | 1.05% |
| Group2:Undueaccounts(nocreditinsurance) | 285,305,559.56 | 14,265,277.98 | 5.00% |
| Group3:Overdueaccounts(creditinsuranceinsured) | 26,980,698.30 | 2,886,934.72 | 10.70% |
| Group4:Overdueaccounts(nocreditinsurance) | 16,517,595.56 | 4,256,617.67 | 25.77% |
| Total | 433,781,205.86 | 22,511,092.56 | |
Pleaserefertotherelevantinformationofdisclosureofbaddebtprovisionofotheraccountsreceivableifadoptingthegeneralmodeofexpectedcreditlosstowithdrawbaddebtprovisionofaccountsreceivable.?Applicable□NotapplicableDisclosurebyaging
Unit:RMB
| Aging | Endingbalance |
| Within1year(including1year) | 430,159,931.96 |
| 1to2years | 1,337,426.91 |
| 2to3years | 5,171,569.39 |
| Over3years | 1,253,042.64 |
| 3to4years | 650,597.65 |
| 4to5years | 531,719.44 |
| Over5years | 70,725.55 |
| Total | 437,921,970.90 |
(2)BadDebtProvisionWithdrawal,ReversedorRecoveredintheReportingPeriodWithdrawalofbaddebtprovision:
Unit:RMB
| Category | Beginningbalance | ChangesintheReportingPeriod | Endingbalance | |||
| Withdrawal | Reversedorrecovered | Verification | Others | |||
| Baddebtprovision | 30,014,273.27 | -3,064,092.20 | 298,323.47 | 26,651,857.60 | ||
| Total | 30,014,273.27 | -3,064,092.20 | 298,323.47 | 26,651,857.60 | ||
(3)AccountsReceivableWritten-offinCurrentPeriod
Unit:RMB
| Item | Written-offamount |
| Written-offaccountsreceivable | 298,323.47 |
(4)Top5oftheEndingBalanceoftheAccountsReceivableCollectedaccordingtoArrearsParty
Unit:RMB
| Nameoftheentity | Endingbalance | Proportiontototalendingbalanceofaccountsreceivable | Endingbalanceofbaddebtprovision |
| Aggregateamountoftop5ofaccountsreceivableofendingbalancecollectedbyarrearsparty | 159,106,376.10 | 36.33% | 6,920,633.60 |
| Total | 159,106,376.10 | 36.33% |
2.OtherReceivables
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Dividendreceivable | 126,413,895.72 | 94,525,975.44 |
| Otherreceivables | 2,325,049,982.80 | 1,965,654,050.43 |
| Total | 2,451,463,878.52 | 2,060,180,025.87 |
(1)DividendReceivable
1)DividendReceivableClassification
Unit:RMB
| Project(orinvestee) | Endingbalance | Beginningbalance |
| Sanchangproject | 19,540,314.10 | 49,501,026.78 |
| LuqunTextile | 50,000,000.00 | |
| ContinentalTextileCo.,Ltd. | 113,526,944.55 | |
| Less:baddebtprovision | -6,653,362.93 | -4,975,051.34 |
| Total | 126,413,895.72 | 94,525,975.44 |
2)WithdrawalofBadDebtProvision?Applicable□Notapplicable
Unit:RMB
| Baddebtprovision | Firststage | Secondstage | Thirdstage | Total |
| Expectedcreditlossinthenext12months | Expectedlossintheduration(creditimpairmentnotoccurred) | Expectedlossintheduration(creditimpairmentoccurred) | ||
| BalanceofJanuary1,2022, | 4,975,051.34 | 4,975,051.34 | ||
| Balanceof1January2022intheCurrentPeriod | ||||
| WithdrawaloftheCurrentPeriod | 1,678,311.59 | 1,678,311.59 | ||
| BalanceofJune30,2022 | 6,653,362.93 | 6,653,362.93 |
ChangesofcarryingamountwithsignificantamountchangedoflossprovisionintheCurrentPeriod
□ApplicableNotapplicable?
(2)OtherAccountsReceivable
1)OtherReceivablesClassifiedbyCategory
Unit:RMB
| Nature | Endingcarryingamount | Beginningcarryingamount |
| Intercoursefunds | 2,318,333,401.20 | 1,958,920,668.29 |
| Paymentonbehalf | 9,200,958.95 | 9,591,346.65 |
| Guaranteedepositandcashdeposit | 4,172,057.96 | 3,764,642.06 |
| Borrowingsandpettycash | 1,245,760.43 | 737,517.66 |
| Others | 1,032,480.10 | 399,089.06 |
| Total | 2,333,984,658.64 | 1,973,413,263.72 |
2)WithdrawalofBadDebtProvision
Unit:RMB
| Baddebtprovision | Firststage | Secondstage | Thirdstage | Total |
| Expectedcreditlossinthenext12months | Expectedlossintheduration(creditimpairmentnotoccurred) | Expectedlossintheduration(creditimpairmentoccurred) | ||
| BalanceofJanuary1,2022, | 6,469,310.84 | 1,289,902.45 | 7,759,213.29 | |
| Balanceof1January2022intheCurrentPeriod | ||||
| WithdrawaloftheCurrentPeriod | 485,689.37 | -643,902.75 | 1,333,675.93 | 1,175,462.55 |
| BalanceofJune30,2022 | 6,955,000.20 | 645,999.70 | 1,333,675.93 | 8,934,675.84 |
ChangesofcarryingamountwithsignificantamountchangedoflossprovisionintheCurrentPeriod
□ApplicableNotapplicable?Disclosurebyaging
Unit:RMB
| Aging | Endingbalance |
| Within1year(including1year) | 1,758,002,528.66 |
| 1to2years | 572,599,084.11 |
| 2to3years | 787,360.00 |
| Over3years | 2,595,685.87 |
| 4to5years | 115,926.86 |
| Over5years | 2,479,759.01 |
| Total | 2,333,984,658.64 |
3)Top5oftheEndingBalanceoftheOtherReceivablesCollectedaccordingtotheArrearsParty
Unit:RMB
| Nameoftheentity | Nature | Endingbalance | Aging | Proportiontototalendingbalanceofotherreceivables% | Endingbalanceofbaddebtprovision |
| ContinentalTextileCo.,Ltd. | Intercoursefunds | 1,033,555,600.00 | Within1yearand1to2years | 44.28% | 3,100,666.80 |
| LulianNewMaterials | Intercoursefunds | 709,606,001.54 | Within1yearand1to2years | 30.40% | 2,128,818.00 |
| LuThaiTanChau | Intercoursefunds | 298,657,300.00 | Within1yearand1to2years | 12.80% | 895,971.90 |
| LufengWeaving&Dyeing | Intercoursefunds | 159,654,249.66 | Within1year | 6.84% | 478,962.75 |
| LuAnGarments | Intercoursefunds | 109,060,250.00 | Within1year | 4.67% | 327,180.75 |
| Total | 2,310,533,401.20 | 98.99% | 6,931,600.20 |
3.Long-termEquityInvestment
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Depreciationreserves | Carryingvalue | Carryingamount | Depreciationreserves | Carryingvalue | |
| Investmenttosubsidiaries | 2,651,104,886.50 | 0.00 | 2,651,104,886.50 | 2,648,604,886.50 | 2,648,604,886.50 | |
| Investmenttojointventuresandassociatedenterprises | 155,042,645.67 | 155,042,645.67 | 169,443,106.66 | 169,443,106.66 | ||
| Total | 2,806,147,532.17 | 0.00 | 2,806,147,532.17 | 2,818,047,993.16 | 0.00 | 2,818,047,993.16 |
(1)Investmenttosubsidiaries
Unit:RMB
| Investee | Beginningbalance(carryingvalue) | Increase/decreaseforthecurrentperiod | EndingBalance(CarryingValue) | Endingbalanceofdepreciationreserve | |||
| Additionalinvestment | Reducedinvestment | Withdrawalofimpairmentprovision | Others | ||||
| XinshengPower | 176,340,737.93 | 176,340,737.93 | |||||
| LufengWeaving&Dyeing | 529,620,000.00 | 529,620,000.00 | |||||
| LuqunTextile | 171,784,550.00 | 171,784,550.00 | |||||
| Luthai(HongKong) | 128,771,800.00 | 128,771,800.00 | |||||
| ShanghaiLuthai | 20,000,000.00 | 20,000,000.00 | |||||
| LuThai(America) | 10,209,050.00 | 10,209,050.00 | |||||
| VanguardApparelCo.,Ltd. | 62,337,238.57 | 62,337,238.57 | |||||
| ContinentalTextileCo.,Ltd. | 834,936,510.00 | 834,936,510.00 | |||||
| LulianNewMaterials | 300,000,000.00 | 300,000,000.00 | |||||
| LujiaImport&Export | 10,000,000.00 | 10,000,000.00 | |||||
| LuThaiOccupationalTrainingSchool | 100,000.00 | 100,000.00 | |||
| ShanghaiZhinuo | 5,000.00 | 5,000.00 | |||
| ZhishuManagement | 1,000,000.00 | 1,000,000.00 | 2,000,000.00 | ||
| HuilinInternational | 400,000,000.00 | 400,000,000.00 | |||
| BanyangVilla | 3,500,000.00 | 1,500,000.00 | 5,000,000.00 | ||
| Total | 2,648,604,886.50 | 2,500,000.00 | 2,651,104,886.50 | 0.00 |
(2)Investmenttojointventuresandassociatedenterprises
Unit:RMB
| Investee | Beginningbalance(carryingvalue) | Increase/decreaseforthecurrentperiod | EndingBalance(CarryingValue) | Endingbalanceofdepreciationreserve | |||||||
| Additionalinvestment | Reducedinvestment | Gainsandlossesrecognizedundertheequitymethod | Adjustmentofothercomprehensiveincome | Changesofotherequity | Cashbonusorprofitsannouncedtoissue | Withdrawalofimpairmentprovision | Others | ||||
| I.Jointventures | |||||||||||
| II.Associatedenterprises | |||||||||||
| HaohongInvestment | 67,657,626.65 | 0.00 | 0.00 | 594,388.64 | 0.00 | 68,252,015.29 | |||||
| HaoyingInvestment | 101,785,480.01 | 0.00 | 13,323,521.50 | -1,671,328.13 | 0.00 | 86,790,630.38 | |||||
| Subtotal | 169,443,106.66 | 0.00 | -1,076,939.49 | 0.00 | 155,042,645.67 | ||||||
| Total | 169,443,106.66 | 0.00 | -1,076,939.49 | 0.00 | 155,042,645.67 | ||||||
4.OperatingRevenueandCostofSales
Unit:RMB
| Item | Amountofthecurrentperiod | Amountofthepreviousperiod | ||
| Revenue | Cost | Revenue | Cost | |
| Principalbusiness | 1,923,502,455.26 | 1,403,671,534.86 | 1,454,435,324.82 | 1,148,081,216.40 |
| Others | 173,226,541.52 | 151,163,312.87 | 92,334,931.92 | 85,526,040.17 |
| Total | 2,096,728,996.78 | 1,554,834,847.73 | 1,546,770,256.74 | 1,233,607,256.57 |
Informationaboutperformanceobligations:NoneInformationinrelationtothetransactionpriceapportionedtotheresidualcontractperformanceobligation:
AsattheendoftheReportingPeriod,therevenueamountcorrespondingtothecontractperformanceobligationyettobefulfilledoryettobecompletedunderasignedcontractisRMB0.00,includingRMB0.00expectedtoberecognizedasrevenueintheyear,RMB0.00expectedtoberecognizedasrevenueintheyear,andRMB0.00expectedtoberecognizedasrevenueintheyear.
5.InvestmentIncome
Unit:RMB
| Item | Amountofthecurrentperiod | Amountofthepreviousperiod |
| Long-termequityinvestmentincomeaccountedbycostmethod | 219,600,542.74 | 94,015,922.61 |
| Long-termequityinvestmentincomeaccountedbyequitymethod | -1,076,939.49 | -1,789,070.68 |
| Investmentincomefromdisposaloftradingfinancialassets | 1,682,000.00 | 17,298,322.47 |
| Interestincomeearnedoninvestmentindebtobligationsduringtheholdingperiod | 2,401,261.30 | |
| Total | 220,205,603.25 | 111,926,435.70 |
XVI.SupplementaryMaterials
1.ItemsandAmountsofNon-recurringProfitorLoss?Applicable□Notapplicable
Unit:RMB
| Item | Amount | Note |
| Gains/lossesfromthedisposalofnon-currentassets | 2,696,076.03 | |
| Governmentgrantsrecordedinthecurrentprofitorloss(exceptforthoseacquiredintheordinarycourseofcompany'sbusiness,inlinewithnationalpoliciesandregulations,orgrantedcontinuouslyaccordingtocertainstandardquotasoramounts) | 27,720,772.37 | |
| Gain/lossfromchangeoffairvalueoftradingfinancialassetsandliabilities,andinvestmentgainsfromdisposaloftradingfinancialassetsandliabilitiesaswellasfinancialassetsavailableforsale,otherthanvalidhedgingrelatedtotheCompany’scommonbusinesses | 5,594,541.44 | |
| Reversalofprovisionforimpairmentofreceivablesseparatelytestedforimpairment | 395,260.56 | |
| Othernon-operatingincomeandexpenseotherthantheabove | 833,061.06 | |
| Less:Incometaxeffects | 8,618,329.50 | |
| Non-controllinginterestseffects | 249,759.14 |
| Total | 28,371,622.82 | -- |
Detailsofotherprofitandlossitemsinlinewiththedefinitionofnon-recurringgainsandlosses:
□ApplicableNotapplicable?Therearenootherprofitandlossitemsinlinewiththedefinitionofnon-recurringgainsandlossesintheCompany.Notetodefiningthenon-recurringprofitandlossitemslistedintheExplanatoryNoticeofInformationDisclosurebyCompaniesOfferingSecuritiestothePublicNo.1-Non-recurringProfitandLossItemsasrecurringprofitandlossitems
□ApplicableNotapplicable?
2.ReturnonEquityandEarningsPerShare
| ProfitasofReportingPeriod | WeightedaverageROE(%) | EPS | |
| EPS-basic | EPS-diluted | ||
| NetprofitattributabletoordinaryshareholdersoftheCompany | 4.77% | 0.45 | 0.39 |
| NetprofitattributabletoordinaryshareholdersoftheCompanyafterdeductionofnon-recurringprofitorloss | 4.43% | 0.42 | 0.36 |
3.AccountingdatadifferencesunderPRCGAAPandthoseunderIFRSs
(1)DifferencesbetweendisclosednetprofitsandnetassetsinfinancialreportinaccordancewithInternationalAccountingStandardsandChineseAccountingStandards.
□ApplicableNotapplicable?
(2)DifferencesbetweendisclosednetprofitsandnetassetsinfinancialreportinaccordancewithDomesticAccountingStandardsandChineseAccountingStandards.
□ApplicableNotapplicable?
(3)ExplainReasonsfortheDifferencesbetweenAccountingDataunderDomesticandOverseasAccountingStandards;foranyAdjustmentMadetotheDifferenceExistingintheDataAuditedbytheForeignAuditingAgent,SuchForeignAuditingAgent’sNameShallBeClearlyStated
ChairmanoftheBoard:LiuZibinLuThaiTextileCo.,Ltd.26August2022